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2023 Report2023 Annual Report
Stavely Minerals Limited
STAVELY MINERALS LIMITED
ABN 33 119 826 907
www.stavely.com.au
CONTENTS
CORPORATE DIRECTORY ............................................................................................................ 3
WHO WE ARE, OUR PURPOSE AND OUR VALUES ........................................................................ 4
SUSTAINABILITY ........................................................................................................................ 5
OPERATIONS REPORT ................................................................................................................ 8
DIRECTORS’ REPORT ................................................................................................................. 33
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS ................................................. 50
DIRECTORS’ DECLARATION ....................................................................................................... 51
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ......... 52
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .............................................................. 53
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................... 54
CONSOLIDATED STATEMENT OF CASH FLOWS ........................................................................... 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................... 56
INDEPENDENT AUDITOR’S REPORT ........................................................................................... 79
ADDITIONAL SHAREHOLDER INFORMATION ............................................................................. 83
TENEMENT SCHEDULE .............................................................................................................. 87
2023 Annual Report | Page 2
CORPORATE DIRECTORY
Directors
Christopher Cairns (Executive Chair and Managing Director)
Jennifer Murphy (Technical Director)
Amanda Sparks (Part-time Executive Director)
Peter Ironside (Non-Executive Director)
Robert Dennis (Non-Executive Director)
Company Secretary
Amanda Sparks
Registered and Principal Office
First Floor, 168 Stirling Highway
Nedlands Western Australia 6009
Telephone: 08 9287 7630
Web Page: www.stavely.com.au
Email: info@stavely.com.au
ABN: 33 119 826 907
Share Registry
Computershare Investor Services Pty Ltd
Level 17
221 St Georges Terrace
Perth Western Australia 6000
Telephone: 1300 850 505
Facsimile: 08 9323 2033
Solicitors
Steinepreis Paganin
Level 4, Next Building
16 Milligan Street
Perth Western Australia 6000
Bankers
ANZ Bank
32 St Quentins Avenue
Claremont Western Australia 6010
Stock Exchange Listing
ASX Limited
Level 40, Central Park, 152-158 St Georges Terrace
Perth Western Australia 6000
ASX Code: SVY
Auditors
BDO Audit (WA) Pty Ltd
Chartered Accountants
Level 9, Mia Yellagonga Tower
5 Spring Street
Perth Western Australia 6000
2023 Annual Report | Page 3
WHO WE ARE, OUR PURPOSE AND OUR VALUES
WHO WE ARE
An Australian ASX listed company focused on exploration and development of minerals to support a low carbon
future.
Our team has a track record of success through focusing on collaboration and quality exploration and
development.
OUR PURPOSE
To discover and develop the minerals needed for a sustainable low carbon future.
OUR VALUES
Integrity and Honesty
We conduct ourselves with strong moral and ethical behaviours.
We are open and transparent with all our stakeholders.
Health and Safety
We are committed to ensuring our employees, contractors and the
community can work and live in a safe and healthy way.
Respect and Diversity
We strive to ensure that every member of our workforce and our
stakeholders are treated fairly and with respect.
Social Performance
We respect human rights and engage meaningfully with
stakeholders. We seek to make a positive impact to the social and
economic development of the communities in which we operate.
Environment
We are committed to understanding and minimising the potential
impacts of our activities.
Technical Effectiveness
We create value by fostering technical effectiveness, cultivating a
collaborative approach to problem solving and encouraging
innovation.
2023 Annual Report | Page 4
SUSTAINABILITY
SOCIAL AND COMMUNITY
Stavely Minerals Limited recognises that responsible community engagement is a key part of our Company’s
exploration activities, and fundamental to Stavely’s future as a successful exploration and mineral development
company.
We have a commitment to the communities in which we operate, and consider that communication with all
stakeholders, including local residents, landowners, shareholders, employees, contractors and the broader
community is essential.
We are committed to regular, open and honest communication with the community so that local stakeholders
are consulted with regarding our exploration activities and given the opportunity to express any concerns they
might have.
Stavely Minerals recognises our ability to operate depends on treating all stakeholders with respect and fairness.
We seek to protect the environment and enrich the communities in which we work. Community engagement
works best where it is an ongoing cumulative process enabling relationships and trust to build and strengthen
over time and is essential for a viable future.
Our website has a dedicated Community section, which includes information sheets to assist our local
communities to understand how Stavely manages noise mitigation, rehabilitation of drill sites and fire
prevention, and provides information on the processes of mineral exploration and the stages of exploration to
mining.
Stavely Minerals hosts regular community information sessions in Victoria to keep the local landholders
informed of the Company’s exploration activities and future plans.
Stavely supports our local communities. We are a proud Gold Sponsor of the Glenthompson Dunkeld Football
and Netball Club and a sponsor of the Glenthompson Art Show. In addition the Company has contributed to
work to make the Dunkeld School Bus stop safer.
Stavely Minerals holding a community briefing
2023 Annual Report | Page 5
SUSTAINABILITY
PEOPLE
The health, safety and well-being of our people is essential to the success of Stavely and our community.
Inductions, training and being familiar with our Company policies form the basis of safety on site. The well-being
of our people is of the utmost importance, and as a result we provide first aid courses that include mental health.
As technology in the mining industry continues to increase, it is essential that our people are given the
opportunity to continue their professional development. Stavely brings experts to site to not only provide
technical consulting for our operations, but to also develop the technical skills of our people. We provide
opportunities for external training and technical conferences.
Where possible, Stavely employs its people from the local community. We are proud of the gender diversity
that we have on site in Victoria with 50% of employees being women.
A Stavely Minerals’ geologist inspecting a rock chip from an aircore drill program.
GOVERNANCE / RISK MANAGEMENT
We are proud of our strong governance within our Company, and we believe that this is reflected in the
reputation of our Board and management.
Our Board agenda always includes risk. We have implemented a detailed Risk Register that identifies key risks
for Stavely, including social, environmental and financial risks. Each risk is assigned to specific manager and the
risk is assessed for potential causes, impacts and current controls. The control effectiveness is determined, and
each risk is given a rating. Further controls that may be required are recorded with expected dates for
implementation.
Further details of our governance is included in our annual Corporate Governance Statement, and our Corporate
Governance section on our website.
2023 Annual Report | Page 6
SUSTAINABILITY
ENVIRONMENT
Stavely Minerals is committed to minimising the impact on land and fully rehabilitating farmland and the
environment immediately following its mineral exploration activities.
Prior to drilling of an exploration site, a photographic record is taken and any significant vegetation is identified
and fenced off.
All reasonable measures are taken to minimise the impact of the drilling operation on the environment.
On completion, the drill site is fully rehabilitated to as good as, if not better, than its previous state.
Our rehabilitation process involves:
• Cut any protruding drill collars to 40cm below ground level and plug the hole;
• Backfill hole and mound with surplus material to allow for settling;
• Restore original land contours of drill site;
• Remove all foreign material and samples and dispose of in an approved waste
facility;
•
Shallow rip of the site and associated access tracks (if required) to overcome soil
compaction; and
• Apply seed to achieve desired rehabilitation outcome (eg. pasture, crop, native
seed) if required.
Stavely works closely with the local communities when undertaking activities. In 2021,
Stavely undertook an airborne gravity survey over the Stavely Project. Prior to the survey,
our Stakeholder Relations Manager worked with the local shire councils to ensure that all
local landowners were made aware of this upcoming survey and who we are. We were
thanked publicly by the Wildwood Wildlife Shelter in Glenthompson as we were able to
reschedule the portion of the survey affecting them at the request of the shelter.
Our Commodities – The development and production of Stavely’s resources, primarily
copper in Victoria, and now including nickel in WA, is essential for the future of technology,
including electric vehicles, energy transformers and wind farms. Copper and Nickel can
significantly contribute towards a low carbon future. Copper is one of the few materials
that can be recycled, again and again, without any loss in performance. Recycled copper
can be used in the same way as primary (mined) metal. In addition, end-of-life products
(scrap) containing copper are much more likely to be collected for recycling because of
their residual economic value. Our mission - to discover and develop the copper (and
nickel) needed for a sustainable low-carbon future.
2023 Annual Report | Page 7
OPERATIONS REPORT
Overview
EXPLORATION
The Company’s exploration assets including the Stavely, Ararat and Yarram Park Projects are located in western
Victoria. Towards the end of the reporting period the Yarram Park Project was surrendered.
Due to the delays in commencing the field season as a result of the very wet ground conditions in Spring, the
summer months were very busy with the regional aircore and soil auger sampling programs being undertaken,
as well as the diamond drilling program at Thursday’s Gossan.
The Company’s focus during the year was to drill test the postulated position of the causative porphyry from
which the Cayley Lode mineralisation was derived and well as continue on from the previous year with the major
exploration program to test the identified regional target.
The deep porphyry target drilling program comprised four deep diamond drill holes drilled in a horizontal ‘fence’
across the downward projection of the plunge of the Cayley Lode.
The three diamond drill holes that were successfully completed all intersected zinc-rich mineralisation. These
holes are interpreted to have been drilled below the plunge of the high-grade copper-gold-silver Cayley Lode
and were targeting the causative porphyry responsible for the formation of the Lode. These holes did not
intercept the targeted porphyry.
Unfortunately, despite multiple attempts, a major structural zone has frustrated the Company’s efforts to
completed the fourth planned hole at Thursday’s Gossan, and with the onset of winter rains the drilling program
had to be terminated.
At the end of the year the team on-site, working with Dr Steve Garwin, identified a revised porphyry target that
has merit for immediate drill testing. Drilling for the deep porphyry will recommence as soon as ground
conditions permit.
The S41 prospect, which is emerging as a very exciting gold discovery opportunity, was one on the regional
targets identified during the previous year for follow-up reconnaissance exploration. A total of 19 targets were
identified through interpretation using the gravity gradiometer and aeromagnetic data in the prospective
volcanic belt segments beneath younger cover.
Aircore drilling at S41 in drill hole STAC115 returned
4m at 2.21g/t Au, 6.9g/t Ag, 0.10% Pb and 0.18% Zn from 96m, including:
o 2m at 3.92g/t Au, 9.3g/t Ag, 0.18% Pb and 0.31% Zn from 98m; and
S41 is a large hydrothermal alteration system and based on air-core drilling to date, appears to be a 2-kilometre
long phyllic alteration halo that has been overprinted by a high-level epithermal gold-silver system. The prospect
displays an overprint of a precious metal, base metal and arsenic/antimony pathfinder signature typical of an
epithermal gold-silver system.
The first diamond drill hole into the S41 prospect, conducted during the current year encountered a carbonate-
base metal-gold hydrothermal system.
Asa a ‘first look’ drill hole, STDD001 provided significant encouragement including assays of:
1m at 2.16g/t Au and 2.6g/t Ag from 282m drill depth; and
37m at 0.10g/t Au and 4.8g/t Ag from 320m.
These types of hydrothermal systems are amongst the most prolific styles of gold mineralisation in the South
West Pacific region.
The breccia-hosted systems have the potential for scale as they can be large, multi-phase systems. However,
they can be inconsistently mineralised with only certain phases bearing gold mineralisation which results in the
gold distribution being restricted to certain portions of the overall system, both laterally and vertically.
2023 Annual Report | Page 8
OPERATIONS REPORT
The next step at the S41 prospect is to map out the chemistry and carbonate distribution of this large
hydrothermal system to identify target zones for better-developed gold mineralisation.
During the year a detailed project review of the Carroll’s VMS deposit was conducted by external consultant, Dr
Bruce Gemmell. Based on the geologic/ geochemical characteristics of the Carroll’s deposit, Dr Gemmell agreed
with defining the mineralisation as a Besshi (or mafic-pelitic) VMS deposit and concluded that the Carroll’s
deposit fits into the lens/ blanket style VHMS deposit formed predominantly via sub-seafloor replacement.
Dr Gemmell recommended further exploration as there may be multiple copper-gold-silver mineralised lenses
at depth and across the favourable host rock package. There is significant scope for extension of known lenses
and for identification of additional parallel lenses of sulphide mineralisation.
CORPORATE
Black Range Joint Venture
In February 2023, Stavely Minerals Limited assigned its’ interest in the Stavely Farm-in and Joint Venture
agreement with Black Range Metals Pty Ltd, to its wholly owned subsidiary Energy Metals Australia Pty Ltd.
In May 2023, Energy Metals Australia Pty Ltd notified Black Range Metals Pty Ltd that the Participating Interests
of the Participants are:
(i)
(ii)
Energy Metals Australia Pty Ltd 84%; and
Black Range Metals Pty Ltd 16%.
Hawkstone Project
In May 2023 Stavely Minerals agreed to acquire the ~600km2 Hawkstone Nickel-Copper-Cobalt Project in the
West Kimberley region of Western Australia from Chalice Mining Limited.
The Hawkstone Project sits along strike from the Buxton Resources/IGO Joint Venture’s Double Magic Project,
which hosts the Merlin nickel-copper-cobalt discovery, located ~1km along strike from the Hawkstone tenement
boundary.
The Merlin nickel-copper-cobalt discovery is a high-tenor (average 8% nickel tenor) magmatic nickel style of
mineralisation, with individual assays of up to 8.14% nickel, 5.26% copper and 0.69% cobalt, hosted by the Ruins
Dolerite.
The Hawkstone Project includes ~30 kilometres of easterly strike continuation of the Ruins Dolerite, which is
highly prospective for nickel-copper-cobalt mineralisation.
The summary terms of the acquisition are that Stavely is acquiring Chalice Mining’s wholly-owned subsidiary,
North West Nickel, for consideration of $1.4 million of equivalent value in Stavely Minerals shares.
Capital Raising
At the end of June 2023 the Company had received binding commitments for a $3.55 million placement to
institutional and sophisticated investors at A$0.09 per share (approximately 39.44 million shares). The issue price
of A$0.09 per Placement Share represented a 21.7% discount to the last traded price of the Company’s ordinary
shares on the ASX of A$0.115 and a 21.1% discount to the 5-day volume weighted average price of the Company’s
ordinary shares as traded on the ASX of A$0.114 over the period up to and including 23 June 2023. One
Placement option was offered for every two placement shares at a strike price of $0.15 and an expiry of June
2024.
Upon Shareholder approval received on 11 August 2023, the Directors participated in the placement under the
same terms with proceeds received by Stavely of $100,000. The 24,277,766 Options were issued and quoted on
ASX on 29 August 2023 (including 4 million broker options) and are exercisable at $0.15 each with an expiry date
of 30 June 2024.
2023 Annual Report | Page 9
OPERATIONS REPORT
Funds raised from the Placement will be applied to the next phase of exploration and at the Company’s Stavely
Copper-Gold Project in Western Victoria, the Hawkstone Nickel-Copper-Cobalt Project in the East Kimberley
region of Western Australia and working capital.
Review of Operations
BACKGROUND
The Ararat and Stavely Projects are located approximately 200 kilometres west of Melbourne and are respectively
just west of the regional centre of Ararat and just east of the regional town of Glenthompson in Victoria (Figure
1).
As at the end of the year, the western Victorian Projects include retention licences with a total area of 109 square
kilometres (100% owned), an exploration tenement with a total area of 894 square kilometres (100% owned),
100 square kilometres of joint venture tenure (84% earned to date) and 37 square kilometres of tenement
application area (100% owned). The Yarram Park Project was surrendered in May 2023.
The Projects have excellent infrastructure and access with paved highways, port connection by railroad and a 62
MW wind farm located 5 kilometres from the Stavely Project. The primary land use is grazing and broad-acre
cropping.
Figure 1. Project location plan.
Regional Geology Western Victoria
The Ararat and Stavely Projects, while only 40 kilometres apart, are hosted within materially different geologic
domains (Figure 2).
The Ararat Project is hosted in the Stawell - Bendigo zone of the Lachlan Fold Belt and is comprised of Cambrian
age mafic volcanic and pelitic sedimentary units of the Moornambool Metamorphics which were
metamorphosed to greenschist to amphibolite facies during the Silurian period.
2023 Annual Report | Page 10
OPERATIONS REPORT
The Stavely Project is hosted in Cambrian age fault-bounded belts of submarine calc-alkaline volcanics, namely
the Mount Stavely Volcanics, structurally in contact with the older quartz-rich turbidite sequence of the
Glenthompson Sandstone and the Williamsons Road Serpentinite.
Figure 2. Geology of South-eastern Australia.
These sequences were deformed in the Late Cambrian Delamerian Orogeny. Seismic traverses and a recent study
by the Victorian Department of Economic Development, Jobs, Transport and Resources in western Victoria have
supported the interpretation of an Andean-style continental convergent margin environment for the
development of the buried Stavely Arc beneath the Stavely Volcanic Complex and environs (Schofield, A. (ed)
2018). This regional architecture is considered conducive to the formation of fertile copper / gold mineralised
porphyry systems (Crawford et al, 2003) as is the case with the younger Macquarie Arc in New South Wales,
which hosts the Cadia Valley and North Parkes copper-gold mineralised porphyry complexes.
The Lachlan Fold Belt and Delamerian sequences are in fault contact through large-scale thrusting along the east
dipping Moyston Fault (Cayley and Taylor, 2001).
Unconformably overlying both these domains by low-angle décollement is a structural outlier of the younger
Silurian fluvial to shallow marine sandstone to mudstone sequences of the Grampians Group.
2023 Annual Report | Page 11
OPERATIONS REPORT
Mineral Resources
The Ararat and Stavely Projects host Mineral Resources reported in compliance with the 2012 JORC Code:
The Total Mineral Resource Estimate for the Company is 28.3Mt at 0.75% copper, 0.11g/t gold and 3.5g/t silver
for a contained 210,000t of copper, 100,000oz gold and 3.2Moz silver and 2,400kt Zn (Table 1).
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 1. The Total Ararat and Stavely Projects Combined Mineral Resource Estimate.
Cut-
off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
1
1
21.5
6.8
0.61
1.2
Cont.
Metal
(Mlbs
Cu)
288
175
Grade
Cont.
Metal
Grade
Cont.
Metal
Grade
Cont.
Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
(Zn %)
(kt Zn)
0.10
0.1
67,301
32,797
3.1
4.7
2,153,972
1,043,839
0.3
0.2
28.3
0.75*
463
0.11*
100,000
3.5
3,200,000
0.2
8
16
24
Resource
Category
Indicated
Inferred
Total
Stavely
Minerals
*Note: Mineral Resource grades reported to 2 significant digits on the basis that the majority of the resources are in the higher-confidence
Indicated Resources category (76% by tonnes, 62% by contained copper)
(a) Ararat Project Mineral Resource
In the Ararat Project, the Carroll’s prospect (previously known as the Mount Ararat prospect) hosts a Besshi-
style VMS deposit with an estimated (using a 1% Cu lower cut-off) Total Mineral Resource of - 1.0Mt at 2.2%
copper, 0.4g/t gold, 0.2% zinc and 5.6g/t silver for a contained 22kt of copper, 13,900 ounces of gold, 2,400t
of zinc and 181,300 ounces of silver (Table 2).
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 2. The Carroll’s Mineral Resource Estimate.
Classification
Indicated
Inferred
SUBTOTALS
Oxidation
Oxide
Fresh
Oxide
Fresh
Oxide
Fresh
kt
-
260
131
617
131
878
GRAND TOTAL
1009
Ag g/t
-
Au g/t
-
Cu %
-
5.3
2.9
6.3
2.9
6.0
5.6
0.5
0.3
0.4
0.3
0.4
0.4
2.0
2.1
2.3
2.1
2.2
2.2
Zn % Ag oz
-
0.3
0.2
0.2
0.2
0.3
0.2
-
44.3
12.3
124.7
12.3
169.0
181.3
Au koz
-
Cu kt
-
Zn kt
-
3.9
1.3
8.7
1.3
12.6
13.9
5.3
2.7
14.1
2.7
19.3
22.0
0.8
0.2
1.4
0.2
2.2
2.4
Effective date of September 2021
Notes:
•
• Mineral Resources that are not Ore Reserves do not have demonstrated economic viability. The estimate of
Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues.
• Mineral Resources are reported at a block cut-off grade of 1% Cu.
• Mineral Resources are reported without any explicit RPEEE constraints, but reporting of all flagged
Inferred+Indicated material in the model is partially supported by SO studies undertaken on the fresh material.
Figures may not add up due to rounding.
•
(b) Stavely Project Mineral Resource
In the Stavely Project, the Thursday’s Gossan prospect, which includes the Cayley Lode and the chalcocite-
enriched blanket, hosts a Total Mineral Resource Estimate (using a 0.2% Cu grade lower cut-off for open pit
material and 1.0% Cu lower cut-off for underground material) of – 27.3Mt at 0.69% copper, 0.10g/t gold and
3.4 g/t silver for 416Mlbs of contained copper, 86,000 ounces of gold and 3Mt of silver (Table 3).
2023 Annual Report | Page 12
OPERATIONS REPORT
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 3. Thursday’s Gossan Total Mineral Resource Estimate.
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Indicated
Inferred
0.2
0.2
Total Thursday's Gossan
21.2
6.1
27.3
0.59
1.0
0.69*
Cont.
Metal
(Mlbs
Cu)
276
140
416
Grade
Cont.
Metal
Grade
Cont.
Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
0.09
0.12
63,122
23,000
0.10*
86,000
3.1
4.6
3.4
2,109,668
900,000
3,000,000
*Note: Mineral Resource grades reported to 2 significant digits on the basis that the majority of the resources are in the higher-confidence
Indicated Resources category (76% by tonnes, 62% by contained copper)
The initial Mineral Resource estimate for the Cayley Lode (using a 0.2% Cu cut-off for open pit and 1.0% cut-off
for underground) is 9.3Mt at 1.2% copper, 0.2g/t gold and 7.1g/t silver for 252Mlbs of contained copper,
65,000 ounces of gold and 2.1Mt of silver (Table 4).
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 4. Cayley Lode Initial Mineral Resource Estimate
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Cont.
Metal
(Mlbs
Cu)
Grade
Cont.
Metal
Grade
Cont. Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
Primary
Mineralisation
(OP)
Indicated
Inferred
Sub-Total Primary OP
Primary
Mineralisation
(UG)
Indicated
Inferred
0.2
0.2
1.0
1.0
Sub-Total Primary UG
Total Cayley Lode
5.87
1.04
134.4
0.23
43,407
1.7
7.6
-
1.7
1.7
9.3
1.3
1.1
-
1.8
1.8
1.2
49
183
-
69
69
252
0.2
0.2
-
0.2
0.2
0.2
11,000
54,338
11,000
11,000
7
9
1,321,074
500,000
7.4
1,808,158
-
6
6
330,000
330,000
65,000
7.1
2,100,000
At the Thursday’s Gossan prospect, a near surface secondary chalcocite-enriched blanket with an estimated
(using a 0.2% Cu grade lower cut-off) – 18Mt at 0.4% copper for 75kt of contained copper (Table 5).
Refer to ASX release dated 14 June 2022 for all criteria for sections 1, 2 and 3 of the JORC Code Table 1 and 2.
Table 5. Chalcocite- Enriched Blanket Mineral Resource Estimate.
Resource
Material
Resource
Category
Cut-off
Tonnes
Grade
(Cu %)
(Mt)
(Cu %)
Chalcocite
Indicated
Inferred
0.2
0.2
Sub-Total Chalcocite
15.3
2.7
18
0.42
0.4
0.41
Cont.
Metal
(Mlbs
Cu)
141.6
22
164
Grade
Cont.
Metal
Grade
Cont. Metal
(Au g/t)
(oz Au)
(Ag g/t)
(oz Ag)
0.04
0.02
0.04
19,715
1,700
21,000
1.6
1
1.6
788,594
87,000
900,000
2023 Annual Report | Page 13
OPERATIONS REPORT
Figure 3. Stavely, Yarram Park and Ararat Project location plan.
2023 Annual Report | Page 14
OPERATIONS REPORT
Stavely Project
The Stavely Project hosts several significant opportunities for discovery of porphyry copper-gold and VMS base-
metals +/- gold deposits (Figure 3).
During the year, the Company commenced a deep diamond drilling program targeting the downward projection
of the plunge of the Cayley Lode at the Thursday’s Gossan Prospect and completed aircore drilling and auger
sampling to test regional and near-resource opportunities.
The regional exploration initiative, comprising aircore drilling and auger soil sampling was conducted across the
Company’s 100%-owned Stavely Project and the Black Range Joint Venture tenement in western Victoria.
Thursday’s Gossan Porphyry Prospect
During the year a diamond drilling program targeting the causative porphyry responsible for the formation of
the Cayley Lode was undertaken. Four deep diamond holes were planned in a horizontal ‘fence’ across the
downward projection of the plunge of the Cayley Lode (Figure 4). The drill collar locations are shown in Figures
5, 6 and 7 and the collar details are given in Table 6.
The drilling has proven to be very challenging with only three (SMD183, SMD185 and SMD187) of the 4 planned
holes having been successfully completed. The southern-most hole
in the panel of 4 holes
(SMD184/SMD184W1) failed due to extremely difficult drilling conditions and the subsequent re-drill of this hole
(SMD186/SMD186W1) also failed for the same reason.
The three completed holes intersected zinc-rich mineralisation consistent with a number of previous holes
drilled below the plunge of the high-grade copper-gold-silver Cayley Lode.
Despite four attempts (two holes and two wedges), the south-easternmost diamond drill hole, which was
designed to test the high-priority deep porphyry target, could not be progresses through a major structural zone
to the target depth.
Towards the end of the year porphyry consultant Dr Steve Garwin visited site to review, together with the Stavely
Mineral’s geology team, the recently completed diamond drill holes at Thursday’s Gossan. It was Dr Garwin’s
opinion that the porphyry target to the south of the Cayley Lode has been sufficiently tested. Stemming from
the site-based review a very compelling new porphyry target at the Drysdale prospect has been identified.
Table 6. Thursday’s Gossan Prospect – Collars – July 2022 to June 2023
Thursday’s Gossan Prospect – Cayley Lode Collar Table
MGA 94 zone 54
Hole id
Hole Type
East
North
Dip/
Azimuth
RL
(m)
Total
Depth (m)
Comments
SMD183
SMD184
DD
DD
642130.7
5835945
-56/60
265.8
848.7
642442.8
5835597
-57/57
SMD184W1
DD Wedge
642662.8
5835597
-57/62
274
274
354.3
411.1
Hole failed to reach target depth
Wedge failed to reach target depth
SMD185
SMD186
SMD187
DD
DD
DD
642210.9
5835811
-57/63
267.9
888.7
642459.1
5835578
-57/65
274.4
531.2
Re-drill of SMD184 - failed
642352.4
5835719
-54/67
269.9
841.5
2023 Annual Report | Page 15
OPERATIONS REPORT
Figure 4. Schematic diagram showing the south-east plunge of the high-grade copper-gold Cayley Lode mineralisation, the imprecise
location of a porphyry believed to be driving the mineralisation and the four deep drill holes (notional position) seeking to identify the
source porphyry.
2023 Annual Report | Page 16
OPERATIONS REPORT
Figure 5. Thursday’s Gossan prospect – drill collar location plan.
2023 Annual Report | Page 17
OPERATIONS REPORT
Figure 6. Thursday’s Gossan prospect – drill collar location plan over aeromagnetic image.
2023 Annual Report | Page 18
OPERATIONS REPORT
Figure 7. Cayley Lode long-section drill hole pierce points showing location of both upper and lower intersections
from SMD182. Note the peripheral base-metal / precious metal intercepts along strike and beneath the
plunge of the well-developed copper-gold-silver lode-style mineralisation. This zonation is characteristic of
Magma, Arizona lode-style mineralised systems.
Regional Exploration
During the year, the Company completed aircore drilling and auger sampling programs as part of a pivotal new
phase of exploration being undertaken at the Stavely Project following the completion of an extensive review of
regional and near-resource discovery opportunities last year. Aircore drilling was conducted at the Junction 3,
Drysdale, Northern Flexure, Fairview East, S41 and S29 prospects (Figure 8). The S41 and Northern Flexure
prospects returned significant results and are discussed in detail below.
Infill soil auger sampling was completed at the Northern Flexure, Drysdale, Junction 1, Junction 3, Stavely West
and Fairview extension prospects.
S41 Prospect
The S41 prospect was identified by interpretation of Stavely Minerals’ proprietary Falcon Gravity Gradiometer©
data in conjunction with the public domain regional aeromagnetic data (Figures 8, 9 and 10).
During the year an initial diamond hole, STDD001 was drilled at the S41 prospect to follow up anomalous gold
and silver results from the aircore drilling program completed earlier in the year. Results from the aircore drilling
included:
Aircore drill hole STAC0115:
4m at 2.21g/t Au, 6.9g/t Ag, 0.10% Pb and 0.18% Zn from 96m, including:
o 2m at 3.92g/t Au, 9.3g/t Ag, 0.18% Pb and 0.31% Zn from 98m; and
2m at 0.47g/t Au and 3.1g/t Ag from 140m to end-of-hole
2023 Annual Report | Page 19
OPERATIONS REPORT
Aircore drill hole STAC0121:
2m at 0.11g/t Au, 0.12% Cu and 10.1g/t Ag from 80m drill depth
Aircore drillhole STAC0125:
10m at 0.42% Zn, 0.16% Pb and 2.4g/t Ag from 58m drill depth; and
6m at 0.20g/t Au, 0.18% Cu and 2.2g/t Ag from 100m
Diamond drill hole STDD001 intersected a hydrothermal breccia at ~180m drill depth and remained in breccia
to the end of hole at 405m drill depth (Figure 11). Importantly, the outer margin of the breccia pipe to the
south-west remains untested.
The S41 breccia pipe is a blind discovery under ~60m of Tertiary basalt cover. While the gold grades intersected
in this first diamond drill hole completed into the 2 kilometre-long S41 prospect are modest, there is much to
be encouraged by, notably:
•
•
•
•
•
•
The breccia system is spatially large and there is potential for ‘scale’.
These breccia-hosted carbonate-base metal-gold systems are notoriously inconsistent in the
distribution of gold mineralisation. Figure 12 shows the uneven distribution of gold mineralisation at
the Kidston gold deposit.
The system is poly-phase, which means there have been several phases of brecciation and
mineralisation – in other words, it’s a big plumbing system.
It demonstrates an efficient metal precipitation mechanism – the very fine-grained nature of the
sulphides and the abundance of carbonate minerals indicates effective mixing of downward drawn
cooler carbonate-rich meteoric waters with hot upwelling metal-rich fluids from a magmatic source at
depth (Figure 13).
The observed carbonate minerals include the manganese-carbonate rhodochrosite, which indicates the
level of exposure could be in the ‘Goldilocks’ zone for gold precipitation – too shallow and cool would
display Fe-carbonate (Siderite) and too deep and hot would be dominated by calcite.
There is gold in the system as evidenced by:
2m at 3.92g/t Au, 9.3g/t Ag, 0.18% Pb and 0.31% Zn from 98m drill depth in aircore drill hole
STAC0115; and
1m at 2.16g/t Au and 2.6g/t Ag; and
37m at 0.10g/t Au and 4.8g/t Ag from 320m drill depth in diamond drill-hole STDD001.
Both the aircore drilling and diamond drill hole STDD001 at S41 were co-funded by the Victorian
Government’s Target Minerals Exploration Initiative and Stavely Minerals is grateful for, and wishes to
acknowledge, the Victorian Government’s on-going support for mineral exploration.
2023 Annual Report | Page 20
OPERATIONS REPORT
Figure 8. Regional Exploration Targets over Aeromagnetic.
2023 Annual Report | Page 21
OPERATIONS REPORT
Figure 9. S41 prospect gravity image with aircore and diamond drill hole collar locations.
2023 Annual Report | Page 22
OPERATIONS REPORT
Figure 10. S41 prospect aeromagnetic image with aircore and diamond drill hole collar locations.
2023 Annual Report | Page 23
OPERATIONS REPORT
Figure 11. S41 Prospect – STDD001 Schematic Cross Section.
2023 Annual Report | Page 24
OPERATIONS REPORT
Figure 12. Cross section of the Kidston breccia-hosted gold deposit showing the distribution of gold mineralisation (yellow) associated
with a vertical metals zonation. Note that gold mineralisation is spatially restricted and associated with specific phases of
brecciation and mineralisation. (Au-BM = gold and base metals, Ank-py = ankerite and pyrite) (After G. Morrison, 2007).
2023 Annual Report | Page 25
OPERATIONS REPORT
Figure 13. Derivation of high- and low-sulphidation epithermal fluids. Note the location of the S41 prospect in an intermediate
location between the porphyry and low-sulphidation epithermal Au-Ag mineralisation. The Cayley lode is also shown in its
conceptual location. (After Corbett and Leach, 1998: Southwest Pacific Rim Gold-Copper Systems, SEG Special Publication
Number 6).
Northern Flexure Prospect
The Northern Flexure prospect is located approximately 2km north-west of the Cayley Lode. An interpreted fault
slice of the Cayley Lode footwall serpentinised ultramafic unit is similarly in fault contact with the hanging-wall
volcano-sedimentary sequence at the Northern Flexure prospect. Soil auger sampling conducted during the
previous year identified patchy arsenic, silver and molybdenum anomalism.
During the year first-pass reconnaissance air-core drilling was conducted on two lines to test the ultramafic
contact (Figure 14 and 15). Drill-hole STAC0063 returned very strong silver mineralisation from shallow depth:
20m at 33.2g/t Ag from 12m drill depth, including
o 2m at 169g/t Ag from 12m
is associated with
Silver mineralisation
ultramafic/serpentinite contact.
iron-stained quartz vein
fragments proximal
to
the
Follow-up drilling is subject to a work plan application.
2023 Annual Report | Page 26
OPERATIONS REPORT
Figure 14. Northern Flexure prospect aircore drill collar locations.
2023 Annual Report | Page 27
OPERATIONS REPORT
Figure 15. Northern Flexure prospect aircore drill section.
Black Range Joint Venture Project
During the year an extensive REE anomaly of up to 0.24% TREO+Y was identified at the Narrapumelap Prospect
by wide-spaced (400m x 400m) soil auger testing south of the Lexington Prospect (Figure 16).
A first-pass aircore line of five drill-holes was completed at the Narrapumelap Prospect targeting the REE
anomaly (Figure 17). The best result from this drilling was exactly the same as the original auger soil anomaly,
with 2m at 0.24% TREO+Y from 8m depth in drill-hole STAC0099 (Figure 18). All of the five air-core drill holes at
the Narrapumelap REE prospect were drilled into weathered granodiorite. Consequently, the Narrapumelap
prospect is likely an ionic-clay style of rare earths related to weathering of the granodiorite.
Subsequent infill soil auger sampling was conducted on a 200m by 200m or 100m by 100m spacing at the
Narrapumelap REE prospect. The infill auger samples returned a peak value of 0.17% TREO+Y and indicted that
the location of the line of air-core holes was not ideal.
Yarram Park Project
The Yarram Park Project is located within an area where interpretation of regional aeromagnetic data has
identified an offset portion of the Bunnagul Belt (another volcanic belt located to the west of the Stavely Belt),
beneath the Quaternary cover (Figure 19). Both the Mount Stavely Belt and the Bunnagul Belt are considered to
be highly prospective for intrusive-related porphyry copper-gold and diatreme-hosted gold mineralisation.
Maiden drilling in 2017 confirmed the existence of the right host rocks with the presence of distal porphyry-style
alteration.
2023 Annual Report | Page 28
OPERATIONS REPORT
During the previous year the Toora West target was tested with diamond drilling, which confirmed the presence
of porphyry-style mineralisation, albeit with apparently only a single pulse of porphyry mineralisation which is
considered insufficient to produce an economic deposit.
The Toora West prospect is “blind”, being located beneath 30m of younger transported cover, and demonstrates
that Stavely Minerals’ targeting process has successfully identified mineralised systems undercover.
At the end of the year the three exploration licences which comprised the Yarram Park Project were surrendered.
Figure 36. Narrapumelap REE Prospect.
2023 Annual Report | Page 29
OPERATIONS REPORT
Figure 47. Narrapumelap Prospect – Aircore Collar Locations over Aeromagnetic Image.
2023 Annual Report | Page 30
OPERATIONS REPORT
Figure 18. Narrapumelap REE Project – Schematic Aircore Drill Section.
Ararat Project
During the year Dr Gemmell, a VMS consultant, undertook a desktop study to review the geology,
geochemistry, and exploration potential of the Carroll’s VMS deposit (previously Known as the Mt Ararat VMS
Deposit) and district. Dr Gemmell also conducted a site visit to inspect the core and undertake a field trip to
the deposit and surrounding area.
Based on the geologic/ geochemical characteristics, Dr Gemmell concluded that the Carroll’s deposit can be
classified as a Besshi (or mafic-pelitic) VMS deposit and fits into the lens/blanket style of VMS deposit formed
predominantly via sub-seafloor replacement.
Dr Gemmell did not find any evidence of a sea floor mound or significant stringer zones. He concluded that the
ore lens formed via sub-seafloor replacement of host stratigraphy. Dr Gemmell observed that the ore lenses
appeared to be thinning at depth and towards the edges.
Dr Gemmell considered the best chance of increasing the size of the Carroll’s deposit to be the discovery of
another lens within the prospective package of rocks. He recommended deep drilling followed by downhole
EM.
VMS deposits tend to form in clusters in a district and Dr Gemmell considered there to be good potential to
find additional ore lenses at Carroll’s (deeper) or along strike within the prospective belt of host rocks.
2023 Annual Report | Page 31
OPERATIONS REPORT
JORC Compliance Statement
The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is
based on information compiled by Mr Chris Cairns, a Competent Person who is a Fellow of the Australian Institute of
Geoscientists (#2862) and a Fellow of the Australasian Institute of Mining and Metallurgy (#990900). Mr Cairns is a full-time
employee of the Company. Mr Cairns is Executive Chair and Managing Director of Stavely Minerals Limited and is a
shareholder and option holder of the Company. Mr Cairns 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 Cairns consents to the inclusion in the report of the matters based on his information in the form and context in
which it appears.
The information in this Annual Report regarding Mineral Resource Estimates is extracted from the report entitled ‘Standout
Initial Mineral Resource Estimate for the Cayley Lode’ reported to the ASX on 14 June 2022 and is available to view on
www.asx.com.au; ticker SVY, and, www.stavely.com.au. Mr Cairns was the compiling Competent Person for the 14 July 2022
Mineral Resource report. The Mineral Resource was reviewed for the annual report by Mr Christopher Cairns in September
2023. Mr Cairns 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 Cairns consents to the inclusion in the report of
the matters based on his information in the form and context in which it appears.’ The Company confirms that it is not aware
of any new information or data that materially affects the information included in the original market announcement and, in
the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The
Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially
modified from the original market announcement.’
The respective Mineral Resources estimate technical reports are available for review or download at www.stavely.com.au
under the technical Data tab.
ASX Listing Rule 5.21 Compliance
In compoliance with ASX Listing Rule 5.21, Stavely Minerals requires an annual review of its Mineral Resources to coincide
with the Company’s Annual Report. This annual review is conducted by Mr Christopher Cairns, the Company’s Chair and
Managing Director. Mr Cairns 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 Cairns has relied upon
the contributions of other Competent Persons in their respective roles in estimating the Company’s Mineral Resources as
detailed, with the respective consents, in an ASX announcement dated 14 June 2022.
The Company’s governance policy with respect to its Mineral Resources estimates is to have them completed by well-respected
external consulting firms with both input and review by the Company’s technical team. As the process is a collaborative effort,
the Company seeks multiple Competent Person consents for various contributions to the Mineral Resources estimation
process.
Previously Reported Information: The information in this report that references previously reported exploration results is
extracted from the Company’s ASX market announcements released on the date noted in the body of the text where that
reference appears. The previous market announcements are available to view on the Company's website or on the ASX website
(www.asx.com.au). The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements. The Company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original market announcements.
Bibliography
Cayley, R.A and Taylor, D.H., 2001, Ararat: 1:100 000 map area geological report. Geological Survey of Victoria Report 115.
Crawford, A.J., Cayley, R.A., Taylor, D.H., Morand, V.J., Gray, C.M., Kemp. A.I.S., Wohlt, K.E., Vandenberg, A.H.M., Moore,
D.H., Maher, S., Direen, N.G., Edwards, J., Donaghy, A.G., Anderson, J.A., and Black, L.P., 2003, Neoproterozoic and
Cambrian continental rifting, continent-arc collision and post-collisional magmatism in Evolution of the Palaeozoic
Basement. Geological Society of Australia, Sydney, Australia, pages 73 -93.
Schofield, A. (ed) 2018, Regional geology and mineral systems of the Stavely Arc, western Victoria. Record 2018/02.
Geoscience Australia, Canberra.
2023 Annual Report | Page 32
DIRECTORS’ REPORT
Your Directors present their report for the year ended 30 June 2023.
DIRECTORS
The names and particulars of the Directors of the Company in office during the financial year and up to the date
of this report were as follows. Directors were in office for the entire year unless otherwise stated.
Christopher Cairns
B.Sc (Hons)
Executive Chair and Managing Director (Appointed 23 May 2006, appointed Chair 14 September 2018)
Mr Christopher Cairns completed a First Class Honours degree in Economic Geology from the University of
Canberra in 1992. Mr Cairns has extensive experience having worked for:
• BHP Minerals as Exploration Geologist / Supervising Geologist in Queensland and the Philippines
• Aurora Gold as Exploration Manager at the Mt Muro Gold Mine in Borneo
•
•
LionOre as Supervising Geologist for the Thunderbox Gold Mine and Emily Anne Nickel Mine drill outs
Sino Gold as Geology Manager responsible for the Jinfeng Gold Deposit feasibility drillout and was
responsible for the discovery of the stratabound gold mineralisation taking the deposit from 1.5Moz to
3.5Moz in 14 months.
Mr Cairns joined Integra Mining Limited in March 2004 and as Managing Director oversaw the discovery of three
gold deposits, the funding and construction of a new processing facility east of Kalgoorlie transforming the
company from explorer to gold producer with first gold poured in September 2010. In 2008 Integra was awarded
the Australian Explorer of the Year by Resources Stocks Magazine and in 2011 was awarded Gold Miner of the
Year by Paydirt Magazine and the Gold Mining Journal.
In January 2013, Integra was taken over by Silver Lake Resources Limited for $426 million (at time of bid) at
which time Mr Cairns resigned along with the whole Integra Board after having successfully recommended
shareholders accept the Silver Lake offer.
Mr Cairns is a Fellow of the Australian Institute of Geoscientists, a Fellow of the Australian Institute of Mining
and Metallurgy, a member of the JORC Committee and a member of the Society of Economic Geologists and
Chair of the Australian Prospectors and Miners Hall of Fame.
Other directorships of listed companies in the last three years: E79 Gold Mines Limited.
Jennifer Murphy
B.Sc(Hons), M.Sc
Executive Technical Director (Appointed 8 March 2013)
Ms Jennifer Murphy completed a First Class Honours Degree in Geology in 1989, and subsequently a Master of
Science Degree in 1993 at the University of Witwatersrand in South Africa. Ms Murphy joined Anglo American
Corporation in 1993 as an exploration geologist working in Tanzania and Mali. In 1996, she immigrated to
Australia and joined Normandy Mining Limited, working initially as a project geologist in the Eastern Goldfields
and Murchison Greenstone Provinces and afterwards was responsible for the development and management of
the GIS and administration of the exploration database.
Between 2004 and 2007, Ms Murphy provided contract geological services to a range of junior exploration
companies. Ms Murphy joined Integra Mining Limited in 2007, initially as an administration geologist, and in
2010 the role was expanded to that of corporate geologist. In 2013 Ms Murphy joined Stavely Minerals as part
of the management team to provide technical and geological expertise. Ms Murphy is a member of the
Australian Institute of Geoscientists and has a broad range of geological experience ranging from exploration
program planning and implementation, GIS and database management, business development, technical and
statutory, and ASX reporting, as well as corporate research and analysis and investor liaison.
Other directorships of listed companies in the last three years: None.
2023 Annual Report | Page 33
DIRECTORS’ REPORT
Amanda Sparks
B.Bus, CA, F.Fin
Part-Time Executive Director (Appointed 14 September 2018) and Company Secretary (Appointed 7 November
2013)
Ms Amanda Sparks is a Chartered Accountant and a Fellow of the Financial Services Institute of Australasia.
Ms Sparks has over 30 years of resources related financial experience, both with explorers and producers.
Amanda brings a range of important skills to the Board with her extensive experience in financial management,
corporate governance and compliance for listed companies.
Ms Sparks is a member of the Company’s Audit and Risk Committee.
Other directorships of listed companies in the last three years: Godolphin Resources Limited.
Peter Ironside
B.Com, CA
Non Executive Director (Appointed 23 May 2006)
Mr Peter Ironside has a Bachelor of Commerce Degree and is a Chartered Accountant and business consultant
with over 30 years’ experience in the exploration and mining industry. Mr Ironside has a significant level of
accounting, financial compliance and corporate governance experience including corporate initiatives and
capital raisings. Mr Ironside has been a Director and/or Company Secretary of several ASX listed companies
including Integra Mining Limited and Extract Resources Limited (before $2.18Bn takeover) and is currently a
non-executive director of E79 Gold Mines Limited.
Mr Ironside is a member of the Company’s Audit and Risk Committee and a member of the Nomination and
Remuneration Committee.
Other directorships of listed companies in the last three years: E79 Gold Mines Limited.
Robert (Rob) Dennis
B.App.Sc, FAusIMM
Non Executive Director (Appointed 24 May 2021)
Mr Robert (Rob) Dennis is a mining engineer with over 45 years’ experience in the nickel, copper, gold and
alumina industries. Rob is a skilled leader and has extensive base metals and precious metals operational,
technical and project development experience. Past positions include CEO and MD of Poseidon Nickel Limited,
COO for the Independence Group (IGO) where he was responsible IGO’s nickel, copper, zinc and gold
operations including overseeing the development and commissioning of IGO’s Nova Nickel Project.
Prior to that, he held positions including COO Aditya Birla Minerals Ltd where he managed the expansion and
development of the Nifty Copper Project in the North West of Western Australia and the Mt Gordon operation
in North Queensland, General Manager Project Development for Lionore Australia, General Manager
Operations for Great Central Mines and Chief Mining Engineer for Western Mining Corporation.
Mr Dennis is Chair of the Company’s Audit and Risk Committee and Chair of the Company’s Nomination and
Remuneration Committee.
Other directorships of listed companies in the last three years: None.
2023 Annual Report | Page 34
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
During the financial year, 4 meetings of directors were held. The number of meetings attended by each
director during the year is as follows:
Board of Directors
Audit and Risk Committee
Nomination and
Remuneration Committee
Meetings
Held**
4
4
4
4
4
Meetings
Attended
4
4
4
4
4
Meetings
Held**
*
*
2
2
2
Meetings
Attended
*
*
2
2
2
Meetings
Held**
*
*
*
-
-
Meetings
Attended
*
*
*
-
-
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
* Not a member of the Committee
** Number of meetings held where the Director was a member of the Board or Committee.
Subsequent to year end, Stavely Minerals established a separate Nomination and Remuneration Committee
comprising Non-Executive Independent director, Rob Dennis as Chair, Non-Executive Director Peter Ironside as
a member and a consultant as an invitee for all meetings.
In addition to formal Board meetings, four of the Directors work in the same office and hold discussions on a
regular basis.
DIRECTORS’ INTERESTS IN SHARES, OPTIONS AND PERFORMANCE RIGHTS
The following table sets out each director’s relevant interest in shares, options and performance rights of the
Company as at the date of this report.
Name of
Director
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
DIVIDENDS
Number of
Shares
(direct and
indirect)
8,686,379
5,632,815
2,704,539
32,643,538
644,444
Number of
Listed
Options at
$0.15,
expiry
30/06/2024
55,555
55,555
166,666
277,778
-
Number of
Unlisted
Options at
$1.20,
expiry
31/10/2023
1,000,000
850,000
575,000
575,000
-
Number of
Unlisted
Options at
$0.71,
expiry
30/11/2024
1,000,000
850,000
575,000
575,000
300,000
Number of
Unlisted
Options at
$0.22,
expiry
30/11/2025
1,500,000
1,250,000
1,000,000
700,000
700,000
Number
of
Perform
ance
Rights
250,000
175,000
-
-
-
No dividends were paid or declared during the year. The Directors do not recommend payment of a dividend.
ENVIRONMENTAL REGULATIONS
The Group’s environmental obligations are regulated by the laws of Australia. The Group has a policy to either
meet or where possible, exceed its environmental obligations. No environmental breaches have been notified
by any governmental agency as at the date of this report.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that
there are no current reporting requirements, but may be required to do so in the future.
2023 Annual Report | Page 35
DIRECTORS’ REPORT
CORPORATE INFORMATION
Corporate Structure
Stavely Minerals Limited is a limited liability company that is incorporated and domiciled in Australia. Stavely
Minerals Limited has prepared a consolidated financial report incorporating the entities that it controlled during
the financial year as follows:
Stavely Minerals Limited
Stavely Pastoral Pty Ltd
Energy Metals Australia Pty Ltd
Subsequent to year end, the Group included:
North West Nickel Pty Ltd
Strategic Metals Pty Ltd
-
-
-
-
-
parent entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
Principal Activity
The Group’s principal activity was mineral exploration for the year ended 30 June 2023. There were no
significant changes in the nature of the principal activities during the year.
Operations review
Refer to the Operations Review on pages 8 to 32.
Summary of Financial Position, Asset Transactions and Corporate Activities
A summary of key financial indicators for the Group, with prior period comparison, is set out in the following
table:
Cash and cash equivalents held at year end
Net loss for the year after tax
Included in loss for the year:
Exploration costs
Year
Year
30 June 2023
30 June 2022
$
$
1,654,418
922,218
(8,858,665)
(13,971,797)
(6,208,929)
(10,493,200)
Net fair value loss on financial assets at fair value through profit or loss
-
(1,117,161)
Equity-based payments
Basic loss per share from continuing operations
Net cash used in operating activities
Net cash used in investing activities
Net cash (used in)/from financing activities
During the year:
(372,888)
(802,995)
(2.77) cents
(5.35) cents
(7,262,054)
(11,954,730)
(2,561,251)
(846,846)
10,555,505
(96,168)
•
•
•
•
Expenditure on exploration totalled $6,208,929 (2022: $10,493,200).
Financing costs of $212,932 (2022: $8,472).
Share based payments expense for options and performance rights granted of $372,888 (2022:
$802,995).
Placement
26,666,667 shares were issued on 12 July 2022, pursuant to a placement to sophisticated and
institutional investors. Gross proceeds were $4,000,000.
•
Share Purchase Plan
35,326,537 shares were issued on 5 August 2022, pursuant to a Share Purchase Plan (SPP). Gross
proceeds raised under the SPP were $5,298,980.
2023 Annual Report | Page 36
DIRECTORS’ REPORT
•
Property Purchase and Loan Funds
On 15 August 2022, the Company settled on the property purchase of for a 524-acre farm, residence
and an additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned
Stavely Copper-Gold Project in western Victoria.
$1.6 million of loan funding was used towards the acquisition of the land. The funding was provided
by two parties to Stavely’s wholly owned subsidiary, Stavely Pastoral Pty Ltd, as follows:
Under a loan agreement with Legal Mortgage Holdings Pty Ltd (LMH), LMH advanced $1 million on the
following terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum term of 12 months
Secured via a 1st mortgage on the land with a guarantee provided by Stavely Minerals Limited
Under a loan agreement with Anthony Cairns, an unrelated party, Anthony Cairns advanced $0.6 million
on the following terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum interest term of 12 months
Unsecured, with a guarantee provided by Stavely Minerals Limited
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs of the Group during the financial year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Group anticipates to continue its exploration activities.
2023 Annual Report | Page 37
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
The Directors present the 2023 Remuneration Report, outlining key aspects of Stavely’s remuneration policy and
framework, together with remuneration awarded this year.
The report is structured as follows:
A. Key management personnel (KMP) covered in this report
B. Remuneration policy, link to performance and elements of remuneration
C. Contractual arrangements of KMP remuneration
D. Remuneration of key management personnel
E.
Equity holdings and movements during the year
F. Other transactions with key management personnel
G. Use of remuneration consultants
H. Voting of shareholders at last year’s annual general meeting
A. KEY MANAGEMENT PERSONNEL (KMP) COVERED IN THIS REPORT
For the purposes of this report key management personnel of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Group, directly or
indirectly, including any Director (whether Executive or otherwise).
Key Management Personnel during the Year
Christopher Cairns
Jennifer Murphy
Amanda Sparks
Peter Ironside
Robert Dennis
Other
Mark Mantle
–
–
–
–
–
–
Executive Chair and Managing Director (from 23 May 2006,
Chair from 14 September 2018)
Executive Technical Director (from 8 March 2013)
Part-time Executive Director (from 14 September 2018) and
Company Secretary
Non-Executive Director (from 23 May 2006)
Non-Executive Director (from 24 May 2021)
Chief Operating Officer (from 20 January 2022)
B. REMUNERATION POLICY, LINK TO PERFORMANCE AND ELEMENTS OF REMUNERATION
Remuneration Governance
The Board is responsible for ensuring that the Company’s remuneration structures are aligned with the long-
term interests of Stavely and its shareholders.
In September 2023, the Board established a Nomination Remuneration Committee. The primary purpose of the
Committee is to support and advise the Board in fulfilling its responsibilities to Shareholders, including reviewing
and approving executive remuneration and reviewing and approving any equity based plans and other incentive
schemes. The following policies are in place for Directors’ and Executives’ remuneration.
Nomination and Remuneration Committee
The members of the Nomination and Remuneration Committee are Robert Dennis (Chair of the Committee, an
independent non-executive Director), Peter Ironside (non-executive Director) and an independent recruitment
consultant. The charters for the Committee can be found on Stavely’s website in the Corporate Governance
Plan, and these charters define the Nomination and Remuneration Committee’s function, composition and
mode of operation, authority and responsibilities.
The primary function of the Nomination and Remuneration Committee is to assist the Board in fulfilling its
responsibilities relating to:
•
•
assessment, nomination and recruitment of potential board members;
recommendations of the appointment and removal of members of the Board;
2023 Annual Report | Page 38
DIRECTORS’ REPORT
•
•
review of board succession plans; and
evaluation of the board’s performance.
The Nomination and Remuneration Committee shall have responsibility for proposing candidates for
consideration by the Board to fill vacancies or additions to the Board and for devising criteria
for Board membership and for reviewing membership of the Board, including;
• assessment of the necessary and desirable competencies of Board members;
• review of Board succession plans to maintain an appropriate balance of skills, experience and
expertise’
• as requested by the Board, evaluation of the Board’s performance and, as appropriate, developing
and implementing a plan for identifying, assessing and enhancing Director competencies;
• recommendations for the appointment and replacement of Directors; and
• such other matters as the Board may refer to the Committee from time to time.
Remuneration Philosophy
The performance of the Group depends upon the quality of its Directors and Executives. To prosper, the Group
must attract, motivate and retain highly skilled Directors and Executives.
To this end, the Group embodies the following principles in its remuneration framework:
•
•
•
provide competitive rewards to attract high calibre Executives;
link Executive rewards to shareholder value; and
in the near future, will establish appropriate, demanding performance hurdles in relation to variable
Executive remuneration.
As Stavely is an exploration company, not yet generating income, a greater use of equity-based remuneration is
considered appropriate both to preserve capital and to retain and incentivise the Directors.
In accordance with best practice corporate governance, the structure of non-executive director and executive
compensation is separate and distinct.
Non-Executive Directors’ Remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract
and retain Directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
Non-executive Directors’ fees are paid within an aggregate limit which is approved by the shareholders from
time to time. Retirement payments, if any, are agreed to be determined in accordance with the rules set out in
the Corporations Act as at the time of the Director’s retirement or termination. Non-executive Directors’
remuneration may include a portion consisting of options and/or performance rights, as considered appropriate
by the Board, which are subject to shareholder approval in accordance with ASX listing rules. The option
incentive portion is targeted to add to shareholder value by having a strike price considerably greater than the
market price at the time of granting.
The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is
apportioned amongst Directors is reviewed annually. The Board considers the amount of Director fees being
paid by comparable companies with similar responsibilities and the experience of the Non-executive Directors
when undertaking the annual review process. The aggregate remuneration for non-Executive Directors is
currently $250,000 per annum approved by Shareholders with the adoption of the Company’s Constitution on
7 November 2013.
2023 Annual Report | Page 39
DIRECTORS’ REPORT
Executive Remuneration
Objective
The Group aims to reward Executives with a level and mix of remuneration commensurate with their position
and responsibilities within the Group and so as to:
•
•
•
reward Executives for company, and individual performance;
ensure continued availability of experienced and effective management; and
ensure total remuneration is competitive by market standards.
Structure
In determining the level and make-up of Executive remuneration, the Board negotiates a remuneration to reflect
the market salary for a position and individual of comparable responsibility and experience. Remuneration is
regularly compared with the external market by participation in industry salary surveys and during recruitment
activities generally. If required, the Board may engage an external consultant to provide independent advice in
the form of a written report detailing market levels of remuneration for comparable Executive roles.
Remuneration consists of a fixed remuneration and short and long-term incentive portions as considered
appropriate.
Fixed Remuneration - Objective
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to
the position and is competitive in the market. Fixed remuneration is reviewed annually by the Board and the
process consists of a review of Group and individual performance, and relevant comparative remuneration in
the market. As noted above, the Board may engage an external consultant to provide independent advice.
Fixed Remuneration - Structure
The fixed remuneration is a base salary or monthly consulting fee.
Variable Pay – Short and Long-Term Incentives - Objective
The objective of short and long-term incentives is to reward Executives in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As Stavely is an exploration company, there are usually
no performance hurdles attached to equity awards. The Board however may include an incentive portion that
is payable based upon attainment of objectives related to the Executive’s job responsibilities. The objectives will
vary, but are to be targeted to relate directly to the Group’s business and financial performance and thus to
shareholder value.
Variable Pay — Short and Long-Term Incentives – Structure
Short and long-term incentives granted to Executives are delivered in the form of options and/or performance
rights. The option and performance rights are incentives aimed to motivate Executives to pursue the growth and
success of the Group within an appropriate control framework and demonstrate a clear relationship between
key Executive performance and remuneration. Director options and performance rights are granted at the
discretion of the Board and approved by shareholders. Performance hurdles may be attached and the Board
determines appropriate vesting periods to provide rewards over a period of time to key management personnel.
During the year, no performance related cash payments were made.
Variable Pay — For 2022/2023
The Board, excluding the Executive Directors, established criteria for Performance Rights for Executive Directors,
Christopher Cairns and Jennifer Murphy, and Chief Operating Officer, Mark Mantle, for the 2022/2023 year. The
Board considers Performance Rights are an appropriate form of incentive as it provides incentive milestones for
the Performance rights to be satisfied. Milestones were based on criteria relevant to the Executive, which may
include share price targets and other Company’s internal goals, eg ESG performance and securing government
funding. The Performance Rights for the Executive Directors, together with quantum and criteria, received
Shareholder approval on 11 November 2022. In addition, Options were granted to Executive Directors for
2022/2023, with a retention period prior to vesting. These Options received Shareholder approval on 11
November 2022.
2023 Annual Report | Page 40
DIRECTORS’ REPORT
C. CONTRACTUAL ARRANGEMENTS OF KMP REMUNERATION
On appointment to the board, all non-executive directors enter into a service agreement with the Company in
the form of a letter of appointment. The letter summarises the board policies and terms, including
compensation, relevant to the office of director.
Remuneration and other terms of employment for the executive directors and the other key management
personnel are also formalised in service agreements. The major provisions of the agreements relating to
remuneration are set out below.
Director Name
Term of agreement
Christopher Cairns
Commenced 22/1/2014 (varied effective
1/11/2017, 1/12/2019 & 1/7/2021)
Jennifer Murphy
Commenced 22/1/2014 (varied effective
1/11/2017, 15/10/2018, 31/12/2019 &
1/7/2021)
Base annual salary
exclusive of
statutory
superannuation at
30/6/2023
Termination
benefit
$340,000
12 months
$260,000
12 months
Amanda Sparks
Ongoing, subject to re-elections
$100,000
None
Peter Ironside
Ongoing, subject to re-elections
Robert Dennis
Ongoing, subject to re-elections
$50,000
None
$50,000
None
Other KMPs
Term of agreement
Base annual
salary exclusive
of statutory
superannuation
at 30/6/2023
Termination
benefit
Mark Mantle
Commenced 20 January 2022
$320,000
12 months
2023 Annual Report | Page 41
DIRECTORS’ REPORT
D. REMUNERATION OF KEY MANAGEMENT PERSONNEL
Details of the remuneration of each key management personnel of the Group, including their personally-related
entities, during the year were as follows:
Short Term
Long Term
Post
Employment
Share Based
Cash salary,
directors fees,
consulting fees,
insurances and
movement in
current leave
provisions
$
345,992
331,676
287,073
285,875
100,000
100,000
50,000
50,000
50,000
50,000
310,384
139,897
1,143,449
957,448
Year
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Directors
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
Other KMPs
Mark Mantle
TOTAL
Movement in
non-current
leave provisions
$
Superannuation
$
Total Cash
and
Provisions
$
Options/
Performance
Rights (1)
$
Total including
share based
payments
$
-
-
-
-
-
-
-
-
-
-
(385)
148
(385)
148
25,292
23,568
25,292
23,568
10,500
10,000
5,250
5,000
5,250
5,000
25,292
9,820
96,876
76,956
371,284
355,244
312,365
309,443
110,500
110,000
55,250
55,000
55,250
55,000
335,291
149,865
110,870
164,700
86,409
139,995
44,000
94,703
30,800
94,703
30,800
44,434
20,000
-
482,154
519,944
398,774
449,438
154,500
204,703
86,050
149,703
86,050
99,434
355,291
149,865
1,239,940
322,879
1,562,819
1,034,552
538,535
1,573,087
(1) Equity based payments. These represent the amount expensed for options and performance rights granted and vested in
the year.
Options granted to Directors Christopher Cairns and Jennifer Murphy vested upon remaining employed as at 30
June 2023. The Performance Rights granted to Directors Christopher Cairns and Jennifer Murphy, and Chief
Operating Officer Mark Mantle had various vesting conditions as disclosed on the next page.
Performance hurdles were not attached to remuneration options granted to Peter Ironside, Amanda Sparks or
Robert Dennis as these options were to provide an incentive component of remuneration to motivate and
reward the performance of the recipients and to provide a cost-effective way for the Company to remunerate,
which allows the Company to spend a greater proportion of its cash reserves on exploration than it would if
alternative cash forms of remuneration were given.
2023 Annual Report | Page 42
DIRECTORS’ REPORT
Share-based Compensation
During the year, the following options and performance rights were granted as equity compensation benefits to
Directors and other Key Management Personnel.
2023
OPTIONS
Directors
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
Other KMPs
M Mantle
Number of
Unlisted Options
at $0.22,
expiry 30/11/2025
Vesting Date of
Options
Value* per option
at grant date
$
1,500,000
1,250,000
1,000,000
700,000
700,000
30/06/2023
30/06/2023
11/11/2022
11/11/2022
11/11/2022
-
-
0.044
0.044
0.044
0.044
0.044
-
2023
PERFORMANCE
RIGHTS
Directors
C Cairns
Number of
Performance
Rights
Value* per right at
grant date
$
250,000
0.1194
C Cairns
250,000
0.0997
J Murphy
175,000
0.1194
J Murphy
175,000
0.0997
Vesting Condition
That the Company’s Share price reaches a 30-
day VWAP equal to or greater than 25.0 cents
per Share for any 30 consecutive trading days,
on or before 30 November 2023.
That the Company’s Share price reaches a 30-
day VWAP equal to or greater than 40.0 cents
per Share for any 30 consecutive trading days,
on or before 30 November 2023.
That the Company’s Share price reaches a 30-
day VWAP equal to or greater than 25.0 cents
per Share for any 30 consecutive trading days,
on or before 30 November 2023.
That the Company’s Share price reaches a 30-
day VWAP equal to or greater than 40.0 cents
per Share for any 30 consecutive trading days,
on or before 30 November 2023.
Other KMPs
M Mantle
125,000
0.16
Remain as an employee as at 31 March 2023
The purpose for the issue of the Options and Performance Rights is to provide an additional incentive
component in the remuneration package for the Directors and Executives to align the interests with those of
Shareholders, to motivate and reward the performance of the recipients of the Options and Performance Rights
and to provide a cost effective way from the Company to remunerate the Directors and Executives, which will
allow the Company to spend a greater proportion of its cash reserves on exploration than it would if alternative
cash forms of remuneration were given to the Executives.
The issue of these Director options and performance rights was approved by Shareholders at the Company’s
Annual General Meeting held on 11 November 2022.
* Value at grant date has been calculated in accordance with AASB 2 Share-based Payment. The assessed fair
values of the options and performance rights granted to Directors on 11 November 2022 were determined using
the Hoadley Trading & Investment Tools ES02 option valuation model, taking into account the exercise price,
term of option, the share price at grant date, expected price volatility of the underlying share, expected dividend
yield and the risk-free interest rate for the term of the option. The expected future volatility is based on historical
volatility over one, two and three year trading periods. The assessed fair values performance rights granted on
11 November 2022 were determined using the Hoadley Trading & Investment Tools Barrier1 trinomial option
valuation model with the market conditions (barrier prices) included in the valuations.
2023 Annual Report | Page 43
DIRECTORS’ REPORT
The inputs to the models used were:
Grant date - Directors
11/11/2022
11/11/2022
11/11/2022
11/11/2022
Spot price ($)
Exercise price ($)
Barrier price ($)
Vesting date
Options -
Directors
Options -
Directors
Performance
Rights -
Directors
Performance
Rights -
Directors
0.14
0.22
N/A
0.14
0.22
N/A
0.14
Nil
0.25
0.14
Nil
0.40
30/06/2023
immediately
No later than
30/11/2023*
No later than
30/11/2023
Expiry date
30/11/2025
30/11/2025
15/11/2027
15/11/2027
Expected future volatility (%)
Risk-free rate (%)
Dividend yield (%)
Value Each ($)
Number Granted
Valuation Method
* Vested in February 2023
65
3.16
-
0.044
65
3.16
-
0.044
2,750,000
2,400,000
65
3.34
-
0.1194
425,000
65
3.34
-
0.0997
425,000
ES02
ES02
Trinomial
Trinomial
Grant date – Other KMPs
30/09/2022
Performance
rights – Chief
Operating
Officer
0.16
Nil
31/03/2023
Upon vesting
N/A
0.0
-
0.16
125,000
Market Price at
Grant Date
100%
Spot price ($)
Exercise price ($)
Vesting date
Expiry date
Expected future volatility (%)
Risk-free rate (%)
Dividend yield (%)
Value Each ($)
Number Granted
Valuation Method
Probability
Shares issued to Key Management Personnel on exercise of compensation options
During the year ended 30 June 2023, no shares were issued to Key Management Personnel on exercise of
compensation options.
2023 Annual Report | Page 44
DIRECTORS’ REPORT
E. EQUITY HOLDINGS AND MOVEMENTS DURING THE YEAR
(a) Shareholdings of Key Management Personnel
30 June 2023
Directors
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
Other KMPS
M Mantle
Balance at
beginning of the year
Exercise of Vested
Performance
Rights
Other Net change
during the year
Balance at
end of the year
8,032,268
5,146,705
2,171,206
31,887,982
444,444
-
47,682,605
250,000
175,000
-
-
-
293,000
199,999
200,000
200,000
200,000
8,575,268
5,521,704
2,371,206
32,087,982
644,444
125,000
550,000
-
125,000
1,092,999
49,325,604
(b) Option holdings of Key Management Personnel
30 June 2023
Directors
C Cairns
J Murphy
A Sparks
P Ironside
R Dennis
Other KMPs
M Mantle
Balance at
beginning of
the year
Granted as
remuneration
Lapsed
during the
year
Balance at
end of the
year
Exercisable
2,750,000
1,500,000
(750,000)
3,500,000
3,500,000
2,250,000
1,250,000
(550,000)
2,950,000
2,950,000
1,525,000
1,000,000
(375,000)
2,150,000
2,150,000
1,525,000
700,000
(375,000)
1,850,000
1,850,000
550,000
700,000
(250,000)
1,000,000
1,000,000
300,000
-
-
300,000
300,000
8,900,000
5,150,000
(2,300,000)
11,750,000
11,750,000
(c) Performance Right holdings of Key Management Personnel
30 June 2023
Directors
C Cairns
J Murphy
Other KMPs
M Mantle
Balance at
beginning of
the year
Granted as
remuneration
Vested and
Exercised
during the
year
Balance at
end of the
year
Exercisable
-
-
-
-
500,000
(250,000)
350,000
(175,000)
250,000
175,000
125,000
(125,000)
-
975,000
(550,000)
425,000
-
-
-
-
2023 Annual Report | Page 45
DIRECTORS’ REPORT
F. OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Mr Peter Ironside, Director, is a shareholder and director of Ironside Pty Ltd. Ironside Pty Ltd is a shareholder of
the 168 Stirling Highway Syndicate, the entity which owns the premises the Company occupies in Western
Australia. During the year an amount of $134,903 (net of GST) was paid/payable for office rental and variable
outgoings (2022: $142,213, net of GST).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of E79 Gold Mines Limited (“E79
Gold”). Mr Chris Cairns, Director, is a shareholder and non-executive chair of E79 Gold. E79 Gold sub-leases
office space in the premises the Company occupies. During the year an amount of $32,430 (net of GST) (2022:
$27,656) was paid/payable by E79 Gold to the Company for reimbursement of office rental and associated
expenses.
G. USE OF REMUNERATION CONSULTANTS
No remuneration consultants were engaged by the Company during the year.
H. VOTING OF SHAREHOLDERS AT LAST YEAR’S ANNUAL GENERAL MEETING
The Company received 78.33% of ‘yes’ votes for its remuneration report for the 2022 financial year and did not
receive any specific feedback at the AGM or throughout the year on its remuneration practices.
End of Audited Remuneration Report.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company has paid a premium to insure the Directors and Officers of the Company and its controlled
entities. Details of the premium are subject to a confidentiality clause under the contract of insurance.
The liabilities insured are costs and expenses that may be incurred in defending civil or criminal proceedings
that may be brought against the officers in their capacity as officers of entities in the Company.
SHARES UNDER OPTION
Unissued ordinary shares of the Company under option at the date of this report are as follows:
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Listed Options
Number
4,102,500
4,737,500
5,150,000
425,000
24,277,766
Exercise Price
$1.20
$0.71
$0.22
$0.30
$0.15
Expiry Date
31/10/2023
30/11/2024
30/11/2025
30/11/2025
30/06/2024
No option holder has any right under the options to participate in any other share issue of the Company or any
other related entity.
No options were exercised during the year (2022: None).
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of
Stavely Minerals Limited support and adhere to the principles of corporate governance. Please refer to the
Company’s website for details of corporate governance policies: https://www.stavely.com.au/corporate-
governance.
2023 Annual Report | Page 46
DIRECTORS’ REPORT
MATERIAL BUSINESS RISKS
Stavely maintains a Risk Register that identifies the material risks for the Group. These risks include the loss
of a significant tenement, inability to access land, failure to raise future capital, the occurrence of a fatality or
permanent disability injury to persons to whom the Company has a duty of care, adverse changes to
government policies or legislation, commodity price decreases, inaccurate financial reporting, non-compliance
with rules and laws, and loss of technical data.
The Risk Register records all current controls in place to minimise the risks and identifies the overall control
effectiveness. The Group considers the following to be key material business risks:
Exploration Risk
Mineral exploration and development are high-risk undertakings, and there is no assurance that exploration of
the tenements will result in the discovery of an economic deposit. Even if an apparently viable deposit is
identified there is no guarantee that it can be economically exploited. The future exploration activities of the
Company may be affected by a range of factors including geological conditions, limitations on activities due to
permitting requirements, availability of appropriate exploration equipment, exploration costs, seasonal
weather patterns, unanticipated operational and technical difficulties, industrial and environmental accidents
and many other factors beyond the control of the Company.
Additional requirements for capital
The Company’s capital requirements depend on numerous factors. Given that the Company’s primary business
is mineral exploration and that it does not currently have any mining operations, the Company will require
further funding. Any additional equity financing will dilute shareholdings, and debt financing, if available, may
involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing
as needed, it may be required to reduce the scope of its operations and scale back its exploration programmes
as the case may be. There is however no guarantee that the Company will be able to secure any additional
funding or be able to secure funding on terms favourable to the Company.
Land Access Risk
Land access is critical for exploration and exploitation to succeed. It requires both access to the mineral rights
and access to the surface rights. Minerals rights may be negotiated and acquired. In all cases, the acquisition of
prospective exploration and mining licences is a competitive business in which proprietary knowledge or
information is critical and the ability to negotiate satisfactory commercial arrangements with other parties is
often essential. The Company may not be successful in acquiring or obtaining the necessary licences to conduct
exploration or evaluation activities outside of the mineral tenements that it owns.
The Native Title Act recognises and protects the rights and interests in Australia of Aboriginal and Torres Strait
Islander people in land and waters, according to their traditional laws and customs. There is significant
uncertainty associated with Native Title in Australia and this may impact on the Company's operations and future
plan.
In relation to tenements which the Company has an interest in or will in the future acquire such an interest,
there may be areas over which Native Title rights of Aboriginal and Torres Strait Islander people exist. If Native
Title rights do exist, the ability of the Company to gain access to tenements (through obtaining consent of any
relevant landowner), or to progress from the exploration phase to the development and mining phases of
operations may be adversely affected.
Occupational Health and Safety
Safety is a critical element of the Company. While the Company has a strong commitment to achieving a safe
performance in the field and a strong record in achieving safety performance, a serious safety incident could
impact upon the reputation and financial performance of the Company. Additionally, laws and regulations may
become more complex and stringent. Failure to comply with applicable regulations or requirements may result
in significant liabilities, suspended activities and increased costs.
2023 Annual Report | Page 47
DIRECTORS’ REPORT
Climate Change Risk
There are a number of climate-related factors that may affect the field operations and proposed activities of the
Company. The climate change risks particularly attributable to the Company include:
•
•
the emergence of new or expanded regulations associated with the transitioning to a lower-carbon
economy and market changes related to climate change mitigation. The Company may be impacted by
changes to local or international compliance regulations related to climate change mitigation efforts,
or by specific taxation or penalties for carbon emissions or environmental damage. These examples sit
amongst an array of possible restraints on industry that may further impact the Company and its
profitability. While the Company will endeavour to manage these risks and limit any consequential
impacts, there can be no guarantee that the Company will not be impacted by these occurrences; and
climate change may cause certain physical and environmental risks that cannot be predicted by the
Company, including events such as increased severity of weather patterns and incidence of extreme
weather events and longer-term physical risks such as shifting climate patterns. All these risks
associated with climate change may significantly change the industry in which the Company operates.
AUDIT INDEPENDENCE AND NON-AUDIT SERVICES
Auditor’s independence - section 307C
The Auditor’s Independence Declaration is included on page 50 of this report.
Non-Audit Services
The following non-audit services were provided by the entity’s auditor, BDO. The Directors are satisfied that the
provision of non-audit services is compatible with the general standard of independence for auditors imposed
by the Corporations Act. The nature and scope of each type of non-audit service provided means that auditor
independence was not compromised. BDO received, or are due to receive, the following amounts for the
provision of non-audit services:
Taxation services
EVENTS OCCURRING AFTER THE REPORTING PERIOD
Placement
2023
$13,236
2022
$18,410
On 6 July 2023, 39,444,454 shares were issued pursuant to a placement to sophisticated and institutional
investors. Gross proceeds were $3,550,000. Each Placement subscriber received one free attaching quoted
option for every two new Shares issued. Upon Shareholder approval received on 11 August 2023, the Directors
participated in the placement under the same terms with proceeds received by Stavely of $100,000. The
24,277,766 Options were issued on 29 August 2023 (including 4 million broker options) and are exercisable at
$0.15 each with an expiry date of 30 June 2024.
Acquisition of North West Nickel Group
On 23 May 2023, the Company announced that it has agreed to acquire the 1,800km2 Hawkstone Nickel-Copper-
Cobalt Project in the West Kimberley region of Western Australia.
The total consideration paid for the Acquisition comprised:
(a)
(b)
$50,000 cash, paid as a Deposit; and
the following securities:
(i)
(ii)
$950,000 worth of fully paid ordinary shares in the capital of Stavely Minerals (SVY Shares), at a
deemed issue price equal to the five-day volume weighted average price of SVY’s Shares as traded
on the Australian Securities Exchange (5-day VWAP) up to and including the day prior to the
execution of the Definitive Agreement;
$350,000 of performance rights (3,917,618), at a deemed issue price equal to the 5-day VWAP up
to and including the day prior to the execution of the Definitive Agreement, which convert to
ordinary shares on a 1:1 basis, subject to the satisfaction of the milestone of NWN receiving
approval of the five-year extension of the term of E04/2299 on or before 31 January 2024; and
2023 Annual Report | Page 48
DIRECTORS’ REPORT
(iii) $50,000 of performance rights (559,659), at a deemed issue price equal to the 5-day VWAP up to
and including the day prior to the execution of the Definitive Agreement, which convert to
ordinary shares on a 1:1 basis, subject to the satisfaction of the milestone of NWN receiving
approval of the five-year extension of the term of E04/2325, on or before 31 January 2024,
The Acquisition was completed on 14 August 2023.
Sale Listing for Farm Property
On 14 September 2023, the Group signed a listing agreement with an agent to sell all or part of the 524-acre
farm property.
There are no other matters or circumstances that have arisen since 30 June 2023 that have or may significantly
affect the operations, results, or state of affairs of the Group in future financial years.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)a of the Corporations
Act 2001. Signed in accordance with a resolution of the Directors.
Christopher Cairns
Executive Chair and Managing Director
Dated this 26 day of September 2023
2023 Annual Report | Page 49
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF STAVELY MINERALS
LIMITED
As lead auditor of Stavely Minerals Limited for the year ended 30 June 2023, I declare that, to the best
of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Stavely Minerals Limited and the entities it controlled during the
period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth
26 September 2023
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
50
DIRECTORS’ DECLARATION
1.
In the opinion of the directors:
a)
The financial statements and notes are in accordance with the Corporations Act 2001, including:
i)
ii)
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
complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), the Corporations Regulations 2001 and other mandatory professional reporting
requirements; and
iii) complying with International Financial Reporting Standards (IFRS) as stated in note 1 of the
financial statements; and
b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
2.
This declaration has been made after receiving the declarations required to be made to the directors in
accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2023.
This declaration is signed in accordance with a resolution of the Board of Directors.
Christopher Cairns
Executive Chair and Managing Director
Dated this 26 day of September 2023
2023 Annual Report | Page 51
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Revenue and Income
Interest revenue
Rental sub-lease revenue
Profit on sale of fixed assets
Expenses
Administration and corporate expenses
Administration – equity based expenses
Exploration expenses
Pastoral land costs
Impairment of land
Financing costs
Total expenses
Other gains/(losses)
Net fair value losses on financial assets at fair value through
profit or loss
Loss on disposal of financial assets
Total other gains
Loss before income tax
Income tax expense
Loss after income tax attributable to members of
Stavely Minerals Limited
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss:
Other
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive loss for the year
Loss per share for the year attributable to the members of
Stavely Minerals Limited
Basic loss per share
Consolidated
Year ended
30 June 2023
Year ended
30 June 2022
Note
$
$
141,806
59,098
9,091
209,995
20,895
42,190
38,173
101,258
2(a)
2(b)
2(c)
10(b)
2(d)
(1,672,749)
(372,888)
(6,208,929)
(105,167)
(495,995)
(212,932)
(9,068,660)
(1,610,408)
(802,995)
(10,493,200)
-
-
(8,472)
(12,915,075)
4
4
5
6
-
-
-
(1,117,161)
(40,819)
(1,157,980)
(8,858,665)
-
(13,971,797)
-
(8,858,665)
(13,971,797)
-
-
-
-
(8,858,665)
(13,971,797)
Cents Per
Share
(2.77)
Cents Per
Share
(5.35)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
2023 Annual Report | Page 52
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
ASSETS
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Other receivables
Right of use assets
Property, plant and equipment
Deferred exploration expenditure acquisition costs
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Lease liabilities – right of use assets
Provisions
Total Current Liabilities
Non-Current Liabilities
Borrowings
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
30 June 2023
$
Note
30 June 2022
$
7
8
8
9
10
11
12
9
13
14
13
1,654,418
286,802
1,941,220
141,320
-
3,231,418
3,672,126
7,044 864
8,986,084
922,218
411,244
1,333,462
1,095,013
70,252
157,070
3,672,126
4,994,461
6,327,923
948,049
-
237,946
849,613
94,291
289,842
1,185,995
1,233,746
1,600,000
3,651
1,603,651
2,789,646
6,196,438
-
45,180
45,180
1,278,926
5,048,997
15
16
86,156,285
8,221,856
(88,181,703)
76,523,067
7,848,968
(79,323,038)
6,196,438
5,048,997
The above consolidated statement of financial position should be read in conjunction with the accompanying
notes.
2023 Annual Report | Page 53
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
At 1 July 2021
Loss for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year, net of tax
Transactions with owners in their capacity as
owners:
Issue of share capital
Cost of issue of share capital
Share based payments
Issued
Capital
$
Reserves
$
Accumulated
Losses
$
Total
Equity
$
76,523,797
7,045,973
(65,351,241)
18,218,529
-
-
-
-
(730)
-
(730)
-
-
-
-
-
802,995
802,995
(13,971,797)
(13,971,797)
-
-
(13,971,797)
(13,971,797)
-
-
-
-
-
(730)
802,995
802,165
As at 30 June 2022
76,523,067
7,848,968
(79,323,038)
5,048,997
At 1 July 2022
Loss for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year, net of tax
-
-
Transactions with owners in their capacity as
owners:
Issue of share capital – note 15
Cost of issue of share capital
Share based payments – note 3
76,523,067
7,848,968
(79,323,038)
5,048,997
-
-
-
-
-
(8,858,665)
(8,858,665)
-
-
(8,858,665)
(8,858,665)
-
-
-
-
9,949,000
(315,782)
372,888
10,006,106
9,949,000
(315,782)
-
372,888
9,633,218
372,888
As at 30 June 2023
86,156,285
8,221,856
(88,181,703)
6,196,438
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
2023 Annual Report | Page 54
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Consolidated
Year ended
Year ended
30 June 2023
30 June 2022
Note
$
$
Cash flows from operating activities
Receipts in the ordinary course of activities (incl. GST)
Payments to suppliers and employees
Interest received
Interest and other costs of finance paid
Net cash flows used in operating activities
7(i)
4
8
Cash flows from investing activities
Payments for plant and equipment
Proceeds from disposal of plant and equipment
Payment for exploration acquisitions (capitalised)
Other – sale of investments
Other – deposits paid
Payment for bonds
Bonds repaid
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Payment of share issue costs
Borrowings
Payment of lease liabilities (right of use assets)
Placement funds received in advance
Net cash flows from/(used in) financing activities
759,203
(7,930,587)
141,806
(232,476)
(7,262,054)
(2,664,035)
9,091
-
-
(50,000)
-
143,693
(2,561,251)
9,299,000
(315,782)
1,600,000
(97,713)
70,000
10,555,505
1,259,012
(13,236,566)
22,824
-
(11,954,730)
(75,392)
38,173
(17,500)
327,873
(1,000,000)
(120,000)
-
(846,846)
-
(730)
-
(95,438)
-
(96,168)
Net increase/(decrease) in cash and cash equivalents
held
Add opening cash and cash equivalents brought forward
732,200
(12,897,744)
922,218
13,819,962
Closing cash and cash equivalents carried forward
7
1,654,418
922,218
The above consolidated statement of cashflows should be read in conjunction with the accompanying notes.
2023 Annual Report | Page 55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of Preparation
These financial statements are general purpose financial statements, which have been prepared in
accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and
other authoritative pronouncements of the Australian Accounting Standards Board. The financial report
has also been prepared on a historical cost basis.
The financial report is presented in Australian dollars, which is the Group’s functional and presentation
currency.
Stavely Minerals Limited is a for-profit entity for the purpose of preparing the financial statements.
The annual report of Stavely Minerals Limited for the year ended 30 June 2023 was authorised for issue
in accordance with a resolution of the Directors on 26 September 2023.
(b)
Statement of Compliance
These financial statements comply with Australian Accounting Standards and International Financial
Reporting Standards (IFRS).
(c)
Going Concern
The financial report has been prepared in a going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and the settlement of liabilities in the normal course
of business.
As a mineral explorer, the Group does not generate cash flows from operating activities to finance these
activities. As a consequence the ability of the Group to continue as a going concern is dependent on the
success of capital fundraising or other financing opportunities. The Group incurred a net loss of
$8,858,665 for the year ended 30 June 2023 and had a net cash outflow from operations of $7,262,054.
These conditions indicate a material uncertainty that may cast significant doubt about the Group’s ability
to continue as a going concern and, therefore, it may be unable to realise its assets and discharge its
liabilities in the normal course of business. As disclosed in note 23, subsequent to year end, Stavely raised
$3.55 million in a placement.
Notwithstanding this, the Directors believe that they will be able to raise additional capital as required.
Subsequent to year end, the Group has signed a listing agreement with an agent to sell all or part of the
524-acre farm property. The Directors believe that the Group will continue as a going concern. As a result,
the financial report has been prepared on a going concern. However, should the Group be unsuccessful
in undertaking additional fundraising or any alternative financing opportunities, the Group may not be
able to continue as a going concern. No adjustments have been made relating to the recoverability and
classification of liabilities that might be necessary should the Group not continue as a going concern.
Should the going concern basis not be appropriate, the Group may have to realise its assets and extinguish
its liabilities other than in the ordinary course of business and at amounts different from those stated in
the financial report. No allowance for such circumstances has been made in the financial report.
(d)
Adoption of New and Revised Standards and Change in Accounting Standards
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting
period ended 30 June 2023. The consolidated entity has not yet assessed the impact of these new or
amended Accounting Standards and Interpretations.
2023 Annual Report | Page 56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
(e)
Significant Accounting Estimates and Judgments
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and
on other various factors, including expectations of future events, management believes to be reasonable
under the circumstances.
The key judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of certain assets and liabilities are as follows:
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using Hoadley Trading &
Investment Tools ES02 trinomial option valuation model, Hoadley Trading & Investment Tools Barrier1
trinomial option valuation model or a Black-Scholes model taking into account the terms and conditions
upon which the instruments were granted. The accounting estimates and assumptions relating to equity-
settled share-based payments would have no impact on the carrying amounts of assets and liabilities
within the next annual reporting period but may impact profit or loss and equity. Refer to note 3 for
further information.
Commitments - Exploration
The Group has certain minimum exploration commitments to maintain its right of tenure to exploration
permits. These commitments require estimates of the cost to perform exploration work required under
these permits.
Fair Value Measurement
The Group is required to classify all assets and liabilities, measured at fair value, using a three level
hierarchy, based on the lowest level of input that is significant to the entire fair value measurement,
being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs
for the asset or liability. Considerable judgement is required to determine what is significant to fair value
and therefore which category the asset or liability is placed in can be subjective.
Deferred Exploration Expenditure Acquisition Costs
The Group capitalises acquisition expenditure relating to exploration and evaluation where it is
considered likely to be recoverable or where the activities have not reached a stage which permits a
reasonable assessment of the existence of reserves. While there are certain areas of interest from which
no reserves have been extracted, the Directors are of the continued belief that such expenditure should
not be written off since exploration activities in such areas have not yet concluded.
Impairment
The Group assesses impairment of property, plant and equipment assets at each reporting date by
evaluating conditions specific to the Group and to the particular asset that may lead to impairment. If an
impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less
costs of disposal or value-in-use calculations, which incorporate a number of key estimates and
assumptions.
In assessing whether an impairment was required for the 524-acre farm land, the Group obtained an
appraisal from a third party. As a result of this appraisal, an impairment charge has been reflected for the
year ended 30 June 2023.
2023 Annual Report | Page 57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
(f)
Basis of Consolidation and Business Combinations
The consolidated financial statements comprise the financial statements of Stavely Minerals limited
(“Company” or “Parent Entity”) and its subsidiaries as at 30 June each year (the Group). Subsidiaries are
all entities over which the group has control. Control is achieved when the Group is exposed, or has rights,
to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. Specifically, the Group controls an investee if and only if the Group
has:
-
-
-
Power over the investee (i.e. existing rights that give it the current ability to direct the relevant
activities of the investee),
Exposure, or rights, to variable returns from its involvement with the investee, and
The ability to use its power over the investee to affect its returns
The financial statements of the subsidiaries are prepared for the same period as the parent entity, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit or losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease
to be consolidated from the date on which control is transferred out of the Group. Control exists where
the company has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
The acquisition of subsidiaries has been accounted for using the purchase method of accounting. The
purchase method of accounting involves allocating the cost of the business combination to the fair value
of the assets acquired and the liabilities and contingent liabilities assumed at the date of acquisition.
Accordingly, the consolidated financial statements include the results of subsidiaries for the period from
their acquisition.
The purchase method of accounting is used to account for all business combinations regardless of whether
equity instruments or other assets are acquired. Cost is measured as the fair value of the assets given,
shares issued or liabilities incurred or assumed at the date of exchange plus costs directly attributable to
the combination.
Where equity instruments are issued in a business combination, the fair value of the instruments is their
published market price as at the date of exchange, adjusted for any conditions imposed on those shares.
Transaction costs arising on the issue of equity instruments are recognised directly in equity.
All identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are measured initially at their fair values at the acquisition date. The excess of the cost of the business
combination over the net fair value of the Group's share of the identifiable net assets acquired is
recognised as goodwill. If the cost of acquisition is less than the Group's share of the net fair value of the
identifiable net assets of the subsidiary, the difference is recognised as a gain in the statement of profit
or loss and other comprehensive income, but only after a reassessment of the identification and
measurement of the net assets acquired.
2023 Annual Report | Page 58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 2 - EXPENSES
(a) Administration and Corporate Expenses
Administration and corporate expenses include:
Depreciation – administration
Depreciation – right of use assets
Office premises expenses
Personnel costs – administration and corporate
Other administration and corporate expenses
(b) Share Based Payments
Year ended
30 June 2023
$
Year ended
30 June 2022
$
8,478
70,252
47,148
349,832
1,197,039
1,672,749
40,394
70,620
48,710
811,570
639,114
1,610,408
Equity based payments expense – refer note 3
372,888
802,995
(c) Exploration Costs Expensed
Exploration costs expensed include:
Depreciation – exploration
Other exploration costs expensed
(d) Financing Costs
Interest on right of use assets
Interest on borrowings
Other financing costs
77,933
6,130,996
6,208,929
35,492
10,457,708
10,493,200
3,422
172,034
37,476
212,932
8,472
-
-
8,472
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses)
Equity settled transactions:
The Group provides benefits to executive directors, employees and consultants of the Group in the form of share
based payments, whereby those individuals render services in exchange for shares or rights over shares (equity-
settled transactions).
When provided, the cost of these equity-settled transactions with these individuals is measured by reference to
the fair value of the equity instruments at the date at which they are granted. The fair value is determined using
a Hoadley Trading & Investment Tools ES02 trinomial option valuation model, a Hoadley Trading & Investment
Tools Barrier1 trinomial option valuation model or a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Stavely Minerals Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the relevant
individuals become fully entitled to the award (the vesting date).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects:
(i)
(ii)
(iii)
the grant date fair value of the award;
the extent to which the vesting period has expired; and
the number of awards that, in the opinion of the Directors of the Company, will ultimately vest
taking into account such factors as the likelihood of non-market performance conditions being met.
This opinion is formed based on the best available information at reporting date.
2023 Annual Report | Page 59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. If an equity-settled award is forfeited, any expense
previously recognised for the award is reversed. However, if a new award is substituted for a cancelled award
and designated as a replacement award on the date that it is granted, the cancelled and new award are treated
as if they were a modification of the original award, as described in the previous paragraph.
(a) Value of equity based payments in the financial statements
Expensed in the profit or loss:
Equity-based payments- options and performance rights
372,888
802,995
30 June 2023
$
30 June 2022
$
(b) Summary of equity-based payments granted during the year:
Granted to key management personnel and employees as equity compensation:
During the year, the following unlisted options and performance rights were granted:
-
-
-
-
382,000 unlisted performance rights granted and allotted on 30 September 2022 to employees pursuant to
the Company’s Employee Incentive Plan (including 125,000 to the Chief Operating Officer). On 12 December
2022, 141,000 of the Performance rights were cancelled.
5,150,000 unlisted options, as approved by shareholders at the 2022 Annual General Meeting held on 11
November 2022, granted to directors or their nominees on 11 November 2022 and allotted on 11 November
2022;
850,000 unlisted performance rights as approved by shareholders at the 2022 Annual General Meeting held
on 11 November 2022, granted to directors Christopher Cairns and Jennifer Murphy on 11 November 2022
and allotted on 11 November 2022;
425,000 unlisted options granted and allotted on 13 December 2022 to employees pursuant to the
Company’s Employee Incentive Plan.
The inputs to the valuation models used were:
Grant date - Employees
30/09/2022
30/09/2022
13/12/2022
Performance rights -
Employees
Performance rights –
Chief Operating Officer
Options - Employees
Spot price ($)
Exercise price ($)
Vesting date
Expiry date
Expected future volatility (%)
Risk-free rate (%)
Dividend yield (%)
Value Each ($)
Number Granted
Valuation Method
0.16
Nil
31/12/2022
Upon vesting
N/A
0.0
-
0.16
0.16
Nil
31/03/2023
Upon vesting
N/A
0.0
-
0.16
257,000
125,000
Market Price at Grant
Date
Market Price at Grant
Date
0.195
0.30
Immediately
30/11/2025
73
3.05
-
0.074
425,000
Black-Scholes
2023 Annual Report | Page 60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
(b)
Summary of equity-based payments granted during the year - continued:
Grant date - Directors
11/11/2022
11/11/2022
11/11/2022
11/11/2022
Spot price ($)
Exercise price ($)
Barrier price ($)
Vesting date
Options -
Directors
Options -
Directors
Performance
Rights -
Directors
Performance
Rights -
Directors
0.14
0.22
N/A
0.14
0.22
N/A
0.14
Nil
0.25
0.14
Nil
0.40
30/06/2023
immediately
No later than
30/11/2023
No later than
30/11/2023
Expiry date
30/11/2025
30/11/2025
15/11/2027
15/11/2027
Expected future volatility (%)
Risk-free rate (%)
Dividend yield (%)
Value Each ($)
Number Granted
Valuation Method
65
3.16
-
0.044
65
3.16
-
0.044
2,750,000
2,400,000
65
3.34
-
0.1194
425,000
65
3.34
-
0.0997
425,000
ES02
ES02
Trinomial
Trinomial
Black-Scholes option pricing model
The assessed fair values of the options issued on 13 December 2022 were determined using a Black-Scholes
option pricing model, taking into account the exercise price, term of option, the share price at grant date and
expected price volatility of the underlying share, expected dividend yield and the risk-free interest rate for the
term of the option. The expected life of the options is based on historical data and is not necessarily indicative
of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility
is indicative of future trends, which may also not necessarily be the actual outcome. No other features of options
granted were incorporated into the measurement of fair value.
Hoadley Trading & Investment Tools ES02 and Hoadley Trading & Investment Tools Barrier 1 trinomial option
valuation models
The assessed fair values of the options and performance rights granted on 11 November 2022 were determined
using the Hoadley Trading & Investment Tools ES02 option valuation model, taking into account the exercise
price, term of option, the share price at grant date, expected price volatility of the underlying share, expected
dividend yield and the risk-free interest rate for the term of the option. The expected future volatility is based
on historical volatility over one, two and three year trading periods. The assessed fair values performance rights
granted on 11 November 2022 were determined using the Hoadley Trading & Investment Tools Barrier1
trinomial option valuation model with the market conditions (barrier prices) included in the valuations.
(c) Weighted average fair value
The weighted average fair value of equity-based payment options granted during the year was $0.0463 (2022:
$0.1599).
(d) Range of exercise price
The range of exercise price for options granted as share based payments outstanding at the end of the year was
$0.22 to $1.20 (2022: $0.56 to $1.47).
(e) Weighted average remaining contractual life
The weighted average remaining contractual life of share based payment options that were outstanding as at
the end of the year was 1.49 years (2022: 1.56 years).
2023 Annual Report | Page 61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 3 – EQUITY-BASED PAYMENTS (Recognised as Remuneration Expenses) – continued
(f) Weighted average exercise price
The following table shows the number and weighted average exercise price (“WAEP”) of share options granted
as share based payments.
Outstanding at the beginning of year
Granted during the year
Exercised during the year
Lapsed during the year
Outstanding at the end of the year
Exercisable at year end
12 Months to
30 June 2023
Number
11,990,000
5,575,000
-
(3,150,000)
14,415,000
14,415,000
12 Months to
30 June 2023
WAEP $
1.05
0.23
-
1.35
0.66
0.66
12 Months to
30 June 2022
Number
6,802,500
5,187,500
-
-
11,990,000
11,990,000
12 Months to
30 June 2022
WAEP $
1.31
0.70
-
-
1.05
1.05
The weighted average share price for options exercised during the year was $nil (2022: $nil).
NOTE 4 - FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on 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; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market. Fair value is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of
relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair
value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used
in making the measurements. Classifications are reviewed at each reporting date and transfers between levels
are determined based on a reassessment of the lowest level of input that is significant to the fair value
measurement.
Investments in equity instruments are categorised as financial assets at fair value through profit or loss.
When these financial assets are recognised initially, they are measured at fair value. At each reporting date,
gains or losses on these financial assets are recognised in profit or loss using Level 1 inputs of unadjusted quoted
prices in active markets at the measurement date.
30 June 2023
30 June 2022
Financial Assets
Investments in equity instruments
Initial recognition of financial assets at fair value
Net fair value (losses) at the beginning of the period
Net fair value loss on financial assets at fair value through profit or
loss for the year
Proceeds received from the sale of financial assets
Less: carrying amount of net financial assets
Loss on sale of financial assets
$
-
-
-
-
-
-
-
-
$
-
1,611,341
(125,488)
(1,117,161)
368,692
327,873
(368,692)
(40,819)
2023 Annual Report | Page 62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 5 - INCOME TAX EXPENSE
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and that, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests
in joint operations, and the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be
utilised, except:
• when the deferred income tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
• when the deductible temporary difference is associated with investments in subsidiaries, associates or
interests in joint operations, in which case a deferred tax asset is only recognised to the extent that it is
probable that the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity
and the same taxation authority.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income legislation and the anticipation that the Group will derive sufficient
future assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law.
2023 Annual Report | Page 63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 5 - INCOME TAX EXPENSE - continued
(a) Income Tax Expense
The reconciliation between tax expense and the product of
accounting loss before income tax multiplied by the Group’s
applicable income tax rate is as follows:
Loss for year
Prima facie income tax (benefit) @ 30% (2022: 30%)
Tax effect of non-deductible items
Net deferred tax assets not brought to account
Income tax attributable to operating loss
(b) Net deferred tax assets not recognised relate to the following:
DTA - Tax losses
DTA/(DTL) - Other Timing Differences, net
Year ended
30 June 2023
Year ended
30 June 2022
$
$
(8,858,665)
(2,657,600)
264,299
2,393,301
(13,971,797)
(4,191,539)
591,089
3,600,450
-
-
19,298,836
441,037
19,739,873
16,652,696
604,733
17,257,429
These deferred tax assets have not been brought to account as it is not probable that tax profits will be available
against which deductible temporary differences can be utilised. Losses may be carried forward and utilised
against future taxable income provided the relevant loss recoupment tests are met.
Tax Consolidation
The Company and its 100% owned subsidiaries have formed a tax consolidated group. Under the tax
consolidation regime, all members of a tax consolidated group are jointly and severally liable for the tax
consolidated group’s income tax liabilities. The head entity of the tax consolidated group is Stavely Minerals
Limited.
(c) Franking Credits
The franking account balance at year end was $nil (2022: $nil).
2023 Annual Report | Page 64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 6 - EARNINGS PER SHARE
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude
any costs of servicing equity (other than dividends), divided by the weighted average number of ordinary shares,
adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted for:
•
•
•
costs of servicing equity (other than dividends);
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have
been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result from the
dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus element.
Basic loss per share
Loss attributable to ordinary equity holders of the Company used in
calculating:
- basic loss per share
Weighted average number of ordinary shares outstanding during the year
used in the calculation of basic earnings per share
Year ended
30 June 2023
Year ended
30 June 2022
Cents
(2.77)
Cents
(5.35)
$
$
(8,858,665)
(13,971,797)
Number
of shares
Number
of shares
320,031,747
260,961,452
For the year ended 30 June 2023, diluted earnings per share was not disclosed because potential ordinary shares,
being options granted, are not dilutive and their conversion to ordinary shares would not demonstrate an
inferior view of the earnings performance of the Company.
2023 Annual Report | Page 65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 7 - CASH AND CASH EQUIVALENTS
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as
described above.
Cash at bank and on hand
(i) Reconciliation of loss for the period to net cash flows used in operating
activities
Loss after income tax
Adjustments to reconcile profit before tax to net operating cash flows:
Depreciation
Depreciation – Right of Use Assets
Gain on disposal of property, plant and equipment
Impairment of land
Net fair value loss on financial assets
Loss on disposal of investments
Exploration costs paid via equity (ii)
Share based payments expensed
Change in assets and liabilities:
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Net cash flows used in operating activities
(ii) Non-Cash Financing and Investing Activities
Year ended
30 June 2023
$
Year ended
30 June 2022
$
1,654,418
922,218
(8,858,665)
(13,971,797)
93,693
70,252
(9,091)
495,995
-
-
650,000
372,888
75,886
70,620
(38,173)
-
1,117,161
40,819
-
802,995
(15,558)
31,857
(93,425)
(7,262,054)
313,560
(485,081)
119,280
(11,954,730)
During the year there were no non-cash financing and investing activities undertaken (2022: none). Non-cash
operating activities during the year included 2,653,061 shares were issued to Titeline Drilling Pty Ltd as a
prepayment of $650,000 for drilling services Refer to note 15.
NOTE 8 – OTHER RECEIVABLES
Receivables are initially recognised at fair value and subsequently measured at amortised cost, less provision for
doubtful debts. Current receivables for GST are due for settlement within 30 days and other current receivables
within 12 months. Cash on deposit is not due for settlement until rights of tenure are forfeited or performance
obligations are met.
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense
item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the statement of financial position. Cash flows are included in the Cash Flow Statement on a gross
basis and the GST component of cash flows arising from investing and financing activities, which is recoverable
from, or payable to, the taxation authority, are classified as operating cash flows. Commitments and
contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
2023 Annual Report | Page 66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 8 – OTHER RECEIVABLES - continued
Current
GST refundable
Bonds – credit card
Bond – other short term
Prepayments
Other
Total current receivables
Non-Current
Cash on deposit - security bonds
Deposit for Acquisition of North West Nickel Pty Ltd – refer to note 23
Deposits paid for Property Purchase – refer to note 10(a)
Total non-current receivables
30 June 2023
$
30 June 2022
$
140,635
-
-
144,168
1,999
286,802
91,320
50,000
-
141,320
111,548
40,000
100,000
157,051
2,645
411,244
95,013
-
1,000,000
1,095,013
Fair Value and Risk Exposures – all above excluding the Deposit for Beaconsfield Assets:
(i) Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair
value.
(ii) The maximum exposure to credit risk is the fair value of receivables. Collateral is not held as security.
(iii) Details regarding interest rate risk exposure are disclosed in note 21.
(iv) Other current receivables generally have repayments between 30 and 90 days.
Receivables do not contain past due or impaired assets as at 30 June 2023 (2022: none).
NOTE 9 – RIGHT OF USE ASSETS AND LIABILITIES
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, adjusted for any remeasurement of lease liabilities. The cost of right-to-use assets includes
the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the
commencement date less and lease incentives received. Unless the Group is reasonably certain to obtain
ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated
on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are
subject to impairment.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (ie: those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lease
payments on short-term leases and leases of low-value assets are recognised as an expense on a straight-line
basis over the lease term.
2023 Annual Report | Page 67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 9 – RIGHT OF USE ASSETS AND LIABILITIES - continued
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease
term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on
an index or a rate are recognised as expense in the period on which the event or condition that triggers the
payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing
rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After
the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in
the assessment to purchase the underlying asset.
Non-Current Assets
Right of use assets - properties
Lease Liabilities
Current
Non-Current
30 June 2023
$
30 June 2022
$
-
-
-
-
70,252
94,291
-
94,291
NOTE 10 - PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Plant and equipment
Motor vehicles
-
-
0 to 4 years
3 to 7 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at
each financial year end.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated
as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit
or loss in the year the asset is derecognised.
Impairment
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. The
carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the
carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down
to their recoverable amount.
2023 Annual Report | Page 68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 10 - PROPERTY, PLANT AND EQUIPMENT - continued
Land (Pastoral) - at cost (secured) – note (a)
Less: Accumulated impairment – note (b)
Associated buildings - at cost (secured) – note (a)
Less: Accumulated depreciation of buildings
Motor vehicles (Exploration)- at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
30 June 2023
$
30 June 2022
$
3,495,995
(495,995)
3,000,000
117,050
(5,207)
111,843
3,111,843
168,972
(111,875)
57,097
686,274
(623,796)
62,478
-
-
-
-
-
-
-
193,245
(113,120)
80,125
642,171
(565,226)
76,945
Total property, plant and equipment
3,231,418
157,070
Reconciliation of property, plant and equipment:
Land and Buildings
Carrying amount at beginning of year
Additions – note (a)
Depreciation
Impairment of land – note (b)
Carrying amount at end of year
Motor Vehicles (Exploration)
Carrying amount at beginning of year
Additions
Depreciation
Carrying amount at end of year
Plant and Equipment
Carrying amount at beginning of year
Additions
Depreciation
Carrying amount at end of year
-
3,613,045
(5,207)
(495,995)
3,111,843
80,125
4,818
(27,846)
57,097
76,945
46,173
(60,640)
62,478
-
-
-
-
-
52,558
52,719
(25,152)
80,125
105,006
22,673
(50,734)
76,945
(a) On 15 August 2022, the Company settled on the property purchase of for a 524-acre farm, residence and
an additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned
Stavely Copper-Gold Project in western Victoria. $1.6 million of loan funding was used towards the
acquisition of the land. The land and buildings are secured via a 1st mortgage. Refer to note 14.
(b)
In assessing whether an impairment was required for the 524-acre farm land, the Group obtained an
appraisal from a third party. As a result of this appraisal, an impairment charge of $495,995 has been
recorded for the year ended 30 June 2023.
2023 Annual Report | Page 69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 11 - DEFERRED EXPLORATION EXPENDITURE ACQUSITION COSTS
Exploration expenditure is expensed to the statement of profit or loss and other comprehensive income as and
when it is incurred and included as part of cash flows from operating activities. Exploration costs are only
capitalised to the statement of financial position if they result from an acquisition. Costs carried forward in
respect of an area of interest which is abandoned are written off in the year in which the abandonment decision
is made.
Deferred exploration acquisition costs brought forward
Capitalised acquisition expenditure additions
Deferred exploration acquisition costs carried forward
30 June 2023
$
3,672,126
-
3,672,126
30 June 2022
$
3,672,126
-
3,672,126
Ultimate recoupment of exploration and evaluation expenditure carried forward is dependent on successful
development and commercial exploitation or, alternatively, sale of the respective areas.
NOTE 12 - TRADE AND OTHER PAYABLES
Trade payables and other payables are carried at amortised costs and 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.
Trade creditors
Accruals and other payables
30 June 2023
$
664,793
283,256
948,049
30 June 2022
$
485,589
364,024
849,613
Fair Value and Risk Exposures
(i)
(ii)
Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.
Trade and other payables are unsecured and usually paid within 60 days of recognition.
NOTE 13 – PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
(i)
Wages, salaries and, annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave and expected to be settled
wholly within 12 months of the reporting date are recognised in other payables in respect of employees’ services
up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled.
(ii)
Other long-term employee benefit obligations
The liability for long service leave and annual leave not expected to be settled wholly within 12 months of the
reporting date are recognised in the provision for employee benefits and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels,
experience of employee departures, and period of service. Expected future payments are discounted using
market yields at the reporting date on corporate bonds with terms to maturity and currencies that match, as
closely as possible, the estimated future cash outflows. The obligations are presented as current liabilities if the
Group does not have an unconditional right to defer settlement for at least 12 months of the reporting date,
regardless of when actual settlement is expected to occur.
2023 Annual Report | Page 70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 13 – PROVISIONS - continued
Current
Employee entitlements
Non-Current
Employee entitlements
NOTE 14 – BORROWINGS – NON-CURRENT
30 June 2023
$
30 June 2022
$
237,946
289,842
3,651
45,180
Borrowings - at cost
1,600,000
-
On 15 August 2022, the Company settled on the property purchase of for a 524-acre farm, residence and an
additional residential block adjacent to the Thursday’s Gossan prospect, part of its 100%-owned Stavely Copper-
Gold Project in western Victoria.
$1.6 million of loan funding was used towards the acquisition of the land. The funding was provided by two
parties to Stavely’s wholly owned subsidiary, Stavely Pastoral Pty Ltd, as follows:
Under a loan agreement with Legal Mortgage Holdings Pty Ltd (LMH), LMH advanced $1 million on the following
terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum term of 12 months
Secured via a 1st mortgage on the land with a guarantee provided by Stavely Minerals Limited
Under a loan agreement with Anthony Cairns, an unrelated party, Anthony Cairns advanced $0.6 million on the
following terms:
-
-
-
Interest payable at 10% pa, payable quarterly in advance
Term of 24 months with a minimum interest term of 12 months
Unsecured, with a guarantee provided by Stavely Minerals Limited.
NOTE 15 – ISSUED CAPITAL
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
(a)
Issued Capital
326,273,717 (2022: 260,961,452) ordinary shares fully paid
(b) Movements in Ordinary Share Capital
260,961,452 Opening balance at 1 July 2021
Costs of equity issues
260,961,452 Closing Balance at 30 June 2022
260,961,452 Opening balance at 1 July 2022
26,666,667
35,326,537
Issue of shares – Placement 12 July 2022 at 15 cents
Issue of shares – Share Purchase Plan 5 August 2022 at 15 cents
116,000 Vesting of employee performance rights
2,653,061
Issue of shares – in lieu of drilling services
175,000 Vesting of director performance rights
250,000 Vesting of director performance rights
125,000 Vesting of KMP performance rights
Costs of equity issues
326,273,717 Closing Balance at 30 June 2023
30 June 2023
$
30 June 2022
$
86,156,285
76,523,067
76,523,797
(730)
76,523,067
76,523,067
4,000,000
5,299,000
-
650,000
-
-
-
(315,782)
86,156,285
2023 Annual Report | Page 71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 15 – ISSUED CAPITAL - continued
(c) Options on issue at 30 June 2023
Unlisted Options
Unlisted Options
Unlisted Options
Unlisted Options
Number
4,102,500
4,737,500
5,150,000
425,000
Exercise Price
$1.20
$0.71
$0.22
$0.30
Expiry Date
31/10/2023
30/11/2024
30/11/2025
30/11/2025
During the year:
(i)
(ii)
(iii)
5,575,000 unlisted options were granted as share-based payments (2022: 5,187,500);
3,150,000 unlisted options expired (2022: nil); and
No unlisted options were exercised (2022: nil).
(d) Performance Rights on issue at 30 June 2023
Performance Rights (Directors)
Number
425,000
Milestone
That the Company’s Share price reaches a 30-
day VWAP equal to or greater than 40.0 cents
per Share for any 30 consecutive trading days,
on or before 30 November 2023.
During the year:
(i)
(ii)
(iii)
1,091,000 performance rights were granted as share-based payments (2022: nil);
Nil performance rights expired (2022: nil); and
666,666 performance rights vested and were exercised (2022: nil).
(e) Terms and conditions of issued capital
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled
to one vote per share at shareholders’ meetings. In the event of winding up of the Company, ordinary
shareholders rank after all other shareholders and creditors are fully entitled to any proceeds of liquidations.
(f) Capital management
When managing capital, management's objective is to ensure the entity continues as a going concern as well
as maintains optimal returns to shareholders and benefits for other stakeholders. Management also aims to
maintain a capital structure that ensures the lowest cost of capital available to the entity.
Management may in the future adjust the capital structure to take advantage of favourable costs of capital
and issue further shares in the market. Management has no current plans to adjust the capital structure.
There are no plans to distribute dividends in the next year.
2023 Annual Report | Page 72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 16 - RESERVES
Share-based payment transactions
The Group measures the cost of equity-settled transactions by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a Hoadley Trading &
Investment Tools ES02 trinomial option valuation model, a Hoadley Trading & Investment Tools Barrier1
trinomial option valuation model or a Black-Scholes option pricing model.
Equity-based payments reserve:
Balance at the beginning of the year
Equity-based payments expense – refer note 3
Total Reserves
30 June 2023
$
30 June 2022
$
7,848,968
372,888
7,045,973
802,995
8,221,856
7,848,968
Nature and purpose of the reserves:
The Equity-based payments reserve is used to recognise the fair value of share-based payments granted.
NOTE 17 – COMMITMENTS AND CONTINGENCIES
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as
lessee are classified as operating leases. Payments made under operating leases (net of any incentives received
from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
(a)
Operating leases (non-cancellable):
Within one year
More than one year but not later than five years
30 June 2023
$
30 June 2022
$
2,544
5,712
8,256
2,544
8,256
10,800
These non-cancellable operating leases are primarily for residential premises at site and a ground lease.
(b)
Exploration Commitments
The Group has certain minimum exploration commitments to maintain its right of tenure to exploration
permits. These commitments require estimates of the cost to perform exploration work required under these
permits.
30 June 2023
$
30 June 2022
$
Tenement Expenditure Commitments:
The Group is required to maintain current rights of tenure to
tenements, which require outlays of expenditure in 2023/2024. Under
certain circumstances these commitments are subject to the possibility
of adjustment to the amount and/or timing of such obligations,
however, they are expected to be fulfilled in the normal course of
operations.
(c)
Black Range Joint Venture
2,130,575
1,680,305
The Group has earned a 84.22% Participating Interest in exploration licence 5425 pursuant to the Stavely Farm-
in and Joint Venture Agreement with Black Range Metals Pty Ltd. Black Range Metals Pty Ltd elected not to
contribute and hence will be diluted as per the Joint Venture Agreement.
(d)
Contingencies
The Group had no contingent liabilities at year end (30 June 2022: nil).
2023 Annual Report | Page 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 18 – RELATED PARTIES
(a) Compensation of Key Management Personnel
Short-term employment benefits
Long-term employment benefits
Post-employment benefits
Equity-based payments
30 June 2023
$
1,143,449
(385)
96,876
322,879
30 June 2022
$
957,448
148
76,956
538,535
1,562,819
1,573,087
(b) Other transactions and balances with Key Management Personnel
Other Transactions with Key Management Personnel
Mr Peter Ironside, Director, is a shareholder and director of Ironside Pty Ltd. Ironside Pty Ltd is a shareholder of
the 168 Stirling Highway Syndicate, the entity which owns the premises the Company occupies in Western
Australia. During the year an amount of $134,903 (net of GST) was paid/payable for office rental and variable
outgoings (2022: $142,213, net of GST).
Mr Peter Ironside, Director, is also a shareholder and non-executive director of E79 Gold Mines Limited (“E79
Gold”). Mr Chris Cairns, Director, is a shareholder and non-executive chair of E79 Gold. E79 Gold sub-leases
office space in the premises the Company occupies. During the year an amount of $32,430 (net of GST) (2022:
$27,656) was paid/payable by E79 Gold to the Company for reimbursement of office rental and associated
expenses.
(c) Transactions with Other Related Parties
There were no transactions with other related parties (2022: none).
NOTE 19 – AUDITOR’S REMUNERATION
30 June 2023
$
30 June 2022
$
Amount received or due and receivable by the auditor for:
Auditing the financial statements, including audit review - current year audits
Other services – taxation and corporate advisory
Total remuneration of auditors
49,033
13,236
62,269
44,728
18,410
63,138
2023 Annual Report | Page 74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 20 – SEGMENT INFORMATION
An operating segment is a component of an entity that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses relating to transactions with other components
of the same entity), whose operating results are regularly reviewed by the entity's chief operating decision
maker to make decisions about resources to be allocated to the segment and assess its performance and for
which discrete financial information is available. Management will also consider other factors in determining
operating segments such as the existence of a line manager and the level of segment information presented to
the board of Directors.
Operating segments have been identified based on the information provided to the chief operating decision
makers – being the executive management team.
The Group aggregates two or more operating segments when they have similar economic characteristics, and
the segments are similar in each of the following respects:
-
-
-
-
Nature of the products and services,
Type or class of customer for the products and services,
Methods used to distribute the products or provide the services, and if applicable
Nature of the regulatory environment.
Operating segments that meet the quantitative criteria as prescribed by AASB 8 are reported separately.
However, an operating segment that does not meet the quantitative criteria is still reported separately where
information about the segment would be useful to users of the Financial Statements.
Management has determined the operating segments based on the reports reviewed by the board of directors
that are used to make strategic decisions. The Group does not have any material operating segments with
discrete financial information. The Group does not have any customers and all its’ assets and liabilities are
primarily related to the mineral exploration industry and are located within Australia. The Board of Directors
review internal management reports on a regular basis that is consistent with the information provided in the
statement of profit or loss and other comprehensive income, statement of financial position and statement of
cash flows. As a result, no reconciliation is required because the information as presented is what is used by
the Board to make strategic decisions.
NOTE 21 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Interest revenue
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
The Group’s principal financial instrument comprises cash. The main purpose of this financial instrument is to
provide working capital for the Group’s operations. The Group has various other financial instruments such as
sundry debtors, security bonds and trade creditors, which arise directly from its operations.
It is, and has been throughout the year under review, the Group’s policy that no trading in financial instruments
shall be undertaken.
The main risk arising from the Group’s financial instruments is interest rate risk. The Board reviews and agrees
on policies for managing each of these risks and they are summarised below.
2023 Annual Report | Page 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 21 – FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES - continued
Interest rate risk
At reporting date the Group’s exposure to market risk for changes in interest rates relates primarily to the
Group’s cash and bonds. The Group constantly analyses its exposure to interest rates, with consideration given
to potential renewal of existing positions, the mix of fixed and variable interest rates and the period to which
deposits may be fixed.
At reporting date, the Group had the following financial assets exposed to variable interest rates:
Financial Assets:
Cash and cash equivalents - interest bearing
Other receivables – bonds and deposits
Net exposure
There are no financial liabilities exposed to interest rates.
30 June 2023
$
30 June 2022
$
1,276,373
40,000
1,316,373
842,997
85,013
928,010
Sensitivity
At 30 June 2023, if interest rates had increased by 3% from the year end variable rates with all other variables
held constant, post tax loss would have been $39,491 lower and equity for the Group would have been $39,491
higher (2022: changes of 0.5% $4,615 lower loss and higher equity). The 3% (2022: 0.5%) sensitivity is based on
reasonably possible changes, over a financial year, using an observed range of historical RBA movements over
the last three years.
Liquidity risk
Liquidity risk management involves monitoring cash budgets to ensure adequate funding to meet obligations
when due. As at 30 June 2023, the Group has debt of $1,600,000 repayable in August 2024. The Group manages
liquidity risk by monitoring rolling forecasts of cash requirements and ensuring adequate cash reserves are
maintained (or assets that can be readily sold).
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining
sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from
defaults. The Group measures credit risk on a fair value basis.
Significant cash deposits are with institutions with a minimum credit rating of AA- (or equivalent) as determined
by a reputable credit rating agency e.g. Standard & Poor.
The Group does not have any other significant credit risk exposure to a single counterparty or any group of
counterparties having similar characteristics.
2023 Annual Report | Page 76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 22 – PARENT ENTITY INFORMATION
Statement of Financial Position Information
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net Assets
Issued capital
Reserves
Accumulated losses
Profit or loss information
Loss for the year
Comprehensive loss for the year
Company
30 June 2023
$
30 June 2022
$
1,805,867
4,650,972
(1,161,703)
(3,651)
1,332,466
3,994,462
(1,233,746)
(45,180)
5,291,485
4,048,002
86,156,285
8,221,856
(89,086,656)
5,291,485
76,523,067
7,848,968
(80,324,033)
4,048,002
(8,762,623)
(8,762,623)
(13,268,803)
(13,268,803)
Commitments and contingencies
There are no commitments or contingencies, including any guarantees entered into by Stavely Minerals
Limited on behalf of its subsidiaries other than as guarantor for Borrowings (refer to note 14).
Subsidiaries
Name of Controlled Entity
Stavely Pastoral Pty Ltd
Energy Metals Australia Pty Ltd
Class of
Share
Ordinary
Ordinary
Place of Incorporation
% Held by Parent Entity
30 June 2023
30 June 2022
Australia
Australia
100%
100%
100%
100%
NOTE 23 – EVENTS OCCURRING AFTER THE REPORTING PERIOD
Placement
On 6 July 2023, 39,444,454 shares were issued pursuant to a placement to sophisticated and institutional
investors. Gross proceeds were $3,550,000. Each Placement subscriber received one free attaching quoted
option for every two new Shares issued. Upon Shareholder approval received on 11 August 2023, the Directors
participated in the placement under the same terms with proceeds received by Stavely of $100,000. The
24,277,766 Options were issued on 29 August 2023 (including 4 million broker options) and are exercisable at
$0.15 each with an expiry date of 30 June 2024.
Acquisition of North West Nickel Group
On 23 May 2023, the Company announced that it has agreed to acquire the 1,800km2 Hawkstone Nickel-Copper-
Cobalt Project in the West Kimberley region of Western Australia.
The total consideration paid for the Acquisition comprised:
(a)
(b)
$50,000 cash, paid as a Deposit; and
the following securities:
(i)
$950,000 worth of fully paid ordinary shares in the capital of Stavely Minerals (SVY Shares), at a
deemed issue price equal to the five-day volume weighted average price of SVY’s Shares as
traded on the Australian Securities Exchange (5-day VWAP) up to and including the day prior to
the execution of the Definitive Agreement;
2023 Annual Report | Page 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
NOTE 23 – EVENTS OCCURRING AFTER THE REPORTING PERIOD - continued
(ii)
(iii)
$350,000 of performance rights (3,917,618), at a deemed issue price equal to the 5-day VWAP
up to and including the day prior to the execution of the Definitive Agreement, which convert
to ordinary shares on a 1:1 basis, subject to the satisfaction of the milestone of NWN receiving
approval of the five-year extension of the term of E04/2299 on or before 31 January 2024; and
$50,000 of performance rights (559,659), at a deemed issue price equal to the 5-day VWAP up
to and including the day prior to the execution of the Definitive Agreement, which convert to
ordinary shares on a 1:1 basis, subject to the satisfaction of the milestone of NWN receiving
approval of the five-year extension of the term of E04/2325, on or before 31 January 2024,
The Acquisition was completed on 14 August 2023.
Sale Listing for Farm Property
On 14 September 2023, the Group signed a listing agreement with an agent to sell all or part of the 524-acre
farm property.
There are no other matters or circumstances that have arisen since 30 June 2023 that have or may significantly
affect the operations, results, or state of affairs of the Group in future financial years.
2023 Annual Report | Page 78
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Stavely Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Stavely Minerals Limited (the Company) and its subsidiaries
(the Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
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 also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1(c) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
group’s ability to continue as a going concern and therefore the group may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
79
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying Value of Deferred Exploration Expenditure
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 11 to the Financial Report, the
Our procedures included, but were not limited to:
carrying value of capitalised exploration and evaluation
expenditure represents a significant asset of the
Group.
•
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
rights to tenure of those areas of interest
Refer to Notes 1(e) and 11 of the Financial Report for a
remained current at balance date, which
description of the accounting policy and significant
included obtaining and assessing supporting
judgments applied to capitalised exploration and
documentation such as license status
evaluation expenditure.
records;
In accordance with AASB 6 Exploration for and
•
Considering the Group’s intention to carry
Evaluation of Mineral Resources (“AASB 6”), the
out significant ongoing exploration
recoverability of exploration and evaluation
programmes in the respective areas of
expenditure requires significant judgment by
interest by holding discussions with
management in determining whether there are any
management, and reviewing the Group’s
facts or circumstances that exist to suggest that the
exploration budgets, ASX announcements and
carrying amount of this asset may exceed its
directors’ minutes;
recoverable amount. As a result, this is considered a
key audit matter.
•
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
•
Considering whether any facts or
circumstances existed to suggest impairment
testing was required; and
•
Assessing the adequacy of the related
disclosures in Notes 1(e) and 11 to the
Financial Report.
80
2
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
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.
81
3
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 38 to 46 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Stavely Minerals Limited, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Partner
Perth
26 September 2023
82
4
ADDITIONAL SHAREHOLDER INFORMATION
Information as at 22 September 2023
a)
Substantial Shareholders
Name
Peter Reynold Ironside
Jupiter Investment Management Ltd
Number of Ordinary Shares
per Notice given to
Stavely Minerals Limited
32,643,538
17,700,001
b) Distribution Schedule
Size of Holding
1 -
1,001 -
5,001 -
10,001 -
1,000
5,000
10,000
100,000
100,001 and over
Total
Number of shareholders holding less
than a marketable parcel
c) Voting Rights
Fully paid ordinary shares
Number of
Shareholders
336
907
639
1,623
503
4,008
1,476
Number of
Quoted
Optionholders
1
0
0
37
41
79
Other than voting exclusions required by the Corporations Act 2001 and subject to any rights or restrictions
attached to any class of shares, at a meeting of members, on a show of hands, each member present (in
person, by proxy, attorney or representative) has one vote and on a poll, each member present (in person,
by proxy, attorney or representative) has one vote, for each fully paid share they hold.
Options and Performance Rights
Option and Performance rights holders have no voting rights.
2023 Annual Report | Page 83
ADDITIONAL SHAREHOLDER INFORMATION
d)
Twenty Largest Shareholders:
Name
CITICORP NOMINEES PTY LIMITED
CHAKA INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
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