SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 0
Annual Report for the year ended 30 June 2024
Sunshine Metals Limited
ABN 12 063 388 821
ASX: SHN
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 1
Annual Report for the year ended 30 June 2024
Contents
02
Corporate
Directory
03
Chairman’s Letter
05
Review of
Operations
17
Corporate
18
Tenement
Interests
20
Exploration
Targets, Mineral
Resources and
Ore Reserves
23
Directors’ Report
30
Remuneration
Report
35
Statement of Profit
Or Loss and Other
Comprehensive
Income
36
Statement of
Financial Position
37
Statement of
Changes in Equity
38
Statement of Cash
Flows
39
Notes to the
Financial
Statements
65
Directors’
Declaration
66
Independent
Auditor’s Report
70
Auditor’s
Independence
Declaration
71
ASX Additional
Information
73
Corporate
Governance
Statement
74
Consolidated
Entity Disclosure
Statement
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 2
Annual Report for the year ended 30 June 2024
Queensland projects. Big potential.
Sunshine Metals is focused on discovery
and development of its high quality
projects in Queensland, led by the
Ravenswood Consolidated Project.
Corporate Directory
Board of Directors
Alec Pismiris (Chairman)
Damien Keys (Managing Director)
Paul Chapman (Non-Executive Director)
Leslie Davis (Non-Executive Director)
Antonio Torresan (Non-Executive Director)
Company Secretary
Shaun Menezes
Registered Office and Principal Business Office
Unit 1, 23 Mackley Street
Garbutt, Queensland 4814
Postal Address
Unit 1, 23 Mackley Street
Garbutt, Queensland 4814
Telephone
(+61 8) 6245 9828
Share Registry
Automic Registry Services
Level 5, 191 St Georges Terrace
Perth, Western Australia, 6000
Investor Enquiries: 1300 288 664
Auditor
HLB Mann Judd (WA) Partnership
Level 4, 130 Stirling Street
Perth, Western Australia, 6000
Telephone: (+61 8) 9227 7500
Securities Exchange Listing
ASX Limited (Australian Securities Exchange)
ASX Codes: SHN
Website
www.shnmetals.com.au
ABN
12 063 388 821
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 3
Annual Report for the year ended 30 June 2024
Chairman’s Letter
The Australian small cap mining sector has been under pressure this past year to say the least with
more than half of ASX-listed participants in the sector suffering market cap slides. This is despite
historic gold price highs, and copper prices touching US$4.59/pound during the financial year.
Comparatively, Sunshine Metals has held its ground against a long list of downward external
forces by returning solid and consistent progress as the company relentlessly executes its
strategy.
The 2024 financial year got off to a terrific start with the completion of the fully funded acquisition of
Greater Liontown at our flagship Ravenswood Consolidated Project near the historic mining town of
Charters Towers in north Queensland in September 2023.
Covering ~1,760km2, the Ravenswood Consolidated Project hosts a Zn-Au-Cu-Pb-Ag volcanic massive
sulphide (VMS) Resource of 5.45 million tonnes (Mt) at 12.0% recoverable zinc equivalent, a 5 - 8 Mt
copper-molybdenum exploration target at Titov, a 50Koz gold resource at the Plateau Breccia, and a
plethora of top shelf drilling targets.
Ravenswood Consolidated is rich with opportunity within a district which has collectively produced over
20 million ounces (Moz) gold, and 14 Mt of VMS ore (copper-gold, zinc-lead). We now control around
80% of the prospective Mt Windsor Volcanic belt, a highly prospective gold and base metal sequence.
We are pleased to report that during the financial year, the company completed three drilling campaigns
at Liontown and reported some outstanding intersections, which validated our refined geological model
and gold-copper focused footwall target.
In November, Sunshine confirmed a gold-copper rich zone, with multiple hits highlighted by a 17m @
22.14g/t Au intersection from 67m including 6m @ 58.74g/t Au. A later intersection of 20m @ 18.21g/t Au
from 114m including 10m @ 34.79g/t Au from 115m increased our exploration confidence at Liontown
and served to delineate a high-grade gold zone ~300m x 140m in dimension.
Our first pass drilling results in combination with around 19,000m of drilling since 2020 lead to a 21%
increase in Liontown’s JORC 2012 Mineral Resource in February to 2.94Mt @ 10.6% zinc equivalent. This
Resource contained a 10% increase in contained gold to 132koz and a 60% increase in contained copper
to 29kt Cu.
Sunshine’s exploration success continued in June when the company’s step out diamond drilling
campaign 250m east of the Liontown Resource intersected high-grade gold and copper mineralisation in
the Gap Zone. Results included 16.2m @ 4.54g/t Au with 1.11% Cu including 6.2m @ 9.00g/t Au with
2.52% Cu.
The financial year was rounded out at the commencement of further Resource drilling at Liontown.
Metallurgical studies have also commenced and results from drilling and studies will be incorporated into
a Resource upgrade, due in December 2024.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 4
Annual Report for the year ended 30 June 2024
Drilling Highlights
Throughout the year, Sunshine completed three
drilling campaigns at Liontown, returning
impressive intersections of gold and copper with
results including:
• 17m @ 22.1 g/t Au from 67m (23LTRC002)
• 20m @ 18.21 g/t Au from 114m (24LTRC005)
Including 10m @ 34.79 g/t Au from 115m
• 16.2m @ 4.54g/t Au, 1.11% Cu from 319m
(24LTDD024)
Including 6.2m @ 9.00g/t Au, 2.52% Cu
• 16.7m @ 3.73g/t Au, 0.53% Cu from 238m
(24LTDD011)
Including 7.7m @ 6.43g/t Au, 0.85% Cu
• 3m @ 6.81 g/t Au from 186m (24LTRC004)
Meanwhile, Sunshine’s shareholder registry was strengthened significantly with Melbourne’s Lion
Selection Group and Toronto’s 1832 Asset Management supporting the company’s $4 million placement
in March. Their contribution along with the enduring support of our valued shareholders means we are
well funded to continue focused exploration at priority gold-copper prospects across the Ravenswood
Consolidated Project.
On 26 August 2024, the Company entered into a binding sale and purchase agreement with Dart Mining
NL, to divest the Triumph Gold Project for a total consideration of $2 million, comprised of $1 million in
cash and $1 million in Dart fully paid ordinary shares, subject to completion.
Sunshine’s Queensland projects have big system potential. We look forward to the next 12 months as our
team delivers on our commitment to return increasing value to all shareholders.
The Company would like to thank its loyal shareholders, management and staff for their continued
support.
Yours faithfully,
Alec Pismiris
Chairman, Sunshine Metals Ltd
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 5
Annual Report for the year ended 30 June 2024
Review of Operations
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 6
Annual Report for the year ended 30 June 2024
Ravenswood Consolidated Project
Gold, Copper, Molybdenum, Zinc, Lead
Ownership 100% / Earning 75% (Lighthouse JV)
The 1,760km2 Ravenswood Consolidated Project near Charters Towers is located within a prolific
mining district which hosts some of Queensland’s largest mines and has collectively produced
over 20 million ounces (Moz) gold, and 14 Mt of volcanogenic massive sulphide (VMS) ore (copper-
gold, zinc-lead). The project holds a Au-Cu, Zn-Pb-Ag VMS Resource of 5.45mt @ 12.0% ZnEq (47%
Indicated, 53% Inferred1).
Significant Increase in Liontown Resource
On 7 February 2024, Sunshine announced an increase in the Resource at the Liontown deposit, of 21%
to 2.94mt @10.6% ZnEq. This features an impressive 116% increase in the Indicated category to 1.85mt
@ 10.9% ZnEq, now comprising 63% of the Liontown Resource all achieved with an increase in grade.
The Resource contained a 10% increase in contained gold to 132koz Au and 60% increase in contained
copper to 29kt Cu, further supporting Sunshine’s recent Au-Cu focus. The Resource increase at
Liontown has increased the Ravenswood Consolidated Project’s total Resource to 5.45mt @ 12.0% ZnEq,
a 10% increase with the Indicated Resource now at 47% of the total.
A Resource update is scheduled for December 2024.
Figure 1. Ravenswood Consolidated Project acreage
1 SHN ASX Release, 7 February 2024, “Significant Increase in Liontown Resource”
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 7
Annual Report for the year ended 30 June 2024
Liontown drilling delivers thick, high-grade results
Throughout the year, Sunshine completed three drilling campaigns at Liontown. 34 RC holes were drilled
(4,191m) and four diamond drill holes were completed (1,220.6m). Drilling targeted underexplored gold
and copper rich lodes in the footwall of the main Liontown Resource. Drilling returned impressive
intersections of gold and copper with results including:
•
17m @ 22.1 g/t Au from 67m (23LTRC002)2
•
20m @ 18.21 g/t Au from 114m (24LTRC005)3
Including 10m @ 34.79 g/t Au from 115m
•
16.2m @ 4.54g/t Au, 1.11% Cu from 319m (24LTDD024)4
Including 6.2m @ 9.00g/t Au, 2.52% Cu
•
16.7m @ 3.73g/t Au, 0.53% Cu from 238m (24LTDD011)4
Including 7.7m @ 6.43g/t Au, 0.85% Cu
•
3m @ 6.81 g/t Au from 186m (24LTRC004)3
On 27 May 2024, Sunshine announced the identification of a new Cu-rich footwall lode (Sapindinus
Lode) from shallow RC drilling at Liontown. The drilling focused on a line of historic shafts located deeper
into the footwall sequence than the gold-copper rich footwall lode. The Sapindinus Lode can be traced in
wide spaced historic drilling over ~200m of strike and is open in all directions. Sunshine intersected:
•
8m @ 2.73% Cu, 0.69g/t Au, 1.55% Zn, 1.79% Pb, 24g/t Ag from 38m (24LTRC014)
Including 3m @ 6.96% Cu, 0.61g/t Au, 3.95% Zn, 3.77% Pb, 60g/t Ag from 38m (24LTRC014)
Historic Sapindinus intersections in broad spaced drilling include:
•
5.6m @ 2.06% Cu, 7.45g/t Au, 2.99% Zn (from 99.7m, LTDD19030)
•
2m @ 6.57% Cu, 2.45g/t Au (from 58m, LLRC186)
Figure 2. Gold and sulphide bearing quartz-barite veins in a zone which returned 8.5m @ 5.47g/t Au
(LTDD22068)
2 ASX: SHN, 24th November 2023, 17m @ 22.1g/t Au Confirms Liontown Feeder Zone
3 ASX: SHN, 13th March 2024, 20m @ 18.21g/t Au Extends Au-Cu Rich Footwall at Liontown
4 ASX: SHN, 4th June 2024, Step Out Holes Hit Thick High-Grade Gold-Copper Liontown
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 8
Annual Report for the year ended 30 June 2024
Previous owners of Liontown drilled, but hadn’t logged or sampled, 25 diamond holes. Of these, assays
for 10 holes were announced previously (SHN Annual Report 2023) with the remaining 15 holes’ assays
received during the reporting period, including:
•
7.0m @ 2.50g/t Au, 0.41% Cu, 11.89% Zn, 5.04% Pb from 94.0m(LTDD22070)
•
10.1m @ 1.52g/t Au, 1.67% Cu, 5.25% Zn (12.51% ZnEq, from 78.0m, (LTDD22080)
•
3.9m @ 0.24g/t Au, 8.30% Cu (23.30% ZnEq, from 99.0m, (LTDD22074)
•
8.5m @ 5.47g/t Au, 0.39% Cu (10.17% ZnEq, from 73.5m, (LTDD22068)
Including 2.8m @ 15.64g/t Au, 0.4% Cu (from 76.3m)
•
3m @ 7.63g/t Au and 0.34% Cu from 298m (LTDD22069A)
Including 2m @ 11.27g/t Au and 0.36% Cu (from 299m)
Figure 3. Schematic cross section (looking west) of the various lodes at Liontown. Highlighted are the
stratigraphy parallel Main (blue) and New Queen (orange) Lodes and the sub-vertical Carrington (pink)
and Sapindinus (green) Lodes
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 9
Annual Report for the year ended 30 June 2024
Au-Cu Focussed Geophysical Surveys
On 6 May 2024, Sunshine announced results from the three induced polarisation (“IP”) geophysical
surveys at the Liontown, Truncheon and Highway East prospects. Truncheon and Highway East are
proximal to the historic Highway-Reward mine (3.9Mt @ 5.4% Cu & 1.1 g/t Au mined).
The Reward and Highway deposits were discovered in 1987 and 1989 respectively. Geologically, they are
comprised of massive pyrite-chalcopyrite pipes situated within the margins of rhyolitic domes. The pipes
were enveloped by a halo of pyrite-sphalerite-chalcopyrite-galena-barite which exhibited a significant
geochemical footprint of Cu, Pb and Zn anomalism.
IP played a significant role in the discovery of the Conviction Lode at Highway-Reward. Discovery hole
RPHY816 (drilled by RGC Exploration, 1998) targeted a coincident low resistivity – moderate
chargeability zone and intersected 86m @ 1.32g/t Au (CR_30836). IP also was the targeting tool used in
the discovery at Liontown East which currently stands at an Inferred Resource of 1.47mt @ 11.0% ZnEq.
The IP program generated seven exciting targets based on chargeable anomalies coincident with gold
and base metal soil anomalism at Liontown, Truncheon and Highway East.
The IP anomalism at Truncheon is coincident with strong gold, copper and lead soil anomalism. The two
shallower targets at Truncheon have seen limited historical drilling and no dedicated gold exploration. A
deep IP resistive low, presents a second target at Truncheon.
Two continuous, strong IP chargeability anomalies extend over 400m at Highway East. The westernmost
anomaly is coincident with Cu-Pb-Zn anomalism in soil. No gold assays are recorded for the soil surveys.
One line of dipole-dipole induced polarisation (“DDIP”) was undertaken at Liontown as a validation and
infill line against a broader survey conducted in 2017. As well as delineating the Liontown lodes, two
undrilled chargeability anomalies of similar intensity were identified ~500m south and 1km north of
Liontown.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 10
Annual Report for the year ended 30 June 2024
Figure 4. Gravity image showing historic 3.9mt Highway Reward Mine (5.4% Cu, 1.1g/t Au mined grade)
and key prospects Truncheon and Highway East. Mines and targets are all coincident with strong gravity
responses, inferred to be responses from massive sulphides.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 11
Annual Report for the year ended 30 June 2024
Figure 5. Chargeability section (L 7748000N) showing the westernmost anomaly at Highway East
coincident with both a moderate conductor and elevated geochemistry in soil.
Figure 6. Chargeability sections from the 2024 & 2017 IP survey which show the Liontown-Liontown East
chargeable trend. The Resource at Liontown provides a clear IP chargeable response as do the two
nearby targets (red anomalies).
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 12
Annual Report for the year ended 30 June 2024
Regional Exploration Drilling
Lighthouse Farm-In - Cardigan Dam and Plateau
On 19 January 2024, Sunshine announced encouraging first pass drilling results at Cardigan Dam, on the
Lighthouse Farm-In ground.
Cardigan Dam is located 3.5km SE of the Plateau Au deposit and comprises a ~300m long, sub-cropping
zone of brecciated and sheared granodiorites. Historic rock chip results from the Main Gossan include:
23.4 g/t Au, 15.6 g/t Au, 11.4 g/t Au and 9.9 g/t Au. The rock chips correlate with a 300m long, >50ppb
Au soil anomaly and are coincident with a magnetic feature interpreted to be a large fault zone.
Drilling (3 holes, 327m) was spaced ~60m apart along the Main Gossan. Encouraging assay results
returned:
•
3m @ 1.56 g/t Au, 3.93 g/t Ag from 31m (23CDRC002)
•
1m @ 0.65 g/t Au from 351m (23CDRC005)
A second gossan was identified, the Southern Gossan, and is located 480m south of the Main Gossan
ridge. The gossanous zone of sheared volcanic has been defined in mapping over 180m strike, with rock
chips assaying:
•
59.50 g/t Au, 41 g/t Ag (CD23_059)
•
9.58 g/t Au (CD23_004)
Table 1. Significant intercepts from Coronation RC drilling, Ravenswood Consolidated.
Outcropping gossans were first recognised at Plateau in 1976. Gold focused drilling (1,352m) was
completed in 1985 by Esso with a best intersection of 86m @ 1.62 g/t Au. More recent infill and
extensional drilling on the Plateau Breccia and Eastern Limb Fault Zones has culminated in an initial
Resource of 961kt @ 1.66 g/t Au for 50k oz Au.
Sunshine completed five reconnaissance RC holes (505m) aimed at the undrilled northeast corner of the
Plateau breccia pipe. Three of the five holes intersected rhyolitic breccia and four holes returned
anomalous gold. Assays included:
•
1m @ 2.29 g/t Au from 41m (23PLRC004)
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 13
Annual Report for the year ended 30 June 2024
Table 2. Significant intercepts from Coronation RC drilling, Ravenswood Consolidated.
Coronation Prospect
Sunshine completed an initial eight hole (1,220m) drill campaign at Coronation which is located 2.7km
north of the analogous Highway-Reward Cu-Au Mine (3.9mt @ 5.4% Cu & 1.1g/t Au mined) and ~32km,
by sealed road, south of the mining centre of Charters Towers.
The RC program tested six gravity anomalies (CorG1 to CorG6) with seven holes drilled (1,235m,
averaging 176m depth). One further short RC hole (41m) tested a 2m thick, pyritic jasper that was
exposed during drill pad clearing.
Gold mineralisation in barite veining was observed above the historic Highway-Reward Mine. At
Coronation in RC hole 23CORC004, a 13m zone of barite veining was encountered from 10m depth. The
barite veined zone graded:
•
8m @ 1.29 g/t Au from 10m (23CORC004),
Including 3m @ 2.23 g/t Au from 10m (23CORC004)
Elevated zinc and lead were also intersected at Coronation with anomalous results including:
•
2m @ 1.79% Zn, 0.62% Pb, 0.17 g/t Au, 0.15% Cu from 90m (23CORC003)
The barite vein intersection in 23CORC04 is the only drill test of the gold bearing vein system. Further
drilling is planned to determine the extent of the gold bearing vein system.
Table 3. Significant intercepts from Coronation RC drilling, Ravenswood Consolidated.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 14
Annual Report for the year ended 30 June 2024
Triumph Project
Gold
Ownership 100%
Sunshine Metals released a 118,000 ounce JORC 2012 Mineral Resource grading 2.03g/t Au in
March 2022. The initial Resource is a product of the successful drilling programs completed to
date.
The Resource comprises three zones totalling ~1.25km of strike within the >5km long Southern Corridor
and one zone in the Northern Corridor. Over 90% of the Resource ounces are within 100m of surface.
Rock chip sampling and broad spaced drilling have defined mineralisation beyond the Resource limits
along the remaining 3.75km of the Southern Corridor.
On 26 August 2024, the Company entered into a binding sale and purchase agreement with Dart Mining
NL (“Dart”), to divest Triumph for a total consideration of $2 million, comprised of $1 million in cash and
$1 million in Dart fully paid ordinary shares, subject to completion.
Figure 7. Triumph Project location.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 15
Annual Report for the year ended 30 June 2024
Investigator Project
Copper
Ownership 100%
The project is located 100km north of the Mt Isa, home to rich copper-lead-zinc mines that have
been worked for almost a century. Investigator is hosted in the same stratigraphy and a similar
fault architecture as the Capricorn Copper Mine which is located 12km to the north.
First field mapping was undertaken at Investigator in February 2022, which focused on refining the
location and thickness of the east-west oriented Investigator Fault.
Since that time, there have been no further significant activities undertaken at Investigator as the
Company’s focus was concentrated at its flagship Ravenswood Consolidated Project near Townsville.
A number of parties have expressed interest in the project which Sunshine plans to divest.
Figure 8. Investigator Project location.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 16
Annual Report for the year ended 30 June 2024
Hodgkinson Project
Gold & Tungsten
Ownership 100%
The project is situated between the Palmer River alluvial gold field (1.35 Moz Au) and the historic
Hodgkinson gold field (0.3 Moz Au) and incorporates the Elephant Creek Gold, Peninsula Gold-
Copper and Campbell Creek Gold prospects.
A detailed review and integration of data from the magnetic survey completed (December 2020) and soil
sampling completed (May 2021) has generated targets for drill testing in the northern area at Campbell
Creek.
Three gold-in-soil anomalies were identified in May 2021 with the main anomaly field mapped in August
2021. The study showed quartz veining through Hodgkinson Formation sediments. The anomalies are
flagged for future follow up work.
Since that time, there have been no further significant activities undertaken at Hodgkinson as the
Company’s focus was concentrated at its flagship Ravenswood Consolidated Project near Townsville.
A number of parties have expressed interest in the project which Sunshine plans to divest.
Figure 9. Hodgkinson Project location.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 17
Annual Report for the year ended 30 June 2024
Corporate
As at 30 June 2024, Sunshine held cash reserves at of ~$3.4M, with 1,952 shareholders and
1,587,644,808 ordinary fully paid shares on issue with the top 20 shareholders holding 43.68% of the
total issued capital.
Change of Company name to Sunshine Metals
As approved by shareholders at the General Meeting held on 23 June 2023, Sunshine Gold Limited
changed with effect from 5 July 2023 as follows: From: Sunshine Gold Limited to Sunshine Metals
Limited.
Completion of Greater Liontown Transaction
On 6 September 2023 the company announced the completion of the Greater Liontown transaction.
Following completion of the Greater Liontown transaction, Sunshine controls ~80% of the highly
prospective Mt Windsor VMS horizon and ~1,760km2 of highly prospective Au/Cu-Au ground.
Share Placements
In September 2023, Sunshine completed a placement of $3 million (before costs) at an issue price of
$0.014 to institutional and sophisticated investors (Placement). Participants received 1 attaching unlisted
option for every 3 shares allocated in the Placement, exercisable at $0.03 with a 30 September 2025
expiry (Attaching Options).
On 25 March 2024, the Company announced the completion of a $4 million placement at an issue price
of $0.011 per share to accelerate drilling activities at the Ravenswood Consolidated Project. 1832 Asset
Management L.P. has emerged as a substantial shareholder, following the Placement which also included
Lion Selection Group Ltd, a major shareholder of the Company. Participants received 1 attaching unlisted
option for every 3 shares allocated in the Placement, exercisable at $0.03 with a 30 September 2025
expiry (Placement Options).
INVESTMENT IN COCKATOO IRON NL
Sunshine Metals held 6,250,000 unlisted fully paid ordinary shares in Cockatoo Iron NL (“Cockatoo Iron”)
as a consequence of the sale of its interests in the Cockatoo Island Project and participation in a
subsequent entitlements issue. Cockatoo Iron has a 43.24% interest in Pearl Gull Limited (ASX: PLG). On
11 January 2024, the Company received 755,321 shares in Pearl Gull Limited following the completion of
an in-specie distribution of Pearl Gull shares by Cockatoo Iron which was approved by shareholders at a
General Meeting on 8 January 2024.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 18
Annual Report for the year ended 30 June 2024
Tenement Interests
Project
Tenement
Status
Beneficial Interest
Hodgkinson
EPM 18171
Granted
100%
Hodgkinson
EPM 19809
Granted
100%
Hodgkinson
EPM 25139
Granted
100%
Hodgkinson
EPM 27539
Granted
100%
Hodgkinson
EPM 27574
Granted
100%
Hodgkinson
EPM 27575
Granted
100%
Investigator
EPM 27343
Granted
100%
Investigator
EPM 27344
Granted
100%
Investigator
EPM 28369
Application
100%
Triumph
EPM 18486
Granted
100%
Triumph
EPM 19343
Granted
100%
Ravenswood
EPM 26041
Granted
100%
Ravenswood
EPM 26152
Granted
100%
Ravenswood
EPM 26303
Granted
100%
Ravenswood
EPM 26304
Granted
100%
Ravenswood
EPM 27824
Granted
100%
Ravenswood
EPM 27825
Granted
100%
Ravenswood
EPM 28237
Granted
100%
Ravenswood
EPM 28240
Granted
100%
Ravenswood
EPM10582
Granted
100%
Ravenswood
EPM12766
Granted
100%
Ravenswood
EPM16929
Granted
100%
Ravenswood
EPM26718
Granted
100%
Ravenswood
EPM27357
Granted
100%
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 19
Annual Report for the year ended 30 June 2024
Project
Tenement
Status
Beneficial Interest
Ravenswood
EPM27520
Granted
100%
Ravenswood
EPM14161
Granted
100%
Ravenswood
EPM25815
Granted
100%
Ravenswood
EPM18471
Granted
100%
Ravenswood
EPM18470
Granted
100%
Ravenswood
EPM18713
Granted
100%
Ravenswood
EPM25895
Granted
100%
Ravenswood
ML10277
Granted
100%
Ravenswood
ML100290
Approved
100%
Ravenswood
ML100302
Approved
100%
Ravenswood#
EPM25617
Granted
0%
Ravenswood#
EPM26705
Granted
0%
# Farm-In tenements. SHN has the capacity to earn 75% beneficial interest over 3 years. Refer ASX: 20 January 2023.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 20
Annual Report for the year ended 30 June 2024
Exploration Targets, Mineral
Resources and Ore Reserves
Sunshine Metals’ Resource at Triumph at 30 June 2024 was 1.8 million tonnes at 2.03 g/t Au for 118 koz
of contained gold (100% Inferred).
As at June 30 2024, Greater Liontown currently hosts a Zn-Cu-Pb-Au VMS Resource of 5.45 million
tonnes at 12.0% ZnEq (47% Indicated, 53% Inferred). The Liontown Resource is composed of the
Liontown, Liontown East, Waterloo and Orient deposits.
Sunshine Metals is earning an interest in the Plateau Resource. The Resource currently stands at 961
thousand tonnes at 1.66 g/t Au for 49.7 koz of contained gold (100% Inferred). Sunshine Metals can earn
up to a 75% stake in the Resource (and Lighthouse Project) through exploration spend of $2.2 million
over 3 years commencing January 2023.
There were no 2012 JORC Code Ore Reserves (“Ore Reserves”) at 30 June 2024.
An Exploration Target (“Exploration Target”) has been defined for Titov Cu-Mo target. As at June 30
2024, the Exploration Target ranges between 5 - 8Mt @ 0.07% - 0.12% molybdenum (Mo) and 0.28% -
0.44% copper (Cu).
Table 1: Resources at as 30 June 2024.
Table 2: Titov Exploration Target at as 30 June 2024.
Notes on Resource:
1.
The preceding statement of Resources conforms to the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code) 2012 Edition’ (“2012 JORC Code”).
2.
All tonnages are reported as dry metric tonnes.
Resource
Tonnage
Copper
Molybdenum
Class
(kt)
(%)
(%)
Titov
Exploration Target
5,000 - 8,000
0.28 - 0.44
0.07 - 0.12
Prospect
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 21
Annual Report for the year ended 30 June 2024
3.
Data is rounded to thousands of tonnes and thousands of ounces gold. Discrepancies in totals may occur due to rounding.
4.
Resources have been reported with varying cut-offs based on several factors discussed in the corresponding Table 1 which can be found
with the original ASX release, 31 March 2022 “Robust Maiden Resource at Triumph Gold Project”
5.
Resources have been reported with varying cut-offs based on several factors discussed in the corresponding Table 1 which can be found
with the original ASX release, 8 May 2023 “Fully Funded Acquisition of Greater Liontown”
6.
Resources have been reported with varying cut-offs based on several factors discussed in the corresponding Table 1 which can be found
with the original ASX release, 20 January 2023 “Consolidation of High Grade Advanced Au Prospects RW”
7.
Exploration Target for Titov based on several factors discussed in the corresponding Table 1 which can be found with the original ASX
release 21 March 2023 “Shallow High Grade Titov Cu-Mo Exploration Target”
Quality Control
Sunshine Metals ensures that the Resource estimate quoted is subject to internal controls activated at a site and
corporate level. All aspects of the Resource process follow a high level of industry standard practices. Contract RC
and diamond drilling at Triumph was overseen by experienced Sunshine Metals’s employees, with completed holes
subject to downhole gyroscopic survey and collar coordinates surveyed with RTK GPS. Geological logging and
sampling were completed by Sunshine Metals’s geologists. Sunshine Metals employs field quality control (QC)
procedures, including addition of standards, blanks and duplicates ahead of assaying which was undertaken using
industry standard fire assay at Intertek and ALS laboratories in Townsville. All drilling information is continually
validated and managed by a database consultant. Geological models and wireframes were built using careful
geological documentation and interpretations, all of which were validated by peer review. Resource estimation was
undertaken by consultant Measured Group. Estimation techniques are industry standard and include block
modelling using Ordinary Kriging. Application of other parameters including cut off grades, top cuts and
classification are all dependent on the style and nature of mineralisation being assessed. All Resources are reported
under the 2012 JORC Code. No Ore Reserve estimation has been completed at Triumph. Current Mineral Resource
Estimates at Greater Liontown and at Plateau were undertaken by and reported to JORC 2012 standards by the
previous tenure operators and were subject to site and corporate due diligence procedures by Sunshine Metals
prior to acquisition. This included review of available data, geological modelling and estimation techniques.
Competent Person Statement
The information in this report that relates to Resources at Triumph is based on information compiled and reviewed
by Mr Andrew Dawes, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Principal
Geologist employed by Measured Group Pty Ltd. Mr Andrew Dawes 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 JORC Code. Mr Andrew Dawes 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 report that relates to Mineral Resources at Waterloo and Orient is based on information
compiled and reviewed by Mr Stuart Hutchin, who is a Member of the Australian Institute of Geoscientists (AIG) and
is a Principal Geologist employed by Mining One Pty Ltd. Mr Stuart Hutchin 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 Mineral
Resources. Mr Stuart Hutchin 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 report that relates to Mineral Resources at Liontown and Liontown East is based on
information compiled and reviewed by Mr Peter Carolan, who is a Member of the Australasian Institute of Mining
and Metallurgy and was a Principal Geologist employed by Red River Resources Ltd. Mr Peter Carolan 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 Mineral Resources. Mr Peter Carolan 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 report that relates to Mineral Resources at Plateau is based on information compiled and
reviewed by Dr Damien Keys, who is a Member of the Australasian Institute of Mining and Metallurgy and a Member
of the Australian Institute of Geoscientists (AIG). Dr Keys 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 Mineral Resources. Dr
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 22
Annual Report for the year ended 30 June 2024
Keys 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 report that relates to the Titov Exploration Target is based on, and fairly represents,
information compiled by Mr Matt Price, a Competent Person who is a Member of the Australian Institute of
Geoscientists (AIG) and the Australian Institute of Mining and Metallurgy (AusIMM). Mr Price 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 JORC Code. Mr Price
consents to the inclusion in the report of the matters based on his information in the form and context in which it
appears.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 23
Annual Report for the year ended 30 June 2024
Directors’ Report
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 24
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT
The directors present their report together with the financial statements of the Group consisting of Sunshine
Metals Limited (“Sunshine Metals” or “the Company”) and its controlled entities for the financial year ended
30 June 2024 (“Balance Date”), the notes to the financial statements and the auditor’s report thereon.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of this
report are as follows. Directors were in office for the entire period unless otherwise stated.
Alec Pismiris
Damien Keys
Paul Chapman
Leslie Davis
Antonio Torresan
PARTICULARS OF DIRECTORS
Alec Pismiris B.Comm, MAICD, FGIA, FCIS
Chairman
Mr Pismiris has over 30 years of experience in the securities, finance and mining industries. Since 1990, Mr
Pismiris has served as a director and/or company secretary for various ASX listed companies as well as a
number of unlisted public and private companies. Mr Pismiris completed a Bachelor of Commerce degree at
the University of Western Australia, is a member of the Australian Institute of Company Directors and a fellow
of The Governance Institute of Australia. Mr Pismiris has participated numerous times in the processes by
which boards have assessed the acquisition and financing of a diverse range of assets and has participated
in and become familiar with the range of evaluation criteria used and the due diligence processes commonly
adopted in the commercial assessment of corporate opportunities.
Other current directorships: Agrimin Limited, Bubalus Resources Limited and The Market Limited.
Former directorships (last 3 years): Lanthanein Resources Limited and Pacton Gold Inc (TSX-V).
Damien Keys PhD (Struct. Geo), MAIG
Managing Director
Dr Keys is a geologist with over 20 years experience in mining and exploration. Dr Keys has led teams to
exploration success with Gold Fields Australia, Silver Lake Resources, Black Cat Syndicate and Spectrum
Metals. Dr Keys has completed a PhD in Structural Geology, a Bachelor of Science (Hons) and is a member
of the AUSIMM and the Australian Institute of Geoscientists.
Other current directorships: None
Former directorships (last 3 years): None
Paul Chapman B.Comm, Grad. Dip. Tax, CA, MAICD, MAusIMM
Non-Executive Director
Mr Chapman is a company director with over 30 years in the resource sector. Mr Chapman has held senior
management roles across a range of commodity businesses and public companies in Australia and the USA.
Mr Chapman was a founding director and shareholder of Reliance Mining, Encounter Resources, Rex
Minerals, Silver Lake Resources, Black Cat Syndicate and Dreadnought Resources.
Other current ASX directorships: Black Cat Syndicate, Dreadnought Resources, Meeka Metals
Former directorships (last 3 years): Encounter Resources
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 25
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
PARTICULARS OF DIRECTORS (CONTINUED)
Leslie Davis B.Sc. MAusIMM
Non-Executive Director
Mr Davis has over 40 years mining industry experience and was the founding Managing Director of Silver
Lake Resources and a current director of Black Cat Syndicate. Mr Davis has completed a Masters of
Science in mineral economics.
Other current ASX directorships: Black Cat Syndicate
Former directorships (last 3 years): None
Antonio Torresan
Non-Executive Director
Mr Torresan is a businessman with significant experience in capital markets. Mr Torresan has been actively
involved in arranging capital raisings, funding and supporting ASX listed companies as well as unlisted public
companies, providing investor relation services and assisting boards with development of strategic plans. Mr
Torresan has also played a significant role in negotiating mergers and acquisitions, especially in the mining
exploration sector where he has been pivotable in the recapitalisation and growth of ASX listed companies.
Mr Torresan has held numerous executive positions where his responsibilities have included strategy,
operational management and business development.
Other current directorships: None
Former directorships (last 3 years): None
COMPANY SECRETARY
Shaun Menezes, B.Comm, LLB, CA, AGIA (appointed 1 July 2024)
Mr Menezes is an accounting and finance professional with over 20 years’ experience. Mr Menezes has
worked in the capacity of Company Secretary and Chief Financial Officer of a number of ASX and SGX listed
companies, held a senior management role within an ASX 200 listed company and was an executive director
at a leading international accounting firm.
Alec Pismiris, B.Comm, MAICD, FGIA, FCIS (resigned 1 July 2024)
Mr Pismiris has over 30 years’ experience in the securities, finance and mining industries and has held a
number of company secretary positions for various ASX listed companies as well as a number of unlisted
public and private companies over the years.
DIRECTORS’ MEETINGS
The following table sets out the number of meetings of the Company’s directors, held during the year ended
30 June 2024 by each director:
Number
Eligible to Attend
Number
Attended
Alec Pismiris
12
12
Damien Keys
12
12
Paul Chapman
12
10
Leslie Davis
12
12
Antonio Torresan
12
11
The Board also approved 5 circular resolutions during the year ended 30 June 2024.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 26
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
PRINCIPAL ACTIVITIES
The principal activities of the Group during the course of the financial year comprised of exploration on the
Ravenswood Consolidated Project.
OPERATING AND FINANCIAL REVIEW
The Group made a loss after tax of $6,928,601 for the year ended 30 June 2024 (2023: $3,489,942).
REVIEW OF OPERATIONS
Our operations are reviewed on pages 5 to 16.
OPERATING AND FINANCIAL RISKS
The Group’s activities have inherent risk and the Board is unable to provide certainty of the expected results
of activities, or that any or all of the likely activities will be achieved. The material business risks faced by the
Group that could influence the Group’s future prospects, and how the Group manages these risks, are
detailed below:
Operational risks
The Group may be affected by various operational factors. In the event that any of these potential risks
eventuate, the Group’s operational and financial performance may be adversely affected. No assurances can
be given that the Group will achieve commercial viability through the successful exploration and/or mining of
its tenement interests. Until the Group is able to realise value from its projects, it is likely to incur ongoing
operating losses.
The Group’s tenements are at various stages of exploration, and potential investors should understand that
mineral exploration and development are speculative and high-risk undertakings that may be impeded by
circumstances and factors beyond the control of the Group.
There can be no assurance that exploration of the tenements, or any other exploration properties that may
be acquired in the future, will result in the discovery of an economic Resource. Even if an apparently viable
deposit is identified, there is no guarantee that it can be economically exploited.
There is no assurance that exploration or project studies by the Group will result in the definition of an
economically viable mineral deposit. In the event the Group successfully delineates economic deposits on
any tenement, it will need to apply for a mining lease to undertake development and mining on the relevant
tenement. There is no guarantee that the Group will be granted a mining lease if one is applied for and if a
mining lease is granted, it will also be subject to conditions which must be met.
Further capital requirements
The Group’s projects may require additional funding in order to progress activities. There can be no
assurance that additional capital or other types of financing will be available if needed to further exploration
or possible development activities and operations or that, if available, the terms of such financing will be
favourable to the Group.
The Group’s activities are subject to Government regulations and approvals
The Group is subject to certain Government regulations and approvals. Any material adverse change in
government policies or legislation in Queensland and/or Australia that affect mining, processing,
development and mineral exploration activities, export activities, income tax laws, royalty regulations,
government subsidiaries and environmental issues may affect the viability and profitability of any planned
exploration or possible development of the Group’s portfolio of projects.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 27
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
OPERATING AND FINANCIAL RISKS (CONTINUED)
Global conditions
General economic conditions, movements in interest and inflation rates and currency exchange rates may
have an adverse effect on the Group’s exploration activities, as well as on its ability to fund those activities.
General economic conditions, laws relating to taxation, new legislation, trade barriers, movements in interest
and inflation rates, currency exchange controls and rates, national and international political circumstances
(including outbreaks in international hostilities, wars, terrorist acts, sabotage, subversive activities, security
operations, labour unrest, civil disorder, and states of emergency), natural disasters (including fires,
earthquakes and floods), and quarantine restrictions, epidemics and pandemics, may have an adverse effect
on the Group’s operations and financial performance, including the Group’s exploration, as well as on its
ability to fund those activities.
General economic conditions may also affect the value of the Group and its market valuation regardless of
its actual performance.
EXPLORATION TARGETS, RESOURCES AND ORE RESERVES STATEMENT
Please refer to page 20 for the Minerals Resources and Ore Reserves Statement.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than what has been disclosed in the review of operations section, there has been no change in the
state of affairs during the financial year.
DIVIDENDS
No dividends were paid or recommended for the year ended 30 June 2024.
EVENTS SUBSEQUENT TO REPORTING DATE
On 26 August 2024, the Company entered into a binding sale and purchase agreement with Dart Mining NL
(“Dart”), to divest the Triumph Gold Project (“Triumph”) for a total consideration of $2 million, comprised of $1
million in cash and $1 million in Dart fully paid ordinary shares, subject to completion.
No other matters or circumstances have arisen subsequent to the balance date which would significantly
affect the operations of the Company, its operating results or its state of affair in the subsequent financial
years.
COMPANY SECURITIES
The Company has the following securities on issue as at the date of the Directors’ Report.
Security Description
Number of
Securities
Fully paid shares
1,587,644,808
Unissued shares
As at the date of this report, there were the following unissued shares on issue:
Security Description
Number of Securities
Ordinary shares under options
351,673,945
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 28
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
COMPANY SECURITIES (CONTINUED)
Unlisted options on issue
Options exercisable at $0.03 expiring 30 September 2025
288,240,611
Options exercisable at $0.03 expiring 2 November 2025
1,000,000
Options exercisable at $0.0225 expiring 7 July 2027
20,000,000
Options exercisable at $0.0225 expiring 30 June 2027
25,733,334
Options exercisable at $0.021 expiring 27 November 2026
15,000,000
Option holders do not have any right, by virtue of the options, to participate in any share issue of the
Company or any related body corporate.
Shares issued as a result of the exercise of options
During the financial year there were no ordinary shares issued as a result of the exercise of options (2023:
Nil).
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
Given that the nature of the Group’s activities is exploration focused, no further information can be provided
as to likely developments as such developments will depend on exploration success at the Group’s various
projects.
ENVIRONMENTAL REGULATION
The Group has assessed whether there are any particular or significant environmental regulations which
apply. It has determined that the risk of non-compliance is low and has not identified any compliance
breaches during the year.
DIRECTORS’ INTERESTS IN SHARES OF THE COMPANY
At the date of this report, the directors’ (and their associates) interests in shares of Sunshine Metals were:
Number of
Ordinary
Shares
Number of
Options
Alec Pismiris
21,062,500
12,555,555
Damien Keys
43,118,182
13,606,060
Paul Chapman
58,091,364
11,812,121
Leslie Davis
44,991,515
13,606,060
Antonio Torresan
85,666,667
12,000,000
CORPORATE GOVERNANCE
In recognising the need for high standards of corporate behavior and accountability, the directors support
and have substantially adhered to the recommendations set by the ASX Corporate Governance Council.
The Company’s corporate governance statement can be viewed on the Company’s website at
www.shnmetals.com.au/investor-centre/corporate-governance/.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 29
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
INDEMNIFICATION AND INSURANCE OF DIRECTORS
The Company has, during or since the financial year, in respect of any person who is or has been an officer of
the Company or a related body corporate indemnified or made a relevant agreement for indemnifying against
a liability incurred as an officer, including costs and expenses in successfully defending legal proceedings.
In addition, the Company has, during or since the financial year, the Company has paid insurance premiums
in respect of directors and officers liability and corporate reimbursement, for directors and officers of the
Company. The insurance premiums relate to:
-
any loss for which the directors and officers may not be legally indemnified by the Company arising out of
any claim, by reason of any wrongful act committed by them in their capacity as a director or officer, first
made against them jointly or severally during the period of insurance; and
-
indemnifying the Company against any payment which it has made and was legally permitted to make
arising out of any claim, by reason of any wrongful act, committed by any director or officer in their capacity
as a director or officer, first made against the director or officer during the period of insurance.
The insurance policy outlined above does not allocate the premium paid to each individual officer of the
Company and does not allow for disclosure of the premium.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act
2001 is set out on page 70.
NON-AUDIT SERVICES
The Board is satisfied that the provision of non-audit services during the year is compatible with the general
standard of independence for auditors imposed by the Corporations Act 2021. The Board is also satisfied
that the services disclosed below do not compromise the external auditors’ independence for the following
reasons:
-
all non-audit services are reviewed and approved by the Board prior to commencement to ensure they do
not adversely affect the integrity and objectivity of the auditor; and
-
the nature of the services provided does not compromise the general principles relating to auditor
independence in accordance with APES 110: Code of Ethics for Professional Accountants set by the
Accounting Professional and Ethical Standards Board.
The were no fees paid or payable to HLB Mann Judd during the year ended 30 June 2024 (2023: $Nil) for
non-audit services.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 30
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED)
This report outlines the remuneration arrangements in place for directors and executives of the Group.
Remuneration policy
The remuneration policy has been designed to align director and executive objectives with shareholder and
business objectives by providing a fixed remuneration component and potentially offering specific long-term
incentives based on key performance areas affecting the Group’s ability to attract and retain the best
executives and directors to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for directors and senior executives
of the Group is set out below.
The remuneration policy setting out the terms and conditions for the executive directors and senior executives
was developed by the Board.
Executive remuneration and other terms of employment are reviewed annually by the Board having regard to
performance against goals set at the start of the year and relevant comparative information.
As well as a base salary, remuneration packages may include superannuation, retirement and termination
entitlements, performance-related bonuses and fringe benefits.
Remuneration packages are set at levels that are intended to attract and retain executives capable of
managing the Group’s diverse activities.
Remuneration and other terms of employment for the directors have been formalised in service agreements
as follows:
A. The Group has entered into an executive service agreement with managing director, Dr Damien Keys.
The terms of the service agreement are set out as follows:
-
Commencement date: 24 November 2020
-
Term: two years (extended by a further 2 years on initial expiry)
-
Fixed remuneration: $300,000 per annum (exclusive of superannuation)
-
Termination for cause: no notice period
-
Termination without cause: three month notice period
Remuneration policy (continued)
B. The Group has entered into agreements with non-executive directors. The terms of the agreements
are set out as follows:
-
Term: no fixed term
-
Fixed remuneration: $45,000 per annum (exclusive of superannuation)
-
Termination for cause: no notice period
-
Termination without cause: no notice period
Remuneration of non-executive directors is determined by the Board within the maximum amount approved
by the shareholders from time to time and which currently stands at $250,000 per annum.
The Board undertakes an annual review of its performance against goals set at the start of the year. The
Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is
designed to attract high calibre of executives and to remunerate them for performance that results in long-
term growth in shareholder wealth.
All remuneration paid to directors and executives is valued at the cost to the Group and expensed.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 31
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Performance-based remuneration
The Group currently has performance-based remuneration component built into director and executive
remuneration packages.
The Group has established an Employee Securities Incentive Plan (“Plan”) that provides greater flexibility by
allowing for the issuance of performance securities upon a determination by the Board that an eligible
employee may participate in the Plan. Performance securities can include an option or performance share.
The Group received 99.8% “yes” votes on its remuneration report for the 30 June 2024 financial year.
The table below summarises the earnings of the Group and other factors. Shareholder wealth for the Group
is largely driven by exploration success, Resource growth and share price increase. Factors that are
considered to affect shareholder wealth for the 5 years to 30 June 2024 are shown below.
2024
2023
2022
2021
2020
Loss after income tax attributable to
shareholders ($)
(6,928,601)
(3,489,942)
(1,667,266)
(1,064,797)
21,556
Share price at year end ($)
0.013
0.014
0.028
0.055
0.0258
Basic earnings/(loss) per share
(cents)
(0.55)
(0.45)
(0.30)
(0.29)
0.01
The table below is a summary of the Company’s Resources.
Prospect
Resource
Tonnage
Copper
Lead
Zinc
Gold
Silver
Zinc Eq.
Class
(kt)
(%)
(%)
(%)
(g/t)
(g/t)
(%) *
Greater
Liontown
Indicated
(47%)
Inferred
(53%)
5,447
1.0
2.0
6.6
1.1
37
11.99
Plateau#
Inferred
961
-
-
-
1.7
10.7
Triumph
Inferred
1,808
-
-
-
2
-
Resource
8,216
Prospect
Contained
Copper (t)
Contained
Lead (t)
Contained
Zinc (t)
Contained
Gold (Koz)
Contained
Silver (Koz)
Greater
Liontown
52,954
110,062
357,487
190
6,513
Plateau#
-
-
-
50
329
Triumph
-
-
-
118
-
Resource
52,954
110,062
357,487
358
6,842
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 32
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key management personnel compensation
Details of the nature and amount of emoluments paid for each director and executive are set out below:
Primary
Benefits
Post
Employment
Share Based
Payments
TOTAL
Performance
Based
Salary
Super-
Shares/
& Fees
annuation
Options
$
$
$
$
%
Directors
A Pismiris - Non-Executive Chairman
2024
72,0001
-
-
72,000
-
2023
72,0001
-
29,042
101,042
29
D Keys – Managing Director
2024
242,000
26,620
-
268,620
-
2023
242,000
25,410
29,042
296,452
10
P Chapman – Non-Executive Director
2024
32,432
3,568
-
36,000
-
2023
32,579
3,421
29,042
65,042
45
L Davis – Non-Executive Director
2024
32,432
3,568
-
36,000
-
2023
32,579
3,421
29,042
65,042
45
A Torresan – Non-Executive Director
2024
36,000
-
-
36,000
-
2023
36,000
-
29,042
65,042
45
Total Remuneration:
2024
414,865
33,755
-
448,620
-
2023
415,158
32,252
145,210
592,620
25
Notes:
(1) Includes $36,000 (FY2023: $36,000) paid as fees for Group secretarial services.
There were no other related party transactions with key management personnel during the year ended 30
June 2024 (Note 17). As at 30 June 2024, $6,600 (30 June 2023: $6,600) was owed to Mr Pismiris for
accrued directors fees and secretarial services and $3,300 (30 June 2023: $3,300) was owed to Mr Torresan
for accrued directors fees.
Remuneration Options and Performance Rights
During the year ended 30 June 2024, no options were issued as part of director remuneration (30 June
2023: Nil).
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 33
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
During the year ended 30 June 2024, no performance rights were issued as part of director remuneration (30
June 2023: Nil). Refer to Note 14(d) for details of performance rights.
Shareholdings by Directors (and Associates)
2024
Balance
Received
Acquired
Options
Net Other
Balance
01/07/23
Remunerati
on
Exercised
Change
30/06/24
(No. of
Shares)
(No. of
Shares)
(No. of
Shares)
(No. of
Shares)
(No. of Shares)
(No. of Shares)
A Pismiris
16,062,500
-
5,000,000
-
-
21,062,500
D Keys
41,300,000
-
1,818,182
-
-
43,118,182
P Chapman
44,455,000
-
13,636,364
-
-
58,091,364
L Davis
39,840,000
-
5,151,515
-
-
44,991,515
A Torresan
69,000,000
-
16,666,667
-
-
85,666,667
Total
210,657,500
-
42,272,728
-
-
252,930,228
Options Holdings by Directors (and Associates)
2024
Balance
Granted as
No. of
No. of
Net
Balance
01/07/23
Remuneratio
n
Options
Options
Change
Other
30/06/24
(No.
Options)
(No. Options)
Acquired
Exercised
(No.
Options)
(No. Options)
A Pismiris
12,000,000
-
555,555
-
-
12,555,555
D Keys
13,000,000
-
606,060
-
-
13,606,060
P Chapman
10,600,000
-
1,212,121
-
-
11,812,121
L Davis
13,000,000
-
606,060
-
-
13,606,060
A Torresan
12,000,000
-
-
-
-
12,000,000
Total
60,600,000
-
2,979,796
-
-
63,579,796
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 34
Annual Report for the year ended 30 June 2024
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Options Holdings by Directors (and Associates) (continued)
Values of options over ordinary shares granted, exercised or lapsed for directors as part of compensation
during the year ended 30 June 2024 were nil.
Performance Rights Holdings by Directors (and Associates)
2024
Balance
Granted as
No. of
No. of
Net
Balance
01/07/23
Remuneratio
n
Right
Rights
Change
Other
30/06/24
(No. Rights)
(No. Rights)
Acquired
Exercised
(No. Rights)
(No. Rights)
A Pismiris
-
-
-
-
-
-
D Keys
5,000,000
-
-
-
(5,000,000)1.
-
P Chapman
2,000,000
-
-
-
(2,000,000) 1.
-
L Davis
1,500,000
-
-
-
(1,500,000) 1.
-
A Torresan
-
-
-
-
-
-
Total
8,500,000
-
-
-
(8,500,000)
-
1Lapsed as did not meet vesting conditions.
End of remuneration report (audited).
Signed in accordance with a resolution of the board of directors.
Dated at Perth this 4th day of September, 2024
Alec Pismiris
Director
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 35
Annual Report for the year ended 30 June 2024
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Other income
2
13,506
-
Corporate expenses
3
(1,128,533)
(1,192,506)
Change in fair value of investments through profit or loss
(23,144)
(16,626)
Rehabilitation expense
-
(1,198,000)
Share based payments
26
(52,079)
(145,208)
Exploration expensed
(41,445)
-
Impairment of exploration
7
(5,696,906)
(937,602)
Loss before income tax
(6,928,601)
(3,489,942)
Income tax benefit
4
-
-
Loss for the year
(6,928,601)
(3,489,942)
Other comprehensive income/(loss) for the year
-
-
Total comprehensive loss for the year
(6,928,601)
(3,489,942)
Basic loss per share (cents per share)
20
(0.55)
(0.45)
Diluted loss per share (cents per share)
20
(0.55)
(0.45)
The above consolidated statement of profit or loss and other comprehensive income
should be read in conjunction with the accompanying notes.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 36
Annual Report for the year ended 30 June 2024
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Current Assets
Cash and cash equivalents
5
3,393,840
3,329,590
Trade and other receivables
6
124,923
139,346
Prepayments
36,514
-
Total Current Assets
3,555,277
3,468,936
Non-Current Assets
Exploration and evaluation expenditure
7
13,284,428
12,808,321
Plant and equipment
8
129,767
251,972
Other financial assets
9
11,330
34,474
Security deposits
306,470
178,445
Total Non-Current Assets
13,731,995
13,273,212
Total Assets
17,287,272
16,742,148
Current Liabilities
Trade and other payables
10
846,949
323,035
Lease liability
11
86,458
99,508
Employee leave liabilities
12
88,382
55,692
Total Current Liabilities
1,021,789
478,235
Non-Current Liabilities
Lease liability
11
-
86,458
Provisions
13
1,555,000
1,555,000
Total Non-Current Liabilities
1,555,000
1,641,458
Total Liabilities
2,576,789
2,119,693
Net Assets
14,710,483
14,622,455
Equity
Issued capital
14
35,565,294
28,800,741
Reserves
15
4,764,264
4,512,188
Accumulated losses
(25,619,075)
(18,690,474)
Total Equity
14,710,483
14,622,455
The above consolidated statement of financial position
should be read in conjunction with the accompanying notes.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 37
Annual Report for the year ended 30 June 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
Issued
Capital
$
Share-
Based
Payments
Reserve
$
Accumulated
Losses
$
Total
Equity
$
Balance at 01/07/2022
22,497,970
4,157,108
(15,200,532)
11,454,546
Total comprehensive income for the year
Loss for the year
-
-
(3,489,942)
(3,489,942)
Total comprehensive loss for the year
-
-
(3,489,942)
(3,489,942)
Transactions with owners recorded
directly into equity
Shares to be issued
319,500
-
-
319,500
Share based payments
-
355,080
-
355,080
Issue of fully paid ordinary shares
6,591,500
-
-
6,591,500
Capital raising costs
(608,229)
-
-
(608,229)
Balance at 30/06/2023
28,800,741
4,512,188
(18,690,474)
14,622,455
Balance at 01/07/2023
28,800,741
4,512,188
(18,690,474)
14,622,455
Total comprehensive income for the year
Loss for the year
-
-
(6,928,601)
(6,928,601)
Total comprehensive loss for the year
-
-
(6,928,601)
(6,928,601)
Transactions with owners recorded
directly into equity
Share based payments
-
252,076
-
252,076
Issue of fully paid ordinary shares
7,439,000
-
-
7,439,000
Capital raising costs
(674,447)
-
-
(674,447)
Balance at 30/06/2024
35,565,294
4,764,264
(25,619,075)
14,710,483
The above consolidated statement of changes in equity
should be read in conjunction with the accompanying notes.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 38
Annual Report for the year ended 30 June 2024
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
Note
$
$
Cash Flows from Operating Activities
Payments to suppliers and employees
(726,922)
(1,227,490)
Interest received
13,506
-
Net Cash Used in Operating Activities
16(b)
(713,416)
(1,227,490)
Cash Flows from Investing Activities
Payments for exploration expenditure
(6,146,547)
(3,928,517)
Payments for acquisition of plant and equipment
-
(11,698)
Transfers to term deposits
(26,000)
-
Proceeds from exploration rebate grant
-
138,813
Net Cash Used in Investing Activities
(6,172,547)
(3,801,402)
Cash Flows from Financing Activities
Gross proceeds from share issues
7,439,000
6,591,501
Costs of share issues
(488,787)
(397,750)
Gross proceeds from shares to be issued
-
319,500
Repayment of finance lease
-
(8,506)
Net Cash Provided by Financing Activities
6,950,213
6,504,745
Net increase in cash and cash equivalents held
64,250
1,475,853
Cash and cash equivalents at the beginning of the financial year
3,329,590
1,853,737
Cash and cash equivalents at the end of the financial year
16(a)
3,393,840
3,329,590
The above consolidated statement of cash flows
should be read in conjunction with the accompanying notes.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 39
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES
Sunshine Metals Limited is a Company domiciled in Australia. The consolidated financial statements of the
Company as at and for the year ended 30 June 2024 comprise the Company and its subsidiaries (referred to
as the Group).
The significant policies, which have been adopted in the preparation of this financial report, have been
applied consistently unless otherwise stated and are as follows:
(a)
Basis of Preparation
The financial report is a general purpose financial report which has been prepared in accordance with
Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Act 2001.
The financial report was authorised for issue by the Board on 4th September 2024.
The financial report has been prepared on an accruals basis and is based on historical costs except for certain
assets which are carried at fair value. Cost is based on the fair values of the consideration given in exchange
for assets.
For the purpose of preparing the consolidated financial statements, the Company is a for-profit entity.
(b)
Statement of Compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial
statements and notes comply with International Financial Reporting Standards (IFRS).
(c)
New and Revised Accounting Standards and Interpretations adopted by the Group
The accounting policies have been consistently applied by the Group and are consistent with those in the
June 2024 annual financial report except for the impact (if any) of new and revised standards and
interpretations outlined below.
Standards and Interpretations applicable to 30 June 2024
The Group adopted AASB 2021-2 which amends AASB 7, AASB 101 and AASB 134 to require disclosure of
“material accounting policy information” rather than significant accounting policies in an entity’s financial
statements. It also updated AASB Practice Statement 2 to provide guidance on the application of the concept
of materiality to accounting policy disclosure.
The adoption of the amendment did not have a material impact on the financial statements. The Directors
have reviewed all other Standards and Interpretations on issue not yet adopted for the period ended 30 June
2024. As a result of this review, the Directors have determined that there is no material impact of the
Standards Interpretations on issue not yet adopted by the Group and, therefore, no material change is
necessary to Group accounting policies.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 40
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(d)
Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent,
Sunshine Metals Limited and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent
controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity
and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is
provided in Note 19.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests”. The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation
at either fair value or at the non-controlling interests' proportionate share of the subsidiary's net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of profit or loss and other comprehensive income.
(e)
Exploration and Evaluation Expenditure
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through
the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which
the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the
life of the area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are
included in the costs of that stage. Site restoration costs include the dismantling and removal of mining
plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with
clauses of the mining permits. Such costs have been determined using estimates of future costs, current
legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 41
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(f)
Share Based Payments
The fair value at grant date is independently determined using a Black-Scholes option pricing model that
takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact
of dilution, the non-tradable nature of the option, the share price at grant date and expected price volatility of
the underlying share, the expected dividend yield and risk free interest rate for the term of the option.
The fair value of the options granted excluded the impact of any non-market vesting condition (for example,
exploration related targets). Non-market vesting conditions are included in assumption about the number of
options that are expected to become exercisable. The employee benefit expense recognised each period
takes into account the most recent estimate.
Upon the exercise of options, the balance of the share-based payments reserve relating to these options is
transferred to share capital.
The market value of shares issued to employees for no cash consideration under the employee share
scheme is recognised as an employee benefits expense with a corresponding increase in equity when the
employees become entitled to the shares.
(g) Investments and other financial assets
Financial assets are recognised when the Group becomes a party to the contractual provisions of the
financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from
the financial asset expire, or when the financial asset and substantially all the risks and rewards are
transferred.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured
at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial
assets, other than those designated and effective as hedging instruments, are classified into the following
categories:
-
amortised cost;
-
fair value through profit or loss (FVTPL);
-
equity instruments at fair value through other comprehensive income (FVOCI); and
-
debt instruments at fair value through other comprehensive income (FVOCI).
All income and expenses relating to financial assets that are recognised in profit or loss are presented within
finance costs, finance income or other financial items, except for impairment of trade receivables which is
presented within other expenses.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 42
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(g) Investments and other financial assets (continued)
The classification is determined by both:
-
the entity’s business model for managing the financial asset; and
-
the contractual cash flow characteristics of the financial asset.
Subsequent measurement of financial assets
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect
and sell’ are categorised at fair value through profit or loss. Further, irrespective of business model financial
assets whose contractual cash flows are not solely payments of principal and interest are accounted for at
FVTPL. All derivative financial instruments fall into this category, except for those designated and effective as
hedging instruments, for which the hedge accounting requirements apply.
The category also contains an equity investment. The Group accounts for the investment at FVTPL and did
not make the irrevocable election to account for the investment in unlisted equity securities at fair value
through other comprehensive income (FVOCI). The fair value was determined in line with the requirements
of AASB 9, which does not allow for measurement at cost.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair
values of financial assets in this category are determined by reference to active market transactions or using
a valuation technique where no active market exists.
Impairment of financial assets
AASB 9’s impairment requirements use more forward-looking information to recognise expected credit
losses – the ‘expected credit loss (ECL) model’. Instruments within the scope of these requirements included
loans and other debt-type financial assets measured at amortised cost and FVOCI, trade receivables,
contract assets recognised and measured under AASB 15 and loan commitments and some financial
guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.
The Group considers a broad range of information when assessing credit risk and measuring expected credit
losses, including past events, current conditions, reasonable and supportable forecasts that affect the
expected collectability of the future cash flows of the instrument.
12-month expected credit losses are recognised for financial instruments that have not deteriorated
significantly in credit quality since initial recognition or that have low credit risk while ‘lifetime expected credit
losses’ are recognised for financial instruments that have deteriorated significantly in credit quality since
initial recognition and whose credit risk is not low.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses
over the expected life of the financial instrument.
The Group makes use of a simplified approach in accounting for trade and other receivables and records the
loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cashflows
considering the potential default at any point during the life of the financial instrument. In calculating, the
Group uses its historic experience, external indicators and forward-looking information to calculate expected
credit losses.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 43
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(h)
Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring
basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in
an orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at
the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is
used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in
an active market are determined using one or more valuation techniques. These valuation techniques
maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability
(ie the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such
a market, the most advantageous market available to the entity at the end of the reporting period (ie the
market that maximises the receipts from the sale of the asset or minimises the payments made to transfer
the liability, after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to
use the asset in its highest and best use or to sell it to another market participant that would use the asset in
its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer
of such financial instruments, by reference to observable market information where such instruments are
held as assets. Where this information is not available, other valuation techniques are adopted and, where
significant, are detailed in the respective note to the financial statements.
Valuation Techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability. The Group selects a valuation
technique that is appropriate in the circumstances and for which sufficient data is available to measure fair
value. The availability of sufficient and relevant data primarily depends on the specific characteristics of the
asset or liability being measured. The valuation techniques selected by the Group are consistent with one or
more of the following valuation approaches:
•
Market approach: valuation techniques that use prices and other relevant information generated by market
transactions for identical or similar assets or liabilities;
•
Income approach: valuation techniques that convert estimated future cash flows or income and expenses
into a single discounted present value; and
•
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 44
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(h)
Fair Value of Assets and Liabilities (continued)
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use
when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique,
the Group gives priority to those techniques that maximise the use of observable inputs and minimise the
use of unobservable inputs. Inputs that are developed using market data (such as publicly available
information on actual transactions) and reflect the assumptions that buyers and sellers would generally use
when pricing the asset or liability are considered observable, whereas inputs for which market data is not
available and therefore are developed using the best information available about such assumptions are
considered unobservable.
Fair Value Hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an input
that is significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that
the entity can access at the measurement date. Measurements based on inputs other than quoted prices
included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly or indirectly
Level 3
Measurements based on unobservable inputs for the asset or liability.
If all significant inputs required to measure fair value are observable, the asset or liability is included in Level
2. If one or more significant inputs are not based on observable market data, the asset or liability is included
in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
(i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
(ii) if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 45
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(i)
Leases
At inception of a contract, the Company assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease liability is recognised by the Company where the
Company is a lessee. However, all contracts that are classified as short-term leases (i.e. a lease with a
remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating
expense on a straight-line basis over the term of the lease.
Initially, the lease liability is measured at the present value of the lease payments still to be paid at
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Company uses the incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
i.
fixed lease payments less any lease incentives;
ii.
variable lease payments that depend on an index or rate, initially measured using the index or rate at
the commencement date;
iii.
the amount expected to be payable by the lessee under residual value guarantees;
iv.
the exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
v.
payments of penalties for terminating the lease if the lease term reflects the exercise of an option to
terminate the lease.
The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned
above, any lease payments made at or before the commencement date, as well as any initial direct costs.
The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is
the shortest. Where a lease transfers ownership of the underlying asset, or the cost of the right-of-use asset
reflects that the Company anticipates to exercise a purchase option, the specific asset is depreciated over
the useful life of the underlying asset.
(j)
Adoption of new and revised standards
Standards and Interpretations issued not yet adopted
The Directors have also reviewed all Standards and Interpretations that are relevant to the Group and have
recently been revised or amended but are not mandatory for the year ended 30 June 2024. As a result of this
review the Directors have determined that there is no material impact of these Standards and Interpretations
and, therefore, no change is necessary to Group accounting policies.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 46
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(k) Critical 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 resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next
financial year are discussed below.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by using either the
Binomial or 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 25 for further information.
Income tax
The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during
the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises
liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the
final tax outcome of these matters is different from the carrying amounts, such differences will impact the
current and deferred tax provisions in the period in which such determination is made.
Incremental borrowing rate
Where the interest rate implicit in a lease cannot be readily determined, an incremental borrowing rate is
estimated to discount future lease payments to measure the present value of the lease liability at the lease
commencement date. Such a rate is based on what the Group estimates it would have to pay a third party to
borrow the funds necessary to obtain an asset of a similar value to the right-of-use asset, with similar terms,
security and economic environment. Refer to notes 8 and 11 for ROU assets and lease liabilities recognised
for the Group’s leasing arrangement.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored
or mined. The Group's mining and exploration activities are subject to various laws and regulations
governing the protection of the environment. The Group recognises management's best estimate for assets
retirement obligations and site rehabilitations in the period in which they are incurred. Actual costs incurred in
the future periods could differ materially from the estimates. Additionally, future changes to environmental
laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this
provision.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 47
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued)
(k) Critical Accounting Estimates and Judgments
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Group will commence
commercial production in the future, from which time the costs will be amortised in proportion to the depletion
of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes
determining expenditures directly related to these activities and allocating overheads between those that are
expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either
through successful development or sale of the relevant mining interest. Factors that could impact the future
commercial production at the mine include the level of reserves and resources, future technology changes
which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent
that capitalised costs are determined not to be recoverable in the future, they will be written off in the period
in which this determination is made.
NOTE 2: OTHER INCOME
Consolidated
2024
2023
$
$
Interest earned
13,506
-
Total
13,506
-
NOTE 3: EXPENSES AND GAINS/(LOSSES)
Significant Items
Profit/(Loss) before income tax includes the following expenses whose disclosure is relevant in explaining the financial
performance of the Group:
Included in corporate expenses
Accounting and administration fees
118,200
97,650
Consulting and directors fees
311,000
263,861
Share register maintenance and listing fees
77,346
84,859
Legal fees
31,329
103,348
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 48
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 4: INCOME TAX
The prima facie tax on loss before income tax
Consolidated
is reconciled to the income tax as follows:
2024
2023
$
$
Loss before income tax
(6,928,601)
(3,489,942)
Income tax calculated at 30% (2023: 30%)
(2,078,580)
(1,046,983)
Add back:
Provisions
9,867
422,289
Capital raising costs
(109,821)
(69,354)
Fair value loss on investment
6,943
4,988
Share-based payments
15,624
43,562
Capitalised exploration immediately deductible
(1,851,904)
(648,329)
Capitalised exploration written off
1,709,071
281,281
Exploration expenditure expensed
12,434
-
Other
-
-
Future income tax benefits not brought to account
2,286,366
1,012,546
Income tax expense/(benefit)
-
-
Deferred tax assets:
Capital raising costs
1,190,379
760,355
Provisions
500,515
490,648
Carried forward tax losses (including foreign tax losses)
6,852,215
4,565,849
8,543,109
5,816,852
Deferred tax liabilities:
Capitalised exploration costs
4,529,594
2,677,691
4,529,584
2,677,691
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax
assets have not been recognised in respect of these items because it is not probable that future taxable
profit will be available against which the Group can utilise the benefits thereof.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 49
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
2023
$
$
NOTE 5: CASH AND CASH EQUIVALENTS
Cash at bank
3,393,840
3,329,590
3,393,840
3,329,590
NOTE 6: TRADE AND OTHER RECEIVABLES
Current
Goods and services tax
123,993
138,416
Other
930
930
124,923
139,346
NOTE 7: EXPLORATION AND EVALUATION EXPENDITURE
Balance at the beginning of the period
12,808,321
9,943,600
Greater Liontown acquisition
2,846,234
375,000
Expenditure incurred during the period
3,326,779
3,427,323
Impairment of exploration assets(i)
(5,696,906)(ii)
(937,602)(i)
Balance at the end of the period
13,410,928
12,808,321
(i) The Company intends to divest of the Hodgkinson and Investigator projects in due course as they are
non-core to the future strategy and direction; and have therefore impaired the carrying value of $937,602
at 30 June 2023.
(ii) The Company entered into an agreement on 26 August 2024 to divest of the Triumph project for $2
million and has written-down the carrying value to this amount.
The above amounts represent costs of areas of interest carried forward as an asset in accordance with the
accounting policy set out in Note 1(f). The ultimate recoupment of deferred exploration and evaluation
expenditure in respect of an area of interest is dependent upon the discovery of commercially viable
reserves and the successful development and exploitation of the respective areas or alternatively sale of
the underlying areas of interest for at least their carrying value.
The terms of the Greater Liontown acquisition are set out in Note 27.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 50
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
$
2023
$
NOTE 8: PLANT AND EQUIPMENT
At cost
408,697
408,697
Accumulated depreciation
(278,930)
(156,725)
129,767
251,972
Plant and equipment
Balance at the beginning of the period
71,309
81,850
Additions/(Disposals)
-
11,698
Depreciation expense
(23,661)
(22,239)
Balance at the end of the period
47,648
71,309
Right of use asset
Balance at the beginning of the period
180,663
258,707
Additions/(Disposals)
-
14,470
Depreciation expense
(98,544)
(92,514)
Balance at the end of the period
82,119
180,663
NOTE 9: OTHER FINANCIAL ASSETS
Non Current
Unlisted investments at fair value (note 22):
Shares in other entities(i) (fair value through profit or loss)
11,330
34,474
11,330
34,474
(i) As at 30 June 2024, the Group held 755,321 shares in Pearl Gull Limited.
NOTE 10: TRADE AND OTHER PAYABLES
Trade payables and accrued expenses
846,949
323,035
846,949
323,035
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 51
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
$
2023
$
NOTE 11: LEASE LIABILITY
Office operating lease
Current
86,458
99,508
Non-Current
-
86,458
86,458
185,966
The office lease began in May 2022 and is for a period of three years.
NOTE 12: EMPLOYEE LEAVE LIABILITIES
Annual leave entitlements
88,382
55,692
88,382
55,692
NOTE 13: PROVISIONS
Provision for rehabilitation
1,555,000
1,555,000
1,555,000
1,555,000
Provision for rehabilitation
The provision for the estimated costs to rehabilitate historical mining areas has been on a closure cost
estimate methodology prepared by external mine closure consultants. The responsibility for and the amount
of the obligation are subject to ongoing review and do not take into account commercial factors that could
significantly reduce the actual work required and the cost of doing so. These factors are discussed in detail
below.
In 2002, the Company acquired the mineral assets of Nugold Hill Mines Limited (“Nugold”) pursuant to an
acquisition agreement. The acquisition included the Xanadu Gold Project which comprised three mining
leases and an exploration license (“Xanadu”). The Xanadu tenements were relinquished by the Company in
2009 and were subsequently acquired and explored by third parties thereafter. As a consequence of mining
operations undertaken by Nugold prior to the Company’s acquisition of Xanadu, there exists an obligation to
rehabilitate the site of the historical mining activities. The Company has a security bond of $114,000 in place
with the Department of Mines, Industry, Regulation and Safety (“DMIRS”). Mine closure consultants have
provided a report to the Company which includes a costed plan to rehabilitate Xanadu as required by
DMIRS. The costed plan forms the basis of the provision for rehabilitation.
The Company reserves its rights in relation to the rehabilitation obligation, if any. It should be noted that:
-
the Company is undertaking a legal review to determine whether rehabilitation obligations were part
of the Nugold acquisition;
-
the Company is undertaking a review to determine what rehabilitation obligations arose from third party
activities in the period from relinquishment in 2009 to 30 June 2024;
-
the Company has not accepted the scope of the DMIRS rehabilitation obligations;
-
Xanadu is subject to active exploration by third parties which may reduce the need for rehabilitation
due to potential future mining activities;
-
the rehabilitation obligation as estimated by using the DMIRS Rehabilitation Liability Estimate
Calculator in the 2022 financial year was $357,000; and
-
the costed plan does not consider the above factors and is subject to change.
Notwithstanding the above, the directors have taken a conservative approach and made provision for the
closure cost estimate prepared by the mine closure consultants.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 52
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
2024
$
2023
$
NOTE 14: ISSUED CAPITAL
(a)
Issued Capital
1,587,644,808 Ordinary shares fully paid (2023: 55B959,156,064)
35,565,294
28,800,741
(b) Movements in ordinary share capital of the Group:
Date
Details
No. of Shares
$
01/07/2022
Opening balance
619,722,730
22,497,970
22/08/2022
Placement
140,200,000
3,505,000
02/12/2022
Director placement
9,800,000
245,000
15/05/2023
Placement – Tranche 1
189,433,334
2,841,500
Placement – Tranche 2 Shares to be
issued
-
319,500
Less: capital raising costs
-
(608,229)
30/06/2023
Closing balance
959,156,064
28,800,741
01/07/2023
Opening balance
959,156,064
28,800,741
12/07/2023
Placement – Tranche 2 (FY2023)
50,566,666
439,000
27/09/2023
Placement
214,285,714
3,000,000
02/04/2024
Placement – Tranche 1
306,002,111
3,366,023
15/05/2024
Placement – Tranche 2
57,634,253
633,977
Less: capital raising costs
-
(674,447)
1,587,644,808
35,565,294
(c) Deferred Shares
As part of the consideration for the acquisition of Sunshine (Triumph) Pty Ltd (formerly XXXX Gold Pty Ltd),
the Company issued:
(a) 50,000,000 Deferred Shares on the Company announcing to ASX by 11 December 2023 that it has an
Inferred Resource of 100,000 ounces of gold or gold equivalent at a minimum 1 gram per tonne cut
off on tenements owned or being acquired or applied for by Sunshine (Triumph) Pty Ltd (formerly
XXXX Gold Pty Ltd) at the time of completion; and
(b) further 50,000,000 Deferred Shares on the Group announcing to ASX by 11 December 2023 that it
has an Inferred Resource of 200,000 ounces of gold or gold equivalent at a minimum 1 gram per tonne
cut off on tenements owned or being acquired or applied for by Sunshine (Triumph) Pty Ltd (formerly
XXXX Gold Pty Ltd) at the time of completion.
On 31 March 2022, the Company announced an initial Resource at the 100% owned Triumph Gold Project
totalling 1.8 million tonnes at 2.0 g/t for 118 koz of contained gold. As a result, 50,000,000 Deferred Shares
vested and were converted into fully paid ordinary shares. The value of deferred shares was recognized in
reserves.
On 11 December 2023, the 50,000,000 Deferred Shares lapsed and expired as the relevant performance
hurdle has not been satisfied in order for the Deferred Shares to vest and convert into ordinary shares.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 53
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 14: ISSUED CAPITAL (continued)
(d) Performance Rights
During the 2021 financial year, 17,000,000 Performance Rights were issued to directors in the following
tranches:
(a) Tranche 1 – 50% of the rights will vest on the Company announcing to ASX by 30 September 2023
that it has a Resource of 100,000 ounces of gold on tenements owned or being acquired or applied
for by Sunshine (Triumph) Pty Ltd (formerly XXXX Gold Pty Ltd) at the time of completion; and
(b) Tranche 2 – 50% of the rights will vest on the Company announcing to ASX by 30 September 2023
that it has Resource of 200,000 ounces of gold on tenements owned or being acquired or applied for
by Sunshine (Triumph) Pty Ltd (formerly XXXX Gold Pty Ltd) at the time of completion.
On 31 March 2022, the Company announced an initial Resource at the 100% owned Triumph Gold Project
totalling 1.8 million tonnes at 2.03 g/t for 118 koz of contained gold. As a result, 8,500,000 Performance
Rights vested and were converted into fully paid ordinary shares. During the 2022 financial year, the
Company recognized a share-based payment expense of $170,000 relating to the Tranche 1 Performance
Rights that vested which has been recorded in the share-based payment reserve.
On 30 September 2023, the 8,500,000 Tranche 2 Performance Rights lapsed and expired as the relevant
performance hurdle has not been satisfied in order for the Performance Rights to vest and convert into
ordinary shares.
(e) Capital Risk Management
When managing capital, management’s objective is to ensure the Group continues as a going concern as
well as to maintain 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 Group.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares, enter into joint ventures or sell assets.
The Group does not have a defined share buy-back plan.
No dividends were paid in 2024 (2023: Nil).
There is no current intention to incur further debt funding on behalf of the Group as on-going expenditure will
be funded via cash reserves or equity.
The Group is not subject to any externally imposed capital requirements.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 54
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 15: RESERVES
Consolidated
2024
$
2023
$
(a)
Composition
Share-based payments reserve
4,764,264
4,512,188
4,764,264
4,512,188
(b) Movements in options on issue during the last two years were as follows:
Date
Details
No. of
Unlisted Options
Exercise
Price
Expiry Date
01/07/2022
Opening balance
68,300,000
23/06/2023*
Lead Manager options
20,000,000
0.0225
07/07/2027
Director options
20,000,000
0.0225
30/06/2027
30/06/2023
Closing balance
108,300,000
01/07/2024
Opening balance
108,300,000
2/08/2023
Employee options
4,933,334
$0.0225
30/06/2027
21/11/2023
Placement options
71,428,529
$0.0300
30/09/2025
28/11/2023
Lead Manager options
15,000,000
$0.0210
27/11/2026
20/02/2024
Employee options
800,000
$0.0225
30/06/2027
15/05/2024
Placement options
121,212,082
$0.03
30/09/2025
15/05/2024
Lead Manager options
30,000,000
$0.0300
30/09/2025
30/06/2024
Closing balance
351,673,945
* These options were approved by shareholders on 23 June 2023 and issued on 7 July 2023
Refer to Note 25 for details of options issued during the year ended 30 June 2024.
(c)
Nature and Purpose of Reserves
Share-Based Payments Reserve
The share-based payments reserve is the value of equity benefits provided to directors, employees and
consultants by the Group as part of their remuneration. In addition, where the fair value of goods or services
cannot be readily determined, the fair value of equity instruments issued in consideration for the good or
service acquired may be recognized within the share-based payments reserve.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 55
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Consolidated
NOTE 16: NOTES TO THE STATEMENT OF CASH FLOWS
2024
$
2023
$
a) Cash and cash equivalents at the end of the financial year as shown in the
Statement of Cash Flows is reconciled to items in the Statement of Financial
Position as follows:
Cash and cash equivalents (Note 5)
3,393,840
3,329,590
b) Reconciliation of net cash and cash equivalents used in operating activities
to loss for the year:
Loss for the year
(6,628,601)
(3,489,942)
Exploration expensed
41,445
-
Depreciation expense
122,205
114,753
Impairment of investments
23,144
16,626
Impairment of exploration
5,696,906
937,602
Rehabilitation expense
-
1,198,000
Share based payment expense
52,079
145,208
Movements in assets and liabilities:
(Increase)/Decrease in trade and other receivables
14,423
(70,127)
(Increase)/Decrease in other assets
(36,514)
-
Increase/(Decrease) in lease liabilities
(99,508)
(73,914)
Increase/(Decrease) in trade and other payables
401,005
(5,696)
Net cash used in operating activities
(713,416)
96B(1,227,490)
c)
Non-cash investing and financing activities
The Company granted options to employees and the lead manager as part of their remuneration during the
year ended 30 June 2024. Refer notes 25.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 56
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 17: KEY MANAGEMENT PERSONNEL
This note is to be read in conjunction with the Remuneration Report which is included in the Directors’
Report.
(a) Compensation of Key Management Personnel
Consolidated
2024
$
2023
$
Compensation by category:
Short-term
414,865
415,158
Post-employment
33,755
32,252
Termination benefit
-
-
Share based payment
-
145,210
448,620
592,620
(b) Transactions with Key Management Personnel
There were no transactions with key management personnel during the year ended 30 June 2024. As at 30
June 2024, $6,600 (30 June 2023: $6,600) was owed to Mr Pismiris for accrued directors fees and secretarial
services and $3,300 (30 June 2023: $3,300) was owed to Mr Torresan for accrued directors fees.
Consolidated
NOTE 18: REMUNERATION OF AUDITORS
2024
$
2023
$
Audit services – HLB Mann Judd
38,614
39,154
38,614
39,154
NOTE 19: INTEREST IN SUBSIDIARIES
(a)
Information about Principal Subsidiaries
The consolidated financial statements include the financial statements of Sunshine Metals Limited and the
subsidiaries listed in the following table:
Equity Interest
Country of
2024
2023
Incorporation
%
%
Sunshine (Triumph) Pty Ltd
AUS
100
100
Sunshine (Ravenswood) Pty Ltd
AUS
100
100
Sunrise Exploration Pty Ltd
AUS
100
100
Sunshine Minerals Pty Ltd
AUS
100
100
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 57
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 20: LOSS PER SHARE
The following reflects the income and data used in the calculations of basic and diluted loss per share:
Consolidated
2024
2023
$
$
Loss used in calculating basic and diluted loss per share
(6,928,601)
(3,489,942)
Number of
Shares
Number of
Shares
Weighted average number of ordinary shares used in calculating:
Basic loss per share
1,254,420,707
770,007,022
Diluted loss per share
1,254,420,707
770,007,022
NOTE 21: SEGMENT INFORMATION
Business Segments
The directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that
are reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded that
at this time there are no separate identifiable business segments.
The operations and assets of Sunshine Metals Limited and its controlled entities are employed in exploration
activities relating to minerals in Australia.
NOTE 22: RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and short-term deposits, short-term loans and
investments in unlisted entities.
The main purpose of these financial instruments is to finance the Group’s operations. The Group has various
other financial assets and liabilities such as other receivables and trade payables, which arise directly from
its operations. It is, and has been throughout the entire period under review, the Group’s policy that trading
in financial instruments may be undertaken.
The main risks arising from the Group’s financial instruments is cash flow interest rate risk, foreign exchange
risk and market price risk. Other minor risks are either summarised below or disclosed at Note 14 in the
case of capital risk management. The Board reviews and agrees policies for managing each of these risks.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 58
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 22: RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Cash Flow Interest Rate Risk
The Group’s exposure to the risks of changes in market interest rates relates primarily to the Group’s short-
term deposits with a floating interest rate. These financial assets with variable rates expose the Group to
cash flow interest rate risk. All other financial assets and liabilities in the form of receivables and payables
are non-interest bearing. The Group does not engage in any hedging or derivative transactions to manage
interest rate risk.
The Group has not entered into any hedging activities to cover interest rate risk. In regard to its interest rate
risk, the Group does not have a formal policy in place to mitigate such risks.
The following tables set out the carrying amount by maturity of the Group’s exposure to interest rate risk and
the effective weighted average interest rate for each class of these financial instruments. There were no fixed
interest rate financial assets held by the Group (2023: nil).
2024
Non
Interest
Bearing
$
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Total
$
Weighted
Average
Effective
Interest
Rate %
Financial Assets
- Cash and cash
equivalents
2,793,840
-
600,000
3,393,840
0.4
- Deposits held
-
306,470
-
306,470
-
- Other receivables
701
-
-
701
-
- Unlisted investments
11,330
-
-
11,330
-
Total Financial Assets
2,805,871
306,470
600,000
3,712,341
Financial Liabilities
- Trade creditors
846,949
-
-
846,949
-
- Lease liability
-
86,458
86,458
6
Total Financial Liabilities
846,949
-
86,458
933,407
Net Financial Assets /
(Liabilities)
1,958,922
306,470
513,542
2,778,934
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 59
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 22: RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Cash Flow Interest Rate Risk
2023
Non
Interest
Bearing
$
Floating
Interest
Rate
$
Fixed
Interest
Rate
$
Total
$
Weighted
Average
Effective
Interest
Rate %
Financial Assets
- Cash and cash
equivalents
3,329,590
-
-
3,329,590
-
- Deposits held
-
178,445
-
178,445
-
- Other receivables
701
-
-
701
-
- Unlisted investments
34,474
-
-
34,474
-
Total Financial Assets
3,364,765
178,445
-
3,543,210
Financial Liabilities
- Trade creditors
323,035
-
-
323,035
-
- Lease liability
-
-
185,966
185,966
6
Total Financial Liabilities
323,035
-
185,966
509,001
Net Financial Assets /
(Liabilities)
3,041,730
178,445
(185,966)
3,034,209
Interest Rate Sensitivity
The Group’s exposure to interest rate risk at balance date is immaterial.
Liquidity Risk
The Group manages liquidity risk by maintaining sufficient cash reserves and marketable securities and
through the continuous monitoring of budgeted and actual cash flows.
Consolidated
2024
$
2023
$
Contracted maturities of undiscounted liabilities at 30 June
Payables
- less than 30 days
846,949
323,035
- less than 12 months
-
-
Lease liability
- less than 12 months
86,458
107,422
- between 1 to 2 years
-
89,510
- between 2 to 5 years
-
-
933,407
519,967
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 60
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Market Price Risk
The Group is exposed to equity price risk which arises from equity securities at fair value through profit or
loss (FVTPL).
The Group is exposed to market price risk arising from investments in other companies carried at fair value.
At 30 June 2024, if the fair value of investments in other companies had changed by 10% during the entire
year with all other variables held constant, profit/(loss) for the year and equity would have been $1,133
(2023: $3,447) lower/higher. The Group holds shares in Pearl Gull Limited which is listed and held at fair
value.
Net Fair Values
For assets and other liabilities the net fair value approximates their carrying value. The Group has financial
assets and liabilities that are classified as level 3 under the fair value hierarchy and has no financial assets or
liabilities where the carrying amount exceeds net fair values at balance date.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed
in the statement of financial position and in the notes to and forming part of the financial statements.
Financial Instruments
The following table presents the Group’s assets and liabilities measured and recognised at fair value:
30 June 2024
Level 1
Level 2
Level 3
Total
$
$
$
$
Equity investments at FVTPL
11,330
-
-
11,330
30 June 2023
Level 1
Level 2
Level 3
Total
Asset
$
$
$
$
Equity investments at FVTPL
-
-
34,474
34,474
Valuation techniques
The methods and valuation techniques used for the purpose of measuring fair value are unchanged
compared to the previous reporting period.
Fair Value Hierarchy
Level 1
Fair value through FVTPL
Fair value is based on quoted prices (unadjusted) in active markets for identical asset or liability that the
entity can access at the measurement date.
Level 3
Fair value through FVTPL
Fair value is based on unobservable inputs for the asset or liability.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 61
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 23: EVENTS SUBSEQUENT TO REPORTING PERIOD
On 26 August 2024, the Company entered into a binding sale and purchase agreement with Dart Mining NL
(“Dart”), to divest the Triumph Gold Project (“Triumph”) for a total consideration of $2 million, comprised of $1
million in cash and $1 million in Dart fully paid ordinary shares, subject to completion.
No other matters or circumstances have arisen subsequent to the balance date which would significantly
affect the operations of the Company, its operating results or its state of affair in the subsequent financial
years.
NOTE 24: CONTINGENT LIABILITIES
The Group has no known material contingent liabilities at the end of the financial year.
NOTE 25: SHARE BASED PAYMENTS
The following share-based payment transactions occurred or were recognised during the year:
•
4,933,334 options exercisable at $0.0225 expiring 30 June 2027 were issued to employees. These
options were valued at $48,661 and were fully expensed.
•
15,000,000 options exercisable at $0.021 expiring 27 November 2026 were issued to the Lead
Manager in relation to the September 2023 placement. These options were valued at $115,354 and
recognised as a cost of capital raising.
•
800,000 options exercisable at $0.0225 expiring 30 June 2027 were issued to employees. These
options were valued at $3,418 and were fully expensed.
•
30,000,000 options exercisable at $0.03 expiring 30 September 2025 were issued to the Lead
Manager in relation to the May 2024 placement. These options were valued at $84,643 and recognized
as a cost of capital raising.
All share options issued during the year vested immediately. The total amount of $52,079 (2023: $145,208)
was recognised as a share-based payment expense, $199,997 (2023: $209,872) was recognised as a
capital raising cost.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 62
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 25: SHARE BASED PAYMENTS (continued)
Fair values of share options issued are determined using the Black-Scholes model based on information
available as at the measurement date, considering the exercise price, term of option, the share price at grant
date, expected price volatility of the underling share, expected yield and the risk-free interest rate for the term
of the option. Parameters for all share options on issued during period were:
Measurement date
31/7/2023
21/9/2023
20/2/2024
2/4/2024
Issue date
2/8/2023
27/9/2023
20/2/2024
15/5/2024
Expiry date
30/6/2027
27/11/2026
30/6/2027
30/9/2025
Dividend yield
Nil
Nil
Nil
Nil
Expected volatility
78.5%
78.5%
78.5%
78.5%
Risk-free interest rate
3.98%
3.91%
3.78%
3.72%
Expected life of options (years)
3.9 years
3 years
3.4 years
1.5 years
Underlying share price
$0.018
$0.016
$0.011
$0.015
Option exercise price
$0.0225
$0.021
$0.0225
$0.03
Value of option
$0.00986
$0.00769
$0.00427
$0.00282
Number of options issued
4,933,334
15,000,000
800,000
30,000,000
Value of options
$48,661
$115,354
$3,418
$84,643
Amount expensed during the year
$48,661
-
$3,418
-
Amount recognised in equity during the year
-
$115,354
-
$84,643
The number and weighted average exercise prices of share options are as follows:
Weighted average
exercise price
Number of
Options
Weighted average
exercise price
Number of
Options
2024
2024
2023
2023
Outstanding at 1 July
$0.0274
108,300,000
$0.03
68,300,000
Forfeited during the year
-
-
-
-
Exercised during the year
-
-
-
-
Expired during the year
-
-
-
-
Granted during the year
$0.0265
50,733,334
$0.0225
40,000,000
Outstanding at 30 June
$0.0270
159,033,334
$0.0274
108,300,000
Exercisable at 30 June
$0.0270
159,033,334
$0.03
68,300,000
The weighted average remaining contractual life for options outstanding at the end of the year is 1.5 years.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 63
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 26: PARENT ENTITY DISCLOSURES
The accounting policies of the Parent Entity are consistent with those of the Group as disclosed in Note 1, except for
Investment in Subsidiaries, which are accounted for at cost less impairment.
(a) Financial Position
2024
2023
$
$
Current Assets
3,535,274
3,429,816
Total Assets
16,376,372
15,080,912
Current Liabilities
110,889
101,457
Total Liabilities
1,665,889
458,457
Equity
Issued capital
35,565,294
28,800,741
Reserves
4,764,264
4,512,188
Accumulated losses
(25,492,575)
(18,690,474)
Total Equity
14,710,483
14,622,455
(b)
Financial Performance
Profit/(Loss) for the year
(6,928,601)
(5,054,886)
Other comprehensive income
-
-
Total Comprehensive Profit/(Loss)
(6,928,601)
(5,054,886)
(c) Guarantees
The parent entity has not entered into any guarantees, in relation to the debts of subsidiaries.
(d) Contingent liabilities
The parent entity has no known material contingent liabilities at the end of the financial year.
(e) Commitments for expenditure
The parent entity has not entered into any commitments for expenditure as at the end of the financial year.
(f) Recoverability of non-current assets
The recoverability of non-current assets is dependent upon the discovery of commercially viable reserves
and successful development and exploitation of the respective areas or alternatively sale of the underlying
areas of interest (exploration and evaluation).
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 64
Annual Report for the year ended 30 June 2024
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
NOTE 27: GREATER LIONTOWN ASSET ACQUISITION
On 6 September 2023, the Group completed the Greater Liontown transaction which related to the
acquisition of 16 tenements in two separate transactions with unrelated, third parties adjacent to the
Ravenswood West project. Consideration payable for the acquisition is set out below.
Cromarty
Hebrides
Cash Payments
Non-Refundable Deposit paid
$400,000
$25,000
Cash Paid on Completion
$2,100,000
$225,000
Deferred Cash – 31 October 2023
$500,000
-
Total Cash Payments
$3,000,000
$250,000
Milestone Payments
- $1m of Production Revenue
$1,000,000
-
- $1m of Production Revenue + 1 Year
$1,000,000
-
Total Milestone Payments
$2,000,000
-
Total Consideration
$5,000,000
$250,000
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 65
Annual Report for the year ended 30 June 2024
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors:
a.
the accompanying financial statements, notes and additional disclosures are in accordance
with the Corporations Act 2001 including:
i.
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of
its performance for the year then ended; and
ii.
complying with Accounting Standards and Corporations Regulations 2001; and
b.
the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
c.
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
d.
the consolidated entity disclosure statement is true and correct.
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
2024.
This declaration is signed in accordance with a resolution of the Board of Directors.
Alec Pismiris
Director
Dated this 4th day of September 2024
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 66
Annual Report for the year ended 30 June 2024
INDEPENDENT AUDITOR’S REPORT
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 67
Annual Report for the year ended 30 June 2024
INDEPENDENT AUDITOR’S REPORT (continued)
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 68
Annual Report for the year ended 30 June 2024
INDEPENDENT AUDITOR’S REPORT (continued)
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 69
Annual Report for the year ended 30 June 2024
INDEPENDENT AUDITOR’S REPORT (continued)
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 70
Annual Report for the year ended 30 June 2024
AUDITOR’S INDEPENDENCE DECLARATION
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 71
Annual Report for the year ended 30 June 2024
ASX ADDITIONAL INFORMATION
QUOTED SECURITIES
(a)
ORDINARY FULLY PAID SHARES
(i)
DISTRIBUTION OF SHAREHOLDERS AS AT 22 AUGUST 2024:
SPREAD
NO. OF
NO. OF
PERCENTAGE OF
OF HOLDINGS
HOLDERS
SHARES
ISSUED CAPITAL %
1 – 1,000
59
19,246
0.00%
1,001 - 5,000
37
109,083
0.01%
5,001 - 10,000
59
509,514
0.03%
10,001 - 100,000
765
41,326,562
2.60%
100,001+
1,000
1,545,680,403
97.36%
1,920
1,587,644,808
100.00%
The number of shareholdings held in less than marketable parcels is 439 (based on the last
sale price of $0.013 on 22 August 2024).
(ii)
TOP 20 HOLDERS OF ORDINARY FULLY PAID SHARES:
The names of the twenty largest shareholders of ordinary fully paid shares are listed below:
NAME
NO. OF
PERCENTAGE
ORDINARY
OF ISSUED
SHARES
HELD
SHARES %
1
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
146,748,283
9.24%
2
LION SELECTION GROUP LIMITED
63,311,688
3.99%
3
STONE PONEYS NOMINEES PTY LTD
57,536,364
3.62%
4
SNOWBALL 3 PTY LTD
54,000,000
3.40%
5
CHALLENGE RESOURCES PTY LTD
44,000,000
2.77%
6
MR LESLIE BRIAN DAVIS & MRS ANNETTE FAY DAVIS
43,491,515
2.74%
7
MR DAMIEN LESLIE KEYS & MRS AMY DAWN KEYS
36,300,000
2.29%
8
MONSLIT PTY LTD
31,666,667
1.99%
9
P D CRUTCHFIELD PTY LTD
27,883,736
1.76%
10
CAMPBELL KITCHENER HUME & ASSOCIATES PTY LTD
27,357,948
1.72%
11
CITICORP NOMINEES PTY LIMITED
25,168,003
1.59%
12
TRI-STAR E&P PTY LTD
20,000,000
1.26%
13
LAIDBACK PTY LTD
17,937,994
1.13%
14
MR KENNETH GATCHALIAN
16,062,244
1.01%
15
MR JOE LEUZZI & MRS SALLY LEUZZI
16,000,000
1.01%
16
TOPAZE ENTERPRISES PTY LTD
15,000,000
0.94%
17
MR ANDREW GEORGE NICOLSON
14,049,341
0.88%
18
PARKRANGE NOMINEES PTY LTD
13,928,889
0.88%
19
IONA COMPANY PTY LTD
13,200,000
0.83%
20
ACP INVESTMENTS PTY LTD
12,000,000
0.76%
Total
695,642,672
43.82%
Total issued capital - selected security class(es)
1,587,644,808
100.00%
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 72
Annual Report for the year ended 30 June 2024
(iii)
VOTING RIGHTS
Article 12.13 of the Constitution specify that on a show of hands every member present in
person, by attorney or by proxy shall have:
(a)
for every fully paid share held by him one vote; and
(b)
for every share which is not fully paid a fraction of the vote equal to the amount paid
up on the share over the nominal value of the shares.
(iv)
SUBSTANTIAL SHAREHOLDERS
Name
Ordinary Shares
No.
%
1832 Asset Management L.P.
133,000,000
8.38
Torresan Group
85,666,667
5.39
218,666,667
13.77
(b)
UNQUOTED SECURITIES
(i)
UNLISTED OPTIONS ON ISSUE
Options exercisable at $0.03 expiring 30 September 2025
288,240,611
Options exercisable at $0.03 expiring 2 November 2025
1,000,000
Options exercisable at $0.021 expiring 27 November 2026
15,000,000
Options exercisable at $0.0225 expiring 7 July 2027
20,000,000
Options exercisable at $0.0225 expiring 30 June 2027
25,733,334
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 73
Annual Report for the year ended 30 June 2024
CORPORATE GOVERNANCE STATEMENT
Sunshine Metals Limited and the Board are committed to achieving and demonstrating high standards of
corporate governance. Sunshine Metals Limited has modelled its corporate governance policies against the
Corporate Governance Principles and Recommendations (4th edition) published by the ASX Corporate
Governance Council.
The 2024 corporate governance statement was approved by the board on 4 September 2024 and is current
as at 4 September 2024. A description of the Group’s current corporate governance practices is set out in the
Group’s Corporate Governance Statement which can be viewed at www.shnmetals.com.au/investor-
centre/corporate-governance/.
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 0
Annual Report for the year ended 30 June 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Name of entity
Type of entity
Trustee,
partnership
or
participant in
joint venture
% of
share
capital
held
Country of
incorporation
Australian
resident or
foreign
resident (for
tax purposes)
Foreign tax
jurisdiction(s) of
foreign
residents
Sunshine Metals
Limited
Body corporate
n/a
n/a
Australia
Australia
Australia
Sunshine
(Triumph) Pty Ltd
Body corporate
n/a
100
Australia
Australia
Australia
Sunshine
(Ravenswood)
Pty Ltd
Body corporate
n/a
100
Australia
Australia
Australia
Sunrise
Exploration Pty
Ltd
Body corporate
n/a
100
Australia
Australia
Australia
Sunshine
Minerals Pty Ltd
Body corporate
n/a
100
Australia
Australia
Australia
74
SUNSHINE METALS LIMITED AND CONTROLLED ENTITIES 1
Annual Report for the year ended 30 June 2024