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ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2023
Directors
David Quinlivan
Non-executive Chairman
Luke Tonkin
Managing Director
Kelvin Flynn
Non-executive Director
Rebecca Prain
Non-executive Director
Registered Office
Suite 4, Level 3, South Shore Centre
85 South Perth Esplanade
South Perth WA 6151
Share Register
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Telephone +61 3 9415 4000
Company Secretary
David Berg
Internet Address
www.silverlakeresources.com.au
Principal Office
ABN
Suite 4, Level 3, South Shore Centre
38 108 779 782
ASX Code:
SLR
85 South Perth Esplanade
South Perth WA 6151
Tel:
Fax:
+61 8 6313 3800
+61 8 6313 3888
Email:
contact@slrltd.com
Auditors
KPMG
235 St George’s Terrace
Perth WA 6000
Contents
Chairman & Managing Director's Report
Resources & Reserves Report
Directors’ Report
Directors’ Declaration
Auditor’s Independence Declaration
Independent Auditor's Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
ASX Additional Information
2
3
8
26
27
28
33
34
35
36
37
64
1
Chairman & Managing Director's Report
Dear Fellow Shareholder,
We are pleased to present the 2023 Annual Report. The 2023 financial year marked the
ninth consecutive year Silver Lake delivered annual sales guidance, this is particularly
pleasing and a credit to our team considering the continuation of a challenging
operating climate across the mining industry.
In FY23 Silver Lake delivered gold sales of 260,478 ounces and
copper sales of 1,325 tonnes copper at an AISC of A$1,941 per
ounce. FY23 sales were underpinned by the Western Australian
operations with a second consecutive year of record production
and sales from the high margin Deflector operation and Mount
Monger delivering another year of free cash flow with strong
performance from the underground operations.
At the newly acquired Sugar Zone operation, the first phase of
investment to upgrade core site infrastructure to provide the
foundations to improve operating performance commenced.
FY24 will see the next phase of the plan to improve operating
performance through the investment in a 93,000 metre drill
program to cover grade control, resource definition and advanced
exploration prospects on the large, prospective land package.
Silver Lake believes there is a significant opportunity at Sugar
Zone through the application of more efficient operating practices
and further discovery, to reset the operation.
For FY23 Silver Lake reported a statutory Net Profit after Tax
(NPAT) of $31 million, which included a non-cash tax expense of
$28 million. FY23 Earnings before Interest, Tax, Depreciation and
Amortisation (EBITDA) was $248 million at an EBITDA margin of
35%, with the established Australian operations delivering an
EBITDA margin of 46%. Silver Lake ended FY23 with cash and
bullion of $333 million with no debt.
Silver Lake’s Mineral Resources at 30 June 2023 were 6.2 million
ounces with Ore Reserves of 1.4 million ounces. All of Silver
Lake’s Mineral Resources and Ore Reserves are located within
established mining centres and provide a strong platform for
further Ore Reserve conversion and Mineral Resource growth at all
operations.
Silver Lake will make a significant investment in exploration
through FY24, with $43 million to be invested across the
operations, demonstrating Silver Lake’s confidence in the
continued low capital intensity organic growth potential to
leverage the significant installed infrastructure across all its
operations.
acquisition of a strategic ~11% shareholding in Red 5 Limited,
which owns the King of Hills operation and an established broader
footprint in the Leonora district in Western Australia.
Our FY24 sales guidance of between 210,000 to 230,000 ounces
represents consistent year on year output from the Australian
operations at an AISC of A$1,850 to A$2,050 per ounce.
Silver Lake’s strong organically generated financial position and
disciplined capital allocation framework enables the Company
to pursue its margin over ounces operating strategy, with the
flexibility to pursue medium to long term value maximisation of its
assets to deliver growth. All exploration and capital expenditure
will continue to be internally funded through operating cashflow
and the continued free cash flow generation through FY24 has
Silver Lake well positioned to prudently execute a “through the
cycle” growth strategy for the benefit of shareholders.
On behalf of the Board we would like to thank the Company’s
employees for their dedicated service and resilience over the past
12 months, and without whom the achievements of the past year
would not have been possible.
FY20 sales guidance is 215,000 to 230,000 ounces with the AISC expected to average A$1,375-A$1,450 per ounce
for the full year. The company will continue to invest in exploration with $18 million budgeted across the group
and will focus on advancing high priority targets at Mount Monger through to an investment decision and
defining Resource extensions and additional near mine Resources at Deflector.
We would also like to acknowledge our suppliers, contractors and
shareholders who continue to support our strategy of delivering
today, developing for tomorrow and discovering for the future.
Our strong balance sheet and cash flow generation positions the Company to rapidly progress the pipeline of
advanced exploration targets and continue to refresh the pipeline of opportunities to compete for capital at
Mount Monger, Deflector and externally as we continue to build on the success and momentum generated in
FY19.
On behalf of the Board we would like to thank the Company’s employees for their hard work and commitment
over the past 12 months, and without whom, the achievements of the past year would not have been possible.
We would also like to acknowledge our suppliers, contractors and shareholders who continue to support our
strategy of delivering today, developing for tomorrow and discovering for the future.
Luke Tonkin
Managing Director
Luke Tonkin
Managing Director
Staying true to our strategy to deliver a larger, longer life and
lower cost business Silver Lake made an ultimately unsuccessful
offer to acquire the Gwalia operations of St Barbara Limited in
FY23. Our continued commitment to create a “larger, longer life
and lower cost” business has been demonstrated with Silver Lake’s
David Quinlivan
David Quinlivan
Non-Executive Chairman
Non-Executive Chairman
2 Silver Lake Resources Limited Annual Report 2023
Resources & Reserves Report
Mineral Resource Statement as at 30 June 2023
The Company’s total Measured, Indicated and Inferred Mineral Resources at 30 June 2023 are 43.1 million tonnes at 4.5 grams per tonne
of gold containing 6.2 million ounces of gold, including 2.4 million tonnes at 0.6 percent copper containing 14,400 tonnes of copper. The
Mineral Resources as at 30 June 2023 are estimated after allowing for depletion during FY2023.
Measured Mineral
Resources
Indicated Mineral
Resources
Inferred Mineral Resources
Total Mineral Resources
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
June 2023
Mount Monger
Daisy Mining Centre
608
16.3
319
885
19.0
540
1,576
18.1
Daisy Complex
83
22.5
Mirror/Magic
493
2.5
60
39
-
-
1,003
1,501
37
-
-
-
-
Lorna Doone
Costello
Sub Total
576
5.3
99
3,149
Mount Belches Mining Centre
Maxwells
Cock-eyed Bob
Santa
Rumbles
Anomaly A
154
295
-
-
-
5.3
5.5
-
-
-
26
52
-
-
-
1,443
1,560
7,015
1,722
-
2.3
2.0
1.7
4.9
4.0
4.0
2.8
1.9
-
74
98
2
682
785
237
493
2,589
185
1,752
199
724
629
1,096
104
298
-
-
2.5
2.0
2.0
7.9
3.4
4.6
3.6
2.2
-
55
2,178
51
2,286
15
274
2.4
2.0
1.9
919
168
149
17
661
6,314
6.2
1,253
194
3,349
108
2,579
127
8,111
21
2,020
-
-
3.8
4.3
2.9
1.9
-
405
359
756
125
-
Sub Total
449
5.4
78
11,740
3.0
1,117
3,870
3.6
450
16,059
3.2
1,645
Aldiss Mining Centre
Karonie
Tank/Atreides
French Kiss
Harrys Hill
Italia/Argonaut
Spice
Aspen
Sub Total
Randalls Mining Centre
Lucky Bay
Randalls Dam
Sub Total
Mount Monger
Stockpile
Sub Total
-
-
-
-
-
-
-
-
13
-
13
2,384
2,384
Mount Monger Total
3,422
-
-
-
-
-
-
-
-
4.8
-
4.8
1.2
1.2
2.4
-
-
-
-
-
-
-
-
2
-
2
90
90
2,493
1,107
1,112
479
531
136
112
5,970
34
95
129
-
-
1.9
2.3
2.2
2.2
1.6
1.6
1.7
2.0
4.6
2.0
2.7
-
-
150
1,150
82
80
34
27
7
6
234
189
415
19
296
139
386
2,442
5
6
11
-
-
8
24
32
-
-
1.6
1.6
2.0
2.3
1.6
1.4
1.6
1.7
7.8
1.3
2.9
-
-
60
3,643
12
1,341
12
1,301
31
1
13
7
894
550
432
251
136
8,412
2
1
3
-
-
55
119
174
2,384
2,384
1.8
2.2
2.2
2.3
1.6
1.4
1.6
1.9
5.1
1.8
2.9
1.2
1.2
210
94
92
65
28
20
13
522
9
7
16
90
90
269
20,988
3.0
2,007
8,933
4.4
1,250
33,343
3.3
3,526
3
Resources & Reserves Report
Measured Mineral
Resources
Indicated Mineral
Resources
Inferred Mineral Resources
Total Mineral Resources
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
352
278
630
-
130
130
760
-
2
2
14.2
161
1,095
11.9
420
707
9.0
204
2,154
11.3
785
3.0
9.3
-
2.1
2.1
8.0
-
5.8
5.8
27
-
-
-
-
-
-
278
3.0
188
1,095
11.9
420
707
9.0
204
2,432
10.4
27
812
-
9
9
579
9.9
184
408
10.1
133
987
10.0
317
-
579
-
9.9
-
-
-
-
130
184
408
10.1
133
1,117
197
1,674
11.2
604
1,115
9.4
337
3,549
2.1
9.1
9.9
9
326
1,138
-
0
0
4,391
7.8
1,105
1,856
7.1
423
6,247
7.6
1,528
-
-
-
-
4,391
7.8
1,105
1,856
-
7.1
-
2
5.8
0
423
6,249
7.6
1,528
June 2023
Deflector
Deflector
Stockpile
Sub Total
Rothsay
Rothsay
Stockpile
Sub Total
Deflector Total
Sugar Zone
Sugar Zone
Stockpile
Sugar Zone Total
Total Gold
Mineral Resources
4,184
3.5
466
27,053
4.3
3,716
11,904
5.3
2,010
43,141
4.5
6,192
Measured Mineral
Resources
Indicated Mineral
Resources
Inferred Mineral Resources
Total Mineral Resources
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
352
278
1.0%
0.2%
3,600
1,095
0.6%
6,900
707
0.5%
3,300
2,154
0.6%
13,800
600
-
-
-
-
-
-
278
0.2%
600
630
0.7%
4,200
1,095
0.6%
6,900
707
0.5%
3,300
2,432
0.6%
14,400
June 2023
Deflector
Deflector
Stockpile
Sub Total
Total Copper
Mineral Resources
630
0.7%
4,200
1,095
0.6%
6,900
707
0.5%
3,300
2,432
0.6% 14,400
4 Silver Lake Resources Limited Annual Report 2023
Resources & Reserves Report
Ore Reserve Statement as at 30 June 2023
The total Proved and Probable Ore Reserves at 30 June 2023 are 14.9 million tonnes at 3.0 grams per tonne gold containing 1.44 million
ounces of gold, including 1.6 million tonnes at 0.2 percent Cu containing 2,800 tonnes of copper. The Ore Reserves at 30 June 2023 are
estimated after allowing for depletion over FY2023. Mount Monger Ore Reserves were estimated using a gold price of A$2,200/oz for
Tank South, Santa Underground and Flora Dora, A$2,300/oz for Maxwells, A$2,400/oz for Daisy Complex and Cock-eyed Bob, A$2,600/
oz for Santa Open Pit and A$2,800/oz for Rumbles. Sugar Zone Ore Reserves were estimated using C$2,300/oz. Deflector Ore Reserve
NSR was estimated using A$2,400/oz gold price and A$11,900/t copper price.
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
Tonnes
('000s)
Grade
(g/t Au)
Ounces
(Au '000s)
June 2023
Mount Monger
Aldiss Mining Centre
Tank
French Kiss
Total Aldiss Mining Centre
Daisy Complex
Daisy Complex
Total Daisy Mining Centre
Mount Belches Mining Centre
Cock-eyed Bob
Rumbles
Santa
Maxwells
Total Mount Belches
Mount Monger Stockpiles
Total Mount Monger
Deflector
Deflector OP
Deflector UG
Stockpile
Total Deflector
Rothsay
Rothsay
Stockpile
Total Rothsay
Total Deflector Region
Sugar Zone
Sugar Zone
Stockpile
Sub Total
-
-
-
100
100
25
-
-
20
45
2,384
2,530
-
255
278
533
-
130
130
663
-
2
2
Total Gold Ore Reserves
3,193
-
-
-
6.9
6.9
3.6
-
-
3.2
3.5
1.2
1.4
-
5.4
3.0
4.1
-
2.1
2.1
3.7
-
5.8
5.8
1.9
-
-
-
22
22
3
-
-
2
5
90
118
-
44
27
71
-
9
9
80
-
0
0
419
489
909
378
378
194
316
5,538
154
6,202
-
7,489
140
918
-
1,058
353
-
353
1,411
2,872
-
2,872
197
11,772
3.0
1.9
2.4
7.7
7.7
3.9
1.3
1.7
3.5
1.8
-
2.2
3.1
4.3
-
4.2
6.5
-
6.5
4.7
5.5
-
5.5
3.3
41
30
71
94
94
24
13
419
489
909
478
478
219
316
303
5,538
17
174
358
6,247
-
2,384
522
10,018
14
140
128
1,174
-
278
142
1,592
74
-
74
353
130
483
216
2,075
506
2,872
-
2
506
2,874
1,244
14,965
3.0
1.9
2.4
7.5
7.5
3.8
1.3
1.7
3.5
1.8
1.2
2.0
3.1
4.6
3.0
4.2
6.5
2.1
5.3
4.4
5.5
5.8
5.5
3.0
41
30
71
116
116
27
13
303
19
363
90
640
14
172
27
213
74
9
82
295
506
0
506
1,441
5
Resources & Reserves Report
June 2023
Deflector
Deflector OP
Deflector UG
Stockpile
Total Deflector
Total Copper Ore Reserves
Proved Ore Reserves
Probable Ore Reserves
Total Ore Reserves
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
Tonnes
('000s)
Grade
(% Cu)
Copper
(Tonnes)
-
255
278
533
533
0.0%
0.1%
0.2%
0.2%
0.2%
-
400
600
900
900
140
918
-
1,058
1,058
0.3%
0.2%
0.0%
0.2%
0.2%
400
140
1,400
1,174
-
278
1,800
1,592
1,800
1,592
0.3%
0.1%
0.2%
0.2%
0.2%
400
1,800
600
2,800
2,800
NOTES TO MINERAL RESOURCE AND ORE RESERVE TABLES:
1. Mineral Resources are reported inclusive of Ore Reserves.
2. Data is rounded to thousands of tonnes, thousands of ounces gold, and hundreds of tonnes copper. Discrepancies in totals may
occur due to rounding.
3. All Mineral Resource and Ore Reserve estimates are produced in accordance with the 2012 Edition of the Australian Code for
Reporting of Mineral Resources and Ore Reserves (the 2012 JORC Code).
4. The Table 1 Checklists of Assessment and Reporting Criteria relating to the updated 2012 JORC Code Mineral Resources and Ore
Reserves estimates for significant projects that are reported for the first time or when those estimates have materially changed are
contained in the Appendix to this announcement.
MINERAL RESOURCE AND ORE RESERVE GOVERNANCE AND INTERNAL CONTROLS
Silver Lake ensures that the Mineral Resource and Ore Reserve estimates quoted are subject to governance arrangements and internal
controls activated at a site level and at the corporate level. Internal reviews of Mineral Resource and Ore Reserve estimation procedures
and results are carried out through a technical review team which is comprised of highly competent and qualified professionals. These
reviews have not identified any material issues. The Company has finalised its governance framework in relation to the Mineral Resource
and Ore Reserve estimates in line with the conduct of its business. Silver Lake reports its Mineral Resources and Ore Reserves on an
annual basis in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the
JORC Code) 2012 Edition (except where stated). Mineral Resources are quoted inclusive of Ore Reserves. Competent Persons named by
Silver Lake are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists
and qualify as Competent Persons as defined in the JORC Code. The Mineral Resources and Ore Reserves statements are based
upon, and fairly represent, information and supporting documentation prepared by the Competent Persons named below. The Mineral
Resources statement as a whole, as presented in this Annual Report, has been approved by Antony Shepherd a Competent Person who
is a member of The Australasian Institute of Mining and Metallurgy. The Ore Reserves statement as a whole, as presented in this Annual
Report, has been approved by Sam Larritt a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy.
6 Silver Lake Resources Limited Annual Report 2023
Resources & Reserves Report
COMPETENT PERSON’S STATEMENT
The information in this Annual Report that relates to the Mineral Resources for the Harrys Hill, Santa, Cock-eyed Bob, Maxwells, Daisy
Combined, Mirror/Magic, Tank/Atreides, Spice, Aspen, French Kiss, Italia/Argonaut, Lorna Doone, Rumbles, Costello, Randalls Dam
and Karonie deposits is based upon information compiled by Aslam Awan, a Competent Person who is a member of The Australasian
Institute of Mining and Metallurgy. Mr Awan is a full-time employee of the Company. Mr Awan 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 Awan consents to the inclusion in the Annual Report of matters based on his information in the form and context in which it appears.
The information in this Annual Report that relates to the Mineral Resources for the Deflector deposit is based upon information compiled
by David Buckley, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Buckley is a full-time
employee of the Company. Mr Buckley 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 Buckley consents to the inclusion in the Annual
Report of matters based on his information in the form and context in which it appears.
The information in this Annual Report that relates to the Mineral Resources for the Rothsay and Sugar Zone deposits is based
upon information compiled by Kane Hutchinson, a Competent Person who is a member of The Australasian Institute of Mining and
Metallurgy. Mr Hutchinson is a full-time employee of the Company. Mr Hutchinson 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 Hutchinson consents to the inclusion in the Annual Report of matters based on his information in the form and context in which
it appears.
The information in this Annual Report that relates to Ore Reserves for Deflector, Daisy, Maxwells, Cock-eyed Bob, Santa, Rumbles, Tank
and French Kiss is based upon information compiled by Sam Larritt, a Competent Person who is a member of The Australasian Institute
of Mining and Metallurgy. Mr Larritt is a full-time employee of the Company. Mr Larritt 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
Larritt consents to the inclusion in the Annual Report of matters based on his information in the form and context in which it appears.
The information in this Annual Report that relates to Ore Reserves for Rothsay and Sugar Zone is based upon information compiled
by Jigar Patel, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Patel is a full-time
employee of the Company. Mr Patel 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 Patel consents to the inclusion in the Annual Report
of matters based on his information in the form and context in which it appears.
All other information in this Annual Report relating to Mineral Resources is based on information compiled by Antony Shepherd, a
Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Shepherd is employed by Silver Lake
Resources. Mr Shepherd 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 Shepherd consents to the inclusion in the Annual Report of
matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS
This Annual Report may contain forward looking statements that are subject to risk factors associated with gold exploration, mining,
and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected
by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including
but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, Reserve estimations, loss of
market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market
conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.
Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be
relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties and other factors,
many of which are outside the control of Silver Lake. Past performance is not necessarily a guide to future performance and no
representation or warranty is made as to the likelihood of achievement or reasonableness of any forward looking statements or other
forecast.
7
Directors’ Report
Directors’ Report
The Directors submit their report, together with the consolidated financial statements of
the Group comprising Silver Lake Resources Limited (the Company or Silver Lake) and its
subsidiaries for the year ended 30 June 2023.
DIRECTORS
The directors of the Company at any time during or since the
end of the financial year were:
DAVID QUINLIVAN
BApp Sci, Min Eng, Grad Dip Fin Serv, FAusImm, FFINSA, MMICA
Non-executive Chairman
Appointed Non-executive Director on 25 June 2015 and
Chairman on 30 September 2015
Mr Quinlivan is a Mining Engineer with significant mining and
executive leadership experience having 11 years of service at
WMC Resources Ltd, followed by a number of high-profile mining
development positions. Since 1989, Mr Quinlivan has served as
Principal of Borden Mining Services, a mining consulting services
firm, where he has worked on multiple mining projects in various
capacities. He has previously served as Chief Executive Officer
of Sons of Gwalia Ltd (post appointment of administrators), as
Chief Operating Officer of Mount Gibson Iron Ltd and President
and Chief Executive Officer of Alacer Gold Corporation. Mr
Quinlivan is currently non-executive Chairman of Dalaroo Metals
and served as a Non-Executive Director of Ora Banda Mining
Limited until 28 September 2022.
Mr Quinlivan has held no other directorships in public listed
companies in the last three years.
LUKE TONKIN
BEng, Min Eng, MAusImm
Managing Director
Appointed 14 October 2013
Mr Tonkin is a Mining Engineering graduate of the Western
Australian School of Mines and his extensive operations and
management career spans over 35 years within the minerals and
mining industry. He is a past Chairman of the Western Australian
School of Mines Advisory Board. Mr Tonkin has held senior
management roles at WMC Resources Ltd, Sons of Gwalia Ltd
and was Managing Director of Mount Gibson Iron Ltd for 7 years
and Chief Executive Officer and Managing Director of Reed
Resources Ltd.
Mr Tonkin joined the Company in October 2013 as Director of
Operations and was appointed as Managing Director on
20 November 2014. Mr Tonkin has held no other directorships in
public listed companies in the last three years.
KELVIN FLYNN
B.Com, CA
Non-executive Director
Appointed 24 February 2016
Mr Flynn is a qualified Chartered Accountant with over
30 years’ experience in investment banking and corporate
advisory roles including private equity and special situations
investments in the mining and resources sector. He has held
various leadership positions in Australia and Asia, having
previously held the position of Executive Director/Vice President
with Goldman Sachs and Managing Director of Alvarez & Marsal
in Asia. He has worked in complex financial workouts, turnaround
advisory and interim management. Mr Flynn was previously a
director of privately held Global Advanced Metals Pty Ltd. Mr
Flynn is a Non-Executive Director of Mineral Resources Limited
and is Managing Director of the specialist alternative funds
manager Harvis, which focuses on investments and financing in
the real estate and real assets sectors.
Mr Flynn has held no other directorships in public listed
companies in the last three years.
REBECCA PRAIN
BSc (Geology)
Non-executive Director
Appointed 17 August 2021
Ms Prain has 30 years’ experience in the mining industry as a
geologist and mining services provider. She has held a variety of
technical and management roles throughout her career and is
currently the Managing Director of Cube Consulting, a specialist
resource estimation and mining engineering services group
that provides geological and mining engineering expertise and
systems. Ms Prain’s experience includes technical and advisory
roles to multiple Australian, North American and Southeast Asian
mining companies, with a particular focus on the implementation
and use of specialist resource estimation and mining software.
Ms Prain has held no other Directorships in public listed
companies in the last three years.
8 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
COMPANY SECRETARY
David Berg
LLB BComm (General Management)
Appointed 4 September 2014
Mr Berg has worked both in the resources industry and as a lawyer in private practice, advising on corporate governance, M&A, capital
raisings, commercial contracts and litigation. Mr Berg has previously held company secretarial and senior legal positions with Mount
Gibson Iron Limited and Ascot Resources Limited and legal roles with Atlas Iron Limited and the Griffin Group. Prior to this Mr Berg
worked in the corporate and resources groups of Herbert Smith Freehills and King & Wood Mallesons.
COMMITTEE MEMBERSHIP
As at the date of this report, the Board has an Audit Committee and a Nomination & Remuneration Committee. Those members acting
on the committees of the Board during the year were:
Audit Committee
Kelvin Flynn (Chair)
Rebecca Prain
David Quinlivan
Term
Full Year
Full Year
Full Year
Nomination & Remuneration Committee (NRC)
Kelvin Flynn
Rebecca Prain (Chair)
David Quinlivan
Term
Full Year
Full Year
Full Year
DIRECTORS’ MEETINGS
The number of Directors’ meetings (including committee meetings) held during the year and the number of meetings attended by each
Director are as follows:
Directors’ Meetings
Audit Committee
Nomination & Remuneration
Committee
Held
Attended
Held
Attended
Held
Attended
David Quinlivan
Luke Tonkin
Kelvin Flynn
Rebecca Prain
11
11
11
11
11
11
11
11
2
2
2
2
2
2
2
2
2
2
2
2
DIRECTORS’ INTERESTS
The relevant interest of each Director in the share capital at the date of this report is as follows:
Name of Director
David Quinlivan
Luke Tonkin
Kelvin Flynn
Rebecca Prain
Fully Paid Ordinary Shares
Unlisted Performance Rights
-
764,186
-
-
-
1,346,374
-
-
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were exploration, mine development, mine operations and the sale of gold and
gold/copper concentrate in Australia and Canada.
9
Directors’ Report
OPERATING OVERVIEW
Silver Lake is a multi-asset gold company operating in the Eastern Goldfields and Midwest regions of Western Australia and in
Northern Ontario, Canada.
The Group’s three operations, Deflector, Mount Monger and Sugar Zone, offer significant potential for organic growth from their
portfolios of highly endowed and prospective tenement holdings.
The Group achieved production of 261,604 ounces gold and 1,483 tonnes copper for the year, driven by record performance from
Deflector, strong operational performance at Mount Monger and inclusion of Sugar Zone for a full financial year. The production result
was underpinned by record production results from the Deflector Region and development of a new underground mine at Mount
Monger, Tank South, consistent with Silver Lake’s proven invest and yield strategy.
GROUP FINANCIAL OVERVIEW
The Group recorded a net profit after tax for the year of $30.8 million (FY22: $77.7 million) and an EBITDA (before significant items) of
$248.4 million (FY22: $267.6 million). This resulted in an EBITDA margin for the year of 35% (FY22: 42%). The Board considers that EBITDA, a
non-IFRS measure, is an important metric in assessing the underlying operating performance of the Group. A reconciliation between the
statutory profit after tax and the Group’s EBITDA is tabled below.
Revenue for the year totalled $719.6 million from the sale of 260,372 ounces of gold and 1,325 tonnes copper at an average realised gold
sale price of A$2,694/oz and A$12,812/t of copper, compared with revenue of $634.6 million from 251,735 ounces of gold and 907 tonnes
copper in FY22. The increase in revenue was driven by record sales at Deflector, strong operational performance from Mount Monger, a
full year of contribution from Sugar Zone and improved commodity prices over the past year.
Cost of sales increased to $639.0 million in the year (FY22: $518.5 million) reflecting a $22.2 million increase in depreciation and
amortisation charge, increased operating costs associated with the inclusion of Sugar Zone for a full year and increases in input costs
due to impact of supply chains and general inflationary pressures driving operating costs higher. The Group All-in Sustaining Cost (AISC)
for the year increased to A$1,941/oz (FY22: A$1,756/oz).
A non-cash tax expense of $28.5 million has been recorded in FY23 (FY22: $37.7 million). The current year taxable expense will be offset
against available tax losses and hence no tax is payable.
The reconciliation between the statutory profit after tax and the Group’s EBITDA (excluding significant items) is outlined in the table
below:
Reconciliation of Statutory Profit after Tax to EBITDA
(excluding significant items) - unaudited
Statutory profit after tax:
Adjustments for:
Depreciation and amortisation
Income tax expense
Net finance (income)/costs (includes change in value of listed investments)
Business development adjustments (FY22 includes gain on bargain purchase)
Exploration expensed
Other
EBITDA (excluding significant items)1
1 Non-IFRS measure
30 June 2023
30 June 2022
$’000
30,836
190,089
28,489
(6,876)
1,229
5,044
(412)
248,399
$’000
77,681
167,880
37,654
8,075
(27,924)
3,187
1,007
267,560
Cash and bullion at 30 June 2023 was $332.8 million (30 June 2022: $313.8 million). In addition, the Group had $11.5 million of gold in
circuit and concentrate on hand measured at cost and listed investments of $12.8 million at year end. Key cash flow movements for FY23
included:
· Net cash inflow from operating activities of $241.4 million
· Acquisition of plant and equipment of $34.4 million
·
·
$130.3 million on mine development and $24.8 million on exploration
$27.6 million on repayment of finance leases primarily attributed to right of use assets
· Cash outflow associated with the share buy-back of $3.0 million, and
·
Interest inflows of $6.4 million.
During the year the Company reduced its stockpile ore inventory balance by 0.5 million tonnes, supplementing underground ROM ore
with stockpile feed at Mount Monger. At 30 June 2023, the Group held 2.9 million ore tonnes containing 130,000 ounces of gold valued at
a cost of $107.7 million on the Company’s balance sheet (FY22: $104.5 million).
10 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
The value of property, plant and equipment decreased by $12.0 million in FY23 to a balance of $235.7 million. The movement included
capital additions of $46.6 million, which included the new mining fleet at Sugar Zone and right-of-use assets recognised as leases under
AASB16 Leases of $12.7 million. Depreciation recognised during the year amounted to $71.6 million.
Deferred tax assets increased by $12.7 million to $77.8 million at 30 June 2023, with the increase due to the recognition of temporary
differences between accounting and tax treatment of assets and liabilities and partially offset by the utilisation of tax losses. At 30 June
2023 the Company has $240,326,000 (FY22: $303,846,000) of tax losses remaining for offset against future taxable profits in Australia
and $209,434,000 (FY22: $130,255,000) of Canadian tax losses that are available for offset against future taxable profits in Canada.
As at 30 June 2023, Silver Lake’s forward gold hedging program totalled 110,000 ounces, to be delivered over the next 30 months at an
average forward price of A$3,007/oz.
OVERVIEW OF THE MOUNT MONGER OPERATION
The Mount Monger Operation is located approximately 50km southeast of Kalgoorlie and is a highly endowed gold camp with
an established track record of gold production. Through exploration and development Mount Monger has transitioned to larger,
longer life Mining Centres which have delivered multiple high-grade ore sources and increased production transparency. The three
independent and self-sufficient Mining Centres at Mount Monger are the Daisy Complex, Mount Belches and Aldiss Mining Centres.
These Mining Centres feed the 1.3Mtpa Randalls mill.
Mount Monger Mining
Ore mined during the year totalled 497,688 tonnes at a grade of 4.3 g/t Au for 69,431 contained ounces (FY22: 1,701,915 tonnes at a grade
of 2.4 g/t Au for 131,328 contained ounces), all sourced from the Daisy Complex and Tank South underground mines.
The Daisy Complex produced 268,955 tonnes at 4.8 g/t for 41,503 contained ounces, with production primarily sourced from Haoma
West and Easter Hollows, which accounted for 80% of tonnes mined for the year. In FY24, ore from the Daisy Complex will be
predominantly sourced from the Haoma West, Lower Prospect and the Easter Hollows lodes.
The Mount Belches underground mines Maxwells and Cock-eyed Bob (“CEB”), produced 18,826 tonnes at 2.8 g/t for 1,622 contained
ounces, with mining suspended in early FY23 to allow Silver Lake to preserve the value of the Maxwells and CEB Mineral Resources and
Ore Reserves and complete infill and extensional drilling beyond Mineral Resource limits in anticipation of a return to more normalised
operating and supply chain conditions in Western Australia.
Development of the Tank South underground mine at the Aldiss Mining Centre commenced in July 2022, with all LOM development
completed during the year. The Tank South mine produced 209,907 tonnes at 3.9 g/t for 26,306 contained ounces, with stoping
scheduled to continue throughout FY24.
The commencement of open pit mining at Santa within the Mount Belches Mining Centre in January 2024 will represent the first open pit
mining at Mount Belches since 2016 and will add to the enviable stockpile position, providing further baseload feed to the Randalls mill
from FY25.
Mount Monger Processing
Ore milled for the period totalled 1,275,326 tonnes at 2.6 g/t for 95,559 recovered ounces (FY22: 1,256,338 tonnes at 3.0 g/t for 112,384
recovered ounces). Mill grade was 14% lower than the prior year following suspension of production from Maxwells and CEB in early FY23,
resulting in a greater portion of lower grade stockpile feed in the current year mill blend. Mount Monger stockpiles at 30 June 2023
decreased to ~2.4 million tonnes containing ~90,500 ounces (30 June 2022: ~3.1 million tonnes containing ~123,000 ounces).
Silver Lake will continue to maintain an iterative approach to mine and mill feed scheduling beyond FY24, continuing to prioritise highest
returning and cash generative operations to preserve ore body optionality and margin in the prevailing operating climate. Exploration
success has created a pipeline of projects at Mount Monger to further leverage on the established infrastructure and enhance mine
life visibility. Re-optimisation of pit shells of existing Mineral Resources has identified potential open pits proximal to the Santa open
pit, including the Rumbles and Flora Dora prospects. Further opportunities for inclusion in the medium term mining schedule include the
recommencement of underground mining at Mount Belches.
Mining and production statistics for the Mount Monger Operation for the year ended 30 June 2023 are detailed in Table 1 and Table 2.
OVERVIEW OF THE DEFLECTOR REGION
The Deflector Region Operation is in the Midwest region of Western Australia and comprises the Deflector and Rothsay underground
mines and the Deflector mill. FY23 mine production delivered a 23% year on year increase, generating a stockpile of 30,000 ounces gold
by year end with strong contributions from both underground ore sources.
Deflector Mining
Deflector Region mine production for the year totalled 1,065,446 tonnes at 4.6 g/t gold and 0.2% copper for 159,109 contained ounces
gold (FY22: 799,524 tonnes at 5.0 g/t gold and 0.1% copper for 129,403 contained ounces gold).
Production was sourced from the Deflector Main and Deflector South West underground lodes and the secondary high grade ore
source at Rothsay underground. Approximately 80% and 82% of mined ore tonnes and ounces respectively were sourced from Deflector
underground.
11
Directors’ Report
Deflector Processing
Deflector mill throughput was 731,574 tonnes at 5.6 g/t gold and 0.3% copper (FY22: 751,021 tonnes at 5.4 g/t gold and 0.2% copper).
Total gold recovery was 96.7% with copper recovery of 82.5%. FY23 production set an annual record of 127,069 ounces gold and
1,483 tonnes copper (FY22:124,602 ounces gold and 991 tonnes copper) which underpinned annual record gold sales of 124,553 ounces
and 1,325 tonnes copper (FY22: gold sales 123,099 ounces and 907 tonnes copper).
Lower year-on-year mill throughput was offset by higher feed grade with gold recovery consistent at 96.7%. Concentrate production for
FY23 totalled 9,414 tonnes at an average gold grade of 91 g/t gold and 16% copper.
At 30 June 2023, Deflector regional ore stocks totalled ~490,000 tonnes at 2.5 g/t gold (30 June 2022: 153,000 tonnes at 1.9 g/t gold).
Mining and production statistics for the Deflector Region for the year ended 30 June 2023 are detailed in Table 1 and Table 2.
OVERVIEW OF THE SUGAR ZONE OPERATION
The Sugar Zone Operation is in an established mining province of Northern Ontario, Canada, approximately 30km north of White River or
midway between Thunder Bay and Sault St. Marie. Mining at Sugar Zone commenced in 2019, with Silver Lake acquiring the operation in
February 2022 following the acquisition of Harte Gold Corp (“Harte Gold”). Following completion of the acquisition in February 2022,
Silver Lake commenced a review of operations at the Sugar Zone mine with the objective of delivering material operational
improvements and a low capital intensity growth strategy to leverage the installed infrastructure and current Mineral Resource.
Following the completion of essential site based capital projects in FY23, operational activities in FY24 will focus on exploration and
include the development of three dedicated exploration drives. Sugar Zone's site logistics network will also be enhanced throughout
FY24, with mining and processing to be idled. Silver Lake’s investment in exploration is designed to deliver a step change in ore body
knowledge and begin unlocking the potential of the extensive resource base and underexplored land package. The enhancement in site
logistics will include the relocation of the White River camp to Sugar Zone, effectively increasing available shift duration and mitigating
the risks associated with personnel transport to and from site.
Sugar Zone Mining
Sugar Zone mine production for the period totalled 234,671 tonnes at 5.1 g/t gold for 38,659 contained ounces gold (FY22: 91,519 tonnes
at 5.4 g/t gold for 15,812 contained ounces gold).
Mine production for the year was impacted by a shortfall in development metres, predominantly driven by manning shortages,
equipment availability of the aged fleet and a prioritisation of site resources to capital projects.
The idling of mining activities in FY24 will provide Silver Lake with the opportunity to “reset” the mine and complete the necessary grade
control and extensional drilling programs. The step change in data will allow Silver Lake to effectively plan and resource the Sugar Zone
operation and establish the foundations for a higher margin, long life operation utilising the recently acquired new underground mining
fleet to implement a mechanised system of work with enhanced site logistics upon recommencement of mining activities.
Sugar Zone Processing
Sugar Zone mill throughput for the period was 259,478 tonnes at 4.9 g/t gold for 38,976 recovered ounces (FY22: 89,741 tonnes at 5.5 g/t
gold for 14,901 recovered ounces).
Mining and production statistics for the Sugar Zone Operation for the period ended 30 June 2023 are detailed in Table 1 and Table 2.
12 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
GROUP MINING AND PRODUCTION STATISTICS
Mount Monger Mining
Underground
Ore mined
Mined grade
Contained gold
Open Pit
Ore mined
Mined grade
Contained gold
Deflector Mining
Underground
Ore mined
Mined grade
Contained gold
Copper grade
Contained copper
Rothsay Mining
Underground
Ore mined
Mined grade
Contained gold
Sugar Zone Mining1
Underground
Ore mined
Mined grade
Contained gold
Group Mining
Total ore mined
Mined grade
Contained gold
Copper grade
Contained copper
Units
Tonnes
g/t Au
Oz
Tonnes
g/t Au
Oz
Tonnes
g/t Au
Oz
%
Tonnes
Tonnes
g/t Au
Oz
Tonnes
g/t Au
Oz
Tonnes
g/t Au
Oz
%
Tonnes
FY23
497,688
4.3
69,431
-
-
-
846,311
4.8
130,055
0.2%
2,046
219,135
4.1
29,054
234,671
5.1
38,659
1,797,805
4.6
267,199
0.2%
2,046
1Sugar Zone physicals for FY22 are from the date of acquisition, 18 February 2022
Table 1
FY22
669,349
3.9
83,265
1,032,566
1.4
48,063
586,867
5.3
99,697
0.2%
1,114
212,657
4.3
29,706
91,519
5.4
15,812
2,592,958
3.3
276,543
0.2%
1,114
13
Directors’ Report
Mount Monger Processing
Ore milled
Head grade
Recovery
Gold produced
Gold sold
Deflector Processing
Ore milled
Gold grade
Copper grade
Gold recovery
Copper recovery
Gold produced
Gold sold
Copper recovered
Copper sold
Sugar Zone Processing1
Ore milled
Head grade
Recovery
Gold produced
Gold sold
Group Processing
Ore milled
Gold grade
Copper grade
Gold produced
Gold sold
Copper recovered
Copper sold
Units
Tonnes
g/t Au
%
Oz
Oz
Tonnes
g/t Au
%
%
%
Oz
Oz
Tonnes
Tonnes
Tonnes
g/t Au
%
Oz
Oz
Tonnes
g/t Au
%
Oz
Oz
Tonnes
Tonnes
FY23
1,275,326
2.6
88%
95,559
97,181
731,574
5.6
0.3%
96.7%
82.5%
127,069
124,553
1,483
1,325
259,478
4.9
94.8%
38,976
38,639
FY22
1,256,338
3.0
92%
112,384
113,875
751,021
5.4
0.2%
96.1%
77.8%
124,602
123,099
991
907
89,741
5.5
94.6%
14,901
17,762
2,266,378
2,097,100
3.9
0.3%
261,604
260,372
1,483
1,325
4.0
0.2%
251,887
251,735
991
907
1 Sugar Zone physicals for FY22 are from the date of acquisition, 18 February 2022
Table 2
EXPLORATION
Silver Lake invested $24.8 million (FY22: $20.8 million) in exploration activities during the year to advance high-grade projects within
established and proven mineralised corridors proximal to established infrastructure.
The Group has committed to exploration spend of $42.5 million in FY24, with a significant investment in exploration at Sugar Zone with
grade control, resource definition and advanced exploration drilling amounting to approximately 93,000 metres planned, including
development of three dedicated exploration drives.
Mount Monger
Drilling during the year focused on Mineral Resource definition and extensions at established underground mines targeting lode infill and
extensions proximal to current underground development.
At the Daisy Complex, underground resource definition drilling targeted direct extensions and splays to the Easter Hollows and Haoma
West lodes. At Tank South, drilling beyond the Tank Mineral Resource boundary intersected high grade mineralisation which will be
followed up in FY24 with surface and underground diamond drilling to determine potential for a new mining zone.
Regional discovery exploration activity was focused on the Mount Belches and Aldiss Mining Centres. Drilling success and the re-
optimisation of open pit shells of existing Mineral Resources, given the prevailing Australian Dollar gold price, has identified potential
open pits proximal to Santa at the Mount Belches Mining Centre. Recent infill and the extensional drilling at Rumbles has demonstrated
the potential to grow the current Mineral Resource. Silver Lake has also recommenced resource definition drilling at the Flora Dora
deposit to infill and extend lodes for open pit optimisation.
14 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
Deflector
Deflector underground drilling in FY23 was focused on grade control drilling of the South West production areas, and targeted direct
extensions to the southern and lower margins of the South West lode system. High grade Deflector style mineralisation was confirmed
by surface diamond drilling at the Spanish Galleon prospect located 300m west from the Deflector South West underground mining
front, within mafic and ultramafic host rocks similar to the main Deflector host stratigraphy. The Spanish Galleon area had been
historically defined by shallow oxide mineralisation with limited drilling beneath oxide mineralisation and presents a new exploration
front at Deflector.
FY24 in-mine resource definition drilling will target further extensions to the South West lodes to the south where mineralisation remains
open in multiple directions. Follow up drilling from underground will be continued at the Spanish Galleon target zone to define the strike
length, geometry and widths of the Deflector style high grade copper and gold mineralisation discovered.
Deflector regional exploration activity focused on both the Gullewa and Brandy Hill greenstone belt corridors targeting highly
prospective geology and structural features which are underexplored. Aircore, RC and diamond drilling programs were completed
in FY23 to update geological models, confirm geochemical targets and build on the exploration databases. A program of deep
stratigraphic diamond drillholes, supported by a state government grant, and designed to significantly advance and enhance target
generation at Brandy Hill, commenced at the start of FY24. Further exploration at Brandy Hill in FY24 will test new targets generated
from the revised geological and mineralisation models.
Sugar Zone
The work completed in FY23 has identified large areas of new greenstone stratigraphy within the broader regional land package,
primarily to the west of Sugar Zone which has not seen any exploration work and are interpreted to be prospective for multiple styles
of mineralisation. Silver Lake undertook a comprehensive data review to deliver a pipeline of exploration targets, ranked for systematic
testing, and has also commenced relogging and resampling of historical drill core leveraging from an improved understanding of the
characteristics of the multiple styles of mineralisation on the extensive land package.
In FY24, Sugar Zone accounts for the largest portion of the Group exploration program, with Silver Lake’s investment in exploration
designed to deliver a step change in ore body knowledge to unlock the potential of the extensive resource base and underexplored
land package. Within the Sugar Zone mine corridor, resource definition drilling from surface will target below planned grade control
drilling and the newly defined Sugar Zone South area.
Advanced exploration will predominantly target brownfield prospects within the Sugar Zone mine corridor which presently extends for
3.6 kilometres. Drilling will follow up historical intersections to determine the extent and continuity of mineralisation along strike from
the active mining areas, and the drilling coverage will be progressively expanded along the mine corridor to target discovery of new
mineralisation and grow the Resource base.
STRATEGY
The Group’s short to medium term strategy is to deliver superior returns for shareholders by positioning Silver Lake as a leading gold
stock on the ASX with a balanced portfolio of operations and growth projects. To achieve this strategic objective, the Company must
become larger, longer life and lower cost. This will be achieved by:
·
Pursuing and unlocking the full potential of existing operations;
· Attracting and retaining an experienced team to enable Silver Lake to be an effective operator and developer of mining assets;
· Developing a balanced growth profile through exploration and targeted M&A programs;
· Maintaining the appropriate balance sheet strength and scale to achieve long term growth through the cycle; and
· A returns driven capital management strategy.
Key risks associated with delivering on the Group’s strategy include:
· Gold price and FX currency: The Company is exposed to fluctuations in the Australian dollar gold price which can impact on
revenue streams from operations. To mitigate downside in the gold price, the Board has implemented a hedging program to assist in
offsetting variations in the Australian dollar gold price. Hedging is an agenda item at each Board meeting to ensure it continues to
fit within the Company’s hedging strategy and is deemed appropriate;
·
Reserves and Resources: The Mineral Resources and Ore Reserves for the Group's assets are estimates only and no assurance can be
given that they will be realised;
· Government charges: The gold mining industry is subject to a number of Government taxes, royalties and charges. Changes to the
rates of taxes, royalties and charges can impact on the profitability of the Company. The Company maintains communications with
relevant parties to mitigate potential increases;
· Operating risk: The Group’s gold mining operations are subject to operating risks that could result in decreased production,
increased costs and reduced revenues. To manage this risk the Company seeks to attract and retain high calibre employees and
implement suitable systems and processes to ensure production targets are achieved;
·
·
·
·
Exploration success: No assurance can be given that exploration expenditure will result in future profitable operating mines;
Environmental: The Company has environmental liabilities associated with its tenements which arise as a consequence of mining
operations, including waste management, tailings management, chemical management, water management and energy efficiency.
The Company monitors its ongoing environmental obligations and risks, and implements rehabilitation and corrective actions as
appropriate, through compliance with its environmental management system;
People risks: The Company seeks to ensure that it provides a safe workplace to minimise risk of harm to its employees and
contractors. It achieves this through an appropriate safety culture, safety systems, training and emergency preparedness; and
Supply chain constraints: The Group’s operations continue to be impacted by ongoing supply chain constraints that have arisen as a
consequence of the pandemic and it is not known what impact this will have on FY24 performance.
15
Directors’ Report
DIVIDENDS
No dividend has been paid or declared by the Company up to the date of this report.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than as disclosed elsewhere in this report, there have been no material events that have occurred between the reporting date
and the date of signing this report.
LIKELY DEVELOPMENTS
The Company will continue to pursue maximising free cashflow and increasing margins from its operations. There are no likely
developments of which the directors are aware which could be expected to significantly affect the results of the Group’s operations in
subsequent financial years not otherwise disclosed in this Report.
ENVIRONMENTAL REGULATIONS AND PERFORMANCE
The Company’s operations hold licences issued by the relevant regulatory authorities. These licences specify limits and regulate the
management associated with the operations of the Company. At the date of this report the Company is not aware of any significant
breach of those environmental requirements.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has agreed to indemnify the current Directors and Officers against any liability that may arise from their position as
Directors and Officers of the Company except where the liability arises out of the improper use of position, or committing of any
criminal, dishonest, fraudulent or malicious act.
During the financial year the Company has paid Directors’ & Officers’ insurance premiums in respect of liability of any current and future
Officers, and senior executives of the Company. The contract of insurance prohibits disclosure of the nature of the liability and the
amount of the premium.
Silver Lake has not provided any insurance or indemnity to the auditor of the Company.
PROCEEDINGS ON BEHALF OF THE COMPANY
At the date of this report there are no leave applications or proceedings brought on behalf of the Group under section 237 of the
Corporations Act 2001.
CORPORATE GOVERNANCE
In recognising the need for appropriate standards of corporate behaviour and accountability, the Directors of Silver Lake have adhered
to the principles of good corporate governance. The Company’s corporate governance policies are located on the Company’s website.
SUBSEQUENT EVENTS
No events have arisen in the interval between the end of the financial year and the date of this report of a material and unusual nature
likely, in the opinion of the Directors of the Company, to significantly affect the operations of the Group, the results of those operations,
or the state of affairs of the Group, in future financial years.
16 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
REMUNERATION REPORT - AUDITED
This report outlines the remuneration arrangements in place for both Executives and Non-executive Directors.
Contents:
1. Basis of preparation
2. Key management personnel (KMP)
3. Remuneration snapshot
4. Remuneration governance
5. FY23 Executive remuneration
6. FY23 Non-executive director (NED) remuneration
7. KMP Shareholdings
1. BASIS OF PREPARATION
This remuneration report has been prepared and audited in accordance with the requirements of the Corporations Act 2001 and the
applicable accounting standards. All references to dollars in this remuneration report are to Australian Dollars unless otherwise specified.
2. KEY MANAGEMENT PERSONNEL
Key management personnel (KMP) comprise those persons with authority and responsibility for planning, directing and controlling the
activities of the Company. This includes the Executives and Non-executive directors (NEDs) of the Company. In this report, ‘Executives’
refers to individuals identified as KMP, excluding NEDs.
A list of all NEDs and Executives for FY23 is set out below:
Name
Position
David Quinlivan
Non-executive Chairman
Luke Tonkin
Kelvin Flynn
Rebecca Prain
David Berg
Diniz Cardoso1
Len Eldridge
Managing Director
Non-executive Director
Non-executive Director
General Counsel & Company Secretary
Chief Financial Officer
Corporate Development Officer
Antony Shepherd
Exploration & Geology Manager
1 Diniz Cardoso will retire as CFO on 25 August 2023 and will be replaced by Struan Richards
3. REMUNERATION SNAPSHOT
FY23 Remuneration in review
Term as KMP
Full year
Full year
Full year
Full year
Full year
Full year
Full year
Full year
During the year the Company continued its focus on delivering new ore sources that sustain and enhance margins to drive shareholder
returns. Highlights for the year from this strategy included:
·
·
·
·
·
Silver Lake finished FY23 delivering annual guidance for the ninth consecutive year, despite the continuation of a challenging
operating climate across the mining industry;
cash & bullion increased 6% to $332.8 million at year end with no bank debt, after investing $190 million in plant and equipment,
underground mine development and exploration;
the Deflector Region Operation delivered record results with Deflector mine production increasing 30% to 130,000 ounces gold and
recovered gold increasing to 127,000 ounces. During the year the operation generated stockpiles that at year end totalled
490,000 tonnes at 2.5 g/t for 39,000 contained ounces;
created operating flexibility at Mount Monger through the development of the Tank South underground mine which together with
Daisy underground provided high grade baseload feed to the Randalls mill, supplemented by ore stockpiles which at year end
totalled 2.4 million tonnes at 1.2 g/t for 90,000 contained ounces; and
exploration success has created a pipeline of projects at Mount Monger to further leverage on the established infrastructure and
enhance mine life visibility. Development of the stage 1 Santa open pit will commence in January 2024 and the re-optimisation of
pit shells of existing Mineral Resources has identified potential open pits proximal to Santa including the Rumbles and Flora Dora
prospects.
Further information on the link between company performance and KMP remuneration can be found in section 5(g).
The Board believes that the Company’s remuneration framework is aligned with market practice and that Executive remuneration in
FY23 reflects the performance of the Company, the platform established for ongoing performance improvement and the experience of
the Executives.
17
Directors’ Report
Key remuneration outcomes for FY23 are summarised in the table below:
Remuneration element
Details
Fixed remuneration
No change to fixed remuneration structure.
Short-term incentive (STI)
STI payments were made to Executives during the period in line with their performance against
set targets. Further information on STI payments is included in section 5(c) of this report.
Long-term incentive (LTI)
In FY23, 840,555 performance rights were granted to the Managing Director on the terms
approved by shareholders at the 2021 AGM and a further 1,398,760 performance rights were
granted to other Executives as described further in this report.
4. REMUNERATION GOVERNANCE
a. Board and Nomination & Remuneration Committee (NRC) responsibility
The NRC is a subcommittee of the Board. It assists the Board to ensure that the Company develops and implements remuneration
policies and practices that are appropriate for the nature, size and standing of the Company.
The NRC is responsible for making recommendations to the Board on:
·
·
·
the remuneration arrangements (including base pay, performance targets, bonuses, equity awards, superannuation, retirement rights,
termination payments) for Executives;
the remuneration of Non-executive Directors; and
the establishment of employee incentive and equity-based plans and the number and terms of any incentives proposed to be issued
to Executives pursuant to those plans, including any vesting criteria.
b. Remuneration principles
The Company’s remuneration strategy and structure is reviewed by the Board and the NRC for business appropriateness and market
suitability on an ongoing basis.
KMP are remunerated and rewarded in accordance with the Company’s remuneration policies (outlined in further detail below).
c. Engagement of remuneration consultants
During the period, the Company did not engage remuneration consultants to provide a “remuneration recommendation” (as that term
is defined in the Corporations Act 2001). However, the NRC has benchmarked KMP remuneration using external independent industry
reports and data to ensure that remuneration levels are competitive and meet the objectives of the Company.
d. 2022 AGM voting outcome and comments
The Company received 98.7% of votes in favour of the adoption of its Remuneration Report for the 2022 financial year.
5. FY23 EXECUTIVE REMUNERATION
a. Executive remuneration strategy and policy
In determining Executive remuneration, the Board aims to ensure that remuneration practices are:
·
competitive and reasonable, enabling the Company to attract and retain high calibre talent;
· aligned to the Company’s strategic and business objectives and the creation of shareholder value;
·
transparent and easily understood; and
· acceptable to shareholders.
The Company’s approach to remuneration ensures that remuneration is competitive, performance-focused, clearly links appropriate
reward with desired business performance, and is simple to administer and understand by Executives and shareholders.
In line with the remuneration policy, remuneration levels are reviewed annually to ensure alignment to the market and the Company’s
stated objectives.
The Company’s reward structure provides for a combination of fixed and variable pay with the following components:
·
·
Fixed remuneration in the form of base salary, superannuation and benefits;
Variable remuneration in the form of short-term incentives (STI) and long-term incentives (LTI).
The table below provides a summary of the structure of executive remuneration:
FIXED REMUNERATION
·
·
Base salary
Superannuation
· Other benefits
VARIABLE REMUNERATION
·
·
STI (Cash Bonuses)
LTI (Performance Rights)
18 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
In accordance with the Company’s objective to ensure that executive remuneration is aligned to Company performance, a portion of
Executives’ remuneration is placed “at risk”. The relative proportion of target FY23 total remuneration packages split between the fixed
and variable remuneration is shown below:
TARGET LTI
40%
FIXED
REMUNERATION
30%
TARGET STI
30%
b. Fixed remuneration
Fixed remuneration is set at a level that is aligned to market benchmarks and reflective of Executives’ skills, experience, responsibilities
and performance.
When positioning base pay, the Company presently aims to position aggregate fixed remuneration at approximately the 62.5 percentile
of the industry benchmark AON McDonald Report (an independent, industry recognised report on the gold and mining industry). This is
to ensure that the Company’s remuneration arrangements remain competitive against peer companies to assist with the retention and
attraction of key talent.
Executive remuneration is benchmarked annually to ASX-listed companies of similar size (by market capitalisation), revenue base,
employee numbers and complexity. Specific reference is also made to peer companies within the gold mining sector.
Executives’ base salaries for the 2023 financial year were:
Executive
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge
Antony Shepherd
Base Salary FY231
Base Salary FY221
Movement
$826,000
$357,800
$381,800
$351,800
$301,800
$780,000
$337,500
$363,600
Note 2
$287,400
6%
6%
5%
n/a
5%
1 Base Salary as at 30 June of each respective year
2 Classified as a KMP from 1 July 2022
c. Short-term incentive (STI) arrangements
The purpose of the STI plan is to link the achievement of key short term Company targets with the remuneration received by those
Executives charged with meeting those targets.
The STI plan provides eligible employees with the opportunity to earn a cash bonus if certain financial and non-financial key
performance indicators (KPIs) are achieved. The Board has determined that the Company must be cash-flow positive from normal
operating and sustaining capital activities (excluding enhancement activities) for the applicable performance period, for any STI to
be paid.
All Executives are eligible to participate in the STI plan with awards capped at 100% of the target opportunity. The target opportunity
for KMP in FY23 was 100% of total fixed remuneration (TFR).
Each year the NRC, in conjunction with the Board, sets KPI targets for Executives. For FY23 the KPIs included non-discretionary targets
for safety and environment, production and processing and costs, each of which was measured relative to budget, and a relative TSR
target versus a comparator peer group of companies. The NRC also considered and evaluated the Executives’ ongoing review, response
and modification of safety, environment, production and cost plans during the year, and the execution and success of the operating,
business development and growth strategies.
19
Directors’ Report
FY23 Performance against STI measures
A summary of the KPI targets set for FY23 and their respective weightings are as follows:
KPI
Weighting Measure
1. Safety/Environment
2. Mine production & processing
3. Costs
4. Operating strategy & execution
5. Business development & growth
6. Company performance
9%
45%
18%
9%
9%
10%
·
·
·
Lagging EH&S indicators
Environmental management effectiveness
Safety management effectiveness
Production and processing from each operating site relative to
FY23 budget
Costs for each cost centre relative to FY23 budget
Execution and success of Operating Strategy
Implementation and execution of Corporate Strategy
TSR performance against comparator group
% of KPI
achieved
56%
58%
80%
100%
50%
10%
In assessing discretionary components of the KPI, the NRC considered the following achievements against objectives set at the start of
the year:
· achieving OH&S objectives;
· achieving environmental objectives;
· achieving FY23 sales and cost guidance despite the challenges presented by labour and supply chain constraints;
·
·
execution and success of operating strategy;
exceeding the targeted end of year cash and bullion balance; and
· delivery of positive exploration results from infill and extensional resource definition drilling to allow further mines to enter production
in future periods.
Based on the above assessment, STI payments for FY23 to Executives were as follows:
Executive
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge
Antony Shepherd
Maximum STI opportunity
% STI awarded
STI awarded
100% of TFR
100% of TFR
100% of TFR
100% of TFR
100% of TFR
60%
60%
60%
60%
60%
$555,000
$237,000
$253,000
$233,000
$200,000
d. Long-term incentive (LTI) arrangements
The Board has established the Employee Incentive Plan (Incentive Plan) as a means for motivating senior employees to pursue the long
term growth and success of the Company. The Incentive Plan provides the Company with the flexibility to issue incentives in the form of
either options or performance rights which may ultimately vest and be converted into shares on exercise, subject to satisfaction of any
relevant vesting conditions. The Incentive Plan was most recently approved by shareholders at the 2021 AGM.
Key features of the Incentive Plan
Under the terms of the Incentive Plan, the Board may determine which employees are eligible to participate. In FY23, all Executives were
eligible and were invited to participate. The number of Performance Rights awarded to each Executive was determined by dividing
the Executives’ maximum LTI opportunity by the 20 day VWAP of the Company shares as traded on the ASX up to 30 June 2022.
Performance Rights which were granted will not vest (and therefore will lapse) unless a hurdle, based on relative total shareholder return
(TSR), has been satisfied. TSR measures the growth for a financial year in the price of shares plus dividends paid. The NRC believes that
a single hurdle is appropriate as it is transparent, simple to administer and directly links Executive remuneration to the Company’s share
price relative to its peers.
Relative TSR will be measured by comparing the Company’s TSR with that of a comparator group of companies over the respective
3 year vesting period. The TSR metric measures the share price movement and dividends over this period for both the Company and the
comparator group.
The Performance Rights will vest based on the Company’s relative TSR ranking on the relevant vesting date as follows:
Relative TSR Performance
Less than 50th percentile
Vesting Outcome
0% vesting
Between the 50th percentile and 75th percentile
Pro rata straight line from 50% to 100%
At or above the 75th percentile
100% vesting
Relative TSR performance is calculated at a single point in time and is not subject to re-testing. The comparator group of companies for
Performance Rights on issue is listed in the table on page 22. At the discretion of the Board, the composition of the comparator group
may change from time to time.
20 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
Performance rights granted under the Incentive Plan will have no exercise price.
Unless the Bord in its absolute discretion determines otherwise, all unvested performance rights will lapse 30 days following the
cessation of employment. The Board will consider the circumstances surrounding the cessation of employment before deciding whether
to make any such determination.
FY23 LTI outcomes
During the year the Company issued 2,239,315 Performance Rights to Executives in respect of the LTI component of their FY23
remuneration. The quantum of Performance Rights issued was determined by reference to the 20 day VWAP to 30 June 2022 of
$1.46 per share.
Executive
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge
Antony Shepherd
Maximum LTI
opportunity
20 Day VWAP
Number of Performance Rights
granted during FY23
Fair value per
Performance Right*
133% of TFR
133% of TFR
133% of TFR
133% of TFR
133% of TFR
$1.46
$1.46
$1.46
$1.46
$1.46
840,555
359,228
383,324
353,204
303,004
$0.778
$0.778
$0.778
$0.778
$0.778
* Independently valued using a hybrid share option pricing model
Performance Rights
During the year the Company issued 10,949,024 Performance Rights to employees (including 2,239,315 Performance Rights to Executives)
in respect of the LTI component of their FY23 remuneration.
Executive
Balance at
1 July 2022
Granted in
FY23
Converted
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge
Antony Shepherd
Total
1,541,965
674,323
718,572
626,267
576,972
4,138,099
840,555
359,228
383,324
353,204
303,004
2,239,315
(612,525)
(280,172)
(293,938)
(281,163)
(241,349)
(1,709,147)
Balance at
30 June 2023
Vested &
exercisable at
30 June 2023
1,346,374
574,183
614,902
698,308
486,049
3,719,816
-
-
-
157,217
-
157,217
Lapsed
(423,621)
(179,196)
(193,056)
-
(152,578)
(948,451)
During the year, 948,451 Performance Rights lapsed due to performance hurdles not being satisfied.
The total expense recognised in the Statement of Profit or Loss for all KMP Performance Rights for the period ended 30 June 2023
was $1,450,214.
Details of the performance rights on issue at 30 June 2023 are summarised in the following table:
Number of performance rights
Exercise price
Grant date
Vesting period
Expiry period
ASX Comparator Group
Valuation at grant date
Underlying 20 day VWAP
Volatility
Risk free rate
Expected dividends
FY21 Award1
FY22 Award
FY23 Award
1,798,937
$0.00
1 July 2020
4,598,672
$0.00
1 July 2021
10,949,024
$0.00
1 July 2022
1 July 2020 – 30 June 2023
1 July 2021 – 30 June 2024
1 July 2022 – 30 June 2025
15 years
15 years
15 years
DCN; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; RSG; SBM;
WGX; X64
DCN; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; RSG;
SBM; WGX; X64
CMM; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; SBM;
WAF; WGX
$0.917
$1.98
65%
0.13%
-
$1.205
$1.73
60%
0.20%
-
$0.778
$1.46
50%
3.01%
-
Note 1: On completion of the vesting period, only 157,217 of the FY21 Performance Rights had vested, with the balance lapsing due to performance hurdles
not being satisfied.
The fair value of the performance rights was measured using a hybrid employee share option pricing model (correlation simulation and
Monte Carlo model) and was calculated by independent consultants.
21
Directors’ Report
e. Service agreements
A summary of the key terms of service agreements for Executives in FY23 is set out below. There is no fixed term for Executive
service agreements and all Executives are entitled to participate in the Company’s STI and LTI plans. The Company may terminate
service agreements immediately for cause, in which case the Executive is not entitled to any payment other than the value of fixed
remuneration and accrued leave entitlements up to the termination date.
Term of Agreement
Notice Period by
Executive
Notice Period by
Silver Lake
Name
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge
Open
Open
Open
Open
Antony Shepherd Open
f.
Executive remuneration paid
6 months
6 months
6 months
6 months
6 months
6 months
6 months
6 months
6 months
6 months
Fixed Remuneration
Termination
Payment
12 months TFR
6 months TFR
6 months TFR
6 months TFR
6 months TFR
Executive
Year
Salary &
Fees
Other
Benefits1
Superannuation
STI Cash
Payments
$
$
$
897,620
109,523
846,100
367,869
343,750
394,389
372,460
361,239
-
-
87,672
27,523
25,962
29,369
27,969
27,062
-
-
27,500
27,500
27,500
27,500
27,500
27,500
27,500
-
-
$
555,000
577,000
237,000
245,000
253,000
264,000
233,000
-
-
Rights2
$
550,641
522,216
234,274
227,819
251,437
242,993
215,122
-
-
Total
$
2,140,284
2,060,488
894,166
870,031
955,695
934,922
863,923
-
-
337,370
25,515
27,500
198,000
223,887
812,272
-
-
330,110
25,008
305,989
288,640
23,215
22,108
-
27,500
27,500
27,500
-
233,000
200,000
209,000
-
219,465
198,741
194,852
-
835,083
755,445
742,100
2,327,106
216,693
137,500
1,478,000
1,450,215
5,609,514
2,518,430
214,234
165,000
1,726,000
1,631,232
6,254,896
Performance
Related
Remuneration
%
52
53
53
54
53
54
52
-
-
52
-
54
54
54
52
54
Luke Tonkin
David Berg
Diniz Cardoso
Len Eldridge3
Steve Harvey4
David Vemer4
Antony Shepherd
Total
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
1 Represents contractual entitlements (including termination and retirement benefits), annual leave and long service leave entitlements, measured on an
accrual basis
2 These are valuations required under accounting standards and have not actually been paid during the year
3 Classified as KMP from 1 July 2022
4 Ceased as KMP from 1 July 2022
22 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
g. Link between company performance, shareholder wealth generation and remuneration
The NRC considers a number of criteria to assess the performance of the Company. Criteria used in this assessment include maximising
cashflows, managing risk, using a stronger balance sheet to undertake cash accretive investments in core assets, execution of
development projects, exploration success as well as the following metrics in respect of the current and previous financial years.
EBITDA ($m)
Profit after tax ($m)
Cash and bullion ($m)
Cash from operating activities ($m)
Closing share price at 30 June
2023
248.4
30.8
332.8
241.4
$0.97
2022
267.6
77.7
313.8
249.2
$1.21
2021
290.8
98.2
330.2
268.8
$1.66
2020
260.1
256.9
269.4
252.3
$2.13
2019
80.2
6.5
130.7
71.8
$1.26
The Company’s remuneration practices reflect the achievement of certain of the Company’s and Executive’s performance objectives.
The Company’s overall objective has been to maximise cash flow, increase operating margins and create new opportunities that
compete for capital.
6. FY23 NON-EXECUTIVE DIRECTOR (NED) REMUNERATION
a. NED remuneration policy
The Company’s policy is to remunerate NEDs at market rates (for comparable ASX listed companies) for time, commitment and
responsibilities. Fees for NEDs are not linked to the performance of the Company.
It is ensured that:
·
fees paid to NEDs are within the aggregate amount approved by shareholders at the Company’s Annual General Meeting;
· NEDs are remunerated by way of fees (in the form of cash and superannuation benefits);
· NEDs are not provided with retirement benefits other than statutory superannuation entitlements; and
· NEDs are not entitled to participate in equity-based remuneration schemes designed for executives without due consideration and
appropriate disclosure to the Company’s shareholders.
Fees paid to NEDs cover all activities associated with their role on the Board and any sub-committees. No additional fees are paid to
NEDs for being a Chair or Member of a sub-committee. However, NEDs are entitled to fees or other amounts as the Board determines
where they perform special duties or otherwise perform extra services on behalf of the Company. They may also be reimbursed for out
of pocket expenses incurred as a result of their Directorships.
b. NED fee pool and fees
The Company’s Constitution provides that the NEDs may collectively be paid, as remuneration for their services, a fixed sum not
exceeding the aggregate maximum from time to time determined by the Company in a general meeting. Directors’ fees payable in
aggregate to the NEDs of the Company is currently capped at $1,000,000 per annum.
FY23 NED fees
NED
David Quinlivan
Kelvin Flynn
Rebecca Prain
Peter Alexander
Fees FY231
Fees FY221
Movement
$262,000
$151,000
$151,000
-
$247,300
$142,800
$123,193
$20,127
6%
6%
Note 2
Note 3
1 Fees excluding superannuation as at 30 June of each respective year
2 Appointed 17 August 2021
3 Resigned 17 August 2021
23
Directors’ Report
c. NED fees paid
Details of the remuneration of each NED for the year ended 30 June 2023 is set out in the following table:
Non executive Director
Year
Short Term Base Fee
Superannuation benefits
David Quinlivan
Kelvin Flynn
Rebecca Prain1
Peter Alexander2
Total
1 Appointed 17 August 2021
2 Resigned 17 August 2021
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
7. KMP SHAREHOLDINGS
$
262,000
247,300
151,000
142,800
151,000
123,193
-
20,127
564,000
533,420
$
27,510
24,730
15,855
14,280
15,855
12,319
-
2,013
59,220
53,342
Total
$
289,510
272,030
166,855
157,080
166,855
135,512
-
22,140
623,220
586,762
KMP
David Quinlivan
Luke Tonkin
Kelvin Flynn
Rebecca Prain
David Berg
Diniz Cardoso
Len Eldridge
Antony Shepherd
Total
Balance at
1 July 2022
Acquired
Conversion of
Performance
Rights
-
1,181,661
-
-
270,000
200,000
-
-
1,651,661
-
-
-
-
-
-
-
-
-
-
612,525
-
-
280,172
293,938
281,163
241,349
1,709,147
Sold
-
(1,030,000)
-
-
(13,221)
(493,938)
(281,163)
(241,349)
(2,059,671)
Balance at
30 June 2023
-
764,186
-
-
536,951
-
-
-
1,301,137
There has been no change to KMP shareholdings between 30 June 2023 and the date of this report.
AUDITOR’S INDEPENDENCE
Section 307C of the Corporations Act 2001 requires Silver Lake’s auditors, KPMG, to provide the Directors with an Independence
Declaration in relation to the audit of the financial report for the year ended 30 June 2023. This Independence Declaration is attached
to the Directors’ Report and forms a part of the Directors’ Report.
NON-AUDIT SERVICES
During the year the Group’s auditor, KPMG, has performed certain other services in addition to the audit and review of the financial
statements. The Board is satisfied that the provision of non-audit services is compatible with, and did not compromise the general
standard of independence for auditors imposed by the Corporations Act 2001 for the following reasons:
· all non-audit services were subject to the corporate governance procedures adopted by the Group and have been reviewed by the
Audit Committee to ensure they do not impact the integrity and objectivity of the auditor; and
·
the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants, as they do not involve reviewing or auditing the auditor’s own work, acting in a
management or decision-making capacity for the Group, acting as an advocate for the Group or jointly sharing risk and rewards.
Details of the amounts paid to the auditor of the Group, KPMG, for audit and non-audit services provided during the year are set out below:
Audit services
Audit and review of financial statements – KPMG Australia
Audit and review of financial statements – KPMG Canada
Non-audit services
Taxation services
Total paid
24 Silver Lake Resources Limited Annual Report 2023
2023
2022
303,000
110,000
137,000
550,000
328,000
163,000
155,000
646,000
Directors’ Report
ROUNDING OFF
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in
accordance with that Instrument, all financial information has been rounded off to the nearest thousand dollars, unless otherwise stated.
The Directors’ Report is signed in accordance with a resolution of the Directors.
Luke Tonkin
Managing Director
23 August 2023
25
Directors’ Declaration
Directors’ Declaration
1.
In the opinion of the Directors:
(a). the consolidated financial statements and notes of the Group and the Remuneration Report in the Directors’ Report are 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 performance for the year then
ended; and
(ii). Complying with Australian Accounting Standards and Corporations Regulations 2001;
(b). the financial statements also comply with International Financial Reporting Standards as disclosed in Note 1;
(c). there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable; and
(d). there are reasonable grounds to believe that the Company and the Group entity identified in Note 35 will be able to meet any
obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the
Company and that Group entity pursuant to ASIC Corporations (wholly owned companies) Instruments 2016/785.
2. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with s295A of
the Corporations Act 2001 from the Managing Director and Chief Financial Officer for the financial year ended 30 June 2023.
The declaration is signed in accordance with a resolution of the Board of Directors.
Luke Tonkin
Managing Director
23 August 2023
26 Silver Lake Resources Limited Annual Report 2023
Auditor's Independence Declaration
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Silver Lake Resources Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Silver Lake Resources
Limited for the financial year ended 30 June 2023 there have been:
i.
ii.
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Graham Hogg
Partner
Perth
23 August 2023
28
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited
by a scheme approved under Professional Standards Legislation.
27
Independent Auditor's Report
Independent Auditor’s Report
To the shareholders of Silver Lake Resources Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Silver Lake Resources Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company is in accordance with
the Corporations Act 2001, including:
• Giving a true and fair view of the Group’s
financial position as at 30 June 2023 and of
its financial performance for the year ended
on that date; and
The Financial Report comprises:
• Consolidated Balance Sheet as at
30 June 2023;
• Consolidated statement of profit or loss and
other comprehensive income, Consolidated
statement of changes in equity, and
Consolidated statement of cash flows for the
year then ended;
• Notes including a summary of significant
• Complying with Australian Accounting
accounting policies; and
Standards and the Corporations Regulations
2001.
• Directors’ Declaration.
The Group consists of the Company and the
entities it controlled at the year-end or from time
to time during the financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 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 fulfilled our other ethical responsibilities in
accordance with these requirements.
Key Audit Matters
The Key Audit Matters we identified are:
• Valuation of goodwill and non-current
assets; and
• Recoverability of Deferred Tax Assets in
relation to Tax Losses in Australia.
Key Audit Matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Financial Report of the current
period.
These matters were addressed in the context of
our audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not
provide a separate opinion on these matters.
29
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
28 Silver Lake Resources Limited Annual Report 2023
Independent Auditor's Report
Independent Auditor's Report
Valuation of goodwill and non-current assets ($762.3 million)
Refer to Note 15,16 &18 to the Financial Report
The key audit matter
How the matter was addressed in our audit
A key audit matter was impairment testing of
goodwill and non-current asset given the
significance of the balances in the Group’s
consolidated balance sheet. Impairment testing
was performed on the following Cash
generating units (CGU):
1) Mount Monger and Deflector operations
due to the presence of goodwill; and
2) The Sugar zone operation for which the
presence of an impairment indicator was
identified.
Our procedures included:
• We examined documentation prepared by
management including consideration of the
appropriateness of adopting fair value less
costs of disposal methodology in developing
models for Deflector and Mount Monger
CGUs;
• We evaluated the sensitivity of the valuation of
goodwill by considering reasonably possible
changes to the key assumptions in the
valuation models;
We focused on the significant and judgemental
forward-looking assumptions the Group applied
in their fair value less costs of disposal
(FVLCOD) calculation, including:
• We assessed the reasonableness of key
assumptions used in the models, using our
knowledge of the Group, their past
performance, and our industry experience;
• Forecast cashflows including forecast sales,
production output, production costs and
capital expenditure;
• We compared the forecast cash flows and
capital expenditure in the models to Board
approved forecasts;
• Forecast gold prices and AUD/USD
exchange rate - fluctuating gold prices and
exchange rates increases the risk of future
fluctuations and inaccurate forecasting;
• Discount rate - these are complicated in
nature and vary according to the conditions
and environment the specific CGU is
subject to from time to time;
• Life of mineral reserves and resources -
inherent estimation uncertainty related to
life of mine reserves and resources
increases the range of forecasting
outcomes to consider; and
• Resources multiples.
We involved valuation specialists to supplement
our senior audit team members in assessing
this key audit matter.
• We compared expected commodity prices and
foreign exchange rates to published views of
the market commentator on future trends;
• For resources outside of the CGU models,
where value is determined using a resource
multiple basis (to comparable companies) we
compared resource multiples to publicly
available market data for the comparable
entities;
• We compared the life of mineral reserves and
resources in the models to the reserves and
resources statements commissioned by the
Group for consistency with the cash flow
forecasts; and
• Working with our valuation specialists, we
independently developed a discount rate
considered comparable, using publicly available
market data for comparable entities.
Specifically for the Sugar Zone CGU:
• We have involved our valuation specialists and
assessed the reasonableness of the
methodology adopted by the Group;
• We assessed the Group’s external expert
report and considered their objectivity,
competence and scope of their work;
30
29
Independent Auditor's Report
• We assessed the companies used in the
multiples analysis to determine if they are
comparable to Sugar Zone; and
• We recalculated the valuation range based on
the range of multiples.
We also assessed the disclosures in the financial
report using our understanding obtained from our
testing and against the requirements of the
accounting standards.
Recoverability of Deferred Tax Assets in relation to Tax Losses in Australia ($60.8 million)
Refer to Note 9 to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group has recognised deferred tax assets
arising from tax losses carried forward.
Working with our tax specialists, our procedures
included:
The Group has recognised a net deferred tax
asset balance of $17.3 million as at 30 June
2023 in Australia. This includes gross carry
forward losses of $202.7 million (not tax
effected) which are partially offset by deferred
tax liabilities for temporary differences.
Our focus on recoverability of the deferred tax
assets is associated with the Australia tax
losses as the losses are booked in excess of
the deferred tax liabilities.
The recoverability of deferred tax assets in
relation to tax losses was a key audit matter
due to:
• The significance of these assets recognised
by the Group;
• The significant judgement required by us to
evaluate the Group’s assessment of their
probability of generating sufficient taxable
profits, in light of the tax losses recorded in
previous financial years; and
• The risk of the Group incorrectly applying
the requirements of the accounting
standards and Australian tax law to
recognise deferred tax assets for tax losses,
which could result in a substantial effect on
the Group’s statement of profit or loss and
other comprehensive income.
We involved tax specialists to supplement our
senior team members in assessing this key
audit matter.
• Examining the documentation prepared by the
Group underlying the availability of tax losses
and annual utilisation allowances for
consistency with Australian tax law as
applicable;
• Comparing the forecasts included in the
Group’s estimate of future taxable profits used
in their deferred tax asset recoverability
assessment to those used in the Group’s
assessment of the valuation goodwill. Our
approach to testing these forecasts was
consistent with the approach detailed in
relation to the valuation of goodwill;
• We evaluated the differences between
forecast cash flows and taxable profits by
evaluating the adjustment of cash flows, for
differences between accounting profits, as
presented in the Group’s forecasts, to taxable
profits, against Australian tax law;
• Understanding the timing of future taxable
profits and considering the consistency of the
timeframes of expected recovery to our
knowledge of the business and its plans; and
• Recalculating the amount of previously
recognised tax losses utilised against the
recorded amount disclosed by the Group in
accordance with Australian tax law and the
accounting standards.
We assessed the disclosures in the financial
report using the results from our testing and
against the requirements of the accounting
standards.
31
30 Silver Lake Resources Limited Annual Report 2023
Independent Auditor's Report
Other Information
Other Information is financial and non-financial information in Silver Lake Resources Limited’s annual
reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors
are responsible for the Other Information.
The Other Information we obtained prior to the date of this Auditor’s Report was the Director’s
Report. The Chairman and Managing Director’s Report, Project Report, Exploration Report, Reserves
& Resources report and ASX additional information are expected to be made available to us after the
date of the Auditor’s Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
and will not express an audit opinion or any form of assurance conclusion thereon, with the exception
of the Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other
Information. In doing so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• Preparing the Financial Report that gives a true and fair view in accordance with Australian
Accounting Standards and the Corporations Act 2001;
•
Implementing necessary internal control to enable the preparation of a Financial Report that gives
a true and fair view and is free from material misstatement, whether due to fraud or error; and
• Assessing the Group and Company’s ability to continue as a going concern and whether the use
of the going concern basis of accounting is appropriate. This includes disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group and Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• To obtain reasonable assurance about whether the Financial Report as a whole is free from
material misstatement, whether due to fraud or error; and
• To issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.
Misstatements can arise from fraud or error. They 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 the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
Auditor’s Report.
32
31
Independent Auditor's Report
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report of
Silver Lake Resources Limited for the year
ended 30 June 2023, complies with Section
300A of the Corporations Act 2001.
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 responsibilities
We have audited the Remuneration Report included
in pages 15 to 25 of the Directors’ Report for the
17 to 26
year ended 30 June 2023.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards.
KPMG
Graham Hogg
Partner
Perth
23 August 2023
33
32 Silver Lake Resources Limited Annual Report 2023
Directors’ Report
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2023
30 June 2023
30 June 2022
Notes
$’000
$’000
Revenue
Cost of sales
Gross profit
Other income
Exploration expensed/impaired
Profit/(loss) on sale of assets
Gain on bargain purchase
Administration expenses
Results from operating activities
Finance income
Finance expenses
Net finance income/(costs)
Profit before income tax
Income tax expense
Profit for the year
Net income for the year
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss - exchange
differences arising on translating foreign operations
Total comprehensive income for the year attributable to Owners of
the Company
4
5
3
6
8
9
719,628
(639,031)
80,597
228
(5,044)
412
-
(23,744)
52,449
13,516
(6,640)
6,876
59,325
(28,489)
30,836
634,566
(518,525)
116,041
252
(3,187)
(1,008)
28,827
(17,515)
123,410
676
(8,751)
(8,075)
115,335
(37,654)
77,681
30,836
77,681
1,963
7,690
32,799
85,371
Basic earnings per share
Diluted earnings per share
10
10
Cents Per Share
Cents Per Share
3.31
3.26
8.60
8.52
The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying
notes to these consolidated financial statements.
33
Consolidated Balance Sheet
Consolidated Balance Sheet
AS AT 30 JUNE 2023
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Inventories
Exploration, evaluation and development expenditure
Property, plant and equipment
Investments
Deferred tax assets
Goodwill
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Employee benefits
Deferred revenue
Rehabilitation and restoration provision
Total current liabilities
Non-current liabilities
Lease liabilities
Rehabilitation and restoration provision
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
30 June 2023
30 June 2022
Notes
$’000
$’000
11
13
14
14
15
16
17
9
18
19
21
22
20
24
21
24
9
25
26
328,285
304,298
14,136
92,473
875
15,078
83,887
1,230
435,769
404,493
53,711
435,967
235,651
12,838
77,786
90,695
906,648
1,342,417
90,672
23,479
7,243
-
-
121,394
21,134
48,093
63,385
132,612
254,006
1,088,411
63,356
402,146
247,604
7,968
65,112
90,695
876,881
1,281,374
83,317
22,382
7,617
20,467
90
133,873
24,465
46,833
22,020
93,318
227,191
1,054,183
1,095,436
1,096,268
17,710
(24,735)
1,088,411
13,486
(55,571)
1,054,183
The Consolidated Balance Sheet should be read in conjunction with the accompanying notes to these consolidated financial statements.
34 Silver Lake Resources Limited Annual Report 2023
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2023
Balance at 1 July 2021
Total comprehensive income for the period
Transactions with owners, recorded directly
in equity
Equity settled share based payment
Transfer from reserves to share capital (Note 25)
Share buyback (Note 25)
Issue of shares
Exchange differences on translation of foreign
operations
Share
Capital
$’000
1,023,106
-
-
3,323
(1,064)
70,903
-
Balance at 30 June 2022
1,096,268
5,796
Share
Based
Payment
Reserve
Foreign
Currency
Translation
Reserve
Retained
Earnings /
(Accumulated
Losses)
$’000
$’000
$’000
Total
Equity
$’000
5,924
-
3,195
(3,323)
-
-
-
-
-
-
-
-
-
7,690
7,690
(133,252)
895,778
77,681
77,681
-
-
-
-
-
3,195
-
(1,064)
70,903
7,690
(55,571)
1,054,183
Balance at 1 July 2022
Total comprehensive income for the period
Transactions with owners, recorded directly in
equity
Equity settled share based payment
Transfer from reserves to share capital (Note 25)
Share buyback (Note 25)
Exchange differences on translation of foreign
operations
1,096,268
-
-
2,205
(3,037)
-
5,796
-
4,466
(2,205)
-
-
Balance at 30 June 2023
1,095,436
8,057
7,690
(55,571)
1,054,183
-
-
-
-
1,963
9,653
30,836
30,836
-
-
-
-
4,466
-
(3,037)
1,963
(24,735)
1,088,411
The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes to these consolidated
financial statements.
35
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2023
30 June 2023
30 June 2022
Notes
$’000
$’000
Cash flows from operating activities
Receipts from sales
Payments to suppliers and employees
Net cash from operating activities
Cash flow from investing activities
Interest received
Acquisition of plant and equipment
Proceeds from sale of plant and equipment
Acquisition of investments
Proceeds from divestments
Payments for exploration, evaluation and development
Cash acquired in a business combination
Harte Gold transaction
Net cash used in investing activities
Cash flows from financing activities
Share buy back
Repayment of lease liabilities
Payment of stamp duty
Return of insurance bond
Proceeds from gold pre-pay arrangement
Repayment of gold pre-pay arrangement
Finance costs paid
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Effects of fx rate changes on cash and cash equivalents
Cash and cash equivalents at 30 June
700,254
(458,845)
241,409
6,353
(34,438)
300
(1,979)
3,487
(155,116)
-
-
(181,393)
(3,037)
(27,561)
-
-
-
-
(5,448)
(36,046)
23,970
304,298
17
328,285
632,852
(383,769)
249,083
676
(14,904)
-
(1,722)
375
(112,084)
7,165
(134,720)
(255,214)
(1,064)
(33,025)
(3,316)
1,444
30,572
(10,223)
(2,928)
(18,540)
(24,671)
328,890
79
304,298
12
17
3
25
20
11
The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes to the consolidated
financial statements.
36 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2023
1. BASIS OF PREPARATION
Silver Lake Resources Limited is a for-profit entity domiciled in Australia. The principal activities of the Group during the year were
exploration, mine development, mine operations and the sale of gold and gold/copper concentrate in Australia and Canada.
The consolidated financial statements of the Company as at and for the year ended 30 June 2023 comprise the Company and its
subsidiaries (together referred to as “the Group” and individually as “Group Entities”).
The consolidated financial statements were approved by the Board of Directors on 23 August 2023. The financial report is a general
purpose financial report which:
·
·
·
has been prepared in accordance with Australian Accounting Standards (“AASBs”) (including Australian Accounting interpretations)
adopted by the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001;
complies with International Financial Reporting Standards (“IFRSs”) and interpretations adopted by the International Accounting
Standards Board (“IASB”);
has been presented on the historical cost basis except for the following items in the balance sheet:
·
·
·
·
investments which have been measured at fair value.
equity settled share-based payment arrangements have been measured at fair value.
inventories which have been measured at the lower of cost and net realisable value.
exploration, evaluation and development expenditure which have been measured at recoverable value where impairments
have been recognised
Other than the adoption of new standards, there have been no material changes to accounting policies for the periods presented
in these consolidated financial statements. Significant accounting policies specific to one note are included in that note. Accounting
policies determined non-significant are not included in the financial statements.
The accounting policies have been applied consistently to all periods presented and by all Group Entities.
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in
accordance with that Instrument, all financial information has been rounded off to the nearest thousand dollars, unless
otherwise stated.
(a). Foreign Currency Translation
(i). Functional and Presentation Currency
These consolidated financial statements are prepared in Australian dollars, which is the functional currency of the Company and its
Australian subsidiaries. The functional currency for Canadian subsidiaries is Canadian dollars.
(ii). Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the
transaction. The subsequent payment or receipt of funds related to a transaction is translated at the rate applicable on the date of
payment or receipt.
Monetary assets and liabilities which are denominated in foreign currencies are re-translated at the rate of exchange ruling at the
reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
All exchange differences in the consolidated financial statements are taken to the Statement of Other Comprehensive Income and
accumulated in a reserve.
(iii). Translation
The assets and liabilities of subsidiaries with functional currency other than Australian dollars (being the presentation currency of
the Group) are translated into Australian dollars at the exchange rate at the reporting date and the Statement of Profit or Loss is
translated at the average exchange rate for the period. On consolidation, exchange differences arising from the translation of these
subsidiaries are recognised in Other Comprehensive Income and accumulated in the foreign currency translation reserve.
(b). Use of Judgements and Estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ
from these estimates.
37
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Judgements and estimates which are material to the financial report are found in the following notes:
· Note 3 Acquisition of Subsidiary – fair value of the consideration transferred, and fair value of the assets acquired and liabilities
assumed, measured on a provisional basis
· Note 9 Income Tax – recognition of deferred tax assets
· Note 15 Exploration, evaluation and development expenditure – consideration of impairment triggers and recognition of impairment
losses
· Note 15 Amortisation of development expenditure – estimation of future mineable inventory and future development expenditure
when calculating units of production amortisation
· Note 15 Reserves and Resources – estimating reserves and resources
· Note 18 Impairment testing of goodwill - key assumptions underlying recoverable amounts
· Note 24 Closure and rehabilitation – measurement of provision based on key assumptions
(c). Basis for Consolidation
The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities (subsidiaries) at year
end is disclosed in Note 30.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies.
Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements.
(d). Measurement of Fair Value
A number of the Group’s accounting policies and disclosures require the determination of fair value for both financial and non-financial
assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which
the Group has access at that date. The fair value of a liability reflects its non-performance risk. Fair values have been determined for
measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions
made in determining fair values is disclosed in the notes specific to that asset or liability.
When measuring the fair value of an asset or a liability, the Group uses observable market data as far as possible. Fair values are
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
·
·
·
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the
entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during
which the change has occurred.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in these financial statements are the same as those applied in the Group’s consolidated financial
statements as at and for the year ended 30 June 2022.
Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted and
are not expected to have a significant impact on the Group.
3. ACQUISITION OF SUBSIDIARY IN FY22 (SILVER LAKE ONTARIO INC – FORMERLY
HARTE GOLD CORP.)
On 28 January 2022, the Ontario Superior Court of Justice approved Silver Lake’s bid to acquire Harte Gold Corp. (‘Harte Gold’) under
Canada’s Companies’ Creditors Arrangement Act (‘CCAA proceedings’). Harte Gold was a TSX-listed gold mining company which owned
and operated the Sugar Zone mine in Ontario, Canada. Closing of the transaction occurred on 18 February 2022 (‘Closing Date’) which
was the acquisition date for accounting purposes.
The acquisition of Harte Gold involved the execution of multiple transactions including:
Transactions through the CCAA Process
(i). Acquisition of BNP Paribas (BNP) credit facilities
On 19 November 2021, Silver Lake acquired credit facilities provided by BNP to Harte Gold. Total cash consideration paid to BNP
amounted to US$65.3 million.
At Closing Date, the balance became an intercompany amount between Harte Gold and Silver Lake.
38 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
(ii). Debtor in possession (DIP) loan
During the CCAA proceedings, Silver Lake entered into a DIP Loan agreement to provide Harte Gold a non-revolving multiple draw
credit facility of up to C$10.8 million. The loan allowed Harte Gold to maintain the liquidity required to continue operations until closing
of the transaction.
At Closing Date, Harte Gold had drawn down C$1.9 million of the facility, with the balance subsequently transferred to Harte Gold to
fund ongoing working capital.
(iii). Settlement of Appian debt facilities
In January and February 2022, Silver Lake settled all debt facility obligations owed by Harte Gold to Appian Capital Advisory LLP
(‘Appian’) through the issuance of 27.0 million Silver Lake shares to Appian (at a fair value of $39.4 million) and payment of $8.0 million
in cash.
Other transactions
(iv). Settlement of hedge book
At Closing Date, Silver Lake elected to settle Harte Gold’s out of the money hedge book with BNP. Total consideration amounted to
US$24.8 million which was settled in cash.
(v). Acquisition of royalty
At Closing Date, Silver Lake elected to acquire a net smelter royalty (“NSR”) from Appian. The 2.0% NSR was payable on production from
the Sugar Zone mine and on the entire Sugar Zone property. The consideration for the acquisition totalled US$22.0 million and was
settled through the issuance of 17.66 million Silver Lake shares to Appian at a fair value of A$31.5 million.
At the Closing Date, the settlement value across all transactions related to the CCAA process amounted to A$139.5 million (Table 1):
CCAA Transactions
Transaction Amount
Basis of settlement
i.
ii.
Acquisition of BNP credit facilities
Debtor in Possession Loan
US$65,328,290
C$1,900,000
iii.
Settlement of Appian debt facilities
C$43,134,100
Cash
Cash
Equity
Cash
Total
Table 1
The settlement value across the other transactions amounted to A$66.1 million (Table 2):
Other Transactions
Settlement of hedge book
Acquisition of royalty
iv.
v.
Transaction Amount
Basis of settlement
US$24,849,204
US$22,000,000
Cash
Equity
Total
Table 2
A$'000
89,844
2,196
39,378
8,030
139,448
A$'000
34,531
31,525
66,056
Note: balances in tables are converted to Australian Dollars using the applicable foreign currency rate at the date of the transaction
Following completion of the above transactions and final court approval, all previous equity in Harte Gold was written off and new
equity issued to Silver Lake as sole shareholder.
39
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Accounting treatment
As the acquisition of Harte Gold occurred through a Court approved CCAA process and resulted in no payments to previous equity
holders, the consideration amount for accounts purposes under AASB 3 Business Combinations, was deemed to be nil. Instead, each
individual transaction tabled above was treated separately for accounts purposes.
Net identifiable assets at fair value as at the date of acquisition are tabled below:
Cash and cash equivalents
Trade and other receivables
Inventory
Prepayments
Property, plant and equipment
Right-of-use lease assets
Exploration, evaluation and development expenditure
Deferred tax assets
Trade and other payables
Employee provisions
Interest bearing liabilities
Rehabilitation provision
Deferred tax liabilities
Total net identifiable assets
$’000
7,165
7,069
11,113
3,150
104,468
9,469
95,928
16,986
(21,289)
(1,580)
(180,888)
(5,778)
(16,986)
28,827
As the consideration for accounting purposes was deemed to be nil, to initially recognise the net assets tabled above, a gain on
bargain purchase of $28.8 million was recognised in the statement of profit or loss as the excess of fair value of net assets acquired over
consideration paid.
Accounting Policies
Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration
transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is
tested annually for impairment. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
4. REVENUE
Gold sales
Copper sales
Silver sales
Total
30 June
30 June
2023
$’000
701,386
16,976
1,266
719,628
2022
$’000
621,264
12,116
1,186
634,566
Included in current year gold sales is 89,952 ounces of gold sold (at an average price of A$2,601/ounce) under various hedge programs.
At 30 June 2023, the Company has a total of 110,000 ounces of gold left to be delivered under these programs over the next 30 months
at an average price of A$3,007/ounce (FY22: 40,000 ounces at A$2,505/ounce). Included in gold and copper sales is $3.3 million of
revenue attributable to provisionally priced contracts (FY22: $0.3 million).
Accounting Policies
Gold bullion sales
Under AASB 15 Revenue, revenue is recognised when a customer obtains control of the goods or services. Determining the timing of
the transfer of control requires judgement. With the sale of gold bullion, this occurs when physical bullion, from a contracted sale, is
transferred from the Company’s metals account into the account of the buyer.
40 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Concentrate Sales
Under AASB 15 Revenue, revenue is recognised upon receipt of the bill of lading when the concentrate is delivered for shipment.
Contract terms for concentrate sales allow for a final price adjustment after the date of sale, based on average market prices and final
assays in the period after the concentrate is sold. Average market prices are derived from independently published data with material
adjustments between the provisional and final price separately disclosed in Note 4. This typically occurs between 60-80 days after the
initial date of sale.
Gold forward contracts
The Group uses derivative financial instruments such as gold forward contracts to manage the risks associated with commodity price.
The sale of gold under such hedge instruments is accounted for using the ‘own use exemption’ under AASB 9 Financial Instruments and
as such all hedge revenue is recognised in the Statement of Profit or Loss and no fair value adjustments are subsequently made to sales
yet to be delivered under the hedging program.
5. COST OF SALES
Mining and processing costs
Impairment of carrying value of inventories
Amortisation
Depreciation
Salaries and on-costs
Royalties
Total
Accounting Policies
Mining and processing costs
Notes
15
16
30 June 2023
30 June 2022
$’000
336,697
68
118,511
71,578
89,103
23,074
639,031
$’000
266,119
-
100,062
67,818
63,528
20,998
518,525
This includes all costs related to mining, milling and site administration, net of costs capitalised to mine development and production
stripping. This category also includes movements in the cost of inventory and any net realisable value write downs.
Amortisation
The Group applies the units of production method for amortisation of its mine properties, which results in an amortisation charge
proportional to the depletion of the anticipated remaining life of mine production. These calculations require the use of estimates and
assumptions in relation to reserves and resources, metallurgy and the complexity of future capital development requirements. These
estimates and assumptions are reviewed annually and changes to these estimates and assumptions may impact the amortisation
charge in the Statement of Profit or Loss and asset carrying values.
The Group uses ounces mined over mineable inventory as its basis for depletion of mine properties. In the absence of reserves, the
Group believes this is the best measure as evidenced by historical conversion of resources to reserves. The Group applies applicable
factoring rates when adopting the units of production method to reflect the risk of conversion from the inferred and indicated
categories to mineable inventory.
Depreciation
Depreciation is calculated on either a reducing balance basis or on a straight-line basis over the estimated useful life of each part of
an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful life. Capital
work in progress is not depreciated until it is ready for use. Depreciation methods, useful lives and residual values are reassessed at
each reporting date.
The estimated useful lives for the current and comparative period are as follows:
Buildings
Haul roads
Plant and equipment
Office furniture and equipment
Motor vehicles
Period
7-10 Years
3-5 Years
3-10 Years
3-15 Years
3-5 Years
41
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
6. ADMINISTRATION EXPENSES
Salaries and on-costs
Consultants and contractors
Rental expenses
Business development expenses
Share based payments
Other corporate costs
Total
7. GROUP PERSONNEL EXPENSES
Wages and salaries
Other associated personnel expenses
Superannuation and pension contributions
Total
8. FINANCE INCOME AND EXPENSES
Interest income
Change in fair value of listed investments (Note 17)
Finance income
Interest expense
Change in fair value of listed investments (Note 17)
Interest expense on lease liabilities
Rehabilitation accretion and gold prepay
Borrowing costs
Foreign exchange
Finance costs
Net finance costs
Accounting Policies
30 June 2023
30 June 2022
$’000
12,507
1,925
557
1,229
4,466
3,060
23,744
$’000
9,458
1,299
595
299
3,195
2,669
17,515
30 June 2023
30 June 2022
$’000
87,677
8,827
6,214
102,718
$’000
62,424
6,206
5,267
73,897
30 June 2023
30 June 2022
$’000
7,639
5,877
13,516
(714)
-
(1,739)
(1,075)
(3,112)
-
(6,640)
6,876
$’000
676
-
676
(13)
(4,741)
(2,735)
(1,244)
-
(18)
(8,751)
(8,075)
Interest income comprises bank interest on funds invested and is recognised as it accrues, using the effective interest method.
Finance expenses comprise interest expense on borrowings, leases, unwinding of the discount on provisions and change in the value
of investments measured at fair value through the profit or loss. All borrowing costs are recognised in the Statement of Profit or Loss
using the effective interest method in the period in which they are incurred except borrowing costs that are directly attributable to the
acquisition, construction and production of a qualifying asset that necessarily takes a substantial period to get ready for its intended
use or sale. In this case, borrowing costs are capitalised as part of the qualifying asset.
42 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
9. TAXES
(a). Income tax
Current tax expense
Current income tax
Adjustment for prior years
Deferred income tax expense
Derecognition of previously recognised DTA
Movement in temporary differences
Income tax expense reported in profit or loss
Numerical reconciliation between tax expenses and pre-tax profit
Profit before tax
Income tax using the Australian corporation tax rate of 30%
Adjustment for prior years
Movement due to non-deductible items
Derecognition of previously recognised DTA
Deferred taxes not brought to account
Non-assessable gain on bargain purchase
Adjustment for difference between (AUD/CAD) tax rates
Other movements
Income tax expense reported in profit or loss
(b). Deferred tax assets and liabilities
Inventories
Investments
Exploration, evaluation and mining assets
Property, plant and equipment
Accrued expenses
Provisions
Share issue costs
Plant, equipment and mine assets - Ontario
Tax losses
Derecognition of previously recognised DTA
Net deferred tax assets
Australian entities:
Deferred tax assets
Deferred tax liabilities
Canadian entities:
Deferred tax assets
Deferred tax liabilities
Net deferred tax assets
30 June 2023
30 June 2022
$’000
$’000
18,537
519
19,056
-
9,433
28,489
59,325
17,798
519
1,444
-
10,933
-
(1,851)
(354)
28,489
5,701
146
5,847
11,296
20,511
37,654
115,335
34,601
146
2,466
11,296
-
(8,648)
(1,376)
(831)
37,654
30 June 2023
30 June 2022
$’000
(5,172)
(1,371)
(97,695)
18,384
1,522
14,540
1,042
(2,828)
85,979
14,401
-
14,401
60,800
(43,468)
16,986
(19,917)
14,401
$’000
(4,722)
-
(71,088)
9,538
1,626
14,131
1,797
(5,034)
108,140
54,388
(11,296)
43,092
79,857
(31,731)
16,986
(22,020)
43,092
43
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Accounting Policies
Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it
relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or
substantively enacted by the reporting date.
Tax consolidation
The Company and its Australian wholly owned entities are part of a tax-consolidated group. As a consequence, all members of
the Australian tax-consolidated group are taxed as a single entity (Silver Lake Resources Limited is the head entity within the tax-
consolidation group).
Current tax expense/benefit, deferred tax liabilities and deferred tax assets arising from temporary differences of the members of the
tax-consolidated group are recognised in the separate financial statements of the members of the tax-consolidated group using the
‘separate taxpayer within the group’ approach by reference to the carrying amounts of assets and liabilities in the separate financial
statements of each entity and the tax values applying under tax consolidation.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the subsidiaries are assumed by the head
entity in the tax-consolidated group and are recognised by the Company as amounts payable/(receivable) to/(from) other entities
in the tax-consolidated group. Any differences between these amounts are recognised by the Company as an equity contribution or
distribution.
The Company recognises deferred tax assets arising from unused tax losses of the tax-consolidated group to the extent that it is
probable that the future taxable profits of the tax-consolidated group will be available against which the asset can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of revised assessments of the
probability of recoverability is recognised by the head entity only.
Tax losses
The Group utilised $61,790,000 of tax losses in Australia during the current year by offsetting them against taxable income. At 30 June
2023 the Company has $240,326,000 (FY22: $303,846,000) of tax losses remaining that are available for offset against future taxable
profits in Australia. The Company has not recognised $37,654,000 of these losses on the balance sheet which would equate to a
deferred tax asset of $11,296,000.
At 30 June 2023, the Group’s Canadian subsidiaries have $209,434,000 (FY22: $130,255,000) of tax losses remaining that are available
for offset against future taxable profits in Canada. The Canadian subsidiary has not recognised $108,307,000 of these losses on the
balance sheet which would equate to a deferred tax asset of $27,077,000.
The potential benefit of carried forward tax losses will only be obtained if taxable profits are derived of a nature, and of an amount
sufficient, to enable the benefit from the deductions to be realised or the benefit can be utilised by the Group provided that:
(i).
the provisions of deductibility imposed by law are complied with; and
(ii). no change in tax legislation adversely affects the realisation of the benefit from the deductions.
In accordance with the Group’s accounting policies for deferred taxes, a deferred tax asset is recognised for unrecognised tax losses
only if it is probable that future taxable profits will be available to utilise those losses. Determination of future taxable profits requires
estimates and assumptions as to future events and circumstances, in particular, whether successful development and commercial
exploitation, or alternatively sale, of the respective areas of interest will be achieved. This includes estimates and judgments about
commodity prices, ore resources, exchange rates, future capital requirements, future operational performance and the timing of
estimated cash flows. Changes in these estimates and assumptions could impact on the amount and probability of estimated taxable
profits and accordingly the recoverability of deferred tax assets.
44 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
10. EARNINGS PER SHARE
Profit used in calculating basic and diluted EPS
Weighted average number of ordinary shares used in calculating basic
earnings per share
Effect of dilution in respect of unvested performance rights granted to
employees
Weighted average number of ordinary shares used in calculating diluted
earnings per share
30 June 2023
30 June 2022
$’000
30,836
$’000
77,681
Number of Shares
Number of shares
930,296,458
902,770,152
14,320,124
9,361,404
944,616,582
912,131,556
Accounting Policies
Basic EPS is calculated as profit attributable to ordinary shareholders of the Company divided by the weighted average number of
ordinary shares.
Diluted EPS is determined by adjusting the profit attributable to ordinary shareholders and the weighted average number of ordinary
shares outstanding for the effects of all dilutive potential ordinary shares, including performance rights granted to employees.
11. CASH AND CASH EQUIVALENTS
Cash at bank
Accounting Policies
30 June 2023
30 June 2022
$’000
328,285
$’000
304,298
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less. The Group ensures that
as far as possible it maintains excess cash and cash equivalents in short-term high interest bearing deposits. The Group’s exposure to
interest rate risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 27.
12. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
30 June 2023
30 June 2022
Cash flow from operating activities
Profit after tax
Adjustments for:
Depreciation
Amortisation
Exploration expenditure & impairment
Share based payments
Change in fair value of investments
Non cash finance costs
Profit/(loss) from the sale of non-current assets
Gain on bargain purchase
Operating profit before changes in working capital and provisions
Change in trade and other receivables
Change in inventories
Change in prepayments and other assets
Change in net deferred tax assets
Change in trade and other payables
Change in other liabilities
Total
$’000
30,836
71,578
118,511
901
4,466
(5,877)
2,814
(500)
-
222,729
942
1,059
354
28,691
7,305
(19,671)
241,409
$’000
77,681
67,818
100,062
3,187
3,195
4,741
1,257
5
(28,827)
229,119
(1,242)
(13,983)
2,155
37,653
(11,803)
7,184
249,083
45
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
13. TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
Sales tax receivables
Total
30 June 2023
30 June 2022
$’000
$’000
7,617
6,519
14,136
6,961
8,117
15,078
The Group’s exposure to interest rate risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 27.
Accounting Policies
Trade receivables are recognised initially at the value of the invoice sent to the counterparty and subsequently at the amounts
considered recoverable (amortised cost). Where there is evidence that the receivable is not recoverable, it is impaired with a
corresponding change to the profit or loss statement. The Group’s exposure to credit risk in relation to its receivables is not material.
14.
INVENTORIES
Current
Materials and supplies
Ore stocks
Gold in circuit
Concentrate
Bullion
Non-Current
Ore stocks
Total
30 June 2023
30 June 2022
$’000
22,569
53,953
8,155
3,304
4,492
92,473
53,711
146,184
$’000
20,329
41,188
8,260
4,593
9,517
83,887
63,356
147,243
Stockpiles that are not forecast to be processed over the next 12 months are classified as non-current inventory. At the reporting date
the Group carried out an impairment review of inventory and assessed that all inventory was carried at the lower of cost and net
realisable value.
Accounting Policies
Inventory
Ore stockpiles, concentrate, gold in circuit and gold bullion are physically measured or estimated and valued at the lower of cost and
net realisable value. The cost comprises direct materials, labour and transportation expenditure in bringing such inventories to their
existing location and condition, together with an appropriate portion of fixed and variable overhead expenditure based on weighted
cost incurred during the period in which such inventories were produced.
Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and the estimated
cost necessary to perform the sale. Inventories of consumable supplies and spare parts that are expected to be used in production are
valued at cost. Obsolete or damaged inventories of such items are valued at net realisable value.
Consumables and spare parts are valued at the lower of cost and net realisable value. Any provision for obsolescence is determined by
reference to specific stock items identified.
Bullion
Bullion comprises gold that has been delivered to an independent gold refinery prior to period end but which has not yet been
delivered into a sale contract.
46 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
15. EXPLORATION, EVALUATION AND DEVELOPMENT EXPENDITURE
During the year ended 30 June 2023 the Group incurred and capitalised the following on exploration, evaluation and development
expenditure:
Exploration and evaluation phase
Cost brought forward
Expenditure during the year
Impaired during the year
Transferred to development phase
Expensed during year
Balance at 30 June
Development phase
Cost brought forward
Transfer from exploration and evaluation phase
Transferred to production phase
Balance at 30 June
Production phase
Cost brought forward
Acquired in a business combination (Note 3)
Transfer from development phase
Expensed during the year
Expenditure during the year
Foreign currency translation adjustment
Rehabilitation asset adjustment
Amortisation expense
Balance at 30 June
Total
Impairment testing - Sugar Zone
30 June 2023
30 June 2022
$’000
16,850
14,429
(901)
(5,758)
(2,717)
21,903
-
5,758
(5,758)
-
385,296
-
5,758
(1,426)
141,307
1,322
318
(118,511)
414,064
435,967
$’000
11,772
8,307
-
(1,026)
(2,203)
16,850
96,452
1,026
(97,478)
-
159,936
95,928
97,478
-
131,565
3,872
(3,421)
(100,062)
385,296
402,146
At year end, a review of the recoverable amount of the Sugar Zone CGU was undertaken. The assessment of the fair value for Sugar
Zone was determined based on a market approach using Enterprise Value resource multiples for comparable listed ASX and TSX mining
companies. Using this method, which was supported by a third-party expert, it was determined that the range of comparable multiples
was A$138 – A$225/resource ounce. Given the carrying value of the Sugar Zone CGU was at the bottom end of this range, nil impairment
was required at 30 June 2023.
Accounting Policies
Exploration and evaluation expenditure
Exploration and evaluation expenditures are those expenditures incurred in connection with the exploration for and evaluation of minerals
resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Expenditure incurred
on activities that precede exploration and evaluation of mineral resources, including all expenditure incurred prior to securing legal rights to
explore an area, is expensed as incurred.
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. An ‘area of interest’ is an
individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit or has been
proved to contain such a deposit. These costs are carried forward only if they relate to an area of interest for which rights of tenure are
current and in respect of which:
·
·
such costs are expected to be recouped through successful development and exploitation or from sale of the area; and
exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable resources, and active and significant operations in, or relating to, this area
are continuing.
47
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation
to the area of interest. If costs do not meet the criteria noted above, they are written off in full against the profit or loss statement.
Exploration and evaluation assets are transferred to Development Phase assets once technical feasibility and commercial viability of
an area of interest is demonstrable. Exploration and evaluation assets are tested for impairment, and any impairment loss is recognised,
prior to being reclassified.
Impairment testing of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial
viability, or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
·
·
·
·
the term of exploration licence in the specific area of interest has expired during the reporting period or will expire in the near
future, and is not expected to be renewed;
substantive expenditure on further exploration and evaluation of mineral resources in the specific area are not budgeted or
planned;
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable
quantities of mineral resource and the decision was made to discontinue such activities in the specific area; or
sufficient data exists to indicate that, although development in the specific area of interest is likely to proceed, the carrying
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.
When a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger than the
area of interest.
Impairment testing of assets in the development or production phase
The carrying amounts of assets in the development or production phase are reviewed at each reporting date to determine whether
there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs of disposal
(FVLCD). In assessing FVLCD, the estimated future cash flows are discounted to their present value using a discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets
that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognised in the Statement of Profit or Loss. Impairment losses recognised in respect of cash-generating units
are allocated first to reduce the carrying amount of any goodwill and then to reduce the carrying amount of the other assets in the unit
(group of units) on a pro-rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised. An impairment loss in respect of goodwill is not
reversed.
Long term development and production phase assets that relate to unmined resources are assessed in light of current economic
conditions. Assumptions on the economic returns on and timing of specific production options may impact on the timing of
development of these assets. The carrying values of these assets are assessed where an indicator of impairment exists using a fair
value less cost to sell technique. This is done based on implied market values against their existing resource and reserve base and
an assessment on the likelihood of recoverability from the successful development or sale of the asset. The implied market values are
calculated based on recent comparable transactions within Australia converted to a value per ounce. This is considered to be a Level 3
valuation technique.
Exploration expenditure commitments
Exploration expenditure commitments represent tenement rentals and minimum spend requirements that are required to be met under
the relevant legislation should the Group wish to retain tenure on all its current tenements.
Mine properties and mining assets
Mine properties represent the acquisition cost and/or accumulated exploration, evaluation and development expenditure in respect of
areas of interest in which mining has commenced.
Mine development costs are deferred until commercial production commences. When commercial production is achieved, mine
development is transferred to mine properties, at which time it is amortised on a units of production basis based on ounces mined over
the total estimated resources related to this area of interest.
Significant factors considered in determining the technical feasibility and commercial viability of the project are the completion of a
feasibility study, the existence of sufficient resources to proceed with development and approval by the board of Directors to proceed
with development of the project.
48 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Underground development expenditure incurred in respect of mine development after the commencement of production is carried
forward as part of mine development only when substantial future economic benefits are expected, otherwise this expenditure is
expensed as incurred.
Deferred Stripping Costs
Stripping is the process of removing overburden and waste materials from surface mining operations to access the ore. Stripping costs are
capitalised during the development of a mine and are subsequently amortised over the life of mine on a units of production basis, where the
unit of account is ounces of gold mined. Stripping costs capitalised at year end are included in the Production phase in Note 15.
Reserves and Resources
Resources are estimates of the amount of gold product that can be economically extracted from the Group’s mine properties. In order
to calculate resources, estimates and assumptions are required about a range of geological, technical and economic factors, including
quantities, grades, production techniques, recovery rates, production costs, future capital requirements, short and long term commodity
prices and exchange rates.
Estimating the quantity and/or grade of resources requires the size, shape and depth of ore bodies to be determined by analysing
geological data. This process may require complex and difficult geological judgments and calculations to interpret the data.
The Group determines and reports ore resources under the Australian Code of Reporting for Mineral Resource and Ore Reserves (2004
and 2012), known as the JORC Code. The JORC Code requires the use of reasonable assumptions to calculate resources. Due to the
fact that economic assumptions used to estimate resources change from period to period, and geological data is generated during the
course of operations, estimates of resources may change from period to period. Changes in reported resources may affect the Group’s
financial results and financial position in a number of ways, including:
· asset carrying values may be impacted due to changes in estimates of future cash flows
· amortisation charged in the Statement of Profit or Loss may change where such charges are calculated using the units of
production basis
· decommissioning, site restoration and environmental provisions may change due to changes in estimated resources after
expectations about the timing or costs of these activities change
·
recognition of deferred tax assets, including tax losses.
16. PROPERTY, PLANT AND EQUIPMENT
Land &
Buildings
$’000
Note
Plant &
Equipment
Capital Work
In Progress
Total
$’000
$’000
$’000
Balance 1 July 2021
Additions
Acquired in a business combination
3
Transfers
Leased assets
Depreciation
Foreign currency translation
adjustment
Disposals
At 30 June 2022
Balance 1 July 2022
Additions
Transfers
Leased assets
Depreciation
Foreign currency translation
adjustment
Disposals
At 30 June 2023
16(a)
5
16(a)
5
7,409
-
54,550
6,716
-
(5,884)
805
-
63,596
63,596
-
3,328
-
(9,266)
355
-
58,013
114,440
38
45,617
60,099
18,197
(61,934)
804
(5,331)
171,930
171,930
-
28,482
12,728
(62,312)
273
(338)
150,763
59,982
15,074
4,301
(66,815)
-
-
276
(740)
12,078
12,078
46,580
(31,810)
-
-
27
-
26,875
181,831
15,112
104,468
-
18,197
(67,818)
1,885
(6,071)
247,604
247,604
46,580
-
12,728
(71,578)
655
(338)
235,651
49
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
16(a). RIGHT-OF-USE ASSETS
The Group leases mining equipment for the purposes of production and exploration activities. These leases run for a period of
approximately 1-3 years and may contain an option to renew the lease after that date. Leases that contain extension options are
exercisable by the Group and not the lessor. Where practicable, the Group seeks to include extension options in new leases to provide
operational flexibility. The Group has estimated that exercising of the extension options would result in an increase in lease liabilities
and right-of-use assets of $1.1 million.
Some leases provide for additional rent payments that are based on changes in local price indices. These are factored into the
calculation of minimum lease payments in determining the value of the right-of-use assets only when these changes become effective.
Information about leases for which the Group is a lessee is presented below:
Property, plant and equipment
Balance 1 July
Additions to right-of-use assets
Derecognition of right-of-use assets
Depreciation charge for the year
Balance 30 June
Accounting Policies
30 June 2023
30 June 2022
$’000
50,118
12,728
(85)
(24,767)
37,994
$’000
68,278
18,197
(5,331)
(31,026)
50,118
Items of plant and equipment are stated at their cost less accumulated depreciation and impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the
cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use,
and the costs of dismantling and removing the items and restoring the site on which they are located.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property, plant and equipment. The cost of replacing part of an item of property, plant and equipment is recognised in
the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and
its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or
loss as incurred.
17.
INVESTMENTS
Investments in listed entities – at fair value
Movements as follows:
Balance at 1 July
Acquisitions
Disposals
Change in fair value
Balance at 30 June
Accounting Policies
30 June 2023
30 June 2022
$’000
12,838
7,968
1,979
(2,986)
5,877
12,838
$’000
7,968
11,391
1,722
(404)
(4,741)
7,968
Financial assets designated at fair value through profit or loss comprise investments in equity securities.
A financial asset is classified at fair value through profit or loss if it is classified as held-for-trading or is designated as such on initial
recognition. Financial assets are designated at fair value through profit or loss if the Group manages such investments and makes
purchase and sale decisions based on their fair value in accordance with the Group’s documented risk management or investment
strategy. Attributable transaction costs are recognised in profit or loss as incurred. Financial assets are measured at fair value and
changes are recognised in the profit or loss.
The fair values of investments in equity securities are determined with reference to their quoted ASX closing price at balance date
(considered a Level 1 fair value measurement).
50 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
18. GOODWILL
Goodwill of $90.7 million was recorded following the Company’s merger with Doray Minerals Limited on 5 April 2019. The goodwill was
attributable to both financial synergies (as a result of the creation of a mid-tier gold company with two complementary gold camps
increasing market presence and liquidity) and operating synergies (expected to be achieved from integrating Doray into the Group’s
existing mining operations).
Impairment testing
Mount Monger and Deflector Operation
As goodwill does not generate cash flows independently of other assets, its carrying value was apportioned to two of the Group’s
operating CGUs as part of the 30 June impairment testing review. The allocation was made based on the relative market values of the
Silver Lake and Doray entities at the date of the merger as follows:
· Mount Monger Operation (MMO) 67% ($60.8 million)
· Deflector Operation 33% ($29.9 million)
In assessing whether each CGU (including its share of goodwill) has been impaired, its carrying amount is compared with its recoverable
amount. In accordance with the Group’s accounting policy, recoverable amount is assessed as the higher of fair value less costs of
disposal (FVLCD) and value in use. The Group has adopted FVLCD in its assessment, using discounted cash flows.
The key assumptions in addition to the life of mine plans used in the discounted cash flow valuation are the gold price, the Australian
dollar exchange rate against the US dollar and the discount rate.
Gold price and AUD:USD exchange rate assumptions are estimated by management, with reference to external market forecasts, and
updated at least annually. For this review, the forecast gold price was estimated at US$1,780–US$1,900/oz. with a forecast exchange
rate of US$0.68 to US$0.70 per A$1.00, based on broker consensus forecasts over the life of the mines. A discount rate of 6% was applied
to the post tax cash flows expressed in nominal terms. The discount rate was derived from the Group’s post tax weighted average cost
of capital (WACC). The impairment testing carried out at 30 June 2023 using these assumptions resulted in a nil impairment charge.
Changes to the forecast Australian dollar gold price may have an impact on the carrying value of a CGU in future periods. For example,
a A$400/ounce decrease in forecast AUD gold prices would result in a $10 million impairment to each of the MMO and Deflector CGUs,
assuming all other factors remain constant. The application of a 10% discount rate would not result in an impairment to either CGU.
Accounting Policies
Goodwill arising on acquisition of subsidiaries is measured at cost less accumulated impairment losses. At each reporting date, the Group
tests goodwill for impairment. Where the asset does not generate cash inflows independent from other assets and its value in use cannot
be estimated to be close to its fair value, the asset is tested for impairment as part of the cash generating unit (CGU) to which it belongs.
The Group considers each of its operating segments to be a separate CGU. If the carrying amount of an asset or CGU exceeds its
recoverable amount, the carrying amount is reduced to the recoverable amount and an impairment loss recognised in the Statement of
Profit or Loss. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal or value in use.
19. TRADE AND OTHER PAYABLES
Trade payables
Other accruals
Total
30 June 2023
30 June 2022
$’000
43,815
46,857
90,672
$’000
65,972
17,345
83,317
The Group’s exposure to liquidity risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 27.
Accounting Policies
Trade payables are recognised at the value of the invoice received from a supplier. They represent liabilities for goods and services
provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future
payments in respect of the purchase of these goods and services. The amounts are unsecured and generally paid between 30-45 days
of recognition.
51
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
20. DEFERRED REVENUE
Gold prepay facility
30 June 2023
30 June 2022
$’000
-
$’000
20,467
On 15 February 2022 the Company entered into a secured Gold Prepay Facility (“Facility”) with the Commonwealth Bank of Australia
(“CBA”), raising $30,572,000. Under the Facility, Silver Lake delivered a total of 11,928 ounces of gold to CBA between March 2022 and
February 2023 (994 ounces per month).
The Facility was secured by way of mining mortgages over the Mount Monger Operation and a general security interest over all assets
of Silver Lake and its wholly owned subsidiary Silver Lake (Integra) Pty Ltd. The facility was settled in full by February 2023.
Accounting Policies
Deferred revenue is recorded as a liability when the Company has received payment for goods (in this case bullion) not yet delivered to
the buyer. The upfront payment received is initially recognised as a liability and is then transferred to profit or loss as revenue in line with
the physical delivery of bullion to the customer.
21. LEASE LIABILITIES
Current
Lease liabilities
Non-current
Lease liabilities
Total
30 June 2023
30 June 2022
$’000
23,479
21,134
44,613
$’000
22,382
24,465
46,847
Payments made during the year under lease arrangements qualifying under AASB 16 Leases but were variable by nature and therefore
not included in the minimum lease payments used to calculate lease liabilities, totalled $169.9 million (FY22: $152.3 million). These include
payments for services, including labour charges, under those contracts that contained payments for the right-of-use of assets.
For the period ended 30 June 2023, the Group recognised $27.7 million (2022: $32.8 million) of lease liability repayments, $24.8 million
(2022: $31.0 million) of depreciation charges and $2.1 million (2022: $2.7 million) of interest costs in relation to these leases. Total cash
outflows for leases recognised under AASB 16 Leases totalled $27.6 million for the year (2022: $33.0 million).
Accounting Policies
The Group leases assets including properties and equipment. As a lessee, the Group previously classified leases as operating or
financial leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under
AASB 16 Leases, the Group recognises right of use assets and lease liabilities for some of these leases – i.e. they are on-Balance Sheet.
The Group presents right-of-use assets in ‘Property, plant and equipment’ together with assets that it owns. The Group presents lease
liabilities separately in the Balance Sheet.
In accordance with AASB 16 Leases, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified
asset for a period in exchange for consideration. At inception or on reassessment of a contract that contains a lease component, the
Group has elected not to separate non-lease components and will instead account for the lease and non-lease components as a
single lease component.
The Group recognises right-of-use assets at the commencement date of the lease and is initially measured at cost, and subsequently
at cost less any accumulated depreciation and impairment losses and adjusted for any changes to lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that cannot be readily determined, the Group’s incremental borrowing rate.
Generally, the Group uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest
cost on the lease liability and decreased by lease payments made. The carrying amount of lease liabilities is remeasured if there is
a modification to an index or rate, a change in the residual value guarantee, or changes in the assessment of whether a purchase,
extension or termination option will be exercised.
52 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
The lease payments include fixed monthly payments, variable lease payments and amounts expected to be paid under residual value
guarantees less any incentives received. Variable lease payments that do not depend on an index or rate are recognised as an expense
in the period it was incurred. The lease payment also includes the exercise price, or termination price, of a purchase option in the event
the lease is likely to be extended, or terminated, by the Group. The Group has applied judgement to determine the lease term for some
lease contracts in which it is a lessee that include renewal options. The assessment of these options will impact the lease term and
therefore affects the amount of lease liabilities and right-of-use assets recognised.
22. EMPLOYEE BENEFITS
Current
Liability for annual leave
Liability for long service leave
Total
Accounting Policies
(i). Defined Contribution Superannuation Funds
30 June 2023
30 June 2022
$’000
$’000
5,266
1,977
7,243
5,825
1,792
7,617
Obligations for contributions to defined contribution superannuation funds and pension plans are recognised as an expense in
profit or loss when they are incurred.
(ii). Other Long-Term Employee Benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned
in return for their service in the current and prior periods plus related on costs. The benefit is discounted to determine its present
value using a discount rate that equals the yield at the reporting date on Australian corporate bonds that have maturity dates
approximating the terms of the Group’s obligations.
(iii). Short-Term Benefits
Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations resulting from
employees’ services provided to reporting date and are calculated at undiscounted amounts based on remuneration wage and
salary rates that the Group expects to pay as at reporting date including related on-costs.
23. SHARE BASED PAYMENTS
Performance rights (equity settled)
Performance rights have been issued to the Managing Director and other eligible employees in accordance with long term incentive
plans approved by shareholders. Movements in Performance Rights are summarised as follows:
Balance at1
July 2022
Granted in
FY23
Converted
Lapsed
Balance at
30 June 2023
Vested &
exercisable at
30 June 2023
Total
8,932,251
10,949,024
(2,764,606)
(2,796,545)
14,320,124
245,427
These performance rights are subject to vesting conditions as outlined in section 5.3(c) of the Remuneration Report. Details of the
performance rights currently on issue are summarised in the following table:
Number of performance rights
Exercise price
Grant date
Vesting period
Expiry period
ASX Comparator Group
Valuation at grant date
Underlying 20 day VWAP
Volatility
Risk free rate
Expected dividends
FY21 Award1
FY22 Award
FY23 Award
1,798,937
$0.00
1 July 2020
4,598,672
$0.00
1 July 2021
10,949,024
$0.00
1 July 2022
1 July 2020 – 30 June 2023
1 July 2021 – 30 June 2024
1 July 2022 – 30 June 2025
15 years
15 years
15 years
DCN; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; RSG; SBM;
WGX; X64
DCN; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; RSG; SBM;
WGX; X64
CMM; EVN; GOR; NCM; NST;
OGC; PRU; RMS; RRL; SBM;
WAF; WGX
$0.917
$1.98
65%
0.13%
-
$1.205
$1.73
60%
0.20%
-
$0.778
$1.46
50%
3.01%
-
Note 1: On completion of the vesting period, only 157,217 of the FY21 Performance Rights had vested, with the balance lapsing due to performance hurdles
not being satisfied.
53
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
The fair value of the performance rights was measured using a hybrid employee share option pricing model (correlation simulation and
Monte Carlo model) and was calculated by independent consultants.
The total expense recognised in the Statement of Profit or Loss for all performance rights for the period ended 30 June 2023 was
$4,466,000 (FY22: $3,195,000).
Accounting Policies
Share-Based Payment Transactions
The grant-date fair value of equity-settled share-based payment awards granted to employees is generally recognised as an expense,
with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to
reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such
that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance
conditions at the vesting date. For share based payment awards with non-vesting conditions, the grant-date fair value of the share-
based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.
24. PROVISIONS
Closure and rehabilitation
Opening balance at 1 July
Acquired through a business combination
Accretion expense
Adjustment to provisions during the year
Rehabilitation spend
Closing balance at 30 June
Current provision
Non-current provision
Closing balance at 30 June
30 June 2023
30 June 2022
$’000
$’000
46,923
-
1,075
254
(159)
48,093
-
48,093
48,093
44,929
5,778
1,016
(3,243)
(1,557)
46,923
90
46,833
46,923
At year end a review of the Group’s closure and rehabilitation provision was undertaken using updated cost assumptions and updated
rehabilitation plans. As a result of this review the provision was increased by $254,000 (FY22: $3,243,000 decrease).
Accounting Policies
Provisions
A provision is recognised in the Balance Sheet when the Group has a present legal or constructive obligation as a result of a past event,
and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are
determined by discounting the expected future cash flows at a discount rate that reflects current market assessments of the time value
of money and, when appropriate, the risks specific to the liability.
Closure and Rehabilitation
The mining, extraction and processing activities of the Group normally give rise to obligations for site closure or rehabilitation.
The extent of work required, and the associated costs are dependent on the requirements of relevant authorities and the Group’s
environmental policies.
Provisions for the cost of each closure and rehabilitation program are recognised when the Group has a present obligation and it is
probable that rehabilitation/restoration costs will be incurred at a future date, which generally arises at the time that environmental
disturbance occurs. When the extent of disturbance increases over the life of an operation, the provision is increased accordingly.
Costs included in the provision encompass all closure and rehabilitation activity expected to occur progressively over the life of the
operation and at the time of closure, in connection with disturbances, as at the reporting date.
The timing of the actual closure and rehabilitation expenditure is dependent upon a number of factors such as the life and nature of
the asset, the operating licence conditions and the environment in which the mine operates. Expenditure may occur before and after
closure and can continue for an extended period of time dependent on closure and rehabilitation requirements.
Closure and rehabilitation provisions are measured at the expected value of future cash flows, discounted to their present value.
Significant judgements and estimates are involved in forming expectations of future activities and the amount and timing of the
associated cash flows.
54 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
When provisions for closure and rehabilitation are initially recognised, to the extent that it is probable that future economic benefits
associated with the rehabilitation, decommissioning and restoration expenditure will flow in the entity, the corresponding cost is
capitalised as an asset. The capitalised cost of closure and rehabilitation activities is recognised in exploration evaluation and mine
properties and is amortised accordingly. The value of the provision is progressively increased over time as the effect of discounting
unwinds, creating an expense recognised in finance expenses.
Closure and rehabilitation provisions are also adjusted for changes in estimates. Those adjustments are accounted for as a change in
the corresponding capitalised cost, except where a reduction in the provision is greater than the unamortised capitalised cost of the
related assets, where it is probable that future economic benefits will flow to the entity, in which case the capitalised cost is reduced to
nil and the remaining adjustment is recognised in the Statement of Profit or Loss.
Adjustments to the estimated amount and timing of future closure and rehabilitation cash flows are a normal occurrence in light of the
significant judgements and estimates involved. Factors influencing those changes include:
·
·
·
revisions to estimated reserves, resources and lives of operations;
regulatory requirements and environmental management strategies;
changes in the estimated costs of anticipated activities, including the effects of inflation and movements in
foreign exchange rates;
· movements in interest rates affecting the discount rate applied; and
·
the timing of cash flows.
At each reporting date, the closure and rehabilitation provision is remeasured to reflect any of these changes.
25. SHARE CAPITAL
Movements in issued capital
Balance as at 1 July 2021
Issue of shares – long term incentive plan
Transfer from reserves
Issues of shares – Harte Gold transaction (Note 3)
Buy back of share capital
Balance as at 30 June 2022
Transfer from reserves
Buy back of share capital
Balance as at 30 June 2023
All ordinary share rank equally and have no par value.
Accounting Policy
Issued Capital
Number
$’000
881,575,315
6,875,764
-
44,681,667
(778,164)
932,354,582
-
(2,610,249)
929,744,333
1,023,106
-
3,323
70,903
(1,064)
1,096,268
2,205
(3,037)
1,095,436
Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising
on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.
26. RESERVES
Equity settled share-based payment reserve
Foreign currency translation reserve
Balance as at 30 June
Accounting Policy
Equity settled share-based payment reserve
30 June 2023
30 June 2022
$’000
8,057
9,653
17,710
$’000
5,796
7,690
13,486
The equity settled share-based payment reserve is used to record the value of share-based payments and performance rights
provided to employees (including KMP) as part of their remuneration.
Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial information
of foreign operations.
55
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
27. FINANCIAL RISK MANAGEMENT
(a). Overview
This note presents information about the Group’s exposure to credit, liquidity and market risks, the objectives, policies and processes for
measuring and managing risk, and the management of capital.
The Board regularly reviews the use of derivatives and opportunities for their use within the Group. Exposure limits are reviewed by
management on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial
instruments, for speculative purposes.
The Board has overall responsibility for the establishment and oversight of the risk management framework. Management monitors and
manages the financial risks relating to the operations of the Group through regular reviews of the risks.
(b). Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group’s receivables from customers.
Presently, the Group undertakes gold mining, exploration and evaluation activities in Australia and Canada. At the balance sheet date,
there were no significant concentrations of credit risk.
(i). Cash and cash equivalents
The Group limits its exposure to credit risk by only investing with major Australian and Canadian financial institutions.
(ii). Trade and other receivables
The Group’s trade and other receivables relate to gold and concentrate sales, GST refunds and rental income.
The Group has determined that its credit risk exposure on all other trade receivables is low, as customers are considered to be
reliable and have short contractual payment terms. Management does not expect any of these counterparties to fail to meet
their obligations.
(iii). Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to
credit risk at the reporting date was:
Trade and other receivables
Cash and cash equivalents
Total
(c). Liquidity risk
Carrying Amount
2023
$’000
14,136
328,285
342,421
2022
$’000
15,078
304,298
319,376
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages
liquidity risk by maintaining adequate cash reserves from funds generated from operations and by continuously monitoring forecast and
actual cash flows.
To mitigate large fluctuations in the USD:AUD exchange rate as well as the USD denominated gold price, the Group has entered into
hedging programmes whereby future bullion sales are hedged at a predetermined AUD gold price. At 30 June 2023, the Company has a
total of 110,000 ounces of gold left to be delivered under these programs over the next 30 months at an average price of A$3,007/ounce.
The sale of gold under these hedges is accounted for using the ‘own use exemption’ under AASB 9 Financial Instruments and as such all
hedge revenue is recognised in the Statement of Profit or Loss and no mark to market valuation is performed on undelivered ounces.
56 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of
netting agreements:
30 June 2023
Trade and other payables*
Lease liabilities
Total
30 June 2022
Trade and other payables*
Gold prepay facility**
Lease liabilities
Total
Carrying
Amount
$’000
Contractual
Cash Flows
$’000
12 Months
or Less
$’000
1-2 years
2-5 years
$’000
$’000
90,672
44,613
135,285
83,317
20,467
46,847
150,631
90,672
45,912
136,584
83,317
-
54,646
137,963
90,672
34,937
125,609
83,317
-
20,654
103,971
-
8,135
8,135
-
-
23,397
23,397
-
2,840
2,840
-
-
10,595
10,595
* The carrying value at balance date approximates fair value
**The gold prepay facility was settled through the physical delivery of bullion
(d). Market risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, whilst optimising the return.
(i). Commodity risk
The Group’s exposure to commodity price risk arises largely from Australian dollar and Canadian dollar gold price fluctuations. The
Group’s exposure to movements in the gold price is managed through the use of Australian dollar gold forward contracts. The gold
forward sale contracts do not meet the criteria of financial instruments for accounting purposes on the basis that they meet the
normal purchase/sale exemption because physical gold will be delivered into the contract. Further information relating to these
forward sale contracts is included in Note 4. No sensitivity analysis is provided for these contracts as they are outside the scope of
AASB 9 Financial Instruments.
(ii).
Interest rate risk
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents and its interest-bearing liabilities), which is the
risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest-bearing financial
instruments. The Group does not use derivatives to mitigate these exposures.
Profile
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Fixed rate instruments
Lease liabilities
Variable rate instruments
Cash and cash equivalents
2023
$’000
44,613
2022
$’000
46,847
328,285
304,298
57
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change in
interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss after tax
by $3,283,000 (FY22: $3,043,000). This analysis assumes that all other variables remain constant.
(iii). Equity price risk
Equity investments are long-term investments that have been classified as financial assets at fair value through profit or loss.
(iv). Foreign exchange risk
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency
that is not the Group's functional currency. The Group generally does not hedge foreign exchange risks.
As at 30 June 2023, the Group held US$0.4 million in US dollar currency bank accounts (FY22: US$1.6 million), C$2.7 million in
Canadian dollar currency bank accounts (FY22: C$1.1 million) and had outstanding receivables of C$2.2 million relating to Sugar
Zone (FY22: C$4.6 million). An increase/decrease in AUD:USD and AUD:CAD foreign exchange rates of 10% will result in a $0.5 million
impact to net assets and pre-tax profit.
The Group is exposed to translation-related risks arising from the Sugar Zone Operation having a functional currency (CAD)
different from the Group’s presentation currency (AUD). An increase/decrease in AUD:CAD foreign exchange rates of 10% will result in
$11.1 million impact to net assets and equity reserves.
(e). Fair values
The carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and interest-bearing liabilities
is considered to be a fair approximation of their fair values. The carrying amounts of equity investments are valued at year end at their
quoted market price.
(f). Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business through future exploration and development of its projects. There were no changes in the Group’s
approach to capital management during the year. Risk management policies and procedures are established with regular monitoring
and reporting.
28. COMMITMENTS
The Group has $3,458,000 (FY22: $3,291,000) of commitments relating to minimum exploration expenditure on its various tenements and
$2,002,000 (FY22: $6,701,000) of capital commitments at 30 June 2023.
29. RELATED PARTIES
(a). Key Management Personnel compensation
Short-term employee benefits
Post-employment benefits
Other long-term benefits
Total
30 June 2023
30 June 2022
$
4,585,799
196,720
1,450,215
6,232,734
$
4,992,084
218,342
1,631,232
6,841,658
(b).
Individual directors and executives’ compensation disclosures
Information regarding individual Directors and Executive’s compensation and some equity instruments disclosures as permitted by
Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report.
During the current period 2,239,315 performance rights were awarded to key management personnel. See Note 23 and the Remuneration
Report for further details of these related party transactions.
58 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
30. GROUP ENTITIES
The Company controlled the following subsidiaries:
Subsidiaries
Country of
Incorporation
Ownership
Interest
2023
2022
Backlode Pty Ltd
Brandy Hill Iron Pty Ltd
Brandy Hill Iron SPV Pty Ltd
Central Infrastructure Pty Ltd
Central Infrastructure SPV Pty Ltd
Cue Minerals Pty Ltd
Deflector Gold Pty Ltd
Deflector Gold SPV Pty Ltd
Doray Gold Operations Pty Ltd
Egan Street Victoria Bore Pty Ltd
Gullewa Gold Project Pty Ltd
Gullewa Gold Project SPV Pty Ltd
Loded Pty Ltd
Meehan Minerals Pty Ltd
Murchison Resources Pty Ltd
MYG Tenement Holdings Pty Ltd
MYG Tenement Holdings SPV Pty Ltd
Paylode Pty Ltd
Silver Lake (Deflector) Pty Ltd
Silver Lake (Doray) Pty Ltd
Silver Lake (Egan Street) Pty Ltd
Silver Lake (Integra) Pty Ltd
Silver Lake (Rothsay) Pty Ltd
Roonela Pty Ltd
Silver Lake (SPV) Pty Ltd
Silver Lake Canada Inc
Silver Lake Ontario Inc
Accounting Policies
Subsidiaries
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Canada
Canada
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
-
100%
100%
Subsidiaries are entities controlled by the Group. The Group 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. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
31. JOINT OPERATIONS
As at 30 June 2023, the Group had no interest in any joint venture.
59
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
32. AUDITOR’S REMUNERATION
Audit services
Audit and review of financial statements – KPMG Australia
Audit and review of financial statements – KPMG Canada
Non-audit Services
Taxation services
Total
30 June 2023
30 June 2022
$
303,000
110,000
137,000
550,000
$
328,000
163,000
155,000
646,000
33. PARENT ENTITY
As at, and throughout the financial year ended 30 June 2023, the parent company of the Group was Silver Lake Resources Limited.
30 June 2023
30 June 2022
Results of the parent entity
Loss for the year
Total comprehensive loss for the year
Balance Sheet of parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Share capital
Reserves
Accumulated losses
Total equity
$’000
(35,126)
(35,126)
59,533
635,839
52,948
59,144
1,095,436
14,182
(532,923)
576,695
$’000
(58,503)
(58,503)
33,644
679,117
68,802
74,851
1,096,268
5,795
(497,797)
604,266
The parent entity has $1,772,000 (FY22: $1,716,000) of commitments relating to minimum exploration expenditure on its various tenements
and $492,000 (FY22: $778,000) capital commitments at financial year end.
34. SEGMENT REPORTING
The accounting policies used by the Company in reporting segments are in accordance with the measurement principles of applicable
accounting standards. The Group has the following reportable segments:
(i). Mount Monger Operation
(ii). Deflector Operation (including the Rothsay Project)
(iii). Sugar Zone Operation
60 Silver Lake Resources Limited Annual Report 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
The Mount Monger and Deflector operations are both located in Western Australia, with the Sugar Zone Operation located in Ontario,
Canada. The Mount Monger Operation produces gold bullion, the Deflector Operation produces gold bullion and gold-copper
concentrate, and the Sugar Zone Operation produces gold bullion and gold concentrate. Financial information for the reportable
segments for the years ended 30 June 2023 and 30 June 2022 is as follows:
30 June 2023
Revenues
EBITDA (excluding significant items)1
Mount
Monger
$’000
258,985
81,694
Deflector
Sugar Zone
Unallocated2
$’000
355,757
196,806
$’000
104,886
(3,594)
$’000
-
Total
$’000
719,628
(26,507)
248,399
PP&E & mine assets
128,840
272,472
270,306
Capital expenditure3
64,238
82,542
43,830
-
-
30 June 2022
Revenues
EBITDA (excluding significant items)1
Mount
Monger
$’000
269,204
93,209
Deflector
Sugar Zone
Unallocated2
$’000
326,733
189,757
$’000
38,629
2,109
$’000
-
(17,515)
PP&E & mine assets
107,145
296,865
245,740
671,618
190,610
Total
$’000
634,566
267,560
649,750
Capital expenditure3
47,816
77,864
21,456
-
147,136
1 A reconciliation between the statutory profit after tax and the Group’s EBITDA (excluding significant items) is tabled below
2 Unallocated items primarily comprise administration expenses
3 Capital expenditure includes $12.7 million of Right of Use asset additions as required under AASB 16 Leases (2022: $18.2 million)
Reconciliation of Statutory Profit after Tax to EBITDA (excluding
significant items) - unaudited
Statutory profit after tax:
Adjustments for:
Depreciation and amortisation
Income tax expense
Net finance costs (includes change in value of listed investments)
Business development adjustments (including gain on bargain Purchase in FY22)
Exploration expensed
Other
EBITDA (excluding significant items)
30 June 2023
30 June 2022
$’000
30,836
190,089
28,489
(6,876)
1,229
5,044
(412)
248,399
$’000
77,681
167,880
37,654
8,075
(27,924)
3,187
1,007
267,560
61
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
35. DEED OF CROSS GUARANTEE
The Company and its wholly owned subsidiary Silver Lake (Integra) Pty Ltd have entered into a Deed of Cross Guarantee under which
each company guarantees the debts of the other. By entering into the Deed of Cross Guarantee, Silver Lake (Integra) Pty Ltd has been
relieved from the Corporations Act 2001 requirement to prepare, audit and lodge a financial report and Directors’ report under ASIC
Corporations (wholly owned companies) Instrument 2016/785. The Consolidated Balance Sheet at 30 June for the members of the Deed
of Cross Guarantee is disclosed in the table below:
30 June 2023
30 June 2022
$’000
$’000
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Inventories
Exploration evaluation and development expenditure
Property, plant and equipment
Investments
Intercompany receivables
Deferred tax asset
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Interest bearing liability
Employee benefits
Closure and rehabilitation provision
Total current liabilities
Non-current liabilities
Lease liabilities
Closure and rehabilitation provision
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
62 Silver Lake Resources Limited Annual Report 2023
56,858
2,186
30,079
275
89,398
44,200
102,172
26,668
456,789
46,810
60,801
737,440
826,838
40,115
9,474
-
4,552
-
54,141
-
17,688
43,468
61,156
115,297
711,541
30,947
2,060
44,066
306
77,379
63,157
77,791
29,355
406,166
123,186
48,126
747,781
825,160
36,918
6,700
20,467
4,187
90
68,362
1,131
17,492
-
18,623
86,985
738,175
1,095,436
14,183
(398,078)
711,541
1,096,268
10,717
(368,810)
738,175
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
The Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2023 for the members of the
Deed of Cross Guarantee is disclosed in the table below:
30 June 2023
30 June 2022
Revenue
Cost of sales
Gross profit
Other income
Business combinations expenses
Exploration expensed
Administration expenses
Results from operating activities
Finance income
Finance expenses
Net finance income/(costs)
Profit/(loss) before income tax
Income tax expense
Loss profit for the year
$’000
258,985
(228,663)
30,322
545
-
(2,652)
(31,350)
(3,135)
6,271
(1,609)
4,662
1,527
(30,795)
(29,268)
$’000
269,204
(252,130)
17,074
247
(7,866)
(1,809)
(16,994)
(9,348)
77
(6,769)
(6,692)
(16,040)
(32,621)
(48,661)
36. SUBSEQUENT EVENTS
No events have arisen in the interval between the end of the financial year and the date of this report of a material and unusual nature
likely, in the opinion of the Directors of the Company, to significantly affect the operations of the Group, the results of those operations,
or the state of affairs of the Group, in future financial years.
63
ASX Additional Information
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement can be located on its website www.silverlakeresources.com.au.
SECURITIES
At 18 September 2023 the Company had on issue:
·
·
934,744,333 fully paid ordinary shares (16,876 holders); and
12,902,295 performance rights (352 holders).
DISTRIBUTION OF HOLDERS
Number of Ordinary Shares
Number of Holders
Percentage of Ordinary Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - and over
Total Holders
3,885
6,186
2,648
3,736
421
16,876
0.23
1.79
2.22
12.05
83.71
100.00
2,029 holders held less than a marketable parcel (<$500) of fully paid shares.
VOTING RIGHTS OF SECURITIES
Subject to any rights or restrictions for the time being attached to any class or classes of Shares (at present there is only one class of
Shares), at meetings of Shareholders of Silver Lake:
(a). each Shareholder is entitled to vote in person or by proxy, attorney or representative;
(b). on a show of hands, every person present who is a Shareholder or a proxy, attorney or representative of a Shareholder has one
vote; and
(c). on a poll, every person present who is a Shareholder or a proxy, attorney or representative of a Shareholder, in respect of each
Share held by that person or in respect of which that person is appointed a proxy, attorney or representative, has one vote for the
Share, but in respect of partly paid Shares, shall have such number of votes as bears the same proportion which the amount paid
(not credited) is of the total amounts paid and payable (excluding amounts credited).
Options and performance rights do not carry any voting rights.
64 Silver Lake Resources Limited Annual Report 2023
ASX Additional Information
SUBSTANTIAL SHAREHOLDERS
As at 18 September 2023 the substantial holders disclosed to the Company were:
Registered Holder
Beneficial Owner
Number of
Shares
Percentage of
Issued Shares
Bank of New York Mellon
Van Eck Vectors Gold Miners ETF (GDX)
98,625,834
10.58%
Various entities as set out in
Annexure D to a Notice of
Substantial Holder given to ASX
on 28 September 2022
Van Eck Vectors Junior Gold Miners ETF (GDXJ)
Van Eck Vectors Global Mining UCITS ETF (UCTGDIG)
Van Eck Vectors Gold Miners UCITS ETF (UCTGDX)
Van Eck Vectors Junior Gold Miners UCITS ETF
(UCTGDXJ)
DFA Australia Limited
52,313,574
5.00%
Dimensional Fund Advisors LP
Dimensional Fund Advisors Ltd.
Dimensional Ireland Limited
Dimensional Fund Advisors Canada ULC
DFA Canada LLC
Dimensional Fund Advisors Pte. Ltd
Dimensional Advisors Ltd.
Dimensional Holdings Inc.
Dimensional Holdings LLC
David Booth
Rex Sinquefield
65
ASX Additional Information
ASX Additional Information
TOP 20 HOLDERS OF QUOTED SECURITIES
Holder Name
Number Held
Percentage
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
JETOSEA PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CPU SHARE PLANS PTY LTD
BRIKEN NOMINEES PTY LTD
SANDHURST TRUSTEES LTD
GARRETT SMYTHE LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
MR RAYMOND JAMES ALLAN
PERTH SELECT SEAFOODS PTY LTD
MS AVRIL LOUISE JACKSON
20.
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
ON-MARKET BUY-BACK
There is no current on-market buy-back at the date of this report.
313,500,661
105,128,181
96,488,862
48,293,799
35,417,104
23,494,661
8,254,617
5,000,316
4,551,498
4,325,035
4,000,000
3,888,295
3,164,500
2,780,101
2,422,120
2,401,942
2,121,828
2,000,000
1,645,704
1,571,516
670,450,740
33.54
11.25
10.32
5.17
3.79
2.51
0.88
0.53
0.49
0.46
0.43
0.42
0.34
0.30
0.26
0.26
0.23
0.21
0.18
0.17
71.73
66 Silver Lake Resources Limited Annual Report 2023
S
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S
A
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A
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P
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2
0
2
3
Suite 4, Level 3
South Shore Centre
85 South Perth Esplanade
South Perth WA 6151
www.slrltd.com