2023 ANNUAL REPORT
ACN 009 241 374
TABLE OF CONTENTS
TABLE OF CONTENTS .............................................................................................................................. 2
CORPORATE DIRECTORY ........................................................................................................................ 3
CHAIRMAN’S REVIEW ............................................................................................................................. 4
REVIEW OF OPERATIONS ........................................................................................................................ 5
DIRECTORS’ REPORT ............................................................................................................................... 9
AUDITOR’S INDEPENDENCE DECLARATION ......................................................................................... 26
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................ 27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ....................................................................... 28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ........................................................................ 29
CONSOLIDATED STATEMENT OF CASH FLOWS ....................................................................................30
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS………………………………………………………………..31
DIRECTORS’ DECLARATION ..................................................................................................................73
INDEPENDENT AUDIT REPORT TO THE MEMBERS OF SIHAYO GOLD LIMITED ...................................74
ADDITIONAL SHAREHOLDER INFORMATION .......................................................................................78
SUMMARY OF TENEMENTS HELD BY THE GROUP ................................................................................80
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CORPORATE DIRECTORY
Directors
Colin F Moorhead
(Executive Chairman)
Misha A Collins C.F.A
(Independent Non-Executive Director)
Gavin Caudle
(Non-Executive Director)
Daryl Corp
(Independent Non-Executive Director)
Chief Financial Officer
Roderick Crowther C.F.A
Company Secretary
Susan Park
Registered Office
and Business Address
Suite 1
245 Bay Street,
Brighton VIC 3186
Share Registry
Home Exchange
Auditors
Solicitors
Bankers
Telephone:
Facsimile:
E-mail:
Web:
+61 399359161
(07) 33993172
sihayogold@sihayogold.com
www.sihayogold.com
Automic Group
5/126 Phillip St
Sydney NSW 2000
Telephone:
1300 288 664
Australian Securities Exchange Limited
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
Stantons International Audit and Consulting Pty Ltd
Level 2, 40 Kings Park Road
West Perth WA 6005
Steinepreis Paganin
4/50 Market St
Melbourne VIC 3000
ANZ Banking
111 Eagle St,
Brisbane, QLD. 4000
Sihayo Gold Limited is a company limited by shares, incorporated and domiciled in Australia.
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CHAIRMAN’S REVIEW
Dear Shareholders,
On behalf of the Board of Sihayo Gold Limited (“Sihayo” or the “Company”), I am pleased to present the Annual
Report for the Company for the year ended 30 June 2023.
Following the advancements made in financial year 2022, Sihayo’s focus for the year has been to increase the
value of the Sihayo Starter Project (the “Project”). Following the outcomes of the 2022 Feasibility Study
Update (“2022 FSU”), it was identified that the greatest value uplift for the Sihayo Starter Project would be
through increasing life of mine gold production given the healthy margins of the project. During the 2022 FSU,
the Company identified the potential to use a high pH pre-leaching phase (“Caustic Leaching”) into the
processing flowsheet to significantly increase metallurgical recoveries and therefore life-of-mine gold
production. Caustic Leaching also provided the potential to make previously uneconomic mineralisation
economic.
The Company’s focus for the year therefore centred on delivering the Caustic Leaching opportunity into the
Sihayo Starter Project’s design. This involved the completion of an extensive metallurgical test work program
and re-running of the economic assessment of the project, culminating in the update of the Project’s
economics, as released to the ASX in June 2023.
The incorporation of Caustic Leaching into the Project is truly transformational for the Sihayo Starter Project.
It has not only increased the gold production from existing Ore Reserves, but it has now made deeper, high
grade mineralisation at the Project potentially economic. This mineralisation has, to-date, remained largely
underexplored due to the low estimated metallurgical recoveries. However, Caustic Leaching has the potential
to unlock significant value from this mineralisation.
In following through on the Company’s strategy to increase gold production at the Sihayo Starter Project,
during the year the Company completed a 24-hole, 7,930 m drilling program targeting this beneath pit high
grade mineralisation. The outstanding exploration results from this program, and the subsequent update to
the Mineral Resource estimate for the Project, is vindication of the Company’s strategy. The Company is now
initiating a Concept Study to assess the potential to establish an underground mining operation, either in
conjunction with the existing planned open pit or as a standalone operation.
The Company has also continued prospecting work on other targets on the Contract of Work, with ongoing
sampling work at the Hutabargot Julu and Tambang Ubi prospects continuing to show strong potential for a
major discovery.
The Board and I continue to believe there is a strong future for the Sihayo Starter Project and the broader
Contract of Work which we believe is one of the most prospective exploration packages in Indonesia. Over
the coming year we plan to continue to advance the Sihayo Starter Project towards production while we build
an exciting pipeline of exploration prospects.
We thank our shareholders for their continued support.
Yours Sincerely,
Colin F Moorhead
Executive Chairman
Sihayo Gold Limited
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REVIEW OF OPERATIONS
During the financial year ended 30 June 2023, Sihayo continued to focus its activities on the Sihayo-Pungkut
7th Generation Contract of Work (“CoW”), which it holds through its 75% interest in PT Sorikmas Mining
(“PTSM”).
Sihayo Starter Project
The Company’s primary focus during the financial year ended 30 June 2023 was to progress and add value to
the Company’s most advanced prospect, the Sihayo Starter Project (the “Project”). The Company’s 2022
Feasibility Study Update (“2022 FSU”) had identified that the Project’s value was most sensitive to revenue
factors, including gold production. With the estimated high operating margins of the Project, additional gold
production added to the current life of mine production estimates deliver a significant uplift on project
valuation.
During the 2022 FSU studies the Company identified the opportunity to increase metallurgical recoveries,
particularly for the transitional and fresh mineralisation, by incorporating sodium hydroxide (NaOH or caustic
soda) at a high pH (pH 13) prior to CIL gold recovery in the processing flow sheet. Subsequent to the completion
of the 2022 FSU, the Company completed an extensive metallurgical test work program to further assess the
high pH pre-leaching phase (“Caustic Leaching”) opportunity.
The test work program resulted in an updated metallurgical recovery function which was used to revise the
Ore Reserve estimate for the Project and update the supporting economic analysis. The updated metallurgical
recovery function incorporating Caustic Leaching resulted in an 18% increase in life-of-mine (“LOM”) gold
production to 653 koz.
An updated Ore Reserve estimate is shown in Table 1.
Table 1: Updated Ore Reserve estimate for Sihayo and Sambung deposits
Proved
Probable
Deposit
Tonnes
(kt)
Sihayo
4,454
Sambung
1,075
Total
Notes:
5,529
Gold
(g/t)
2.12
1.72
2.04
Gold
(koz)
Tonnes
(kt)
304
59
363
5,636
562
6,198
Gold
(g/t)
1.96
1.58
1.93
Gold
(koz)
356
29
384
Tonnes
(kt)
10,090
1,638
11,727
Total
Gold
(g/t)
2.03
1.67
1.98
Gold
(koz)
660
88
747
•
•
•
•
•
•
All tonnages are dry metric tonnes.
Ore Reserves are reported inclusive of Mineral Resources.
Sihayo Ore Reserves reported at a Net Smelter Return (“NSR”) cut-off grade of USD 22.18 per tonne for oxide, USD 22.40 per tonne of
transitional, and USD 22.99 per tonne of fresh ore.
Sambung Ore Reserves reported at a NSR cut-off grade of USD 22.24 per tonne of oxide, USD 22.88 per tonne of transitional, and USD
23.48 per tonne of fresh ore.
Ore loss and dilution applied using a 5 m x 5 m x 5 m selective mining unit.
Numbers have been reported to significant figures and may not add due to rounding.
5 | P a g e
REVIEW OF OPERATIONS
The 2023 Feasibility Study Update (“FSUA”) showed considerable improvement in the financial metrics for the
Sihayo Starter Project from the incorporation of Caustic Leaching into the project. Based on a USD1,900/oz
gold price assumption and a 5% discount rate, the post-tax net present value increased by 48% to USD169
million and the IRR increased from 16.2% to 20.4%. This followed increases in capex and opex driven largely
by the inflationary environment since the completion of the 2022 FSU. A comparison of the 2023 FSUA and
the 2022 FSU is shown in Table 2.
Table 2: Comparison of 2023 FSUA and 2022 FSU Outputs (US$1,900/oz gold price)
Metric
LOM tonnes processed
LOM strip ratio
Average gold head grade
Contained gold ounces processed
Average metallurgical recoveries
Total gold produced
Unit
kt
waste:ore
g/t Au
koz
%
koz
Total site operating costs (incl. royalties)
USD/t
Total upfront capital
All-In Sustaining Cost (“AISC”)
Pre-tax LOM cash flow
Post-tax LOM cash flow
Post-tax NPV (at 5% discount rate)
Internal Rate of Return (“IRR”)
Payback period
USD million
USD/oz
USD million
USD million
USD million
%
years
2023 FSUA
2022 FSU
12,303
4.5x
1.97
781
83.6%
653
43.6
221
1,007
353
277
169
20.4%
3.75
12,070
4.6x
2.00
774
71.2%
551
37.0
243
972
258
202
114
16.2%
4.00
The incorporation of Caustic Leaching has additional implications for the Sihayo Starter Project beyond the
existing Ore Reserves. The Sihayo deposit contains a significant portion of mineralisation that has low
recoveries using traditional CIL processing. This mineralisation tends to be higher grade and at depth. As a
result limited exploration beneath the existing designed pit limits has occurred. The incorporation of Caustic
Leaching into the project therefore has the potential to make this mineralisation economic.
The Company sees significant exploration potential beneath the current pit limits. As a result, the Company
completed a 24-hole, 7,930 m diamond drilling program targeting previously underexplored mineralisation
beneath the proposed Sihayo pit shell. The drilling program was very encouraging, providing significant
intercepts, including 50m at 7.75 g/t reported in March 2023. The drilling program culminated in an updated
Mineral Resource estimate released in July, as shown in Table 3.
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REVIEW OF OPERATIONS
Table 3: Updated Mineral Resource Estimate (MRE)
Deposit
Sihayo
Sambung
Category
Measured
Indicated
Inferred
Subtotal
Measured
Indicated
Inferred
Subtotal
Dry tonnes (kt)
Gold grade (g/t)
Au (koz)
5,490
12,900
6,380
24,800
1,790
911
269
2,970
2.2
2.0
1.7
2.0
1.4
1.5
1.3
1.4
384
828
358
1,570
82
45
11
138
Total 1,710
Notes: Figures may not sum due to rounding
Sambung resource is unchanged from the 2022 MRE and figures are reported as per previous announcement
Prior to the latest drilling programs, the Company had engaged a specialist mining consultancy, Mining One
Pty Ltd, to assess the technical viability of establishing an underground mining operation at Sihayo, either in
addition to the proposed open pit or as a standalone operation. The study found that subject to further
geotechnical assessments, an underground drift-and-fill operation would likely be technically viable. The
economic viability of an underground operation depended on the extent of mineralised material available for
extraction. The underground drilling programs were aimed at increasing the high-grade mineralised material
available for a potential underground mining operation.
With the updated resource model and subsequent increase in Mineral Resource estimate for the Sihayo
deposit, which features an increase in high grade mineralisation beneath the pit limits, the Company now
intends conducting a Concept Study as a next stage of assessing the underground mining potential at Sihayo.
Further Exploration
The 66,200 ha CoW, subdivided into two blocks, is located within the Barisan Mountains in North Sumatra
province and within the same highly prospective mineral belt that hosts the large Martabe gold-silver deposit
located about 80 km northwest of the Sihayo project area.
The CoW contains numerous (+20) early to advanced stage gold, silver and base metal prospects that were
defined through reconnaissance-style exploration campaigns between 1995 and 2002. Detailed follow-up
exploration conducted between 2002 and 2013 was largely focussed on the Sihayo, Sambung, Hutabargot,
Dolok, Tambang Tinggi, Tambang Ubi and Tambang Hitam prospects; including the estimation of gold
resources on the Sihayo and Sambung jasperoid-hosted gold deposits.
Further exploration across the CoW during the year included sampling at the Hutabargot Julu and Tambang
Ubi prospects. The Company is in the process of obtaining a forestry permit for the South Block which would
enable drilling program at Tambang Ubi to proceed.
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REVIEW OF OPERATIONS
Other Projects
India – Diamond Exploration (9-10%)
No progress was made during the year in resolving the legal status of the tenements.
Mount Keith Gold Project – Western Australia (2% net smelter royalty)
No mining was undertaken on the project during the year.
Mulgabbie Gold Project – Western Australia (2% net smelter royalty)
No mining was undertaken on the project during the year.
Competent Persons Statements
Mineral Resources estimate
The information in this report which relates to Mineral Resources is based on, and fairly represents, information and supporting
documentation compiled by Mr Robert Spiers (BSc Hons.) for Spiers Geological Consultants Pty Ltd (SGC). Mr Spiers is the principal
Consultant and Director of SGC.
Mr Spiers is a member of the Australian Institute of Geoscientists (AIG ID: 3027) and has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Mr Spiers consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Mr Spiers holds 3,337,816 shares in the Company. These were purchased in accordance with SIH’s Securities Trading Policy (ASX
Guidance Note 27 Trading Policies). The aforementioned shareholding does not constitute a material holding in the Company.
Ore Reserves
The information in this Statement that relates to the Sihayo Starter Project Ore Reserve estimate is based on information compiled and
reviewed by Mr Graham Brock, Mr Brett Stevenson, and Mr Mark Flanagan, Competent Persons as defined in the JORC Code 2012.
Mr Brock is a contract employee of the Company and is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Brock is the
Competent Person responsible for the metallurgical modifying factors of the Ore Reserve estimate.
Mr Stevenson is a full-time employee of Knight Piésold Pty Ltd and is a Member of The Australasian Institute of Mining and Metallurgy.
Mr Stevenson is the Competent Person responsible for the tailings modifying factors (deposition and storage facility design) of the Ore
Reserve estimate.
Note
All statements in this report, other than statements of historical facts that address future timings, activities, events and developments
that the Company expects, are forward-looking statements. Although Sihayo Gold Limited, its subsidiaries, officers and consultants
believe the expectations expressed in such forward-looking statements are based on reasonable expectations, investors are cautioned
that such statements are not guarantees of future performance and actual results or developments may differ materially from those in
the forward-looking statements. Factors that could cause actual results to differ materially from forward-looking statements include,
amongst other things commodity prices, continued availability of capital and financing, timing and receipt of environmental and other
regulatory approvals, and general economic, market or business conditions.
8 | P a g e
DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity consisting of Sihayo Gold Limited ("Sihayo Gold",
or the “Company") and the entities it controlled at the end of, or during the year ended 30 June 2023 ("the
reporting period").
DIRECTORS
The following persons were Directors of Sihayo Gold during the financial year and up to the date of this
report:
Colin F Moorhead - Executive Chairman
Misha Collins – Non-Executive Director
Gavin Caudle - Non-Executive Director
Daryl Corp - Non-Executive Director
PRINCIPAL ACTIVITIES
The principal activities of the consolidated entity during the course of the financial year were the continuing
advancing and evaluation of the Sihayo Starter Project and ongoing exploration across the CoW, with a
particular focus on the Hutabargot Julu prospect. There were no significant changes in the nature of those
activities during the financial year.
DIVIDENDS
No dividends have been paid or declared since the end of the previous financial year and no dividend is
recommended in respect of this financial year.
REVIEW OF OPERATIONS
The review of operations is detailed at pages 5-8.
OPERATING RESULTS
During the financial year the consolidated entity incurred a consolidated operating loss after income tax of
$9,275,739 (2022: $41,605,819).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the consolidated entity for the 2023 financial
year.
SIGNIFICANT EVENTS AFTER BALANCE SHEET DATE
There have been no significant events after 2023 financial year.
EMPLOYEES
The consolidated entity employed 29 employees as at 30 June 2023 (2022: 29 employees).
CORPORATE STRUCTURE
The Corporate Group consists of the parent entity Sihayo Gold Limited, its 100% owned subsidiaries Excelsior
Resources Pty Ltd, Oropa Indian Resources Pty Ltd, and Aberfoyle Pungkut Investments Pte Ltd.
Aberfoyle Pungkut Investments Pte Ltd holds a 75% interest in PT Sorikmas Mining, with an Indonesian
Government mining company PT Aneka Tambang Tbk holding the remaining 25% interest.
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DIRECTORS’ REPORT
LIKELY FUTURE DEVELOPMENTS
Details of important developments occurring in this current financial year have been covered in the review of
operations.
Further information on likely developments in the operations of the consolidated entity and the expected
results have not been included in this report because the Directors believe it would be likely to result in
unreasonable prejudice to the consolidated entity.
FINANCIAL POSITION
The net assets of the consolidated entity as at 30 June 2023 are $20,118,501 (2022: $15,203,811).
ENVIRONMENTAL REGULATION
The consolidated entity has assessed whether there are any particular or significant environmental regulations
which apply. It has determined that the risk of non-compliance is low and has not identified any compliance
breaches during the year.
INFORMATION ON DIRECTORS
Details of the Directors of the Company in office at the date of this report are:
Colin F Moorhead (appointed on 1 July 2020)
(Executive Chairman)
Experience and expertise
Mr Moorhead is an experienced industry executive with a demonstrated track record of, over three decades,
building value in mining companies through innovation, discovery, project development and safe, efficient
operations. A geologist by training, Mr Moorhead is known for strong leadership, strategy and execution that
saw him rise through the ranks from a graduate with BHP in 1987 to an executive level manager responsible
for global exploration and resource development at Newcrest Mining (ASX:NCM) from 2008 to 2015, a period
of significant growth for the company.
Mr Moorhead became the CEO of emerging Indonesian listed producer PT Merdeka Copper Gold (IDX:MDKA)
in January 2016, where he built and led the team that constructed and commissioned the highly successful
Tujuh Bukit Gold Mine. Merdeka has subsequently gone on to refinance at a corporate level, taken over
Finders Resources Limited and built a strong growth portfolio.
At an Industry level Mr Moorhead was elected to the Board of The Australasian Institute of Mining and
Metallurgy (AusIMM) in 2014 and was elected as AusIMM President 2017 and 2018.
Mr Moorhead is also a Graduate of Harvard Business School Advanced Management Program and is currently
Executive Chairman of Xanadu Mines (ASX:XAM) and a Non-Executive Director of explorer Coda Minerals
(ASX:COD), Aeris Resources (ASX:AIS) and Ramelius Resources (ASX:RMS).
Directorships of Other ASX Listed Companies
Xanadu Mines (ASX: XAM)
Coda Minerals Ltd (ASX: COD)
Aeris Resources Ltd (ASX: AIS)
Ramelius Resources (ASX: RMS)
10 | P a g e
DIRECTORS’ REPORT
Information on Directors (continued)
Former ASX Listed Companies Directorships in last 3 years
No former Directorships
Interests in shares and options
7,200,000 ordinary shares (held directly)
70,000,000 unlisted share options
Misha A Collins BEng (Hons), GCertFin, GradDipFin, MAusIMM, MAICD, CFA
(Independent Non-Executive Director)
Experience and expertise
Mr Collins has over 25 years of experience as a financial analyst, company director and mining executive. He
has most recently been CEO of Cassidy Gold Corporation and acted as adviser to several significant debt and
equity transactions in the gold mining industry. He has been a director of Sihayo Gold since 2008.
Mr Collins holds a Bachelor of Engineering in Metallurgy, graduating with First Class Honours from the RMIT
University, a Graduate Certificate in Banking and Finance from Monash University and a Graduate Diploma in
Applied Finance and Investment from the Financial Services Institute of Australia. He also completed the CFA
program with the US based CFA Institute and has been awarded the Chartered Financial Analyst designation
(CFA).
Mr Collins is also a Member of the Australian Institute of Mining and Metallurgy and the Australian Institute
of Company Directors.
Directorships of Other ASX Listed Companies
None
Former ASX Listed Companies Directorships in last 3 years
Non-Executive Director of Rimfire Pacific Mining
Special responsibilities
Audit Committee Chairman
Interests in shares and options
6,823,547 ordinary shares (held directly)
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DIRECTORS’ REPORT
Information on Directors (continued)
Gavin Caudle
(Non-Executive Director)
Experience and expertise
Mr Caudle has over 25 years’ experience in the finance and investment sectors in Australia, Singapore and
Indonesia. Starting his career at Arthur Andersen Australia, he eventually became a partner based in the
Jakarta office. He joined Citigroup in 1998 in Indonesia and held positions as Head of Mergers and Acquisition
and Head of Private Equity at Citigroup and Country Head of the Investment Bank at Salomon Smith Barney.
Since 2003, together with his partners, Gavin has developed numerous successful businesses including Tower
Bersama Group (a listed telecommunications infrastructure business), Merdeka Copper and Gold (an
Indonesian listed mining Company) and Provident Agro (a listed plantation business) with aggregate assets
valued at more than USD4 billion today.
Gavin and his partners bring substantial expertise in dealing with all business aspects in Indonesia, most
importantly for Sihayo being:
• Track record of raising more than US$3 billion of senior, mezzanine and equity capital over the past
10 years; and
• Expertise in dealing with forestry issues through the ownership of a substantial plantation business.
• Expertise in dealing with mining related issues through the ownership of substantial shareholdings in
Sumatra Copper and Gold Limited, Finders Resources Limited and PT Merdeka Copper Gold Tbk.
Directorships of Other ASX Listed Companies
None
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Special responsibilities
Audit Committee member
Interests in shares and options
386,561,302 ordinary shares (held directly)
3,790,875,682 ordinary shares (held indirectly)
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DIRECTORS’ REPORT
Information on Directors (continued)
Daryl Corp
(Non-Executive Director)
Experience and expertise
Mr Corp is a senior mining executive with over 40 years’ experience in the minerals industry in a wide range
of both corporate and operational roles. This has involved base metals, iron ore and precious metals projects
and operations, both in Australia and offshore. Mr Corp commenced his career as a graduate mining engineer
in Broken Hill before joining Newcrest Mining Limited, progressing from technical roles to more senior roles
where he developed broader corporate skills. Mr Corp held a range of positions at Newcrest including
Transformation Executive – Business Development, General Manager – Executive Committee Co-ordination
and Projects, Head of Ore Reserves Governance, General Manager – Corporate Affairs, and Manager –
Business Development.
Mr Corp managed feasibility studies for several underground gold mine developments as well as initial studies
for both the Cadia Hill and Ridgeway mines. Mr Corp was responsible for delivering permits required for
development of the Gosowong Gold Mine in Indonesia, remaining with the project as Project Manager –
Mining during the construction and early operations at Gosowong.
Mr Corp holds a Bachelor of Engineering in Mining from the University of Melbourne and a Diploma in
Geoscience from Macquarie University. Mr Corp is a Fellow of The Australasian Institute of Mining and
Metallurgy.
Directorships of Other ASX Listed Companies
Kingsrose Mining Ltd (ASX: KRM)
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Special responsibilities
Audit Committee member
Interests in shares and options
10,000,000 ordinary shares (held directly)
Roderick Crowther (appointed on 7 September 2020)
(Chief Financial Officer)
Experience and expertise
Mr Crowther has significant corporate finance experience in the mining sector through a variety of roles in
investment banking, private equity and corporate business development. His most recent role was at Newcrest
Mining in the Business Development team where he executed a number of acquisitions and divestments,
including the sale of Newcrest’s 75% interest in the Gosowong mine in Indonesia. Prior to this, he held roles
at EMR Capital, Azure Capital and J.P. Morgan where he advised on a number of debt and equity raisings and
mergers and acquisitions for mining companies.
He holds a Bachelor of Engineering (Honours) and a Bachelor of Commerce (Honours) from the University of
Queensland as well as a Masters of Mining Engineering from the University of New South Wales. He is also a
CFA Charterholder.
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DIRECTORS’ REPORT
Directorships of Other ASX Listed Companies
None
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Interests in shares and options
434,782 ordinary shares (held indirectly)
34,000,000 share options
Susan Park (appointed on 1 July 2021)
(Company Secretary)
Experience and expertise
Ms Park has over 25 years’ experience in the corporate finance industry and extensive experience in company
secretarial and non-executive director roles with ASX, AIM and TSX listed companies. She holds a Bachelor of
Commerce, is a Member of the Australian Institute of Chartered Accountants, a Fellow of the Financial Services
Institute of Australasia, a Fellow of the Governance Institute of Australia and a Graduate Member of the
Australian Institute of Company Directors. She is currently Company Secretary of several ASX listed companies.
Directorships of Other ASX Listed Companies
None
Former ASX Listed Companies Directorships in last 3 years
No former directorships
Interests in shares and options
None
MEETINGS OF DIRECTORS
The following tables set out the number of meetings of the Company's Directors held during the year ended
30 June 2023, and the number of meetings attended by each director. (Note that meeting attendance may
have been completed via telephone conferencing).
Directors’ meeting:
C Moorhead
M Collins
Gavin Caudle
D Corp
Audit Committee meeting:
M Collins
Gavin Caudle
D Corp
Number eligible
to attend
10
10
10
10
Number eligible
to attend
4
4
4
Number
Attended
10
10
7
10
Number
Attended
4
3
4
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DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The full Board of Sihayo Gold act as as the Remuneration Committee at the date of this report.
The responsibilities and functions of the Remuneration Committee are as follows:
1) review the competitiveness of the Company’s executive compensation programs to ensure:
(a)
(b)
(c)
the attraction and retention of corporate officers;
the motivation of corporate officers to achieve the Company’s business objectives; and
the alignment of the interests of key leadership with the long-term interests of the Company’s
shareholders.
2) review trends in management compensation, oversee the developemnt of new compensation plans
and, when necessary, approve the revision of existing plans;
3) review the performance of executive management;
4) review and approve Executive Chairperson and Chief Financial Officer goals and objectives, evaluate
Executive Chairperson and Chief Financial Officer performance in light of these corporate objectives,
and set Executive Chairperson and Chief Financial Officer compensation levels consistent with
Company philosophy. The committee will recommend appropriate salary, bonus and other
compensation for all senior executives to the Board for approval;
5) review and approve compensation packages for new corporate officers and termination packages for
corporate officers as requested by management;
6) review and approve the awards made under any executive officer bonus plan, and provide an
appropriate report to the Board;
7) review and make recommendations concerning long-term incentive compensation plans, including
the use of share options and other equity-based plans. Except as otherwise delegated by the Board,
the committee will act on behalf of the Board as the “Committee” established to administer equity-
based and employee benefit plans, and as such will discharge any responsibilities imposed on the
committee under those plans, including making and authorising grants, in accordance with the terms
of those plans; and
8) review periodic reports from management on matters relating to the Company’s personnel
appointments and practices.
Principles used to determine the nature and amount of remuneration
• Non-Executive Directors receive fees in cash. The fees are fixed and approved by shareholders.
• Where Non-Executive Directors provide services in their area of expertise, they receive payment at
normal commercial rates.
• There are no Executives (other than Directors) with authority for strategic decision making and
management.
• The remuneration of the Directors is not linked directly to the performance of the Company.
15 | P a g e
DIRECTORS’ REPORT
Remuneration Report (Audited) (continued)
Engagement of remuneration consultants
During the financial year, the Company did not engage any remuneration consultants.
Details of remuneration
Details of the remuneration of Key Management Personnel of Sihayo Gold Limited, including their personally
related entities are set out below for the year ended 30 June 2023. There have been no changes to the below
named Key Management Personnel since the end of the reporting period unless noted:
2023
Name
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Short-term
Post-Employment
Long Term
Cash
Salary &
Fees
250,000
45,000
45,000
265,000
54,795
659,795
Non-
Monetary
Benefits
22,934
4,128
4,128
24,310
5,026
60,526
Super-
annuation
Retirement
Benefits
Incentive
Plans
LSL
26,250
27,825
5,753
59,828
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity
Share
based
payment
-
-
-
-
-
-
Total
$
299,184
49,128
49,128
317,135
65,574
780,149
Total
remuneration
represented
by options
-
-
-
-
-
-
(a) $250,000 in Directors fees was paid to C Moorhead at 30 June 2023.
(b) $45,000 in Directors fees was paid to M Collins as at 30 June 2023.
(c) $596,250 in Directors fees was payable as at 30 June 2022 to G Caudle for fees for the year ended 30 June
2022 and in lieu of previous years Directors fees. For the year ended 30 June 2023 his directors were
$45,000.
(d) $265,000 in salaries was paid to R I Crowther at 30 June 2023.
(e) $54,795 in Directors fees was paid to D Corp at 30 June 2023.
(f) $60,526 non monetary benefit is related to Director and Officers Liability Insurance.
Others transactions with Directors and Key Management Personnel not included in the above remuneration
table:
(g) During the year, the Company’s Executive Chairman, Colin F Moorhead, has an associated entity Colin
Moorhead & Associates, that provided the below services to the Company:
- Rental office space, administration and office support with total amount of $18,139
- Consultation for an environmental, social and governance with total amount of $12,567
(h) There were no loans made to Key Management Personnel during the year ended 30 June 2023.
16 | P a g e
DIRECTORS’ REPORT
Remuneration Report (Audited) (continued)
Details of remuneration (continued)
2022
Name
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Short-term
Post-Employment
Long Term
Cash
Salary &
Fees
250,000
45,000
45,000
265,000
54,400
659,400
Non-
Monetary
Benefits
21,641
4,008
3,975
23,408
4,759
57,791
Super-
annuation
Retirement
Benefits
Incentive
Plans
LSL
25,000
-
-
26,500
5,440
56,940
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Equity
Share
based
payment
(101,487)
-
-
(69,991)
-
(171,478)
Total
$
195,154
49,008
48,975
244,917
64,599
602,653
Total
remuneration
represented
by options
-
-
-
-
-
-
(a) $250,000 in Directors fees was paid to C Moorhead at 30 June 2022.
(b) $45,000 in Directors fees was paid to M Collins as at 30 June 2022.
(c) $551,250 in Directors fees was payable as at 30 June 2022 to G Caudle for fees for the year ended 30 June
2022 and in lieu of previous years Directors fees. For the year ended 30 June 2022, his director fees were
$45,000.
(d) $265,000 in salaries was paid to R I Crowther at 30 June 2022.
(e) $54,400 in Directors fees was paid to D Corp at 30 June 2022.
(f) $57,791 non monetary benefit is related to Director and Officers Liability Insurance.
(g) $171,478 of share based expense reversed as vesting condition not achievable.
Others transactions with Directors and Key Management Personnel not included in the above remuneration
table:
(h) During the year, the Company’s Executive Chairman, Colin F Moorhead, has an associated entity Colin
Moorhead & Associates, that provided the below services to the Company:
- Rental office space, administration and office support with total amount of $64,332
- Consultation for an environmental, social and governance with total amount of $183,109
(i) There were no loans made to Key Management Personnel during the year ended 30 June 2022.
Remuneration Report (Audited) (continued)
Option holdings of Key Management Personnel
Details of vesting profiles of the options granted as remuneration to each Key Management Personnel of the
Group are detailed below:
30 June 2023
Number of
options granted
Grant date
of options
C Moorhead
M Collins
G Caudle
D Corp
R I Crowther
20,000,000
50,000,000
-
-
-
14,000,000
20,000,000
30/11/2020
30/11/2020
-
-
-
30/11/2020
30/11/2020
Exercise price
of options
$
$0.03624
$0.03624
-
-
-
$0.03624
$0.03624
Fair value of options
on grant date
$
Expiry date
Vested
$243,059
$607,648
-
-
-
$170,142
$243,549
09/12/2026
09/12/2026
-
-
-
09/12/2026
09/12/2026
-
-
-
-
-
-
-
17 | P a g e
DIRECTORS’ REPORT
Options granted as part of remuneration
The following table summarises the value of options granted, exercised or lapsed for the year ended
30 June 2023.
30 June 2022
Value of options granted
during the year
Value of options exercised
during the year
Value of options lapsed
during the year
% Remuneration
consisting of options
granted for the year
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
There were no alterations to the terms and conditions of options granted as remuneration since their grant.
Options issued to employees vest on the basis that continual employment with the Company is achieved. All
employees leaving while options are yet to vest will forfeit their options. Director options vest on date of issue.
For details on the valuation of the options, including models and assumptions used, please refer to Note 14.
Shareholdings of Key Management Personnel
The number of shares held in the Company during the financial year by each Key Management Personnel of
Sihayo Gold Limited, including their personally related entities, are set out below:
Balance
1 July 2022
Granted as
remuneration
On exercise of
options
Net change
other
Balances as at
date of
resignation/
termination
Balance
30 June 2023
Ord
Pref
Ord
Pref
Ord
Pref
Ord
Ord
Pref
Ord
Pref
3,600,000
6,823,547
2,080,680,589
434,782
-
2,091,538,918
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,600,000
-
-
-
- 2,096,756,395
-
-
10,000,000
-
- 2,110,356,395
-
-
-
-
-
-
7,200,000
-
6,823,547
-
- 4,177,436,984
434,782
-
10,000,000
-
- 4,201,895,313
Balance
1 July 2021
Granted as
remuneration
On exercise of
options
Net change
other
Balances as at
date of
resignation/
termination
Balance
30 June 2022
Ord
Pref
Ord
Pref
Ord
Pref
Ord
Ord
Pref
Ord
Pref
2,000,000
6,823,547
963,534,378
434,782
-
972,792,707
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,600,000
-
-
-
- 1,117,146,211
-
-
-
-
- 1,118,746,211
-
-
-
-
-
-
3,600,000
-
-
6,823,547
- 2,080,680,589
434,782
-
-
-
- 2,091,538,918
30 June
2023
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Total
30 June
2022
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Total
18 | P a g e
DIRECTORS’ REPORT
Shares under Option
30 June 2023
Terms and conditions for each grant
Key Management
Personnel
Number
vested
Number granted as
remuneration
Grant date
Fair value per option
at grant date ($)
Exercise per
option ($)
Expiry date
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Total
-
-
-
-
-
-
-
-
70,000,000 30/11/2020
-
-
34,000,000 30/11/2020
-
-
104,000,000
$0.0122
-
-
$0.0122
-
$0.03624 09/12/2026
-
-
$0.03624 09/12/2026
-
-
-
30 June 2022
Terms and conditions for each grant
Key Management
Personnel
Number
vested
Number granted as
remuneration
Grant date
Fair value per option
at grant date ($)
Exercise per
option ($)
Expiry date
First
exercise
date
-
-
-
-
-
Last
exercise
date
-
-
-
-
-
First
exercise
date
Last
exercise
date
C Moorhead
M Collins
G Caudle
R I Crowther
D Corp
Total
-
-
-
-
-
-
24,500,000
70,000,000
-
-
17,000,000
34,000,000
-
145,500,000
30/11/2020
-
-
30/11/2020
-
$0.0070
$0.0122
-
-
$0.0070
$0.0122
-
$0.02907 09/12/2022
$0.03624 09/12/2026
-
-
$0.02907 09/12/2022
$0.03624 09/12/2026
-
-
-
-
-
-
-
-
-
-
-
-
-
DIRECTORS AND KEY MANAGEMENT PERSONNEL AGREEMENTS
Whilst no formal agreements have been entered into between the Company and some of its Directors, annual
Director remuneration, as disclosed below, has been Board approved. Colin F Moorhead has an Employee
Services Agreement in place with the Company and Daryl Corp has an agreement to act as a Non-Executive
Director with the Company.
Name
Misha Collins
Gavin Caudle
Colin F Moorhead (appointed on 1
July 2020)*
Daryl Corp (appointed on 1 June
2021)*
Roderick Crowther (appointed on 7
September 2020)*
Remuneration Per Annum ($) plus Allowance
45,000
45,000
250,000
60,000
265,000
*The formal agreement commenced on the appointment date and will continue until the agreement is validly
terminated in accordance with its terms. There are no termination payments for Directors and Key
Management Personnel.
19 | P a g e
DIRECTORS’ REPORT
END OF REMUNERATION REPORT
Directors and Officers Insurance
During the year $60,526 was paid for Directors and officeholders’ insurance, covering all Directors and
officeholders.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings
that may be brought against the officers in their capacity as officers of entities in the consolidated entity.
KEY RISK AREAS
The following is a summary of the key business risks to Sihayo Gold Limited and its subsidiaries.
Risk
Description
Additional requirements for capital
Commodity price volatility and
exchange rate risks
Permits
Market conditions
The Company’s capital requirements depend on numerous
factors. Depending on the Company’s ability to generate income
from its operations, the Company may require further financing in
addition to existing cash on hand. If the Company is unable to
obtain additional financing as needed, it may be required to
reduce the scope of its operations.
If the Company achieves success leading to mineral production,
the revenue it will derive through the sale of commodities
exposes the potential income of the Company to commodity price
and exchange rate risks. Commodity prices fluctuate and are
affected by many factors beyond the control of the Company
(including exchange rate fluctuations).
The Company’s proposed operations are subject to receiving and
maintaining licences and permits (including forestry permits)
from appropriate governmental authorities.
is no
assurance that delays will not occur in connection with obtaining
all necessary renewals of licences/permits or additional permits.
There
Share market conditions may affect the value of the Company’s
quoted securities regardless of the Company’s operating
performance.
20 | P a g e
DIRECTORS’ REPORT
Climate Risk
Operational Risks
There are a number of climate-related factors that may affect the
operations and proposed activities of the Company. The climate
change risks particularly attributable to the Company include:
(a)
the emergence of new or expanded regulations
associated with the transitioning to a lower-carbon
economy and market changes related to climate change
mitigation. The Company may be impacted by changes
to local or international compliance regulations related
to climate change mitigation efforts, or by specific
taxation or penalties
for carbon emissions or
environmental damage. These examples sit amongst an
array of possible restraints on industry that may further
impact the Company and its profitability. While the
Company will endeavour to manage these risks and limit
any consequential impacts, there can be no guarantee
that the Company will not be impacted by these
occurrences; and
climate change may cause certain physical and
environmental risks that cannot be predicted by the
Company, including events such as increased severity of
weather patterns and incidence of extreme weather
events and longer-term physical risks such as shifting
climate patterns. All these risks associated with climate
change may significantly change the industry in which
the Company operates.
(b)
The operations of the Company may be affected by various
factors, including failure to locate or identify mineral deposits,
failure to achieve predicted grades in exploration and mining,
operational and technical difficulties encountered in mining,
insufficient or unreliable infrastructure such as power, water and
transport, difficulties in commissioning and operating plant and
equipment, mechanical failure or plant breakdown, unanticipated
metallurgical problems which may affect extraction costs,
adverse weather conditions,
industrial and environmental
incidents, industrial disputes and unexpected shortages or
increases in the costs of consumables, spare parts, plant and
equipment.
In the event that any of these potential risks eventuate, the
Company’s operational and financial performance may be
adversely affected. No assurances can be given that the Company
the successful
will achieve commercial viability through
exploration and/or mining of its tenement interests. Until the
Company is able to realise value from its projects, it is likely to
incur ongoing operating losses.
21 | P a g e
DIRECTORS’ REPORT
Exploration
and
industrial
difficulties,
title process,
technical
incidents, native
The mineral tenements 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 of these tenements,
or any other tenements 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
changing
environmental
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 tenements and obtaining all required
approvals for its activities. In the event that exploration programs
prove to be unsuccessful this could lead to a diminution in the
value of the tenements, a reduction in the cash reserves of the
Company and possible relinquishment of the tenements.
The exploration costs of the Company are based on certain
assumptions with respect to the method and timing of
exploration. By their nature, these estimates and assumptions are
subject to significant uncertainties and, accordingly, the actual
costs may materially differ from these estimates and assumptions.
Accordingly, no assurance can be given that the cost estimates
and the underlying assumptions will be realised in practice, which
may materially and adversely affect the Company’s viability.
22 | P a g e
DIRECTORS’ REPORT
Feasibility Study
Resource Estimates
further work,
The Company completed and published a Feasibility Study Update
in February 2022 and an addendum in May 2023. There is no
assurance that the cost estimates and underlying assumptions in
the Feasibility Study will be realised in practice, which may
materially and adversely affect the Company’s viability.
In the event the cost estimates and the underlying assumptions
are unachievable in practice, the Company may be required to
complete
including, amongst other things,
attempting to increase the amount of gold in the known resource
by expanding the boundaries of the ore body as currently defined,
investigate additional opportunities to improve metallurgical
recoveries and investigate ways to reduce upfront capital costs
and project critical path lead times. This would require the
Company to expend significantly more funds than would be
available to the Company. There is no guarantee this extra work
would produce a financially viable project, which would materially
affect the viability of the Company.
Resource estimates are expressions of judgment based on
knowledge, experience and industry practice. Estimates, which
were valid when made, may change significantly when new
information becomes available. In addition, resource estimates
are imprecise and depend to some extent on interpretations,
which may prove to be inaccurate. Should the Company
encounter mineralisation or formations different from those
predicted by past sampling and drilling, resource estimates may
have to be adjusted and mining plans may have to be altered in a
way which could have either a positive or negative effect on the
Company’s operations.
\
23 | P a g e
DIRECTORS’ REPORT
Sovereign Risk
Reliance on key personnel
The Company’s Sihayo Starter Project is located in Indonesia. As
such its operations are subject to regulation by the Indonesian
Central Government and local government bodies in relation to
mining operations, environment, community relations and
manpower.
Possible sovereign risks associated with operating in Indonesia
include, without limitation, changes in the terms of mining
legislation, changes to royalty arrangements, changes to taxation
rates and concessions and changes in the ability to enforce legal
rights. Any of these factors may, in the future, adversely affect
the financial performance of the Company and the market price
of its shares.
No assurance can be given regarding future stability in Indonesia
or any other country in which the Company may, in the future,
have an interest.
The responsibility of overseeing the day-to-day operations and
the strategic management of the Company depends substantially
on its senior management and its key personnel. There can be no
assurance given that there will be no detrimental impact on the
Company if one or more of these employees cease their
employment.
24 | P a g e
DIRECTORS’ REPORT
WORKING CAPITAL LOAN
As at 30 June 2023 outstanding working capital loans of $4,434,155.
PROCEEDINGS ON BEHALF OF COMPANY
No person entitled to exercise any of the options has any right, by virtue of the options, to participate in any
share issue of any other body corporate.
The names of all persons who currently hold options, granted at any time, are entered in the register kept by
the Company pursuant to Section 216C of the Corporations Act 2001 and the register may be inspected free
of charge.
No person has applied for leave to the Court under section 237 of the Corporations Act 2001 to bring
proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for
the purpose of taking responsibility on behalf of the Company for all or part of these proceedings.
The Company was not party to any such proceedings during the year.
CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement is located at the Company’s Website:
https://www.sihayogold.com/site/about/corporate-governance
NON-AUDIT SERVICES
There were no non-audit services fees during the financial year.
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001
is set out on page 26.
Signed in accordance with a resolution of the Board of Directors.
Colin F Moorhead
Executive Chairman
28 September 2023
25 | P a g e
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
28 September 2023
The Directors
Sihayo Gold Limited
Suite 1, 245 Bay Street
Brighton VIC 3186
Dear Sirs
RE: SIHAYO GOLD 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 Sihayo Gold Limited.
As Audit Director for the audit of the financial statements of Sihayo Gold 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)
and
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully,
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Notes
3
24
5,7(a)
14
3(a)
Other revenue
Total revenue
Provision trade and other receivables
Employee benefit expenses
External consultancy expenses
Permits and licenses
Finance costs
Foreign exchange loss
Insurance expense
Travel expenses
Depreciation and amortisation
Corporate secretarial expenses
Tax expenses
Rental expense
Impairment exploration and evaluation
asset
Deregistration of subsidiaries
Share based payments
Other expenses
Loss before income tax
Income tax
Net loss
Other comprehensive income
Items that may be reclassified to profit or
loss:
Movement in foreign currency translation
reserve
Items that cannot be reclassified to profit
or loss:
Movement in actuarial (loss)/income on
defined pension benefit scheme
Other comprehensive income for the year,
net of tax
Total comprehensive loss for the year
Loss after income tax attributable to:
Members of Sihayo Gold Limited
Non-controlling interest
Comprehensive loss after income tax
attributable to:
Members of Sihayo Gold Limited
Non-controlling interest
Basic loss per share in cents
23
Consolidated
2023
$
2022
$
18,017
18,017
(5,464,520)
(1,589,324)
(692,799)
(569,655)
(383,233)
(161,277)
(60,526)
(44,567)
(31,074)
(31,434)
(9,531)
(6,254)
-
-
-
(249,562)
(9,275,739)
-
(9,275,739)
9,859
9,859
-
(1,369,722)
(1,013,757)
(536,763)
(129,431)
(421,090)
(57,791)
(36,170)
(16,704)
(86,832)
(17,833)
(4,385)
(37,872,421)
(19,560)
171,478
(204,697)
(41,605,819)
-
(41,605,819)
2,082,430
4,551,835
(28,543)
2,053,887
(7,221,852)
(8,936,275)
(339,464)
(9,275,739)
(5,963,350)
(1,258,502)
(7,221,852)
(0.15)
34,539
4,586,374
(37,019,445)
(41,951,493)
345,674
(41,605,819)
(35,399,100)
(1,620,345)
(37,019,445)
(1.08)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjuction with the accompanying notes.
27 | P a g e
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Notes
2023
$
Consolidated
2022
$
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Deposits
Capitalised exploration and evaluation
expenditure
Property, plant and equipment
Right-of-use asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provision for mining rehabilitation
Lease liability – current
Borrowings
Other liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Lease liability – non-current
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Parent entity interest:
Contributed equity
Reserves
Accumulated losses
Total parent entity interest
Non-controlling interest in controlled
entities
TOTAL EQUITY
22
4
4
27
6
5
7(a)
8
10
7(b)
11
9
7(b)
12
13(a)
13(b)
21(b)
8,396,786
79,803
8,476,589
-
2,962,553
17,303,716
4,010,463
112,885
24,389,617
32,866,206
3,114,091
4,148,483
-
4,434,155
57,225
11,753,954
897,103
96,648
993,751
12,747,705
20,118,501
170,791,312
22,787,389
(148,986,126)
44,592,575
(24,474,074)
20,118,501
The above Consolidated Statement of Financial Position should be read in conjuction with the accompanying notes.
2,441,467
445,952
2,887,419
4,949,860
446,580
5,528,100
3,903,900
7,444
14,835,884
17,723,303
1,515,467
191,637
3,531
-
57,225
1,767,860
746,701
4,931
751,632
2,519,492
15,203,811
158,654,770
19,814,464
(140,049,851)
38,419,383
(23,215,572)
15,203,811
28 | P a g e
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Options
& other
reserve
$
Foreign
currency
translation
reserve
$
Share
capital
$
Accumulated
losses
$
Non-
controlling
interest
$
Total
$
Balance at 1.07.21
149,083,183
2,680,298
10,753,251
(98,098,358)
(21,595,227)
42,823,147
Loss for the year
Movement in
foreign currency
translation reserve
Movement in
actuarial loss on
defined pension
benefit scheme
Total
comprehensive
loss for the year
Issue of shares
-
-
-
-
-
-
(41,951,493)
345,674
(41,605,819)
-
6,526,489
-
(1,974,654)
4,551,835
168,439
(142,535)
-
8,635
34,539
168,439
6,383,954
(41,951,493)
(1,620,345)
(37,019,445)
(net of transaction
costs)
9,571,587
Share based
payments
-
(171,478)
-
-
-
-
-
-
9,571,587
(171,478)
Balance at 30.06.22
158,654,770
2,677,259
17,137,205
(140,049,851)
(23,215,572)
15,203,811
Balance at 1.07.22
158,654,770
2,677,259
17,137,205
(140,049,851)
(23,215,572)
15,203,811
Loss for the year
Movement in
foreign currency
translation reserve
Movement in
actuarial income
on defined pension
benefit scheme
Total
comprehensive
loss for the year
Issue of shares
(net of transaction
costs)
-
-
-
-
-
-
(8,936,275)
(339,464)
(9,275,739)
-
2,994,332
(155,931)
134,524
-
-
(911,902)
2,082,430
(7,136)
(28,543)
(155,931)
3,128,856
(8,936,275)
(1,258,502)
(7,221,852)
12,136,542
-
-
-
-
12,136,542
Balance at 30.06.23
170,791,312
2,521,328
20,266,061
(148,986,126)
(24,474,074)
20,118,501
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
29 | P a g e
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
Payments to suppliers & employees
NET CASH FLOWS USED IN OPERATING
ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for addition of mineral exploration
and evaluation expenditure
Deposit paid
Payments for addition of property, plant &
equipment
NET CASH FLOWS USED IN INVESTING
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issuance
Shares issuance cost
Payment of borrowings
Proceeds from borrowings
Payment of lease liability
NET CASH FLOWS RECEIVED FROM FINANCING
ACTIVITIES
Net increase/(decrease) in cash and cash
equivalents held
Cash and cash equivalents at the beginning of
the financial year
Cash and cash equivalents at the end of the
Notes
3
Consolidated
2023
$
2022
$
18,017
(1,300,292)
9,859
(5,581,165)
22(b)
(1,282,275)
(5,571,306)
6
27
5
22(d)
22(c)
7(b)
(6,780,117)
(2,515,973)
(8,879,420)
-
(6,057)
(1,017,984)
(9,302,147)
(9,897,404)
8,429,456
(67,714)
-
8,208,955
(30,956)
6,085,814
(95,080)
(710,488)
4,300,204
(4,087)
16,539,741
9,576,363
5,955,319
(5,892,347)
2,441,467
8,333,814
financial year
22
8,396,786
2,441,467
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
30 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements are general purpose financial statements that have been prepared in accordance
with Accounting Standards of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial statements cover Sihayo Gold Limited and its controlled entities and has authorised for issue in
accordance with a resolution of the Directors on 28 September 2023. Sihayo Gold Limited is a listed public
company, incorporated and domiciled in Australia.
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of preparation
Statement of compliance
The financial report is a general-purpose financial report which has been prepared in accordance with
Australian Accounting Standards (AASB) and the Corporations Act 2001. The consolidated financial report of
the Group also complies with International Financial Reporting Standards (IFRS) and interpretations adopted
by the International Accounting Standards Board.
New standards and amended accounting standards and interpretation current year
Several new standards, amendments to standards and interpretations have recently been issued that were
effective for the year ended 30 June 2023. Details of these are provided below:
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.
31 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
New and amended accounting policies not yet adopted by the group
- 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 Group 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 Group 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 Group 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 Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact
of the initial application is not yet known.
32 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
New and amended accounting policies not yet adopted by the group (continued)
- 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 Group 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 Group 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.
The standards listed above did not have any impact on the amounts recognised in prior periods and are not
expected to significantly affect the current or future periods.
a) Going concern
The financial statements have been prepared on a going concern basis which the Directors believe to be
appropriate. The Directors are confident that the Group will be able to maintain sufficient levels of working
capital to continue as a going concern and continue to pay its debts as and when they fall due.
For the year ended 30 June 2023, the Group incurred a loss before tax of $9,275,739 (2022: loss of
$41,605,819), cash outflows from operating activities of $1,282,275 (2022: $5,571,306) and has a working
capital deficit of $3,277,365 (2022 surplus: $1,119,559). The Group has cash and cash equivalents of
$8,396,786 (2022: $2,441,467) and current liabilities of $11,753,954 (2022: $1,767,860).
The financial report has been prepared on a going concern basis, which contemplates continuity of normal
business activities and realisation of assets and settlement of liabilities in the ordinary course of business.
33 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
a) Going concern (continued)
The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its
operations and commitments. The Directors continue to be focused on meeting the Group’s business
objectives and is mindful of the funding requirements to meet these objectives. The Directors consider the
basis of going concern to be appropriate for the following reasons:
▪ The current cash of the Group relative to its fixed and discretionary commitments;
▪ The contingent nature of certain of the Group’s project expenditure commitments;
▪ The ability of the Group to terminate certain agreements without any further on-going obligation beyond
what has accrued up to the date of termination;
▪ The underlying prospects for the Group to raise funds from the capital markets; and
▪ The fact that future exploration and evaluation expenditure are generally discretionary in nature
(i.e. At the discretion of the Directors having regard to an assessment of the progress of works undertaken
to date and the prospects for the same). Subject to meeting certain expenditure commitments, further
exploration activities may be slowed or suspended as part of the management of the Group’s working
capital.
The Directors are confident that the Group can continue as a going concern and as such are of the opinion
that the financial report has been appropriately prepared on a going concern basis.
Should the Group be unable to undertake the initiatives disclosed above, there exists material uncertainty
surrounding the Group’s ability to continue as a going concern and, therefore, realise its assets and dispose of
its liabilities in the ordinary course of business and at the amounts stated in the financial report.
The financial statements do not include any adjustments relating to the recoverability and classification of
recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the
Group not continue as a going concern.
b) Principles of consolidation
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by
Sihayo Gold Limited and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent
controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided
in Note 21.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or
losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
34 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b) Principles of consolidation (continued)
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as
“non-controlling interests”. The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on liquidation
at either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of profit or loss and other comprehensive income.
c) Business combinations
The purchase method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired. The cost of a business combination is measured as the fair value of
the assets given, shares issued, or liabilities incurred or assumed at the date of exchange and the amount of
any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-
controlling interest in the acquiree either at fair value or at the proportionate share of the acquiree’s
identifiable net assets. Acquisition-related costs are expensed as incurred.
Where equity instruments are issued in a business combination, the fair value of the instruments is their
published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that
the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and
valuation methods provide a more reliable measure of fair value.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling
interest. The excess of the cost of the business combination over the fair value of the Group’s share of the
identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of
the net assets acquired, the difference is recognised directly in the Statement of Comprehensive Income, but
only after a reassessment of the identification and measurement of the net assets acquired.
If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously
held equity interest in the acquiree is remeasured at fair value as at the acquisition date through profit or loss.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental
borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier
under comparable terms and conditions.
35 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d) Income tax
The charge for current income tax expenses is based on the profit for the year adjusted for any non-assessable
or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the
balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be
available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income tax legislation and the anticipation that the economic entity will
derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions
of deductibility imposed by the law.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised
or liability is settled. Deferred tax is credited in the statement of comprehensive income except where it
relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly
against equity.
e) Property, plant & equipment
Each class of property, plant and equipment, other than land is carried at cost or fair value less, where
applicable, any accumulated depreciation and impairment losses.
Property, plant and equipment
Property, plant and equipment are measured on the cost basis less depreciation and impairment losses. The
carrying amount of plant and equipment is reviewed annually by Directors 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 assets employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Depreciation
The depreciable amount of all Property, Plant and Equipment (other than Leasehold Improvements and
certain plant and equipment which are based on the prime cost method) is based on the diminishing value
method over their useful lives to the Company commencing from the time the assets are held ready for use.
The depreciation rates used for plant and equipment vary between 2.5% and 40%.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
36 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e) Property, plant & equipment (continued)
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying value
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 statement of comprehensive income.
f) Acquistion of assets
The purchase method of accounting is used for all acquisitions of assets regardless of whether shares or other
assets are acquired. Cost is determined as the fair value of the assets given up, shares issued, or liabilities
undertaken at the date of acquisition plus costs incidental to the acquisition. Where shares are issued in an
acquisition, the value of the shares is determined having reference to the fair value of the assets or net assets
acquired, including goodwill or discount on acquisition where applicable.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of the acquisition. The discount rate used is the rate at which
a similar borrowing could be obtained under comparable terms and conditions.
g) Exploration and evaluation expenditure
Exploration, evaluation, and development 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 areas have not yet reached a stage
that permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
h) Financial instruments
AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for
annual periods beginning on or after 1 July 2018, bringing together all three aspects of the accounting for
financial instruments: classification and measurement, impairment, and hedge accounting.
37 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h) Financial instruments (continued)
As a result of adopting AASB 9 Financial Instruments, the Group has amended its financial instruments
accounting policies to align with AASB 9. AASB 9 makes major changes to the previous guidance on the
classification and measurement of financial assets and introduces an ‘expected credit loss’ model for
impairment of financial assets.
There were no financial instruments which the Group designated at fair value through profit or loss under
AASB 139 that were subject to reclassification. The Board assessed the Group’s financial assets and
determined the application of AASB 9 does not result in a change in the classification of the Group’s financial
instruments.
The adoption of AASB 9 does not have a significant impact on the financial report.
Recognition, initial measurement and derecognition
Financial assets and financial liabilities are recognised when the Group 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 transaction 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.
Trade receivables are initially measured at the transaction price if the receivables do not contain a significant
financing component in accordance with AASB 15.
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.
38 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h) Financial instruments (continued)
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 Group’s cash and cash equivalents,
trade and most other receivables fall into this category of financial instruments.
Financial assets at fair value through other comprehensive income (Equity instruments)
The Group 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 Group 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.
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.
39 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h) Financial instruments (continued)
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 Group 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
The Group 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 Group (or Company) applies the simplified
approach permitted by AASB, which requires expected lifetime losses to be recognised from initial recognition
of the receivables.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of
observable market data. If all significant inputs required to measure fair value are observable, the asset or
liability is included in Level 2. If one or more significant inputs are not based on observable market data, the
asset or liability is included in Level 3.
40 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h) Financial instruments (continued)
Fair value hierarchy (continued)
(i)
The Group would change the categorisation within the fair value hierarchy only in the following circumstances
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice
versa.
(ii)
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
i) Impairment of assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired.
If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less
costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying
value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive
income.
j) Interests in joint arrangements
Joint arrangements represent the contractual sharing of control between parties in a business venture where
unanimous decisions about relevant activities are required.
Separate joint venture entities providing joint venturers with an interest to net assets are classified as a “joint
venture” and accounted for using the equity method.
Joint venture operations represent arrangements whereby joint operators maintain direct interests in each
asset and exposure to each liability of the arrangement. The Group’s interests in the assets, liabilities, revenue
and expenses of joint operations are included in the respective line items of the consolidated financial
statements.
Gains and losses resulting from sales to a joint operation are recognised to the extent of the other parties’
interests. When the Group makes purchases from a joint operation, it does not recognise its share of the gains
and losses from the joint arrangement until it resells those goods/assets to a third party.
41 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
k) Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which that entity operates. The subsidiaries’ functional and presentation currency are in
Australian dollars, United States dollar and Singapore dollar.
The consolidated financial statements are presented in Australian dollars which is the parent entity’s
functional and presentation currency.
l) Foreign currency transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at
the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate.
Non-monetary items measured at historical costs continue to be carried at the exchange rate at the date of
the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date
when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of
comprehensive income, except where deferred in equity as a qualifying cashflow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the
extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in
the statement of profit or loss and other comprehensive income.
m) Group companies
The financial results and position of foreign operations whose functional currency is different from the Group’s
presentation currency are translated as follows:
• Assets and Liabilities are translated at year-end exchange rates prevailing at that reporting date.
•
Income and expenses are translated at average exchange rates prevailing for the periods.
Exchange rate differences arising on translation of foreign operations are transferred directly to the Group’s
foreign currency translation reserve in the statement of financial position. These differences are recognised
in the statement of profit or loss and other comprehensive income in the period in which the operation is
disposed.
42 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n) Revenue
AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related
Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with
customers and requires that revenue to be recognised at an amount that reflects the consideration to which
an entity expects to be entitled in exchange for transferring goods or services to a customer.
The Company has applied AASB 15 “Revenue with Customers” from 1 July 2018 which resulted in changes in
accounting policy. The changes in policy are relatively consistent with previous policy and has therefore not
had a material impact. The Company has applied the modified retrospective application approach in which
only the initial period of application applies AASB 15. No adjustment was made as a result of adopting AASB
15.
The adoption of AASB 15 does not have a significant impact on the Group as the Group does not currently
have any revenue from customers.
Interest income
Interest income from financial assets is recognised when it is probable that economic benefit will flow to the
Group and the amount of revenue can be measured reliably.
o) Employee benefits
Provision is made for the Group’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, plus related on-costs. 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.
p) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of a past event,
for which it is probable that an outflow of economic benefits will result, and that outflow can be reliably
measured.
q) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid
investments with original maturities of three months.
43 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
r) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST is
not recoverable from the Australian Taxation Office. 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.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
s) Share based payment transactions
The Group provides benefits to the Directors and senior executives in the form of share-based payment
transactions, whereby services are rendered in exchange for shares or rights over shares (‘equity settled
transactions’).
The cost of these equity settled transactions with Directors is measured by reference to the fair value at the
date at which they are granted. The fair value is determined by an external valuer using the Black- Scholes
model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Sihayo Gold Limited.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the market conditions are fulfilled. The cumulative expense recognised for equity-settled
transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has
expired and (ii) the number of awards that in the opinion of the Directors will ultimately vest. The opinion is
formed on the best available information at balance date. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions is included in the determination of fair
value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional
upon market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any increase in the value of the
transaction as a result of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation
of earnings per share.
44 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
t) Trade and other receivables
CURRENT
All trade debtors are recognised at the amounts receivable as they are due for settlement no more than 30
days from the date of recognition. Collectability of trade debtors is reviewed on an ongoing basis. Debts which
are known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to
collection exists and in any event when the debt is more than 60 days overdue.
NON-CURRENT
All debtors that are not expected to be received within 12 months of reporting date are included in non-
current receivables. Collectability of non-current receivables is reviewed on an ongoing basis. Debts which are
known to be uncollectible are written off. A provision for doubtful debts is raised when some doubt as to
collection exists.
u) Trade and other creditors
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end
of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
v) Leases
The Group has adopted AASB 16 as 1 July 2019. At inception of a contract the Group assesses if the contract
contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding liability are recognised
by the Group where the Group is a lessee. However, all contracts that are classified as short-term leases (i.e.
leases with a remaining lease term of 12 months or less) and leases of low-value assets are recognised as an
operating expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Group uses incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
fixed lease payments less any lease incentives;
•
• variable lease payments that depend on index or rate, initially measured using the index or rate at the
•
•
•
commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;
lease payments under extension options, if the lessee is reasonably certain to exercise the options;
and
• payments of penalties for terminating the lease, if the lease term reflects the exercise of options to
terminate the lease.
45 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
v) Leases (continued)
The right-of-use assessment comprises the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest.
Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that
the Group anticipates exercising a purchase option, the specific asset is depreciated over the useful life of the
underlying asset.
The Group has disclosed in the Note 7 for right-of-use asset and lease liability.
w) Borrowing costs
Borrowing costs include interest relating to borrowings, including trade creditors and lease finance
arrangements. Borrowing costs are expensed as incurred.
x) Provision for rehabilitation
A provision has been made for the present value of anticipated costs for future restoration of mineral leases.
The provision includes future cost estimates associated with rehabilitating areas of disturbance caused
through the exploration and mining activities of the Group. The calculation of this provision requires
assumptions such as the timing and cost estimates.
The Group records the present value of the estimated cost of legal and constructive obligations to rehabilitate
locations where activities have occurred which have led to a future obligation to make rehabilitation. The
nature of rehabilitation activities includes dismantling and removing structures, rehabilitating mine sites,
dismantling operating facilities, closure of tailings and waste sites and restoration, reclamation and
revegetation of affected areas.
Typically, the obligation arises when the asset is installed or the ground/environment is disturbed at the
mining location. When the liability is initially recorded, the present value of the estimated cost is capitalised
as part of the carrying amount of the related mining assets. Over time, the discounted liability is increased for
the change in the present value based on a discount rate that reflects current market assessments. Additional
disturbances or changes in rehabilitation costs will be recognised as additions or changes to the corresponding
asset and rehabilitation liability when incurred. Although the ultimate cost to be incurred is uncertain, the
Group has estimated its costs based on feasibility and engineering studies using current restoration standards
and techniques.
46 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
x) Provision for rehabilitation (continued)
The unwinding of the effect of discounting the provision is recorded as a finance cost in the Consolidated to
profit or loss and other comprehensive income. The carrying amount capitalised as a part of mining assets is
depreciated/amortised over the life of the related asset.
Costs incurred that relate to an existing condition caused by past operations but do not have a future economic
benefit are expensed as incurred.
y) Segment reporting
The Group determines and presents operating segments based on the information that internally is provided
to the Executive Chairman, who is the Group’s chief operating decision maker. An operating segment is a
component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other
components. All operating segments’ operating results are regularly reviewed by the Executive Chairman to
make decisions about resources to be allocated to the segment and assess its performance.
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with
respect to operating segments are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Group.
Intersegment loans payable and receivable are initially recognised at the consideration received net of
transaction costs. If intersegment loans receivable and payable are not on commercial terms, these are not
adjusted to fair value on market interest rates. Please refer to note 26.
z) Significant accounting judgements, estimates and assumptions
Significant accounting judgements
In the process of applying the Group’s accounting policies, management has made the following judgements,
apart from those involving estimations, which have the most significant effect on the amounts recognised in
the financial statements:
Exploration and evaluation assets
The Group’s accounting policy for exploration and evaluation expenditure is set out as per Note 6. The
application of this policy necessarily requires management to make certain estimates and assumptions as to
future events and circumstances, in particular, the assessment of whether economic quantities of reserves are
found. Any such estimates and assumptions may change as new information becomes available.
Significant accounting estimates and assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting
period are:
47 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
z)
Significant accounting judgements, estimates and assumptions (continued)
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences when management considers that it
is probable that future taxable profits will be available to utilise those temporary differences.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The Group measures the cost of cash-settled
share-based payments at fair value at the grant date using the Black-Scholes model taking into account the
terms and conditions upon which the instruments were granted. Refer to Note 14 for share-based payments.
2. RISK MANAGEMENT
(a) Interest rate risk
The Group exposure to interest rate risk, 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 on classes of financial
assets and liabilities. The Consolidated Entity and the Company do not have a major exposure in this area as
the interest rate earned on deposited funds does not vary greatly from month to month.
48 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
Consolidated Entity
2023
Fixed interest rate maturing in
Floating
interest
rate
1 year or
less
1 to 5
years
More
than 5
years
Non-
interest
bearing
$
$
$
$
$
Cash and cash
equivalents
Trade and
other
receivables
Deposits
Total financial
8,396,786
-
-
assets
8,396,786
-
-
-
-
-
-
-
-
-
-
Total
carrying
amount
at balance
sheet
$
Applicable
interest
rate on
30 June
2023
%
-
8,396,786
-
17,295
17,295
2,929,882
32,671
2,962,553
2,929,882
49,966
11,376,634
-
2.25%-
3.25%
Trade and
other
payables
Lease liability
Borrowing
Other
liabilities
Total financial
liabilities
-
-
-
-
-
-
-
4,434,155
-
96,648
-
-
-
4,434,155
96,648
-
-
-
-
-
3,114,091
-
-
3,114,091
96,648
4,434,155
-
10.33%
12%
57,225
57,225
-
3,171,316
7,702,119
49 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
2. RISK MANAGEMENT (continued)
Consolidated Entity
2022
Fixed interest rate maturing in
Floating
interest
rate
1 year
or
less
1 to 5
years
More
than 5
years
Non-
interest
bearing
$
$
$
$
$
Cash and cash
equivalents
Trade and
other
receivables
Deposits
Total financial
2,441,467
-
-
assets
2,441,467
-
-
-
-
-
-
391,675
391,675
Trade and
other
payables
Lease liability
Other
liabilities
Total financial
liabilities
(b) Credit risk exposures
-
-
-
-
-
3,531
-
4,931
-
-
3,531
4,931
-
-
-
-
-
-
-
-
Total
carrying
amount at
balance
sheet
$
Applicable
interest
rate on
30 June
2022
%
-
2,441,467
-
4,949,860
54,905
4,949,860
446,580
-
3.25%
5,004,765
7,837,907
1,515,467
-
1,515,467
8,462
57,225
57,225
1,572,692
1,581,154
-
10%
-
The consolidated entity and the Company have no significant concentrations of credit risk. The maximum
exposure to credit risk at balance date is the carrying amount (net of provision of doubtful debts) of those
assets as disclosed in the consolidated statement of financial position and Note 24.
As the consolidated entity and Company does not presently have any debtors arising from sales, lending,
significant stock levels or any other credit risk, a formal credit risk management policy is not maintained.
50 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
2. RISK MANAGEMENT (continued)
(c) Foreign currency risk management
The Consolidated Entity and the Company is exposed to fluctuations in foreign currencies arising from costs
incurred at overseas mineral exploration tenements. To mitigate this risk the Company holds cash in the
currency in which it forecasts the costs will be incurred. Please refer to Note 24 for exposure to fluctuation in
foreign currencies.
(d) Liquidity risk
Liquidity risk is the risk that the Consolidated Entity and the Company will not be able to meet its financial
obligations as they fall due. Financial obligations of the Consolidated Entity and the Company consist of trade
and other payables, borrowings and lease liabilities.
The table below summarises the impact of a 1 percent weakening/strengthening of market interest rates and
the effective weighted average interest rate at financial liabilities of borrowings and lease liability:
Consolidated
2023
$
2022
$
Borrowing and Lease liability + 1%
Borrowing and Lease liability - 1%
16,009
(16,009)
85
(85)
(e) Commodity Price Risk
At the 30 June 2023, the Group does not have any financial instruments subject to commodity price risk.
3. OTHER REVENUE
Revenue from the operating activities:
Interest
Consolidated
2023
$
2022
$
18,017
18,017
9,859
9,859
51 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
3(a) INCOME TAX EXPENSE
Loss from ordinary activities before income tax expense
(9,275,739)
(41,605,819)
(i) Prima facie tax benefit on loss from ordinary activities at 25%
Consolidated
2023
$
2022
$
(30 June 2022: 25%)
Tax effects of amounts which are not deductible/(taxable)
in calculating taxable income:
Accruals
Foreign exchange
Penalty expense
Capital loss
Share based payment
Movement in unrecognised temporary difference
Tax effect of current year tax losses for which
no deferred tax asset has been recognised
Income tax expense
(ii) Unrecognised temporary differences
Deferred tax assets at 25% (30 June 2022: 25%)
Carried forward revenue tax losses
Carried forward capital tax losses
Black hole expenditure
Accruals
(2,318,935)
(10,401,455)
377,427
40,319
-
-
-
247,205
105,273
-
(580,458)
(42,870)
(1,901,189)
1,459,865
(10,672,305)
9,168,160
441,324
-
1,504,145
-
8,755,070
1,467,981
175,153
377,427
10,775,631
8,732,041
1,467,981
246,863
247,205
10,694,090
This benefit for tax losses will only be obtained if:
(i)
the consolidated entity derives future assessable income of a nature and of an amount sufficient to
enable the benefit from the deductions for the losses to be realised, or
the losses are transferred to an eligible entity in the consolidated entity, and
the consolidated entity continues to comply with the conditions for deductibility imposed by tax
legislation; and
no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the
deductions for the losses.
the movement in unrecognised DTA on tax losses does not agree to Note 3(a)(i) due to foreign
exchange differences.
(ii)
(iii)
(iv)
(v)
52 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
4. TRADE AND OTHER RECEIVABLES
CURRENT
Prepayments
NON CURRENT
VAT receivable
Provision VAT receivable
Consolidated
2023
$
2022
$
79,803
79,803
5,464,520
(5,464,520)
-
445,952
445,952
4,949,860
-
4,949,860
VAT receivables will be recoverable from the Indonesian Goverment once production commences. The
Company has taken the conservative view that no VAT will be recoverable, however, this may be reversed
once the Company moves closer to production.
5. PROPERTY, PLANT AND EQUIPMENT
NON-CURRENT
Land at Cost
Plant and equipment, at cost
Write off
Less: accumulated depreciation
Motor vehicles, at cost
Write off
Less: accumulated depreciation
Office equipment, at cost
Additions
Less: accumulated depreciation
Construction in progress
Addition
Adjustment
Consolidated
2023
$
2022
$
79,382
-
-
-
-
-
-
-
-
792,427
6,057
(777,000)
21,484
3,946,715
-
(37,118)
3,909,597
76,397
352,531
(352,531)
-
-
117,555
-
(117,555)
-
775,680
16,747
(764,818)
27,609
2,798,657
1,001,237
-
3,799,894
Total property, plant and equipment
4,010,463
3,903,900
53 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
5. PROPERTY, PLANT AND EQUIPMENT (continued)
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and
end of the current financial year are set out below:
2023
Consolidated
Carrying amount at
1 July 2022
Effect of foreign
currency translation
Additions
Adjustment
Depreciation expense
Carrying amount at
30 June 2023
2022
Consolidated
Carrying amount at
1 July 2021
Effect of foreign
currency translation
Additions
Disposal
Depreciation expense
Carrying amount at
30 June 2022
Land at
cost
$
Office
equipment
$
Construction in
progress
$
Total
$
76,397
27,609
3,799,894
3,903,900
2,985
-
-
-
-
6,057
-
(12,182)
146,821
-
(37,118)
-
149,806
6,057
(37,118)
(12,182)
79,382
21,484
3,909,597
4,010,463
Land at
cost
$
Plant &
equipment
$
Office
equipment
$
Construction
in progress
$
Total
$
69,951
262
23,091
2,562,516
2,655,820
6,446
-
-
-
76,397
-
-
(262)
-
1,166
16,747
-
(13,395)
236,141
1,001,237
-
-
243,753
1,017,984
(262)
(13,395)
-
27,609
3,799,894
3,903,900
6. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE
Opening balance
Additions
Impairment
Change arising from foreign currency translation
Closing balance
Consolidated
2023
$
2022
$
5,528,100
10,085,793
-
1,689,823
17,303,716
30,072,957
10,569,224
(37,872,421)
2,758,340
5,528,100
54 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
6. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE (continued)
Management believes that the carrying amount of the Group’s capitalised expenditure and evaluation costs
is adequate and recoverable.
The ultimate recoupment of capitalised exploration expenditure is dependent on the successful development
for commercial exploitation or sale of respective mining projects.
7(a) RIGHT-OF-USE ASSET
NON-CURRENT
Right-of-use asset
Reconciliation of right-of-use asset
Consolidated
Carrying amount at 1 July 2022
Addition
Depreciation expense
Change arising from foreign currency translation
Carrying amount at 30 June 2023
Consolidated
Carrying amount at 1 July 2021
Depreciation expense
Change arising from foreign currency translation
Carrying amount at 30 June 2022
7(b) LEASE LIABILTIES
CURRENT
Lease liabilities
NON-CURRENT
Lease liabilities
TOTAL
Consolidated
2023
$
2022
$
112,885
7,444
Office space
$
7,444
130,252
(18,892)
(5,919)
112,885
Office space
$
9,846
(3,309)
907
7,444
Consolidated
2023
$
2022
$
-
96,648
96,648
3,531
4,931
8,462
55 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
7(b) LEASE LIABILTIES (Continued)
Reconciliation of lease liability
Consolidated
Beginning balance 1 July 2022
Addition
Interest expense
Lease payment
Change a rising from foreign currency translation
Ending balance 30 June 2023
Reconciliation of lease liability
Consolidated
Beginning balance 1 July 2021
Interest expense
Lease payment
Change a rising from foreign currency translation
Ending balance 30 June 2022
8. TRADE AND OTHER PAYABLES
CURRENT
Trade and other payables
There are no trade payables past due.
9. PROVISIONS
NON-CURRENT
Employee entitlements
Other provisions
TOTAL
Employee numbers
Average number of employees during the financial year
Office space
$
8,462
130,252
360
(30,956)
(11,470)
96,648
Office space
$
10,673
945
(4,087)
931
8,462
Consolidated
2023
$
2022
$
3,114,091
3,114,091
1,515,467
1,515,467
Consolidated
2023
$
2022
$
728,500
168,603
897,103
584,216
162,485
746,701
29
29
56 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
10. PROVISION FOR MINING REHABILITATION
The provision for mining rehabilitation represents a reclamation provision set up by PT Sorikmas Mining to
comply with the Indonesia Government Regulation No. 78 of 2010 regarding Reclamation and Post-Mining
that deals with reclamations and post-mining activities which among other requirements, must (1) prepare a
five-year reclamation plan; (2) prepare a post-mining plan; 3) provide a reclamation guarantee which may be
in the form of a joint account or time deposit placed at a state-owned bank, a bank guarantee, or an accounting
provision; and (4) provide a post-mine guarantee in the form of a time deposit at a state-owned bank.
The requirement to provide reclamation and post-mine guarantees does not release PT Sorikmas Mining from
the requirement to perform reclamation and post-mine activities.
Based on decision letter No. 191/37.06/DJB/2020 dated 5 February 2020, the Minister of Energy and Mineral
Resources has stipulated the PT Sorikmas Mining mine reclamation guarantee for year 2020-2024 amounts to
IDR39,948,496,132 (AUD $3,986,478). As at 30 June 2023 the provision for mining rehabilitation including the
above amount to $4,148,483.
PT Sorikmas Mining will be required to provide the balance of mine reclamation guarantee prior to
commencement of mining.
On 7 May 2018, Indonesia Ministry of Energy and Mineral Resources released the Minister’s Decree
No. 1827K/30/MEM/2018 on the Guidance for the Implementation of Good Mining Technic Methods which
further regulates the reclamation plan, consideration of future value from the postmining costs and
accounting reserve determination.
As of 30 June 2023, PT Sorikmas Mining has placed a restricted time deposit in relation to reclamation
amounting to IDR29,065,568,464 or equivalent to $2,929,882 (30 June 2022: $391,675).
11. BORROWINGS
Working capital loans:
Provident Minerals Pte Ltd
Consolidated
2023
$
2022
$
4,434,155
4,434,155
-
-
Working capital loan is classified as unsecured and rank pari passu with existing unsecured obligations with
interest rate of 12% per annum on a compounded basis. The lender is not entitled to demand repayment of
the outstanding loan in any circumstances prior to the maturity date or any other date mutually agreed
between the parties, except in an event of default. The maturity date falls on 30 September 2023.
On 30 June 2023, the working capital loans amounting to AUD$3,774,800 were converted into 1,887,399,938
shares at $0.002 per share.
57 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
12. CONTRIBUTED EQUITY
Issued capital
Fully paid – ordinary shares
12,204,256,180 (2022: 6,102,128,090)
Consolidated
2023
$
2022
$
170,791,312
170,791,312
158,654,770
158,654,770
Movements in ordinary share capital of the Company during the past 2 years were as follows:
Number of Shares
$
01/07/2021
27/05/2022
03/06/2022
Opening balance
Shares issued (i)
Shares issued (i)
Share issuance costs
Balance at 30 June 2022
30/06/2023
Shares issued (ii)
Share issuance costs
3,685,461,421
565,924,746
1,850,741,923
-
6,102,128,090
6,102,128,090
-
149,083,183
2,263,699
7,402,968
(95,080)
158,654,770
12,204,256
(67,714)
Balance at 30 June 2023
12,204,256,180
170,791,312
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company
in proportion to the number of and amounts paid on the shares held. On a show of hands every holder of
ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share
is entitled to one vote.
Loan conversions
During the years ended 30 June 2022 and 30 June 2023, the Company had converted loans with the
following details:
(i)
Included within the 2,416,666,669 shares issued during the year ended 30 June 2022, there is a conversion
of the working capital loan with total 895,213,240 shares issued @$0.004 per share.
Included within the 6,102,128,090 shares issued during the year ended 30 June 2023, there is a conversion
of the working capital loan with total 1,887,399,938 shares issued @$0.002 per share (Note 22d).
(ii)
58 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
13. RESERVES AND ACCUMULATED LOSSES
Consolidated
2023
$
2022
$
Note
(a) Reserves
Option reserve (i)
Foreign currency translation reserve (ii)
Other reserve (iii)
(i) Option reserve
Balance at the beginning of the financial year
Movement for the year
Balance at the end of the financial year
(ii) Foreign currency reserve
Balance at the beginning of the financial year
Movement for the year
Balance at the end of the financial year
(iii) Other reserve
2,380,395
20,266,061
140,933
22,787,389
2,380,395
17,137,205
296,864
19,814,464
Consolidated
2023
$
2,380,395
-
2,380,395
2022
$
2,551,873
(171,478)
2,380,395
Consolidated
2023
$
2022
$
17,137,205
3,128,856
20,266,061
10,753,251
6,383,954
17,137,205
Other reserve related to movement in actuarial loss on defined pension benefit scheme in Indonesia.
(b) Accumulated losses
Balance at the beginning of the financial year
Net losses attributable to members of
Sihayo Gold Limited
Balance at the end of the financial year
Consolidated
2023
$
2022
$
(140,049,851)
(98,098,358)
(8,936,275)
(148,986,126)
(41,951,493)
(140,049,851)
59 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
14. SHARE BASED PAYMENTS
As of 30 June 2023 and 2022 the share-based payments expense was nil there were no options granted during
the year ended 30 June 2023 that the vesting conditions will not be achievable on or before the expiry.
The following table lists those inputs to the model used pertaining to options granted during the prior year
ended 30 June 2021.
No. of options
Grant date
Share price
Exercise price
Interest rate
Expiry date
Volatility
Fair value at grant date
Vesting conditions (refer below)
24,500,000
30/11/2020
$0.0190
$0.02907
8.50%
09/12/2022
90%
$0.0070
(1)
17,000,000
30/11/2020
$0.0190
$0.02907
8.50%
09/12/2022
90%
$0.0070
(2)
34,000,000
30/11/2020
$0.0190
$0.03624
29.54%
09/12/2026
90%
$0.0122
(3)
70,000,000
30/11/2020
$0.0190
$0.03624
29.54%
09/12/2026
90%
$0.0122
(4)
(1) The Company raises US$7,000,000 in equity from parties other than current significant shareholders
and/or PT Merdeka Copper Gold Tbk and affiliates; and achieves financial closing in relation to the Sihayo
Gold Project whereby bank loans fund a minimum of 50% of the project construction’s capital
expenditure.
(2) The Company successfully raises an additional US$30,000,000 in equity from parties other than current
significant shareholders, and/or PT Merdeka Copper Gold Tbk and affiliates for the Sihayo Gold Project
before project construction commences.
(3) The Company makes full repayment of all outstanding debt from free-cashflow.
(4) The first occur of:
i.
ii.
If as a result of new exploration discoveries, the existing project near mine measured and indicated
reserves increase such that the overall project NPV (discounted at 8% above treasuries) increases by
at least US$100m, then:
a. 20% will vest upon the publication of an ASX announcement to that effect; and
b. An additional 20% will vest for every additional US$100m NPV (discounted at 8% above
treasuries) increase beyond the initial US$100m increase, as a result of new exploration
discoveries, until 100% have vested; or
If a discovery is made and the Board formally approves the development of a project, separate to the
existing Sihayo Gold Project, with an NPV of at least US$300m (discounted at 8% above treasuries)
based on Measured and Indicated Resources, then:
a. 20% will vest upon the publication of an ASX announcement to that effect; and
b. An additional 20% will vest for every additional US$100m NPV (discounted at 8% above
treasuries) calculated for the new project approval above the initial threshold project value of
US$300m, until 100% have vested.
60 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
15. PARENT ENTITY DISCLOSURE NOTE
FINANCIAL POSITION
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserve
Accumulated losses
Total equity
FINANCIAL PERFORMANCE
Loss for the year
Total comprehensive Loss
Parent
2023
$
2022
$
8,396,079
123,513
8,519,592
5,944,485
5,944,485
2,575,107
1,327,447
124,092
1,451,539
1,070,875
1,070,875
380,664
170,791,312
2,477,095
(170,693,300)
2,575,107
158,654,770
2,477,095
(160,751,201)
380,664
Parent
2023
$
(9,942,099)
(9,942,099)
2022
$
(15,840,046)
(15,840,046)
The parent entity did not enter into any guarantees in relation to the debts of its subsidiaries for 2022 or 2023.
There are no contingencies or commitments other than mentioned within the report.
61 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
16. KEY MANAGEMENT PERSONNEL DISCLOSURE
Names and positions held of parent entity Key Management Personnel in office at any time during the financial
year are:
Key Management Personnel
Colin F Moorhead
Misha Collins
Gavin Caudle
Daryl Corp
Roderick Crowther
Executive Chairman
Independent Non-Executive Director
Non-Executive Director
Independent Non-Executive Director
Chief Financial Officer
There are no executives (other than those listed above) with authority for strategic decision and management.
Compensation for Key Management Personnel
Short-term employee benefits
Non-monetary benefit
Post-employment benefits
Share based payments
Consolidated
2023
$
659,795
60,526
59,828
-
780,149
2022
$
659,400
57,791
56,940
(171,478)
602,653
Disclosures relating to Directors-related entities are set out in the Director’s Report and as detailed in Note
19.
17. REMUNERATION OF AUDITORS
Remuneration for audit or review of the financial
reports of the parent entity or any entity in the
consolidated entity:
Stantons International
BDO Indonesia (subsidiary auditor)
Consolidated
2023
$
2022
$
75,716
32,928
108,644
64,296
22,573
86,869
62 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
18. CONTINGENT ASSETS AND LIABILITIES
There are no contingent assets and liabilities as at 30 June 2023.
19. RELATED PARTIES
Directors and Director-related entities
Disclosures relating to Directors and specified executives are set out in the Director’s Report and as detailed
in Note 16.
(i) Colin Moorhead & Associates, an entity associated with Mr Colin F Moorhead, provide some services to
Sihayo Gold Limited with the detail transactions below:
- Rental office space, administration and office support with total amount of $18,138.
- Consultants engaged through Colin Moorhead & Associates for environmental, social and governance
consultation with total amount of $12,567.
(ii) There is $596,250 in Directors fees which was payable as at 30 June 2023 and in lieu of previous years to
Gavin Caudle (30 June 2022: $551,250).
Wholly-owned Group
The Wholly-owned Group consists of Sihayo Gold Limited and
Excelsior Resources Pty Limited, Oropa Indian Resources Pty Limited.
its wholly-owned subsidiaries
0n 6 May 2022, the following subsidiaries were deregistered namely:
(i) Inland Gold Mines Pty Limited;
(ii) Oropa Technologies Pty Limited, and
(iii) Oropa Exploration Pty Limited.
On deregistration of the above subsidiaries, overall the Group made a loss of $19,560.
Sihayo Gold Limited owns 100% of the shares in Aberfoyle Pungkut Investments Pte Ltd (“API”). API holds
a 75% interest in PT Sorikmas Mining, with the Indonesian Government mining company, PT Aneka Tambang
Tbk. holding the remaining 25% interest.
63 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
19. RELATED PARTIES (Continued)
Wholly-owned Group (Continued)
Transactions between Sihayo Gold Limited and related parties in the Wholly-owned Group during the year
ended 30 June 2023 consisted of loans on an interest free basis with no fixed term and no specific repayment
arrangements. Sihayo Gold Limited recognised provision for doubtful debts of $12,451,756 due to the
movement in loan balance in its accounts for the year ended 30 June 2023 (2022: $20,076,372) in relation to
the loans made to its subsidiaries. No other amounts were included in the determination of operating loss
before tax of the parent entity that resulted from transactions with related parties in the Group.
Other related parties
Aggregate amounts receivable from related parties in the Wholly-owned Group at balance date were as
follows:
Non-current receivables
Provision for doubtful debts
Parent
2023
$
2022
$
157,422,243
(157,422,243)
-
144,970,487
(144,970,487)
-
Other related party transactions during the reporting period include working capital loans which have been
provided by the Company’s shareholders which were repaid as at the reporting date (Note 12 and Note 22(d)).
20. EXPENDITURE COMMITMENTS
Exploration commitments
In order to maintain current rights of tenure to exploration tenements, the Company and consolidated entity
were previously required to outlay lease rentals and to meet the minimum expenditure requirements of the
Mines Departments.
PT Sorikmas Mining commitments
Under the CoW, the Company was required to make certain minimum expenditures in respect of the CoW
area during the General Survey Period and Exploration Period as follows:
General survey period
Exploration period
US$ / km2
100
1,100
As at 30 June 2023, PT Sorikmas Mining had fulfilled its expenditure commitments in respect of the General
Survey Period and Exploration Period.
64 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
20. EXPENDITURE COMMITMENTS (Continued)
Service commitments
The Group entered a service commitment with PT Merdeka Copper Gold, Tbk related to accounting, tax, legal,
payments, payroll and information technology services with total fixed cost of IDR290,000,000/month
(excluded additional cost if any) within years ended 30 June 2022 and 30 June 2023.
Other commitments
Parent Entity:
Sihayo Gold Limited
Project
Mt Keith
Controlled Entity:
Excelsior Resources Pty Limited
Principal activities
Interest 2023
Interest 2022
Mineral exploration
2% Royalty
2% Royalty
Project
Mulgabbie
Principal activities
Interest 2023
Interest 2022
Mineral exploration
2% Royalty
2% Royalty
21. INVESTMENTS IN CONTROLLED ENTITIES
Controlled entities:
Class of
shares
Cost of Parent Entity’s
investment
Equity holding
Excelsior Resources Pty Limited
(incorporated in Australia)
Oropa Indian Resources Pty
Limited (incorporated
in Australia)
Aberfoyle Pungkut
investments Pte Ltd(a)
(incorporated in Singapore)
PT Sorikmas Mining (b)
(incorporated in Indonesia)
2023
$
2022
$
2023
%
2022
%
Ordinary
1,062,900
1,062,900
100
100
Ordinary
1
1
100
100
Ordinary
697,537
697,537
100
100
-
1,760,438
-
1,760,438
75
75
(a) When Sihayo Gold Limited issued 9,259,259 shares as consideration for exercising the option to acquire
100% of the shares in Aberfoyle Pungkut Indonesia Pte Ltd, it was assigned the vendors receivables from
Aberfoyle Pungkut Investments Pte Ltd and PT Sorikmas Mining. This reduced the cost of the investment
in Aberfoyle Pungkut Investments Pte Ltd.
65 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
21. INVESTMENTS IN CONTROLLED ENTITIES (Continued)
(b) Aberfoyle Pungkut Investments Pte Ltd holds a 75% interest in PT Sorikmas Mining, with an Indonesian
Government mining company PT Aneka Tambang Tbk. holding the remaining 25% interest. The non-
controlling interest in PT Sorikmas Mining equates to 25% of the net liabilities of PT Sorikmas Mining of
$97,896,299 being $24,474,074 as at 30 June 2023 (2022: $23,215,572). The movement during the year
represents the transfer of losses from the Group to non-controlling interest.
22. NOTES TO THE STATEMENT OF CASH FLOWS
Consolidated
2023
$
2022
$
Cash and cash equivalents
8,396,786
2,441,467
(a) Reconciliation of cash and cash equivalents
For the purposes of the Statement of Cash Flows cash includes cash and cash equivalents on hand and at
call deposits with banks. It includes of $Nil (2022: $27,419) held on trust.
(b) Reconciliation of operating loss after income tax to net cash flow from operating activities
Operating loss after income tax
(9,275,739)
(41,605,819)
Consolidated
2023
$
2022
$
Non-cash items
Depreciation
Share based payments
Provision expenditure and exploration
Interest on loan
Provision for trade and other receivables
Unwinding of the interest in respect of lease
liabilities
Change in operating assets and liabilities:
Decrease/increase in trade and other receivables
Increase/decrease in payables
Increase in provisions
Net cash outflow from operating activities
31,074
-
-
382,335
5,464,520
16,704
(171,478)
37,872,421
-
-
360
945
366,149
1,598,624
150,402
(1,282,275)
(1,097,016)
(669,095)
82,032
(5,571,306)
66 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
22. NOTES TO THE STATEMENT OF CASH FLOWS (Continued)
(c) Reconciliation of liabilities arising from financial activities
Non-cash changes
2022
$
Net Cash
flows
$
Converted
into
shares
$
Interest
expense
$
Non-
cash
changes
Foreign
exchange
movement
$
2023
$
-
8,462
8,208,955
(30,956)
(3,774,800)
-
-
360
-
130,252
-
(11,470)
4,434,155
96,648
8,462
8,177,999
(3,774,800)
360
130,252
(11,470)
4,530,803
Non-cash changes
2021
$
Net Cash
flows
$
Converted
into shares
$
Interest
expense
$
Foreign
exchange
movement
$
2022
$
-
10,673
3,545,718
(4,087)
(3,580,853)
-
(80,853)
945
115,988
931
-
8,462
10,673
3,541,631
(3,580,853)
(79,908)
116,919
8,462
Borrowings
Lease liability
Total liabilities
from financing
activities
Borrowings
Lease liability
Total liabilities
from financing
activities
(d) Non-cash transactions for financing activities
On 30 June 2023, the Company has converted part of the working capital loans into 1,887,399,938 shares
issued at @$0.002 per share and with total amount of $3,774,800. Therefore, the resulting the cash
received from issuance of shares was $8,429,456 (before capital raising cost of $67,714).
23. EARNINGS PER SHARE
(a) Basic and diluted loss per share (in cents)
(b) Weighted average number of shares outstanding
during the year used in the calculation of basic earnings
per share
Consolidated Entity
2023
2022
(0.15)
(1.08)
6,118,846,249
3,883,253,381
As the Group made a loss for the year, diluted earnings per share is the same as basic earnings per share.
67 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
24. FINANCIAL INSTRUMENTS
Net fair value of financial assets and liabilities
The net fair value of financial assets and financial liabilities of the Group approximates their carrying value.
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and deposits
Total financial assets
Financial liabilities
Trade and other payables
Borrowings
Lease liability
Other liabilities
Total financial liabilities
Credit risk
Consolidated
2023
$
8,396,786
3,003,374
11,400,160
2022
$
2,441,467
5,794,149
8,235,616
Consolidated
2023
$
2022
$
3,114,091
4,434,155
96,648
57,225
7,702,119
1,515,467
-
8,462
57,225
1,581,154
The Company’s maximum exposure to credit risk at the reporting date was as detailed below:
Financial assets
Cash and cash equivalents
Trade, other receivables and deposits
Total financial assets
Consolidated
2023
$
2022
$
8,396,786
3,042,356
11,439,142
2,441,467
5,842,392
8,283,859
68 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
24. FINANCIAL INSTRUMENTS (continued)
Impairment losses
At 30 June 2023, impairment was made in relation to VAT receivables amounting to $5,464,520 (30 June 2022:
Nil). The Company does not have any material credit risk exposure to any single debtor or group of debtors
under financial instruments entered by the economic entity.
Foreign currency risk management
The consolidated entity and company undertake certain transactions denominated in foreign currencies,
hence exposures to exchange rate fluctuations arise. Sihayo Gold Limited has opened a US Dollar Bank Account
to manage exchange rate fluctuations.
The carrying amount of the consolidated entity’s foreign currency denominated assets and liabilities at the
reporting date in Australian Dollars is as follows:
Australian Dollars
Liabilities
Assets
2023
$
1,186,143
2022
$
391,679
2023
$
8,563,153
2022
$
6,365,270
The table below details financial assets and liabilities of the consolidated entity exposed to foreign currency
risk.
Cash and cash equivalents
SGD
USD
IDR
Trade, other receivables
and deposits
IDR
Trade and other payables
SGD
IDR
Lease liability
IDR
Consolidated
2023
2022
6
37,775
552,368,103
6
125,292
4,244,717,330
83,998,966,135
59,153,590,492
5,000
10,774,271,409
5,000
3,962,398,894
960,679,356
86,465,140
69 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
24. FINANCIAL INSTRUMENTS (continued)
Sensitivity analysis
The table below summarises the impact of a 10 percent weakening/strengthening of the Australian Dollar
against the US Dollar, the Singaporean Dollar and Rupiah in the movement of the financial assets and liabilities
listed in the previous table.
Impact on post-tax profit and accumulated
losses
USD/AUD
USD/AUD
SGD/AUD
SGD/AUD
IDR/AUD
IDR/AUD
Impact on equity reserve only
USD
USD
SGD
SGD
IDR
IDR
AUD
+10%
-10%
+10%
-10%
+10%
-10%
AUD
+10%
-10%
+10%
-10%
+10%
-10%
Consolidated
2023
$
5,698
(5,698)
(557)
557
732,560
(732,560)
2022
$
18,187
(18,187)
(521)
521
578,849
(578,849)
Consolidated
2023
2022
5,698
(5,698)
(557)
557
732,560
(732,560)
18,187
(18,187)
(521)
521
578,849
(578,849)
25. EVENTS OCCURRING AFTER REPORTING DATE
On 3 July 2023, the Company repaid the working capital loans of $4,434,155 together with interest of
$382,335 to Provident Minerals Pte Ltd in total amounting to $4,816,490.
70 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
26. SEGMENT INFORMATION
Primary reporting – geographical segments
The geographical segments of the consolidated entity are as follows:
Revenue by geographical region
Revenue attributable to the Group disclosed below, based on where the revenue is generated from:
Australia
South East Asia
Total revenue
Segment result by geographical region
Australia
South East Asia
India
Total expenses
Segment result
2023
$
2022
$
211
9,648
9,859
211
17,806
18,017
2023
$
(1,588,639)
(7,704,827)
(290)
(9,293,756)
2022
$
(1,545,016)
(40,070,386)
(276)
(41,615,678)
(9,275,739)
(41,605,819)
Assets by geographical region
The location of segment assets by geographical location of the assets is disclosed below:
Australia
South East Asia
India
Total assets
2023
$
8,519,591
24,346,613
2
32,866,206
Liabilities by geographical region
The location of segment liabilities by geographical location of the liabilities is disclosed below:
Australia
South East Asia
Total liabilities
2023
$
(5,944,470)
(6,803,235)
(12,747,705)
2022
$
1,451,539
16,271,762
2
17,723,303
2022
$
(1,070,875)
(1,448,617)
(2,519,492)
71 | P a g e
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For The Year Ended 30 June 2023
27. Deposits
Restricted time deposit:
Indonesia Rupiah:
PT Bank Mandiri (Persero) Tbk
Security deposits:
Indonesian Rupiah
Total
2023
$
2021
$
2,929,882
391,675
32,671
2,962,553
54,905
446,580
Based on decision letter No. 191/37.06/DJB/2020 dated 5 February 2020, the Minister of Energy and Mineral
Resources has stipulated the PT Sorikmas Mining mine reclamation guarantee for year 2020-2024 amounts to
IDR39,948,496,132. As of 30 June 2023, PT Sorikmas Mining placed a restricted deposit for reclamation
guarantee amounting of IDR29,065,568,464 or equivalent to $2,929,882 with interest rate 2.25%-3.25% per
annum (30 June 2022: IDR 3,994,849,613 or equivalent to $391,675 with interest rate 3.25% per annum).
72 | P a g e
DIRECTORS’ DECLARATION
DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Sihayo Gold Limited, I state that:
1. In the opinion of the Directors:
(a) The financial statements, notes and the additional disclosures included in the Directors’ Report designated
as audited, of the Company and of the consolidated entity are in accordance with the Corporations Act
2001, including:
(i)
(ii)
giving a true and fair view of the Company’s and consolidated entity’s financial position as at
30 June 2023 and of their performance for the year ended on that date; and
complying with Accounting Standards and Corporations Regulations 2001; and
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
(c) The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
2. This declaration has been made after receiving the declarations required to be made to the Directors in
accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2022.
On behalf of the Board
Colin F Moorhead
Executive Chairman
28 September 2023
73 | P a g e
PO Box 1908
West 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 SIHAYO GOLD LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Sihayo Gold Limited, the Company and its subsidiaries, (“the Group”),
which comprises the consolidated statement of financial position as at 30 June 2023, the consolidated statement
of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, 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 Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110: Code of Ethics for Professional Accountants (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this report.
Material Uncertainty Related to Going Concern
Without modifying our audit opinion expressed above, attention is drawn to the following matter.
As referred to in Note 1(a) to the financial statements, the financial statements have been prepared on a going
concern basis. At 30 June 2023 the Group had cash and cash equivalents totalling $8,396,786, working capital
deficit of $3,277,365 and has incurred a loss before tax from continuing operations for the period of $9,275,739
The consolidated entity’s ability to continue operations is dependent upon the consolidated entity’s ability to
generate positive cashflows from its existing businesses or raise further equity. This indicates that a material
uncertainty exists that may cast significant doubt on the consolidated entity’s ability to continue as a going
concern.
Liability limited by a scheme approved under Professional Standards Legislation
The ability of the Group to continue as a going concern and meet its planned exploration, administration and
other commitments is dependent upon the Group raising further working capital and/or successfully exploiting
its exploration assets. In the event that the Group is not successful in recapitalising the Group and/or raising
further equity or successfully exploiting its exploration assets, the Group may not be able to meet its liabilities
as and when they fall due and the realisable value of the Group’s current and non-current assets may be
significantly less than book values.
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. This 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.
Key Audit Matters
How the matter was addressed in the audit
Capitalised exploration and evaluation
expenditure
As at 30 June 2023, capitalised exploration and
evaluation
to
$17,303,716 (refer to Note 6).
expenditure
amounted
The capitalised exploration and evaluation
expenditure is a key audit matter due to:
▪
▪
▪
The significance of
(approximately 53% of total assets);
the
total balance
level of
judgement
The
in
evaluating management’s application of the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources.
required
The greater level of audit effort to evaluate
the Group’s application of the requirement
of AASB 6 and assessment of impairment
indicators which
involved management
judgement.
Inter alia, our audit procedures included the following:
1. Assessing the management’s determination of
its areas of interest to ensure consistency with
the definition in AASB 6;
2. Assessing the Group’s accounting policy for
compliance with AASB 6;
3. Agreeing, on a sample basis, the capitalised
exploration and evaluation expenditure
incurred during
to supporting
these
documentation and assessing
expenditures incurred in accordance with the
Group’s
the
requirements of AASB 6;
accounting
the year
policy
and
that
4. Obtaining evidence that the Group has valid
rights to explore in the areas represented by
the capitalised exploration and evaluation
expenditure;
5. Evaluating that there had been no indictors of
impairment during the current period with
reference to the requirements of AASB 6; and
6. Assessing
disclosure
statements.
i.
the appropriateness of
in Note 6
the
financial
the
to
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group's annual report for the year ended 30 June 2023, but does not include the financial report and our
auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude 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 Group to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or 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 Group'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 Group 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 Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group 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 consolidated 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 15 to 19 of the directors’ report for the year ended
30 June 2023.
In our opinion, the Remuneration Report of Sihayo Gold 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)
Martin Michalik
Director
West Perth, Western Australia
28 September 2023
ADDITIONAL SHAREHOLDER INFORMATION
The following additional information dated 5 September 2023 is provided in compliance with the requirements
of the Australian Securities Exchange Limited.
1.
(a)
DISTRIBUTION OF LISTED ORDINARY SHARES AND OPTIONS
Analysis of numbers of shareholders by size of holding.
Distribution
1-1000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and above
Total
No. of
shareholders
Units
% off issued Capital
110
71
35
258
461
22,818
178,392
268,216
12,368,402
12,191,418,352
12,204,256,180
0.00%
0.00%
0.00%
0.10%
99.89%
100.00%
(b)
(c)
There were 577 shareholders holding less than a marketable parcel, with a total of 30,369,907
shares.
The percentage of the total of the twenty largest holders of ordinary shares was 92.78%.
2.
TWENTY LARGEST SHAREHOLDERS AND OPTION HOLDERS
Names
PROVIDENT MINERALS PTE LTD
SANTOSO KARTONO
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
EASTERN FIELDS DEVELOPMENTS LIMITED
PT SARATOGA INVESTAMA SEDAYA
SILVERCITY ENTERPRISE LIMITED
GOLDSTAR MINING ASIA RESOURCES (L) BHD
BNP PARIBAS NOMS PTY LTD UOBKH A/C R'MIERS
MR GAVIN ARNOLD CAUDLE
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD UOB KH PL AC
MR KENNETH RUDY KAMON
MR ANDREW PHILLIP STARKEY
UBS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
MS KUN JIANG
MR BEN QUENTIN GLEDHILL
RAJESH BALRAJ AHUJA &
TULIKA AHUJA JTWROS
MR GAVIN ARNOLD CAUDLE
GOLDSTAR ASIA MINING RESOURCES (L) BHD
Total
No. of shares
%
3,790,875,682
1,818,434,171
1,322,279,033
753,899,588
655,627,357
425,000,000
390,627,385
348,158,397
333,333,334
322,008,413
197,661,000
190,800,000
180,500,000
152,765,105
112,445,223
89,500,000
72,600,000
72,056,700
53,227,968
41,030,239
11,313,076,621
31.06%
14.90%
10.83%
6.18%
5.37%
3.48%
3.20%
2.85%
2.73%
2.64%
1.62%
1.56%
1.48%
1.25%
0.92%
0.73%
0.59%
0.59%
0.44%
0.34%
92.70%
78 | P a g e
ADDITIONAL SHAREHOLDER INFORMATION
3.
SUBSTANTIAL SHAREHOLDERS
An extract from the Company’s register of substantial shareholders is set out below:
Ordinary Shares Held
Name
Provident Minerals Pte Ltd and Gavin Caudle
Santoso Kartano
HSBC Custody Nominees (Australia) Limited
Eastern Field Developments Ltd
PT Saratoga Investama Sedaya Tbk
4.
VOTING RIGHTS
Number
Percentage
3,790,875,682
1,818,434,171
1,322,526,056
753,899,588
655,627,357
31.06%
14.90%
10.84%
6.18%
5.37%
The Company's share capital is of one class with the following voting rights:
(a)
Ordinary Shares
On a show of hands every shareholder present in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
(b)
Options
The Company's options have no voting rights.
5.
RESTRICTED SECURITIES
There are no ordinary shares on issue that have been classified by the Australian Securities Exchange Limited,
Perth as restricted securities.
6.
SECURITIES EXCHANGE LISTING
Sihayo Gold Limited shares are listed on the Australian Securities Exchange Limited. The home exchange is the
Australian Securities Exchange (Perth) Limited.
79 | P a g e
SUMMARY OF TENEMENTS HELD BY THE GROUP
FOR THE YEAR ENDED 30 JUNE 2023
Project Name Tenement
Date
Approval
Date
Expiry
Area
Equity
%
OROPA INDIAN RESOURCES
INDIA
Block D-7
PT SORIKMAS MINING
INDONESIA
Pungkut
96PK0042
SIHAYO GOLD LIMITED
WESTERN AUSTRALIA
Mt. Keith
M53/490
M53/491
22.01.00
N/A
4,600km2
31.05.96
N/A
66,200ha
9(1)
75
11.06.04
11.06.04
10.06.25
10.06.25
582ha
621ha
0(2)
0(2)
EXCELSIOR RESOURCES PTY LTD
Mulgabbie
ML28/364
25.03.09
NOTES
(1)
(2)
Option to increase interest to 18%
2% net smelter royalty
24.03.30
54.3ha
0(2)
80 | P a g e