C ATA L I N A R E S O U R C E S LT D
(Formerly Shree Minerals Limited)
ACN 130 618 683
2023 ANNUAL REPORT
C A T A L I N A R E S O U R C E S L T D
TABLE OF CONTENTS
Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Information
Corporate Governance Statement
1
2
30
31
32
33
34
35
60
61
65
67
C O R P O R A T E D I R E C T O R Y
DIRECTORS
Sanjay Loyalka
Richard Beazley (appointed 2/8/2022)
Michael Busbridge (appointed 19/1/2023)
COMPANY SECRETARY
Sanjay Loyalka
REGISTERED OFFICE
Unit 38
18 Stirling Highway
Nedlands WA 6009
Ph: (08) 61181672
Email: info@catalinaresources.com.au
Website: www.catalinaresources.com.au
AUDITOR
Stantons
Level 2, 40 Kings Park Road
West Perth WA 6005
Ph: (08) 94813188
Fax: (08) 93211204
SHARE REGISTRY
Boardroom Pty Limited
Level 8
210 George Street
Sydney NSW 2000
Ph: (02) 92909600
Fax: (02) 92790664
.
Page 1
D I R E C T O R S ’ R E P O R T
The Directors present this report together with the financial report of Catalina Resources (formerly Shree
Minerals Limited), (“CTN”, “Catalina” and/or “the Company”) for the year ended 30th June 2023.
DIRECTORS
The names of the Directors in office during the financial year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Sanjay Loyalka
Amu Shah (retired 28/11/2022)
Davide Bosio (resigned 19/1/2023)
Richard Beazley (appointed 2/8/2022)
Michael Busbridge (appointed 19/1/2023)
COMPANY SECRETARY
Sanjay Loyalka
PRINCIPAL ACTIVITIES
The principal activities of the Company during the financial year consisted of mineral exploration, development,
and mining.
OPERATING RESULTS
The net loss of the Company after providing for income tax amounted to $1,431,533 (2022: net profit $131,370).
The loss of FY 2023 is mainly due to:
–
–
–
loss on fair valuation of financial asset of $427,500, being shares of MetalsGrove which were received as
consideration for sale of interest in Arunta Joint Venture which resulted in gain in FY 2022 of $785,076;
Impairment of exploration assets of $ 115,590 due to relinquishment of tenements; and
Impairment of mine development asset of $231,070 due to ongoing delays in the permitting process of
Nelson Bay River Iron project and consequent uncertainty about the timing of re-commencement of the
project.
DIVIDENDS PAID OR RECOMMENDED
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of
a dividend to the date of this report.
REVIEW OF OPERATIONS AND ACTIVITIES
Highlights:
Nelson Bay River Iron Ore Project
•
•
Progressing re-permitting of the direct shipping ore (“DSO”) project at Nelson Bay River Iron Project
(“NBR”)
the Company continues to engage with relevant stakeholders to progress the NBR project. Catalina is
encouraged by the visit to NBR mine by Hon. Felix Ellis, Minister for Resources, Tasmania in March 2023.
• Referral Application under EPBC Act lodged in early June 2023 following completion of an additional
targeted Autumn Fauna Survey in April 2023 and report received in May 2023.
•
Lodged in early August 2022, Development Proposal and Environmental Management Plan (“DPEMP”)
Supplement No. 2 in response to "Request for Additional Information (“RFI”) – Waste Rock and Mine
Closure" issued by EPA in late June 2022.
Lachlan Fold Belt Project
•
Soil and rock chip assays outline a robust southwest orientated anomaly exceeding 600m in strike
length at EL9346, Oak Hill
o Assays up to 1.4 g/t Au, 28 g/t Ag, 0.44% Pb and 1.27% As have been received from rock chips.
o
Southwestern extension of a mineralised trend in a neighbouring tenement (EL 7544) that
contains two gold resources with a combined JORC Mineral Resource of 154koz Au ( EL7544 is
not owned by Catalina- refer Company’s ASX announcement of 8th February 2022).
Page 2
D I R E C T O R S ’ R E P O R T
•
•
Follow up studies including RC drill planning underway at EL9346, Oak Hill.
Landholder Access Agreement negotiated and executed at EL9346, Oak Hill, with one landowner for a
part of the tenement.
• During the year completed activities agreed to enable consideration of revoking of suspension at
EL9155, Rock Lodge:
o
Independent review of compliance systems.
o Biodiversity Assessment.
o Report on the findings, recommendations and corrective actions arising from these reviews.
o Aboriginal cultural heritage assessment.
o Application lodged for Aboriginal Heritage Impact Permit.
• Resources Regulator, NSW has in July 2023 accepted the Mining Act Enforceable Undertaking (“EU”) by
Catalina Resources Ltd, concerning EL9155, Rock Lodge.
Laverton Project
• Access Agreements negotiated and executed with following parties having existing tenements
(miscellaneous licence) over parts of areas within our ELAs:
o
Focus Minerals (Laverton) Pty Ltd
o Murrin Murrin Operations Pty Ltd
o GSM Mining Company Pty Ltd
• Heritage Agreement negotiated and executed with NTS Goldfields Limited as agent for the Nyalpa
Pirniku, native title party.
•
Pursuing access agreements with another adjacent tenement owner having existing tenements
(miscellaneous licence) over parts of the area within our ELAs.
Dundas Project
• Air core re-splits from the maiden air core drilling program in the southern part of E63/2046 at Dundas
project reveal assays exceeding 1% TREO (total rare earth element oxides).
• Hole 22DAC095 intersected 3m @ 0.92% TREO, including 1m @ 1.78% TREOs. Adjacent holes (100m
apart) are also very anomalous. Hole 22DAC066 intersected 2m @ 1.02% TREOs. This hole also
contained 2m @ 0.18% TREO in the bedrock at the EOH.
• Very high Nd₂O₃ assays received with up 0.35% intersected in 22DAC095 and 0.23% in hole 22DAC066.
•
•
Latest assays confirm a valuable Heavy Rare Earth Elements ratio of 19% HREO/TREO and critical
magnet metals NdPr + DyTb ratio of 24% of total REE’s.
Pursuing follow up exploration studies, drill planning including regulatory approvals for next stage of
exploration including Conservation Management Plan (“CMP”) including:
o Deeper follow up drilling near the air core drilling done in FY 2023.
o Testing of lithium pegmatite potential identified in the northern part of E63/2046 at Dundas
Project where previous drilling intersected pegmatites that have not been assayed for lithium.
Dundas Project is interpreted to possibly be along strike from Liontown Resources’ Anna
Lithium Resource
Business Development
•
Catalina is continuing to identify and assess exploration and early development opportunities in lithium,
rare earths, gold and base metals projects.
Page 3
D I R E C T O R S ’ R E P O R T
Nelson Bay River Iron Project
Catalina is pleased to advise that it lodged a Referral Application under the Environment Protection and
Biodiversity Conservation Act, 1999 (EPBC Act), in early June 2023. This follows advice received from the
Department of Climate Change, Energy, the Environment and Water (“DCCEEW” and or “The Department”) that
they consider the development proposal would likely require “Referral” for a new assessment under the EPBC
Act.
Prior to lodgement of the referral application, an additional targeted autumn fauna survey was completed in
April 2023 and consequential engineering designs for the mitigation strategies were completed in May 2023.
The Department has advised that it has successfully received and completed validation of our Referral
Application (EPBC 2023/09571) regarding the NBR DSO Project for consideration under the Environment
Protection and Biodiversity Conservation Act 1999 (EPBC Act). Information about this proposed action has been
published on the Department’s website for public consultation on 16th August 2023 for comments till 30th August
2023. At the end of the consultation period, the information included in the referral, along with any comments
received, will be used to help decide whether this proposed action:
•
•
•
is a controlled action (one that is likely to have a significant impact on matters protected under the
EPBC Act and therefore needs to be assessed and approved by the Minister for the Environment and
Energy before it can proceed), or
is not a controlled action and may be undertaken but only as described in the referral, or
does not require approval under the EPBC Act.
As per previous company announcements, the State Government’s process is advanced, and the process was put
on hold until the resolution of the EPBC issues. The DPEMP version of August 2021 was accepted by EPA
Tasmania to have been compliant with the guidelines and the public consultation process was completed in
February 2022, with subsequent RFIs responded by way of supplementary DPEMPs.
On that basis, the Company hopes to be in a position to consider the decision for recommencement of the mine
once the permitting process is completed. The Company remains committed to driving value for Shareholders
and look forward to updating the market as it continues to progress this advanced junior iron ore project
towards recommencement in a very strong macro environment for producers.
Meanwhile, the Company continues to engage with relevant stakeholders to progress the NBR project. Catalina
is encouraged by the visit to NBR mine by Hon. Felix Ellis, Minister for Resources, Tasmania in March 2023.
Photos: Hon. Felix Ellis, Minister for Resources, Tasmania at NBR project, March 2023.
The NBR Project (Mining Lease 3M/2011) is located in the far north-west of Tasmania and is approximately
150km from the Burnie Port. The Project is within an established mineral province in the region. Operating mines
include Grange Resources Ltd’s (ASX: GRR) Savage River Iron Ore.
Page 4
D I R E C T O R S ’ R E P O R T
The Direct Shipping Ore (DSO) project at NBR is an all-contract mining, processing and haulage operation using
local contractors in the region. It requires no major processing beyond crushing and screening after which the
ore is then trucked to the port and shipped. It was developed in 2013 with the first shipment of ore leaving the
Port of Burnie in January 2014. The NBR project was placed on care and maintenance in June 2014 following
sharp iron ore price falls.
Figure 1. Existing development NBR DSO project. (Source: Google Earth)
Historical production from the previous mining campaign totalled 181,000 tonnes shipped with average grades
of Fe 57.5%, SiO2 7.7%, Al2O3 1.3%, P 0.07% and S 0.04%.
The historic price received for NBR ore was enhanced with premiums (in line with market benchmarks) for
low Alumina and Lump (About 40% of the DSO Iron ore at NBR is Lumps with Iron ore Fines being approximately
60%).
Historic costs during FY2014 when the mine was last in production was approximately AUD $72 per tonne FOB
Burnie Port (as derived from 2014 Annual Report to Shareholders).
With the improvement in the iron ore price in recent years, the Company has been actively working to re-permit
the NBR project. The strategy has been to recommence the production of the DSO resources from the existing
open pit at NBR project.
Lachlan Fold Belt Project
Catalina’s Oak Hill Project (EL9346) is located 25 kms northwest of Albury in NSW (Figure 2). It abuts EL7544 on
its eastern side (Figure 2). Within EL7544 the Stoney Park and Elm Park gold prospects, discovered in 2015 by
Minerals Aust Pty Ltd, have a combined JORC 2012 Mineral Resource of 154koz Au.
In April 2023, Catalina collected 15 rock chip samples and 65 soil samples during a regional mapping exercise of
the tenement, EL9346. Best rock chip assays are provided in Table 1 and their locations are illustrated in Figure
3. The rocks are anomalous in a range of elements including Au, As, Ag, Bi, Cu, Pb, Sb and Mo.
Page 5
D I R E C T O R S ’ R E P O R T
Figure 2. Aerial image of Oak Hill. Historical geochemical gold in soil contours overlie a
prominent structure that contains the Elm and Stoney Park gold deposits. Also shown is
the location of Figure 3.
Sample_ID MGA_E MGA_N
198430
198431
198435
198436
198437
198438
198439
198440
198441
198442
481341
6025488
481353
481778
481928
481942
481850
481850
481918
481938
481938
6025473
6024503
6024970
6024980
6024812
6024830
6024980
6024990
6024980
Au
ppb
386
779
513
1390
488
381
146
1400
1020
360
Ag
ppm
5
28
0
0
0
0
0
2
2
1
As
ppm
933
577
32
5210
3410
796
223
8920
12700
3020
Bi
ppm
Cu
ppm
96
48
73
3
1
2
1
0
0
0
232
297
53
70
98
98
13
213
187
55
Pb
ppm
4560
4280
39
108
9
39
23
52
15
11
Sb
ppm
Mo
ppm
222
187
1
64
33
5
9
85
45
25
0
1
26
2
1
18
1
1
1
1
Table 1. Anomalous rock chip assays from EL9346.
Figure 3 is a summary of Catalina’s soil and rock chip sampling geochemistry overlain on the RTP aeromagnetic
image. Outcropping rocks in the area are rare and the undulating terrain is covered by extensive grasslands
suitable for cattle grazing.
Page 6
D I R E C T O R S ’ R E P O R T
Au and As soil contours together with rock chip assay data suggest anomalous geochemistry is present over
600m within EL9346 as illustrated in Figure 3 (green dotted line). Hosting the anomalous geochemistry is a
distinctive and separate NE-SW orientated elliptical aeromagnetic feature. It lends support for an underlying
structure coincident with the soil and rock chip geochemical anomaly. This feature is in an offset position to the
trend of the Stoney Park historical drilling and its magnetic susceptibility is suggestive of a different protolith to
that seen in the historical resources. Possible protolith alternatives include a highly altered granitic intrusive or
porphyry style source rocks.
Additionally, an old gold working (for its location, see callout ‘Rock chip assays from old gold working’ in Figure 3)
revealed rocks with a strongly recrystallized and silicified igneous texture, a rock type unlike that described for
the Elm and Stoney Park deposits. Petrography suggests these rocks are indicative of an igneous petrogenesis
with late stage silicification of feldspars by hydrothermal activity, as evidenced by banding in an alteration
overprint and common clay altered fine veins and groundmass containing sericite and muscovite. Common strain
is recognised through quartz populations and suggests a high strain regime / shear zone.
A feature of these altered rocks is the presence of abundant euhedral arsenopyrite and trace scorodite. Other
sulphides include pyrite and galena. These arsenopyrite rich rocks, also containing anomalous gold, may be the
source of the anomalous soil geochemistry seen in Figure 3 and testing by RC drilling for economic gold
mineralization is a high priority. The company is working on follow up exploration studies including RC drill
planning at Oak Hill.
RC drilling at the Rock Lodge
prospect (EL 9155) in the Lachlan
Fold Belt Project, NSW has
intersected
significant
mineralisation. The Rock Lodge
Project covers an area of 163
km² and is located 35 km south
of Cooma. It is prospective for
orogenic, Intrusion Related Gold
Systems (IRGS) and skarn related
gold mineralisation.
RC drilling completed in April
2022
tested prioritised drill
targets consisting of extensive
and continuous
IP anomalies
that are coincident with very
anomalous soil and rock chip
geochemistry.
Figure 3. Summary diagram of
the rock and soil Au and As
geochemistry within EL9346. The
trend
anomalous
geochemistry is shown by the
green dotted line. Background
image is the Reduced to Pole
(RTP) aero magnetics.
of
Page 7
D I R E C T O R S ’ R E P O R T
Catalina’s drilling has intersected a wide zone of stacked vertical lenses of polymetallic mineralisation at Rock
Lodge. For example, RC hole SRLRC005 intersected four (4) significant mineralised zones over a width of 24m,
from 75m to 99m (including 2m @2.13 g/t Au and another 2m @2.12 g/t Au), illustrated in Table 2. At the end of
hole, 102m, rocks were still pervasively hydrothermally altered (pyrite, silica, sericite) suggesting that additional
downhole zones may have been intersected if excessive water flows had not stopped drilling. West of SRLRC05,
Catalina’s drilling has intersected mineralisation in SRLRC002 (8m @ 1.08 g/t Au including 3m @2.12 g/t Au).
As suggested by the range in elements present, the mineralisation signature suggest a high temperature fluid
may have been responsible. Apart from Au and Ag, the mineralisation includes varying amounts of Bi, As, Cu, Sb,
Pb, Cd and Zn. Table 2 tabulates the significant intersections received from Catalina’s RC drilling.
Table 2. Significant RC drilling Intersections.
The intersections from Catalina’s drill holes SRLRC002 to SRLRC005 and also the historical drilling, including
MYRC01, constitute a very wide (60m) mineralised envelope of stacked vertical lenses of significant polymetallic
sulphide at Rock Lodge. Two hundred meters to the north, IP anomalies and similar anomalous rock chip
geochemical signatures (Figure 4), suggest the mineralisation envelope may be continuous at least to this area.
As the envelope is open in all directions further drilling focusing on the continuity, depth and lateral extent of the
stacked veins is now a very high priority and represents an exciting drill target for Catalina Resources.
Page 8
Hole NoTotal Depth (m)From (m)To (m)Interval (m)IntersectionSRLRC00135111211m @ 3.7 g/t Au, 1.7 g/t Ag, 94 g/t Bi, SRLRC001212211m @ 0.76 g/t Au, 2.1 g/t AgSRLRC002350888m @ 1.08 g/t Au, 4.2 g/t Ag, 0.28% As, 61 g/t BiSRLRC002033incl. 3m @ 2.12 g/t Au, 6.67 g/t Ag, 0.6% AsSRLRC005102757722m @ 2.13 g/t Au, 2.4 g/t Ag, 0.6% As, 54 g/t Bi, 0.07% CuSRLRC005788466m @ 0.75 g/t Au, 0.8% As, 22 g/t Bi, 0.05% CuSRLRC00582842incl. 2m @ 2.12 g/t Au, 2.4 g/t Ag, > 1% As, 0.07% Cu, 0.06% ZnSRLRC005899677m @ 0.33 g/t Au, 1.13 g/t Ag, 0.51% As, 51 g/t Bi, 0.06% Cu, SRLRC00589912incl. 2m @ 0.49 g/t Au, 1.7 g/t Ag, 0.37% As, 60 g/t Bi, 0.13% CuSRLRC005979922m @ 0.78 g/t Au,1.9 g/t Ag, 65 g/t Bi, 0.2% CuSRLRC00650272922m @ 6.1 g/t Ag, 0.26% Pb, 0.5% Zn, 28 g/t CdSRLRC00627281incl. 1m @ 10.6 g/t Ag, 0.44% Pb, 0.88% Zn, 51 g/t Cd
D I R E C T O R S ’ R E P O R T
Figure 4. Summary plan showing significant drilling intersections and RC pre-collars, IP anomalies, rock chip Au
geochemistry and location of drilling cross-section C-C’.
The Company continues progressing activities advised by the Resources Regulator to enable consideration for
revoking the suspension at Rock Lodge EL9155. During the year following activities were completed:
Independent review of compliance systems.
•
• Biodiversity Assessment.
• Report on the findings, recommendations and corrective actions arising from these reviews.
• Aboriginal cultural heritage assessment.
• Application lodged for Aboriginal Heritage Impact Permit.
Resources Regulator, NSW has, in July 2023, accepted the Mining Act Enforceable Undertaking (“EU”) by Catalina
Resources Ltd, concerning alleged contraventions at EL9155, including a minimum expenditure of $141,964 in
carrying out terms of the EU.
After the lifting of the suspension, the Company plans to drill two or three deeper angled diamond drill holes
beneath previously drilled RC holes. Down Hole Electro Magnetic Surveys (DHEM) will also be employed,
searching for off-hole conductors, which may represent wider massive sulphide mineralisation than what has
already been found in the RC drilling. Additionally, diamond drilling will enable the collection of orientated
structural data, including dips and strikes of mineralised veins, necessary for future drill hole planning and
calculations of the true widths of mineralisation. Planning for one of these diamond holes is illustrated in Figure
5. Additionally, diamond drilling will enable the collection of orientated structural data, including dips and strikes
of mineralised veins, necessary for future drill hole planning and calculations of the true widths of mineralisation.
Page 9
D I R E C T O R S ’ R E P O R T
Figure 5. Cross section C-C’ at Rock Lodge, containing SRLRC005, SRLRC002 and the proposed diamond hole. It
illustrates the wide zone (approx. 60m) of polymetallic mineralisation intersected in all drilling, from SRLRC02 to
MYRC001.
Laverton Project
During the year, the Company advanced negotiations for various access agreements with neighbouring
companies and native title parties. Access agreements negotiated and executed with following neighbouring
tenement owners having existing tenements (miscellaneous licence) over parts of areas within our ELAs.
•
Focus Minerals (Laverton) Pty Ltd
• Murrin Murrin Operations Pty Ltd
• GSM Mining Company Pty Ltd
Heritage agreement negotiated and executed with NTS Goldfields Limited as agent for the Nyalpa Pirniku, native
title party.
These access agreements will pave the way for the granting of the Exploration Licences.
Page 10
D I R E C T O R S ’ R E P O R T
The Laverton Project consists of seven tenements, illustrated in Figure 6, located within the world class
Laverton Province. This province is known to contain some 30 million ounces of gold, making it the second
highest endowed gold district in Western Australia behind Kalgoorlie. The Laverton gold district is also the
highest growth gold district in Australia over the last 25 years. The region hosts several important gold and
nickel deposits including Sunrise Dam (>10Moz), Wallaby (> 8Moz), Granny Smith (>2Moz, closed) and
Lancefield (>2Moz, closed), Windara Nickel (combined 85K tonnes nickel sulphide). Lynas Rare Earth also
operates the Mt Weld Rare Earth Element (REE) operation only 2 km to the south of Catalina’s application.
Figure 6. Regional location of the Laverton project.
The company has identified a series of very prospective under-cover gold and nickel mineralised drill targets
within the tenements. The targets have been generated through an integrated approach using detailed
interpretation of aeromagnetic and gravity images, historical exploration drilling programs and the
mineralisation models developed from the neighbouring world class gold deposits.
Exploration plans will be finalised once all the ELAs are granted as ELs. Meanwhile desktop studies are
continuing over the tenements.
Dundas Project
A 105-hole air core drill program was completed at the Dundas Project in December 2022 for a total of
2,909m with an average depth of 27.7m (Figure 7). Air core drilling was completed to blade refusal (rock too
hard to penetrate).
Page 11
D I R E C T O R S ’ R E P O R T
Figure 7. Summary of the highlights of resplit assays from air core drilling. Also illustrated are locations of drill
traverse (A-A’) and soil sampling traverse (B-B’) discussed in text. Underlying image is the regional
aeromagnetic image.
A 6-20m blanket of transported colluvium and lake clays overlies and masks the bedrock geology. To look
below this blanket air core drilling successfully intersected geochemical and lithological information of the
bedrock to plan follow up RC drilling. Essentially the air core work has identified the geochemical halo to a
potentially larger target at depth.
Significant REE intersections include:
• 6m @ 0.6% TREO from 16 – 22m in hole 22DAC066, including:
• 2m @ 1.02% TREO from 16-18m, includes 0.23% Nd₂O₃, 0.42% Ce₂O₃,
223 ppm Dy₂O₃, 0.12% and La₂O₃.
• 3m @ 0.92% TREO from 22 – 25m in hole 22DAC095, including:
• 1m @ 1.8% TREO, includes 0.35% Nd₂O₃, 0.75% Ce₂O₃, 284 ppm Dy₂O₃,
and 0.31% La₂O₃.
The assays display an ‘exceptional’ critical magnet metal (NdPr+DyTb) ratio of 24% to total TREOs. These four
HREEs are the core ingredients for the manufacturing of permanent magnets which are used in electric
motors and generators. The growth in permanent magnets is attributed to increased use in the automotive
industry and electric vehicle drivetrains. The Lynas owned rare earth mine at Mt Weld in the Eastern
Goldfields of WA is the sole producer of REEs in Australia.
Page 12
D I R E C T O R S ’ R E P O R T
Significant REE enrichment in the regolith at Dundas is the result of weathering induced clay formation and
REEs can be either enriched or depleted in different depth horizons of the regolith. Critically, the presence of
anomalous REE mineralisation in bedrock in hole 22DAC066 below the regolith horizons suggests potential
exists at Dundas for higher grade, higher commercial value, hard fresh rock REE mineralisation. The last 2m
re-split samples assayed 2m @ 0.18% TREO at the end of the hole.
The Conservation Management Plan (CMP) which was lodged with the Department of Biodiversity,
Conservations and Attractions (“DBCA”) in February 2023 after feedback received on the November 2022
draft version. The CMP contains details for the next phase of exploration including deeper drilling on the two
existing granted ELs (“exploration licences”) in the Dundas project and exploration plans for the two ELAs
(“exploration licence applications”).
Catalina understands that the DBCA has recently completed the review of the draft CMP and are finalising
their comments to be sent to us, while they are seeking clarifications from Department of Mines, Industry
Regulation and Safety (“DMIRS”) regarding access tracks that need to be cleared (to reach one of the ELAs)
that traverse tenements which Catalina do not hold and where consent to undertake exploration activities
has not been granted.
Background of CMP: As the project is in the Dundas National Park, additional tenement conditions over and
above that for normal exploration licences are in force. These tenement conditions include, prior to any
environmental disturbance, the licensee preparing a detailed CMP for each phase of proposed exploration for
approval. The Minister for Environment and the Conservation and Parks Commission has formal requirements
under Section 24 of the Mining Act 1978 (Mining Act) to provide formal recommendations on proposed
activities in Dundas Nature Reserve prior to the Minister for Mines and Petroleum providing his consent.
DBCA reviews and presents the information prepared by and on behalf of the applicant (including copies of
the proposal document(s) to the Minister for Environment and the Conservation and Parks Commission in the
form of a CMP.
The Dundas Project area is situated within the inferred southeast extensions of the mineralised Norseman –
Wiluna Belt of the Archaean Yilgarn Craton and comprises a tectonostratigraphic assemblage of mafic,
ultramafic and sedimentary dominated units. A major northwest trending fault system transects the
tenements and may represent the prospective Boulder-Lefroy Fault Zone (BLFZ) and the Zuleika Shear
Systems (ZS), illustrated in Figure 8. These shears and faults are highly prospective for gold (Swager et al.,
1995). The tenements are also prospective for lithium mineralisation, being only 25 kms to the southwest of
Liontown’s Buldania Lithium Project, also along the Zuleika Shear Zone.
Page 13
D I R E C T O R S ’ R E P O R T
Figure 8. Regional location of Catalina’s tenements in the Albany Fraser Belt. Also illustrated are the
projects and highlights of respected neighbouring companies including Metal Hawk and Dundas
Minerals.
Page 14
D I R E C T O R S ’ R E P O R T
Business Development
Catalina is continuing to identify and assess exploration and early development opportunities in lithium, rare
earths, gold and base metals projects. The Company has successfully built up an exciting portfolio of exploration
projects in world class mineral provinces. These exploration tenements/projects acquired are at an early stage and
the Company is systematically completing the initial steps of access agreements, heritage agreements, surveys and
desktop studies to enable the advancement of exploration activities. As the Company continues its efforts to seek
new projects and advance its exploration projects, it has also implemented a process of continuous evaluation and
prioritisation of its project portfolio. Accordingly, rationalisation of its portfolio was also done including
relinquishing of the lower priority tenements.
Resource and Reserves
Mineral Resources and Reserves Estimates, summarised by JORC classification are as follows:
The in-situ DSO Mineral Resource Estimates, September 2015
Category
Tonnes
Fe %
Al2O3 %
P ppm
S ppm
SiO2 %
LOI %
Measured
300,000
Indicated
190,000
Inferred
150,000
57.6
57.5
57.3
1.3
1.4
1.2
947
919
945
362
377
421
Total
57.5
(Nominal 54% Fe cut off; average density 3t/m3; minor rounding errors)
BFO Resource Estimates 2012
640,000
938
1.3
380
9.2
9.3
10.0
9.4
6.4
6.3
6.2
6.4
Category
Inferred
Total
Tonnes
730,000
730,000
Fe %
46.8
46.8
Al2O3 %
2.7
2.7
P ppm
180
180
S ppm
680
680
SiO2 %
23.7
23.7
LOI %
4.7
4.7
(30% Fe cut off; average density 3t/m3; minor rounding errors)
“This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to
comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.”
Skarn Dyke Global Iron Resource Estimates
(Includes Magnetite Resource)
Category
Indicated
Inferred
Total
M Tonnes
1.8
9.5
11.3
Iron %
38.6
35.9
36.3
(30% Fe cut off; fresh rock material; minor rounding errors)
“This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to
comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.”
Skarn Dyke Recoverable Magnetite Resource Estimates
Category
Indicated
Inferred
Total
M Tonnes
1.7
6.1
7.8
DTR Mag %
38.5
38.2
38.3
Magnetite Kt
667
2,324
2,991
(20% DTR cut off; average density 3.71t/m3; fresh rock material; minor rounding errors)
“This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to
comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.”
Page 15
D I R E C T O R S ’ R E P O R T
Magnetite Resource Estimate Concentrate Grades
Category
Fe %
Al2O3 %
Indicated
Inferred
Total
66.4
64.3
65.5
0.16
0.31
0.22
S %
0.21
0.42
0.30
SiO2 %
4.6
6.0
5.2
“This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to
comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last
reported.”
The in-situ DSO Ore Reserve Estimates for the Southern DSO pit, September 2015
Category
M tonnes
Fe %
Al2O3 % P %
S %
SiO2 %
LOI %
Proved
Probable
Total
0.27
0.19
0.46
56.5
56.5
56.5
1.4
1.5
1.4
0.091
0.035
0.092
0.036
0.091
0.035
8.7
8.8
8.7
6.5
6.5
6.5
(Minor rounding errors; cut off based on a nominal 54% Fe; default density of 3t/m3)
Competent Person Statement
The review of historical exploration activities and results contained in this report is based on information compiled
by Michael Busbridge, a Member of the Australian Institute of Geoscientists and a Member of the Society of
Economic Geologists. He is a Director of Catalina Resources Ltd. He has sufficient experience which is relevant to
the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the JORC Code). Michael Busbridge has consented to the inclusion in
the report of the matters based on his information in the form and context in which it appears. The Company
confirms that it is not aware of any new information or data that materially affects the information in the original
reports, and that the form and context in which the Competent Person’s findings are presented have not been
materially modified from the original reports.
The information in this report that relates to the Nelson Bay River Iron Ore Project Mineral Resources is based on
information evaluated by Mr Simon Tear, who is a Member of The Australasian Institute of Mining and Metallurgy
(MAusIMM). And who has sufficient experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“the
JORC Code”). Mr Tear is a Director of H & S Consultants Pty Ltd and he consents to the inclusion in the report of
the Mineral Resources in the form and context in which they appear.
The information in this report that relates to Ore Reserve Estimates for the Nelson Bay deposit is based on
information evaluated by Mr Richard Beazley who is a Member of The Australasian Institute of Mining and
Metallurgy and a Chartered Professional (MAusIMM CP(Min)) and who has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Richard Beazley is a Non-Executive Director
of Catalina Resources Ltd and the Principal of Altair Mining Consultancy Pty Ltd and consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
Where the Company refers to the Mineral Resources in this report (referencing previous releases made to the
ASX), it confirms that it is not aware of any new information or data that materially affects the information
included in that announcement and all material assumptions and technical parameters underpinning the Mineral
Resource estimate with that announcement continue to apply and have not materially changed.
Page 16
D I R E C T O R S ’ R E P O R T
Tenements
The mining tenements held at the end of the reporting period and their locations are as following:
Mine
Lease/
Exploration License
3M/2011
E40/378
E40/384
E63/2046
E63/2048
E63/2136
E63/2227
EL9155
EL9346
E38/3677
E38/3697
E38/3698
E38/3726
P38/4554
P38/4555
P38/4556
E38/3771
E38/3772
E63/2269
E63/2270
E38/3847
ML
EL
EL
EL
EL
ELA
ELA
EL
EL
EL
ELA
ELA
EL
EL
EL
EL
ELA
ELA
ELA
ELA
ELA
Locality
Remarks
Nelson Bay River
Golden Chimney
Ulysses South
Dundas
Dundas
Dundas
Dundas
Rock Lodge
Oak Hill
Laverton
Laverton
Laverton
Laverton
Laverton
Laverton
Laverton
Laverton
Laverton
Dundas
Dundas
Laverton
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
100% Catalina Resources Ltd
*ELA: Exploration Licence Application
•
The mining tenement interests relinquished during the period and their location
o EL 9017 Turondale, Lachlan Fold, NSW
o EL 9310 Prince of Wales, Lachlan Fold, NSW
o ELA 38/3727, Laverton, WA
•
The mining tenements interests acquired and disposed of during the period and their location
o 4 new licence applications, being E38/3771, E38/3772, E63/2269 and E63/2270 (being re-
applications over E38/3698, E38/3697, E63/2136 and E63/2227 respectively) were applied.
o Another new licence application E38/3847 was applied.
o ELAs P38/4554, P38/4555, P38/4556, E38/3726 and E38/3677 were granted as Exploration
Licences.
•
•
The beneficial percentage interests held in farm-in or farm-out agreements at the end of the period
Nil
The beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the
period
Nil
Page 17
D I R E C T O R S ’ R E P O R T
OTHER TENEMENTS
Catalina’s exploration activities for the year in review were confined to those referred to in this report. However,
the Company can report that all other tenements remain in good standing and meet statutory requirements.
OUTLOOK
The Company has been progressing re-permitting of its Nelson Bay River Iron Project over last few years. While it has
been a lengthy process and the delays have been quite frustrating, the State Government process is fairly advanced
and with the referral of the EPBC application done in June 2023, there now appears to be now a clear pathway to have
the approvals process completed. On that basis, the Company hopes to be in a position to consider decision for
recommencement of the mine in the coming year.
The Company has over the last couple of years, assembled an exciting portfolio of mineral exploration projects in
Australia. Securing these exploration projects, provides the Company with early stage highly prospective opportunities.
These projects have not benefited from modern exploration techniques, in an emerging area which has an established
reputation as a world-class mineral provinces. The Company looks forward to advancing these projects towards its
objective of value creation.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, there were no other significant changes in the state of affairs of the Company that
occurred during the financial year under review other than those disclosed in this report.
FINANCIAL POSITION
The net assets of the Company as at 30th June 2023 are $5,885,708 (2022: $7,317,241)
AFTER BALANCE DATE EVENTS
Resources Regulator, NSW, has in July 2023, accepted the Mining Act Enforceable Undertaking (“EU”) by Catalina
Resources Ltd, concerning alleged contraventions at EL9155, including a minimum expenditure of $141,964 in
carrying out terms of the EU. Till the date of this report, $141,964 has been spent under this undertaking and the
Company does not expect any further expenditure in this regard.
There has not arisen in the interval between the end of the financial year and the date of this report any other
transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to
affect substantially the operations of the Company, the results of those operations or the state of affairs of the
Company in subsequent financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINE SS STRATEGIES
The Company intends to continue to pursue its goals to acquire and explore mineral deposits and pursue
development and mining operations of these deposits.
ENVIRONMENTAL REGULATIONS
The Company holds exploration and mining licences to regulate its activities in the States of Tasmania, New
South Wales and Western Australia. These licences include conditions and regulations with respect to the
rehabilitation of areas disturbed during the course of its activities. As far as the Directors are aware, there has
been no known breach of the Company’s licence conditions other than those disclosed in this report.
Page 18
D I R E C T O R S ’ R E P O R T
MATERIAL BUSINESS RISKS
There are specific risks which relate directly to the Company’s business. In addition, there are other general risks,
many of which are largely beyond the control of the Company and the Directors. The risks identified in this
section, or other risk factors, may have a material impact on the financial performance of the Company and the
market price of the Shares.
The following is not intended to be an exhaustive list of the risk factors to which the Company is exposed.
The key material risks faced by the company that are likely to have an effect on its future financial prospects
include:
Land access and tenure
•
Mining and exploration tenements are subject to periodic renewal. The Tenements are subject to the state
Mining Acts and the regulations made under the Mining Acts. The maintaining of exploration licenses, obtaining
renewals, or getting additional exploration or mining licenses granted, often depends on the Company being
successful in obtaining the required statutory approvals for its proposed activities and that the licences,
concessions, leases, permits or consents it holds will be renewed as and when required. There is no assurance
that such renewals will be given as a matter of course and there is no assurance that new conditions (such as
increased expenditure and work commitments) will not be imposed in connection with any such renewals. The
imposition of new conditions or the inability to meet those conditions may adversely affect the operations,
financial position and/or the performance of the Company.
The Company cannot guarantee additional applications for tenements made by the Company will ultimately be
granted, in whole or in part. Further, the Company cannot guarantee that renewals of valid Tenements will be
granted on a timely basis, or at all.
The Company will be required to negotiate access arrangements and pay compensation to landowners, local
authorities, traditional land users and others who may have an interest in the area covered by a mining
tenement. The Company’s ability to resolve access and compensation issues will have an impact on the future
success and financial performance of the Company’s operations.
Exploration and evaluation risks
•
The mineral licenses of the Company are at various stages of exploration, and potential investors should
understand that mineral exploration and development are high-risk undertakings. There can be no assurance
that exploration activities conducted on these exploration licenses, or any other licenses that may be acquired in
the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is
identified, there is no guarantee that it can be economically exploited.
The future exploration activities of the Company may be affected by a range of factors including geological
conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and technical
difficulties, industrial and environmental accidents, native title process, changing government regulations and
many other factors beyond the control of the Company.
The success of the Company will also depend upon the Company having access to sufficient development capital,
being able to maintain title to its exploration licenses and obtaining all required approvals for its activities. In the
event that exploration programmes prove to be unsuccessful this could lead to a diminution in the value of the
exploration licenses, a reduction in the cash reserves of the Company and possible relinquishment of the
exploration licenses.
• Development risks and costs
If the Company makes a decision to proceed with developing the Projects to the production stage, the process of
developing and constructing the mine will be subject to additional risks, including those set out in this section.
While the Company would make a decision to proceed to production only after completing feasibility studies,
which will be prepared with a higher level of detailed investigation and therefore a higher degree of assumed
accuracy than the work completed to date, there will remain a risk that economic and technical estimates and
assumptions may prove to be inaccurate, and unforeseen factors will result in outcomes that are materially less
favourable than those estimated or assumed in the feasibility study.
There are many uncertainties that are inherent in developing a mining project, including:
Page 19
D I R E C T O R S ’ R E P O R T
➢
➢
➢
➢
the availability of capital to finance feasibility studies, construction and development activities;
the timing and cost of constructing mining and processing facilities and related infrastructure;
the availability and cost of skilled labour, power, water and transport; and
the need to obtain necessary governmental permits and the timing of those permits.
As with any mining project, the Company may experience unexpected problems and delays during development,
construction and mine start-up. Even if mining commences, there is a risk that the geology of the mines will be
more complex than the Company’s geological investigations have indicated, and that the ore extracted will be
lower grade or have different metallurgy than anticipated, which may increase mining costs, increase processing
costs or result in lower recoveries.
• Operating risks
The Company may be subject to risks associated with the establishment of a new mining operation if the
Company decides to develop its mineral assets. There is no assurance that can be given to the level of viability
that the Company’s operations may achieve. Lower than expected productivity and technical difficulties and late
delivery of materials and equipment could have an adverse impact on any future construction and
commissioning schedules. No assurance can be given that the intended production schedules will be met or that
the estimated operating cash costs and development costs will be accurate.
Further, the operations of the Company, if production commences, may have to be shut down or may otherwise
be disrupted by a variety of risks and hazards which are beyond the control of the Company, including
environmental hazards, industrial accidents, technical failures, labour disputes, weather conditions, fire,
explosions and other accidents at the mine, processing plant or related facilities beyond the control of the
Company. The occurrence of any of the risks and hazards could also result in damage to, or destruction of,
amongst other things, production facilities, personal injury, environmental damage, business interruption,
monetary losses and possible legal liability. While the Company currently maintains insurance within ranges of
coverage consistent with industry practice, no assurance can be given that the Company will be able to obtain
such insurance coverage at reasonable rates (or at all, or that any coverage it obtains will be adequate and
available to cover any such claims).
Environmental risk
•
The Company is subject to a number of laws and regulations to minimise the environmental impact of any
operations as well as rehabilitation of any areas affected by the Company’s operations. These laws can be costly
to operate under and can change further adversely affecting the Company. No assurance can be given that
current or future requirements under environmental laws will not result in the cessation of exploration or
production activities, the curtailment of production or a material increase in the costs of production,
development or exploration activities or otherwise adversely affect the Company’s financial condition, results of
operations or prospects. Penalties for failure to adhere to the laws or in the event of environmental damage the
penalties and remediation costs can be substantive.
The Company may require approval from relevant authorities before it can undertake activities that may impact
the environment. Failure to obtain such approvals may prevent the Company from achieving its business
objectives. The Company intends to conduct itself and manage any joint venturers so that their activities are
conducted in an environmentally responsible manner and in accordance with all applicable laws. Despite this,
the Company may still be subject to accidents or other unforeseen events which may compromise its
environmental performance, and which may have adverse financial implications.
• Resource estimations
Estimating the quantity and quality of Mineral Resources is an inherently uncertain process and any Mineral
Resources or Ore Reserves that the Company states in the future are and will be estimates and may not prove to
be an accurate indication of the quantity and/or grade of mineralisation that the Company has identified or that
it will be able to extract, process and sell.
Mineral Resource estimates are expressions of judgement based on knowledge, experience and industry
practice. Mineral Resource estimates are necessarily imprecise and depend to some extent on interpretations
and geological assumptions, the application of sampling techniques, estimates of commodity prices, cost
assumptions, and statistical inferences which may ultimately prove to have been unreliable.
Page 20
D I R E C T O R S ’ R E P O R T
Mineral Resource estimates are often regularly revised based on actual production experience or new
information and are therefore expected to change. Furthermore, should the Company encounter mineralisation
or formations different from those predicted by past drilling, sampling and similar examinations, the Company’s
Mineral Resource estimates may have to be adjusted and mining plans, processing and infrastructure may have
to be altered in a way that might adversely affect the Company’s operations. Moreover, a decline in the price of
gold and other metals, increases in production costs, decreases in recovery rates or changes in applicable laws
and regulations, including environment, permitting, title or tax regulations, that are adverse to the Company,
may mean the volumes of mineralisation that the Company can feasibly extract may be significantly lower than
the Mineral Resource estimates.
If it is determined that mining of certain of the Company’s Mineral Resources or any Ore Reserves derived from
them have become uneconomic, this may result in a reduction in the quantity of the Company’s aggregate
Mineral Resources being mined or result in the Company deciding not to proceed with the projects.
If the Company’s actual Mineral Resources are less than previous estimates, its prospects, value, business,
results of operations and financial condition may be materially adversely affected.
•
Future capital requirements
At the date of this Report, the Company has no income producing assets.
Accordingly, the Company expects to raise additional funds for working capital and in order to finance its
projected expenditure at the Projects for development, drilling and exploration programmes, potentially by
raising debt and/or equity. However, if these funding alternatives do not eventuate or are insufficient the
Company may need to raise additional equity. Any additional equity financing may be dilutive to Shareholders,
and debt financing (including lease financing of equipment), if available, may involve restrictions on financing
and operating activities.
There is no assurance that the Company will be able to obtain or access additional funding when required, or
that the terms associated with that funding will be acceptable to the Company.
The Company's failure to raise capital if and when needed could delay or suspend the Company's business
strategy and could have a material adverse effect on the Company's activities, financial condition and its ability
to continue as a going concern or its ability to pay its debts as and when they fall due. Also, no guarantee or
assurance can be given as to whether the Projects can be developed to the stage where it will generate positive
cashflow or the timing of this development.
Fluctuations in commodity prices and exchange rate risks
•
The price of minerals fluctuates widely and is affected by numerous factors beyond the control of the Company
such as industrial and retail supply and demand, exchange rates, inflation rates, changes in global economies,
confidence in the global monetary system, forward sales of metals by producers and speculators as well as other
global or regional political, social or economic events. Future serious price declines in the market value of
minerals could cause the continued development of, and eventually the commercial production from, the
Company’s projects and the Company’s other properties to be rendered uneconomic. Depending on the price of
minerals the Company could be forced to discontinue production or development and may lose its interest in, or
may be forced to sell, some of its properties. There is no assurance that, even as commercial quantities of
minerals are produced, a profitable market will exist for it.
In addition to adversely affecting the reserve estimates of the Company and its financial condition, declining
commodity prices can impact operations by requiring a reassessment of the feasibility of a particular project.
Such a reassessment may be the result of a management decision or may be required under financing
arrangements related to a particular project. Even if a project is ultimately determined to be economically viable,
the need to conduct such a reassessment may cause substantial delays or may interrupt operations until the
reassessment can be completed.
Inherent mining risks
•
The Company’s business operations are subject to risks and hazards inherent in the mining industry. The
exploration for and the development of mineral deposits involves significant risks, including environmental
hazards; industrial accidents; metallurgical and other processing problems; unusual or unexpected rock
formations; structure cave-in or slides; flooding; fires and interruption due to inclement or hazardous weather
conditions. These risks could result in damage to, or destruction of, mineral properties, production facilities or
Page 21
D I R E C T O R S ’ R E P O R T
other properties, personal injury or death, environmental damage, delays in mining, increased production costs,
monetary losses and possible legal liability.
Whether income will result from projects undergoing exploration and development programs depends on the
successful establishment of mining operations. Factors including costs, actual mineralisation, consistency and
reliability of ore grades and commodity prices affect successful project development.
DIRECTORS’ INTERESTS
The relevant interests of each Director in the securities of Catalina Resources as at date of this report are as
follows:
Mr S Loyalka
Mr R Beazley
Mr M Busbridge
Total
ORDINARY SHARES
FULLY PAID
106,173,691
0
0
106,173,691
OPTIONS
25,000,000
0
0
25,000,000
INFORMATION ON DIRECTORS
Mr Sanjay Loyalka, Director and Company Secretary, FAIM, ACA, B Com (Hons)
Founder and Director of Catalina Resources since April 2008
As the Founder, Mr Loyalka played a leading role in the acquisition of Nelson Bay River exploration tenement &
overseeing the discovery of the DSO iron ore resource shortly after listing & IPO of the company in Feb 2010 and
the development of the project to a producing mine with successful shipments of iron ore.
Mr Sanjay Loyalka has experience in various functional roles including CEO, General Management, and corporate
finance experience in mining and metals, manufacturing, and logistics-based industries in a multinational
environment.
As the CEO and Managing Director, he was instrumental in the development of the Aditya Birla Group’s
operations within Australia. He led the acquisition of Nifty and Mount Gordon Copper mines, development of
the Nifty Sulphide project (a remote site, 2.5 million TPA underground mine, concentrator plant and associated
infrastructure) and operational restructure of Mount Gordon Copper Operations. These led to a listing of the
Company on the Australian Securities Exchange under an IPO raising $300 million and inclusion in the ASX S&P
300 index.
Mr Loyalka is the head of Investment advisory firm IACG Pty Ltd in Australia which has been engaged in cross
border M & A, strategic consulting as well as a mineral commodity trading business.
Mr Loyalka has been a member of the Executive Council of Chamber of Minerals and Energy (Western Australia)
in 2005 and 2006.
Directorship in other listed companies in last 3 years: N/A
Mr Amu Shah, Non-Executive Director
Retired as Director of Catalina Resources in November 2022
Mr Amu Shah is a director and shareholder in various businesses ranging from retail trade, distribution of office
and stationery products, services to the mining industry, manufacturing, and property development and
ownership.
Mr Amu Shah is the Honorary Consul for Kenya in Perth.
Mr Amu Shah has extensive international and local business experience.
Directorship in other listed companies in last 3 years: N/A
Mr Davide Bosio, Non-Executive Director, BComm, FFin, GAICD
Resigned as Director of Catalina Resources in January 2023
Mr Bosio is a Corporate Adviser specialising in offering corporate services and strategic advice to private and
public organisations, specifically in relation to capital raisings and M&A advice. He has over 21 years’ experience
in the finance industry as an Investment Adviser, Responsible Manager, and through various Executive and Non-
Page 22
D I R E C T O R S ’ R E P O R T
Executive Director Roles. Mr Bosio is the WA State Manager and Director of Corporate Finance of Shaw and
Partners, having previously held the position of Managing Director, Chief Executive Officer and Head of
Corporate Finance of DJ Carmichael.
Directorship in other listed companies in last 3 years: Mantle Minerals Limited, (previously known as Caeneus
Minerals Limited), (ASX: MTL), (25 May 2021 – December 2022); Connected IO Limited (ASX: CIO), March 2019 –
Present.
Mr Michael Busbridge
Director of Catalina Resources since January 2023
Mr. Busbridge is a Geologist with over 40 years of experience in the mining industry including managerial
positions in Normandy Mining Ltd, Barrick Gold Australia and Teck Australia. He has an invaluable mix of gold,
nickel, copper, lead and zinc, lithium, REEs, graphite and oil exploration experience throughout Australia coupled
with several years as a mine / development geologist in gold and nickel mines.
Directorship in other listed companies in last 3 years: N/A
Mr Richard Beazley, Non-Executive Director
Director of Catalina Resources since August 2022
Mr. Beazley is a highly experienced Mining Engineer. He is a mining industry executive with a strong technical
background and substantial experience in corporate and operational management and leadership. He has
significant experience in Australia, Africa and South America. Previous roles include Chief Operating Officer for
Sandfire Resources (ASX: SFR); Managing Director of Peak Resources Ltd (ASX: PEK); General Manager
Operations at Consolidated Minerals; General Manager Southern Cross Operations at St Barbara Limited.
Directorship in other listed companies in last 3 years: Troy Resources Limited – Interim Managing Director and
CEO (September 2021 – Present); Troy Resources Limited – Non-Executive Director (October 2018 – September
2021); MetalsGrove Mining Ltd – Non-Executive Chair (February 2022 – Present).
REMUNERATION REPORT (AUDITED)
The full Board fulfils the roles of remuneration committee (the “Committee”) and is governed by the Company’s
adopted remuneration policy. The information provided in this remuneration report has been audited as
required by Section 308 (3c) of the Corporations Act 2001.
REMUNERATION POLICY
This policy governs the operations of the Committee. The Committee shall review and reassess the policy at least
annually and obtain the approval of the Board.
General Director Remuneration
Shareholder approval must be obtained in relation to the overall limit set for non-executive directors’ fees. The
Directors shall set individual Board fees within the limit approved by shareholders.
Shareholders must also approve the framework for any broad-based equity-based compensation schemes and if
a recommendation is made for a director to participate in an equity scheme, that participation must be
approved by the shareholders.
Executive remuneration
The Company’s remuneration policy for executive directors and senior management is designed to promote
superior performance and long-term commitment to the Company. Executives receive a base remuneration
which is market related and may be entitled to performance-based remuneration at the ultimate discretion of
the Board.
Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect
competitive market and business conditions where it is in the interests of the Company and shareholders to do
so.
Executive remuneration and other terms of employment are reviewed annually by the Remuneration Committee
having regard to performance, relevant comparative information, and expert advice.
Page 23
D I R E C T O R S ’ R E P O R T
The Committee’s reward policy reflects its obligation to align executive’s remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Company. The main
principles of the policy are:
a.
b.
reward reflects the competitive market in which the Company operates;
individual reward should be linked to performance criteria; and
c. Directors and executives should be rewarded for both financial and non-financial performance.
The total remuneration of executives and other senior managers consists of the following:
a.
salary - directors, executives and senior manager receive a fixed sum payable monthly in cash;
b. bonus - directors, executives and nominated senior managers are eligible to participate in a profit
participation plan if deemed appropriate;
c.
long-term incentives - directors, executives, and nominated senior managers may also participate in
employee share and share-option schemes, with any share and option issues generally being made in
accordance with thresholds set in plans approved by shareholders. The Board, however, considers it
appropriate to retain the flexibility to issue shares and options to executives outside of approved employee
option plans in exceptional circumstances; and
d. other benefits - directors, executives and senior managers are eligible to participate in superannuation
schemes and other appropriate additional benefits.
Remuneration of other executives consists of the following:
a.
salary - senior executive receives a fixed sum payable monthly in cash;
b. bonus - each executive is eligible to participate in a profit participation plan if deemed appropriate;
c.
long term incentives - each senior executive may, where appropriate, participate in shares and share option
schemes which have been approved by shareholders; and
d. other benefits – senior executives are eligible to participate in superannuation schemes and other
appropriate additional benefits.
Non-executive remuneration
Shareholders approve the maximum aggregate remuneration for non-executive directors. The Remuneration
Committee recommends the actual payments to directors and the Board is responsible for ratifying any
recommendations, if appropriate. The maximum aggregate remuneration approved for non-executive directors
is currently $200,000.
It is recognised that non-executive directors’ remuneration is ideally structured to exclude equity-based
remuneration. However, whilst the Company remains small and the full Board, including the non-executive
directors, are included in the operations of the Company more intimately than may be the case with larger
companies the non-executive directors are entitled to participate in equity-based remuneration schemes.
All directors are entitled to have their indemnity insurance paid by the Company.
Profit participation plan
Performance incentives may be offered to directors, executives, and senior management of the Company
through the operation of a profit participation plan at the ultimate discretion of the Board. Currently, there is no
such plan in practice for last 5 years.
Details of remunerat ion
Key Management Personnel (KMP) comprises the executive and non- executive directors only during FY2023.
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.
Page 24
D I R E C T O R S ’ R E P O R T
The remuneration for Key Management Personnel of the Company during the year and the previous year was as follows:
2023
Short-term Employee Benefits
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-cash
benefits
Allowances
Post-
employment
Benefits
Superannuation
Other
Long-term
Benefits
Share-based
Payments
Total
%
Performance
Based
Mr Sanjay Loyalka
Mr Davide Bosio*
Mr Amu Shah**
Mr Richard Beazley***
Mr Michael Busbridge ****
$
$
$
$
$
$
$
$
240,000
20,983
11,312
24,887
89,577
386,759
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
25,200
2,203
1,188
2,613
0
31,204
0
0
0
0
0
0
0
0
0
0
0
0
265,200
23,186
12,500
27,500
89,577
417,963
0
0
0
0
0
0
* Davide Bosio resigned in Jan 2023
** Amu Shah retired in Nov 2022
*** Richard Beazley was appointed in August 2022
**** Michael Busbridge was appointed as Technical Director in Jan 2023 and was previously providing his services to the Company as a chief Geologist by way of a
Consultancy Agreement with the Company. His appointment as a Technical Director is also covered under that consulting agreement continuing. The Consulting Fee of
Michael Busbridge totalled $89,577 for the financial year ended 30th June 2023
Page 25
D I R E C T O R S ’ R E P O R T
2022
Short-term Employee Benefits
Cash,
salary,
Directors
Fees
Cash
profit
share,
bonuses
Non-cash
benefits
Allowances
Post-
employment
Benefits
Superannuation
Other
Long-term
Benefits
Share- based
Payments
Total
%
Performance
Based
Mr Sanjay Loyalka
Mr Martin Bennett *
Mr Davide Bosio
Mr Amu Shah
$
$
$
$
$
$
$
$
240,000
90,000
38,182
27,273
395,455
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
24,000
9,000
3,818
2,727
39,545
0
0
0
0
0
0
0
0
0
0
264,000
99,000
42,000
30,000
435,000
0
0
0
0
0
* Martin Bennett resigned in Dec 2021.
For financial years ended 30th June 2023 and 30th June 2022 the KMPs held the positions and dates of change in responsibilities are as follows:
Mr. Richard Beazley appointed as Non-Executive Director effective 2 August 2022
Mr. Amu Shah: Non-Executive Director, Retired effective 28 November 2022
Mr. Davide Bosio: Non-Executive Director, Resigned effective 19 January 2023
Mr. Michael Busbridge appointed as Technical Director effective 19 January 2023
Mr. Sanjay Loyalka: Executive Director and Company Secretary, assumed position of Executive Chairman effective 19 January 2023
Mr. Martin Bennett: Technical Director, Resigned effective 22 December 2021
Page 26
D I R E C T O R S ’ R E P O R T
Options, Performance shares and Shares issued as part of remuneration for the year ended 30
June 2023
There were no Options, Performance shares and Shares issued as part of remuneration for the year ended 30
June 2023. Please refer to Note 23 for further information.
Shares Issued on Exercise of Compensation Options
No options granted as compensation in prior periods were exercised during the year or in the previous year.
Number of Shares Held by Key Management Personnel
30 June 2023
Key Management
Person
Balance
1 July 2022
Received as
Compensation
Options
Exercised
Mr Sanjay Loyalka
56,173,691
Mr Richard Beazley
Mr Michael Busbridge
Mr Amu Shah
Mr Davide Bosio
0
0
22,704,700
69,196,509
148,074,900
0
0
0
0
0
0
0
0
0
0
0
0
Net Change
Other
50,000,000
0
0
0
0
Resignation
0
0
0
(22,704,700)
(69,196,509)
Balance
30 June 2023
106,173,691
0
0
0
0
50,000,000
(91,901,209)
106,173,691
Number of Options Held by Key Management Personnel
30 June 2023
Key Management
Person
Received as
Compensation
Balance
1 July 2022
Options
Exercised
Mr Sanjay Loyalka
25,000,000
Mr Richard Beazley
Mr Michael Busbridge
Mr Amu Shah
Mr Davide Bosio
0
0
12,500,000
25,000,000
62,500,000
0
0
0
0
0
0
0
0
0
0
0
0
Net Change
Other
0
0
0
0
0
0
Resignation
0
0
0
(12,500,000)
(25,000,000)
Balance
30 June 2023
25,000,000
0
0
0
0
(37,500,000)
25,000,000
Number of Share Performance Rights Held by Key Management Personnel
Key Management Personnel did not hold any Share Performance Rights (“SPR”) at the beginning of the year and
no SPRs were issued to them during the year.
Employment contracts of directors and senior executives
The employment arrangements for Richard Beazley are as follows:
Term: to retire by rotation at least once every 3 years.
•
• Remuneration: comprising salary and superannuation totalling $30,000 per annum.
•
Termination: Mr. Beazley may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In addition,
Mr. Beazley’s appointment is subject to re-election by shareholders at least every 3 years.
Page 27
D I R E C T O R S ’ R E P O R T
The employment arrangements for Sanjay Loyalka are as follows:
• Remuneration: comprising salary and superannuation totalling $265,200 per annum.
•
Termination: Mr. Loyalka may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur.
The employment arrangements for Michael Busbridge are as follows:
Term: to retire by rotation at least once every 3 years.
•
• Remuneration: Mr. Busbridge has been providing his services to the Company as a chief Geologist by
way of a Consultancy Agreement with the Company. His appointment as a Technical Director is also
covered under that consulting agreement continuing, the material terms of which provide for a daily
rate of $1,000 per day. Where the time spent is less than a full day, the applicable rate will be $100 per
hour.
Termination: Mr. Busbridge may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In addition,
Mr. Busbridge’s appointment is subject to re-election by shareholders at least every 3 years.
•
The changes to remuneration of Directors over the years are Board approved and there is no formal agreement
between the Company and Directors in this regard.
There have been no remuneration consultants used during the year.
END OF REMUNERATION REPORT
Meetings of Directors
During the financial year, 6 formal meeting of Directors (including committees of directors) was held.
Attendances by each Director during the year were as follows:
Director
Sanjay Loyalka
Amu Shah
Davide Bosio
Richard Beazley
Michael Busbridge
Board Meetings
Meetings
attended
6
3
4
5
3
Meetings held
whilst in office
6
3
4
5
3
The full Board fulfils the role of remuneration, nomination, and audit committees.
Indemnifying Officers or Auditor
The Company has not otherwise, during or since the end of financial year, except to the extent permitted by law,
indemnified or agree to indemnify the auditor of the Company or of any related body corporate against a liability
incurred as such auditor.
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.
Options
At the date of this report, the unissued ordinary shares of Catalina Resources Ltd under option are:
1. 30,000,000 Unlisted Options exercisable at $0.01 Expiring 30 November 2023.
2. 32,500,000 Unlisted Options exercisable at $0.012 Expiring 30 November 2024.
Page 28
D I R E C T O R S ’ R E P O R T
Proceedings on Behalf of Company
No person has applied for leave of Court to bring any proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for taking responsibility on behalf of the Company for all or any
part of these proceedings. The Company is not a party to any other proceedings as at date of this report.
Non-audit Services
There was no non-audit service provided by the external auditors during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the financial year ended 30 June 2023 has been received and
can be found on page 30 of annual report.
Signed in accordance with a resolution of the Board of Directors.
Sanjay Loyalka
Director
Signed in Perth the 22nd day of September 2023.
Page 29
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
22 September 2023
Board of Directors
Catalina Resources Limited
Unit 38, 18 Stirling Highway
Nedlands WA 6009
Dear Directors
RE: CATALINA RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following
declaration of independence to the directors of Catalina Resources Limited.
As Audit Director for the audit of the financial statements of Catalina Resources 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:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Eliya Mwale
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
C A T A L I N A R E S O U R C E S L T D
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Revenue from continuing operations
Interest
Gain on sale of tenements
Miscellaneous income
Expenses from continuing operations
Care and maintenance
Depreciation expense
Finance charges
Employee and consulting fees
Regulatory costs
Occupancy and communication
Foreign exchange gain/ (loss)
Note
30-Jun-23
$
30-Jun-22
$
12
3
3
120,693
-
-
(66,855)
(12,200)
(13,552)
9,667
785,076
29,887
(91,067)
(11,250)
(13,257)
(393,339)
(404,744)
(46,153)
(12,373)
4
(51,447)
(2,587)
9
-
Loss on fair valuation of financial assets
12
(427,500)
Accounting and legal fees
Exploration impairment
Impairment of mine development
Other expenses
(40,927)
(48,336)
10
10A
(115,590)
(231,070)
(192,671)
-
-
(70,581)
(Loss)/ Profit before income tax
(1,431,533)
131,370
Income tax
4
-
-
(Loss)/ Profit for the year
Other comprehensive income
(1,431,533)
131,370
-
-
Total Comprehensive (Loss)/ Profit for the year
(1,431,533)
131,370
(Loss)/ Profit per share for attributable to ordinary equity holders
of the company:
Basic (Loss)/ Profit cents per share
5
(0.12)
0.01
The accompanying notes form part of these financial statements.
Page 31
C A T A L I N A R E S O U R C E S L T D
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Assets
Current Assets
Cash and cash equivalents
Bank Term Deposits
Other Receivables
Prepayments
Total Current Assets
Non-Current Assets
Financial Assets at fair value
Exploration and evaluation
Mine Development
Right- of- Use Asset
Restricted Cash
Plant and equipment
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Lease Liability
Accruals
Provision for employee entitlement
Total Current Liabilities
Non-Current Liabilities
Lease Liability
Rehabilitation Provision
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated (losses)
Total Equity
Note
6
6
7
12
10
10A
11
6A
9
13
11
11
14
15
16
16
30-Jun-23
$
412,216
3,158,100
110,529
30-Jun-22
$
1,579,700
3,500,000
57,295
29,569
27,912
3,710,414
5,164,907
522,500
950,000
1,955,013
1,187,191
22,902
32,370
188,835
6,194
838,700
838,700
4,697
6,656
3,376,182
3,177,576
7,086,596
8,342,483
171,389
11,191
168,865
711
178,727
7,034
12,000
481
352,156
198,242
21,732
827,000
-
827,000
848,732
827,000
1,200,888
1,025,242
5,885,708
7,317,241
25,695,326
25,695,326
1,015,858
1,015,858
(20,825,476)
(19,393,943)
5,885,708
7,317,241
The accompanying notes form part of these financial statements.
Page 32
C A T A L I N A R E S O U R C E S L T D
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Contributed
Accumulated
Equity
$
Losses
$
Reserves
$
Total
$
BALANCE AT 1 JULY 2021
23,062,121
(19,525,313)
1,015,858
4,552,666
Total comprehensive income for the
period
Shares issued during the year
Capital raising costs
BALANCE AT 30 JUNE 2022
-
131,370
-
131,370
2,804,000
-
-
2,804,000
(170,795)
25,695,326
-
-
(19,393,943)
1,015,858
(170,795)
7,317,241
BALANCE AT 1 JULY 2022
25,695,326
(19,393,943)
1,015,858
7,317,241
Total comprehensive loss for the period
BALANCE AT 30 JUNE 2023
-
(1,431,533)
-
(1,431,533)
25,695,326
(20,825,476)
1,015,858
5,885,708
The accompanying notes form part of these financial statements.
Page 33
C A T A L I N A R E S O U R C E S L T D
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Note
30-Jun-23
$
30-Jun-22
$
Cash flows from operating activities (including exploration)
Payments to suppliers and employees (inclusive of GST)
(676,689)
(581,180)
Interest received
Other income
120,693
-
9,667
79,887
Net cash (used in) operating activities (including exploration)
19
(555,996)
(491,626)
Cash flows from investing activities
Payment for plant and equipment
-
-
Payment for mineral exploration
(871,461)
(785,052)
Payment for mine development
(70,361)
(188,835)
Net cash (used in) investing activities
(941,822)
(973,887)
Cash flows from financing activities
Proceeds from issues of shares and options
-
2,804,000
Repayment of lease liability
Payments for share issue costs
11C
(11,566)
(10,541)
-
(170,795)
Net cash (used in)/ provided by financing activities
(11,566)
2,622,664
Net (decrease)/ increase in cash and cash equivalents
(1,509,384)
1,157,151
Cash and cash equivalents at the beginning of the financial year
5,079,700
3,922,549
Cash and cash equivalents at the end of the financial year
(including Bank Term Deposits)
3,570,316
5,079,700
The accompanying notes form part of these financial statements.
Page 34
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report includes the financial statements and notes of Catalina Resources Ltd, a Company
domiciled and incorporated in Australia.
Statement of Compliance
The financial report is a general-purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Accounting standards include Australian equivalents to International Financial Reporting Standards (“AIFRS”).
Compliance with AIFRS ensures that the financial statements and notes thereto comply with International
Financial Reporting Standards (“IFRS”). Catalina Resources Ltd is a for-profit entity for the purpose of preparing
the financial statements.
The financial report is presented in Australian dollars.
Basis of Preparation
Historical cost convention
The financial report has been prepared on an accrual basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.
Going concern
These financial statements have been prepared on a going concern basis and, as a result, the financial report
for the year ended 30 June 2023 does not include any adjustments relating to the recoverability and
classification of the recorded asset amounts or to the amounts and classification of liabilities that might be
necessary should the Company not continue as a going concern.
Significant efforts have been made to preserve cash and reduce costs and secure additional finance, however
material uncertainties over the future cash flows exist.
The Company continues to engage with its stakeholders and continues to monitor opportunities from
interested investors to raise additional equity for the business.
The Company also carefully manages discretionary expenditure in line with the Company’s cash flow.
The financial report has therefore been prepared on a going concern basis, which assumes continuity of
normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course
of business. Should the Company be unable to continue as a going concern, it may be required to realise assets
and extinguish liabilities other than in the ordinary course of business, and at amounts that differ from those
stated in the financial statements.
The significant accounting policies set out below have been applied in the preparation and presentation of the
financial report for the year ended 30 June 2023 and comparative information.
Page 35
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
New and amended standards adopted by the Company for these financial
statements
The Company has considered the implications of new and amended Accounting Standards which have become
applicable for the current financial reporting period.
New and Amended Accounting Policies Adopted by the Company
– AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements
2018–2020 and Other Amendments
The Entity adopted AASB 2020-3 which makes some small amendments to a number of standards
including the following: AASB 1, AASB 3, AASB 9, AASB 116, AASB 137 and AASB 141.
The adoption of the amendment did not have a material impact on the financial statements.
AASB 2021-7a: Amendments to Australian Accounting Standards – Effective Date of Amendments to
AASB 10 and AASB 128 and Editorial Corrections
AASB 2020-7a makes various editorial corrections to a number of standards effective for reporting
periods beginning on or after 1 January 2022. The adoption of the amendment did not have a material
impact on the financial statements
New and Amended Accounting Policies Not Yet Adopted by the Entity
–
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as
Current or Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-
current.
The Company plans on adopting the amendment for the reporting period ending 30 June 2024 along
with the adoption of AASB 2022-6. The amendment is not expected to have a material impact on the
financial statements once adopted.
–
AASB 2022-6: Amendments to Australian Accounting Standards – Non-current Liabilities with
Covenants
AASB 2022-6 amends AASB 101 to improve the information an entity provides in its financial statements
about liabilities arising from loan arrangements for which the entity’s right to defer settlement of those
liabilities for at least 12 months after the reporting period is subject to the entity complying with
conditions specified in the loan arrangement. It also amends an example in Practice Statement 2
regarding assessing whether information about covenants is material for disclosure.
The Company plans on adopting the amendment for the reporting period ending 30 June 2024. The
amendment is not expected to have a material impact on the financial statements once adopted.
–
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies
and Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting
Standards: Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and
Definition of Accounting Estimates (Amendments to IAS 8).
The Company plans on adopting the amendment for the reporting period ending 30 June 2024. The
impact of the initial application is not yet known.
–
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations – transactions for which companies recognise
both an asset and liability and that give rise to equal taxable and deductible temporary differences.
The Company plans on adopting the amendment for the reporting period ending 30 June 2024. The
Page 36
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
impact of the initial application is not yet known.
–
AASB 2021-7b & c: Amendments to Australian Accounting Standards – Effective Date of Amendments
to AASB 10 and AASB 128 and Editorial Corrections
AASB 2021-7b makes various editorial corrections to AASB 17 Insurance Contracts which applies to
annual reporting periods beginning on or after 1 January 2023, with earlier application permitted.
AASB 2021-7c defers the mandatory effective date (application date) of amendments to AASB 10 and
AASB 128 that were originally made in AASB 2014-10: Amendments to Australian Accounting Standards
– Sale or Contribution of Assets between an Investor and its Associate or Joint Venture so that the
amendments are required to be applied for annual reporting periods beginning on or after 1 January
2025 instead of 1 January 2018.
The Company plans on adopting the amendments for the reporting periods ending 30 June 2024 and 30
June 2026. The impact of initial application is not yet known.
–
AASB 2022-7: Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and
Redundant Standards
AASB 2022-7 makes editorial corrections to the following standards: AASB 7, AASB 116, AASB 124, AASB
128, AASB 134 and AASB as well as to AASB Practice Statement 2. It also formally repeals superseded
and redundant Australian Account Standards as set out in Schedules 1 and 2 to the Standard.
The Company plans on adopting the amendments for the reporting period ending 30 June 2024. The
amendment is not expected to have a material impact on the financial statements once adopted.
a.
Income Tax
The income tax expense (benefit) for the year comprises current income tax expense (income) and deferred
tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities
(assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation
authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also
result where amounts have been fully expensed but future tax deductions are available. No deferred income
tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting
date. Their measurement also reflects the manner in which management expects to recover or settle the
carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax
asset can be utilised.
Page 37
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
b. Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed by directors first when indicators of impairment exist
and thereafter annually to ensure it is not in excess of the recoverable amount from these assets. The
recoverable amount is assessed on the basis of the expected net cash flows that will be received from the
asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.
The cost of fixed assets constructed within the company includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss
statement during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including capitalised lease assets, but excluding freehold land, is
depreciated on a straight-line basis over their useful lives commencing from the time the asset is held ready
for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease
or the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Motor Vehicle
Leased Assets
Depreciation Rate
20%
20%
50%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the profit or loss. When revalued assets are sold, amounts included in the
revaluation reserve relating to that asset are transferred to retained earnings.
c. Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable resources.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in
which the decision to abandon the area is made.
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C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
When production commences, the accumulated costs for the relevant area of interest are transferred to Mine
Development and amortised over the life of the area according to the rate of depletion of the economically
recoverable resources (refer to Mine Development below).
A regular review for impairment is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
d. Mine Development
Mine development represent the accumulation of all exploration, evaluation and development expenditure
incurred in respect of a project in which mining has commenced or in the process of commencing. When
further development expenditure is incurred in respect of mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when substantial future
economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of
production.
Amortisation is provided on a unit of production basis (other than restoration and rehabilitation expenditure
detailed below) which results in a write off of the cost proportional to the depletion of the proven and
probable mineral reserves.
The Company defers waste stripping costs for matching costs with the related economic benefits. Stripping
costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine or
pit ratio. Such deferred costs are then charged in subsequent periods, the ratio falls short of the life of mine or
pit ratio. The life of mine or pit ratio is obtained by dividing the volume of waste mined either by the volume of
ore mined. The life of mine or pit waste-to-ore ratio is a function of an individual mine's pit design and
therefore changes to that design will generally result in changes to the ratio. Changes to the life of mine or pit
ratio are accounted for prospectively. Deferred stripping costs are included in Mine development costs.
The net carrying value is reviewed regularly and to the extent to which this value exceeds its recoverable
amount, the excess is either fully provided against or written off in the financial year in which this is
determined.
The Company provides for environmental restoration and rehabilitation at site which includes any costs to
dismantle and remove certain items of plant and equipment. The cost of an item includes the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation
for which an entity incurs when an item is acquired or as a consequence of having used the item during that
period. This asset is depreciated on the basis of the current estimate of the useful life of the asset.
In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets an entity is also required
to recognise as a provision the best estimate of the present value of expenditure required to settle the
obligation.
Page 39
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
e. Financial Instruments
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
Financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:
–
–
–
amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).
Classifications are determined by both:
–
–
the contractual cash flow characteristics of the financial assets; and
the entities business model for managing the financial asset.
i.
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):
–
–
they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.
Page 40
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
ii.
Financial assets at fair value through other comprehensive income (FVOCI)
The Company measures debt instruments at fair value through OCI if both of the following conditions are met:
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding; and
the financial asset is held within a business model with the objective of both holding to collect contractual cash
flows and selling the financial asset.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132
Financial Instruments: Presentation and are not held for trading.
iii.
Financial assets at fair value through profit or loss (FVPL)
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.
The shares received by the Company as part consideration of sale of Arunta Joint Venture was designated
upon initial recognition at fair value through profit or loss.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Company designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with
gains or losses recognised in profit or loss.
All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.
Impairment
From 1 July 2018, the Company assesses on a forward-looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. For trade receivables, the Company applies the
simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
f.
Impairment of Non-Financial Assets
At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication exists,
Page 41
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in
use, is compared to the asset’s carrying value. In 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 for which the estimates of future cash flows have not
been adjusted.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount.
An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value,
in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
(cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss
immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss
is treated as a revaluation increase.
Interests in Joint Operations
g.
The Company’s share of the assets, liabilities, revenue and expenses of joint operations are included in the
appropriate items of the financial statements.
h. Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits. Those cash flows are discounted using market yields on national government bonds with terms
to maturity that match the expected timing of cash flows.
Equity-settled compensation
The Company operates equity-settled share-based payment employee share and option schemes. The fair
value of the equity to which employees become entitled is measured at grant date and recognised as an
expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is
ascertained as the market bid price. The fair value of options is ascertained using a Black–Scholes pricing
model which incorporates all market vesting conditions. The number of shares and options expected to vest is
reviewed and adjusted at each reporting date such that the amount recognised for services received as
consideration for the equity instruments granted shall be based on the number of equity instruments that
eventually vest.
Page 42
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
i. Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
j. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, term deposits with banks
that allow to be closed with a notice of 3 months or less, other short-term highly liquid investments with
original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown within short-term
borrowings in current liabilities on the balance sheet.
k. Revenue and Other Income
Interest income is recognised using the effective interest method.
Government grants are recognised at fair value where there is reasonable assurance that the grant will be
received and all grant conditions will be met.
l.
Inventories
Crushed Ore at site and port and run of mine ore stockpiles are physically measured or estimated and valued
at the lower of cost or net realisable value. Net realisable value is the estimated selling price (in the ordinary
course of business assuming sales are made at the end of the reporting period such that applicable price for
the next month to coincide with time it reaches customer’s discharge port), less estimated costs of completion
and costs of selling final product.
Cost is determined using the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in
converting materials into finished goods.
m. Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office (“ATO”). In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the
statement of financial position.
The GST components of cash flows arising from investing and financing activities which are recoverable from,
or payable to, the ATO are classified as operating cash flows.
n. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
Page 43
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
o. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the Company.
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The Company recognises management’s best estimate for asset retirement
obligations in the period in which they are incurred. Actual costs incurred in the future periods could differ
materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of this provision.
Key Judgements – Ore reserve and resource estimates
The Company estimates its ore reserves and mineral resources based on information compiled by Competent
Persons (as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Resources (the JORC Code)). These are taken into account in the calculation of
depreciation, amortisation, impairment, deferred mining costs, rehabilitation and environmental expenditure.
In estimating the remaining life of the mine for the purposes of amortisation and depreciation calculations,
due regard is given, not only to remaining recoverable ore contained in reserves and resources , but also to
limitations which could arise from the potential for changes in technology, demand, and other issues which are
inherently difficult to estimate over a lengthy time frame.
Where a change in estimated recoverable ore over the remaining life of the mine is made, depreciation and
amortisation is accounted for prospectively.
The determination of ore reserves and remaining mine life affects the carrying value of a number of the
Company’s assets and liabilities including deferred mining costs and the provision for rehabilitation.
Key Judgements – Units-of-production depreciation
Estimated recoverable ore over the remaining life of the mine are used in determining the depreciation and /
or amortisation of mine specific assets. This results in a depreciation / amortisation charge proportional to the
depletion of the anticipated remaining life of mine production. Each item’s life, which is assessed annually, has
regard to both its physical life limitations and to present assessments of economically recoverable ore over the
remaining life of the mine of the mine property at which the asset is located. These calculations require the
use of estimates and assumptions, including the amount of recoverable ore over the remaining life of the mine
and estimates of future capital expenditure.
Key Judgements – Inventories
Costs incurred in or benefits of the productive process are accumulated as Crushed Ore at site and port and
run of mine ore stockpiles. Net realisable value tests are performed at least annually and represent the
estimated future sales price of the product based, less estimated costs to complete production and bring the
product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the
Stockpile. Stockpile tonnages are verified by periodic surveys.
Key Judgements – Deferred exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves, refer to the accounting
policy stated in note 1(c). The application of the Company’s accounting policy for exploration and evaluation
expenditure requires judgment in determining whether it is likely that future economic benefits are likely
either from future exploitation or sale or where activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC)
Page 44
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
resource is itself an estimation process that requires varying degrees of uncertainty depending on sub-
classification and these estimates directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make certain estimates and assumptions about
future events or circumstances, in particular whether an economically viable extraction operation can be
established. Estimates and assumptions made may change if new information becomes available.
Key Judgements – Mine Development expenditure
Mine Development expenditure are carried forward in respect of each identifiable area of interest where a
mineable resource has been established and published as per JORC guidelines and has reached a stage that
permits reasonable assessment that necessary steps to commence a mining development for that area have
been commenced. Refer to the accounting policy stated in Note 1(d). The net carrying value of each area of
interest is reviewed using long term commodity price forecasts from within the range of forecasts by Industry
analysts as per Note 1(d).
Key Judgements- Determining th e lease term of contract with renewal and termination
options- Company as lessee
The Company determines the lease term as non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised. The Company has a lease
contract that includes an extension option. The Company applies judgement in evaluating whether it is
reasonably certain whether or not to exercise the renewal option of the lease. That is, it considers all relevant
factors that create an economic incentive for it to exercise the renewal. After the commencement date, the
Company re-assesses the lease term if there is a significant event or a change in circumstances that is within its
control and affects its ability to exercise or not exercise the option to renew or to terminate (e.g.: construction
of significant leasehold improvements or significant customisation to the leased asset).
Key Judgements- Rehabilitation Provision
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment.
The Company makes a provision for restoration, rehabilitation and environmental costs as soon as the
obligation arises. Cost estimates at the start of each project / stage are capitalised and charged to the income
statement over the life of the project through depreciation and amortisation of the asset.
Costs are estimated using either the work of external consultants or internal experts. Management uses its
judgement and experience to provide for these estimated costs at higher of the estimated costs or the security
for rehabilitation costs provided to the Government authorities.
Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there
are numerous factors that will affect the ultimate costs incurred. These factors include estimates of the extent
and costs of rehabilitation activities, technological changes, regulatory changes etc. These uncertainties may
result in future actual expenditure differing from the amounts currently provided.
Key Judgements- Measurement of fair values
The board has overall responsibility for overseeing all significant fair value measurements, including Level 2
and level 3 fair values.
Management reviews significant unobservable inputs and valuation adjustments. If third party information,
such as off-market trades, then management assesses the evidence obtained to support the conclusion that
these valuations meet the requirements of the Standards, including the level in the fair value hierarchy in
which the valuations should be classified.
Page 45
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
When measuring the fair value of an asset, the Company uses observable market data as far as possible. Fair
values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows.
▪
▪
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
▪
In order to estimate the fair value of the equity investments held in Metal Groves Limited (MGA), the
management has assessed that the deemed issue price of $0.20 per share agreed between the Company and
MGA, which is the same share price upon IPO of Metals Grove Limited is the fair value of the shares as at year-
end. MGA was admitted to ASX only on 4th July 2022 and the share price at that was $0.14 per share. As such
management has applied Level 2 inputs, being the off-market trades of the MGA shares. Subsequent to
financial year, these financial assets will be carried at Level 1 as the MGA shares are now listed on ASX.
p. Operating segments
Identification and measurement of segments – AASB 8 requires the ‘management approach’ to the
identification measurement and disclosure of operating segments. The ‘management approach’ requires that
operating segments be identified on the basis of internal reports that are regularly reviewed by the entity’s
chief operating decision maker, for the purpose of allocating resources and assessing performance. This could
also include the identification of operating segments which sell primarily or exclusively to other internal
operating segments.
q. Accounting standards not yet effective
A number of new standards, amendments to standards and interpretations issued by the AASB which are not
yet mandatorily applicable to the Company have not been applied in preparing these financial statements. The
Board expects no impact on the financial statements of the Company.
r. Contributed equity
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.
s. Earnings per share
Basic Earnings per Share
Basic earnings per share is determined by dividing net profits after income tax attributable to members
of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares during the 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 the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
Page 46
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 2: KEY MANAGEMENT PERSONNEL COMPENSATION
Key management personnel (“KMP”) remuneration has been included in the Remuneration Report section of
the Directors’ Report. Total amount payable was as follows:
Short-term employee benefits
Salaries including bonuses and fees
Total short-term employee benefits
Long service leave
Share and Share Options
Total other long-term benefits
Superannuation
Total post-employment benefits
Total remuneration
2023
$
386,759
386,759
0
0
0
31,204
31,204
417,963
2022
$
395,455
395,455
0
0
0
39,545
39,545
435,000
Total KMP remuneration is included in “Employee and Consulting Fees” in the statement of Profit or Loss and
other Comprehensive income other than the Consulting Fee of Michael Busbridge of $89,577 for the financial
year ended 30th June 2023 which are capitalised as Exploration & Evaluation expenditure.
The salary of Martin Bennett of $90,000 for the financial year ended 30th June 2022 (2021 : $25,385) are
capitalised as Exploration & Evaluation expenditure.
NOTE 3: EXPENSES INCLUDED IN INCOME STATEMENT
Depreciation of plant and equipment and right-
of-use asset
Employee and consulting fees
30-Jun-2023
$
30-Jun-2022
$
12,200
393,339
11,250
404,744
NOTE 3A: AUDITOR’S REMUNERATION
Remuneration paid or payable to the auditor for:
– Auditing or reviewing the financial report
30-Jun-2023
$
30-Jun-2022
$
28,959
28,959
26,961
26,961
Page 47
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 4: INCOME TAX
The major components of tax expense and the reconciliation of the
expected tax expense based on the effective tax rate of Catalina
Resources Limited at 25% (2022: 25%) and the reported tax expense
in profit or loss are as follows:
Tax expense comprises:
(a) Current tax expense
Under provision in respect of prior years
Deferred tax expense
Under provision in respect of prior years
Tax expense
30 June 2023
30 June 2022
$
$
-
-
-
-
-
-
-
-
-
-
(b) Accounting (loss)/ profit excluding income tax
(1,431,533)
131,370
Prima facie income tax expense
(357,883)
32,842
Non-Deductible expenses
Deferred Tax Asset not brought to account
Income tax expense (benefit)
30,000
327,883
-
56
(32,898)
-
NOTE 4A: DEFERRED TAX ASSET / LIABILITY
Recognised Deferred Tax Balances
DTA - Temp Differences
2,217,473
1,963,976
DTL
Net DTA
Deferred tax assets recognised
Tax Losses
Provisions
Other
Set-off deferred tax liabilities
Net deferred tax assets
(2,217,473)
(1,963,976)
-
-
-
2,052,291
165,182
(2,217,473)
-
-
1,868,137
95,839
(1,963,976)
-
Page 48
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Deferred tax liabilities recognised
Exploration expenditure
Mine development costs
Other
Set-off deferred tax assets
Net deferred tax liabilities
30 June 2023
$
30 June 2022
$
488,753
1,692,865
35,855
(2,217,473)
-
296,798
1,656,894
10,284
(1,963,976)
-
e. Deferred Tax Assets not brought to account
Provisions (balance of DTA)
Tax Effect of Unused tax losses for which no deferred tax asset has been
recognised
Total
225,325
351,297
4,421,320
4,646,645
3,967,465
4,318,762
NOTE 5: (LOSS)/PROFIT PER SHARE
a. (Loss)/ Profit used to calculate basic EPS
b. Weighted average number of ordinary shares outstanding
during the year used in calculating basic (loss)/ profit per share
c. Weighted average number of ordinary shares outstanding
during the year used in calculating diluted (loss)/ profit per
share
Basic (loss)/ profit per share (cents per share)
Diluted (loss)/ profit per share (cents per share)
30 June 2023
$
1,431,533
Number of
Shares
30 June 2022
$
131,370
Number of
Shares
1,238,486,892
1,103,625,248
1,300,986,892
1,166,125,248
(0.12)
(0.11)
0.01
0.01
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Bank Term Deposits
Bank Term Deposits has maturity of less than a year and can be
withdrawn or closed anytime with a notice of less than 3
months.
30 June 2023
30 June 2022
$
412,216
3,158,100
3,570,316
$
1,579,700
3,500,000
5,079,700
Page 49
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 6A: RESTRICTED CASH
Cash deposits supporting Guarantees for Rehabilitation Bonds
NOTE 7: OTHER RECEIVABLES
Interest receivable
Other receivables
Advances – exploration
GST and ABN withholding tax receivables
30 June 2023
30 June 2022
$
838,700
$
838,700
30 June 2023
$
30 June 2022
$
81,477
210
11,920
16,922
110,529
7,032
210
11,920
38,133
57,295
NB: At the reporting date, none of the trade and other receivables were past due or impaired.
NOTE 8: INVENTORIES
Iron ore (crushed and uncrushed) at lower of cost and net
realisable value
Provision for impairment
Iron ore (crushed and uncrushed) at lower of cost and net
realisable value
30 June 2023
30 June 2022
$
$
255,630
255,630
(255,630)
(255,630)
-
-
Inventory comprises iron ore stocks that are sub grade material of 27,470 tonnes of uncrushed ROM stocks
and 15,007 of crushed ore. The accounting policy in this regard is Crushed Ore at site and port and run of mine
ore stockpiles are physically measured or estimated and valued at the lower of cost or net realisable value. Net
realisable value is the estimated selling price (in the ordinary course of business assuming sales are made at
the end of the reporting period such that applicable price for the next month to coincide with time it reaches
customer’s discharge port), less estimated costs of completion and costs of selling final product less
impairment. Cost is determined using the weighted average method and comprises direct purchase costs and
an appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred
in converting materials into finished goods.
Page 50
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 9: PLANT AND EQUIPMENT
Movements in Carrying Amounts
Movements in the net carrying amounts for each class of plant and equipment between the beginning and the
end of the financial year are as follows:
Plant and
Equipment
$
Motor
Vehicles
$
Total
$
Opening balance at 1 July 2021
8,615
-
8,615
Additions
Depreciation
-
- -
(1,959)
-
(1,959)
Balance at 30 June 2022
At Cost
6,656
397,169
-
30,067
6,656
427,236
Accumulated depreciation
(390,513)
(30,067)
(420,580)
Balance at 30 June 2022
6,656
Opening balance at 1 July 2022
6,656
-
-
6,656
6,656
Additions
Depreciation
-
- -
(1,959)
-
(1,959)
Balance at 30 June 2023
4,697
-
4,697
At Cost
397,169
30,067
427,236
Accumulated depreciation
(392,472)
(30,067)
(422,539)
Balance at 30 June 2023
4,697
-
4,697
NOTE 10: EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation phase expenditure capitalised
Movements
Opening balance
Exploration capitalised
Exploration impairment
Exploration tenements disposals (refer Note 12)
Closing balance
Page 51
30 June 2023
$
1,955,013
30 June 2022
$
1,187,191
1,187,191
883,412
(115,590)
-
1,955,013
617,063
784,264
-
(214,136)
1,187,191
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The value of the Company’s interest in exploration expenditure is dependent upon the:
•
•
•
the continuance of the economic entity rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of
interest, or alternatively, by their sale.
The exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites
of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may
be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it
is not possible to quantify whether such claims exist, or the quantum of such claims.
There was an impairment of $115,590 during the year being the capitalised Exploration expenditure for
the tenements relinquished during the year, being EL 9017, EL 9310 and ELA 38/3727.
NOTE 10A: MINE DEVELOPMENT
30 June 2023
30 June 2022
Opening Balance
Mine Development capitalised
Provision for impairment
Closing Balance
$
188,835
65,137
(231,070)
22,902
$
-
188,835
-
188,835
There was a provision for impairment of $231,070 of development expenditure at Nelson Bay River Iron
Project for expenditure till the period there was uncertainty with the approval process which was resolved
in early 2023 after agreeing with the regulators that the company will make a new EPBC referral for the
DSO project .
NOTE 11: RIGHT-OF-USE ASSET AND LEASE LIABILITY
The Company's lease portfolio includes the office lease. The average term of the lease is 1-3 years.
A. Right-of-Use assets
Land and Building
Opening Balance
Additions to right-of-use assets
Depreciation charge for the year
Carrying value at end of the year
B. Amounts recognised in profit or loss
Interest on lease liabilities (included in finance charges)
Depreciation - right of use asset
C. Amounts recognised in statement of cash flows
Repayment of lease liabilities
Page 52
30 June 2023
$
6,194
36,416
(10,240)
32,370
30 June 2022
$
15,485
-
(9,291)
6,194
1,040
10,240
624
9,291
(11,566)
(10,541)
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
D. Extension options
The office lease contains extension options exercisable by the Company up to one year before the end
of the contract period.
The Company assesses at the lease commencement date whether it is reasonably certain to exercise
the options the extension options.
The Company uses hindsight in determining the lease term where the contract contains options to
extend or terminate the lease.
E. Lease Liability
Current
Property Lease Liability
Non-Current
Property Lease Liability
Total Lease Liability
NOTE 12: FINANCIAL ASSETS AT FAIR VALUE
Opening Balance
Shares in Metals Grove Limited issued as Sale
consideration for sale of Arunta JV
Loss on fair valuation
Closing Balance
30 June 2023
$
30 June 2022
$
11,191
7,034
21,732
32,923
-
7,034
30 June 2023
30 June 2022
$
950,000
-
427,500
522,500
$
-
950,000
-
950,000
Sale of interest in Arunta Joint Venture to Metals Groves Mining Ltd (MGA) was done during the FY 2022 for
$1,000,000 (consisting of cash payment of $50,000 and issue to SHH 4,750,000 fully paid ordinary shares in the
capital of MGA at a deemed issue price of $0.20 each.
In order to estimate the fair value of the equity investments held in Metal Groves Limited (MGA), the
management has assessed that the deemed issue price of $0.20 per share agreed between the Company and
MGA, which is the same share price upon IPO of Metals Grove Limited was the fair value of the shares as at
30th June 2022 as MGA was admitted to ASX only on 4th July 2022 .
The fair value as at 30th June 2023 is based on the closing share price of $0.11 per share on 30th June 2023.
These shares are under escrow for 24 months from date of admittance of MGA on ASX & hence non- current
asset.
NOTE 13: TRADE AND OTHER PAYABLES
Current
Trade creditors
Other creditors and accruals
30 June 2023
30 June 2022
$
$
154,455
16,934
171,389
148,245
30,482
178,727
Page 53
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 14: REHABILITATION PROVISION
Opening Balance
Closing Balance
30 June 2023
30 June 2022
$
827,000
827,000
$
827,000
827,000
Rehabilitation provision was provided for Nelson Bay River Iron Project. This provision is secured by security
deposits/Bond held with Mineral Resources Tasmania (Note 6A).
NOTE 15: CONTRIBUTED EQUITY
1,238,486,892 (2022: 1,238,486,892) Fully paid ordinary shares
25,695,326
25,695,326
30 June 2023
30 June 2022
$
$
Movements
Opening balance
Shares issued (Placement)
Capital raising costs
Closing balance
(a) Ordinary Shares
At the beginning of the year
Shares issued (Placement)
At end of year
(b) Options
Opening balance
Closing balance
25,695,326
-
-
25,695,326
23,062,121
2,804,000
(170,795)
25,695,326
Number of
Shares
Number of
Shares
30 June 2023
30 June 2022
1,238,486,892
1,063,236,892
-
175,250,000
1,238,486,892
1,238,486,892
Number of
Options
Number of
Options
30 June 2023
30 June 2022
62,500,000
62,500,000
62,500,000
62,500,000
(c) Share Performance Rights (“SPR”)
There were no Share Performance Rights (“SPR”) at the beginning and end of financial year.
Page 54
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
(d) Capital risk management
The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern,
so that they may continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready
access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the
Company’s capital risk management is the current working capital position against the requirements of the
Company to meet exploration programmes and corporate overheads. The Company’s strategy is to ensure
appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required. The working capital position of the Company at 30 June 2023 and 30
June 2022 are as follows:
30 June 2023
30 June 2022
Cash and cash equivalents
Bank Term Deposits
Other receivables
Prepayments
Trade and other payables, lease liability,
provisions and accruals
Working capital position
NOTE 16: ACCUMULATED LOSSES AND RESERVES
a. Accumulated Losses
At the beginning of the year
Net (loss)/ profit for the year
At the end of the year
b. Option Reserve
At the beginning of the year
Net (loss)/ profit for the year
At the end of the year
$
412,216
3,158,100
110,529
29,569
(352,156)
3,358,258
30 June 2023
$
(19,393,943)
(1,431,533)
(20,825,476)
1,015,858
-
1,015,858
$
1,579,700
3,500,000
57,295
27,912
(198,242)
4,966,665
30 June 2022
$
(19,525,313)
131,370
(19,393,943)
1,015,858
-
1,015,858
The option reserve represents the fair value of the actual or estimated number of unexercised share options
granted to management, advisors and suppliers of the Company recognised in accordance with the accounting
policy adopted for share- based payments. Please refer Note 23 for more information.
During the year nil (2022: nil) options and nil (2022: nil) Share Performance Rights were issued.
Page 55
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 17: COMMITMENTS
The Company has tenements rental and expenditure
commitments of:
Payable:
– not later than 12 months
– between 12 months and 5 years
– greater than 5 years
30 June 2023
30 June 2022
$
$
338,486
917,350
-
455,132
1,840,590
68,362
NB: The rental and expenditure commitments for Exploration Licence Applications have not been considered
pending grant of the tenements.
NOTE 18: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any other contingent liabilities or contingent assets other than mentioned elsewhere
in the financial report.
NOTE 19: CASH FLOW INFORMATION
30 June 2023
30 June 2022
$
$
Reconciliation of Cash Flow from Operations
with (Loss)/ Profit for the year
(Loss)/ Profit for the year
Non-cash flows:
Tenement impairment/relinquishment
Depreciation
Interest on lease liability
Provision- Impairment of Mine Development
Share-based Payment expense
Gain on sale of Arunta Joint Venture
Loss on fair value of assets
Changes in assets and liabilities
(Increase)/decrease in other receivables and
prepayments
Increase/(decrease) in trade and other payables
Increase/(decrease) in provision for employee
entitlements
(1,431,533)
131,370
115,590
12,200
-
231,070
-
-
427,500
(54,891)
143,838
230
(555,996)
-
11,250
624
-
-
(735,076)
-
(23,481)
125,408
(1,721)
(491,626)
Non-cash investing and financing activities
(1) During FY 2022, the Company sold its Arunta Joint Venture to Metal Groves Mining Ltd (MGA) for a
consideration of $50,000 and 4,750,000 shares of MGA at a deemed issue price of $0.20 per share.
Page 56
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Gain on sale of Arunta JV of $785,076 ( $50,000 in cash & balance $735,076 non- cash) was
recognised in the Statement of Profit or Loss and Other Comprehensive income.
(2) There were no non-cash investing and financing activities in the current year.
NOTE 20: OTHER RELATED PARTY TRANSACTIONS
There are no related party transactions except for payments in normal course of business at arm’s length and
for remuneration payments as disclosed in the Remuneration Report.
NOTE 21: FINANCIAL INSTRUMENTS
a. Financial Risk Management
The Company’s financial instruments consist mainly of deposits with banks and receivables and payables.
The main purpose of non-derivative financial instruments is to raise finance for the Company’s operations.
Derivatives are not currently used by the Company for hedging purposes. The Company does not speculate in
the trading of derivative instruments.
i. Treasury Risk Management
The senior executives of the Company meet on a regular basis to analyse currency and interest rate exposure
and to evaluate treasury management strategies in the context of the most recent economic conditions and
forecasts.
ii. Financial Risks
The risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and
credit risk.
Interest rate risk
The Company does not have any debt that may be affected by interest rate risk.
Sensitivity analysis
At 30 June 2023, if interest rates had changed by -/+ 25 basis points from the weighted average rate for the
year with all other variables held constant, post-tax loss for the Company would have been $9,016
lower/higher (2022: $4,155 lower/higher) as a result of lower/higher interest income from cash and cash
equivalents.
Liquidity risk
The Company manages liquidity risk by monitoring forecast cash flows. The decision on how the Company will
raise future capital will depend on market conditions existing at that time. All the financial liabilities of the
Company will mature within 12 months, except for the non-current lease liability which amounted to $21,732
as at year end.
Page 57
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the statement of financial position and notes to the financial statements.
The Company does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the economic entity.
b. Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes. All financial assets and financial liabilities of the Company at the balance date are
recorded at amounts approximating their carrying amount.
The carrying value of other receivables and trade and other payables and lease liability are assumed to
approximate their fair values due to their short-term nature.
For financial assets at fair value through profit or loss are carried using level 2 valuation technique as disclosed
in Note 1 to the financial statements.
c. Interest Rate Risk
The Company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate
as a result of changes in market interest rates and the effective weighted average interest rate for each class of
financial assets and financial liabilities comprises:
Fixed Interest Rate
Floating Interest
Rate
1 Year or Less
1 to 5 Years
Non-Interest Bearing
Total
Weight
Effective
Interest Rate
2023
$
412,108
2022
$
1,579,596
2023
$
3,158,100
2022
$
3,500,000
0
0
0
0
735,000
735,000
0
0
0
0
0
412,108
1,579,596
3,893,100
4,235,000
0
0
0
0
0
0
0
0
Cash
Other
Assets
(Security
Deposits)
Financial
Assets at
fair value
Trade and
other
receivables
Total
Financial
Assets
Financial
Liabilities
Trade and
other
payables
Total
Financial
Liabilities
2023
$
0
0
2022
$
0
2023
$
108
2022
$
104
2023
$
3,570,316
2022
$
5,079,700
2023
%
3.35%
2022
%
0.58%
0
103,700
103,700
838,700
838,700
3.62%
1.82%
0
0
0
522,500
950,000
522,500
950,000
N/A
N/A
0
110,529
57,295
110,529
57,295
N/A
N/A
0
736,837
1,111,099
5,042,045
6,925,695
0
171,389
178,727
171,389
178,727
N/A
N/A
0
171,389
178,727
171,389
178,727
0
0
0
0
Page 58
C A T A L I N A R E S O U R C E S L T D
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 22: OPERATING SEGMENTS
The Company operates predominately in one segment involved in mineral exploration and development.
Geographically, the entity is domiciled and operates in one segment being Australia. In accordance with AASB
8 Operating Segments, a management approach to reporting has been applied. The information presented in
the Statement of Profit or Loss and Other Comprehensive Income and the Statement of Financial Position
reflects the sole operating segment.
NOTE 23: SHARE-BASED PAYMENTS
During the year, there were no share-based payments (2022: nil).
NOTE 24: AFTER BALANCE SHEET DATE EVENTS
Resources Regulator, NSW has, in July 2023, accepted the Mining Act Enforceable Undertaking (“EU”) by
Catalina Resources Ltd, concerning alleged contraventions at EL9155, including a minimum expenditure of
$141,964 in carrying out terms of the EU. Till the date of this report, $141,964 has been spent under this
undertaking and the Company does not expect any further expenditure in this regard.
There has not arisen in the interval between the end of the financial year and the date of this report any other
transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company to
affect substantially the operations of the Company, the results of those operations or the state of affairs of the
Company in subsequent financial years.
NOTE 25: SUBSIDIARY
The Company has 100% interest in Mammoth Minerals Limited (previously known as Catalina Minerals
Limited) incorporated in Australia for $1. The subsidiary has been dormant since incorporation. As the
subsidiary has no assets or liabilities, consolidated financial statements have not been prepared. The
Statement of Financial Position, Statement of Profit or Loss and Other Comprehensive Income, Statement of
Changes in Equity and Statement of Cashflows for the year then ended as shown in these financial statements
are considered to constitute those of the Group.
Page 59
C A T A L I N A R E S O U R C E S L T D
DIRECTORS’ DECLARATION
1. In the opinion of the directors of Catalina Resources Limited (‘the Company’):
(a) The financial statements and notes as set out on pages 31 to 59 are in accordance with the Corporations
Act 2001, including:
(i) giving a true and fair view of the financial position of the Company as at 30 June 2023 and of
its performance, as represented by the results of its operations and its cash flows, for the
financial year ended on that date; and
(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001, and
other mandatory professional reporting requirements; and
(b) The audited remuneration disclosures included in the Directors’ report for the year ended 30 June 2023,
comply with section 300A of the Corporations Act 2001.
(c) Having regard to matters as set forth in Note 1, there are reasonable grounds to believe that the Company
will be able to pay its debts as and when they become due and payable.
(d) The Company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
2. The directors have been given the declarations required by Section 295A of the Corporations Act from the
chief executive officer and chief financial officer for the financial year ended 30 June 2023.
Dated at Unit 38, 18 Stirling Highway, Nedlands, WA 6009 this 22nd day of September 2023.
Signed in accordance with a resolution of the directors:
______________________
Sanjay Loyalka
Director
Page 60
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
CATALINA RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Catalina Resources Limited (“the Company”) which comprises the
statement of financial position as at 30 June 2023, the statement of profit or loss and other comprehensive
income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes
to the financial statements, including a summary of significant accounting policies, and the directors'
declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
(i)
giving a true and fair view of the Company’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Company 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 report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. The matter was 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 this matter.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Key Audit Matters
How the matter was addressed in the audit
Carrying Value of Exploration and Evaluation
Assets
Refer to Note 10 to the financial report)
As at 30 June 2023, capitalised exploration and
evaluation costs amounted to $1,955,013.
The carrying value of exploration and evaluation is a
key audit matter due to:
•
•
•
The significance of the expenditure capitalised
representing 27.5% of total assets;
to assess management’s
The necessity
application of
the
requirements of
the
accounting standard AASB 6 Exploration for
and Evaluation of Mineral Resources (“AASB
6”), considering any indicators of impairment
that may be present: and
The assessment of significant judgements
the
to
made by management
capitalised
evaluation
exploration
expenditure and mine development costs.
in relation
and
Inter alia, our audit procedures
following:
included
the
i. Assessed the Company’s right to tenure over
exploration assets by corroborating
the
ownership of the relevant licences for mineral
resources to government registries and relevant
third-party documentation;
ii. Testing additions to exploration and evaluation
costs by evaluating a sample of recorded
to underlying
expenditure
accounting
capitalisation
requirements of the Company’s accounting
policy and the requirements of AASB 6;
for consistency
the
records,
iii. Reviewing the directors’ assessment of the
carrying value of the capitalised exploration and
evaluation costs, ensuring the veracity of the
data presented and assessing management’s
consideration of potential impairment indicators,
commodity prices and
the
the stage of
Company’s projects also against AASB 6;
iv. Evaluating
the Company’s documents
for
consistency with the intentions for continuing
exploration and evaluation activities in areas of
interest and corroborated in discussions with
management. The documents we evaluated
included:
▪ Minutes of the board and management;
and
▪ Announcements made by the Company
to the Australian Securities Exchange;
and
v. Assessing the appropriateness of the related
in
financial statements
the
in
disclosures
accordance with AASB 6.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Company’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 opinion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Company 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 Company or to cease operations,
or has no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the company audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among 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.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. 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 key audit matters. We describe these
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 communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 23 to 28 of the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Catalina Resources 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.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Eliya Mwale
Director
West Perth, Western Australia
22 September 2023
C A T A L I N A R E S O U R C E S L T D
ADDITIONAL INFORMATION
The following additional information not shown elsewhere in the report is required by the Australian Securities
Exchange Ltd in respect of listed public companies only. This information is current as at 18th September 2023.
SUBSTANTIAL SHAREHOLDERS
The company has received substantial shareholder notices from:
– RB Investments Pte Ltd (210,121,723 ordinary shares)
–
Sanjay Loyalka (106,173,691 ordinary shares & 25,000,000 unlisted options)
ISSUED SECURITIES
Refer note 15 of the financial statements.
VOTING RIGHTS
The voting rights attached to the Fully Paid Ordinary shares of the Company are:
1. At a meeting of members or classes of members each member entitled to vote may vote in person or by
proxy or by attorney; and
2. On a show of hands every person present who is a member has one vote, and on a poll every person
present in person or by proxy or attorney has one vote for each ordinary share held.
DISTRIBUTION SCHEDULE – SHAREHOLDINGS AS AT 18th September 2023
Securities
Fully Paid Ordinary
Shares
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-
9,999,999,999
Totals
Holders
37
18
155
616
825
1,651
Total Units
5,767
60,784
1,520,901
33,151,979
1,203,747,461
1,238,486,892
%
0.000
0.000
0.120
2.680
97.200
100.000
UNMARKETABLE PARCELS
There are 879 unmarketable parcels as at 18th September 2023 totalling 40,747,781 ordinary shares.
Page 65
C A T A L I N A R E S O U R C E S L T D
ADDITIONAL INFORMATION
20 LARGEST SHAREHOLDERS AS AT 18th September 2023
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
IACG PTY LTD
CITICORP NOMINEES PTY LIMITED
MR PAUL COLEMAN
MS CHUNYAN NIU
MR VIKRANT JINDAL
MR DAVID WILLIAM MOSS
CHINA ALLIANCE INTERNATIONAL HOLDINGS GROUP LIMITED
MR ALEX GORDON
MR SANJAY KUMAR LOYALKA
MEGAWILD ENTERPRISES PTY LTD
OCEANIA COAL RESOURCES NL
SUPERHERO SECURITIES LIMITED
MR RUPERT JAMES GRAHAM LOWE
HELMSDALE INVESTMENTS PTY LTD
MOUNT STREET INVESTMENTS PTY LTD
MR PATRICK ROMAN GALICKI
MR SHANE ROY WOOLFORD
AMRITLAL V SHAH & NEETA A SHAH
MR SAMUEL JACOB CARROLL
Total Securities of Top 20 Holdings
Total of Securities
217,313,417
84,142,411
31,723,236
30,815,323
28,500,000
27,722,000
25,450,000
23,223,632
22,000,000
21,931,280
15,736,240
15,000,000
14,216,250
13,244,128
11,875,000
9,625,750
9,100,000
7,010,389
6,968,460
6,089,491
17.547%
6.794%
2.561%
2.488%
2.301%
2.238%
2.055%
1.875%
1.776%
1.771%
1.271%
1.211%
1.148%
1.069%
0.959%
0.777%
0.735%
0.566%
0.563%
0.492%
621,687,007 50.197%
1,238,486,892
Page 66
C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
This Corporate Governance statement for 30 June 2023 as approved by the Board, outlines the main corporate
governance practices in place during the financial year.
The Directors on behalf of the shareholders monitor the business affairs of the Company. For this, they
formally have adopted a Corporate Governance Charter, which is designed to encourage Directors and other
Catalina personnel to focus their attention on accountability, risk management, and ethical conduct. The
Company has adopted the following policies, protocols, and corporate governance structures:
Charters and Codes
Board Charter
Corporate Code of Conduct
Audit and Risk Committee Charter
Remuneration Committee Charter
Nomination Committee Charter
Policies
Performance Evaluation Policy
Continuous Disclosure Policy
Risk Management Policy
Securities Policy
Diversity Policy
Whistleblower Protection Policy
Anti- Bribery and Anti- Corruption Policy
Shareholder Communications Strategy
This statement describes Catalina Resources Ltd’s position in relation to each of the recommendations set by
the ASX Corporate Governance Council (“Recommendations”). The Recommendations are set out in the
ASX Corporate Governance Council’s Corporate Governance Principles and recommendations (4th Edition). So
as to ensure that its practices are largely consistent with those Recommendations from time to time, the
Corporate Governance Charter will be reviewed and adjusted, as required, on an on-going basis including in
line with the ASX Corporate Governance Council amendments to the Recommendations.
The Company is committed to implementing high standards of corporate governance. In determining what
those high standards should involve the Company has turned to the ASX Corporate Governance Council’s
Principles of Good Corporate Governance and Best Practice Recommendations. The Company is pleased to
advise that the Company’s practices are largely consistent with those ASX guidelines.
Board Composition
The skills, experience, and expertise relevant to the position of each director who is in office at the date of the
annual report and their term of office are detailed in the director’s report.
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
The Board sets out below its “Satisfied/Not Satisfied” & “if not why not” report in relation to those matters of
corporate governance where the Company’s practices depart from the Recommendations
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
1.1
A listed entity should have and disclose a board charter
setting out:
(a) the respective roles and responsibilities of its board
and management; and
(b) those matters expressly reserved to the board and
those delegated to management.
Satisfied.
Charter
is
Board
www.catalinaresources.com.au
Governance Section.
available
the
at
Corporate
in
1.2
A listed entity should:
Satisfied.
(a) undertake appropriate checks before appointing a
director or senior executive or putting someone
forward for election as a director; and
Nomination Committee Charter
www.catalinaresources.com.au
in
Governance Section.
is
available
at
Corporate
the
(b) provide security holders with all material
information in its possession relevant to a decision on
whether or not to elect or re-elect a director.
1.3
A listed entity should have a written agreement with
each director and senior executive setting out the
terms of their appointment.
Satisfied.
All directors and senior executives are provided with
formal letter of appointment which sets out the terms
and conditions of appointment including their duties,
rights, responsibilities and expectations.
1.4
The company secretary of a listed entity should be
accountable directly to the board, through the chair,
on all matters to do with the proper functioning of the
board.
Satisfied.
The company secretary is accountable directly to the
board on all matters to do with the proper functioning of
the board.
1.5
A listed entity should:
Not Satisfied.
Policy
Diversity
is
www.catalinaresources.com.au
Governance Section.
available
at
Corporate
in
the
The company considers that given the current small size
of the company’s operations where there are very few
employees, this objective is not practical to be achieved
till such time that the company’s operations are
increased.
(a) have and disclose a diversity policy;
(b) through its board or a committee of the board set
measurable objectives for achieving gender diversity in
the composition of its board, senior executives and
workforce generally; and
(c) disclose in relation to each reporting period:
(1) the measurable objectives set for that period to
achieve gender diversity;
(2) the entity’s progress towards achieving those
objectives; and
(3) either:
(A) the respective proportions of men and women on
the board, in senior executive positions and across the
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
whole workforce (including how the entity has defined
“senior executive” for these purposes); or
(B) if the entity is a “relevant employer” under the
Workplace Gender Equality Act, the entity’s most
recent “Gender Equality Indicators”, as defined in and
published under that Act.
the
reporting period,
If the entity was in the S&P/ASX 300 Index at the
the
commencement of
measurable objective for achieving gender diversity in
the composition of its board should be to have not less
than 30% of its directors of each gender within a
specified period.
1.6
A listed entity should:
Not satisfied.
(a) have and disclose a process for periodically
evaluating
its
committees and individual directors; and
the performance of
the board,
Evaluation
Performance
www.catalinaresources.com.au
Governance Section.
Policy
in
is
available
at
Corporate
the
(b) disclose for each reporting period whether a
in
performance evaluation has been undertaken
accordance with that process during or in respect of
that period.
Whilst the performance of the Board is appraised on an
ongoing basis, during the year no formal appraisal was
conducted.
1.7
A listed entity should:
Not satisfied.
(a) have and disclose a process for evaluating the
performance of its senior executives at least once
every reporting period; and
(b) disclose for each reporting period whether a
performance evaluation has been undertaken
in
accordance with that process during or in respect of
that period.
Evaluation
Performance
www.catalinaresources.com.au
Governance Section.
Policy
in
is
available
at
Corporate
the
Whilst the performance of management is appraised on
an ongoing basis, during the year no formal appraisal of
management was conducted.
2.1
The board of a listed entity should:
Not satisfied.
(a) have a nomination committee which:
(1) has at least three members, a majority of whom are
independent directors; and
Nomination Committee Charter
www.catalinaresources.com.au
in
Governance Section.
is
available
at
Corporate
the
The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation. Accordingly, the Board has not established
a nomination committee.
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the
numberof times the committee met throughout the
periodand the individual attendances of the members
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
atthose meetings; or
(b) if it does not have a nomination committee,
disclose that fact and the processes it employs to
address board succession issues and to ensure that the
board has the appropriate balance of skills, knowledge,
experience, independence and diversity to enable it to
discharge its duties and responsibilities effectively.
2.2
A listed entity should have and disclose a board skills
matrix setting out the mix of skills that the board
currently has or
its
looking
membership.
to achieve
in
is
Satisfied.
The Board has been formed so that it has effective
composition, size and commitment
to adequately
discharge its responsibilities and duties given its current
size and scale of operations.
Please also refer to the Nomination Committee Charter
which is available at www.catalinaresources.com.au in the
Corporate Governance Statement.
2.3
A listed entity should disclose:
Satisfied.
(a) the names of the directors considered by the board
to be independent directors;
(b) if a director has an interest, position or relationship
of the type described in Box 2.3 but the board is of the
opinion that it does not compromise the independence
of the director, the nature of the interest, position or
relationship in question and an explanation of why the
board is of that opinion; and
(c) the length of service of each director.
2.4
A majority of the board of a listed entity should be
independent directors.
Disclosed in the Directors report.
Currently there are no independent directors.
Not Satisfied.
Due to the size of the company and its operations the
Board has determined increasing the size of the Board to
achieve this would not be efficient.
2.5
2.6
The chair of the board of a listed entity should be an
independent director and, in particular, should not be
the same person as the CEO of the entity.
Not Satisfied.
Due to the size of the company and its operations.
A listed entity should have a program for inducting
new directors and for periodically reviewing whether
there is a need for existing directors to undertake
professional development to maintain the skills and
knowledge needed to perform their role as directors
effectively.
Not Satisfied.
Due to the size of the company and its operations.
informal
Non
induction process exists. The process
includes the new Directors meeting with the other Board
members and the senior management in order to gain an
insight into the key issues and culture of the Company.
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
3.1
A listed entity should articulate and disclose its values.
Satisfied. The Company has adopted statement of values
as disclosed in its website.
The company’s vision is to create shareholder value
through the successful exploration of prospective mineral
tenements and the development of these ore bodies into
production. The Company expects Directors, Officers and
Employees to practice honesty, integrity and observe high
standards of business and personal ethics and comply
with all applicable laws and regulations in fulfilling their
duties and responsibilities.
3.2
A listed entity should:
Satisfied.
(a) have and disclose a code of conduct for its
directors, senior executives and employees; and
(b) ensure that the board or a committee of the board
is informed of any material breaches of that code.
of
Code
The
conduct
www.catalinaresources.com.au
Governance Section.
3.3
A listed entity should:
Satisfied.
(a) have and disclose a whistleblower policy; and
(b) ensure that the board or a committee of the board
is informed of any material incidents reported under
that policy.
The Whistleblower
www.catalinaresources.com.au
Governance Section.
Policy
3.4
A listed entity should:
Satisfied.
is
available
at
Corporate
in
the
is
available
at
Corporate
in
the
(a) have and disclose an anti-bribery and corruption
policy; and
(b) ensure that the board or a committee of the board
is informed of any material breaches of that policy.
The Anti-Bribery & Anti-Corruption Policy is available at
www.catalinaresources.com.au
Corporate
Governance Section.
the
in
4.1
The board of a listed entity should:
Not satisfied.
The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation. Accordingly, the Board has not established
an audit committee.
(a) have an audit committee which:
(1) has at least three members, all of whom are non-
executive directors and a majority of whom are
independent directors; and
(2) is chaired by an independent director, who is not
the chair of the board,
and disclose:
(3) the charter of the committee;
(4) the relevant qualifications and experience of the
members of the committee; and
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
(5) in relation to each reporting period, the number of
times the committee met throughout the period and
the individual attendances of the members at those
meetings; or
(b) if it does not have an audit committee, disclose that
fact and the processes it employs that independently
verify and safeguard the integrity of its corporate
reporting, including the processes for the appointment
and removal of the external auditor and the rotation of
the audit engagement partner.
The board of a listed entity should, before it approves
the entity’s financial statements for a financial period,
receive from its CEO and CFO a declaration that, in
their opinion, the financial records of the entity have
been properly maintained and that the financial
statements comply with the appropriate accounting
standards and give a true and fair view of the financial
position and performance of the entity and that the
opinion has been formed on the basis of a sound
system of risk management and internal control which
is operating effectively.
4.2
4.3
A listed entity should disclose its process to verify the
integrity of any periodic corporate report it releases to
the market that is not audited or reviewed by an
external auditor.
5.1
5.2
A listed entity should have and disclose a written policy
for
continuous disclosure
its
obligations under listing rule 3.1.
complying with
A listed entity should ensure that its board receives
copies of all material market announcements promptly
after they have been made.
Page 72
Satisfied.
The Board has received a section 295A declaration
pursuant to the 2020 financial period.
Satisfied.
Where a report does not require an audit or review by an
external auditor, the report is reviewed by the Chief
Executive Officer. Once the Chief Executive Officer has
reviewed and is happy with the report content, it is
circulated internally to any appropriate member before
being circulated to the full board for comment and
approval prior to lodging with the ASX.
Satisfied.
disclosure
Continuous
www.catalinaresources.com.au
Governance section.
policy
is
available
at
Corporate
in
the
Satisfied.
Any announcement is first prepared by the appropriate
department of the Company and forwarded to the Chief
Executive Officer for review. If needed, the Company
Secretary will also review the announcement before it is
then sent to the full board for comment and approval
prior to lodging with the ASX.
C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
5.3
A listed entity that gives a new and substantive
investor or analyst presentation should release a copy
of the presentation materials on the ASX Market
Announcements Platform ahead of the presentation.
Satisfied.
The Company
lodges all presentations prior to any
meeting with analysts. From time to time the Company
will provide a Company Update which is lodged on the
ASX platform ahead of the presentation.
6.1
A listed entity should provide information about itself
and its governance to investors via its website.
6.2
A listed entity should have an
program
facilitates
that
communication with investors.
investor relations
two-way
effective
Satisfied.
The company has provided information about itself and
its governance to investors via its website.
Satisfied.
is available at
Shareholders communication strategy
www.catalinaresources.com.au
Corporate
Governance statement. The company welcomes open
communication with shareholders including the ability for
shareholders to communicate via email.
the
in
6.3
A listed entity should disclose how it facilitates and
encourages participation at meetings of security
holders.
6.4
A listed entity should ensure that all substantive
resolutions at a meeting of security holders are
decided by a poll rather than by a show of hands.
6.5
receive
A listed entity should give security holders the option
to
send
communications to, the entity and its security registry
electronically.
communications
from,
and
Satisfied.
The Company encourages all shareholders to attend
meetings of members,
including allowing time for
shareholder questions. The time and place of each
general meeting is decided with Shareholder preferences
in mind,
to encourage maximum attendance by
Shareholders.
Satisfied.
Decisions on all substantive resolutions at general
meetings of the Company will be decided by a poll to
ensure the true will of Shareholders is ascertained (rather
than by a show of hands, which is inconsistent with the
“one security one vote” principle in the ASX Listing Rules).
Satisfied.
The Company has an email where shareholders can
request to receive all information electronically and
offers the same service through its share registry.
Shareholders communication strategy
www.catalinaresources.com.au
Governance statement.
in
is available at
Corporate
the
7.1
The board of a listed entity should:
Not Satisfied.
(a) have a committee or committees to oversee risk,
Audit and Risk Committee Charter
is available at
Page 73
C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
CATALINA RESOURCES LTD CURRENT PRACTICE
www.catalinaresources.com.au
Governance statement.
in
the
Corporate
The Board has not established an Audit and Risk
committee.
The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation.
Policy
Risk Management
www.catalinaresources.com.au
Governance section.
is
available
at
Corporate
in
the
RECOMMENDATION
each of which:
(1) has at least three members, a majority of whom are
independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number
of times the committee met throughout the period
and the individual attendances of the members at
those meetings; or
(b) if it does not have a risk committee or committees
that satisfy (a) above, disclose that fact and the
processes it employs for overseeing the entity’s risk
management framework.
7.2
The board or a committee of the board should:
Not Satisfied.
(a) review the entity’s risk management framework at
least annually to satisfy itself that it continues to be
sound and that the entity is operating with due regard
to the risk appetite set by the board; and
(b) disclose, in relation to each reporting period,
whether such a review has taken place.
The Board is responsible for reviewing annually its risk
management system. The review for this year is yet to be
completed.
7.3
A listed entity should disclose:
Not Satisfied.
(a) if it has an internal audit function, how the function
is structured and what role it performs; or
Given the size of the current operations, currently there is
no internal audit activity undertaken.
(b) if it does not have an internal audit function, that
fact and the processes it employs for evaluating and
its
continually
governance, risk management and internal control
processes.
the effectiveness of
improving
7.4
A listed entity should disclose whether it has any
material exposure to environmental or social risks and,
if it does, how it manages or intends to manage those
risks.
Satisfied.
The Company manages its exposure to economic risk and
environmental risk while it does not consider that it
currently has any material exposure
social
sustainability risks, however will monitor the exposure.
to
External Risk factors that materially have an impact
include :
1. Pandemics like COVID 19
2. Fluctuations in commodity prices
3.
Impacts of ongoing global economic volatility
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CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
4. Currency exchange rate fluctuations
5. Financial : Liquidity and cash flow risks
6.
7. Unexpected natural and operational
Increased costs
catastrophes
EPA Tasmania has notified the company that that the
variation of the Environment permit in Nov’13 to allow a
temporary PAF rock dump for DSO south pit has been
rendered invalid in a judicial review by the Court in Dec’14
for NBR Project . As a consequence, the current PAF
storage temporary dump is not compliant. To resolve the
issue, the Company is pursuing a new permit.
services
company,
carried out under
Resources Regulator, within the Department of Regional
NSW has notified the company in April & June 2022 that
following an inspection of EL 9155, a direction under
s.240 AA of the NSW Mining Act 1992 directing to
suspend all operations under EL. 9155 in relation to a
number of breaches Under section 23A (7) of the Mining
Act 1992 and potential breaches of the National Parks &
Wildlife Act 1974, the Regulator is alleging regarding
access works to the drill sites conducted. On behalf of the
Company, the access works as well as the drilling activities
supervision and
were being
local Consulting Geological &
management of a
Exploration
Rangott Mineral
Exploration Pty. Limited (“RME”) who were fully aware of
all approval conditions. As part of ongoing investigations
by the Department, in mid-May, RME made a submission
to
for
its
The Company has
infringements.
submissions in May and June 2022 that the alleged
contraventions were not caused by Catalina Minerals Ltd,
rather by RME who had extensive mining exploration
experience, and who had been engaged to supervise and
manage the works as a result of COVID-19 travel
restrictions. Resources Regulator, NSW has in July 2023
accepted the Mining Act Enforceable Undertaking (“EU”)
by Catalina Resources Ltd, concerning EL9155. The
Company continues to progress agreed activities to
enable consideration for lifting of suspension.
responsibility
reiterated
the department
accepting
The Company holds various exploration and mining
licences to regulate its activities in Australia. These
licences include conditions and regulations with respect
to the rehabilitation of areas disturbed during the course
of its activities. As far as the Directors are aware, there
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
RECOMMENDATION
CATALINA RESOURCES LTD CURRENT PRACTICE
has been no known breach of the Company’s licence
conditions other than those disclosed in the Directors
report.
implementation of best practice
The
social and
environmental practices, well beyond simple compliance,
has been an integral part of Company's philosophy. The
Company recognises the importance of identifying and
managing
risks and ensuring appropriate control
measures are in place.
8.1
The board of a listed entity should:
Not Satisfied.
The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation. Accordingly, the Board has not established
a remuneration committee.
Remuneration Committee Charter
www.catalinaresources.com.au
in
Governance section.
is available at
Corporate
the
Satisfied.
Current Remuneration policies are set out
Company’s Remuneration Report.
in the
Satisfied.
Securities
The
www.catalinaresources.com.au
Governance statement.
Policy
is
in
available
the
at
Corporate
(a) have a remuneration committee which:
(1) has at least three members, a majority of whom are
independent directors; and
(2) is chaired by an independent director,
and disclose:
(3) the charter of the committee;
(4) the members of the committee; and
(5) as at the end of each reporting period, the number
of times the committee met throughout the period
and the individual attendances of the members at
those meetings; or
(b) if it does not have a remuneration committee,
disclose that fact and the processes it employs for
setting the level and composition of remuneration for
directors and senior executives and ensuring that such
remuneration is appropriate and not excessive.
8.2
A listed entity should separately disclose its policies
and practices regarding the remuneration of non-
executive directors and the remuneration of executive
directors and other senior executives.
8.3
A listed entity which has an equity-based remuneration
scheme should:
(a) have a policy on whether participants are permitted
to enter into transactions (whether through the use of
derivatives or otherwise) which limit the economic risk
of participating in the scheme; and
(b) disclose that policy or a summary of it.
Other Information
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C A T A L I N A R E S O U R C E S L T D
CORPORATE GOVERNANCE STATEMENT
Further information relating to the company’s corporate governance practices and policies has been made
publicly available on the company’s web site at https://www.catalinaresources.com.au/about-us/corporate-
governance
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