SCORPION MINERALS LIMITED
ABN 40 115 535 030
Financial Report
For the year ended 30 June 2022
SCORPION MINERALS LIMITED | www.scorpionminerals.com.au | ASX:SCN
24 MUMFORD PLACE BALCATTA WA 6021 | T: +61 8 6241 1877 | F: +61 8 6241 1811 | ABN: 40 115 535 030
CONTENTS
CORPORATE DIRECTORY ..............................................................................................................................................................2
DIRECTORS’ REPORT .....................................................................................................................................................................3
AUDITOR’S INDEPENDENCE DECLARATION .............................................................................................................................41
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ...........................................42
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 ......................................................................43
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022 .........................................44
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022 ......................................................45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ....................................................................................................46
DIRECTORS’ DECLARATION ........................................................................................................................................................63
INDEPENDENT AUDITOR’S REPORT ...........................................................................................................................................64
ADDITIONAL INFORMATION .........................................................................................................................................................68
TENEMENT S...................................................................................................................................................................................70
CORPORATE GOVERNANCE STATEMENT ................................................................................................................................. 72
APPENDIX 4G ................................................................................................................................................................................. 83
i
CORPORATE DIRECTORY
Directors
Bronwyn Barnes
Kate Stoney
Michael Kitney
Executive Chairman
Non-Executive Director
Non-Executive Director
Company Secretary
Kate Stoney
Registered Office
Level 1, 24 Mumford Place
Balcatta WA 6021
Telephone
Facsimile
08 6241 1877
08 6241 1811
Solicitors
Mills Oakley
Level 24, 240 St George’s Terrace
Perth WA 6000
Telephone: 08 9197 9800
Share Registry
Advanced Share Registry
Telephone
Facsimile
Email:
08 9389 8033
08 6370 4203
admin@advancedshare.com.au
Auditors
Rothsay Audit & Assurance Pty Ltd
Level 1, Lincoln House
4 Ventnor Avenue
West Perth WA 6005
Telephone
08 9486 7094
ASX Code
Website
SCN
www.scorpionminerals.com.au
2
DIRECTORS’ REPORT
Your Directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Scorpion
Minerals Limited and the entities it controlled at the end of or during the financial year ended 30 June 2022.
DIRECTORS
The names and details of the Group’s Directors in office during the financial year and until the date of this report are as
follows:
Bronwyn Barnes
Kate Stoney
Michael Kitney
Craig Hall
Executive Chairman – appointed 31 October 2018
Non-Executive Director – appointed 16 February 2021
Non-Executive Director – appointed 7 June 2022
Non-Executive Director – appointed 11 February 2019 (resigned 7 June 2022)
INFORMATION ON DIRECTORS
Bronwyn Barnes (appointed 31 October 2018)
Ms Barnes has had an extensive career in the resources sector, having worked with companies ranging from BHP Billiton to
emerging juniors in directorship, executive leadership, and operational roles in Australia and internationally. Ms Barnes has
extensive experience in ASX listed company boards focused on minerals exploration and development.
Ms Barnes is currently Executive Chairman of ASX listed Indiana Resources Limited and Non-Executive Chairman of Aerison
Group Limited and Finder Energy Ltd. She is also a Non-Executive Director of Synergy (Electricity Generation and
Retail Corporation). Ms Barnes was previously a Non-Executive Eirector of MOD Resources Limited, Windward Resources
Limited, Auris Minerals Ltd and JC International Group Ltd.
Craig Hall (appointed 11 February 2019) (resigned 7 June 2022)
Mr Hall is an experienced geologist with over 30 years of mineral industry experience in exploration, development and
production roles in a range of commodities, principally precious and base metals. He has held a variety of senior positions
with mid-tier and junior sector resource companies within Australia and overseas.
Mr Hall is currently a Non-Executive Director of ASX listed Auris Minerals Limited and Horseshoe Metals Limited. Mr Hall
was previously a Non-Executive Director of Redbank Copper Limited, Eclipse Metals Limited and Target Energy Limited.
Kate Stoney (appointed 16 February 2021)
Ms Stoney is a CPA qualified accountant with over 15 years' experience working with public companies in administration,
finance, ASX compliance, and company secretarial positions.
Ms Stoney is currently Director and Company Secretary of Horseshoe Metals Limited (ASX:HOR) and Company Secretary of
Indiana Resources Limited (ASX:IDA). She was previously General Manager – Finance and Company Secretary for Echo
Resources Ltd (ASX: EAR). Ms Stoney brings a wealth of experience in the Exploration to Production Stages of Mining and
has an extensive network within the industry.
Michael Kitney (appointed 7 June 2022)
Mr Kitney is an internationally experienced extractive metallurgist with in excess of 40 years’ experience in resource
evaluation and project development roles in Australia and internationally. From 2010 to early 2017 he held the role of COO
for Kasbah Resources Limited, responsible for all aspects of resource development, metallurgical development, project
feasibility and stakeholder engagement for the Achmmach Tin Project in Morocco.
Recently he was Chief Metallurgist for lithium developer Prospect Resources Limited (ASX:PSC). Metallurgical process
testing and design include heavy mineral recovery using gravity methods, magnetic separation and base metal and lithium
mineral flotation process design. Hydrometallurgical process experience includes bauxite refining, lithium chemicals
3
production, gold extraction and recovery and copper leaching and recovery. He is presently an Executive Director providing
technical direction to Mn Energy Limited for process development for battery grade manganese sulphate production and has
contributed to project development and construction throughout Africa, SE Asia, the CIS and Australia. He presently holds
non-executive director positions with Breaker Resources NL (ASX:BRB) and Monument Mining Limited (TSX:MMY).
Mr Kitney holds a Master of Science degree from WA School of Mines (Mineral Economics) and is a member of the Australian
Institute of Company Directors.
COMPANY SECRETARY
Kate Stoney B Bus, CPA (appointed 02 December 2019)
PRINCIPAL ACTIVITIY
The principal activity of the Group is exploration for mineral resources.
INTERESTS IN SHARES AND OPTIONS
As at the date of this report, the interests of the Directors in the shares and options of Scorpion Minerals Limited were:
Bronwyn Barnes
Kate Stoney
Michael Kitney
DIVIDENDS
There were no dividends declared or paid during the financial year.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Ordinary shares Options over Ordinary Shares
17,868,250
-
-
3,750,000
3,000,000
3,000,000
Apart from the above or as noted elsewhere in this report no significant changes in the state of affairs of the Group occurred
during the financial year.
OPERATING AND FINANCIAL REVIEW
REVIEW OF OPERATIONS
Scorpion Minerals Limited (ASX: SCN) (the Company) provides the following review of activities for the year ended 30
June 2022.
Key operational highlights for fiscal year 2022 include:
- Completed technical review highlights strong lithium potential of Pharos and extends zone of pegmatite
intrusion to 50km strike
- Several drill ready lithium and base metals targets identified
- Strategic acquisition of Poona Project (E20/885, E20/896, E20/963 and E20/964) from eMetals Limited
(ASX:EMT), which cover a combined 904km² in the Murchison Goldfield
4
- Poona Project is contiguous with SCN’s Pharos tenements and increase SCN’s footprint in the
Murchison by approx 150% to now stand at 1,544km²
- Completed 16 RC drill holes at Pharos for a total of 1,134m targeting the Beacon, Candle, Candle North
and Lantern Prospects and two east-west sections at Cap Lamp
- Results from the RC programme confirmed a new shallow high-grade zone confirmed at Cap Lamp,
with a best result of 1m @ 11.76 g/t Au from 10m
- Three high priority PGE-Ni-Cu Targets (Pallas, Glen Nickel and Mt Mulcahy South) confirmed within
the Pharos Project
- New agreement signed with Fenix Resources (ASX: FEX) accelerates the previous farm-in and joint
venture agreement
- Appointment of Airguide as strategic advisor to support near-term exploration strategy and to introduce
potential strategic partnerships to advance WA lithium assets
- Appointment of Obsidian Metals as lithium technical advisor - renowned WA-based lithium expert Michael
Fotios is lead consultant for OMG and will guide Scorpion’s lithium exploration strategy
PHAROS LITHIUM, GOLD and BASE METALS PROJECT Murchison, WA
Poona Project increases Murchison footprint by 150%
During the first half of the year, the Company advised that it had entered into a binding Heads of Agreement with eMetals
Limited (ASX:EMT) (“eMetals”) to acquire its interests in tenements E20/885, E20/896, E20/963 and E20/964 (together the
“Tenements”), collectively referred to as the Poona Project. These tenements cover a combined 904km² located 60km
northwest of Cue in the Murchison Goldfield of Western Australia (see Figures 1 and 2).
The Pharos Project now covers an area of 1,544km2 in the Murchison Mineral Field, Western Australia, and is 100% owned
by Scorpion. The Tenements are contiguous with SCN’s Pharos tenements and comprise the Poona Project, containing the
Mughal Ni-Cu target, and the Poona and Jackson’s Reward Pegmatite occurrences, and are located immediately south of
SCN’s high priority PGE-Ni-Cu target identified at Pallas.
In the second half of the year SCN released announcements on the PGE-Ni-Cu and Au and lithium mineral prospectivity of
the Poona Project, respectively. SCN plans to undertake an extensive drilling campaign across priority targets at Pharos,
which will include testing of pegmatite targets at Poona, PGE-Ni-Cu target identified at Pallas, the shallow high-grade gold
prospect at Cap Lamp, and Cu-Au-Zn VMS targets at Mt Mulcahy.
Under the agreement, SCN acquired 100% of eMetals interest in the Tenements for a cash consideration of $12,500 and
4,000,000 fully paid ordinary shares in SCN. EMT will also receive a 0.5% net smelter return (NSR) royalty in respect of
minerals mined from the Tenements, should commercial mining be undertaken. Settlement was completed following
successful completion of due diligence in the second half of the year.
Further details on the tenement acquisition are available in the ASX announcement dated 6 December 2021.
5
Figure 1 – Location of Pharos Project in Murchison area of WA, highlighting regional mineral endowment
Target Areas by Commodity – Pharos Project
Lithium
Following the acquisition of the Poona Project, SCN commenced a detailed technical data review that identified 50km of
significant rare metal and Lithium, Caesium, Tantalum (“LCT”) pegmatite strike potential within the Company’s Pharos Project.
The interpreted LCT Pegmatite Emplacement Zone (‘PEZ’) has now been extended east of the recently acquired Poona
Prospect into the Jacksons Reward Prospect area within Pharos (refer Figure 4).
Scorpion’s ongoing technical review into the LCT pegmatite potential at Pharos has confirmed the PEZ contains mostly
greenstone-hosted pegmatite intrusions adjacent to a contact with a Rb+Cs-enriched altered late granite. This area has seen
previous historic exploration and small-scale production activity for Sn, Ta, W, Beryl and Emeralds (Poona and Aga Khan –
Figures 3 and 4), all of which are typically present in most significant rare metal provinces (e.g. Pilbara and Greenbushes,
WA).
Scorpion considers the entire PEZ zone a priority target that warrants considerable additional exploration focus. The balance
of the Pharos Project is also considered highly prospective for LCT pegmatite mineralisation and will require further
systematic exploration to effectively evaluate the potential and extent of the both the interpreted PEZ and elsewhere.
6
Further details on the lithium technical review and historic exploration summary are available in the ASX
announcement dated 2 March 2022.
Nickel, Cobalt, PGE
Significant PGE mineralisation has been identified in the region at the Parks Reef project located north of Mt Weld and
operated by Podium Minerals (refer Figure 1). The Company has identified significant anomalies related to mafic/ultramafic
intrusives identified by base metal exploration completed in the 1960’s that was focused on VMS Cu-Zn-Ag-Au mineralisation
and are considered prospective for PGE-Ni-Cu mineralisation.
During the first half of the year, the Company identified three high priority PGE-Ni-Cu Targets (Pallas, Glen Nickel and
Mt Mulcahy South) within the Pharos Project that are summarised below:
a.
b.
c.
Geophysical (EM) anomalies located adjacent to Pallas PGE-Ni-Cu target;
Highly anomalous rock chip samples up to 1050ppm Ni and soil anomalies >700ppm Ni identified at Glen Nickel; and
Highly anomalous rock chip results up to 3900ppm Ni and soil anomalies up to 960ppm Ni identified at Mt Mulcahy
South.
Drilling of priority targets, in particular Pallas, is planned. Other planned work includes reprocessing of and/or data capture of
historic EM or IP surveys.
Subsequent technical review of data the Poona tenure has also highlighted significant Ni, Co, Pd, Pt and Au soil anomalies
associated with the interpreted Mindoolah Bore Mafic/Ultramafic Intrusive Complex (“MBIC”- refer Figure 12). Wide-spaced
aircore drill traverses targeting magnetic highs intersected significant Ni with associated anomalous Co (max 1383ppm) &
Pd+Pt (max 58 ppb) at the Perses Prospect where best results included 8m @ 1.02% Ni from 26m and 12m @ 0.71% Ni from
19m.
Targets at Poona correlate with those identified in historic work completed by Kennecott (1974) and CRA (1983) at the priority
Pallas target on E20/953. Ground electromagnetic (EM) survey identified conductive and IP responses adjacent to PGE-Ni-
Au anomalies remain untested.
The Company considers the Perses prospect a priority target that warrants detailed evaluation. The Company considers the
MBIC highly prospective for PGE-Ni mineralisation, which will require further systematic exploration to effectively evaluate the
entire intrusion. Significant targets remain to be followed up where EM/IP anomalies are coincident with elevated PGE-Ni-Au
soil geochemical anomalies.
A summary of relevant geochemistry for the Poona Prospect is highlighted in Figures 12, 13 and 14. eMetals ASX releases
dated 12 November 2020, 15 June 2021 and 28 October 2021 provide further recent background to the work completed. In
addition, the July 2021 ground MLEM survey identified a broad conductive anomaly and an IP chargeability response at
Perses adjacent to the earlier anomalous AC drilling.
Further details on the historic exploration summary pertaining to Nickel, Cobalt and PGE are available in the ASX
announcement dated 11 February 2022.
Gold
During the year the Company drilled and released results for 16 reverse circulation (RC) holes drilled for a total of 1,134m to a
maximum depth of 145m in north-south drill sections at Beacon, Candle, Candle North and Lantern, and two east-west
sections at Cap Lamp. The holes were designed to scissor historic intersections to determine strike and dip of the high-grade
structures. A single section was drilled at each target, apart from at Lantern and Candle where two sections were completed.
Most drill holes
intersected significant dolerite‐hosted structures with associated quartz veining, alteration
(silica‐carbonate‐chlorite-pyrite-arsenopyrite) and/or the weathered remnants. Regional alteration (carbonate-chlorite) of the
dolerite host rocks was also noted. Prospects contain multiple shear zone-hosted quartz vein targets within altered dolerite
similar to “Day Dawn” style mineralisation. Recent receipt of detailed aeromagnetic imagery and aerial photography is
assisting the Company’s ongoing exploration programme.
7
Results from the RC programme confirmed a new shallow high-grade zone confirmed at Cap Lamp, with a best result of 1m
@ 11.76 g/t Au from 10m in quartz veining within Hole CLRC012 (refer Figure 16). Further drilling is planned at Cap Lamp,
which is open to the west and north.
Scorpion’s priority gold targets within Pharos include the Oliver’s Patch Area, (containing the Candle, Lantern and Cap Lamp
prospects), Ulysses, Mustang Sally and Laterite Hill.
Significant previous gold drilling results include:
o 12m @ 7.40 g/t Au from 44m
o 16m @ 3.09 g/t Au from 16m
o 7m @ 8.33 g/t Au from 4m
o 5m @ 8.28 g/t Au from 9m
Lantern
Lantern
Lantern
Cap Lamp
(Historic)
(Historic)
(SCN-2020)
(SCN-2020)
Results at Beacon, Candle, Candle North and Lantern prospects confirmed the newly interpreted orientation of high-grade
structures.
Detailed discussions on the RC drilling completed at Cap Lamp, Lantern, Candle and Beacon are available in the ASX
announcement dated 20 October 2021.
Iron Ore (Fenix JV)
Scorpion entered into a joint venture with Fenix Resources Limited to explore for iron ore within the Company’s tenements.
Fenix can earn 70% of the iron ore rights by sole funding exploration and resource definition drilling to identify up to 10 million
tonnes. Alternatively, Fenix can earn 70% of a portion of the tenements by funding a feasibility study on a resource of at least
1 million tonnes of iron ore.
During the year in focus, Scorpion released a review of available air magnetic surveys identifying two target areas on the
southern flank of the Weld Range at Iron Ridge Extension and Ulysses (refer Figures 21 and 22). Further interpretation of
historic air core, reverse circulation (RC) and diamond drilling highlighted that previous work at Ulysses targeted gold and
base metal geochemical anomalies that also intersected significant widths of Banded Iron Formation (BIF) beneath an area of
cover to the south of the Weld Range (refer Figure 23). No assaying for iron was undertaken during this previous work.
Further evaluation of the historic drilling at Ulysses has enabled the accurate location of the prospective iron formation and
assisted planning of an RC drilling programme that will target the oxidised iron formation from the surface to a depth of 100m.
Drill logging has identified a strong oxidation profile at Ulysses to at least 100m depth (Figure 24).
Historic interpretation of magnetic data by consultant geophysicists in 1990 and again in 2010, remodelled after completion of
a detailed 50m line-spaced helimag survey, identified several strong negative anomalies at the Iron Ridge Extension prospect.
This type of anomaly was caused by reversely magnetised material of the Very Strongly Ferromagnetic type (VSFM) and it is
likely that these reversely polarised features are VSFM material such as magnetite or hematite.
The area remains inadequately tested for its iron ore potential and the newly identified VSFM targets will be the focus of
further evaluation and an RC drill programme.
The Company received improved aeromagnetic data during the first half of the year, aiding in detailed definition of the Iron
Ridge Extension and Ulysses iron targets. The Company, in conjunction with Fenix and the Native Title Party completed
archaeological and ethnographic surveys of the complete Iron Ridge Extension and Ulysses targets, prior to planned RC
drilling of priority areas.
In the second half of the year, the Company announced that it had executed a revised agreement with Fenix that has
accelerated and expanded the previous iron ore earn-in agreement over the Pharos Project. Fenix is now deemed to have
earned a 100% interest in the Iron Ore Rights within the Pharos Project, for a consideration to be paid by Fenix to Scorpion
consisting of:
8
Upfront consideration of:
o 4 million ordinary shares in Fenix; and
Deferred consideration of:
o 5 million Fenix ordinary shares on delineation of an inferred resource of at least 10Mt iron ore, or an indicated
and/or measured resource of at least 1Mt iron ore; and
o 5 million Fenix ordinary shares on first shipment from Pharos Project tenements
Importantly, the new agreement provides Scorpion with strategic exposure to a consolidated mid-west iron ore producer and a
clear pathway to extract maximum value from future iron ore exploration and development success at Pharos.
This upfront portion of this transaction was completed with Fenix issuing 4M shares to SCN on 10th March 2022.
Pharos Project Planned Exploration Activities
The Company is now in receipt of detailed aeromagnetic imagery for the complete project area (refer Figure 4 base image),
which vastly improves understanding on certain mineralisation controls in the area and allows for improved targeting and drill
planning. This is in addition to the now received high-resolution aerial photography, recently flown over the area. The
Company intends to use both datasets heavily as it targets additional commodities across its tenure.
The following advanced exploration activities are planned:
1.
2.
3.
4.
5.
RC drill follow up Pharos gold targets
RC drill test of Pallas Ni-Cu-PGE target
RC drill test of Poona lithium targets
RC pre-collaring of diamond holes- Mt Mulcahy
Diamond tail drilling at Mt Mulcahy
For additional background on Pharos Project information please refer to the below ASX releases:
25/06/2020
09/07/2020
13/08/2020
31/08/2020
28/09/2020
08/10/2020
02/11/2020
24/11/2020
08/02/2021
08/04 2021
28/04/2021
16/06/2021
23/06/2021
13/07/2021
21/07/2021
12/08/2021
23/08/2021
20/10/2021
6/12/2021
8/2/2022
11/2/2022
14/2/2022
2/3/2022
“Pharos Project Exploration Update”
“High Grade Gold Rock Chips - Pharos Project”
“Drilling to Commence – Pharos Project”
“Commencement of Drilling - Pharos Project”
“High Grade Gold Confirmed at Lantern - Pharos Project”
“Phase 2 RC Drilling Commenced- Pharos Project”
“Priority PGE Ni-Cu Targets – Pharos Tenement”
‘Further High-Grade Gold Results – Pharos Project”
“Term Sheet – Iron Ore Rights at Pharos”
“PGE-Ni-Cu Targets Identified at Pharos Project”
“Fenix Iron Ore JV Update – Pharos”
“Pallas PGE-Ni-Cu Target – Pharos”
“Multiple Commodity Targets Identified at Pharos”
“Fenix Iron Ore JV and Pallas PGE Target Exploration Update”
“Iron Ore Targets Advanced and Drilling Expedited – Fenix JV”
“RC Drilling Commences at Pharos Gold Targets”
“Completion of Drilling at Pharos Gold Targets”
“New Shallow High-Grade Gold Zone Confirmed at Cap Lamp”
“Scorpion increase Murchison Footprint”
“Scorpion Accelerates Pharos Iron Ore Agreement with Fenix Resources”
“Poona Tech Review Highlights Multiple PGE-Ni-Cu & Au Targets”
“Multiple Lithium Targets Identified at Pharos Project”
“Pharos Lithium Corridor Extended to 50km”
9
MT MULCAHY COPPER PROJECT Murchison, WA
Geology Discussion
The Mt Mulcahy Project in Western Australia (refer Figures 1 and 2) hosts the Mount Mulcahy copper-zinc deposit, a volcanic-
hosted massive sulphide (VMS) zone of mineralisation with a JORC 2012 Measured, Indicated and Inferred Resource of
647,000 tonnes @ 2.4% copper, 1.8% zinc, 0.1% cobalt and 20g/t Ag (refer PUN:ASX release 25 September 2014 and
Table 1) at the ‘South Limb Pod’ (SLP). The tenement containing the SLP is now in its third year of grant (refer ASX:SCN “Mt
Mulcahy Exploration Licence Granted, 16 September 2019”). The Company noted the following highlights in that release:
Contained metal at the SLP resource of:
33.5M pounds (15,200 tonnes) of Cu,
26.3M pounds (11,800 tonnes) of Zn,
1.35M pounds (600 tonnes) of Co,
415,000 ounces of Ag, and
5000 ounces of Au
87% of tonnes & 91% of Cu, Zn and Ag metal content classified Measured + Indicated.
Significant intercepts from the historic drilling at SLP include:
6.8m @ 4.9% Cu, 3.7% Zn, 0.16%Co, 39g/t Ag, and 0.19g/t Au
10.2m @ 4.5% Cu, 4.0% Zn, 0.17%Co, 33g/t Ag, and 0.18g/t Au
12.4m @ 3.1% Cu, 2.3% Zn, 0.10%Co, 28g/t Ag, and 0.21g/t Au
11.3m @ 4.9% Cu, 4.2% Zn, 0.16%Co, 44g/t Ag, and 0.57g/t Au
The folded horizon hosting the SLP VMS mineralisation forms a regional keel, where the surface expression can be traced for
a distance of at least 12km along strike and excellent potential exists for additional mineralisation to be discovered along this
prospective horizon. Twenty untested targets have been identified along strike of this horizon using a combination of VTEM
and soil geochemistry. These targets have characteristics similar to the SLP and are considered prospective for VMS base
metal accumulations. The Company maintains plans for extensional diamond holes targeting down dip and plunge of the
current resource.
Gold targets within E20/931 are continually being evaluated in conjunction with the base metal prospectivity. A north-south
trending Big Bell Shear splay is interpreted to pass through the western side of the licence area and auger soil geochemistry
is planned to test for targets to be followed by RC drill testing of any anomalies defined by the programme. No active field
work was undertaken during the half-year, although the Company has completed heritage clearance for access and an area
clearance for planned RC pre-collar and subsequent diamond tail drilling late in the half-year.
Table 1: Current Mineral Resource Estimate, Mt Mulcahy Project
(refer ASX release 25/9/2014 “Maiden Copper - Zinc Resource at Mt Mulcahy”, which also contains a list of significant drill intersections for the deposit, listed within that
report at Table 2)
Mt Mulcahy South Limb Pod Mineral Resource Estimate
Grade
Contained Metal
Tonnes
193,000
372,000
82,000
647,000
Cu (%)
Zn (%) Co (%)
Ag (g/t)
Au (g/t)
3.0
2.2
1.5
2.4
2.3
1.7
1.3
1.8
0.1
0.1
0.1
0.1
25
19
13
20
0.3
0.2
0.2
0.2
Cu (t)
5,800
8,200
1,200
Zn (t)
4,400
6,300
1,100
15,200
11,800
Co (t)
220
330
60
610
Ag (oz)
157,000
223,000
35,000
Au (oz)
2,000
2,000
415,000
4,000
Resource
Category
Measured
Indicated
Inferred
TOTAL
10
Figure 2 – Scorpion Minerals Limited 100% owned Pharos Project, highlighting major tenure holders early 2022
11
Figure 3 – Scorpion Minerals Limited 100% owned Pharos Project,
overlain on regional geology, highlighting named prospects
12
Figure 4 – Poona and Jacksons Reward Prospect Areas and Targets
13
Figure 5 – Sn Regional Geochemistry (Combined Soil, Rock and Stream) relative to interpreted zone of Pegmatite Emplacement
14
Figure 6 – Li2O and Au Geochemistry, Poona setting
15
Figure 7 – Tantalite (Ta2O5 + Nb2O5) Geochemistry, Poona setting
16
Figure 8 – Significant Li2O Drilling Results, with target pegmatite emplacement zone highlighted, Poona setting
17
Figure 9 – Jackson’s Reward regional setting, with historically logged spodumene in-hand-specimen highlighted
18
Figure 10 – Sn Geochemistry, Jackson’s Reward setting
19
Figure 11 – Tantalite (Ta2O5 + Nb2O5) Geochemistry, Jackson’s Reward setting
20
Figure 12 – Ni Geochemistry, Poona Area
21
Figure 13 – Pd + Pt and Au Geochemistry
22
Figure 14– Significant Drilling Results - Base Metal and PGE
23
Figure 15 – Perses Cross Section 7 000 450 mN
24
Figure 16 – 2021 RC Drilling Highlights Location Plan, north of Mt Mulcahy, overlain on newly acquired RTP magnetic imagery, refer Figure 3 for image location
25
Figure 17 – Cap Lamp RC Drill plan, highlighting Cap Lamp Extension target zone in magenta
26
Figure 18 – Cap Lamp Cross Section 7014120mN
27
Figure 19 – Cap Lamp Cross Section 7014100mN
28
Figure 20 – Cap Lamp conceptual stacked sections, highlighting high-grade target in ground awaiting heritage survey prior to drilling
29
Figure 21 – Summary of Pharos Project Commodity Targets, highlighting area of available Open File/Multi Client Magnetics to be reprocessed
30
Figure 22 – Location of Fenix Mine and FEX-SCN JV Iron Ore Target Areas, highlighting position of Ulysses and Iron Ridge Extension Prospects – Pharos Project
31
Figure 23 – Interpreted iron formation, historic drilling and significant gold intervals – Ulysses Prospect. No iron assays and outcrop very rarely apparent.
Iron and gold mineralisation east of Section Line ineffectively tested by shallow drilling
32
Figure 24 – Ulysses Cross Section from Figure 11, highlighting oxide iron target and related gold mineralisation from historic drilling
33
Competent Persons Statement 1
The information in this report that relates to the Exploration Results and Mineral Resources at the Mt Mulcahy and Pharos Projects is based on
information reviewed by Mr Craig Hall, whom is a member of the Australian Institute of Geoscientists. Mr Hall is a director and consultant to Scorpion
Minerals Limited and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the
activity he is undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code 2012)’. Mr Hall consents to the inclusion of the information in the form and context in which it
appears.
Competent Persons Statement 2
The information in this report that relates to the Mt Mulcahy Mineral Resource is based on information originally compiled by Mr Rob Spiers, an
independent consultant to Scorpion Minerals Limited and a then full-time employee and Director of H&S Consultants Pty Ltd (formerly Hellman &
Schofield Pty Ltd), and reviewed by Mr Hall. This information was originally issued in the Company’s ASX announcement “Maiden Copper-Zinc
Resource at Mt Mulcahy”, released to the ASX on 25th September 2014. The Company confirms that it is not aware of any new information or data that
materially affects the information included in the original market announcements. The company confirms that the form and context in which the findings
are presented have not materially modified from the original market announcements.
Forward Looking Statements
Scorpion Minerals Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is
made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the
maximum extent permitted by law, none of Scorpion Minerals Limited, its Directors, employees or agents, advisers, nor any other person accepts any
liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from
the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other
recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the
basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors
associated with exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but
they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially,
including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market,
industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various
countries and regions, political risks, project delay or advancement, approvals and cost estimate.
Corporate
Appointment of Obsidian Metals Group and Airguide as Strategic Technical Advisors
Scorpion announced in April 2022 that it had reached an agreement with independent technical consulting group Obsidian
Metals Group Pty Ltd (“OMG”) to provide technical services to Scorpion with industry lithium expert Michael Fotios acting as
lead consultant to OMG. Mr Fotios’ experience in the lithium sector is well recognised, as he was a founder and former
Managing Director of both Galaxy Resources Ltd and General Mining Corporation Ltd, which now form part of the newly
merged entity Allkem, the fifth largest lithium producer internationally with a market capitalisation of $8.14 billion.
Under the terms of the Agreement OMG will receive a monthly retainer of $10,000 plus GST and will also be entitled to
receive the following success-based share incentive payments the issue of which are subject to receiving the required
regulatory and shareholder approvals:
1.
2.
3.
4.
5.
6.
For project generation and introduction of project opportunity “Poona Project” - an issue of 5,000,000 fully paid
shares in Scorpion
Acquisition of second project introduced by OMG - 10,000,000 options exercisable at 12c within 24 months of
vesting
Acquisition of third project introduced by OMG - 10,000,000 options exercisable at 12c within 24 months of vesting
Resource Definition Milestone 1 - 10,000,000mt Li2O or equivalent on any one project – 20,000,000
options exercisable at 12c within 24 months of vesting
Resource Definition Milestone 2 - 20,000,000mt Li2O or equivalent on any one project – 20,000,000
options exercisable at 12c within 24 months of vesting
Resource Definition Milestone 3 - 50,000,000mt Li2O or equivalent across all projects – 40,000,000
options exercisable at 12c within 24 months of vesting
Scorpion also announced the appointment of Airguide Advisory Pte. Ltd. (“Airguide”), the consulting arm of Airguide
International Pte. Ltd., as its strategic advisor in June 2022. The appointment of Airguide was made to support the
Company’s near-term exploration strategy and to assist with introducing potential strategic partnerships to advance
Scorpion’s lithium assets in Western Australia.
34
Airguide’s principals have over 25 years’ experience in financial markets and the commodities sector. The Airguide Group
provides strategic advice and facilitation services for commodity-related companies in addition to direct corporate debt
funding. Airguide has a proven reach globally, and in Asia-Pacific specifically, that opens doors to conversations for clients
with groups interested in investment funding, off-take partnerships, and opportunities in commodities broadly. Several of
Airguide’s advisory partnerships have resulted in the funding and expansion of projects in the lithium sector.
Board Movements
During the year in focus, Ms Bronwyn Barnes transitioned to the role of Executive Chairman with effect from 13 April 2022,
leading Scorpion’s corporate activities with a focus on negotiation of project acquisitions.
Mr Michael Kitney was appointed as a Non-Executive Director of the Company on 7 June 2022. Mr Kitney is an
internationally experienced extractive metallurgist with more than 40 years’ experience in resource evaluation and project
development roles in Australia and internationally. He holds a Master of Science (Mineral Economics) degree from the WA
School of Mines and is a member of the Australian Institute of Company Directors.
Mr Kitney is currently an Executive Director providing technical direction to Mn Energy Limited on process development for
battery grade manganese sulphate production and has contributed to project development and construction throughout
Africa, SE Asia, the CIS and Australia. He also holds non-executive director positions with Breaker Resources NL
(ASX:BRB) and Monument Mining Limited (TSX:MMY).
From 2010 to early 2017 he held the role of COO for Kasbah Resources Limited, responsible for all aspects of resource
development, metallurgical development, project feasibility and stakeholder engagement for the Achmmach Tin Project in
Morocco. Recently he was Chief Metallurgist for lithium developer Prospect Resources Limited (ASX:PSC).
Non-Executive Director Craig Hall resigned from the Board on 7 June 2022.
Fiscal Year 2022 Capital Raisings
On 13 April 2022, Scorpion advised that it had raised $3,178,575 (before costs) via a placement of 62,325,000 shares,
using its capacity under ASX Listing Rules 7.1 and 7.1A. The funds raised will be used to support planned drilling and
geophysics programmes across the Company’s 1,544 km² Pharos Project and for additional working capital. Further details
on the capital raising are available in the ASX announcement dated 13 April 2022.
In July 2021, Scorpion received firm commitments from new and existing sophisticated investors to raise $902,250 before
costs (“placement”). In addition, the Company agreed to a drill for equity arrangement to a value of $112,500 and the lender
has elected to convert a portion of outstanding debt to equity to a value of $270,000. The total value of these
financial commitments was $1,284,750.
FINANCIAL RESULTS FOR THE PERIOD
The operating loss after income tax of the Group for the year ended 30 June 2022 was $943,545 (2021: loss of
$2,236,709).
SHAREHOLDER RETURNS
Basic and diluted loss per share (cents)
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
2022
(0.33)
2021
(0.98)
The Company is not aware of any other matter or circumstance that has arisen since the end of the reporting period which
significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of
affairs in future financial years.
COVID-19
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential future
impact after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
35
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Directors are not aware of any likely developments in the operations of the Group and the expected results of those operations that
may have a material effect in subsequent years that are not already disclosed. Comments on certain operations of
the Group are included in this annual report under the operating and financial review on activities on page 4.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group’s operations are subject to environmental regulation in respect to its mineral tenements relating to exploration
activities on those tenements. No breaches of any environmental restrictions were recorded during the financial year. The
Group has not yet fully reviewed the reporting requirements under the Energy Efficient Opportunities Act 2006 or the
National Greenhouse and Energy Reporting Act 2007, but believes it has adequate systems in place to ensure compliance
with these Acts having regard to the scale and nature of current operations.
CORPORATE GOVERNANCE
The Company has reviewed its corporate governance practices against the Corporate Governance Principles and
Recommendations (4th Edition) as published by the ASX Corporate Governance Council.
The 2022 Corporate Governance Statement is dated as at 30 June 2022 and reflects the corporate governance practices in
place throughout the 2022 financial year. A copy of the Company’s 2022 Corporate Governance Statement can be
accessed at the Company’s website.
REMUNERATION REPORT (AUDITED)
Directors and Key Management Personnel disclosed in this report (see page 3 for details about each Director). During the
financial year there were no Key Management Personnel other than the Directors.
Name
Bronwyn Barnes
Kate Stoney
Craig Hall
Michael Kitney
Position
Non-Executive Director
Non-Executive Director and Company Secretary
Non-Executive Director resigned 7 June 2022
Non-Executive Director appointed 7 June 2022
The information provided in this Remuneration Report has been audited as required under Section 308 (3C) of the
Corporations Act 2001.
Assessing performance and claw-back of remuneration
The Board of Directors of the Company is responsible for determining and reviewing compensation arrangements for the
Directors, the CEO and the executive team. The Board’s policy for determining the nature and amount of remuneration for
Board members and senior Executives of the Group (if any) is as follows:
Remuneration Policies for Non-Executive Directors
The Board will adopt remuneration policies for Non-Executive Directors (including fees, travel and other benefits). In
adopting such policies, the Board will take into account the following guidelines:
Non-Executive Directors should be remunerated by way of fees – in the form of cash, non-cash benefits or
superannuation contributions;
Non-Executive Directors should not participate in schemes designed for remuneration of executives;
Non-Executive Directors should not receive bonus payments;
Non-Executive Directors should not be provided with retirement benefits other than statutory superannuation.
The maximum aggregate annual remuneration is approved by shareholders.
The maximum aggregate amount of fees that can be paid to Non-Executive Directors is currently $200,000 which was
approved at a General Meeting held on 22 January 2008. Fees for Non-Executive Directors are not linked to the
performance of the Group. However, to align Directors’ interests with shareholder interests, the Directors are encouraged to
hold shares in the Group and are able to participate in employee option plans.
36
Remuneration Policies for Executive Directors and Executive Management
The Board will adopt remuneration policies for Executive Directors and Executive Management, including:
Fixed annual remuneration (including superannuation) and short term and long-term incentive awards (including
performance targets);
Any termination payments (which are to be agreed in advance and include provisions in case of early termination);
and
Offers of equity under Board approved employee equity plans. Any issue of Company shares or options (if any)
made to Executive Directors are to be placed before shareholders for approval.
The Board’s objectives are that the remuneration policies:
Motivate Executive Directors and Executive Management to pursue the long-term growth and success of the
Company;
Demonstrate a clear relationship between performance and remuneration; and
Involve an appropriate balance between fixed and incentive remuneration, to reflect the short and long-term
performance objectives appropriate to the Company’s circumstances and goals.
Performance based remuneration
There was no performance-based remuneration paid to Directors during the financial year. Based upon the present stage
of development of the Company, performance-based remuneration is not considered appropriate.
Group performance, shareholder wealth and Directors' and executives' remuneration
The remuneration policy has been tailored to increase the direct positive relationship between shareholders’ investment
objectives and Directors and Executives’ performance. Currently, this is facilitated through the issue of options to
Executives to encourage the alignment of personal and shareholder interests. No market-based performance remuneration
has been paid in the current year.
Voting and comments made at the Group’s 2021 Annual General Meeting
At the Group’s 2021 Annual General Meeting, the Company’s Remuneration Report was passed by way of a poll. The
Board remains confident that the Group’s remuneration policy and the level and structure of its executive remuneration are
suitable for the Company and its shareholders and hence it has not amended its overall remuneration policy.
Details of remuneration
The amount of remuneration of the Directors (as defined in AASB 124 Related Party Disclosures) is set out below. During
the financial year there were no Key Management Personnel other than the Directors.
Short-Term
Salary & Fees
$
Post-Employment
Superannuation
$
Share-based
Payments
Options
$
Directors
Bronwyn Barnes
2022
2021
Craig Hall (resigned 7 June 2022)
2022
2021
Kate Stoney
2022
2021
Michael Kitney (appointed 7 June 2022)
2022
Total Key Management Personnel compensation
115,014
30,000
2,559
-
25,636
30,000
49,000
29,250
2,800
-
-
-
-
-
Total
$
222,773
61,850
130,836
61,850
177,352
29,250
105,200
31,850
105,200
31,850
128,352
-
-
2,800
2022
2021
192,450
119,250
2,559
-
338,752
95,550
533,761
214,800
As at 30 June 2022 no amounts to directors remain unpaid.
37
There are no cash bonuses or non-monetary benefits relating to any of the Directors and Key Management Personnel
during the year.
Shareholdings of Key Management Personnel
Balance
1 July 2021
Granted as
remuneration
On exercise of
options
Net change
Other
Balance
30 June 22
Bronwyn Barnes
17,868,250
17,868,250
-
-
-
-
-
-
17,868,250
17,868,250
Option holdings of Key Management Personnel
Bronwyn Barnes
Craig Hall
Kate Stoney
Michael Kitney
Balance
1 July 2021
11,486,845
1,750,000
-
-
13,236,845
Granted as
remuneration
2,000,000
2,000,000
3,000,000
-
7,000,000
Expired
On exercising of
options
Balance
30 June 22
(9,736,845)
-
-
-
(9,736,845)
-
-
-
-
-
3,750,000
3,750,000
3,000,000
-
10,500,000
Service agreements
As at the date of this report there are no executives or Key Management Personnel, other than the Directors, engaged by
the Company. Formal appointment letters are in place with Non-Executive Directors, each of which is entitled to a fee of
$42,000 per annum effective from 1 June 2022. There are no termination payments payable.
The Board has determined that should a Non-Executive Director incur or be asked to incur excessive time in assisting the
Company on specific matters, the Non-Executive Director is entitled to charge the Company for this additional time. The
Board has also agreed that payments to Non-Executive Directors for the provision of such services shall be on reasonable
commercial terms.
Share-based compensation
Options granted to Directors’ and Officers of the Company
On 24 November 2021 the Company approved the issue of 1,000,000 unlisted appointment options to Ms Kate Stoney with
a strike price of $0.12. These options have a three year expiry being 25 November 2024.
On 24 November 2021 the Company approved the issue of incentive options to Directors options under the Employee
Option Plan. Ms Barnes, Ms Kate Stoney and Mr Hall were each issued 2,000,000 unlisted options with a strike price of
$0.00. These options will vest and become exercisable upon the Company’s shares reaching a volume-weighted average
price which is equal or greater than $0.14 per share calculated over 5 consecutive ASX trading days. These options have a
three year expiry being 25 November 2024.
Additional information
The table below sets out information about the Group’s earnings and movements in shareholder wealth of the periods since
listing:
30 June 22
30 June 21
30 June 20
30 June 19
$
30 June 18
$
Revenue
Net (loss)/profit before tax
Share price at year-end
(943,545)
0.071
-
(2,236,709)
0.061
-
(818,849)
0.045
-
(2,644,232)
0.004
-
(294,916)
0.024
There were no remuneration consultants engaged by the Group during the financial year.
This is the end of the audited remuneration report.
38
DIRECTORS’ MEETINGS
Given the size and nature of the Company, the Non-Executive Directors meet frequently at a management level. These
meetings are not recorded as board meetings. During the year the Group held four Board meetings. Board decisions were
also undertaken via circular resolutions signed by all Directors entitled to vote.
Director
Bronwyn Barnes
Craig Hall
Kate Stoney
Michael Kitney
Eligible to Attend
4
4
4
-
Attended
4
4
4
-
SHARES UNDER OPTION
The table below represents the movement of options from 1 of July 2021 and to the date of this report:
Balance at 1 July 2021
Movements of share options during the year
5 Jul 2021: exercise of $0.10 loan conversion options issued 18 Oct 2018
15 Sep 2021: issue of $0.00 ESOP employee options expiring 15 Sep 2023
15 Sep 2021: issue of $0.00 ESOP employee options expiring 15 Sep 2024
15 Sep 2021: issue of $0.00 ESOP employee options expiring 15 Sep 2025
18 Oct 2021: expiry of $0.10 director options issued 18 Oct 2018
18 Oct 2021: expiry of $0.10 loan conversion options issued 18 Oct 2018
26 Oct 2021: expiry of $0.10 lead manager options issued 26 Oct 2018
25 Nov 2021: issue of $0.12 director options expiring 25 Nov 2024
25 Nov 2021: issue of $0.00 ESOP director options expiring 25 Nov 2024
22 Apr 2022: issue of $0.00 ESOP employee options expiring 22 Apr 2024
22 Apr 2022: issue of $0.00 ESOP employee options expiring 22 Apr 2025
22 Apr 2022: issue of $0.00 ESOP employee options expiring 22 Apr 2026
Total number of options outstanding as at the date of this report
Number of options
40,375,000
(2,250,000)
1,375,000
1,375,000
1,375,000
(15,000,000)
(3,750,000)
(500,000)
1,000,000
6,000,000
750,000
750,000
750,000
32,250,000
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf
of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility
on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of
the Corporations Act 2001.
INSURANCE OF DIRECTORS AND OFFICERS
The Company entered into a Directors and Officer’s liability insurance policy for a 12-month period commencing 7 February
2022 for a total premium of $26,009.50 (30 June 2021: $19,500.00).
The Company has entered into Deeds of Access, Insurance and Indemnity with each of the Directors and Officers of the
Company. Under the Deeds of Access, Insurance and Indemnity, the Company will indemnify those Officers against any
claim or for any expenses or costs which may arise as a result of work performed in their respective capacities as Directors
and Officers of the Company or any related entities.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Group are important.
39
The Board of Directors would consider the position that the provision of the non-audit services is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision
of non-audit services by the auditors, would not compromise the auditors’ independence requirements of the Corporations
Act 2001 for the following reasons:
all non-audit services would be reviewed to ensure they do not impact the impartiality and objectivity of the auditor;
and
none of the services undermine the general principles relating to auditor independence as set out in APES 11- Code
of Ethics for Professional Accountants.
Non-audit services provided relate to tax compliance services and are not considered to impair auditor independence.
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 on
age 64
Signed in accordance with a resolution of the Directors, and on behalf of the Board by,
Bronwyn Barnes
Director
Perth, Western Australia
30 September 2022
40
AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
CORPORATIONS ACT 2001
As lead auditor of the audit of Scorpion Minerals Limited for the year ended 30 June 2022, I
declare that, to the best of my knowledge and belief, there have been:
no contraventions of the auditor independence requirements of the Corporations Act
2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
This declaration is in respect of Scorpion Minerals Limited and the entities it controlled
during the year.
Rothsay Audit & Assurance Pty Ltd
Daniel Dalla
Director
30 September 2022
41
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
REVENUE
Sale of mineral rights
Other income
Director fees
Director share based payments
Exploration expenses
Occupancy expenses
Share based payments
Other expenses
Operating loss
Finance income
Finance costs
Finance costs - net
Loss before income tax
Income tax benefit/(expense)
Loss after income tax for the year
Notes
2022
$
960,000
270
2021
$
-
-
(195,009)
(91,250)
23
(338,752)
-
(712,120)
(1,138,462)
(36,000)
(36,000)
(307,402)
(416,516)
(539,417)
(464,937)
(1,168,430)
(2,147,165)
23
2
3
300,690
-
(75,805)
(89,544)
224,885
(89,544)
(943,545)
(2,236,709)
4
-
-
(943,545)
(2,236,709)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF
SCORPION MINERALS LIMITED
(943,545)
(2,236,709)
12
(943,545)
(2,236,709)
Loss per share for loss attributable to ordinary equity holders of the Group:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
14
14
(0.33)
(N/A)
(0.98)
N/A
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read
in conjunction with the Notes to the Consolidated Financial Statements.
42
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION AS AT 30 JUNE 2022
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through other comprehensive income
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Capitalised exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
Notes
2022
$
2021
$
5
6
7
2,102,432
167,879
1,260,000
133,873
133,756
-
3,530,311
267,629
8
2,060,027
2,060,027
2,060,027
2,060,027
5,590,338
2,327,656
9
10
(707,515)
(1,394,095)
(1,196,682)
(1,281,133)
(1,904,197)
(2,675,228)
(1,904,197)
(2,675,228)
NET ASSETS / (LIABILITY)
3,686,141
(347,572)
EQUITY
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY
11
12
13
27,302,319
22,874,964
(24,585,598)
(23,801,988)
969,420
579,452
3,686,141
(347,572)
The above Consolidated Statement of Financial Position should be read
in conjunction with the Notes to the Consolidated Financial Statements.
43
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED
Balance 30 June 2021
Note
Contributed
Equity
Accumulated
Losses
Total
Equity
Share-
based
Payments
Reserve
22,874,964
(23,801,988)
579,452
(347,572)
Loss for the-year
12
Total comprehensive loss for the year
-
-
(943,545)
(943,545)
-
-
(943,545)
(943,545)
Transactions with owners in their capacity
as owners
Shares issued during the year
Options issued during the year
Expiry of options
Exercise of options
Capital raising costs
Balance 30 June 2022
CONSOLIDATED
Balance 30 June 2020
11
4,368,325
-
-
321,250
(262,220)
-
-
-
4,368,325
646,153
646,153
159,935
(159,935)
-
-
-
(96,250)
225,000
-
(262,220)
27,302,319
(24,585,598)
969,420
3,686,141
Note
Contributed
Equity
Accumulated
Losses
Total
Equity
Share-
based
Payments
Reserve
20,234,964
(21,866,636)
464,293
(1,167,379)
Loss for the-year
12
Total comprehensive loss for the year
-
-
(2,236,709)
(2,236,709)
-
-
(2,236,709)
(2,236,709)
Transactions with owners in their capacity
as owners
Shares issued during the year
Options issued during the year
Transfer on exercise/lapse of options
11
2,640,000
-
-
-
-
-
2,640,000
416,516
416,516
301,357
(301,357)
-
Balance 30 June 2021
22,874,964
(23,801,988)
579,452
(347,572)
The above Consolidated Statement of Changes in Equity should be read
in conjunction with the Notes to the Consolidated Financial Statements.
44
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration
Interest paid
Notes
2022
$
2021
$
(1,314,562)
(225,355)
(712,120)
(1,139,712)
436
(20,347)
Net cash outflow from operating activities
2
(2,026,246)
(1,385,414)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash inflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of shares (less capital-raising costs)
11
Proceeds (repayment) from borrowings
Net cash inflow from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
5
-
-
4,044,805
(50,000)
3,994,805
1,968,559
133,873
2,102,432
1,440,000
(87,918)
1,352,082
(33,332)
167,205
133,873
The above Consolidated Statement of Cash Flows should be read
in conjunction with the Notes to the Consolidated Financial Statements
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies adopted in the preparation of the financial information included in this report have been
set out below.
Basis of preparation of historical financial information
a)
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Boards, Australian Accounting Interpretations
and the Corporations Act 2001. These financial statements have been prepared on a historical cost basis. Scorpion
Minerals Limited is a for-profit entity for the purpose of preparing financial statements.
The financial report complies with Australian Accounting Standards which include International Financial Reporting
Standards as adopted in Australia. Compliance with these standards ensure that the consolidated financial statements and
notes as presented comply with International Financial Reporting Standards (IFRS).
Going Concern
The Group incurred a loss before tax of $943,545 (2021: loss of $2,236,709) and incurred cash outflows from operating
activities of $2,026,246 (2021: $1,385,414) for the year ended 30 June 2022. At that date the Group had a working capital
surplus of $1,626,114 (2021 deficit: $2,407,599) and net assets of $3,686,141 (2021 net liabilities of: $347,572). This
included current liabilities of $707,515 (trade and other payables), and $1,196,682 (borrowings).
From the $687,515 in trade and other payables outstanding at year end $437,339 are owed to related parties, $185,550
relates to Companies in Liquidation, and $64,626 are owed to external creditors. With $41,511 being overdue or outside
agreed payment terms.
From the $1,196,682 in borrowings outstanding at year end, $504,870 is owed to related parties and $691,812 is owed to
Helios Corporation Pty Ltd, Investmet Limited and Whitestone Mining Pty Ltd, who are all currently in liquidation.
At 30 September 2022, the Group had a cash balance of $1,406,176.
The Directors believe that there are sufficient funds available to continue to meet the Group’s working capital requirements
as at the date of this report. The financial statements have been prepared on the basis that the Group is a going concern,
which contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the normal
course of business for the following reasons:
The Company has executed a loan facility agreement with associated entities. The loan facility with associated
entities is to be repaid in cash within 7 days of the successful completion of a capital raising. Prior to a capital
raising, any lender may convert all or some of the outstanding balance of the loan in ordinary shares at the price at
which the capital raising is to be completed. Conversion of the loan to ordinary shares is subject to compliance with
the applicable laws and regulations including the requirement to seek shareholder approval for a related party
transaction. The loan bears interest of 8% p.a. The undrawn loan balance available to the Company as at 30 June
2022 from related entities amounts to $1,325,000.
In addition, the current lenders (excluding Investmet Limited who are currently in Liquidation) have confirmed
unconditionally that they will not call on or demand any repayment of the advances made to the Company up to 31
December 2022 or until such time as the Group’s financial position improves.
The Company expects to raise additional funds through the Equity market.
The Directors have also prepared a cash flow forecast that further indicates the Company’s ability to continue to
operate as a going concern. This assumes the ability to continue to defer payment of creditors and for the directors
to continue to defer payment of fees or accept part of their fees in shares.
In the Directors’ opinion, at the date of signing the financial report there are reasonable grounds to believe that the matters
set out above will be achieved and have therefore prepared the financial statements on a going concern basis.
Should the Directors not achieve the matters set out above, there is material uncertainty whether the Group will be able to
continue as a going concern. The financial report does not include any adjustments relating to the recoverability or
classification of recorded asset amounts, or to the amounts or classification of liabilities, which might be necessary should
the Group not be able to continue as a going concern.
46
Revenue Recognition
b)
Interest
Revenue is recognised as interest accrues using the effective interest method. This method uses the effective interest rate
which is the rate that exactly discounts the estimated future cash receipt over the expected life of the financial asset.
Income Tax
c)
The income tax expense for the period is the tax payable on the current period’s taxable income based on the notional
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences between the tax base of assets and liabilities and their carrying amounts in the financial statements, and to
unused tax losses.
Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and
liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets
are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction.
Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a
transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or
taxable profit. Deferred tax assets are only recognised for deductible temporary differences and unused tax loses if it is
probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and
deferred tax balances relating to amounts recognised directly in equity are also recognised directly in equity.
Impairment of Assets
d)
At each reporting date, the Group assesses whether there is any indication that individual assets are impaired. Where
impairment indicators exist, the recoverable amount is determined and impairment losses are recognised in Profit or Loss
where the asset’s carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use.
For the purpose of assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where it is not possible to estimate recoverable amount for an individual asset, recoverable amount is determined for the
cash-generating unit to which the asset belongs.
Cash and Cash Equivalents
e)
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term highly
liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement
of financial position.
Fair value estimation
f)
Fair values may be used for financial asset and liability measurement and well as for sundry disclosures.
The fair value of trade receivables and payables is their normal value less estimated credit adjustments due to their short-
term nature.
Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the
initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured
at either amortised cost or fair value depending on their classification. Classification is determined based on both the
business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless
an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, it's carrying value is written off.
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where
47
they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii)
designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance
depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial
instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information
that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected
credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable
to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it
is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit
losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of
anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is
recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss
allowance reduces the asset's carrying value with a corresponding expense through profit or loss.
Borrowing costs
g)
Borrowing costs are capitalised that are directly attributable to the acquisition, construction or production of qualifying assets
where the borrowing cost is added to the cost of those assets until such time as the assets are substantially ready for their
intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or
loss in the period in which they are incurred.
Trade and other payables
h)
Trade and other payables represent liabilities for goods and services provided to the Group prior to the year end and which
are unpaid. These amounts are unsecured and have 30-60 days payment terms. They are recognised initially at fair value
and subsequently at amortised cost.
Employee Benefits
i)
Wages and Salaries, Annual Leave and Sick Leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to
be settled within 12 months of statement of financial position date are recognised in respect of employees’ services
rendered up to reporting date and measured at amounts expected to be paid when the liabilities are settled.
Liabilities for non-accumulating sick leave are recognised when leave is taken and measured at the actual rates paid or
payable. Liabilities for wages and salaries are included as part of Other Payables and liabilities for annual and sick leave
are included as part of Employee Benefits Provisions.
Long Service Leave
Liabilities for long service leave are recognised as part of the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees to the statement of financial
position date using the projected future projected unit credit method. Consideration is given to expected future salaries and
wages levels, experience of employee departures and periods of service. Expected future payments are discounted using
national government bond rates at reporting date with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Retirement Benefit Obligations
The Group does not have a defined contribution superannuation fund. All employees of the Group are entitled to receive a
superannuation guarantee contribution required by the government which was 10% for the year ended 30 June 2022.
48
Exploration and evaluation expenditure
j)
Exploration and evaluation expenditure encompass expenditures incurred by the Group in connection with the exploration
for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral
resource are demonstrable.
Exploration and evaluation expenditure incurred by the Group is accumulated for each area of interest and recorded as an
asset if:
1)
2)
the right to tenure of the area of interest are current; and
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 exploitation of the area of interest, or alternatively, by its sale; and
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. Exploration and
evaluation incurred by the Group are expensed in the year they are incurred.
b)
For each area of interest, expenditure incurred in the acquisition of rights to explore is capitalised, classified as tangible or
intangible, and recognised as an exploration and evaluation asset. Exploration and evaluation assets are measured at cost
at recognition. Exploration and evaluation incurred by the Group subsequent to acquisition of the rights to explore is
expensed as incurred. During the financial year, no amounts have been capitalised, as the relevant tenement was in the
process of being renewed, and all expenditure was recorded in Profit and Loss.
The recoverable amount of each area of interest is determined on a bi-annual basis and the provision recorded in respect of
that area adjusted so that the net carrying amount does not exceed the recoverable amount. For areas of interest that are
not considered to have any commercial value, or where exploration rights are no longer current, the capitalised amounts are
written off against the provision and any remaining amounts are charged to profit or loss. Recoverability of the carrying
amount of the exploration and evaluation assets is dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of interest.
Contributed Equity
k)
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.
Goods and Services Tax
l)
Revenues, expenses and assets are recognised net of GST except where GST incurred on a purchase of goods and
services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition
of the asset or as part of the expense item. Receivables and payables are stated with the amount of GST included. The net
amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from
investing and financial activities, which are recoverable from, or payable to, the taxation authority, are classified as
operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
Leases
m)
All leases other than short term leases and low value leases will be recognised on the balance sheet. The standard will see
all leases, held by a lessee, record obligations as a liability and a corresponding right of use asset, both current and non-
current, for the term of the lease.
It has been determined that there is no material impact of the new and revised Standards and Interpretations on the
financial position or performance of the Group.
Provisions
n)
Provisions for legal claims are recognised when the Group has a legal or constructive obligation as a result of past events. It
is probable that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is
49
recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of management best estimate of the expenditure required to settle the
present obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as interest expense.
Share based payments
o)
The Group provides benefits to employees (including Directors) of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or options over shares (“equity-settled
transactions”).
The fair value of options is recognised as an expense with a corresponding increase in equity (share-based payments
reserve). The fair value is measured at grant date and recognised over the period during which the holder becomes
unconditionally entitled to the options. Fair value is determined using a Black-Scholes option pricing model. In determining
fair value, no account is taken of any performance conditions other than those related to the share price of Scorpion
Minerals Limited (“market conditions”).
The cumulative expense recognised between grant date and vesting date is adjusted to reflect the director’s best estimate
of the number of options that will ultimately vest because of internal conditions of the options, such as the employees having
to remain with the Group until vesting date, or such that employees are required to meet internal sales targets. No expense
is recognised for options that do not ultimately vest because a market condition was not met. Where the terms of options
are modified, the expense continues to be recognised from grant date to vesting date as if the terms had never been
changed. In addition, at the date of the modification, a further expense is recognised for any increase in fair value of the
transaction as a result of the change.
Where options are cancelled, they are treated as if vesting occurred on cancellation and any unrecognised expenses are
taken immediately to Profit or Loss. However, if new options are substituted for the cancelled options and designated as a
replacement on grant date, the combined impact of the cancellation and replacement options are treated as if they were a
modification.
p)
Earnings per Share
(i) Basic Earnings per Share
Basic earnings per share is determined by dividing the operating loss after income tax by the weighted average
number of ordinary shares outstanding during the financial year.
(ii)
Diluted Earnings per Share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share by taking into
account amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the
exercise of partly paid shares or options outstanding during the financial year.
Segment Reporting
q)
Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief operating
decision maker, which has been identified by the Group as the Managing Director and other members of the Board of
Directors.
Interest-bearing loans and borrowings
r)
All loans and borrowings are initially recognised at the fair value of the consideration received net of issue costs associated
with the borrowing. Interest calculated using the effective interest rate method is accrued over the period it becomes due
and increases the carrying amount of the liability.
Principles of consolidation
s)
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Scorpion Minerals Limited.
Subsidiaries are all entities (including structured entities) over which the Company has control. The Company controls an
entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
50
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 are consistent 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 interests 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.
Changes in Accounting Policies
t)
In the year ended 30 June 2022, the Company has reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July
2021.
It has been determined that there is no material impact of the new and revised Standards and Interpretations on the
financial position or performance of the Group.
New Accounting Standards and Interpretations not yet mandatory or early adopted
u)
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 2022.
The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year
ended 30 June 2022. As a result of this review the Directors have determined that there is no impact, material or otherwise,
of the new and revised Standards and Interpretations on its business and, therefore, no change necessary to Group
accounting policies
Critical Accounting Estimates and Judgements
v)
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under
the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition,
seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors,
including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related
exploration and evaluation asset through sale.
Factors that could impact the future recoverability include abandonment of area of interest, the level of reserves and
resources, future technological changes, costs of drilling and production, production rates, future legal changes (including
changes to environmental restoration obligations) and changes to commodity prices.
Coronavirus (COVID-19)
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may
have, on the Group based on known information. Currently there is no significant impact upon the financial statements or
any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
51
NOTE 2: EXPENSES
Other expenses
Accounting and secretarial fees
Audit fees
Consultants and advisors
Corporate costs
Legal fees
Insurance
Other expenses
NOTE 3: FINANCE INCOME
Finance income
Interest income
Fair value gain on asset recorded at fair value
NOTE 4: INCOME TAX
(a)
Reconciliation of income tax expense to prima facie tax
payable
Loss before income tax
Prima facie income tax at 25% (2021: 26%)
Non-deductible expenses
Movement in unrecognised temporary differences
Effect of tax loss not recognised as deferred assets
Income tax (expense)/benefit
(b)
Unrecognised deferred
differences and losses
tax assets arising on
timing
Unrecognised deferred tax asset – tax losses
Unrecognised deferred tax asset – timing
2022
$
2021
$
98,569
30,000
126,667
172,622
82,705
23,884
4,970
539,417
122,355
31,060
65,507
96,904
123,523
22,967
2,621
464,937
2022
$
2021
$
690
300,000
300,690
-
-
-
2022
2021
(943,545)
(235,886)
(2,236,709)
(581,544)
161,558
(75,000)
149,328
-
19
40,443
541,082
-
3,936,824
(70,000)
3,866,824
3,783,652
21,645
3,805,297
52
NOTE 5: CASH AT BANK
Cash at bank and on hand
Information about the Group’s exposure to interest rate risk is provided in Note 15.
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other receivables
Prepayments
2022
2,102,432
2,102,432
2021
133,873
133,873
2022
2021
147,632
1,760
18,487
167,879
117,364
16,392
-
133,756
As at 30 June 2022, trade receivables that were past due to impaired was nil (2021: nil). Information about the Group’s
exposure to credit risk is provided in Note 15.
NOTE 7: FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT & LOSS
2022
2021
Investment
Listed Shares
Fair value consideration received on sale of mineral rights
Revaluation
Closing fair value
Refer to Note 1(u) for further details.
NOTE 8: CAPITALISED EXPLORATION EXPENDITURE
Capitalised tenement acquisition costs
Opening net book amount
Closing net book amount
1,260,000
1,260,000
960,000
300,000
1,260,000
-
-
-
-
-
2022
2021
2,060,027
2,060,027
2,060,027
2,060,027
The ultimate recoverability of the Group’s areas of interest is dependent on the successful discovery and commercialisation
of the project. The Group follows the guidance of AASB 6 Exploration for and Evaluation of Mineral Resources to determine
when capitalised exploration and evaluation expenditure is impaired.
Refer to Note 1(u) for further details.
NOTE 9: TRADE AND OTHER PAYABLES
Trade payables
Director and former director related entities creditors
Accrued expenses
Accrued director fees and remuneration
2022
687,515
2021
1,213,462
-
20,000
-
97,383
20,000
63,250
707,515
1,394,095
Details about the Group’s exposure to risks arising from current and non-current liabilities are set out in Note 15.
53
NOTE 10: BORROWINGS
On 14 March 2014, the Group entered into a loan agreement with the lenders (entities associated with Mr Michael Fotios) to
the amount of $1,000,000 or such other greater sum as the parties may agree in writing. The loan is provided by a
syndicate of lender the details of which are provided in Note 21 The purpose of the loan facility is to provide working capital
to the Group to fund its immediate operational requirements is at an interest rate of 8% per annum. The loan facility limit
does not refresh if debt is converted to equity. This agreement was superseded by the variations and agreement described
below.
Reconciliation of carrying amount of loans from related parties
Opening amount
Reclassified as other borrowings
Drawdowns during the year
Interest accrued
Repayments during the year
Repayments in shares during the year
Closing drawdown balance
2022
2021
1,275,541
1,294,608
-
-
75,375
(50,000)
(110,000)
1,190,916
-
-
68,851
-
(87,918)
1,275,541
Loans from non-related parties
5,766
5,592
From the $1,190,916 draw down balance, $504,870 are owed to related parties and $686,046 relates to Helios Corporation
Pty Ltd and Investmet Limited who are currently in Liquidation. This latter balance is not bound by the most recent Loan
Variation announced on 29 September 2020.
On 27 October 2017, the Company announced it had entered into an agreement with Investmet Limited and Delta Resource
Management Pty Ltd to provide funding of up to $1,000,000 to the Company.
As per the ASX Announcement dated 27 September 2018, a Letter of Variation was executed to increase the loan facility
limit from $1,000,000 to $2,000,000.
On 16 October 2018, a revised agreement incorporating all previous variations was signed.
On 29 September 2020 the Company announced to the ASX a further letter of variation had been executed extending the
repayment date to 31 December 2021.
As per the ASX Announcement dated 13 March 2020, a Letter of Variation was executed to increase the loan facility limit
from $2,000,000 to $2,500,000. As at 30 June 2022 the company had $1,375,000 available redraw on the loan facility (see
June Quarterly Activities and Cashflow announced on ASX 29 July 2022).
On 8 June 2021 the Company announced to the ASX a further letter of variation had been executed extending the
repayment date to 31 December 2022.
Details about the Group’s exposure to risks arising from current and non-current borrowings are set out in Note 15.
NOTE 11: CONTRIBUTED EQUITY
Issued Capital
Fully paid ordinary shares (a)
Shares to be issued (b)(i)
Shares issued
Capital raising costs
Total Contributed Equity
2022
Number
246,017,859
11,000,000
85,813,333
342,831,192
$
20,674,964
2,200,000
4,689,575
(262,220)
27,302,319
54
Issued Capital
Fully paid ordinary shares (a)
Shares to be issued (b)(i)
Shares issued
Total Contributed Equity
2021
Number
204,517,859
11,000,000
41,500,000
257,017,859
$
18,034,964
2,200,000
2,640,000
22,874,964
(i)
The above shares to be issued represents the deferred consideration payable under the Mt Mulcahy Tenement Sale
Agreement
(a) Movements in fully paid ordinary shares
Details
Balance 30 June 2021
Issued during the year
Balance 30 June 2022
(b) Movements in shares to be issued
Details
Balance 30 June 2021
Issued Placement shares
Balance 30 June 2022
NOTE 12: ACCUMULATED LOSSES
Accumulated losses at beginning of year
Net loss for the year
Transfer on expiry of options
Accumulated losses at end of year
NOTE 13: SHARE BASED PAYMENT RESERVE
Balance at the beginning of the year
Transfer on expiry of options
Issue of unlisted options
Balance at end of year
Number
246,017,859
85,813,333
331,831,192
$
20,674,964
4,689,575
25,364,539
Number
$
11,000,000
2,200,000
-
-
11,000,000
2,200,000
2022
(23,801,988)
(943,545)
159,935
2021
(21,866,636)
(2,236,709)
301,357
(24,585,598)
(23,801,988)
2022
2021
579,452
(159,935)
464,293
(301,357)
549,903
969,420
416,516
579,452
Nature and purpose of reserves
The share-based payments reserve is used to recognise the fair value of shares issued to employees, to Directors and for
the acquisition of assets.
55
NOTE 14: LOSS PER SHARE
Loss attributable to the members of the Company used in calculating basic
and diluted loss per share
Basic loss per share (cents)
Diluted loss per share (cents)
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic loss per share)
2022
2021
(943,545)
(2,236,709)
(0.33)
N/A
(0.98)
N/A
284,521,247
227,776,685
The loss for the year means that the potential ordinary shares on issue are anti-dilutive.
NOTE 15: FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks from their use of financial instruments:
Credit risk
Liquidity risk
Market risk
This Note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risk, and the management of capital. The Board of Directors has overall
responsibility for the establishment and oversight of the risk management framework. Management monitors and manages
the financial risks relating to the operations of the Group through regular reviews of the risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations and arises principally from cash and cash equivalents.
Trade and other receivables
As the Group operates in the mining explorer sector, it does not have trade receivables and therefore is not exposed to
credit risk in relation to trade receivables. Presently, the Group undertakes exploration and evaluation activities exclusively
in Australia. At the reporting date there were no significant concentrations of credit risk.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Other receivables
Carrying Amount
2022
$
2,102,432
167,879
2,270,311
2021
$
133,873
133,756
267,629
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about counterparty default rates.
Financial assets – counterparties without external credit rating
Financial assets with no default in past
Cash at bank and short-term bank deposits
AA-S&P rating
2022
$
2021
$
167,879
133,756
2,102,432
2,270,311
133,873
267,629
56
Capital Risk Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so as to
maintain a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain
or adjust the capital structure, the Group may issue new shares or sell assets to reduce debt. The Group’s focus has been
to raise sufficient funds through equity and to sell surplus assets to fund exploration and evaluation activities. The Group
monitors the level of funding from related parties and the reliance of such funding on the basis of the gearing ratio.
There were no changes in the Group’s approach to capital management during the year. Risk management policies and
procedures are established with regular monitoring and reporting. Neither the Company nor its subsidiary is subject to
externally imposed capital requirements.
Gearing levels are reviewed by the Board on a regular basis in line with its target gearing ratio, the cost of capital and the
risks associated with each class of capital.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Group’s reputation. The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast
and actual cash flows.
Typically, the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of
60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that
cannot reasonably be predicted, such as natural disasters.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the
impact of netting agreements:
30 June 2022
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
Trade and other payables
707,515
707,515
707,515
-
Borrowings
1,196,682
1,196,682
-
1,196,682
1,904,197
1,904,197
707,515
1,196,682
-
-
-
-
-
-
-
-
-
30 June 2021
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
1-2 years
2-5 years
More than
5 years
Trade and other payables
1,394,095
1,394,095
1,394,095
-
Borrowings
1,281,133
1,281,133
-
1,281,133
2,675,228
2,675,228
1,394,095
1,281,133
-
-
-
-
-
-
-
-
-
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will
affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Sensitivity analysis
If the interest rates had weakened/strengthen by 10% (based on forward treasury rates) at 30 June 2022, there would be no
material impact on the statement of profit or loss and other comprehensive income. There would be no effect on the equity
reserves other that those directly related to statement of profit or loss and other comprehensive income movements.
57
Interest rate risk
Exposure arises predominantly from assets and liabilities bearing variable interest rates as the Group intends to hold fixed
rate assets and liabilities to maturity. Interest rate risk is not considered to be material.
2022
Financial Assets
Cash and cash equivalents
Trade and other receivables
Net Financial Assets
Financial Liabilities
Trade and other payables and borrowings
2021
Financial Assets
Cash and cash equivalents
Trade and other receivables
Net Financial Assets
Financial Liabilities
Trade and other payables and borrowings
Fixed Interest
$
Floating
Interest
$
Non-Interest
Bearing
$
Total
$
-
-
-
2,102,432
-
2,102,432
-
167,879
167,879
2,102,432
167,879
2,270,311
1,196,682
1,196,682
-
-
707,515
707,515
1,904,197
1,904,197
Fixed Interest
$
Floating
Interest
$
Non-Interest
Bearing
$
Total
$
-
-
-
133,873
-
133,873
-
133,756
133,756
133,873
133,756
267,629
1,281,133
1,281,133
-
-
1,394,095
1,394,095
2,675,228
2,675,228
Fair values
The Group does not have any financial instruments that are subject to recurring fair value measurements. Due to their
short-term nature, the carrying amounts of the current receivables and current trade and other payables are assumed to
approximate their fair value.
NOTE 16: SEGMENT INFORMATION
Management has determined the operating segments based on the reports reviewed by the Board of Directors that are
used to make strategic decisions. The Group does not have any operating segments with discrete financial information.
The Group does not have any customers, and all the Group’s assets and liabilities are located within Australia.
The Board of Directors review internal management reports on a monthly basis that is consistent with the information
provided in the statement of profit or loss and other comprehensive income, statement of financial position and statement of
cash flows. As a result, no reconciliation is required because the information as presented is what is used by the Board to
make strategic decisions.
58
NOTE 17: COMMITMENTS
Exploration commitments
The Group has certain obligations to perform minimum exploration work and to spend minimum amounts on exploration
tenements. The obligations may be varied from time to time subject to approval and are expected to be fulfilled in the
normal course of the operations of the Group.
Due to the nature of the Group’s operations in exploring and evaluating areas of interest, it is difficult to accurately forecast
the nature and amount of future expenditure beyond the next year. Expenditure may be reduced by seeking exemption
from individual commitments, by relinquishing of tenure or any new joint venture agreements. Expenditure may be
increased when new tenements are granted.
Commitment contracted for at balance date but not recognised as liabilities are as follows:
Within one year
2022
$
2021
$
595,440
595,440
232,440
232,440
NOTE 18: EVENTS OCCURRING AFTER THE REPORTING PERIOD
COVID-19
The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential future
impact after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian
Government, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus
that may be provided.
NOTE 19: AUDITOR’S REMUNERATION
Amount paid or payable to Rothsay Audit & Assurance Pty Ltd (2021:
Rothsay Auditing)
Tax compliance services
NOTE 20: DIVIDENDS
There were no dividends declared or paid during the current and prior years.
2022
$
2021
$
30,000
5,000
35,000
30,000
-
30,000
NOTE 21: RELATED PARTY TRANSACTIONS
Summarised Compensation of Key Management Personnel
(a)
Short-term employee benefits
Post-employment benefits
2022
$
2021
$
531,202
2,559
533,761
214,800
-
214,800
(b) Other Transactions with Key Management Personnel
There has been no other transactions with Key Management Personnel.
Related party creditors
The Group has entered into an administrative services management agreement with Delta Resource Management Pty Ltd
(Delta). $100,000 was settled through the issue of shares to Delta Resource Management Pty Ltd for the year ending 30
June 2022 (2021: $1,200,000); As at 30 June 2022, there was a balance of $407,339 excl. of GST outstanding (2021:
$520,046).
59
Delta Resource Management Pty Ltd
Investment Limited (in liquidation)
2022
$
407,339
33,018
440,357
2021
$
520,046
93,018
613,064
The above transactions are based on normal commercial terms and conditions and at arm’s length.
Loans from related parties
The purpose of the loans with related parties is to provide working capital to the Group to fund its immediate operational
requirements. The proceeds from the loans have been used to meet short-term expenditure needs. The following balance
is outstanding at the end of the reporting period. Further information relating to loans is set out in Note 10.
Interest-bearing loans
Azurite Corporation
Delta Resource Management Pty Ltd
Michael Fotios Family Trust
Investmet Limited (in liquidation)
2022
$
2021
$
317,220
187,650
336,334
349,712
351,570
175,436
419,141
329,394
1,190,916
1,275,541
The above loans (other than the portion relating to Investmet Limited, who are currently in Liquidation) are not expected to
be repaid until such a time that the Company has received the necessary funds for repayment and such a repayment would
not impair the ability for the Company to continue as a going concern.
60
NOTE 22: INVESTMENT IN CONTROLLED ENTITIES
Name of Entity
Equity Holding
Cost of Parent Entity’s Investment
Parent Entity
Scorpion Minerals Limited
Controlled Entity
Placer Resources Pty Ltd
LESS Impairment Costs
Scorpion Metals Limited
LESS Impairment Costs
2022
%
2021
%
2022
$
2021
$
100
100
100
100
700,000
(700,000)
168,000
(168,000)
-
700,000
(700,000)
168,000
(168,000)
-
Scorpion Metals Limited, Scorpion Minerals Limited and Placer Resources Pty Ltd are domiciled in and incorporated in
Australia.
NOTE 23: SHARE BASED PAYMENTS
During the financial year ended 30 June 2022 the Company issued options to Directors and employees under the
Company’s Share Option Plan. Share based payments are recognised in the profit and loss statement. In the reporting
period, share-based payments to the value of $646,153 were made (2021: $416,516).
The fair value of the options has been calculated using the Black-Scholes option pricing model. The model inputs are shown
in the table below:
Date of issue
Date of
expiry
15 Sep 2021
15 Sep 2023
15 Sep 20211
15 Sep 2024
15 Sep 20212
15 Sep 2025
25 Nov 2021
25 Nov 2024
25 Nov 20213
25 Nov 2024
22 Apr 2022
22 Apr 2024
22 Apr 20221
22 Apr 2025
22 Apr 20222
22 Apr 2026
Exercise
price
($)
0.00
0.00
0.00
0.12
0.00
0.00
0.00
0.00
Underlying
share
price at
issue ($)
Risk-free
interest
rate
Volatility
Number of
options
granted
Value taken
up ($)
0.070
0.070
0.070
0.068
0.068
0.075
0.075
0.075
0.06%
0.06%
0.06%
0.13%
0.13%
1.00%
1.00%
1.00%
75%
75%
75%
75%
75%
75%
75%
75%
1,375,000
1,375,000
1,375,000
6,000,000
1,000,000
750,000
750,000
750,000
96,250
78,974
38,715
23,152
315,600
56,250
29,403
7,809
646,153
Notes
1)
2)
3)
Options in this class are subject to the vesting condition that the recipient remain employed or engaged by the
Company until 15 September 2022. The value of the options expensed has been reduced in accordance with the
portion of the vesting period falling within the reporting period.
Options in this class are subject to the vesting condition that the recipient remain employed or engaged by the
Company until 15 September 2023. The value of the options expensed has been reduced in accordance with the
portion of the vesting period falling within the reporting period.
Options in this class are subject to the vesting condition that the Company’s Shares reach a volume-weighted
average price of at least $0.14 per Share calculated over five consecutive ASX trading days.
61
NOTE 24: STATEMENT OF CASH FLOWS
Reconciliation of cash and cash equivalents
Cash and cash equivalents as shown in the statement of financial position
and the statement of cash flows
2022
$
2021
$
Operating loss after tax
Interest
Share based payment expenses
Gain on sale of mineral rights
Finance income
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in borrowings
Increase/(decrease) in trade and other payables
Net cash (used in) operating activities
(943,545)
75,805
307,402
(960,000)
(300,000)
34,125
(75,550)
(164,483)
2,026,246
There were no non-cash financing and investing activities (2021: nil)
NOTE 25: SCORPION MINERALS LIMITED PARENT COMPANY INFORMATION
2022
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Borrowings
TOTAL LIABILITIES
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
(Loss) for the year
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
(2,236,709)
89,544
416,516
-
-
54,082
69,197
221,956
(1,385,414)
2021
$
267,034
2,785,887
3,052,921
1,392,485
211,674
1,604,159
$
2,269,432
4,209,387
6,478,819
707,515
226,122
933,637
27,302,319
969,420
(22,726,557)
5,545,182
22,874,964
576,452
(22,002,654)
1,448,762
(880,838)
(2,166,512)
As at 30 June 2022, the Company has not provided any financial guarantees in relation to the debts of its subsidiaries.
62
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
The financial statements, comprising the consolidated statement of profit or loss and other comprehensive income,
consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of
changes in equity, accompanying consolidated notes, are in accordance with the Corporations Act 2001 and:
(a)
(b)
Comply with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
Give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year
ended on that date of the Group.
In the Directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and
when they become due and payable.
The Directors have been given the declarations by the Managing Director required by section 295A.
The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
2.
3.
4.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by:
Bronwyn Barnes
Director
Perth, Western Australia
30 September 2022
63
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Scorpion Minerals Limited (“the Company”) and its controlled
entities (“the Group”) which comprises the consolidated statement of financial position as at 30 June 2022,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the 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 2022 and of its financial
performance for the year ended on that date; 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 these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (Including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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.
64
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Key Audit Matter – Capitalised Exploration
Expenditure
How our Audit Addressed the Key Audit Matter
The Group has significant capitalised exploration
and evaluation expenditure of $2,060,027 which
represents a significant asset to the Group.
Our procedures in reviewing the need for impairment
of capitalised exploration and evaluation included but
were not limited to the following:
for
that assessment
We note
impairment
capitalised exploration and evaluation expenditure
is subject to a significant level of judgement.
Management reviewed the assets for any indicators
of
in accordance with AASB 6
Exploration
for and Evaluation of Mineral
Resources.
impairment
•
•
Reviewing the reasonableness of the
management’s assessment of the indicators of
impairment; and
Reviewing the compliance of management’s
assessment with AASB 6.
We have also assessed the appropriateness of the
disclosures included in the financial report.
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 2022, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with the Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or cease operations,
or have no realistic alternative but to do so.
65
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Auditor’s Responsibility 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 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: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit matters.
We describe those matters in our auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communications.
66
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2022.
In our opinion the remuneration report of Scorpion Minerals Limited for the year ended 30 June 2022
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.
Rothsay Audit & Assurance Pty Ltd
Daniel Dalla
Director
Dated 30 September 2022
67
Additional Information for Listed Public Companies
ADDITIONAL INFORMATION
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out below.
The information is current as at 29 September 2022.
Distribution of quoted security holders
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
Over 100,000
TOTAL
Holders
39
78
120
365
352
954
Voting rights
All ordinary shares carry one vote per share without restriction.
Unquoted securities
Nil.
On-market buy-back
There is no current on-market buy-back.
Units
Percentage
6,680
254,431
990,991
16,119,223
314,459,867
331,831,192
0.00%
0.08%
0.30%
4.86%
94.77%
100.00%
Securities Exchange listing
Quotation has been granted for the Company’s Ordinary Shares on ASX Limited (Code: SCN).
Substantial shareholders
Shareholder Name
Delta Resource Management Pty Ltd
Less Than Marketable Parcel
Parcel
Total unmarketable parcel
Units
18,914,366
Percentage
5.7%
Holders
159
Units
Percentage
521,210
0.16%
Twenty largest shareholders – Ordinary Shares
Shareholder Name
DELTA RESOURCE MANAGEMENT PTY LTD
INVESTMET LTD
DELTA RESOURCE MANAGEMENT PTY LTD
INVESTMET LIMITED
1
2
3
4
5 MOONBEAM HOLDINGS PTY LTD
17 ORBIT DRILLING PTY LTD
18
MS BETTY JEANETTE MOORE + MR PHILIP COLIN HAMMOND
Continue reading text version or see original annual report in PDF format above