Financial Report
For the year ended 30 June 2023
SCORPION MINERALS LIMITED | www.scorpionminerals.com.au | ASX:SCN
2/50 KINGS PARK ROAD, WEST PERTH WA 6005 | T: +61 8 6241 1877 | ABN: 40 115 535 030
CONTENTS
CORPORATE DIRECTORY ..............................................................................................................................................................2
DIRECTORS’ REPORT .....................................................................................................................................................................3
AUDITOR’S INDEPENDENCE DECLARATION .............................................................................................................................20
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ...........................................21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023 ......................................................................22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2023 .........................................23
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023 ......................................................24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ....................................................................................................25
DIRECTORS’ DECLARATION ........................................................................................................................................................42
INDEPENDENT AUDITOR’S REPORT ...........................................................................................................................................43
ADDITIONAL INFORMATION .........................................................................................................................................................47
TENEMENT LIST ............................................................................................................................................................................48
CORPORATE GOVERNANCE STATEMENT ................................................................................................................................. 49
APPENDIX 4G ................................................................................................................................................................................. 60
i
CORPORATE DIRECTORY
Directors
Bronwyn Barnes
Kate Stoney
Michael Kitney
Non-Executive Chairman
Executive Director – Finance
Non-Executive Director
Company Secretaries
Kate Stoney
Josh Merriman
Registered Office
2/50 Kings Park Road
WEST PERTH WA 6005
Telephone
08 6241 1877
Solicitors
Nova Legal
Level 2
50 Kings Park Road
WEST PERTH WA 6005
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 2023.
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
Non-Executive Chairman – appointed 31 October 2018
Executive Director – Finance – appointed 16 February 2021
Non-Executive Director – appointed 7 June 2022
INFORMATION ON DIRECTORS
Bronwyn Barnes (appointed NED 31 Oct 2018; Non-Exec Chair 25 Aug 2021; Exec Chair 13 Apr 2022; Non-Exec Chair 8 Jun 2023)
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 on ASX-listed company boards focused on minerals exploration and development.
Ms Barnes is currently Executive Chairman of Indiana Resources Ltd and Non-Executive Chairman of Finder Energy Ltd
and Aerison Group Ltd. She was previously also a Non-Executive Director of Synergy (Electricity Generation and Retail
Corporation).
Kate Stoney (appointed NED 16 Feb 2021; Exec Director 8 Jun 2023)
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 brings a wealth of experience in the exploration to
production stages of mining and has an extensive network within the industry.
Ms Stoney is currently Non-Executive Director and Company Secretary of Horseshoe Metals Ltd and Company Secretary of
Indiana Resources Ltd. She was previously General Manager – Finance and Company Secretary for Echo Resources Ltd
(ASX: EAR).
Michael Kitney (appointed 7 Jun 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 experience includes 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 production, gold extraction and recovery and copper leaching and recovery. He is presently Executive Chairman
of 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 is currently a Non-Executive
Director of Monument Mining Limited (TSX:MMY) and was previously a Non-Executive Director of Breaker Resources NL
(ASX:BRB). 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.
3
COMPANY SECRETARIES
Kate Stoney (appointed 2 Dec 2019)
Josh Merriman (appointed 8 June 2023)
Mr Merriman is an experienced corporate finance and governance professional who has worked in private and public
companies across multiple industries. He is currently Joint Company Secretary of Horseshoe Metals Ltd and Indiana
Resources Ltd.
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 1
Michael Kitney
Ordinary shares Options over ordinary shares
19,868,250
5,000,000
-
11,750,000
104,500,000
2,000,000
1 Ms Stoney’s holdings comprises 3,000,000 unlisted options held personally and beneficially, and 5,000,000 ordinary shares and
101,500,000 unlisted options held by Obsidian Metals Group Pty Ltd, an entity of which she is director and shareholder (non-beneficial).
DIVIDENDS
There were no dividends declared or paid during the financial year (2022: nil).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
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.
REVIEW OF OPERATIONS
During the year ended 30 June 2023, the Company’s exploration activities focused on the newly acquired Youanmi Project
and its existing Pharos Project in the Murchison region of Western Australia (refer Figure 1).
Youanmi Project, WA (SCN: option to acquire 100%)
In December 2022, Scorpion announced that it had entered into a binding Option Agreement (“Agreement”) to acquire a
100% interest in the Youanmi Lithium Project. The project comprises tenements E57/978, E57/1049 and E57/1056
(“Youanmi Tenements”), covering an area of 279 km2 in the East Murchison Mineral Field approximately 450 km north of
Perth (refer Figure 1).
The Youanmi acquisition presents an opportunity to actively participate in a region of growing significance for lithium
mineralisation in Western Australia and follows a detailed technical review of the project by the Company’s technical
advisor.
The Agreement entitles Scorpion to acquire a 100% interest in the Youanmi Tenements in exchange for a cash payment of
$3.5 million and the granting of a $1 per tonne royalty over ore mined and processed or removed from the Youanmi
Tenements (refer ASX release 19 December 2022). Exercise of the option is subject to standard conditions precedent
including due diligence.
4
Figure 1: Plan showing Youanmi Tenements over simplified geology and adjacent explorers
PROJECT SUMMARY
Youanmi sits at the northern end of a 20km long corridor of Lithium, Caesium, Tantalum (“LCT”) pegmatite intrusions that
have delivered significant results for other explorers at the southern end of the trend (refer Figure 3). Historical exploration
activity at the project includes geological mapping, rock chip sampling, airborne magnetic surveys and RC drilling.
Geological mapping has identified a 3km long zone of intermittent outcropping LCT pegmatites located about 1km east of a
contact between a late-stage granite and the Youanmi Layered Mafic Complex. The late-stage granite exhibits coarse
grained textures and enrichment in elements such as fluorine suggesting that it is the source of the LCT pegmatites to the
east. This relationship appears to hold regionally as LCT pegmatite swarms have been discovered by Aldoro Resources on
the west side of the late granite within the Windimurra complex.
Historic RC drill testing at Youanmi consisted of 54 holes (19MYRC005 to 19MYRC058) drilled in wide spaced fences along
the 3km long zone with the majority drilled in the southern half of the trend.
5
Mapping and RC drilling has so far confirmed multiple LCT zones that are oriented sub-parallel to the granite contact and
are shallow dipping to the east or oriented east-west of unknown dip requiring further detailed investigation. It is important
to note that exploration to the south by others has identified significant LCT mineralisation in east-west oriented pegmatites.
Shallow dipping pegmatite orientation is a characteristic of significant LCT pegmatite systems.
Exploration at Youanmi and in the region has confirmed the presence of lepidolite, petalite and possible spodumene
suggesting the presence of zonation within the LCT pegmatites either across their width and/or along strike. Future
exploration will focus on determining the zonation trend in order to identify high priority targets.
The Youanmi Tenements are additionally prospective for PGE-Ni-Cu, Base Metal (Zn-Cu-Ag-Au) and Vanadium
mineralisation hosted by either the Youanmi Layered Mafic Complex or the adjacent greenstone sequence (Figure 2).
Metal Australia’s Manindi project (PGE-Ni Cu and Base Metals) and Venus Metal’s Vidure prospect (PGE-Ni-Cu) lie to the
south of Youanmi.
The northern part of Youanmi contains the western extension of the sequence that hosts Venus Metal’s Youanmi Vanadium
deposit. Further evaluation of the potential for Vanadium, PGE-Ni-Cu and Base Metal mineralisation will be undertaken
simultaneously with lithium exploration.
FIELD ACTIVITIES
During the year ended 30 June 2023, the Company began systematic exploration of Youanmi’s lithium prospectivity, in line
with a program of activities designed by the Company’s technical advisor to progress towards a maiden mineral resource
estimate.
The Company undertook its maiden drilling programmes at Youanmi, comprising an initial reverse circulation (RC)
programme in February 2023 of 9 holes for 1,476 metres (refer ASX release 23 March 2023) and a follow-up RC infill
programme of 14 holes for 2,158 metres (refer ASX release 30 May 2023). A further infill RC drilling programme was
completed post period end, with 17 holes completed for 2,202 metres (refer ASX release 26 July 2023).
The Company’s initial programme in February 2023 targeted shallow east-dipping LCT pegmatites that have been mapped
along 3km of strike and remain open both along and across strike in parallel zones.
Assays results received from the programme confirmed lithium mineralisation extending down dip of multiple stacked
shallow east-dipping LCT pegmatites to a depth of at least 175 metres below surface. Parallel pegmatites intersected east
and west of the central zone have increased the width of the lithium corridor to at least 850 metres (refer Figures 2 and 3).
Individual pegmatites are up to 1,000m long and surface exposures suggest widths from 5m to 15m. Drilling intersected
lithium mineralisation up to 13 metres in thickness, with individual 1m assays up to 3.19% Li2O were returned (refer ASX
release 13 April 2023). Significant intercepts included:
•
•
•
•
•
•
9m @ 1.36% Li2O, 105ppm Ta2O5 and 55ppm Nb2O5 from 55m in SYRC4
4m @ 1.23% Li2O, 98ppm Ta2O5 and 50ppm Nb2O5 from 129m in SYRC6
5m @ 1.24% Li2O, 99ppm Ta2O5and 52ppm Nb2O5 from 147m in SYRC6
4m @ 1.70% Li2O, 140ppm Ta2O5 and 63ppm Nb2O5 from 48m in SYRC2
6m @ 1.06% Li2O, 135ppm Ta2O5 and 64ppm Nb2O5 from 33m in SYRC5; and
4m @ 1.28% Li2O, 52ppm Ta2O5 and 34ppm Nb2O5 from 67m in SYRC8
RC drill holes were completed on wide spaced sections to test the geometry and down dip continuity of the stacked LCT
pegmatites over 850m of strike. Significant zones of pegmatite hosted lithium mineralisation were intersected on all
sections. These results confirmed historic drilling intercepts extending mineralisation down dip on each section.
The follow-up programme completed in May confirmed significant high-grade lithium mineralisation hosted by shallow east
dipping LCT pegmatites along 3km of strike and extending to a minimum of 175m below surface. Drilling was completed on
80m spaced sections to infill and test the geometry and down dip continuity of the stacked LCT pegmatites over 850m of
strike. Significant zones of pegmatite hosted lithium mineralisation were intersected on all sections.
Individual pegmatites are up to 1,000m long and surface exposures suggest widths from 5m to 15m. Drilling has intersected
lithium mineralisation up to 14m in thickness, with individual 1m assays up to 2.84% Li2O returned.
6
Significant intercepts from the initial batch of assays (refer ASX release 23 June 2023) included:
• 9m @ 1.50% Li2O, 88ppm Ta2O5 and 57ppm Nb2O5 from 160m in SYRC014
• 10m @ 0.98% Li2O, 100ppm Ta2O5 and 49ppm Nb2O5 from 83m in SYRC018
• 6m @ 1.60% Li2O, 131ppm Ta2O5 and 60ppm Nb2O5 from 49m in SYRC009
• 7m @ 1.19% Li2O, 100ppm Ta2O5 and 54ppm Nb2O5 from 76m in SYRC011
• 5m @ 1.37% Li2O, 146ppm Ta2O5 and 76ppm Nb2O5 from 22m in SYRC013
• 5m @ 1.25% Li2O, 160ppm Ta2O5 and 104ppm Nb2O5 from 55m in SYRC017
• 6m @ 1.00% Li2O, 88ppm Ta2O5 and 54ppm Nb2O5 from 130m in SYRC016
Based on the intersection angle of the drilling with the modelled pegmatites, downhole widths noted above are interpreted to
be close to true widths.
Assays from the second batch delivered further high-grade lithium mineralisation up to 2.36% Li2O intersected in stacked
LCT pegmatites (refer ASX release 5 July 2023). Significant intercepts from the second batch of assays included:
• 5m @ 1.13% Li2O, 92ppm Ta2O5 and 43ppm Nb2O5 from 79m in SYRC019
• 9m @ 0.90% Li2O, 66ppm Ta2O5 and 43ppm Nb2O5 from 108m in SYRC021
• 6m @ 0.92% Li2O, 86ppm Ta2O5 and 44ppm Nb2O5 from 113m in SYRC020
• 6m @ 0.89% Li2O, 62ppm Ta2O5 and 30ppm Nb2O5 from 52m in SYRC021
• 4m @ 1.09% Li2O, 120ppm Ta2O5 and 55ppm Nb2O5 from 87m in SYRC020
• 3m @ 1.54% Li2O, 79ppm Ta2O5 and 55ppm Nb2O5 from 108m in SYRC022
• 3m @ 1.38% Li2O, 209ppm Ta2O5 and 98ppm Nb2O5 from 54m in SYRC022
Further RC infill drilling concluding in July 2023 intersected significant zones of pegmatite hosted lithium mineralisation were
intersected on all sections, with mineralisation remaining open in all directions. Assays received post period end included
the following significant results (refer ASX release 17 August 2023):
•
•
•
•
•
•
14m @ 1.50% Li2O, 64ppm Ta2O5 and 42ppm Nb2O5 from 126m in SYRC037
4m @ 1.38% Li2O, 107ppm Ta2O5 and 52ppm Nb2O5 from 20m in SYRC038
4m @ 1.35% Li2O, 64ppm Ta2O5 and 54ppm Nb2O5 from 47m in SYRC036
5m @ 0.94% Li2O, 93ppm Ta2O5 and 67ppm Nb2O5 from 105m in SYRC039
3m @ 1.32% Li2O, 87ppm Ta2O5 and 52ppm Nb2O5 from 148m in SYRC037
4m @ 0.97% Li2O, 172ppm Ta2O5 and 77ppm Nb2O5 from 83m in SYRC037
Significant high-grade lithium mineralisation hosted by shallow east dipping LCT pegmatites extends along 3km of strike
and to a minimum of 175m below surface. Field reconnaissance and air photo interpretation has also identified multiple
target areas that require follow up mapping, sampling and RC drill testing (refer Figure 4).
The technical information relating to the Youanmi Project contained in this report is derived from the below ASX releases:
19th December 2022
SCN Expands Lithium Footprint – Major Project Acquisition
6th February 2023
Youanmi Lithium Project Drilling Commences
23rd March 2023
Drilling Confirms 3km of LCT Pegmatites Strike at Youanmi
29th March 2023
Drilling Confirms 3km of LCT Pegmatites Strike – Amended
13th April 2023
High Grade Lithium Drilling Results - Youanmi Project
15th May 2023
Youanmi Infill Drilling Underway
30th May 2023
Youanmi Infill Drilling Completed
8th June 2023
Scorpion Appoints Lithium Industry Pioneer as CEO
23rd June 2023
Further High-Grade Lithium Results – Youanmi Project
4th July 2023
Infill RC Drilling Underway at Youanmi
5th July 2023
More High-Grade Lithium at Youanmi - 2.36% Li2O
26th July 2023
Infill RC Drilling Complete at Youanmi
27th July 2023
Scorpion signs MOU with Sunwoda at Youanmi
3rd August 2023
Infill Drilling Delivers More High-Grade Lithium at Youanmi
7
Figure 2: Plan showing mapped pegmatite outcrop and significant RC drilling intercepts
8
Figure 3: Plan showing mapped pegmatite outcrop and significant RC drilling intercepts (enlargement)
9
Figure 4: Plan showing mapped pegmatite outcrop and significant RC drilling intercepts (enlargement)
10
Figure 5: Location of the Company’s Pharos, Youanmi and Nowthanna Projects
Pharos Project, WA (SCN: 100%)
The Pharos Project is 100% owned by Scorpion and covers an area of 1,335km2 located 60km northwest of Cue in the
Murchison Mineral Field, Western Australia. The project is prospective for lithium, PGE-Ni-Cu, gold, iron ore and VMS
hosted Cu-Zn-Ag Au mineralisation (refer Figure 6).
Exploration activities at Pharos during the year ended 30 June 2023 focused on the largely untested 50km strike zone of
LCT pegmatites identified via technical review. The Company also continued evaluation of the base metals and gold
targets within the project area.
Lithium targets
Initial field reconnaissance during the year has confirmed extensive LCT pegmatite swarms at the Poona East and Poona
West prospects (refer ASX release 20 October 2022). Activities completed included geological mapping and rock chip
sampling, with the aims of determining the lateral extent of the corridor, identifying the potential for additional LCT
pegmatites, and obtaining structural information for planning of initial stratigraphic reverse circulation (“RC”) drill testing of
target areas. Historic RC drill testing at Poona East and Poona West has been limited.
Mapping so far has confirmed multiple LCT pegmatites in both areas that are oriented sub parallel to the granite contact and
are shallow dipping to the north (Poona East) and northeast (Poona West). Individual pegmatites are up to 1000m long and
surface exposures suggest widths from 10m to 15m wide. Shallow dipping pegmatite orientation is a characteristic of
significant LCT pegmatite systems.
11
Inspection of historic rock chip sample areas with high lithium results has confirmed the presence of zonation within the LCT
pegmatites across their width and along strike, with further RC drilling required to properly assess these targets. Initial RC
drill testing of initial targets at Poona will commence following additional heritage clearing underway to allow access to the
expanded pegmatite target area.
Base metal and gold targets
The Pharos Project contains the Pallas, Mughal and Perses PGE-Ni-Cu-Co targets plus the Mt Mulcahy Cu-Zn-Ag-Au VMS
deposit. Following the approvals of programs of work, planning and logistics have been advanced to allow for initial drill
testing of Pallas and Perses. Further evaluation/planning for follow-up RC and/or diamond drilling was also undertaken for
the existing gold targets at Oliver’s Patch and Ulysses.
Figure 6: Location of Pharos Project commodity targets
12
RESULTS OF OPERATIONS
The Group incurred an after-tax operating loss for the year ended 30 June 2023 of $3,243,338 (30 June 2022: $943,545).
CORPORATE
Management and board changes
On 8 June 2023, the Company advised the appointment of Mr Michael Fotios as Chief Executive Officer to lead the
Company’s next phase of growth. Mr Fotios is a highly experienced mining industry executive and is widely regarded as a
lithium industry pioneer, having been one of the first Australian mining executives to identify the potential of the battery
minerals sector. Mr Fotios has an extensive and successful track record of taking projects from discovery through to
development and production. In the lithium sector, he was a founder and former Managing Director of both Galaxy
Resources Ltd and General Mining Corporation Ltd, which now form part of Allkem Ltd, one of the world’s largest lithium
producers.
The Company also advised the appointment of Mr Michael Langford as Chief Investment Officer as part of a renewed
mandate with Airguide Advisory Pte. Ltd, the Company’s strategic advisor. Additionally, Ms Bronwyn Barnes transitioned
from Executive Chairman to Non-Executive Chairman, Ms Kate Stoney transitioned from Non-Executive Director to
Executive Director – Finance, and Mr Josh Merriman was appointed Joint Company Secretary with Ms Stoney.
Share capital and funding
The Company did not raise further funds from the issue of new capital during the year. Funding for the Company’s activities
was drawn from existing cash reserves and the proceeds of its holdings in Fenix Resources Ltd (ASX:FEX). During the
year, the Company received a cash dividend from FEX of $210,000 and proceeds of $960,000 (before costs) from the
disposal of its shareholding. The Company was issued 4,000,000 fully paid ordinary FEX shares in February 2022 as part
consideration for the acceleration of the Farm-in and Joint Venture Agreement between the two parties.
On 11 November 2022, the Company released from escrow 4,000,000 fully paid ordinary shares held by eMetals Ltd
(ASX:EMT), following the receipt of completed deeds of assignment from eMetals in connection with the Company’s
acquisition of tenements E20/885, E20/896, E20/963 and E20/964 (“Poona Project”). The shares had been issued to
eMetals on 14 February 2022 as part consideration for the acquisition in accordance with the Binding Heads of Agreement
between the companies dated 2 December 2021.
On 22 December 2022, the Company issued 5,000,000 fully paid ordinary shares to a private exploration company as part
consideration for the option to acquire the Youanmi Lithium Project.
Other matters
The Company held its Annual General Meeting on 29 November 2022, with all resolutions put to shareholders being
passed.
SHAREHOLDER RETURNS
Basic and diluted loss per share (cents)
2023
(0.93)
2022
(0.33)
SIGNIFICANT EVENTS AFTER THE REPORTING DATE
The Company is not aware of any 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.
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.
13
REMUNERATION REPORT – AUDITED
The Directors of Scorpion present the Remuneration Report for the Group for the financial year ended 30 June 2023. This
Remuneration Report forms part of the Directors’ Report and has been prepared in accordance with the disclosure
requirements of the Corporations Act 2001.The information provided in this Remuneration Report has been audited as
required under Section 308(3C) of the Corporations Act.
The Company’s key management personnel are those persons who, directly or indirectly, have authority and responsibility
for planning, directing and controlling the major activities of the Company and Group. The key management personnel of
the Group for the financial year ended 30 June 2023 were as follows:
Name
Bronwyn Barnes
Position
Non-Executive Chairman
Executive Chairman
Kate Stoney
Executive Director – Finance
Michael Kitney
Michael Fotios
Non-Executive Director
Company Secretary
Non-Executive Director
Chief Executive Officer
Dates in office
Appointed 8 June 2023
Until 8 June 2023
Appointed 8 June 2023
Until 8 June 2023
Full financial year
Full financial year
Appointed 8 June 2023
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 current maximum aggregate amount of
fees that can be paid to Non-Executive Directors is $200,000, as 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.
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.
There were no remuneration consultants engaged by the Company during the year.
14
Bonuses and performance-based remuneration
There were no cash bonuses or non-monetary benefits paid to key management personnel during the year. 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.
Details of remuneration
The remuneration of the Company’s key management personnel (as defined in AASB 124 Related Party Disclosures) for the
year ended 30 June 2023 is set out below:
Short-Term
Salary & Fees
$
Post-Employment
Superannuation
$
Share-based Payments
Options
Shares
$
$
106,667
115,014
11,200
2,559
148,000
-
Total
$
444,747
222,773
61,000
177,352
93,906
2,800
178,880
105,200
-
128,352
51,906
-
105,200
130,836
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Directors
Bronwyn Barnes
2023
2022
Kate Stoney
2023
2022
Michael Kitney
2023
2022
Craig Hall (resigned 7 June 2022)
2022
Executives
Michael Fotios
2023
Total
2023
2022
61,000
49,000
42,000
2,800
25,636
-
209,667
192,450
11,200
2,559
148,000
-
230,786
338,752
599,653
533,761
Amounts payable to key management personnel
The following balances are outstanding at the reporting date (inclusive of GST where applicable) in relation to transactions
with key management personnel and their related parties:
Director’s remuneration payable to Integra Management Consultants Pty Ltd 1
Director’s superannuation payable to Laclos Pty Ltd 1
Director’s remuneration payable to Kate Stoney
Non-executive director’s fees payable to Emdale Family Trust 2
Consulting fees payable to Target Exploration Pty Ltd 3
1
2
3
Entity associated with Ms Barnes.
Entity associated with Mr Kitney.
Entity associated with Ms Stoney (see section immediately below).
$
7,333
700
6,600
3,500
149,427
167,560
Total
Other transactions with key management personnel
The services of Mr Fotios as CEO are provided through a management entity, Target Exploration Pty Ltd (“Target”), of which
Ms Stoney is a director. During the period, amounts payable to Target in respect of Mr Fotios’ CEO services totalled
$32,230. Target also provided finance and administration services to the value of $33,500 and technical consulting services
to the value of $360,155 during the period.
15
Additionally, Obsidian Metals Group Pty Ltd (“Obsidian”), another entity of which Ms Stoney is a director, provided project
generation services to the value of $24,998 and corporate consulting services to the value of $50,000 during the period. For
the avoidance of doubt, Ms Stoney has no beneficial interest in the Company’s contractual arrangements with Target or
Obsidian.
Executive contracts and service agreements
The remuneration arrangements for Executives (including Executive Directors) are formalised in employment contracts or
service agreements. These contracts provide for the payment of annual fixed remuneration and, at the Board’s discretion,
the issuance of securities as short-term (STI) or long-term (LTI) incentives under the Company’s Employee Securities
Incentive Plan. The below table outlines the key terms of the contracts with Executives:
KMP
Term of Contract
Notice period by
Company
Notice period
by Executive
B Barnes 1
K Stoney 2
M Fotios 3
No fixed term
No fixed term
No fixed term
3 months
3 months
3 months
3 months
3 months
3 months
Base fee
including
superannuation
($)
132,600
66,300
386,750
STI and LTI
bonuses payable
various 4
various 5
various 6
1 Ms Barnes transitioned to Non-Executive Chairman with effect from 8 June 2023.
2 Ms Stoney was appointed Executive Director – Finance on 8 June 2023. No executive contract was in place for her previous position as Non-
Executive Director.
3 Mr Fotios was appointed CEO on 8 June 2023. His appointment was effected via a variation to an existing services agreement between the
Company and Obsidian Metals Group Pty Ltd (“Obsidian”), an entity associated with Ms Stoney.
4
5
6
In accordance with her ESA, Ms Barnes (or her nominee) was entitled to be issued the below securities, which were issued on 22 December 2022
following shareholder approval at the Company’s Annual General Meeting on 29 November 2022:
(a) 2,000,000 fully paid ordinary shares in the Company, subject to the Company completing the acquisition of the Poona Project;
(b) 2,000,000 $0.12 options expiring 4 years after the date of issue, vesting upon the shares of the Company achieving a 5-day volume-weighted
average price of $0.15 per share;
(c) 3,000,000 $0.12 options expiring 4 years after the date of issue, vesting upon the Company acquiring a new project in addition to its existing
projects (vested immediately upon the acquisition of the Youanmi Project); and
(d) 3,000,000 $0.12 options expiring 4 years after the date of issue, vesting upon the Company acquiring a second new project in addition to its
existing projects.
In accordance with her ESA, Ms Stoney (or her nominee) is entitled to be issued the below securities, subject to shareholder and/or regulatory
approval:
Long term incentives
(a) 500,000 $0.00 options expiring 2 years after the date of issue, subject to Ms Stoney providing 12 months of continuous service to the Company
from the commencement date of the ESA;
(b) 500,000 $0.00 options expiring 3 years after the date of issue, subject to Ms Stoney providing 24 months of continuous service to the Company
from the commencement date of the ESA; and
(c) 500,000 $0.00 options expiring 4 years after the date of issue, subject to Ms Stoney providing 36 months of continuous service to the Company
from the commencement date of the ESA.
Short term incentives
Up to 100% of annual base salary depending on the achievement of annual stipulated milestones, to be issued in cash or shares (subject to
shareholder approval where applicable) at the election of the Company.
In accordance with the provisions of the services agreement in respect of Mr Fotios’ services, Obsidian (or its nominee) is entitled to be issued the
below securities, subject to shareholder and/or regulatory approval:
Long term incentives
(a) 3,000,000 $0.00 options expiring 2 years after the date of issue, subject to Mr Fotios providing 12 months of continuous service to the Company
from the commencement date of Mr Fotios’ services as CEO;
(b) 3,000,000 $0.00 options expiring 3 years after the date of issue, subject to Mr Fotios providing 24 months of continuous service to the Company
from the commencement date of Mr Fotios’ services as CEO;
(c) 3,000,000 $0.00 options expiring 4 years after the date of issue, subject to Mr Fotios providing 36 months of continuous service to the Company
from the commencement date of Mr Fotios’ services as CEO;
(d) 7,000,000 $0.12 options expiring 24 months after the date of issue, subject to the Company announcing a binding Strategic Partner agreement,
or the shares of the Company achieving a 5-day volume-weighted average price of $0.15 per share;
(e) 7,000,000 $0.12 options expiring 36 months after the date of issue, subject to the Company announcing the receipt of Strategic Partner Stage 1
funding, or the shares of the Company achieving a 5-day volume-weighted average price of $0.25 per share; and
(f) 7,000,000 $0.12 options expiring 48 months after the date of issue, subject to the Company announcing a JORC-compliant Mineral Resource of
at least 10,000,000 tonnes of Li2O, or the shares of the Company achieving a 5-day volume-weighted average price of $0.35 per share;
Short term incentives
Up to 100% of annual fee depending on the achievement of annual stipulated milestones, to be issued in cash or shares (subject to shareholder
approval where applicable) at the election of the Company.
16
Non-Executive Director remuneration
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.
Shareholdings of Directors
Balance
1 July 2022
Granted as
remuneration
On exercise of
options
Other
changes 1
Balance
30 June 2023
Bronwyn Barnes
Kate Stoney
Michael Kitney
17,868,250
-
-
17,868,250
2,000,000
-
-
2,000,000
-
-
-
-
-
5,000,000
-
-
19,868,250
5,000,000
-
24,868,250
1 During the year, Ms Stoney became director and shareholder (non-beneficial) in Obsidian Metals Group Pty Ltd, which
held 5,000,000 ordinary shares at the reporting date.
Option holdings of Directors
Bronwyn Barnes
Kate Stoney
Michael Kitney
Balance
1 July 2022
3,750,000
3,000,000
-
6,750,000
Granted as
remuneration
8,000,000
-
2,000,000
10,000,000
On exercising
of options
-
-
-
-
Other
changes 1
-
101,500,000
-
101,500,000
Balance
30 June 2023
11,750,000
104,500,000
2,000,000
118,250,000
1 During the year, Ms Stoney became director and shareholder (non-beneficial) in Obsidian Metals Group Pty Ltd, which
held 101,500,000 unlisted options at the reporting date.
Share-based compensation
On 22 December 2022, Ms Barnes was issued 2,000,000 fully paid ordinary shares in the Company and 8,000,000
unlisted options in various classes and with various vesting conditions, in accordance with the terms of her Executive
Services Agreement disclosed above. On the same date, Mr Kitney was issued 1,000,000 $0.15 unlisted options in the
class expiring 22 December 2024 and 1,000,000 $0.20 unlisted options in the class expiring 22 December 2024. On the
same date, Obsidian Metals Group Pty Ltd (“Obsidian”), an entity of which Ms Stoney is a director, was issued
100,000,000 $0.12 unlisted options in the class expiring 22 December 2026, subject to various conditions. For the
avoidance of doubt, Ms Stoney has no beneficial interest in the options issued to Obsidian.
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 23
30 June 22
30 June 21
30 June 20
30 June 19
30 June 18
$
Revenue
210,000
Net (loss) / profit before tax
(3,243,338)
$
960,000
(943,545)
$
$
$
$
-
-
-
-
(2,236,709)
(818,849)
(2,644,232)
(294,916)
Share price at reporting
date
0.088
0.071
0.061
0.045
0.004
0.024
Voting and comments made at the Group’s 2022 Annual General Meeting
At the Annual General Meeting of the Company held on 29 November 2022, 99.97% of votes cast support the adoption of
the Company’s Remuneration Report for the year ended 30 June 2022 (2021: 99.95%). No comments were received at the
meeting in respect of the Group’s remuneration policy.
END OF AUDITED REMUNERATION REPORT
17
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
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 July 2022 to the date of this report:
Balance at 1 July 2022
Movements of share options during the year
12 Oct 2022: Exercise of $0.00 T2 ESIP options in the class expiring 5 September 2024
12 Oct 2022: Exercise of $0.00 T1 ESIP options in the class expiring 22 April 2024
12 Oct 2022: Exercise of $0.00 T2 ESIP options in the class expiring 22 April 2025
22 Dec 2022: Issue of $0.12 advisor options in the classes expiring 22 December 2026
22 Dec 2022: Issue of $0.12 executive chairman options in the classes expiring 22 December 2026
22 Dec 2022: Issue of $0.15 director options in the class expiring 22 Dec 2024
22 Dec 2022: Issue of $0.20 director options in the class expiring 22 Dec 2024
22 Dec 2022: Issue of $0.12 lead manager options in the class expiring 22 Dec 2022
5 Apr 2023: Issue of $0.00 T3 ESIP options in the class expiring 22 April 2026
Total number of options outstanding as at the date of this report
Number of options
32,250,000
(1,375,000)
(250,000)
(250,000)
100,000,000
8,000,000
1,000,000
1,000,000
6,000,000
1,375,000
147,750,000
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 officers liability insurance policy for a 12-month period commencing 7 February
2022 for a total premium of $26,010 (30 June 2021: $19,500) and renewed the policy on 28 February 2023 for a 12-month
period for a total premium of $25,054.
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.
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.
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.
18
The 2023 Corporate Governance Statement is dated as at 30 June 2023 and reflects the corporate governance practices in
place throughout the 2023 financial year. A copy of the Company’s 2023 Corporate Governance Statement can be
accessed at the Company’s website.
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.
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 totalling $6,000 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
the following page.
Signed in accordance with a resolution of the Directors, and on behalf of the Board by,
Bronwyn Barnes
Non-Executive Chairman
29 September 2023
19
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 2023, 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
29 September 2023
20
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
REVENUE
Sales of mineral rights
Dividend income
Other income
OPERATING EXPENSES
Director fees
Share based payments – directors
Share based payments – other
Exploration expenses
Occupancy expenses
Other expenses
Operating loss
FINANCIAL EXPENSES
Gain/(loss) on financial instruments
Interest income
Interest expense
Finance costs - net
Loss before income tax
Income tax benefit/(expense)
Loss after income tax for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Notes
2023
$
2022
$
-
960,000
210,000
-
-
270
23
23
(237,294)
(195,009)
(230,786)
(338,752)
(1,155,524)
(307,402)
(384,745)
(712,120)
(30,250)
(36,000)
2
(1,041,216)
(539,417)
(2,869,815)
(1,168,430)
3
3
4
(309,600)
300,000
7,585
690
(70,235)
(75,805)
(372,250)
224,885
(3,243,338)
(943,545)
-
-
(3,243,338)
(943,545)
-
-
(3,243,338)
(943,545)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF
SCORPION MINERALS LIMITED
12
(3,243,338)
(943,545)
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
(0.93)
(0.93)
(0.33)
(0.33)
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.
21
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION AS AT 30 JUNE 2023
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Financial assets at fair value through profit and loss
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
2023
$
2022
$
5
6
7
389,093
2,102,432
231,339
167,879
-
1,260,000
620,432
3,530,311
8
4,351,476
2,060,027
4,351,476
2,060,027
4,971,908
5,590,338
9
10
(1,079,985)
(707,515)
(904,810)
(1,196,682)
(1,984,795)
(1,904,197)
(1,984,795)
(1,904,197)
NET ASSETS / (LIABILITY)
2,987,113
3,686,141
EQUITY
Contributed equity
Accumulated losses
Reserves
TOTAL EQUITY
11
12
13
28,400,089
27,302,319
(27,825,936)
(24,585,598)
2,412,960
969,420
2,987,113
3,686,141
The above Consolidated Statement of Financial Position should be read
in conjunction with the Notes to the Consolidated Financial Statements.
22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED
Balance 1 July 2022
Note
Contributed
Equity
Accumulated
Losses
Total
Equity
Share-
based
Payments
Reserve
27,302,319
(24,585,598)
969,420
3,686,141
Loss for the year
12
Total comprehensive loss for the year
-
-
(3,243,338)
(3,243,338)
-
-
(3,243,338)
(3,243,338)
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 2023
CONSOLIDATED
Balance 30 June 2021
11
1,158,000
-
-
-
1,158,000
1,386,310
1,386,310
-
3,000
(3,000)
133,750
(193,980)
-
-
(133,750)
193,980
-
-
-
28,400,089
(27,825,936)
2,412,960
2,987,113
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
Transfer on exercise/lapse of options
Balance 30 June 2022
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
The above Consolidated Statement of Changes in Equity should be read
in conjunction with the Notes to the Consolidated Financial Statements.
23
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Dividends received
Payments to suppliers and employees
Payments for exploration
Interest received
Interest paid
Notes
2023
$
2022
$
1,760
210,000
-
-
(966,329)
(1,314,562)
(1,449,756)
(712,120)
7,585
(122,787)
-
436
Net cash outflow from operating activities
24
(2,319,527)
(2,026,246)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of listed investments (net of costs)
Payments for exploration assets
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
950,400
(104,892)
845,508
-
(239,320)
(239,320)
(1,713,339)
2,102,432
389,093
-
-
-
4,044,805
(50,000)
3,994,805
1,968,559
133,873
2,102,432
The above Consolidated Statement of Cash Flows should be read
in conjunction with the Notes to the Consolidated Financial Statements
24
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 $3,243,338 (2022: loss of $943,545) and incurred cash outflows from operating
activities of $2,319,527 (2022: $2,026,246) for the year ended 30 June 2023. At that date the Group had a working capital
deficit of $1,364,363 (2022 deficit: $1,626,114) and net assets of $2,987,113 (2022: $3,686,141). This included current
liabilities of $1,079,985 (trade and other payables), and $904,810 (borrowings).
From the $1,079,985 in trade and other payables outstanding at year end, $167,560 are owed to related parties, $190,620
relates to Companies in Liquidation, and $484,582 are owed to other creditors, with $221,713 of the total amount being
overdue or outside agreed payment terms. The balance of trade and other payables includes $221,000 in accrued
expenses and $16,221 in insurance premium funding.
From the $904,810 in borrowings outstanding at year end, $199,864 is owed to Delta Resource Management Pty Ltd (In
Liquidation), $370,030 is owed to Investmet Ltd (In Liquidation), and $334,916 is owed to Azurite Corporation Pty Ltd.
At 30 September 2023, the Group had a cash balance of $389,093.
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
2023 from related entities amounts to $1,325,000.
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.
25
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, its carrying value is written off.
26
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
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 Group recognises a loss allowance for expected credit losses on financial assets which are either measured at
amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon
the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has
increased significantly since initial recognition, based on reasonable and supportable information that is available, without
undue cost or effort to obtain.
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 10.5% for the year ended 30 June 2023.
27
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 costs for projects acquired during the year ended 30 June 2023 have been
capitalised on the basis that activities in these areas have not yet reached a stage that permits reasonable assessment of
the existence of economically recoverable reserves. Exploration and evaluation incurred by the Group on its previously
acquired projects is expensed as incurred.
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.
28
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 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, or other models
as appropriate. 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)
(ii)
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.
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.
29
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.
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 2023, 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
2022.
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 2023.
The Group has reviewed all new Standards and Interpretations that have been issued but are not yet effective for the year
ended 30 June 2023. 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.
30
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 (loss) 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% (2022: 25%)
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
2023
$
105,850
31,500
532,180
225,036
118,070
27,639
941
1,041,216
2023
$
7,585
(309,600)
(302,015)
2022
$
98,569
30,000
126,667
172,622
82,705
23,884
4,970
539,417
2022
$
690
300,000
300,690
2023
2022
(3,243,338)
(810,835)
(943,545)
(235,886)
347,266
124,650
338,919
-
161,558
(75,000)
149,328
-
4,090,569
398,827
4,489,396
3,936,824
(70,000)
3,866,824
31
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
Integrated Client Account receivable
Other receivables
Prepayments
2023
389,093
389,093
2022
2,102,432
2,102,432
2023
2022
126,362
-
104,977
231,339
147,632
1,760
18,487
167,879
As at 30 June 2023, trade receivables that were past due to impaired was nil (2022: 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
Investment
Listed Shares
Opening fair value
Fair value consideration received on sale of mineral rights
Revaluation
Proceeds from disposal of listed shares (before costs)
Closing fair value
Refer to Note 1(f) for further details on fair value estimation.
NOTE 8: CAPITALISED EXPLORATION EXPENDITURE
Capitalised tenement acquisition costs
Opening net book amount
Acquisition costs – Poona Project
Acquisition costs – Youanmi Project
Capitalised exploration expenditure – Poona Project
Capitalised exploration expenditure – Youanmi Project
Closing net book amount
2023
2022
-
-
1,260,000
1,260,000
1,260,000
-
(300,000)
(960,000)
-
960,000
300,000
-
-
1,260,000
2023
2022
2,060,027
2,060,027
798,000
464,892
227,660
800,897
-
-
-
-
4,351,476
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(j) for further details.
32
NOTE 9: TRADE AND OTHER PAYABLES
Trade payables
Insurance premium funding
Accrued expenses
2023
842,763
16,222
221,000
1,079,985
2022
687,515
-
20,000
707,515
Details about the Group’s exposure to risks arising from current and non-current liabilities are set out in Note 15.
NOTE 10: BORROWINGS
On 17 October 2018, the Group entered into a loan facility agreement with Mr Michael Fotios (a former Director of the
Company) and associated entities (together, “Lenders”), incorporating various existing and preceding loan agreements
between the parties. Mr Fotios was appointed CEO of the Company on 8 June 2023.
The agreement, as varied on various occasions, provides for the Lenders to provide a loan facility to the Group of up to
$2,500,000, repayable at an interest rate of 8% per annum. The loan facility is in place until 1 April 2024. 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 or if repayments are made in cash.
The undrawn loan facility balance available to the Company at 30 June 2023 was $1,324,663. There was no further
drawdown on the loan facility during the period. The below table summarises amounts repayable under the loan facility:
Lender
Azurite Corporation Pty Ltd
Delta Resource Management Pty Ltd (In Liquidation)
Helios Corporation Pty Ltd
Investmet Limited (In Liquidation)
2023
$
334,916
199,864
-
370,030
904,810
2022
$
317,220
187,650
336,334
349,712
1,190,916
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
Issued capital at start of period
Shares issued during period (a)
Shares to be issued (b)(i)
Capital raising costs
Total Contributed Equity
Issued Capital
Issued capital at start of period
Shares issued during the period
Shares to be issued (b)(i)
Capital raising costs
Total Contributed Equity
2023
Number
331,831,192
13,875,000
11,000,000
-
356,706,192
2022
Number
246,017,859
85,813,333
11,000,000
-
$
26,656,289
1,291,750
2,200,000
(193,980)
28,400,089
$
20,674,964
4,689,575
2,200,000
(262,220)
342,831,192
27,302,319
(i)
The above shares to be issued represents deferred consideration payable under the Mt Mulcahy Sale Agreement.
33
(a) Movements in fully paid ordinary shares
Details
Balance 30 June 2022
Issued during the period
Balance 30 June 2023
(b) Movements in shares to be issued
Details
Balance 30 June 2022
Issued during the period
Balance 30 June 2023
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
Transfer on exercise of options
Issue of unlisted options at fair value through profit and loss
Issue of unlisted options credited against share capital
Balance at end of year
Number
331,831,192
13,875,000
345,706,192
$
25,364,539
1,291,750
26,656,289
Number
$
11,000,000
2,200,000
-
-
11,000,000
2,200,000
2023
(24,585,598)
(3,243,338)
3,000
2022
(23,801,988)
(943,545)
159,935
(27,825,936)
(24,585,598)
2023
2022
969,420
(3,000)
(133,750)
1,386,310
193,980
2,412,960
579,452
(159,935)
-
549,903
-
969,420
Nature and purpose of reserves
The share-based payments reserve is used to recognise the fair value of options issued to Directors, employees and
contractors of the Company, and for the acquisition of assets.
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)
2023
2022
(3,243,338)
(943,545)
(0.93)
(0.93)
(0.33)
(0.33)
349,479,258
284,521,247
The loss for the year means that the potential ordinary shares on issue are anti-dilutive.
34
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
2023
$
389,093
231,339
620,432
2022
$
2,102,432
167,879
2,270,311
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
2023
$
2022
$
231,339
167,879
389,093
620,432
2,102,432
2,270,311
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.
35
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 2023
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
1,079,985
1,079,985
1,079,985
Borrowings
904,810
904,810
904,810
1,984,795
1,984,795
1,984,795
30 June 2022
Carrying
amount
Contractual
cash flows
6 months
or less
6-12
months
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
-
-
-
-
-
-
-
-
-
1-2 years
2-5 years
More than
5 years
-
-
-
-
-
-
-
-
-
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 Group’s income or the value of its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
Sensitivity analysis
If the interest rates had weakened/strengthen by 10% (based on forward treasury rates) at 30 June 2023, 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.
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.
36
2023
Financial Assets
Cash and cash equivalents
Trade and other receivables
Net Financial Assets
Financial Liabilities
Trade and other payables and borrowings
2022
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
$
-
-
-
389,093
-
389,093
-
231,339
231,339
389,093
231,339
620,432
904,810
904,810
-
-
1,079,985
1,079,985
1,984,795
1,984,795
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
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.
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.
37
Commitment contracted for at balance date but not recognised as liabilities are as follows:
Within one year
2023
$
2022
$
961,221
961,221
595,440
595,440
NOTE 18: EVENTS OCCURRING AFTER THE REPORTING PERIOD
No matter or circumstance has arisen since the end of the audited period which significantly affected or may significantly
affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial
periods.
NOTE 19: AUDITOR’S REMUNERATION
Amount paid or payable to Rothsay Audit & Assurance Pty Ltd
Taxation services
2023
$
2022
$
31,500
6,000
37,500
30,000
5,000
35,000
NOTE 20: DIVIDENDS
There were no dividends declared or paid during the year ended 30 June 2023 (2022: nil).
NOTE 21: RELATED PARTY TRANSACTIONS
Summarised Compensation of Key Management Personnel
(a)
Short-term employee benefits
Post-employment benefits
(b) Other Transactions with Key Management Personnel
2023
$
2022
$
588,453
11,200
599,653
531,202
2,559
533,761
Related party transactions
The Company has entered into a services agreement with Target Exploration Pty Ltd (“Target”), an entity of which Ms Kate
Stoney (a Director of the Company) is a director, for the provision of various services, including those of Mr Michael Fotios
as Chief Executive Officer of the Company. During the period, amounts payable to Target in respect of Mr Fotios’ CEO
services totalled $32,230. Target also provided finance and administration services to the value of $33,500 and technical
consulting services to the value of $360,155 during the period. Additionally, Obsidian Metals Group Pty Ltd (“Obsidian”),
another entity of which Ms Stoney is a director, provided project generation services to the value of $24,998 and corporate
consulting services to the value of $50,000 during the period.
These transactions are based on normal commercial terms and conditions and are undertaken at arm’s length. For the
avoidance of doubt, Ms Stoney has no beneficial interest in the Company’s contractual arrangements with Target or
Obsidian.
Related party creditors and loans
As at 30 June 2023, there was a balance of $167,560 payable to related party creditors (2022: $407,339 exclusive of GST),
the details of which are noted in the Audited Remuneration Report above.
On 26 October 2018, the Company entered into a loan facility agreement with Mr Michael Fotios, a former Director of the
Company. Mr Fotios was appointed CEO of the Company on 8 June 2023. Further information relating to loans is set out in
Note 10.
38
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
2023
%
2022
%
2023
$
2022
$
100
100
100
100
700,000
(700,000)
168,000
(168,000)
-
700,000
(700,000)
168,000
(168,000)
-
Scorpion Minerals Limited, Scorpion Metals 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 2023 the Company issued options to Directors, employees and contractors of the
Company under the Company’s Employee Share Incentive Plan (ESIP), as approved. Share based payments are
recognised in the profit and loss statement, or credited against issued capital. In the reporting period, share-based
payments to the value of $1,386,310 were expensed through profit and loss (2022: $646,153), and share-based payments
to the value of $193,980 were credited against issued capital (2022: nil).
The fair value of the options has been calculated using the Black-Scholes and Monte Carlo option pricing models (where
applicable). The model inputs are shown in the table below:
Share
price at
grant date
($)
Number of
options
granted in
period
Risk-free
interest
rate
Value taken
up ($)
Exercise
price
Date of
expiry
Date of issue
Volatility
($)
15 Sep 2021 1
15 Sep 2021 2
22 Apr 2022 1
22 Apr 2022 2
22 Dec 2022 3
22 Dec 2022 4
22 Dec 2022 5
22 Dec 2022 6
22 Dec 2022 7
22 Dec 2022 8
22 Dec 2022 3
22 Dec 2022 4
15 Sep 2024
15 Sep 2025
22 Apr 2025
22 Apr 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2026
22 Dec 2022
22 Dec 2024
22 Dec 2022
22 Dec 2024
22 Dec 2022
5 Apr 2023 2
22 Dec 2024
22 Apr 2026
0.00
0.00
0.00
0.00
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.12
0.15
0.20
0.12
0.00
0.070
0.070
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.075
0.066
0.06%
0.06%
1.00%
1.00%
3.18%
3.18%
3.18%
3.18%
3.18%
3.18%
3.18%
3.18%
3.13%
3.13%
3.13%
3.14%
75%
75%
75%
75%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
75%
-
-
-
-
10,000,000
10,000,000
20,000,000
20,000,000
40,000,000
2,000,000
3,000,000
3,000,000
1,000,000
1,000,000
6,000,000
1,375,000
17,276
47,383
26,846
39,965
473,435
61,569
115,593
114,374
211,203
18,378
142,031
18,471
28,392
23,514
193,980
47,880
117,375,000
1,580,290
39
Notes
1)
2)
3)
4)
5)
6)
7)
8)
Options in this class were 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 was 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 acquire a new project introduced by the
recipients in addition to the Company’s existing projects at the date of grant. Options in this class vested upon issue
in accordance with the Company’s acquisition of the Youanmi Project.
Options in this class are subject to the vesting condition that the Company acquire a second new project introduced
by the recipients in addition to the Company’s existing projects at the date of grant.
Options in this class are subject to the vesting condition that the Company either announces a Mineral Resource (as
defined in the JORC Code) of at least 10 million tonnes at 1% Li2O (or equivalent) on a project introduced by the
recipient, or that the 5-day volume-weighted average price of the Company’s shares exceeds $0.15.
Options in this class are subject to the vesting condition that the Company either announces a Mineral Resource (as
defined in the JORC Code) of at least 20 million tonnes at 1% Li2O (or equivalent) on a project introduced by the
recipient, or that the 5-day volume-weighted average price of the Company’s shares exceeds $0.25.
Options in this class are subject to the vesting condition that the Company either announces a Mineral Resource (as
defined in the JORC Code) of at least 50 million tonnes at 1% Li2O (or equivalent) on a project introduced by the
recipient, or that the 5-day volume-weighted average price of the Company’s shares exceeds $0.35.
Options in this class are subject to the vesting condition that the 5-day volume-weighted average price of the
Company’s shares exceeds $0.15.
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
2023
$
2022
$
389,093
2,102,432
Operating loss after tax
Interest
Share based payment expenses
Gain on sales of mineral rights
Finance (income)/loss
Changes in assets and liabilities
Increase/(decrease) in exploration and evaluation assets
(Increase)/decrease in trade and other receivables
Increase/(decrease) in borrowings
Increase/(decrease) in trade and other payables
Net cash (used in) operating activities
There were no non-cash financing and investing activities (2022: nil)
(3,243,338)
-
1,386,310
-
309,600
(789,327)
(63,460)
(291,872)
372,470
(2,319,527)
(943,545)
75,805
307,402
(960,000)
(300,000)
-
34,125
(75,550)
(164,483)
2,026,246
40
NOTE 25: SCORPION MINERALS LIMITED PARENT COMPANY INFORMATION
2023
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Trade payables
Borrowings
TOTAL LIABILITIES
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
FINANCIAL PERFORMANCE
(Loss) for the year
GUARANTEES ENTERED INTO BY THE PARENT ENTITY
$
620,268
5,598,339
6,218,607
1,079,985
234,627
1,314,612
2022
$
2,269,432
4,209,387
6,478,819
707,515
226,122
933,637
28,400,089
2,412,960
(25,909,054)
4,903,995
27,302,319
969,420
(22,726,557)
5,545,182
(3,185,497)
(880,838)
As at 30 June 2023, the Company has not provided any financial guarantees in relation to the debts of its subsidiaries.
NOTE 26: CONTINGENT ASSETS AND LIABILITIES
As at 30 June 2023, the Group has no contingent liabilities (2022: nil).
Deferred consideration for project acquisitions
The Company acquired the Mount Mulcahy Copper Project from Black Raven Mining Pty Ltd in 2012 (refer ASX release
19 July 2012). Deferred consideration is payable in relation to the project acquisition, comprising 4,000,000 fully paid
ordinary shares in the Company upon the definition of a JORC-compliant resource of 50,000 tonnes of contained copper
metal (or equivalent) and 7,000,000 fully paid ordinary shares in the Company upon the definition of a JORC-compliant
resource of 100,000 tonnes of contained copper metal (or equivalent).
The Company acquired the Poona Project from eMetals Ltd in 2022 (refer ASX release 7 February 2022). Deferred
consideration is payable in relation to the project acquisition, comprising two performance payments of $50,000 payable to
Venus Metals Corporation Ltd on the definition of inferred and probable JORC-compliant resources of 200,0000 tonnes of
Li2O (or equivalent), respectively.
The Company acquired a binding option to acquire the Youanmi Lithium Project from Diversity Resources Pty Ltd in 2022
(refer ASX release 19 December 2022). The Company must pay $3,500,000 to complete the acquisition and grant a royalty
of $1/tonne of ore mined and processed or removed from the tenements (as defined in the option agreement).
The Company has not recognised any liabilities in relation to the above deferred consideration as the outcomes of the
project milestones are not certain and do not meet the recognition requirements of AASB 137.
41
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
1.
2.
3.
4.
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 2023 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 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.
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
Non-Executive Chairman
29 September 2023
42
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 2023,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended 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 2023 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.
Emphasis of Matter - Material Uncertainty Related to Going Concern
We draw attention to Note 1 (a) to the financial report which describes events and conditions which give
rise to the existence of a material uncertainty that may cast significant doubt about the Group’s ability to
continue as a going concern and therefore that the Group may be unable to realise its assets and discharge
its liabilities in the normal course of business. Our opinion is not modified in respect of this matter.
43
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key Audit Matter – Capitalised Exploration
Expenditure
The Group has significant capitalised exploration
and evaluation expenditure of $4,351,476 which
represents a significant asset to the Group.
that assessment
We note
impairment
capitalised exploration and evaluation expenditure
is subject to a significant level of judgement.
for
How our Audit Addressed the Key Audit Matter
Our procedures in assessing exploration expenditure
included but were not limited to the following:
We reviewed the ownership rights to the
tenements, against which the expenditure is
capitalised, their expiry dates and if required
commitments were met;
We assessed the reasonableness of capitalising
exploration and evaluation expenditure
in
accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources;
We tested a sample of exploration and
supporting
expenditure
evaluation
documentation to ensure they were bona fide
payments;
to
We
assessed
of
management’s assessment for the existence
impairment indicators; and
reasonableness
the
We reviewed the appropriateness of the related
disclosures in Note 8.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2023, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance 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.
44
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
SCORPION MINERALS LIMITED (continued)
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.
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.
45
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 2023.
In our opinion the remuneration report of Scorpion Minerals Limited for the year ended 30 June 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Audit & Assurance Pty Ltd
Daniel Dalla
Director
Dated 29 September 2023
46
ADDITIONAL INFORMATION
Additional Information for Listed Public Companies
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 2023.
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
40
79
136
430
367
1,052
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
6,420
256,642
1,134,666
19,283,091
325,025,373
345,706,192
0.00%
0.07%
0.33%
5.58%
94.02%
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
31,517,850
Percentage
9.01%
Holders
191
Units
759,580
Percentage
0.22%
Twenty largest shareholders – Ordinary Shares
Shareholder Name
DELTA RESOURCE MANAGEMENT PTY LTD
DELTA RESOURCE MANAGEMENT PTY LTD
INVESTMET LTD
MS BETTY JEANETTE MOORE + MR PHILIP COLIN HAMMOND
18 ORBIT DRILLING PTY LTD
19 MR JOHN JANSEN + MRS DALE JANSEN
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