ANNUAL REPORT 2024
RIMFIRE PACIFIC MINING LIMITED
ABN: 59 006 911 744
/ Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Chairman’s Report
1
Health, Safety, Environment And Community
2
Operations Report
3
Directors’ Report
12
Information on Directors
18
Remuneration Report
22
Directors’ Report (Continued)
26
Auditor’s Independence Declaration
28
Financial Statements
29
Consolidated Statement of Profit and Loss and Other
Comprehensive Income
30
Consolidated Statement of Financial Position
31
Consolidated Statement of Changes in Equity
32
Consolidated Statement of Cash Flows
33
Notes to the Financial Statements
34
Consolidated Entity Disclosure Statement
61
Directors’ Declaration
62
Independent Auditor’s Report
63
Land Tenure - Schedule of Exploration Licences and Mining Licences
67
Resource Inventory
68
Additional Information
69
Corporate Directory
72
Corporate Governance Statement
The Company’s 2024 Corporate Governance Statement has been released to ASX
on 30th September 2024 and is available on the Company’s website www.rimfire.com.au.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders /
/ Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Dear Fellow Shareholders,
Last year in our Annual Report and at our Annual General Meeting we outlined that the Company was focused on
progressing key prospects along the development path as well as generating additional exploration opportunities
across our suite of NSW critical minerals projects. . I am very pleased to report to shareholders that after 12
months of hard work, we have successfully achieved these goals.
In September we released maiden JORC Mineral Resource estimates (MRE) for the Melrose and Murga North
Scandium Prospects as well as a JORC Scandium Exploration Target for the broader Murga area. This is a significant
milestone in the Company’s objective of building a globally significant scandium resource inventory and it gives
us confidence to push ahead with further work on Murga and Murga North for the balance of 2024. Our existing
funds will enable us to undertake aircore and diamond drilling with an objective of upgrading and increasing the
Murga North MRE and converting the Murga Exploration Target to a MRE.
During the year we also doubled the size of our 100% - Broken Hill Cobalt Copper Project and completed a
diamond drill program at the Bald Hill Cobalt Copper Prospect. The drilling intersected multiple broad zones of
sulphide mineralisation and we look forward to receiving the assay results of the drilling in the coming weeks.
Rimfire also notes with interest the recent activity by large mining companies in the Broken Hill district which signal
a renaissance of mining and exploration activities in this world class mineral province.
In September 2024 a Judgement was delivered in the court case involving the dispute over the ownership and
control of Golden Plains Resources (GPR) our Earn In partner at Fifield. The decision resulted in a Change of
Control in GPR and your Directors determined that it was in the best interests of the Company to terminate
the Fifield Earn In Agreement. As a consequence, the Company now has 100% ownership of the Fifield Project
which contains the Murga North MRE and the Murga Exploration Target. The Company has reserved its rights as
to whether it will terminate the Avondale Earn In Agreement which covers the Melrose MRE and a number of
prospective exploration targets such as Kars and Currajong.
The Board has been grateful for the continued support of long standing and more recent shareholders and is
pleased with the recent inflow of $1.2 million from the early exercise of February 2025 2 cent options.
Finally, I would like to express my appreciation for the dedication, expertise and hard work of my fellow directors,
management, contractors and service providers.
Ian McCubbing
Chairman of the Board
Dated: 30th September 2024
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 1
Chairman’s Report
During the 2023 / 2024 Financial Year (the “period”), Rimfire continued to update and implement improvements to its
site-based Health, Safety and Environment Management System.
Health
No major health incidents occurred during the period
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
All drill programs undertaken during the period
recorded no 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 Rimfire
undertakes extensive landowner consultation and
coordination meetings. During drilling programs there
is regular communication with landowners to ensure
company activities have minimal impact on farming
activities.
2 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Health, Safety, Environment and Community
*
On 25 September 2024, Rimfire issued a notice of termination to GPR in respect of the Fifield Project Earn-in Agreement, with the
termination stated to take immediate effect. Rimfire is considering its rights in relation to the Avondale Project Earn-in Agreement in light
of the Judgement and is currently seeking further information from GPR (see RIM ASX Announcement dated 26 September 2024).
On 26 September 2024, the company received a letter from GPR’s lawyers disputing the termination of the Fifield Project Earn-in Agreement.
The Directors believe that the Fifield Earn-in Agreement was validly terminated (see RIM ASX Announcement dated 27 September 2024)
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 2023 / 2024 Financial Year (the
“period”), Rimfire successfully carried out exploration on
its 100% owned projects and project subject to an earn-in
agreement with its exploration partner – Golden Plains
Resources (Figures 1 and 2).
Rimfire’s 100% - owned Broken Hill Cobalt Project is
located immediately west of Broken Hill with a key target
area being Bald Hill where drilling programs have been
undertaken. A number of other key target areas include
Railway Extension which covers the interpreted along
strike extension to Cobalt Blue Holdings’ Railway Cobalt
Deposit (COB:ASX), and Staurolite Ridge where historic
drilling has identified cobalt mineralisation which (at the
start of the reporting period) had not been followed up.
During the period the company expanded the size of the
project with the purchase of the adjacent EL8572 and
EL8599 from Castillo Copper Limited (CCZ:ASX).
.
In the Lachlan Orogen, Rimfire has three 100% - owned
scandium, copper – gold projects:
• The Fifield Project* - located near Fifield and has
the Murga North MRE scandium deposit and Murga
scandium exploration target and the Sorpresa Copper-
Gold MRE,
• 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 one other project in the Lachlan Orogen,
exploration of which is funded by Rimfire’s exploration
partner - Golden Plains Resources (GPR), for which at the
time of writing the Company has reserved Its rights as
to whether It will terminate the earn in which covers the
Melrose MRE
Both Avondale and Fifield Projects have demonstrated
endowment for a range of Critical Metals with a particular
emphasis on scandium – a high value critical metal
essential for future high tech manufacturing and global
decarbonisation of energy.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 3
Operations Report
Broken Hill Cobalt Project
Project Expansion and Bald Hill
diamond drilling
During the period, Rimfire executed a Tenement
Purchase Agreement with BHA No.1 Pty Ltd, a wholly
owned subsidiary of Castillo Copper Limited (ASX: CCZ),
to acquire an unencumbered 100% interest of their
Exploration Licences 8572 and 8599 (“Castillo tenements”)
which lie adjacent to Rimfire’s Bald Hill Cobalt Copper
Prospect, 30 kilometres west of Broken Hill, NSW (Rimfire
ASX Announcement dated 11 January 2024).
The Castillo tenements cover the same sequence of
Proterozoic age deformed and metamorphosed gneiss,
psammite, and amphibolite units that host the Bald Hill
cobalt sulphide mineralisation.
Diamond drilling undertaken by Rimfire at Bald Hill during
the year successfully intersected high-grade cobalt (Co)
associated with strongly disseminated to semi-massive
sulphide (pyrite, pyrrhotite and trace chalcopyrite +
sphalerite) mineralisation (See Rimfire ASX Announcement
dated 18 September 2023), including;
• 125m @ 0.13% Co from 198 metres in FI2470 including
97m @ 0.15% Co,
• 58m @ 0.13% Co from 62 metres in FI2471 including 2m
@ 0.24% Co and 17m @ 0.15% Co,
• 33m @ 0.11% Co from 58 metres in FI2469 including 4m
@ 0.23% Co and 2m @ 0.21% Co, and
• 100m @ 0.08% Co from 71 metres in FI2470 including
68m @ 0.10% Co.
At the time of writing, Rimfire was conducting a new
1,000m diamond drill program to follow up on these
results at Bald Hill.
Bald Hill is one of three priority targets at Broken Hill
alongside Staurolite Ridge and Railway Extension.
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, drilling of which returned 61m
@ 0.18% Co from 94.5 metres in SR1 including 15.25m @
0.29% Co.
There appears to have been no specific follow up of the
SR1 cobalt intersection and is a high priority for further
work by Rimfire. In anticipation of this work a desktop
heritage study has been undertaken over the specific
areas of interest.
The Railway Extension target lies directly 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. Railway Extension has not been drilled.
Fifield – Scandium, Gold-Silver
All exploration activities at the Fifield Project are now
fully funded by the Company after the earn-in was
terminated in September 2024. (See Fifield footnote on
page 3)
Murga Scandium Prospect
Murga lies within the Fifield Earn In Project and is located
70 kilometres northwest of Parkes within the highly
prospective Lachlan Orogen of central New South Wales
(Figure 2).
At Murga, scandium (Sc) occurs within a flat – lying
weathered saprolite (clay) horizon overlying magnetic
ultramafic (pyroxenite) intrusive rocks of the Early
Silurian-age Murga Intrusive Complex, which have been
demonstrated from previous drilling at both Murga
and the adjacent Melrose Prospect to be intimately
associated with scandium mineralisation.
Aircore drilling undertaken by the Company (on 400m
x 400m and 100m x 100m centres) during the period
identified four priority areas - Murga North, Murga
Northwest, Murga East and Murga South with Murga
North being the most advanced in terms of drill
density and geological understanding (Rimfire ASX
Announcement dated 12 June 2024).
Significant aircore drill intercepts from Murga North
include;
• 22m @ 273ppm Sc from 0 metres in FI2475 including
12m @ 353ppm Sc from 5 metres,
• 22m @ 172ppm Sc from 2 metres in FI2480 including
5m @ 226ppm Sc from 6 metres,
4 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Operational Review – 100% owned projects
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 5
• 28m @ 158ppm Sc from 4 metres in FI2482 including
6m @ 320ppm Sc from 5 metres,
• 23m @ 179ppm Sc from 3 metres in FI2487,
• 25m @ 163ppm Sc from 2 metres in FI2490 including
5m@ 242ppm Sc from 4 metres, and
• 27m @ 162ppm Sc from 3 metres in FI2496 including
4m @ 270ppm Sc from 4 metres.
Maiden Scandium Mineral Resources and
Exploration Target
At the end of the period Rimfire announced a maiden
scandium Mineral Resource estimate for the Murga North
prospect, together with an additional Exploration Target
for the broader Murga Intrusive Complex area (excluding
Murga North).
H&S Consultants Pty Ltd (HSC) were engaged by Rimfire
to undertake the work which are reported in accordance
with the 2012 JORC Code and Guidelines using a 100ppm
scandium cutoff grade (Rimfire ASX Announcement
dated 5 September 2024).
Murga Exploration Target
In addition, HSC also defined an Exploration Target for
the broader Murga area (excluding the Murga North
Mineral Resource).
It is based on an outline of the scandium-bearing
pyroxenite throughout the Murga Intrusive Complex
interpreted from aeromagnetic data and results of
Rimfire’s 2024 reconnaissance aircore drilling (on nominal
400m x 400m centres) throughout the Murga area.
An average thickness of 15 metres has been assumed
along with a default density of 2.15t/m3 . However, it
is unknown at this stage if the whole outlined area will
have reasonable prospects for eventual extraction so it
has been assumed that only 50% of the area within the
pyroxenite outline will be classified as the Exploration
Target. The Exploration Target for the broader Murga area
is: 100 to 200Mt at 100 to 200ppm Sc
Cautionary Statement:
The potential quantity and grade of the Exploration
Target is conceptual in nature and there has been
insufficient exploration to estimate a Mineral Resource,
and it is uncertain if further exploration will result in the
estimation of a Mineral Resource.
Significance of the Mineral Resources and
Exploration Target
At Murga North, scandium (+/- nickel and cobalt) occurs
within a flat – lying weathered saprolite (clay) horizon
overlying a sequence of Ordovician mafic / ultramafic
intrusive rocks (Alaskan style) comprising dunite, wehrlite,
pyroxenite and gabbro.
Historically the majority of exploration work throughout
the area has focused on gold and platinum.
Since embarking upon a scandium-focused exploration
strategy in late 2022, Rimfire along with has been steadily
developing a pipeline of scandium prospects, (e.g.; Murga
and Forrest View) with the strategic objective of building
a globally significant scandium resource inventory.
The maiden Mineral Resources Murga North represent
the first step in pursuit of that objective, with subsequent
conversion of the Murga Exploration Target into Mineral
Resources and advancing additional nearby scandium
exploration targets as further steps.
The Murga North Mineral Resource remains open to the
west and south.
The area contained within the Murga Exploration Target
was aircore drilled by Rimfire on 400m x 400m hole
Murga North Scandium Deposit Mineral Resource Estimate (100ppm Sc cut-off grade).
Category
Mt
Sc ppm
Sc2O3 ppm
Sc Tonnes
Sc2O3 Tonnes
Inferred
21.0
125
190
2,650
4,050
Total
21.0
125
190
2,650
4,050
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
6 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Operational Review – 100% Owned Projects
spacings. This drilling successfully intersected strong
scandium anomalism at multiple locations within the
boundaries of the Murga Exploration Target (Rimfire
ASX Announcement dated 6 May 2024 for drillhole
specifications and Exploration Results’ details), i.e.;
• 13m @ 188ppm Sc from 3 metres in FI2514
including 4m @ 248ppm Sc from 7 metres,
• 6m @ 111ppm Sc from 6 metres in FI2513,
• 21m @ 106ppm Sc from 3 metres in FI2547,
• 3m @ 127ppm Sc from 13 metres in FI2549,
• 6m @ 106ppm Sc from 9 metres, and
• 6m @ 108ppm Sc from 24 metres in FI2549.
• 18m @ 174ppm Sc from 1 metre in FI2561 including
3m @ 226ppm Sc from 7 metres,
• 27m @ 188ppm Sc from 0 metres in FI2434
including 12m @ 224ppm Sc from 3 metres
To better understand their significance and to potentially
convert the Murga Exploration Target to a Mineral
Resource, further aircore drilling on 100m x 100m hole
spacings, and diamond drilling is planned.
HSC’s resource estimate work has recommended that
aircore drill hole spacings of 100m x 100m or less should
be used to better define internal grade zones and
mineralisation thickness variation.
Diamond drilling is also recommended to “twin” selected
aircore holes (to confirm aircore assay grades), enhance
the density database, obtain bulk samples of laterite
mineralisation for metallurgical test work and to better
understand the geology and scandium mineralisation
potential of the underlying fresh basement.
Valley Copper Prospect
Induced Polarisation [IP] geophysical surveying over a 2
kilometre – long copper gossan zone conducted during
the period has identified targets potentially indicative
of shallow copper mineralisation beneath the surface
gossans. This is encouraging given that previous Rimfire
drilling at the Valley has demonstrated the presence of
similar rock types to the host rocks of the Northparkes
Copper Gold Mine which is located 34 kilometres east
of the Valley.
Northparkes has total Measured and Indicated
Resources (as at 31 December 2019) of 356Mt @ 0.55%
copper, 0.20g.t gold (1.96Mt copper and 2.33Moz gold –
refer to Northparkes website).
Evolution Mining (ASX: EVN) recently purchased an 80%
interest in the mine for up to US$475M (see Evolution
Mining’s ASX Announcement dated 5 December 2023).
Cowal Copper Gold Project
During the period the Company expanded the Cowal
project footprint with the purchase of the Porters Mount
exploration licence from Plutonic Ltd.
The Company has completed its technical review of
available data for the Cowal Project and has identified
a number of new targets for testing. Given the size of
the Company’s project portfolio and current priorities
Rimfire is considering various strategic options to
generate value from the Cowal project which may include
the introduction of an exploration partner, outright
divestment, or the Company undertaking drilling on
defined key shallow targets (in first instance) during the
2024 – 2025 Financial Year.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 7
Murga North Scandium Deposit Mineral Resource Estimate (100ppm Sc cut-off grade).
Category
Mt
Sc ppm
Sc2O3 ppm
Sc Tonnes
Sc2O3 Tonnes
Inferred
21.0
125
190
2,650
4,050
Total
21.0
125
190
2,650
4,050
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
Avondale Project – Scandium (GPR
earning up to 75%)
At the time of writing, Rimfire is still considering its
rights in relation to the Avondale Project in light of the
Judgement and seeking further information from GPR.
Until this time all exploration activities at Avondale are
funded by Rimfire’s exploration partner - Golden Plains
Resources (GPR), the ownership of which is currently
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. Melrose Scandium Prospect lies within
the Avondale Earn In Project and is located 70 kilometres
northwest of Parkes within the highly prospective Lachlan
Orogen of central New South Wales (Figure 2).
Scandium nickel and cobalt (Sc Ni Co) mineralisation
at Melrose is present within a near surface flat – lying
manganese and iron rich laterite horizon that overlies an
east-dipping sequence of ultramafic and mafic intrusive
rocks (microdiorite, gabbro, pyroxenite, wehrlite, dunite)
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.
Previous drilling 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.
The laterite – hosted mineralisation is present within a
north northeast - south southwest trending zone that has
been drilled over 900 metres strike length with widths
ranging from 400 metres in the core of the magnetic
complex to 50 metres in the northeast (as defined by
a 100ppm Sc lower cut-off grade). Thickness ranges up
to 16 metres in the core of the magnetic complex with
mineralisation remaining open to the west.
Significantly, the thickest zones and highest-grade
mineralisation are present over the serpentinised
ultramafic intrusive rock types, with the highest scandium
grades spatially associated over the pyroxenite.
Maiden Scandium Mineral Resource
At the end of the period Rimfire announced a maiden
scandium Mineral Resource estimate for the Melrose
prospect.
H&S Consultants Pty Ltd (HSC) were engaged by Rimfire
to undertake the work which are reported in accordance
with the 2012 JORC Code and Guidelines using a 100ppm
scandium cutoff grade (Rimfire ASX Announcement
dated 5 September 2024).
Tenement Position
There has also been ongoing routine submittal of various
compliance reports including Annual Technical Reports
(under IMER standards) to NSW Department of Planning,
Industry and Environment – Resources and Geoscience
to meet government compliance requirements for
Rimfire’s Exploration Licences and M(c)L. The Company
continues to maintain its tenements in the Lachlan
Oregon area of central NSW and in Broken Hill, covering
an area of circa 1,424k.
8 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Operational Review – Earn In project
Competent Persons Declaration – Exploration Results
The information in this report that relates to Exploration 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 (FAusIMM).
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.
Competent Persons Declaration – Mineral resources – Melrose and Murga North, Exploration Target – Murga
The data in this report that relates to Mineral Resource estimates and the Exploration Target is based on information evaluated
by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking 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 (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents
to the inclusion in the report of the Mineral Resource in the form and context in which they appear.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 9
Figure 1: Lachlan Orogen Tenements UPDATE
10 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Figure 2: Broken Hill Tenements
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 11
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 Scandium, Cobalt, Nickel, 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
2024 was $0.2m. An additional $0.1m was held
collectively in the Fifield and Avondale Project
Accounts at 30 June 2024. this amount excludes post
balance day events as detailed on page 16 (i.e.
Pacement and Exercise of Options).
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 2024.
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
(Managing Director and Chief Executive Officer),
Andrew Knox
(Non-Executive Director),
Greg Keane
(Alternate Director to Ian McCubbing, appointed 17 August 2022).
12 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Directors’ Report
Shareholder Meetings
One shareholder meeting was held during the financial
year, which was the Annual General Meeting held on
the 20th of November, 2023. Included in this meeting
were a number resolutions relating to a 249D notice
received from Anton Billis and his associates, to consider
a shareholder notice to remove Mr David Hutton, and Mr
Andrew Knox as Directors of the Rimfire and to appoint
Mr Oliver Douglas, and Mr Roland Berzins as Directors of
the Board of Rimfire.
Over 45% of the Company’s total issued capital cast votes
in the meeting, with ~85% 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 Oliver Douglas and Mr
Roland Berzins).
Resolution Details
Show
of
Hands
or Poll
Number of votes cast on the poll
(where applicable)
Res.
Results
Resolution
Res. Type
If s250U
applies
S or P
For
Against
Abstain*
Carried/
Not Carried
1.
Adoption of Remuneration
Report
Ordinary
N/A
P
908,041,127
96.78%
30,232,094
3.22%
526,605
Carried
2A
Re-election of Mr. Ian McCubbing
as a Director of the Company
Ordinary
N/A
P
1,002,039,621
99.80%
2,057,570
0.20%
1,053,929
Carried
2B
Election of Mr. Oliver Douglas
as a Director of the Company
Ordinary
N/A
P
146,769,206
14.96%
834,271,224
85.04%
24,110,690
Not Carried
2C
Election of Mr. Roland Berzins
as a Director of the Company
Ordinary
N/A
P
146,429,671
14.93%
834,610,759
85.07%
24,110,690
Not Carried
2D
Removal of Mr. David Hutton
as a Director of the Company
Ordinary
N/A
P
161,775,082
16.16%
839,513,227
83.84%
3,862,811
Not Carried
2E
Removal of Mr. Andrew Knox
as a Director of the Company
Ordinary
N/A
P
147,076,994
14.91%
839,313,209
85.09%
18,760,91
Not Carried
3
Ratification of prior issue of
shares under Placement
Ordinary
N/A
P
503,715,404
97.46%
13,147,242
2.54%
170,577,65
Carried
4
Ratification of prior issue of free
attaching unlisted options under
Placement
Ordinary
N/A
P
496,137,345
93.05%
37,050,852
6.95%
154,252,104
Carried
5
Renewal of approval under Equity
Incentive Plan
Ordinary
N/A
P
727,818,364
95.87%
31,369,585
4.13%
242,807,50
Carried
6
Approval of 10% additional
placement capacity
Special
N/A
P
967,542,626
96.37%
36,412,353
3.63%
1,196,141
Carried
Capital Structure
As at 30 June 2024 the capital structure of the Company
was;
• 2,248,601,078 Ordinary Shares on Issue (RIM)
• 239,933,330 Unlisted options ordinary shares (Options),
various prices and vesting dates
Operating Results
The loss of the Consolidated entity amounted to
$1,460,320 in the period (2023: $814,333), which also
included an impairment of a the carrying value
($178k) of an exploration licence that the Board has
determined is unlikely to be recovered in the future
Dividends
No dividends were paid during the financial year, nor
are any recommended at 30 June 2024 (30 June 2023:
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 13
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 $187,666
and net assets of $17,221,535. 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.
Earn-in and Joint Venture 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.
On 25 September 2024, Rimfire issued a notice of
termination to GPR in respect of the Fifield Project
Earn-in Agreement, with the termination stated to take
immediate effect. Rimfire is considering its rights in
relation to the Avondale Project Earn-in Agreement in
light of the Judgement and is currently seeking further
information from GPR (see RIM ASX Announcement
dated 26 September 2024).
On 26 September 2024, the company received a letter
from GPR’s lawyers disputing the termination of the
Fifield Project Earn-in Agreement. The Directors believe
that the Fifield Earn-in Agreement was validly terminated
(see RIM ASX Announcement dated 27 September 2024)
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
14 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Directors’ Report
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:
• 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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 15
Melrose Scandium Deposit Mineral Resource Estimate (100ppm Sc cut-off grade)
Category
Mt
Sc ppm
Sc2O3
ppm
Co ppm
Ni ppm
Sc
Tonnes
Sc2O3
Tonnes
Co
Tonnes
Ni
Nickel
Indicated
2.9
250
380
570
2,000
730
1,100
1,700
5,900
Inferred
0.1
200
310
430
1,300
16
20
30
100
Total
3.0
240
380
570
2,000
740
1,120
1,730
6,000
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
After Balance Date Events
In July 2024, Rimfire was awarded exploration credits of
$750,000 under the Federal Government’s Junior Minerals
Exploration Incentive (JMEI) program for distribution
during the 2024 / 2025 Financial Year to eligible
shareholders.
During July 2024 Rimfire raised $1.15 million through a share
placement pursuant to Section 708 of the Corporations
Act (Cth). The placement comprised the issue of a total
of 45,800,000 fully paid ordinary shares at an issue price
of $0.025 (2.5 cents) per share. The issue price of the
placement represented a 10.7% discount to the closing
share price on 28 June 2024 and a 150% premium to the
issue price of the Company’s last placement (see Rimfire’s
ASX Announcement dated 14 December 2023).
In addition, 15,266,665 free attaching unlisted options
were issued on a one (1) for three (3) basis, being one (1)
free attaching unlisted option for every three (3) new
shares subscribed for and issued under the placement
with an exercise price of $0.05 (5 cents) each, and an
expiry date of 31 December 2025. The 45,800,000
placement shares were issued under Rimfire’s existing ASX
Listing Rule 7.1A placement capacity and the 15,266,665
unlisted options were issued under Rimfire’s existing ASX
Listing Rule 7.1 placement capacity.
As reported in the Operations Section of this report, on
5 September 2024, Rimfire announced maiden Mineral
Resource estimates for 100% owned Murga North
scandium prospect deposit and an exploration target
for the greater Murga area (excluding Murga North):
H&S Consultants Pty Ltd also defined an Exploration
Target for the broader Murga area (excluding the Murga
North Mineral Resource), based on an outline of the
scandium-bearing pyroxenite throughout the Murga
Intrusive Complex interpreted from aeromagnetic data
and results of Rimfire’s 2024 reconnaissance aircore
drilling (on nominal 400m x 400m centres) throughout
the Murga area.
An average thickness of 15 metres has been assumed
along with a default density of 2.15t/m3 . However, it
is unknown at this stage if the whole outlined area will
have reasonable prospects for eventual extraction so it
has been assumed that only 50% of the area within the
pyroxenite outline will be classified as the Exploration
Target. The Exploration Target for the broader Murga
area is: 100 to 200Mt at 100 to 200ppm Sc.
Cautionary Statement: The potential quantity and
grade of the Exploration Target is conceptual in
nature and there has been insufficient exploration
to estimate a Mineral Resource, and it is uncertain if
further exploration will result in the estimation of a
Mineral Resource.
On September 5 2024, Rimfire also announced a
maiden Mineral Resource estimate for Melrose which
is subject to the Avondale Project Earn-in with GPR
earning up to 75%;
Murga North Scandium Deposit Mineral Resource Estimate
(100ppm Sc cut-off grade) – 100% RIM owned.
Category
Mt
Sc ppm
Sc2O3 ppm
Sc Tonnes
Sc2O3 Tonnes
Inferred
21.0
125
190
2,650
4,050
Total
21.0
125
190
2,650
4,050
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
16 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Directors’ Report
Rimfire announced on 25 September 2024, that it
had received binding commitments from option
holders for the exercise of a total of 60,166,665 $0.02
exercise price unlisted options (expiring 28-Feb-2025
with an exercise price of $0.02) (2cent Options) to
raise $1.2 million. Rimfire intends to issue a “cleansing
prospectus” to facilitate the on-sale of the shares to
be issued upon exercise of the 2cent Options post
Annual Report signing (see RIM ASX Announcement
dated 26 September 2024).
On 25 September 2024, Rimfire issued a notice of
termination to GPR in respect of the Fifield Project
Earn-in Agreement, with the termination stated to take
immediate effect. Rimfire is considering its rights in
relation to the Avondale Project Earn-in Agreement in
light of the Judgement and is currently seeking further
information from GPR (see RIM ASX Announcement
dated 26 September 2024).
On 26 September 2024, the company received a letter
from GPR’s lawyers disputing the termination of
the Fifield Project Earn-in Agreement. The Directors
believe that the Fifield Earn-in Agreement was validly
terminated (see RIM ASX Announcement dated 27
September 2024).
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 17
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.
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.
Shareholding: 3,155,666 ordinary shares and
30,000,000 unlisted Options subject to vesting
conditions.
18 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Information on Directors
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 Ltd (CEO and Managing Director
since July 2018).
Shareholding: 21,222,915 ordinary shares and
10,000,000 unlisted Options subject to vesting
conditions.
Greg Keane
CFO / Alternate Director to Ian McCubbing
Bachelor of Business Accounting, MBA, Postgraduate –
Corporate Governance, CPA, CSA
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 20 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
15,000,000 unlisted Options subject to vesting
conditions.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 19
Stefan Ross
Company Secretary (Appointed 2 July 2021)
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.
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
18
18
3
3
1
1
David Hutton
18
18
-
-
-
-
Andrew Knox
18
18
3
3
1
1
Greg Keane*
18
18
-
-
-
-
Note: Mr Greg Keane attends in his capacity as CFO, and not in his capacity as an Alternate Director.
20 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Information on Directors
Meetings of Directors
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 21
22 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
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:
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 2024
3. Employment contracts
4. Share based compensation of Directors and
Key Management Personnel
5. Additional Disclosures relating to Key
Management Personnel
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 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 Remuneration 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. The Company’s
Equity Incentive Plan was renewed by shareholders
at the Company’s 20 November 2023 AGM.
There has been a change to the cash remuneration
of Non-Executive Directors during the financial
year, which took effect from 1 April 2024, with an
increase in Non-Executive Director fees to $60,000
per annum plus Statutory Superannuation and an
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 23
increase in Chairman fees to $90,000 per annum plus
Statutory Superannuation to bring renumeration
into line with similar sized companies. Withheld
salary payments from Senior Management and
Non-Executive Directors whilst on reduced salaries
when the Company was undertaking cost reduction
activity, have also been paid during the period.
The remuneration policy is reviewed periodically and
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. At the 2023 AGM the
Company received 96.78% of ‘for’ votes in relation to
its remuneration report for the year ended 30 June
2023. No feedback was received from shareholders in
relation to its remuneration practices at the 2023 AGM.
2. Details of Remuneration for the Year Ended
30 June 2024
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 2024
was $163,447 (2023: $136,822).
Performance Income as a Proportion of Total
Remuneration
Bonus of $30,000 was paid to the Managing Director
during the year ended 30 June 2024 (2023: nil).
* Note:
- 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
- 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.
Key Management
Personnel
Primary
Total Direct
Employee
Cash
Benefit
Post Employment
Equity
Total
Salary
and Fees
Accrued
Salary*
Bonus -
STI
Annual
Leave/Sick
Leave
Termination
Super
Long Service
Leave
Accruals**
Options
Non-Executive Directors
I McCubbing
FY24
67,550
5,182
-
-
-
72,732
7,431
-
20,971
101,133
FY23
49,918
5,000
-
-
-
54,918
5,241
-
56,933
117,092
A Knox
FY24
33,333
15,000
-
-
-
48,333
-
-
13,981
62,314
FY23
36,667
3,333
-
-
-
40,000
-
-
37,956
77,955
M Collins*
FY24
-
-
-
-
-
-
-
-
-
-
FY23
36,663
-
-
-
-
36,663
-
-
-
36,663
Executive Directors
and KMP
D Hutton*
FY24
184,407
-
30,000
33,762
-
248,169
23,679
3,857
29,983
305,689
FY23
173,073
-
-
17,950
-
191,024
20,293
728
135,017
347,062
G Keane*
FY24
169,455
-
13,514
30,242
-
213,211
21,309
11,623
-
246,143
FY23
144,281
-
-
14,559
-
158,840
17,201
6,136
13,714
195,891
Total
FY24
454,746
20,182
43,514
64,005
-
582,446
52,418
15,481
64,934
715,279
Total
FY23
440,601
8,333
-
32,510
-
481,444
42,735
6,864
243,620
774,663
Table 1: Remuneration Details
The following table details, in respect to the financial years ended 30 June 2024 and 2023, the
components of remuneration for key management personnel of the Consolidated entity.
24 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Transactions Between Related Parties
Transactions between related parties are on normal
commercial terms and conditions no more favourable
than those available to other parties unless stated. In
the current period, the Company incurred an expense of
$5,476(2023: $5,280) 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 $212,000 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 (80% full
time equivalent). 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.
4. Share Based Compensation of Directors
& Key Management Personnel
No options were granted to Directors or Key
Management Personnel during the year ended 30 June
2024 (2023: 55,000,000) as per Table 3 below.
5. Additional Disclosures Relating to Key
Management Personnel
None.
6. Shareholding
Details provided in Tables 2 and 3.
Remuneration Report (Audited)
Table 2: Shareholding Details
The following table details, in respect to the financial years ended 30 June 2024 and 2023, the
shareholdings for key management personnel of the Group.
Key Management Personnel
Beginning
Balance
Received as
Remuneration
Shares
Acquired
Shares
Sold
Net Change
Other*
Closing
Balance
Non- Executive Directors
I McCubbing
FY24
34,666,669
-
-
-
-
34,666,669
FY23
14,209,849
-
20,456,820
-
-
34,666,669
A Knox
FY24
21,222,915
-
-
-
-
21,222,915
FY23
12,889,582
-
8,333,333
-
-
21,222,915
M Collins*
FY24
-
-
-
-
-
-
FY23
4,600,000
-
-
(3,600,000)
(1,000,000)
-
Executive Directors and KMPs
D Hutton
FY24
3,155,666
-
-
-
-
3,155,666
FY23
-
-
3,155,666
-
-
3,155,666
G Keane*
FY24
7,306,044
-
-
-
-
7,306,044
FY23
-
-
1,666,666
-
5,639,378
7,306,044
Total FY24
66,351,294
-
-
-
-
66,351,294
Total FY23
31,699,431
-
33,612,485
(3,600,000)
4,639,378
66,351,294
*
Notes regarding “Net Change Other”:
- 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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 25
Table 3: Option Details
The following table details, in respect to the financial years ended 30 June 2024 and 2023,
the Options held for each key management person of the Group.
Key Management Personnel
Beginning
Balance
Options
Acquired*
Options
Exercised
Options
Lapsed
Net Change
Other*
Closing
Balance
Non- Executive Directors
I McCubbing
FY24
15,000,000
-
-
-
-
15,000,000
FY23
-
15,000,000
-
-
-
15,000,000
A Knox
FY24
10,000,000
-
-
-
-
10,000,000
FY23
-
10,000,000
-
-
-
10,000,000
M Collins*
FY24
-
-
-
-
-
-
FY23
-
-
-
-
-
Executive Directors
D Hutton
FY24
30,000,000
-
-
-
-
30,000,000
FY23
-
30,000,000
-
-
-
30,000,000
G Keane
FY24
20,000,000
-
-
(5,000,000)
-
15,000,000
FY23
-
-
-
-
20,000,000
20,000,000
Total FY24
75,000,000
-
-
(5,000,000)
-
70,000,000
Total FY23
-
55,000,000
-
-
20,000,000
75,000,000
*
Note:
- Non Executive Director / Managing Director and CEO Options granted during the prior 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.
Executives
There were no executives other than Mr David Hutton and Mr Greg Keane at balance date.
7. Five Year Summary of Key Financial Data
The earnings of the company for the five years to 30 June 2024 are summarised below:
2024
$
2023
$
2022
$
2021
$
2020
$
Revenue and Other Income
10,962
838,695
304,988
650,456
52,846
Net Profit / (Loss) before tax
(1,460,320)
(814,533)
(912,954)
(373,704)
(956,975)
Net Profit / (Loss) after tax
(1,460,320)
(814,533)
(912,954)
(373,704)
(956,975)
Share Price beginning financial year ($)
0.005
0.008
0.009
0.007
0.003
Share price end financial year ($)
0.028
0.005
0.008
0.009
0.007
Basic loss per share (cents per share)
(0.068)
(0.044)
(0.050)
(0.020)
(0.070)
End of audited remuneration report.
26 / Rimfire Pacific Mining Limited 2043 Annual Report to Shareholders
Unissued shares under option
During the Financial Period 13,700,000 Employee Options were exercised for 9,539,149 Shares.
Unissued ordinary shares of Rimfire Pacific Mining Limited under option at the date of this report
are as follows:
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 9 March 2026)
35,000,000
Employee Options, service based vesting conditions
(exercisable at 1.25 cents by 29 April 2026)
6,600,000
Employee Options, service based vesting conditions
(exercisable at 1.54 cents by 15 June 2026)
30,000,000
Employee Options, service based vesting conditions
(exercisable at 1.52 cents by 30 August 2026)
25,000,000
Unlisted Options, exercisable at 2.0 cents by
28 February 2025
142,499,997
Unlisted Options, exercisable at 5.0 cents by
31 December 2025
15,266,665
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.
Directors’ Report (continued)
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 27
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 no non-audit services
during the financial year.
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
30th day of September 2024
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the financial report of Rimfire Pacific Mining Limited for the year ended 30 June
2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Melbourne, Victoria
Dated: 30 September 2024
28 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Consolidated Statement of Profit or Loss and Other Comprehensive Income
30
Consolidated Statement of Financial Position
31
Consolidated Statement of Changes in Equity
32
Consolidated Statement of Cash Flows
33
NOTES TO THE FINANCIAL STATEMENTS
1
General Information
34
2
Significant accounting policies
34
3.
Critical accounting judgements, estimates and assumptions
43
4.
Other Income
44
5.
Loss for the Financial Year
44
6.
Income Tax Expense
45
7.
Auditor’s Remuneration
45
8.
Earnings per Share
46
9.
Cash and Cash Equivalents
46
10.
Trade and Other Receivables
47
11.
Financial Asset
47
12.
Property, Plant and Equipment
48
13
Exploration & Evaluation Assets
50
14.
Trade and Other Payables
50
15.
Contract Liability
50
16.
Employee Benefits
50
17
Issued Capital
5 1
18.
Controlled Subsidiaries
53
19
Parent Entity Information
53
20 Capital and Leasing Commitments
54
21
Contingent Liabilities and Contingent Assets
54
22 Segment Reporting
54
23 Key Management Personnel Disclosures
55
24 Related Party Details
56
25 Cash Flow Information
56
26 Financial Risk Management
57
27 Events Occurring after the Reporting Period
59
28 Company Details
60
Consolidated Entity Disclosure Statement
61
Consolidated Entity Disclosure Statement
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 29
Financial Statements
Financial Statements
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2024
Consolidated Entity
Note
30 Jun 2024
30 Jun 2023
$
$
Other income
4
10,962
838,695
Expenses:
Employee benefits expense
(507,423)
(422,053)
Non-executive directors’ fees
(117,299)
(136,822)
Professional costs
(205,342)
(260,753)
Occupancy costs
(29,935)
(30,943)
Marketing expense
(70,190)
(57,046)
Depreciation
(20,016)
(29,527)
Insurance
(50,880)
(51,027)
Share-based payment expense
(12,626)
(333,271)
Share registry and listing expenses
(91,054)
(132,668)
Other administration expenses
(188,289)
(198,918)
Impairment of exploration expenditure
13
(178,228)
-
Loss before income tax
5
(1,460,320)
(814,333)
Income tax benefit
6
-
-
Loss after income tax
(1,460,320)
(814,333)
Other comprehensive income
-
-
Total comprehensive loss for the year
(1,460,320)
(814,333)
Loss per share for the year attributable to the members of Rimfire Pacific Mining Limited
Basic loss per share (cents per share)
8
(0.07)
(0.04)
Diluted loss per share (cents per share)
8
(0.07)
(0.04)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes
30 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Consolidated Statement of Financial Position as at 30 June 2024
Consolidated Entity
Note
30 Jun 2024
30 Jun 2023
$
$
CURRENT ASSETS
Cash and cash equivalents
9
187,666
377,231
Trade and other receivables
10
93,387
72,741
Financial asset
11
102,720
77,275
Other current assets
1,737
12,920
TOTAL CURRENT ASSETS
385,510
540,167
NON-CURRENT ASSETS
Trade and other receivables - non current
10
185,000
155,000
Property, plant and equipment
12
299,071
314,761
Exploration and evaluation costs
13
16,789,935
15,949,760
TOTAL NON-CURRENT ASSETS
17,274,006
16,419,521
TOTAL ASSETS
17,659,516
16,959,688
CURRENT LIABILITIES
Trade and other payables
14
186,504
500,864
Employee benefits
16
118,221
57,053
Contract liability
15
118,405
41,550
TOTAL CURRENT LIABILITIES
423,130
599,467
NON-CURRENT LIABILITIES
Employee benefits (N/C)
16
14,851
19,787
TOTAL NON-CURRENT LIABILITIES
14,851
19,787
TOTAL LIABILITIES
437,981
619,254
NET ASSETS
17,221,535
16,340,434
EQUITY
Issued Capital
17
38,623,680
36,294,888
Reserves
17
438,190
425,564
Accumulated losses
(21,840,335)
(20,380,018)
TOTAL EQUITY
17,221,535
16,340,434
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 31
Financial Statements
Consolidated Statement of Changes in Equity for The Year Ended 30 June 2024
Contributed
equity
Reserves
Accumulated
losses
Total
Consolidated Entity
$
$
$
$
Balance at 1 July 2023
36,294,888
425,564
(20,380,018)
16,340,434
Loss after income tax expense for the year
-
-
(1,460,320)
(1,460,320)
Other comprehensive income for the year,
net of tax
-
-
-
-
Total comprehensive income for the year
36,294,888
425,564
(21,840,338)
14,880,114
Transaction with owners in their capacity as owners:
Shares issued during the year
2,365,002
-
-
2,365,002
Share-based payment
-
12,626
-
12,626
Transaction costs related to share issues
(36,207)
-
-
(36,207)
Balance at 30 June 2024
38,623,683
438,190
(21,840,338)
17,221,535
Balance at 1 July 2022
35,156,698
84,243
(19,565,685)
15,675,256
Loss after income tax expense for the year
-
-
(814,333)
(814,333)
Other comprehensive income for the year,
net of tax
-
-
-
-
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
1,194,000
-
-
1,194,000
Share-based payment
-
341,321
-
341,321
Transaction costs related to share issues
(55,810)
-
-
(55,810)
Balance at 30 June 2023
36,294,888
425,564
(20,380,018)
16,340,434
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes
32 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Consolidated Entity
Note
30 Jun 2024
30 Jun 2023
$
$
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(1,236,364)
(1,164,490)
Receipts from administration fee charged to GPR Earn-in
-
919,070
Interest received
7,552
3,176
Government grants and tax incentives
-
88,850
Net cash used in operating activities
25
(1,228,812)
(153,394)
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for mining tenement exploration
(1,997,959)
(2,860,991)
Proceeds from reimbursement of GPR Earn-in exploration expenditure 13
1,116,140
1,975,614
Purchase of property, plant and equipment
(7,727)
(1,749)
Net cash used in investing activities
(889,546)
(881,126)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
17
1,965,000
1,194,000
Transaction costs associated with share issues
(36,207)
(47,760)
Net cash provided byfinancing activities
1,928,793
1,146,240
Net (Decrease) / Increase in cash held
(189,565)
105,720
Cash and cash equivalents at beginning of the year
377,231
271,511
Cash and cash equivalents at end of the year
187,666
377,231
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 33
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 60.
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 2024.
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
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.
34 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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 $1,460,320 and had net
cash outflows from operating activities of $1,228,812 for the year ended 30 June 2024. As at that date, the
Consolidated entity’s current liabilities exceeded its current assets by $37,620.
Notwithstanding the above mentioned matters, the Directors, after reviewing the Consolidated entity’s
cash flow forecast for a period of at least 12 months from the date of approval of these financial
statements, have concluded that is reasonably foreseeable that it will continue as a going concern, and
that it is appropriate to adopt the going concern basis in the preparation of the financial report. The
Directors’ assessment considered the following factors:
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 35
Notes to the Financial Statements
• As mentioned in Note 27 to the financial statements, in July 2024 the Company raised $1.15m (before costs)
to accelerate the Consolidated entity’s 100% owned projects and provide for general working capital;
• The Company has received firm commitments from existing shareholders to exercise 60,166,665 unlisted
share options at an exercise price of $0.02 each (refer to Note 17) to raise $1.2m by no later than Monday, 7
October 2024. As at the date of this report, $403,333 has already been received in respect of the exercise
of these options;
• 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 the most recent share placement of $1.15m
completed in July 2024, refer to Note 27); and
• The Consolidated entity has the ability to defer or reduce certain operating expenses and exploration
expenditure, if necessary, whilst continuing to meet minimum tenement expenditure commitments.
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
• 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.
36 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 37
Notes to the Financial Statements
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
15%
Plant and equipment
7.5% - 30%
Office furniture
10% - 40%
Motor Vehicles
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.
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.
38 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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 ($261,900). 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,
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 39
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
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the financial year.
Notes to the Financial Statements
40 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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.
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
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 41
Notes to the Financial Statements
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
is expected to result from default events on a financial instrument that are possible within 12 months after
the reporting date.
42 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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 2024. 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 18c 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
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 43
Notes to the Financial Statements
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 1, 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.
Note 4.
Other Income
Consolidated Entity
2024
$
2023
$
OTHER INCOME
Waiver fee
-
781,819
Extension fee
-
50,000
Interest
7,552
3,176
Sundry Income
3,410
3,700
TOTAL OTHER INCOME
10,962
838,695
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:
Consolidated Entity
2024
$
2023
$
EXPENSES
Superannuation
50,173
45,339
Marketing expense
70,190
57,046
Non-executive directors' fees
117,299
136,822
Legal and Professional Services costs
88,079
211,665
Depreciation
20,016
29,527
44 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Note 6.
Income Tax Expense
The prima facie tax expense /(benefit) on loss before tax is
reconciled to the income tax as follows:
Consolidated Entity
2024
$
2023
$
Loss for the year
Loss before income tax expense
(1,460,320)
(814,333)
Prima facie tax/(benefit) on loss before tax at 25% (2023: 25%)
365,080
203,583
Add: Tax effect of:
- shared based payment expense
(3,157)
(83,318)
- impairment of exploration expenditure
(44,557)
-
(174,226)
-
(129,688)
-
The deferred tax asset arising from tax losses has not been
recognised as an asset because recovery is not probable:
Tax losses carried forward
7,655,146
6,520,474
Temporary differences – exploration costs
(4,197,484)
(3,987,440)
Temporary differences – other
84,931
169,458
Net Deferred tax asset not recognised
3,542,593
2,702,492
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:
Consolidated Entity
2024
$
2023
$
- auditing or reviewing the financial reports
63,000
73,272
- other services
-
3,500
63,000
76,772
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 45
- deferred tax assets not recognised
Income Tax Expense / (Benefit)
Note 8. Earnings per Share
Reconciliation of Earnings to Loss
Consolidated Entity
2024
$
2023
$
Loss used in the calculation of basic EPS
(1,460,320)
(814,333)
Loss used in the calculation of dilutive EPS
(1,460,320)
(814,333)
Weighted average number of ordinary shares outstanding
during the year used in calculation of basic EPS
2,162,240,599
1,865,703,525
Potential ordinary shares
-
-
Weighted average number of ordinary shares outstanding
during the year used in calculation of dilutive EPS
2,162,240,599
1,865,703,525
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)
(0.07)
(0.04)
Diluted loss per share (cents per share)
(0.07)
(0.04)
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
Consolidated Entity
2024
$
2023
$
Cash at bank and on hand
187,666
377,231
Short term deposits
-
-
187,666
377,231
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
187,666
377,231
Term deposits with maturity of 3 months or less
-
-
187,666
377,231
Refer to note 26 for risk exposure for cash and cash equivalents.
Notes to the Financial Statements
46 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Note 10. Trade and Other Receivables
OTHER RECEIVABLES
Consolidated Entity
2024
$
2023
$
CURRENT
Security deposits & other current assets
93,160
72,514
Other receivables
227
227
93,387
72,741
NON-CURRENT
Security deposits
185,000
155,000
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 $261,900 (2023: $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
Consolidated Entity
2024
$
2023
$
Fifield Earn-In Account
2,496
69,203
Avondale Earn-In Account
100,224
8,072
102,720
77,275
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 47
Note 12. Property, Plant and Equipment
Consolidated Entity
2024
$
2023
$
LAND
Freehold land
At cost
226,834
226,834
TOTAL LAND
226,834
226,834
PLANT AND EQUIPMENT
Plant and equipment
At cost
223,444
375,958
Accumulated depreciation
(186,233)
(309,617)
37,211
66,341
Motor vehicle
At cost
57,966
37,182
Accumulated depreciation
(22,940)
(15,596)
35,026
21,586
Office furniture
At cost
66,157
66,157
Accumulated depreciation
(66,157)
(66,157)
-
-
Leasehold improvements
At cost
420
420
Accumulated depreciation
(420)
(420)
-
-
TOTAL PLANT AND EQUIPMENT
72,237
87,927
Right of Use Asset
At cost
-
-
Accumulated depreciation
-
-
TOTAL PROPERTY, PLANT AND EQUIPMENT
299,071
314,761
Notes to the Financial Statements
48 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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.
2024
Freehold
Land
Motor
Vehicles
Plant and
Equipment
Office
Furniture
Right of
use asset
Leasehold
Improvements
TOTAL
Consolidated Entity:
$
$
$
$
$
$
$
Balance at the
beginning of year
226,834
21,586
66,341
-
-
-
314,761
Additions
-
20,784
70
-
-
-
20,854
Disposals
-
-
(16,458)
-
-
-
(16,458)
Depreciation
expense
-
(7,344)
(12,742)
-
-
-
(20,086)
Depreciation
capitalised
-
-
-
-
-
-
-
Carrying amount at
the end of year
226,834
35,026
37,211
-
-
-
299,071
2023
Consolidated Entity:
Balance at the
beginning of year
226,834
49,677
83,957
1,405
-
-
361,873
Additions
-
1,099
-
652
-
-
1,751
Disposals
-
(18,776)
(324)
(236)
-
-
(19,336)
Depreciation
expense
-
(10,414)
(17,292)
(1,821)
-
-
(29,527)
Depreciation
capitalised
-
-
-
-
-
-
-
Carrying amount at
the end of year
226,834
21,586
66,341
-
-
-
314,761
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 49
Note 13 Exploration & Evaluation Assets
NON-CURRENT
Exploration Expenditure
Costs carried forward in respect of areas of interest in:
2024
$
2023
$
– exploration and evaluation phases
16,789,935
15,949,760
Opening balance
15,949,760
15,065,837
Additional expenditure
2,011,563
2,821,773
NSW Drilling Grant
-
(88,500)
Impairment of exploration expenditure
(178,228)
-
Reimbursed exploration expenditure
(993,160)
(1,849,350)
Closing balance
16,789,935
15,949,760
Note 14. Trade and Other Payables
CURRENT
Consolidated Entity
2024
$
2023
$
Trade creditors
100,215
349,757
Sundry creditors and accrued expenses
133,161
159,183
GST Collected
(46,872)
(8,076)
186,504
500,864
Note 15. Contract Liability
Consolidated Entity
2024
$
2023
$
Amounts related to Golden Plains Resources Earn-In Agreements
118,405
41,550
Total Contract Liabilities
118,405
41,550
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
Consolidated Entity
2024
$
2023
$
Employee benefits
118,221
57,053
NON-CURRENT
Employee benefits
14,851
19,787
Notes to the Financial Statements
50 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Note 17
Issued Capital
Consolidated Entity
2024
$
2023
$
2,248,601,078 (2023: 2,005,244,731) fully paid ordinary shares
38,623,683
36,294,888
38,623,683
36,294,888
Ordinary shares
At the beginning of the reporting period
36,294,888
35,156,698
Shares issued during the year
2,365,002
1,194,000
Transaction costs relating to share issues
(36,207)
(55,810)
At reporting date
38,623,683
36,294,888
2024
$
2023
$
At the beginning of reporting period
2,005,244,731
1,806,244,734
Shares issued during year
Total shares issued during the year
243,356,347
198,999,997
At reporting date
2,248,601,078
2,005,244,731
Reserves
Consolidated Entity
2024
$
2023
$
Share based payments
438,190
425,564
b. Capital Management
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 51
c. Share based payments & options
Type
Grant
date
Expiry
date
Exercise
price
Balance
at start of
the year
Granted
Exercised
Expired/
Forfeited *
Balance
at 30 June
2024
Employee Options
30/04/2019 31/12/2023
1.10 cents
5,000,000
-
-
5,000,000
-
Employee Options
9/03/2022 9/03/2026
1.25 cents
40,000,000
-
5,000,000
-
35,000,000
Employee Options
29/04/2022 29/04/2026
1.25 cents
15,300,000
-
8,700,000
-
6,600,000
Employee Options 30/08/2022 15/06/2026
1.54 cents
30,000,000
-
-
-
30,000,000
Employee Options 30/08/2022 30/08/2026
1.52 cents
25,000,000
-
-
-
25,000,000
Broker Options
28/02/2023 28/02/2025
2.00 cents
5,000,000
-
-
-
5,000,000
Placement Options 10/08/2023 28/02/2025
2.00 cents
- 100,000,000
-
-
100,000,000
Placement Options
21/12/2023 28/02/2025
2.00 cents
-
38,333,330
-
-
38,333,330
Total
120,300,000
138,333,330
13,700,000
5,000,000
239,933,330
* Performance Based, measure not met
The fair value of the Employee 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 13,700,000 Employee Options were exercised for 9,539,149 Shares.
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.
Notes to the Financial Statements
52 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Note 18. Controlled Subsidiaries
Country of
Incorporation
Percentage Owned (%)
2024
2023
Parent Entity
Rimfire Pacific Mining Limited
Subsidiaries of Rimfire Pacific Mining Limited
Axis Mining NL
Australia
100
100
Rimfire Sales Agent Fifield Project Pty Ltd
Australia
100
100
Rimfire Sales Agent Avondale Project Pty Ltd
Australia
100
100
Note 19
Parent Entity Information
2024
$
2023
$
Current assets
385,510
540,168
Total assets
17,659,516
16,959,412
Current liabilities
423,130
597,965
Total liabilities
437,978
600,735
Issued capital
38,623,680
36,294,888
Reserves
438,190
425,564
Accumulated losses
(21,840,335)
(20,378,792)
Total equity
17,222,761
16,341,660
Loss of the parent entity
(1,460,320)
(814,333)
Comprehensive loss of the parent entity
(1,460,320)
(814,333)
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.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 53
Note 20 Capital and Leasing Commitments
Capital Expenditure Commitments
The Consolidated entity is committed to capital expenditure
on its various mining tenements and leases as follows:
2024
$
2023
$
Payable
- not later than 1 year
601,310
435,990
- later than 1 year but not later than 5 years
162,458
543,369
763,767
979,359
Note 21
Contingent Liabilities and Contingent Assets
There are no contingent liabilities or contingent assets at 30 June 2024 (30 June 2023: 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.
Notes to the Financial Statements
54 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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)
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 2024. The totals of remuneration paid to Key Management Personnel of the company during the
year are as follows:
2024
$
2023
$
Short-term employee benefits
582,446
481,444
Post-employment benefits
52,418
42,735
Long-term benefits
15,481
6,864
Share-based payments
64,934
243,620
TOTAL
715,279
774,663
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 55
Note 24 Related Party Details
2024
$
2023
$
Office Rent
5,476
5,280
In the current period, the Company incurred an expense of $5,476 (2023: $5,280) 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
Consolidated Entity
2024
$
2023
$
Loss after income tax
(1,460,320)
(814,333)
Non-cash flows in loss
Depreciation
20,016
29,527
Loss on disposal of PPE
16,458
19,639
Impairment of exploration expenditure
178,228
-
Expense of share-based payment
12,626
333,271
Changes in assets and liabilities relating to operations
(Increase)/decrease in prepayments
11,183
1,882
(Increase)/decrease in other receivables
(45,646)
10,374
Increase/(decrease) in trade creditors and accruals
(17,586)
251,260
Increase/(decrease) in provisions
56,229
14,986
Cash flows used in operations
(1,228,812)
(153,394)
Notes to the Financial Statements
56 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
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
Carrying
value 2024
Carrying
value 2023
$
$
Cash & cash equivalents
9
Cash and other financial assets
187,666
377,231
Trade and other receivables
10
Trade and other receivables at
amortised cost
278,387
227,741
Financial liabilities
Trade and other payables
14
Financial liabilities measured at
amortised cost
186,504
500,862
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 57
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
$
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Financial Assets
Cash
187,166
376,731
-
-
-
-
500
500
187,666
377,231
Receivables
185,000
155,000
-
-
-
-
93,387
72,741
278,387
227,471
Total Financial Assets
372,166
531,731
93,887
73,241
466,053
604,972
Financial Liabilities
Trade and sundry
creditors
-
-
-
-
186,504 500,862
186,504
500,862
Lease liabilities
-
-
-
-
Total Financial
Liabilities
-
-
-
-
186,504 500,862
186,504
500,862
Net inflow/(outflow)
on financial assets
372,166
531,731
-
-
-
-
(92,617) (427,621)
279,549
104,110
c. Net Fair Values
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
Consolidated Entity
2024
$
2023
$
- Increase in interest rate by 0.5%
2,409
3,617
- Decrease in interest rate by 0.5%
(2,409)
(3,617)
Change in equity
- Increase in interest rate by 0.5%
2,409
3,617
- Decrease in interest rate by 0.5%
(2,409)
(3,617)
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.
Notes to the Financial Statements
58 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Note 27 Events Occurring after the Reporting Period
In July 2024, Rimfire was awarded exploration credits of $750,000 under the Federal Government’s Junior
Minerals Exploration Incentive (JMEI) program for distribution during the 2024 / 2025 Financial Year to
eligible shareholders.
During July 2024 Rimfire raised $1.15 million through a share placement pursuant to Section 708 of the
Corporations Act (Cth). The placement comprised the issue of a total of 45,800,000 fully paid ordinary
shares at an issue price of $0.025 (2.5 cents) per share. The issue price of the placement represented a 10.7%
discount to the closing share price on 28 June 2024 and a 150% premium to the issue price of the Company’s
last placement (see Rimfire’s ASX Announcement dated 14 December 2023).
In addition, 15,266,665 free attaching unlisted options were issued on a one (1) for three (3) basis, being one (1)
free attaching unlisted option for every three (3) new shares subscribed for and issued under the placement
with an exercise price of $0.05 (5 cents) each, and an expiry date of 31 December 2025. The 45,800,000
placement shares were issued under Rimfire’s existing ASX Listing Rule 7.1A placement capacity and the
15,266,665 unlisted options were issued under Rimfire’s existing ASX Listing Rule 7.1 placement capacity.
As reported in the Operations Section of this report, on 5 September 2024, Rimfire announced maiden
Mineral Resource estimates for 100% owned Murga North scandium prospect deposit and an exploration
target for the greater Murga area (excluding Murga North):
Melrose Scandium Deposit Mineral Resource Estimate (100ppm Sc cut-off grade)
Category
Mt
Sc ppm
Sc2O3
ppm
Co ppm
Ni ppm
Sc
Tonnes
Sc2O3
Tonnes
Co
Tonnes
Ni
Nickel
Indicated
2.9
250
380
570
2,000
730
1,100
1,700
5,900
Inferred
0.1
200
310
430
1,300
16
20
30
100
Total
3.0
240
380
570
2,000
740
1,120
1,730
6,000
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
H&S Consultants Pty Ltd also defined an Exploration Target for the broader Murga area (excluding the Murga
North Mineral Resource), based on an outline of the scandium-bearing pyroxenite throughout the Murga
Intrusive Complex interpreted from aeromagnetic data and results of Rimfire’s 2024 reconnaissance aircore
drilling (on nominal 400m x 400m centres) throughout the Murga area.
An average thickness of 15 metres has been assumed along with a default density of 2.15t/m3 . However, it
is unknown at this stage if the whole outlined area will have reasonable prospects for eventual extraction
so it has been assumed that only 50% of the area within the pyroxenite outline will be classified as the
Exploration Target. The Exploration Target for the broader Murga area is: 100 to 200Mt at 100 to 200ppm Sc.
Cautionary Statement: The potential quantity and grade of the Exploration Target is conceptual in
nature and there has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if
further exploration will result in the estimation of a Mineral Resource.
On September 5 2024, Rimfire also announced a maiden Mineral Resource estimate for Melrose which is
subject to the Avondale Project Earn-in with GPR earning up to 75%;
Murga North Scandium Deposit Mineral Resource Estimate (100ppm Sc cut-off grade) – 100% RIM owned.
Category
Mt
Sc ppm
Sc2O3 ppm
Sc Tonnes
Sc2O3 Tonnes
Inferred
21.0
125
190
2,650
4,050
Total
21.0
125
190
2,650
4,050
* Sc tonnage multiplied by 1.53 to convert to Sc2O3. Table includes minor rounding errors.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 59
Note 28 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
Notes to the Financial Statements
Rimfire announced on 25 September 2024, that it had received binding commitments from option
holders for the exercise of a total of 60,166,665 $0.02 exercise price unlisted options (expiring 28-Feb-2025
with an exercise price of $0.02) (2cent Options) to raise $1.2 million. Rimfire intends to issue a “cleansing
prospectus” to facilitate the on-sale of the shares to be issued upon exercise of the 2cent Options post
Annual Report signing (see RIM ASX Announcement dated 26 September 2024).
On 25 September 2024, Rimfire issued a notice of termination to GPR in respect of the Fifield Project
Earn-in Agreement, with the termination stated to take immediate effect. Rimfire is considering its rights
in relation to the Avondale Project Earn-in Agreement in light of the Judgement and is currently seeking
further information from GPR (see RIM ASX Announcement dated 26 September 2024).
On 26 September 2024, the company received a letter from GPR’s lawyers disputing the termination of
the Fifield Project Earn-in Agreement. The Directors believe that the Fifield Earn-in Agreement was validly
terminated (see RIM ASX Announcement dated 27 September 2024).
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.
60 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Rimfire Pacific Mining Limited Consolidated Entity Disclosure Statement As at 30 June 2024
Entity name
Entity type
Place formed/
Country of
incorporation
Ownership
interest
Tax
Residency
Rimfire Pacific Mining Limited
Body corporate
Australia
-
Australia
AXIS Mining NL
Body corporate
Australia
100%
Australia
Rimfire Sales Agent Fifield Project Pty Ltd
Body corporate
Australia
100%
Australia
Rimfire Sales Agent Avondale Project Pty Ltd
Body corporate
Australia
100%
Australia
Consolidated Entity Disclosure Statement
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 61
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 2024 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 information disclosed in the attached consolidated entity disclosure statement is true and correct.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5) of the Corporations
Act 2001.
On behalf of the directors
Chairman
Ian McCubbing
Dated this 30th day of September 2024
Directors’ Declaration
62 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
INDEPENDENT AUDITOR’S REPORT
To the Members of Rimfire Pacific Mining Limited
Opinion
We have audited the financial report of Rimfire Pacific Mining Limited (‘the Company’), and its subsidiaries
(together ‘the Group’), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including material accounting policy information, the consolidated entity disclosure statement and the
directors' declaration.
In our opinion the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group's financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 63
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.
Key Audit Matter
How our audit addressed this matter
Valuation of Exploration and Evaluation Assets
Refer to Note 13 in the financial statements
At 30 June 2024, the carrying value of the Group’s
capitalised Exploration and evaluation assets amounted
to $16,789,935. This balance represents 95% of the
total assets of the Group as at that date.
In accordance with AASB 6 Exploration for and
Evaluation
of
Mineral
Resources
(‘AASB
6’),
management conducted an impairment assessment of
the carrying value of these assets, including:
•
Determination of whether expenditure can be
associated with the exploration for and evaluation of
mineral resources, and the basis on which that
expenditure is allocated to a specific area of
interest;
•
Assessment of the Group's ability and intention to
continue to explore the identified areas of interest;
•
Assessment as to whether any indicators of
impairment exist, and if so, the judgements applied
to determine and quantify any impairment loss; and
•
Assessment as to whether the exploration activities
have progressed to the stage at which the existence
of an economically viable mineral reserve may be
determined, and if so, whether the carrying value of
exploration
and
evaluation
expenditures
are
expected to be recouped through successful
development and exploitation, or sale, of the area of
interest.
We determined this to be a key audit matter due to the
significance of these assets in the statement of financial
position. Also, due to the significant management
estimates and judgements involved in the process for
the assessment of impairment.
Our audit procedures included the following:
•
Reviewing the Group’s accounting policy in
relation
to
exploration
and
evaluation
expenditure to confirm it is in accordance with
AASB 6;
•
Agreeing a sample of additions to supporting
documentation to ensure that the amounts were
capital in nature and in line with the Group’s
accounting policy;
•
Critically
assessing
and
evaluating
management’s assessment that no indicators of
impairment existed as at 30 June 2024. This
assessment included inquiring with management
and reviewing budgets and plans to determine
that the company is planning to incur substantive
expenditure on further exploration for and
evaluation of mineral resources in the specific
areas of interest;
•
Assessing the rationale and the accuracy of the
impairment charge recognised in Exploration
and Evaluation assets for $178,228;
•
Reviewing the rights to tenure of the areas of
interest remain current at the reporting date;
•
Reviewing ASX announcements, minutes of
directors’
meetings
and
other
relevant
documentation,
to
assess
management’s
determination that exploration activities have not
yet progressed to the point where the existence
or otherwise of an economically viable mineral
resource may be determined; and
•
Reviewing the related disclosures included in the
financial
report
for
their
adequacy
and
completeness.
64 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2024; but does not include the financial report and 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:
a.
the financial report (other than the Consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b.
the Consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the Consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
ii.
the Consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or 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/ar1_2020.pdf This
description forms part of our auditor's report.
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 65
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 22 to 25 of the directors' report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of Rimfire Pacific Mining Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
RSM AUSTRALIA PARTNERS
R J MORILLO MALDONADO
Partner
Melbourne, Victoria
Dated: 30 September 2024
66 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholder
Schedule of Exploration Licences and Mining Licences as at 30 September 2024
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
Valley Copper
Project
RIM 100%
EL8542
23/3/2017
5
23/03/2026
Porphry Copper / Gold
EL8401
22/10/2015
2
22/10/2024
Porphry Copper / Gold
Cowal Copper
Project
RIM 100%
EL8804
31/10/2018
44
31/10/2024
Copper / Gold
EL8805
31/10/2018
39
31/10/2024
Copper / Gold
EL9397
22/4/2022
91
22/4/2025
Copper / Gold
Broken Hill Copper
/ Cobalt Project
RIM 100%
EL5958
24/6/2002
27
24/6/2025
Copper / Cobalt
EL8572
23/5/2017
19
23/5/2026
Copper / Cobalt
EL8599
20/6/2017
20
20/6/2026
Copper / Cobalt
Fifield Project*
RIM 100%
EL8935
3/2/2020
21
3/2/2026
Scandium / Gold / PGEs
M(C)L305
18/11/2004
1.9
17/11/2027
Scandium / Gold / PGEs
EL6241
17/5/2004
15
17/5/2027
Scandium / Gold / PGEs
Avondale Project*
Earn-in
GPR earning up
to 75%
EL5565
24/3/1999
4
24/3/2025
Cobalt / PGEs / Nickel / Scandium
EL7058
1/2/2008
35
1/02/2026
Cobalt / PGEs / Nickel / Scandium
EL7959
16/8/2012
7
16/08/2023
Cobalt / PGEs / Nickel / Scandium
EL8401
22/10/2015
98
22/10/2024
Cobalt / PGEs / Nickel / Scandium
EL8542
23/3/2017
27
23/03/2026
Cobalt / PGEs / Nickel / Scandium
EL8543
27/3/2017
1
27/03/2026
Cobalt / PGEs / Nickel / Scandium
EL8935
3/2/2020
19
3/02/2026
Cobalt / PGEs / Nickel / Scandium
There is no plan for EL8805 to be renewed and will be relinquished upon expiry date.
Land Tenure
*
On 25 September 2024, Rimfire issued a notice of termination to GPR in respect of the Fifield Project Earn-in Agreement, with the
termination stated to take immediate effect. Rimfire is considering its rights in relation to the Avondale Project Earn-in Agreement in light
of the Judgement and is currently seeking further information from GPR (see RIM ASX Announcement dated 26 September 2024).
On 26 September 2024, the company received a letter from GPR’s lawyers disputing the termination of the Fifield Project Earn-in Agreement.
The Directors believe that the Fifield Earn-in Agreement was validly terminated (see RIM ASX Announcement dated 27 September 2024)
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 67
Resource Inventory
Competent Persons Declaration – Exploration Results
The information in this Report that relates to Exploration 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 (FAusIMM). 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.
Competent Persons Declaration – Mineral resources – Melrose and Murga North, Exploration Target – Murga
The data in this Report that relates to Mineral Resource estimates and the Exploration Target is based on information evaluated by Mr Simon Tear
who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 (the “JORC Code”). Mr Tear is a Director
of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.
Competent Persons Declaration – Mineral resources – Sorpresa
The information in this Report that relates to mineral Resources for the Sorpresa deposit is based on information compiled by Mr Arnold van der
Heyden, who is a Member and Chartered Professional (Geology) of the Australian Institute of Mining and Metallurgy and Managing Director of H&S
Consultants Pty Ltd.
Mr van der Heyden has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’ (JORC Code). Mr van der Heyden consents to the inclusion in the Report of the matters based on the information in the
form and context in which it appears.
Summary of Mineral Resources – Melrose / Murga Scandium (RIM ASX Release 9/09/2024)*
Deposit
Category
Cut off
Mt
Sc_ppm
Co_ppm
Ni_ppm
Contained Contained Contained Contained
Sc t
Sc2O3 t
Co t
Ni t
Melrose
Indicated
100ppm Sc
2.9
250
570
2,000
730
1,100
1,700
5.9
Inferred
0.1
200
430
1,300
16
20
30
100
TOTAL
3.0
240
570
2,000
740
1,120
1,730
6,100
Murga North
Inferred
21.0
125
2,650
4,050
Melrose +
Murga North
TOTAL
3,390
5,170
Murga Exploration
Target
100 to 200Mt at
100 to 200ppm Sc
See Cautionary Statement
Cautionary Statement:
The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral
Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
Summary of Mineral Resources – Sorpressa Combined Gold Silver (RIM ASX Release 6/11/2019)*
Deposit
Category
Cut off
Mt
g/t Au
g/t Ag
Contained Au Koz
Contained Ag
Sorpressa
Measured
1g/t Au & 85g/t Ag
0.189
2.54
70
15.4
0.43
Indicated
1.041
1.25
78
41.7
2.62
Inferred
0.289
1.84
42
17.1
0.39
TOTAL
1.519
1.52
70
74.3
3.44
* The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant
market announcement and, that all material assumptions and technical parameters underpinning the estimates in the relevant market
announcement continue to apply and have not materially changed and that there has been no changes to the Sorpressa Mineral Resources
over the Financial Year.
68 / Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
Additional Information
FOR PUBLICLY LISTED COMPANIES
1.
The shareholder information set out below was applicable as at 24 September 2024.
(a) Distribution of Shareholders by Class – RIM Ordinary Shares
Range
Total
Holders
Fully Paid
Ordinary Shares
% of
Issued Capital
1 - 1,000
207
58,658
0.00%
1,001 - 5,000
159
522,026
0.02%
5,001 - 10,000
192
1,651,431
0.07%
10,001 - 100,000
1,089
49,718,999
2.17%
100,001 Over
1,091
2,243,283,297
97.74%
Total
2,738
2,295,234,411
100.00%
(b) Marketable Parcel
The number of shareholders holding less than a marketable parcel ($500 parcel @$0.079 per share)
of ordinary shares was 393 holding a total of 738,392 shares.
(c) The number of holders of each class of equity security
Class of Security
Number
Fully Paid Ordinary Shares
2,738
As at 24 September 2024 there were 96,600,000 unissued shares under option, with performance or service
based vesting conditions held by 9 option holders. All option holders hold over 100,001 unlisted options.
As at 24 September 2024 there were 142,499,997 unissued shares under option, exercisable at $0.02 (2 cents)
each, expiring 28 February 2025 held by 12 option holders. All option holders hold over 100,001 unlisted
options.
As at 24 September 2024 there were 15,266,665 unissued shares under option, exercisable at $0.05 (5 cents)
each, expiring 31 December 2025 held by 6 option holders. All option holders hold over 100,001 unlisted
options.
The following persons hold 20% or more of unquoted equity securities in their respective class:
Class
Number held
Tiga Trading Pty Ltd
Options over ordinary shares issued, exercisable at
$0.05 each, expiring 31 December September 2025
6,666,666
Mrs Valda Elizabeth Murden
Options over ordinary shares issued, exercisable at
$0.05 each, expiring 31 December September 2025
3,333,333
The JMS Foundation Pty Ltd
Options over ordinary shares issued, exercisable at
$0.05 each, expiring 31 December September 2025
3,333,333
Specialist Vehicle Manufacturers
Pty Ltd
Options over ordinary shares issued, exercisable at
$0.02 each, expiring 28 February 2025
44,000,000
Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders / 69
69 | Rimfire Pacific Mining Limited 2024 Annual Report to Shareholders
(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.
(e) 20 Largest Shareholders – RIM Ordinary Shares
Name
Number of
Ordinary Fully
Paid Shares
Held
% Held of
Issued
Ordinary
Capital
1.
ICE COLD INVESTMENTS PTY LTD
90,833,333
3.96
2.
GOLDEN PLAINS RESOURCES PTY LTD
90,000,000
3.92
3.
BNP PARIBAS NOMINEES PTY LTD
89,700,554
3.91
4.
CITICORP NOMINEES PTY LIMITED
77,364,468
3.37
5.
REEF INVESTMENTS PTY LTD |
67,373,333
2.94
6.
AGATI PTY LTD
55,000,000
2.40
7.
SPECIALIST VEHICLE MANUFACTURERS PTY LTD
54,500,000
2.37
8.
FLASH PTY LTD
53,675,000
2.34
9.
ANT NICHOLSON PTY LTD
49,000,000
2.13
10.
RESOURCE CAPITAL LIMITED
40,000,000
1.74
11.
MR PENG WANG
38,174,603
1.66
12.
RATTLING TRAIN PTY LTD
30,000,000
1.31
13.
PEARCE FINANCIAL SERVICES PTY LTD
27,000,339
1.18
14.
TRANS GLOBAL CAPITAL LTD
27,000,000
1.18
15.
FLASH PTY LTD
26,340,000
1.15
16.
MR GRAHAM CHARLES HOPGOOD + MRS ROBYN LESLEY HOPGOOD
25,000,000
1.09
17.
SUTHERLAND FAMILY COMPANY PTY LTD
25,000,000
1.09
18.
MR JAMES HENDERSON ALLEN
22,500,000
0.98
19.
MISS JUNE MARY SPEED
22,000,000
0.96
20.
THE JMS FOUNDATION PTY LTD
22,000,000
0.96
TOTAL: TOP 20 HOLDERS OF FULLY PAID ORDINARY SHARES
932,461,630
40.63
TOTAL: REMAINING HOLDERS BALANCE
1,362,772,781
59.37
Additional Information (cont.)
70 / Rimfire Pacific Mining Limited 2024 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 24 September 2024.
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 8 July 2024 – 206,805,000 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 2024 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 2024.
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 9 October 2024.
Additional Information (cont.)
Rimfire Pacific Mining Limited 2024 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:
Suite 142, 1 Queens Road
Melbourne VIC 3004
+61 3 9620 5866
Auditors:
RSM Australia Pty Ltd
Level 27, 120 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 2024 Annual Report to Shareholders
www.rimfire.com.au
Rimfire Pacific Mining Limited
St Kilda Rd Towers
Suite 142,
1 Queens Road
Melbourne VIC 3004
|