ANNUAL
REPORT
superiorresources.com.au
Corporate Directory
Directors
Carlos Alberto Fernicola
(Non-Executive Chairman)
Peter Henry Hwang
(Managing Director)
Simon James Pooley
(Non-Executive Director)
Company Secretary
Carlos Alberto Fernicola
Stock Exchange
ASX LIMITED
ASX Code: SPQ
Company
SUPERIOR RESOURCES LIMITED
ABN 72 112 844 407
Registered Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
Principal Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
Telephone: 07 3847 2887
Email: manager@superiorresources.
com.au
Internet Address
www.superiorresources.com.au
Postal Address
PO Box 189
COORPAROO QLD 4151
Share Registry
LINK MARKET SERVICES LIMITED
Level 21, 10 Eagle Street
BRISBANE QLD 4000
Postal Address
Locked Bag A14
SYDNEY SOUTH NSW 1235
Telephone: 1300 554 474
Facsimile: 02 9287 0303
Email: registrars@linkmarketservices.
com.au
Auditor
WILLIAM BUCK
Level 21, 307 Queen Street
BRISBANE QLD 4000
Telephone: 07 3229 5100
Facsimile: 07 3221 6027
CONTENTS
Chairman and Managing Director’s Review
Highlights
Review of Operations
Directors' Report
Auditor's Independence Declaration
Corporate Governance
Consolidated Statement of Profit or Loss
Consolidated Statement of other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes In Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors' Declaration
Independent Auditor’s Report
Shareholder Information
Tenement Schedule
Mineral Resources Statement
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4
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64
SUPERIOR RESOURCES
Big projects.
Big potential.
Superior Resources Limited (ASX:SPQ) is an Australian public company
exploring for large copper-gold, nickel-copper-PGE, gold and lead-zinc-
silver deposits in northern Queensland which have the potential to return
maximum value growth for shareholders.
Based in Brisbane, Queensland, Superior is focused on multiple Tier-1 potential
exploration targets and has a dominant position within the Carpentaria Zinc Province
in north-west Qld and Ordovician rock belts hosting copper-gold porphyries in north-
east Qld, considered equivalents of the NSW Macquarie Arc.
Amid rising demand from the green transition for metals such as copper, nickel,
PGEs, cobalt and zinc, Superior has the right projects in the right location at the
right time.
Our experienced Board has expertise in all aspects of minerals exploration, financial
management and corporate governance, backed by an expert geological team to
advance our exploration portfolio.
To find out more, please visit our website at www.superiorresources.com.au
1
ANNUAL REPORT 2022 CHAIRMAN AND MANAGING
DIRECTOR’S REVIEW
Dear Fellow Shareholders
Superior Resources has enjoyed a standout year as our
exploration efforts drive increased shareholder value.
Post financial year-end, in August 2022 Superior announced
that variable amounts of visual copper mineralisation had been
intersected over almost the entire 933m length of Bottletree
hole five.
The Company’s market value has tripled over the past financial
year, with the share price hitting record highs on the back of
continued exploration success.
Results thus far have been exceptional and we look forward
to announcing further significant developments, with drilling
expected to continue to calendar year-end.
Thanks to the support of investors, Superior has advanced
an active exploration program across our projects in northern
Queensland.
Superior is well placed for further success in the year ahead,
with fiscal 2022 showing a number of significant results.
Bottletree – advancing towards major discovery
The Bottletree Copper-Gold Prospect represents the first of
several opportunities for Superior to discover and develop large
copper-gold and nickel-copper-gold-PGE deposits within the
richly endowed mineralised belts secured by the Company’s
100% owned Greenvale Project tenements.
During the past year, substantial advances have been made
towards a potential major copper discovery at Bottletree, with
impressive drill results reinforcing its large size potential.
Commencing in September 2021, as part of a 13,000m
drilling campaign across the Company’s 100 per cent-owned
Greenvale Project, a deep three hole diamond drilling program
tested Bottletree’s porphyry potential. Previous drilling in 2018
showed extensive copper mineralisation associated with an
intense induced polarisation chargeability anomaly.
The 2021 program confirmed very extensive copper-gold
mineralisation, with the third hole returning an impressive
intersection of 632m @ 0.21% Cu, including 224m @ 0.40%
Cu and 100m @ 0.53% Cu. A large-scale copper system was
rapidly emerging.
In June 2022, the Company launched a new diamond drilling
program at Bottletree, targeting the core of what has been
interpreted as a large-scale Cu-Au porphyry system. An initial
program of eight holes was planned for a minimum of 3,700m.
Superior’s other porphyry copper prospects are also advancing,
with the Company planning maiden diamond drilling programs
at both the Wyandotte Copper Prospect and Cockie Creek
Porphyry Copper-Gold Prospect.
Steam Engine Resource upgraded
The Steam Engine Gold Project returned some impressive
results during the financial year, with the resource drilling
program resulting in a material upgrade to its Mineral Resource.
Superior aims to develop a low capex mining operation at
Steam Engine, with the potential for near-term cashflow to
drive shareholder value and significantly expedite progress at
the Company’s multiple other high-potential critical mineral
projects, including Bottletree.
In October 2021, Superior announced a spectacular intersection
grading 115.2 g/t Au at the project’s Eastern Ridge Lode, which
complements a bonanza intercept of 184 g/t Au reported in
2020. By the completion of the 2021 program a total of 314
holes for 22,733 metres had been drilled by Superior during the
2020 and 2021 field seasons.
As stated in the October 2021 announcement, the deeper we
drill, the better the holes become at Steam Engine.
In April 2022, following the 2021 resource drilling program,
Superior announced a material upgrade to the Steam Engine
Mineral Resource, comprising 4.18 million tonnes @ 1.5 g/t
Au for 196,000 ounces, representing a 60.7% increase in total
Resources and an 80.6% rise in total Measured and Indicated
Resources. The Resource has more than doubled since
definition drilling started in mid-2020.
2
SUPERIOR RESOURCES LIMITED Considering that the upgraded Resource has been estimated
over only 1.3 km of a total 14 kilometres of lode strike potential,
Steam Engine presents the Company with a superb opportunity
to develop a significant gold deposit within the Greenvale area.
Part of this lode extension potential can be seen within a 4km
gold corridor between Steam Engine’s Dinner Creek Lode
and the northern edge of Bottletree. The lodes at the historic
Windmill East and Origin prospects appear highly mineralised
and identical in style to the Steam Engine Lode, with rock chip
assays returning up to 65.9 g/t Au.
The Company is currently conducting a Feasibility Study on the
project for a mining and processing operation. Based on the
positive results of the earlier Scoping Study and the outlook for
the precious metal, Superior sees reasonable prospects for the
development of a new gold mine in the near term.
Dido/Big Mag expands
In March 2022, Superior received a third exploration
permit (EPM 27932) over the Dido Intrusive Complex,
which has confirmed potential to host major Voisey’s Bay/
Julimar-Gonneville style nickel-copper-PGE magmatic
sulphide systems.
The prospectivity of this area has been demonstrated by Anglo
American, having previously rated the Dido Batholith among
the top 10 of 100 priority target areas in Australia. Anglo
American generated very extensive geological and geophysical
datasets and identified numerous targets during its five-year
exploration campaign.
Critically, Anglo intersected well-mineralised Voisey’s Bay-style
magmatic Ni-Cu-PGE sulphide intrusions in several diamond
drill holes that it completed.
The Company is excited by the project’s potential, having
identified more than 40 high priority targets, some of which
are recognised as the first Voisey’s Bay-style systems
in Queensland.
With this ground secured, Superior shareholders have an
excellent opportunity to become part of our quest to discover
a world-class nickel-copper-PGE deposit. The Company
aims to commence initial drilling programs during the 2023
field season.
Investor support
Superior’s successes would not have been possible without the
support of investors. Thank you to all shareholders, whether
recent or longstanding, who have backed the Company’s capital
raising initiatives over the past financial year.
Both placements conducted by the Company were
substantially oversubscribed, highlighting the strength of
investor demand and support for our exploration initiatives.
Superior was strongly supported by a number of new domestic
and global institutions together with high net worth investors,
with the introduction of new institutional investors particularly
significant as the Company accelerates its exciting copper and
gold drilling programs.
Together with investors, Superior also thanks the Board,
employees, consultants, contractors, suppliers and all those
associated with the Company for your support over the
past year. Our bright future would not be possible without
your efforts.
Leveraging the green transition
The clean energy transition is set to significantly increase
demand for key minerals and Superior shareholders are well
placed to benefit.
According to the World Bank, more than 3 billion tonnes of
minerals and metals will be needed to deploy wind, solar
and geothermal power as well as energy storage. It predicts
the need for a 500% increase in production by 2050 to meet
demand for clean energy technologies.
Clearly, such strong demand forecasts highlight the need for
increased minerals exploration and production.
With a project portfolio spanning copper, nickel, PGEs, zinc,
cobalt, uranium and rare earth elements, Superior is set to
leverage the green transition.
Thank you again for your ongoing support as we work to
deliver success and growth for Superior shareholders over the
coming years.
Yours sincerely
Carlos Fernicola
Peter Hwang
Chairman
Managing Director
3
ANNUAL REPORT 2022 HIGHLIGHTS
Transformational advances, with several
additional porphyry copper-gold prospects
being prepared for 2023 drilling campaigns
Dido/Big Mag Project expanded, becoming
sector-leading Ni-Cu-PGE magmatic
sulphide opportunity
Material upgrade to Steam Engine Gold
Resource to 196,000 oz Au
Strong market backing, with consistently
oversubscribed capital raising campaigns
Future facing project portfolio well aligned
for green transition
4
SUPERIOR RESOURCES LIMITED Review of
Operations
Superior Resources (ASX:SPQ) holds a portfolio
of quality Tier 1 potential exploration projects in
North Queensland prospective for copper, gold,
nickel-PGE, zinc-lead-silver, rare earth elements
and uranium.
Nicholson
Victor
Mount Isa
Cairns
Greenvale
Townsville
QLD
Location map showing
the Company’s current
portfolio of projects.
5
Brisbane
ANNUAL REPORT 2022 LEVERAGING
THE GREEN
TRANSITION
Superior’s projects are leveraging the green transition, with our
portfolio of key forward-facing metals including copper, nickel, PGEs,
cobalt and zinc, together with uranium and rare earth elements.
Feasibility Study
Resource definition /
Significant mineralisation
Advanced exploration
Exploration
6
SUPERIOR RESOURCES LIMITED Greenvale Project
The Greenvale Project (SPQ 100%) is highly prospective for
multiple porphyry copper-gold, orogenic gold, VMS copper,
Voiseys Bay style magmatic nickel-copper-PGE sulphide and
zinc deposits and contains at least 60 high potential prospects.
The project covers a substantial area of 1,750 sq km and is
located within a region of notable economic significance, being
proximal to the Kidston, Balcooma, Surveyor and Dry River
South deposits.
The Kidston Clean Energy Hub, being constructed at the former
Kidston mine site, will supply 100% renewable energy into the
NEM via a transmission line passing through the centre of the
Greenvale Project area.
Mineral prospects within the Greenvale Project include the following:
Bottletree
Cockie Creek
Porphyry copper-molybdenum-gold
Porphyry copper-gold
Wyandotte Copper
High-grade copper, potential porphyry
Galah Dam
Big Mag
Palmer Rails
Phantom Creek
Bombay Sapphire
Steam Engine
Halls Reward
Potential porphyry / massive sulphide copper-gold-zinc
Potential magmatic nickel-copper-PGE sulphide
Voisey’s Bay style magmatic nickel-copper-PGE sulphide
Voisey’s Bay style magmatic nickel-copper-PGE sulphide
Potential VMS or porphyry copper
High-grade orogenic lode gold
Cyprus style VMS (high-grade copper)
One Mile/One Mile Dam
Potential VMS / porphyry copper-gold
Riesling
Lucky Creek
Potential Broken Hill Style zinc-lead-copper
Lateritic Nickel-Cobalt-Rare Earth Elements
7
7
ANNUAL REPORT 2022
Bottletree Copper Prospect
FIRST CRITICAL DRILL HOLE: BTDD004:
Significant porphyry-style mineralisation:
632m @ 0.21% Cu, 0.03g/t Au, 0.60ppm Ag,
18.0ppm Mo from 5m below surface, including:
224m @ 0.40% Cu, 0.05g/t Au, 0.90ppm Ag,
3.5ppm Mo from 242m
• 103m @ 0.53% Cu, 0.05g/t Au, 1.4ppm Ag,
3.3ppm Mo from 363m
• 1m @ 5.25% Cu, 0.31g/t Au, 10.7g/t Ag, 1.5ppm
Mo from 363m
• 12m @ 1.01% Cu, 0.07g/t Au, 2.2ppm Ag, 1.9ppm
Mo from 363m
• 15m @ 1.19% Cu, 0.15g/t Au, 3.6ppm Ag, 1.9ppm
Mo from 451m.
Bottletree is Superior’s most exciting large-scale copper
prospect, located approximately 210 km west of Townsville, Qld
and only 5 km south of the Steam Engine Gold Project.
In September 2021, a deep diamond drilling program
commenced, which saw the completion of three diamond core
holes totalling 2,200m, targeting the untested core of a large,
high-order MIMDAS IP chargeability anomaly.
A 2018 hole drilled by Superior identified extensive copper
mineralisation, returning 292m @ 0.22% Cu, including 18.7m @
1.12% Cu (SBTRD006) (refer ASX release 25 October 2018).
On 30 November 2021, Superior announced that drilling at
the first two diamond drill holes had identified the presence of
extensive porphyry-style copper-gold mineralisation.
The third hole intersected numerous visually-observed copper-
mineralised vein sets and disseminated copper over the
majority of the 659m hole. Strong copper sulphide mineralised
vein sets were intersected over an interval of approximately
200m immediately west of the chargeability anomaly.
Importantly, veins of quartz-chalcopyrite-molybdenite which
resemble Type-B veins in a porphyry system were intersected.
Porphyry Type-B veins are a classic indication of a nearby
porphyry system.
In January 2022, Superior announced the first assay results
from the 2,300m Bottletree drilling program.
BTDD001, drilled to 684.6m, intersected extensive disseminated
and vein copper-gold-silver mineralisation over variably broad
intervals from 132m to 681m, with individual intervals ranging
up to 87m. The disseminated zones included numerous zones
of high grade, intensely mineralised shear-related chalcopyrite-
pyrrhotite-quartz veins returning up to 2.79% Cu.
Drilling confirmed that the extensive copper mineralisation
highlighted by the chargeability anomaly does not represent the
main mineralised porphyry stock, but late-stage mineralisation
sourced potentially from a large copper-gold porphyry system
located nearby and to the west of the anomaly.
Aerial oblique view of Bottletree Copper Prospect viewed towards northeast, showing priority porphyry core target and broader satellite-visible intrusion ring feature.
8
SUPERIOR RESOURCES LIMITED impressive main copper zone of 224m @ 0.40% Cu, 0.05g/t
Au, 0.9ppm Ag, 3.5ppm Mo (molybdenum) within an overall
mineralised zone of 632m @ 0.21% Cu, 0.03g/t Au, 0.60ppm
Ag, 18.0ppm Mo.
The results in BTDD004 added to the mineralisation reported
earlier from hole BTDD001, collared 500m to the east, which
returned an overall intersection of 552.6m @ 0.16% Cu, 0.02g/t
Au, 0.7g/t Ag from 132m to the end of hole at 684.6m.
BTDD004 has returned the best copper intersection so far
at Bottletree and is considered to be indicative of better
mineralisation towards the interpreted core of a central
porphyry system, west of the 2021 MIMDAS IP anomaly.
2022 drilling program
In June 2022, Superior commenced its 2022 diamond
drilling program at Bottletree, comprising an initial eight deep
diamond holes for a minimum of 3,700m. The drill holes are
targeting the core of at least one large, interpreted Cu-Au-Mo
porphyry system that is coincident with a 1.5km x 1km soil
copper anomaly and a 1km-wide induced polarisation (IP)
chargeability anomaly.
Post-balance date, in August 2022 Superior announced that
visual copper mineralisation had been intersected over almost
the entire 933.6m Bottletree Hole 5, collared 300m west of
the fourth hole. Hole 5 intersected variable zones of visually
observed copper-mineralised vein sets and disseminated
copper of variable intensities from near surface to end of hole
at 933.6m. The results reinforced the Company’s expectations
of the project’s very large size potential, with an extensive
dispersion of copper mineralisation.
The Bottletree drilling program is expected to continue through
to the end of calendar 2022.
BTDD005 – 699.9m (left, 708.5m (right) – buck quartz vein with chalcopyrite-
pyrite-pyrrhotite infill.
9
Significantly, a new understanding of the polymetallic veining
suggests the mineralisation has affinities with late-stage
shear veining in some Central European porphyry deposits
that are developed after the main stockwork and sheeted vein
mineralisation stages of porphyry system development.
In addition, the mineralisation is more extensive than indicated
by the chargeability anomaly and crops out at surface.
Although the drilling did not identify the targeted porphyry
stock, the amount of copper mineralisation is considerable and
is currently observed over at least 750m surface strike, 500m
width and 600m vertical extent.
In May 2022, Superior announced assay results from a large
multi-element soil geochemistry survey. The results confirmed
the Company’s 2021 conclusions by strongly highlighting
multiple copper-gold-molybdenum porphyry core targets to the
west and southwest of the 2021 area of focus.
In addition, porphyry pathfinder elements defined new targets
that extend beyond the survey area, significantly expanding
Bottletree’s area of interest to 2.5 km by 2.0 km.
In June 2022, Superior announced assay results from the third
deep diamond hole completed during 2021, BTDD004. Drilled to
658.9m, it was the third and last hole drilled at Bottletree during
the 2021 field season and was designed to test the potential
for porphyry copper-gold mineralisation on the western side
of a large and intense MIMDAS induced polarisation (IP)
chargeability anomaly.
The assays confirmed that a very extensive zone of copper
mineralisation was intersected over almost the entire length
of the 658.9m hole. Core from BTDD004 showed variably
mineralised quartz-chalcopyrite vein sets and disseminated
chalcopyrite, including a strongly mineralised 224m interval
immediately to the west of the MIMDAS IP anomaly.
Although interpreted to be located some distance from the
core of an intrusive porphyry system, the assays returned an
ANNUAL REPORT 2022 Significantly increased thicknesses of mineralised zones were
observed in several other holes, providing an early indication
of the potential for a larger than expected high grade ore shoot
system. In response, the Steam Engine Lode program was
extended by a further 5,000m to target down-dip extensions
of high grade mineralisation.
In September 2021, Superior announced a second batch of
assays, confirming significant down-dip extensions to the gold
mineralisation. Results included 7m @ 3.7 g/t Au from 94m
(SRC126), including 4m @ 5.0 g/t Au from 94m and 6m @ 2.5
g/t Au from 75m (SRC123).
These results were followed in October 2021 by a spectacular
intersection of 115.2 g/t Au from the Eastern Ridge Lode,
from within an intersection comprising 5m @ 24.9 g/t Au
from 27m (SRC161). The results have identified greater than
expected potential for expansion of the Eastern Ridge Lode
Mineral Resource.
Further assay results reported in November 2021 confirmed
the down-dip strengthening of the lode, a development that has
been observed over substantial portions of the Steam Engine
Lode. The results included intersections of up to 21m @ 2.2
g/t Au from 160m (SRC188), further supporting significant
resource growth potential.
Steam Engine Gold Deposit
MINERAL RESOURCE ESTIMATE UPGRADED BY
60.7% TO 4.18 MILLION TONNES @ 1.5 G/T AU FOR
196,000 OUNCES AU, COMPRISING:
Measured & Indicated: 2.22 million tonnes @ 1.7 g/t
Au (approx. 121,000 ounces Au);
and
Inferred: 1.96 million tonnes @ 1.2 g/t Au (approx.
75,000 ounces Au).
The Steam Engine Gold Deposit provides Superior with a
strategic opportunity to realise signficant early cash flow,
whilst also providing large scale deposit potential. This deposit
contains at least two sub-parallel gold-bearing lodes, referred to
as the Steam Engine Lode and the Eastern Ridge Lode.
A third zone of sub-parallel mineralisation exists to the east of
Eastern Ridge Lode (Dinner Creek Lode) and an area of gold
mineralisation comprising multiple lodes (Southern Zone) is
located between, and to the south of the Steam Engine and
Eastern Ridge lodes.
The results of a Scoping Study for the mining and toll treatment
of approximately 65% of the current Resource tonnes was
finalised in April 2021.
The positive financial outcomes indicated by the study enabled
the Company to immediately commence a Feasibility Study
and mining lease application process.
Maiden drilling at the Dinner Creek Zone and Resource extension
drilling at the Steam Engine Lode, totalling approximately 4,500m,
commenced in June 2021, with 70 RC holes drilled.
In August 2021, Superior announced the first batch of
assay results from an initial 8,000m drilling campaign at the
Greenvale Project. The first hole confirmed the lode thickens
significantly down-dip with impressive assay results, including
10m @ 2.8 g/t Au from 58m (SRC105) and 19m @ 1.7 g/t Au
from 58m.
Table 1. Steam Engine Gold Project updated JORC, 2012 Mineral Resources Estimates
Model
OWNER OPERATOR MODEL
(0.25 g/t Au block grade cut-off)
TOTAL
TOLL TREATMENT MODEL
(1.0 g/t Au block grade cut-off)
TOTAL
Classification
Measured
Indicated
Inferred
Measured
Indicated
Inferred
Tonnes
800,000
1,420,000
1,960,,000
4,180,000
590,,000
1,020,000
1,110,000
2,720,000
10
Grade (g/t Au)
Ounces (Au)
2.1
1.5
1.2
1.5
2.6
1.9
1.7
2.0
53,000
68,000
75,000
196,000
49,000
62,000
60,000
171,000
SUPERIOR RESOURCES LIMITED
Upgraded resource
In April 2022, Superior announced a substantial Mineral
Resource upgrade for Steam Engine, with a 60.7% increase
in total resources and an 80.6% rise in total Measured and
Indicated categories:
Lower Grade Owner Operated Processing Plant Model (lower
cut-off grade of 0.25 g/t Au)
60.7% increase in total Measured, Indicated and Inferred
Resource to:
Au
Ounces
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
Steam Engine Resource Growth
(Total contained Au)
Inferred
85,000
Inferred
64,000
Indicated
30,000
Inferred
55,000
Indicated
47,000
Measured
20,000
Inferred
75,000
Indicated
68,000
Measured
53,000
4.18 Mt @ 1.5 g/t Au for 196,000 oz Au
October 2017
(cut-off 1.0 g/t Au)
May 2020
(cut-off 0.5 g/t Au)
March 2021
(cut-off 0.5 g/t Au)
April 2022
(cut-off 0.25 g/t Au)
80.6% increase in total Measured and Indicated
Resource to:
2.22 Mt @ 1.7 g/t Au for 121,000 oz Au
High Grade Toll Treatment Model (higher cut-off grade of
1.0 g/t Au)
40.2% increase in the total Measured, Indicated and
Inferred Resource to:
2.72 Mt @ 2.0 g/t Au for 171,000 oz Au
65.7% increase in total Measured and Indicated
Resources to:
1.61 Mt @ 2.2 g/t Au for 111,000 oz Au
Chart showing growth of total contained Au metal from Resources Estimates
of the Steam Engine Gold Project.
The key objectives for the Steam Engine Project include:
1. Determine the most beneficial strategic development
pathway for the project;
2. Conduct a feasibility study on a mining and toll
treatment scenario;
3. Commence an aggressive exploration drilling program to
rapidly expand the Mineral Resources; and
4. Progress regulatory approvals processes, which include
environmental and native title matters.
The work to achieve those goals is extensive and will include
mining studies, exploration planning, environmental studies,
commercial and legal matters.
11
ANNUAL REPORT 2022
Cockie Creek Porphyry Copper-Gold Prospect
Cockie Creek is a large potential porphyry copper-gold
mineralised system that extends for over 1.2 kilometres. Two
large chargeability anomalies identified beneath the shallower
copper mineralisation are yet to be drill tested. Modelling
has opened up the potential of the area to host a significant
porphyry copper-gold deposit.
The current Mineral Resource estimate comprises 13Mt @
0.42% Cu (0.25% Cu cut-off grade) (JORC 2004), based on a
strike length of 1.2 km and down to a maximum depth of 250m.
Superior has recently conducted 3D geophysical remodelling of
induced polarisation (IP) chargeability datasets and combined
the new models with soil geochemical datasets to identify
potential extensions to the current copper resource.
The new geophysical and geochemical studies have highlighted
a large potential porphyry intrusive complex to be associated
with the copper resource.
Refer ASX announcement dated 27 March 2013.
Wyandotte Copper Prospect
The Wyandotte Prospect is a shallow zone of high-grade
copper mineralisation, which is potentially associated with a
deeper intrusion-related or porphyry system.
Historically, the main area of mineralisation has been held
under mining leases and mineral development licences. The
earliest significant work on the prospect was by Silver Valley
Minerals (SVM) in 1969. SVM drilled 27 diamond core drill holes
and established a supergene copper resource and also sank a
shaft on the copper mineralisation.
The best of the drill intersections underpinning the resource
were in adjacent holes, DDH05 - 5.8m @ 7.8% copper and
DDH08 - 13.4m @ 3.6% copper.
Shell Minerals Exploration (Aust.) Pty Ltd conducted a review
of previous work and drilled a further five diamond core drill
holes in 1975. No exploration work has been conducted on the
mineralised area since 1975.
Exploration Target
The historic work that has been conducted on the mineralised
zone has been determined by Superior to be sufficient to
enable the estimation of an Exploration Target that meets the
requirements of clauses 17 and 38 of the JORC Code 2012,
ASX Listing Rules 5.7, 5.12 and 5.16 and ASX Listing Rules
Guidance Note 31.
The Company has defined an Exploration Target (see
Cautionary Statement below), expressed as a tonnage and
grade range:
Table 2. Exploration Target – Wyandotte Copper Prospect
Tonnes
400,000
1,000,000
SG
2.7
3.0
Cu %
2.2%
1.9%
Cu tonnes
Range
8,800
Lower
19,000
Upper
Cautionary Statement (JORC, 2012)
Exploration Target: The Wyandotte Exploration Target has been calculated
using historic drill hole and assay information by a Competent Person
(Competent Person declaration is provided in the latter parts of this report).
The Exploration Target is reported in a form comprising a tonnage and copper
mineralisation grade range. The Exploration Target does not constitute a
Mineral Resource or Ore Reserve. The potential quantity and grade expressed
by the Exploration Target is conceptual in nature as there has been insufficient
exploration information to estimate a Mineral Resource. Furthermore, it is
uncertain whether further exploration work will result in the estimation of a
Mineral Resource.
In determining the Exploration Target, sectional interpretations
of the historic drilling data were used to form wireframe models
of the copper mineralisation for several different scenarios.
Three of the models examined areas in close proximity to
the historic drilling. A fourth model examined the possibility
of a down-dip extension of the copper mineralisation near
the historic drilling, together with the possibility of a southern
extension of the mineralisation along strike from the
known mineralisation.
Tonnage and grade estimates were made of the models to help
determine the likely ranges of tonnes and grade for the targeted
mineralisation down to approximately 100 metres vertical
depth. Only areas proximal and down dip of the historical
drilling were used to determine this exploration target, as
insufficient data exists at this time to determine the extent of
any further along strike mineralisation.
12
SUPERIOR RESOURCES LIMITEDCockie Soil Cu ppm500 to 5,700 (91)150 to 500 (145)70 to 150 (829)0 to 70 (3177) In March 2022, Superior was granted the last outstanding
exploration permit (EPM27932) in its Dido/Big Mag Project,
which covers the expansive Dido Batholith and Big Mag
igneous complex. The grant effectively secured what is likely
to be the only confirmed Voisey’s Bay/Julimar-style Ni-Cu-
PGE magmatic sulphide mafic-ultramafic igneous complex
in Queensland.
The grant of the tenement expands the Ni-Cu-PGE project to
1,158 sq km and the overall Greenvale Project to 1,749 sq km.
Prior to substantial data generation, academic research and
initial follow up work by Anglo American up to 2012, the Dido
Batholith and Big Mag had received little or no exploration and
certainly no exploration for magmatic Ni-Cu-PGE sulphides.
Exploration work conducted by Anglo American over a five-
year period has provided an enormous and valuable dataset
that includes over 5,000 line-kms of high-quality airborne
and ground geophysical survey data, soil geochemistry and
geological mapping data, limited initial drill hole results and
the results of petrographic and academic research on the
prospective rock types.
Anglo American generated numerous (<40) magnetic and EM
conductor targets. However, follow-up work was focussed
on only two high priority targets. Despite initial diamond core
drilling on these targets returning very positive results that
confirmed the presence of extensive Voisey’s Bay style Ni-Cu-
PGE mineralisation, no further follow up work was conducted.
In its final statutory report to the government, Anglo American
suggested that “Despite the project revealing a number
of geophysical and geochemical targets the project was
recommended for surrender because [Anglo American was]
unable to negotiate a reasonable access agreement with one
Land Owner.”
Superior has successfully negotiated land access
arrangements with the same landowner.
Notably, Anglo American ranked Dido/Big Mag within its top 10
targets on the basis of a bullseye magnetic feature (Big Mag),
located on a craton margin directly associated with known
layered mafic intrusions.
Superior considers that:
the Spectrem airborne and other ground geophysical
survey data and resulting anomalies (some of which were
considered by Anglo American to be very high priority)
were not followed up and are of significant interest;
numerous (obvious) high priority mafic-ultramafic
intrusions (including potential chonoliths) interpreted from
magnetic imagery by Anglo American and Superior have
received no exploration work and are likely to be caused by
Voisey’s Bay-style intrusions (a conclusion made by Anglo
American). Only the Palmer Rails target received an initial
round of drilling;
3-D view of Wyandotte mineralisation wireframes of +1% copper and +0.2%
copper mineralisation.
Proposed Drilling Program
A total of 14 drill holes for 1,075m of drilling (30m to 150m
drill hole depths) have been designed to test the Exploration
Target in the area of the historical drilling and also the potential
for down-dip extensions of the copper mineralisation to
approximately 100m vertical depth.
The proposed holes will include four diamond core drill holes
for up to 200m of diamond core drilling (40m to 50m depths)
with the remainder being RC drill holes.
The proposed program is planned to be conducted during the
2023 field season.
Magmatic Nickel-Copper-PGE Sulphide Project
The Dido/Big Mag Project comprises four exploration permits
for minerals (EPMs) (EPM26751, EPM27754, EPM27755 and
EPM27932) covering 1,158 sq km of geology considered
highly prospective for world-class Ni-Cu-PGE magmatic
sulphide ore deposits. The tenements are contiguous with
the original Greenvale Project EPMs and extend the overall
project by approximately 40 kms to the southwest and 20
kms northwards.
The priority areas of interest are the southwestern and western
areas of the greater Greenvale Project, which cover most of the
~470-430 Ma Dido Batholith and the Big Mag igneous complex.
These igneous bodies are located in a zone that is thought
to represent the eastern-most margin of the Australian
continent that formed from the breakup of the Precambrian
supercontinent, Pangaea (re-named Rodinia). Areas to the
east are younger rocks that were accreted to the original
Rodinian eastern margin to form the current eastern part of
Queensland / Australia.
Deep penetrating faults that are formed near many craton
margins act as conduits to transport primitive magmas
through the earth’s crust. In certain conditions, the magmas
result in the formation of various ore deposits such as the type
targeted by Superior.
a significant factor in Anglo American’s and Cazaly’s
decision to relinquish the project tenements was the
diminishing availability of funding during 2012 and 2013,
which was the beginning of a deep and protracted global
downturn in the exploration sector; and
the Dido/Big Mag Project is a sector-leading Ni-Cu-PGE
magmatic sulphide exploration project.
13
ANNUAL REPORT 2022 The Dido/Big Mag Project contains a large number of
high priority Ni-Cu-PGE targets that will require systematic
exploration. So far, Superior has identified more than 40 high
priority airborne magnetic targets. Interpretation of airborne EM
data and the selection of EM targets is ongoing. The quality of
the anomalies identified by Superior to date, are compelling.
In addition, the project area also includes the Walford Creek
West Zinc-Lead-Copper-Cobalt Prospect and the Hedleys
Uranium Prospect.
During the year, Superior undertook exploration program
planning, including a review of the geophysical data.
Forward plans include continuing geophysical interpretation of
airborne electromagnetic (EM) and IP survey data to identify
EM conductor and IP chargeability targets, field inspections of
priority targets and preparation of drill programs.
Nicholson Project
8+ Tier 1 potential
EM targets
Mount Isa Style (lead-zinc-silver)
Walford Creek West
Mount Isa Style (sulphide copper-
lead-zinc-cobalt)
Hedleys Uranium
Uranium
Victor Project
The Victor Project comprises four exploration permits for
minerals covering a total area of 438 sq km. Work conducted
by the Company indicates that stratigraphy prospective for the
discovery of Mount Isa Style deposits is likely to be present
under moderate sedimentary cover within the project area. This
area is relatively unexplored.
Superior’s exploration strategy is based on the mechanism of
geochemical “leakage” of key metals (lead, zinc and copper)
from a deeper Proterozoic mineralised source into the younger
sediments overlying the Proterozoic, which may be one of the
best methods of targeting prospective areas for Mount Isa
style deposits.
Victor Project
Mount Isa Style (lead-zinc-silver)
Kingfisher
Copper-cobalt
During the year, Superior undertook exploration program
planning, including a review of the geophysical data.
Hedleys Uranium
Hedleys Uranium is a strong, localised airborne uranium
radiometric anomaly associated with a major fault. The
anomaly has previously been considered to be an anomaly
related to radon gas dissolved in spring waters and has not
previously been drilled.
Superior’s work indicates that the source of the anomaly lies
approximately 100 to 150m above the major unconformity
between the sandstones and siltstones of the South Nicholson
Group and the underlying carbonaceous siltstones of the
Doomadgee Formation and the Mt Les Siltstone.
No work was undertaken on the project during the
financial year.
TMI 1VD aerial magnetic images of north western corner of Big Mag anomaly
as modelled and interpreted by Superior (left) and Phantom anomaly (right).
Yellow diamonds on the Phantom anomaly (right) are Spectrem EM anomalies
interpreted and selected by Anglo American (Source (Phantom): CR67201,
Dixon, 2011, EPM15646 "Lynd" Fourth Annual Report for the period May 2010
to May 2011, Appendix 1, Polito, Project Review, 2010, Anglo American).
Victor And Nicholson Projects
The Nicholson Project (EPM15670 and EPM18203), together
with the Victor Project is located north-west of Mount Isa and
provides the Company with opportunities to discover similar
Mount Isa style zinc-lead-copper deposits with a portfolio of
drill-ready targets. The projects are located in the Carpentaria
Zinc Province, which contains 20% of the world’s zinc
resource inventory.
In the region immediately surrounding Mount Isa, rocks
prospective for Mount Isa Style deposits are exposed
at or close to surface and as a consequence, have been
intensely explored.
In contrast, the Company’s Nicholson and Victor projects
are located in an equally prospective region that is relatively
unexplored. These are the most likely areas within Queensland
to make the next Mount Isa discovery.
Exploration work completed to date has identified at least
eight large high priority geophysical targets, each of which
have potential to be caused by Tier 1-sized stratiform base
metal deposits.
14
SUPERIOR RESOURCES LIMITED 15
ANNUAL REPORT 2022 SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity (referred to in this Report as the Group)
consisting of Superior Resources Limited and the entities it controlled during the year ended 30 June
2022 (Report).
DIRECTORS
The following persons were Directors of the Company during the year and up to the date of this Report:
P H Hwang Managing Director
C A Fernicola Chairman and Company Secretary
Non-Executive Director
S J Pooley
PRINCIPAL ACTIVITIES
During the year the principal activity of the Group was the continued evaluation and expansion of the
Steam Engine Gold Deposit. The Group also continued exploration for copper-gold and magmatic nickel
sulphide deposits in northern Queensland, Australia. There were no significant changes in the nature of
the Company’s activities during the year and no significant changes in activity are anticipated.
DIVIDENDS
There were no dividends paid to members during the financial year (2021: $nil).
REVIEW OF OPERATIONS
The loss after tax for the year was $597,287 (2021: loss of $569,583).
Coronavirus (Covid19) Impact
The impact of the Coronavirus (COVID-19) pandemic up to 30 June 2022 has been financially neutral
for the Group. The Queensland State and Australian Federal Governments provided financial support
during the 2020 and 2021 financial years suspending the requirement to pay tenement rental fees and
providing cash support (Jobkeeper and Cash Flow Boost) for continued employment of staff.
Operations Summary
The principal activity of the Group during the full year period was exploration for porphyry copper-gold,
gold and nickel-copper-PGE deposits in northern Queensland, Australia. There were no significant
changes in the nature of the Group’s activities during the reporting period.
• GREENVALE PROJECT (porphyry copper, gold and magmatic sulphide nickel-copper-PGE)
Bottletree Copper-Gold Prospect
o Completed first stage deep diamond drilling program, which confirmed the presence of extensive
porphyry-style copper-gold mineralisation1:
Overall Copper intersection:
• 632m @ 0.21% Cu, 0.03g/t Au, 0.60ppm Ag, 18.0ppm Mo from 5m below surface
Significant porphyry-style mineralisation:
• 224m @ 0.40% Cu, 0.05g/t Au, 0.90ppm Ag, 3.5ppm Mo from 242m, including:
o 103m @ 0.53% Cu, 0.05g/t Au, 1.4ppm Ag, 3.3ppm Mo from 363m
o 1m @ 5.25% Cu, 0.31g/t Au, 10.7g/t Ag, 1.5ppm Mo from 363m
o 12m @ 1.01% Cu, 0.07g/t Au, 2.2ppm Ag, 1.9ppm Mo from 363m
o 15m @ 1.19% Cu, 0.15g/t Au, 3.6ppm Ag, 1.9ppm Mo from 451m.
o Commenced second stage deep diamond drilling program targeting zones of potential cores of
porphyry copper-gold-molybdenum mineralisation.
1 Refer ASX announcement dated 2 June 2022
2
16
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity (referred to in this Report as the Group)
consisting of Superior Resources Limited and the entities it controlled during the year ended 30 June
The following persons were Directors of the Company during the year and up to the date of this Report:
2022 (Report).
DIRECTORS
P H Hwang Managing Director
C A Fernicola Chairman and Company Secretary
S J Pooley
Non-Executive Director
PRINCIPAL ACTIVITIES
During the year the principal activity of the Group was the continued evaluation and expansion of the
Steam Engine Gold Deposit. The Group also continued exploration for copper-gold and magmatic nickel
sulphide deposits in northern Queensland, Australia. There were no significant changes in the nature of
the Company’s activities during the year and no significant changes in activity are anticipated.
DIVIDENDS
There were no dividends paid to members during the financial year (2021: $nil).
REVIEW OF OPERATIONS
The loss after tax for the year was $597,287 (2021: loss of $569,583).
Coronavirus (Covid19) Impact
The impact of the Coronavirus (COVID-19) pandemic up to 30 June 2022 has been financially neutral
for the Group. The Queensland State and Australian Federal Governments provided financial support
during the 2020 and 2021 financial years suspending the requirement to pay tenement rental fees and
providing cash support (Jobkeeper and Cash Flow Boost) for continued employment of staff.
Operations Summary
The principal activity of the Group during the full year period was exploration for porphyry copper-gold,
gold and nickel-copper-PGE deposits in northern Queensland, Australia. There were no significant
changes in the nature of the Group’s activities during the reporting period.
• GREENVALE PROJECT (porphyry copper, gold and magmatic sulphide nickel-copper-PGE)
Bottletree Copper-Gold Prospect
o Completed first stage deep diamond drilling program, which confirmed the presence of extensive
porphyry-style copper-gold mineralisation1:
Overall Copper intersection:
• 632m @ 0.21% Cu, 0.03g/t Au, 0.60ppm Ag, 18.0ppm Mo from 5m below surface
Significant porphyry-style mineralisation:
• 224m @ 0.40% Cu, 0.05g/t Au, 0.90ppm Ag, 3.5ppm Mo from 242m, including:
o 103m @ 0.53% Cu, 0.05g/t Au, 1.4ppm Ag, 3.3ppm Mo from 363m
o 1m @ 5.25% Cu, 0.31g/t Au, 10.7g/t Ag, 1.5ppm Mo from 363m
o 12m @ 1.01% Cu, 0.07g/t Au, 2.2ppm Ag, 1.9ppm Mo from 363m
o 15m @ 1.19% Cu, 0.15g/t Au, 3.6ppm Ag, 1.9ppm Mo from 451m.
o Commenced second stage deep diamond drilling program targeting zones of potential cores of
porphyry copper-gold-molybdenum mineralisation.
REVIEW OF OPERATIONS – (continued)
o Completed a large multi-element soil geochemical survey over Bottletree.
Wyandotte Copper Prospect
o Completed a technical study and established an Exploration Target.
o Planned a maiden diamond drilling program.
Cockie Creek Porphyry Copper-Gold Prospect
o Progressed a technical study.
o Planned a maiden diamond drilling program.
Commenced porphyry copper-gold potential study over the entire Greenvale Project area.
Magmatic Nickel-Copper-PGE sulphide Project
o Conducted data review and geophysical modelling of magnetic and VTEM survey data at the Big
Mag, Dido and Phantom Creek nickel-copper-PGE prospects.
o Granted three new exploration permits for minerals (EPMs) (Dido, Phantom Creek and Arthur
Range).
Steam Engine Gold Deposit
o Completed two drilling programs (Stage 1 and Stage 2 drilling programs).
o Upgraded the Mineral Resource Estimate by 60.7% to 4.18 million tonnes @ 1.5 g/t Au for
196,000 ounces Au, comprising2:
▪ Measured & Indicated: 2.22 million tonnes @ 1.7 g/t Au (approx. 121,000 ounces Au);
and
▪
Inferred: 1.96 million tonnes @ 1.2 g/t Au (approx. 75,000 ounces Au).
o Progressing a Scoping Study on the Steam Engine Gold Deposit on the basis of a potential toll
treatment operation.
o Completed an interim Steam Engine strategy study.
o Progressing a Mining Lease application for the Steam Engine Project.
• VICTOR AND NICHOLSON PROJECTS (SEDEX lead-zinc-silver, copper, uranium)
o Exploration program planning including review of geophysical data.
CORPORATE and COMMERCIAL
• The Group completed two capital raising campaigns during the third calendar Quarter of 2021 and
the first calendar quarter of 2022 each comprising a placement.
• Allotment and issue of 119,818,096 shares was completed on 16 September 2021 and allotment of
118,421,053 shares was completed on 8 February 2022.
The Lead Manager of the February 2022 share placement received 10,000,000 options on 7
February 2022 at no consideration.
• During the year, 81,645,478 options with an exercise price of $0.006 were exercised. This raised
$489,873. 4,774,205 options expired on 31 December 2021.
CASH CONSERVATION
The Company’s Board continues to maintain the current cash conservation measures with respect to the
Company’s head office and administration.
1 Refer ASX announcement dated 2 June 2022
2
2 Refer to ASX announcement dated 11 April 2022
3
17
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There are no significant changes in the state of affairs of the Group during the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Apart from other matters already stated, no other matters or circumstances have arisen since 30 June
2022 that have significantly affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS FROM OPERATIONS
The Group is currently conducting a Feasibility Study on the prospects for mining and processing of gold
ore from the Steam Engine Gold Deposit. Based on the highly positive results of the recent Scoping
Study and the general gold price forecasts, the Board considers that there are reasonable prospects of
development of the deposit within the next two years.
The likelihood of realising forward gold prices is difficult. The actual price of gold at any point in the future
depends on numerous foreseeable and unforeseeable factors.
Results from exploration activities are difficult to predict in advance and are uncertain.
REGULATORY MATTERS
The Group’s operations are subject to substantial and significant regulatory control under various
Queensland State and Commonwealth legislation. Significant matters that are regulated include mining,
environmental, native title and real property. No matters of material concern have arisen in relation to
regulatory control up to the date of this Report.
INFORMATION ON DIRECTORS
Peter Henry Hwang B.Sc.(Hons), LLB, MAIG, MGSA, MQLS
Managing director.
Experience and expertise
Mr Hwang has over 10 years’ experience as a gold, base metals and diamond exploration geologist and
20 years’ experience as a solicitor practicing in Queensland and national law firms specialising in
resources, commercial, M&A, infrastructure and native title law. He has extensive experience in advising
on the development and permitting of mining and major infrastructure projects, mining transactions as
well as resource sector mergers and acquisitions transactions.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Managing Director.
Interests in SPQ shares and options
50,220,694 ordinary shares.
4
18
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There are no significant changes in the state of affairs of the Group during the financial year.
Carlos Alberto Fernicola B.Com., FCA, F Fin FCIS FGIA CTA
Chairman.
Experience and expertise
Mr Fernicola is the Principal of Carlos Fernicola & Co., Chartered Accountants. Mr Fernicola is a Fellow
of the Institute of Chartered Accountants in Australia, Fellow of the Governance Institute of Australia and
Fellow of the Financial Services Institute of Australia. He has over 30 years of experience in accounting,
taxation, audit and the financial services industry.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Chairman and Company Secretary.
Member of the Audit Committee.
Interests in SPQ shares and options
51,999,998 ordinary shares.
Simon James Pooley B.Sc., MAIM, GAICD
Non-Executive Director.
Experience and expertise
Mr Pooley has 30 years’ experience in mine development, operations and mineral exploration. He has
held senior industry positions that have demonstrated leadership and management of base and precious
metals exploration and mining operations, development of project assessment types including definitive
and bankable feasibility studies and their conversion into mining operations and managed teams
undertaking exploration evaluations and valuations, project evaluation, resource estimation and
exploration management.
Other current directorships
None.
Former directorships in last 3 years
None.
Special responsibilities
Member of the Audit Committee.
Interests in SPQ shares and options
Nil.
COMPANY SECRETARY
The Company Secretary is Mr Carlos Alberto Fernicola, B.Com, FCA, FFin FCIS FGIA, CTA. Graduate
Diploma Advanced Accounting, Graduate Diploma Applied Finance and Investments, Graduate Diploma
Corporate Governance and Graduate Certificate Financial Planning.
Mr Fernicola was appointed to the position of Company Secretary on 11 November 2010.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Apart from other matters already stated, no other matters or circumstances have arisen since 30 June
2022 that have significantly affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS FROM OPERATIONS
The Group is currently conducting a Feasibility Study on the prospects for mining and processing of gold
ore from the Steam Engine Gold Deposit. Based on the highly positive results of the recent Scoping
Study and the general gold price forecasts, the Board considers that there are reasonable prospects of
development of the deposit within the next two years.
The likelihood of realising forward gold prices is difficult. The actual price of gold at any point in the future
depends on numerous foreseeable and unforeseeable factors.
Results from exploration activities are difficult to predict in advance and are uncertain.
REGULATORY MATTERS
The Group’s operations are subject to substantial and significant regulatory control under various
Queensland State and Commonwealth legislation. Significant matters that are regulated include mining,
environmental, native title and real property. No matters of material concern have arisen in relation to
regulatory control up to the date of this Report.
INFORMATION ON DIRECTORS
Peter Henry Hwang B.Sc.(Hons), LLB, MAIG, MGSA, MQLS
Managing director.
Experience and expertise
Mr Hwang has over 10 years’ experience as a gold, base metals and diamond exploration geologist and
20 years’ experience as a solicitor practicing in Queensland and national law firms specialising in
resources, commercial, M&A, infrastructure and native title law. He has extensive experience in advising
on the development and permitting of mining and major infrastructure projects, mining transactions as
well as resource sector mergers and acquisitions transactions.
Other current directorships
None.
None.
Former directorships in last 3 years
Special responsibilities
Managing Director.
Interests in SPQ shares and options
50,220,694 ordinary shares.
4
5
19
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
The numbers of meetings of the company’s Board of Directors held during the year ended 30 June 2022,
and the numbers of meetings attended by each director were:
Board
Director
PH Hwang
CA Fernicola
SJ Pooley
Audit Committee
Director
CA Fernicola
SJ Pooley
Meetings
Eligible to attend
4
4
4
Meetings
attended
4
4
4
Meetings
eligible to attend
2
2
Meetings
attended
2
2
6
20
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
MEETINGS OF DIRECTORS
REMUNERATION REPORT (AUDITED)
The numbers of meetings of the company’s Board of Directors held during the year ended 30 June 2022,
and the numbers of meetings attended by each director were:
Board
Director
PH Hwang
CA Fernicola
SJ Pooley
Audit Committee
Director
CA Fernicola
SJ Pooley
Meetings
Eligible to attend
Meetings
attended
4
4
4
2
2
4
4
4
2
2
Meetings
eligible to attend
Meetings
attended
The Directors are pleased to present your Group’s 2022 remuneration report which sets out remuneration
information for Superior Resources Limited’s non-executive Directors, executive Directors, and other key
management personnel.
The report contains the following sections:
(a) Directors and key management personnel disclosed in this Report
(b) Remuneration governance
(c) Use of remuneration consultants
(d) Executive remuneration policy and framework
(e) Relationship between remuneration and Superior Resources Limited’s performance
(f) Non-executive director remuneration policy
(g) Details of remuneration
(h) Service agreements
(i) Details of share-based compensation and bonuses
(j) Equity instruments held by key management personnel
(k) Loans to key management personnel
(l) Other transactions with key management personnel
(a)
Directors and key management personnel disclosed in this Report
Non-executive and executive Directors
P H Hwang
C A Fernicola
S J Pooley
Other key management personnel
Name
C A Fernicola
(b)
Remuneration governance
The Board is responsible for:
Position
Company Secretary
•
•
the over-arching executive remuneration framework;
the operation of any established incentive plans which may apply to the executive team, including key
performance indicators and performance hurdles;
remuneration levels of executive Directors and other key management personnel; and
•
• non-executive Directors' fees.
The objective is to ensure that remuneration policies and structures are fair and competitive and aligned
with the long-term interests of the Group.
(c)
Use of remuneration consultants
The Group has engaged the services of a remuneration consultant during the 2021 financial year.
(d)
Executive remuneration policy and framework
The combination of base pay and superannuation make up the executive Directors’ total remuneration.
Base pay for the executive Directors is reviewed annually to ensure the executives’ pay is competitive
with the market. The Board ensures that executive reward satisfies the following key criteria for good
reward governance practices:
competitiveness and reasonableness;
•
• acceptability to shareholders;
•
•
transparency; and
capital management.
6
7
21
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
Long-term incentives
In the event that the Board of Directors proposes to establish any long-term incentives for executive
Directors, the Board will obtain approval at a general meeting of shareholders.
Any issue of options to executive Directors is designed to focus executives on delivering long-term
shareholder returns.
(e)
Relationship between remuneration and Superior Resources Limited’s performance
There is no direct link between remuneration, company performance and shareholder wealth. The
Group’s activities focus on the objective of delivery of long-term shareholder returns.
(f)
Non-executive director remuneration policy
Fees and payments to non-executive Directors reflect the demands which are made on, and the
responsibilities of those Directors. Non-executive Directors’ fees and payments are reviewed annually
by the Board.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum total pool currently stands at
$250,000 in aggregate plus statutory superannuation.
(g)
Details of remuneration
The following tables show details of the remuneration entitled to be received by the Directors and the
key management personnel of the Group for the current and previous financial year.
8
22
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
REMUNERATION REPORT (AUDITED) – (continued)
Long-term incentives
In the event that the Board of Directors proposes to establish any long-term incentives for executive
Directors, the Board will obtain approval at a general meeting of shareholders.
Any issue of options to executive Directors is designed to focus executives on delivering long-term
shareholder returns.
(e)
Relationship between remuneration and Superior Resources Limited’s performance
There is no direct link between remuneration, company performance and shareholder wealth. The
Group’s activities focus on the objective of delivery of long-term shareholder returns.
(f)
Non-executive director remuneration policy
Fees and payments to non-executive Directors reflect the demands which are made on, and the
responsibilities of those Directors. Non-executive Directors’ fees and payments are reviewed annually
by the Board.
Non-executive Directors’ fees are determined within an aggregate Directors’ fee pool limit, which is
periodically recommended for approval by shareholders. The maximum total pool currently stands at
$250,000 in aggregate plus statutory superannuation.
(g)
Details of remuneration
The following tables show details of the remuneration entitled to be received by the Directors and the
key management personnel of the Group for the current and previous financial year.
2022
Name
Non-executive Directors
C A Fernicola
S J Pooley
Other key management
personnel
C A Fernicola (Company
Secretary)
Sub-total non-executive
Directors and other key
management personnel
Executive Directors
P H Hwang - Managing
Director
Totals
2021
Name
Non-executive Directors
C A Fernicola
S J Pooley
Other key management
personnel
C A Fernicola (Company
Secretary)
Sub-total non-executive
Directors and other key
management personnel
Executive Directors
P H Hwang - Managing
Director
Short-term
benefits
Post-
employment
benefits
Share-
based
payments
Cash salary
and fees
$
Superannuation
$
Options
$
48,000
32,752
-
3,275
36,000
-
116,752
3,275
240,000
356,752
Short-term
benefits
Cash salary
and fees
$
24,175
27,450
Post-
employment
benefits
Share-
based
payments
Superannuation
$
Options
$
34,000
26,484
-
2,516
29,000
-
89,484
2,516
223,083
21,193
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
48,000
36,027
36,000
120,027
264,175
384,202
Total
$
34,000
29,000
29,000
92,000
244,276
336,276
Totals
312,567
23,709
8
9
23
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
(h)
Service agreements
Remuneration and other terms of employment of the Managing Director are formalised in an agreement.
The major provisions of the agreement relating to remuneration are set out below.
P H Hwang, Managing Director
• Term of employment agreement – indefinite commencing 22 April 2013.
• Base salary was reviewed in February 2021 and set at $240,000 plus superannuation and is to be
reviewed at least annually by the Board.
• Payment of a termination benefit on early termination by the Company, other than for gross
misconduct, equal to six months remuneration.
• Agreement may be terminated by employee giving six months’ notice in writing.
(i)
Details of share-based compensation and bonuses
There have been no share-based compensation and bonuses affecting remuneration in the current or a
future reporting period.
(j)
Equity instruments held by key management personnel
The tables below show the number of shares and options in the company that were held during the
financial year by key management personnel of the Group, including their close family members and
entities related to them.
Ordinary Shares
Name
P H Hwang
C A Fernicola
S J Pooley
Balance at the
start of the
year
46,796,621
51,999,998
-
Received on
exercising
options
3,899,717
-
-
Net purchased
/ (sold)
(475,644)
-
-
Other changes
-
-
-
Balance at the
end of the year
50,220,694
51,999,998
-
Options Over Unissued Ordinary Shares
Name
P H Hwang
C A Fernicola
S J Pooley
Balance at the
start of the
year
3,899,717
-
-
Options
Exercised
(3,899,717)
-
-
All options are vested and exercisable.
(k)
Loans to key management personnel
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
-
-
-
-
-
-
-
-
-
There were no loans to key management personnel during the financial period.
(l)
Other transactions with key management personnel and/or their related parties
There were no other transactions with key management personnel or their related parties.
End of Remuneration Report
10
24
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
DIRECTORS’ REPORT
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED) – (continued)
SHARES UNDER OPTION
(h)
Service agreements
Remuneration and other terms of employment of the Managing Director are formalised in an agreement.
The major provisions of the agreement relating to remuneration are set out below.
P H Hwang, Managing Director
• Term of employment agreement – indefinite commencing 22 April 2013.
• Base salary was reviewed in February 2021 and set at $240,000 plus superannuation and is to be
reviewed at least annually by the Board.
• Payment of a termination benefit on early termination by the Company, other than for gross
misconduct, equal to six months remuneration.
• Agreement may be terminated by employee giving six months’ notice in writing.
(i)
Details of share-based compensation and bonuses
There have been no share-based compensation and bonuses affecting remuneration in the current or a
future reporting period.
(j)
Equity instruments held by key management personnel
The tables below show the number of shares and options in the company that were held during the
financial year by key management personnel of the Group, including their close family members and
Balance at the
Received on
entities related to them.
Ordinary Shares
Name
P H Hwang
C A Fernicola
S J Pooley
start of the
year
46,796,621
51,999,998
-
-
-
Options Over Unissued Ordinary Shares
Balance at the
start of the
Options
Exercised
year
3,899,717
(3,899,717)
Name
P H Hwang
C A Fernicola
S J Pooley
All options are vested and exercisable.
(k)
Loans to key management personnel
Net purchased
Other changes
Balance at the
exercising
options
3,899,717
/ (sold)
(475,644)
end of the year
50,220,694
51,999,998
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Net purchased
Other changes
Balance at the
/ (sold)
end of the year
There were no loans to key management personnel during the financial period.
(l)
Other transactions with key management personnel and/or their related parties
There were no other transactions with key management personnel or their related parties.
-
-
-
-
10
10,000,000 options were issued during the year with an exercise price of $0.08 and an expiry date of 23
August 2023.
During the year there were 81,645,478 shares issued on the exercise of options granted.
As at the date of this Report, a total of 10,000,000 options are on issue.
INSURANCE OF OFFICERS
During the year the Group paid a premium of $21,080 to insure the Directors and Secretary of the
Company.
The risks insured include pecuniary orders and legal costs that may result from civil or criminal
proceedings that may be brought against the officers in their capacity as officers and any other payments
arising in connection with such proceedings. This does not include such liabilities that arise from conduct
involving a wilful breach of duty by the officers or the improper use by the officers of their position or of
information to gain advantage for themselves or someone else or to cause detriment to the company. It
is not possible to apportion the premium between amounts relating to the insurance against legal costs
and those relating to other liabilities.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to any Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company or to intervene in any proceedings to which the Company is a
party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in or on behalf of the Company with leave of the Court
under section 237 of the Corporations Act 2001.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit duties
where the auditor’s expertise and experience with the Group are important.
Details of amounts paid or payable to the auditor for audit services provided during the year are outlined
in Note 20 to the financial statements. There are no non-audit services provided during the year.
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 12.
AUDITOR
The auditor of the Group is William Buck (Qld).
This Report is made in accordance with a resolution of the Directors.
End of Remuneration Report
CA Fernicola
Chairman
Brisbane, 29th day of September 2022
11
25
ANNUAL REPORT 2022
AUDITOR’S INDEPENDENCE DECLARATION
Superior Resources Limited
Independent auditor’s report to the members
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF SUPERIOR RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Superior Resources Limited (the Company and its
subsidiaries (the Group)), which comprises the consolidated statement of financial position
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022,
as at 30 June 2022, the consolidated statement of profit or loss, consolidated statement of
there have been:
other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
-
no contraventions of the auditor independence requirements as set out in the
statements, including a summary of significant accounting policies and other explanatory
Corporations Act 2001 in relation to the audit; and
information, and the Directors’ declaration.
- no contraventions of any applicable code of professional conduct in relation to the audit.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of
its financial performance for the year ended on that date; and
William Buck (Qld)
complying with Australian Accounting Standards and the Corporations Regulations
(ii)
ABN 21 559 713 106
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group in
J A Latif
accordance with the auditor independence requirements of the Corporations Act 2001 and
Director
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES
110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Brisbane, 29 September 2022
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
42
26
12
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CORPORATE GOVERNANCE
Corporate Governance practices that form the basis of a comprehensive system of control and
accountability for the administration of the Group have been adopted. The Board is committed to
administering the policies and procedures with openness and integrity, pursuing the true spirit of
corporate governance commensurate with the Company’s needs.
The Company has reviewed its corporate governance practices against the Corporate Governance
Principles and Recommendations (4th edition) published by the ASX Corporate Governance Council.
A description of the Company’s current corporate governance practices is set out in the Company’s
corporate governance statement. This statement is available on the Company’s website and can be
viewed at www.superiorresources.com.au.
AUDITOR’S INDEPENDENCE DECLARATION
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF SUPERIOR RESOURCES LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2022,
there have been:
-
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
- no contraventions of any applicable code of professional conduct in relation to the audit.
William Buck (Qld)
ABN 21 559 713 106
J A Latif
Director
Brisbane, 29 September 2022
12
27
13
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2022
Other income
Accounting and audit fees
Administration expenses
Depreciation and amortisation
Office rent and outgoings
Tenement expenditure written-off
Loss before income tax
Income tax (expense) / benefit
Loss after tax for the year from continuing
operations attributable to owners of Superior
Resources Limited
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
Note
8
2022
$
2021
$
-
101,862
(29,037)
(547,468)
(5,355)
(15,427)
-
(26,115)
(527,967)
(3,790)
(15,427)
(98,145)
(597,287)
-
(569,583)
-
(597,287)
(569,583)
Cents
(0.04)
(0.04)
Cents
(0.04)
(0.04)
14
9
25
25
The accompanying notes form part of these financial statements.
14
28
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Other income
Accounting and audit fees
Administration expenses
Depreciation and amortisation
Office rent and outgoings
Tenement expenditure written-off
Loss before income tax
Income tax (expense) / benefit
Loss after tax for the year from continuing
operations attributable to owners of Superior
Resources Limited
Earnings (loss) per share
Basic earnings (loss) per share
Diluted earnings (loss) per share
Note
8
2022
$
2021
$
-
101,862
(26,115)
(527,967)
(3,790)
(15,427)
(98,145)
(29,037)
(547,468)
(5,355)
(15,427)
-
-
(597,287)
(569,583)
-
(597,287)
(569,583)
Cents
(0.04)
(0.04)
Cents
(0.04)
(0.04)
14
9
25
25
Note
2022
$
2021
$
Loss for the year from continuing operations
attributable to owners of Superior Resources Limited
(597,287)
(569,583)
Items that will not be reclassified subsequently to profit or
loss:
Fair value (losses) / gains on financial assets at fair value
through other comprehensive income, net of tax
(6,723)
28,574
Other comprehensive income for the year, net of tax
(6,723)
28,574
Total comprehensive loss for the year, net of tax,
attributable to owners of Superior Resources Limited
(604,010)
(541,009)
The accompanying notes form part of these financial statements.
14
15
29
The accompanying notes form part of these financial statements.
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration expenditure
Other
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
2022
$
2021
$
10
11
12
13
14
15
4,097,824
77,041
33,336
1,715,798
46,798
40,059
4,208,201
1,802,655
10,347
8,888,186
41,500
13,018
6,065,340
33,500
8,940,033
6,111,858
13,148,234
7,914,513
16
661,376
665,857
661,376
665,857
661,376
665,857
12,486,858
7,248,656
17
18
20,588,628
(2,916,147)
(5,185,623)
14,960,308
(3,123,316)
(4,588,336)
12,486,858
7,248,656
The accompanying notes form part of these financial statements.
16
30
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total Current Assets
Non-Current Assets
Plant and equipment
Exploration expenditure
Other
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Payables
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Total Equity
Note
2022
$
2021
$
10
11
12
13
14
15
4,097,824
1,715,798
77,041
33,336
46,798
40,059
4,208,201
1,802,655
10,347
8,888,186
41,500
13,018
6,065,340
33,500
8,940,033
6,111,858
13,148,234
7,914,513
16
661,376
665,857
661,376
665,857
661,376
665,857
12,486,858
7,248,656
17
18
20,588,628
(2,916,147)
(5,185,623)
14,960,308
(3,123,316)
(4,588,336)
12,486,858
7,248,656
The accompanying notes form part of these financial statements.
Contributed
Equity
$
Reserves
$
Accumulated
losses
$
Total
$
Balance at 30 June 2021
14,960,308
(3,123,316)
(4,588,336)
7,248,656
Loss for the year
Other comprehensive income / (loss)
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs
-
-
-
-
(6,723)
(597,287)
-
(597,287)
(6,723)
(6,723)
(597,287)
(604,010)
5,628,320
213,892
-
5,842,212
Balance at 30 June 2022
20,588,628
(2,916,147)
(5,185,623) 12,486,858
Balance at 30 June 2020
12,202,019
(3,210,410)
(4,018,753)
4,972,856
Loss for the year
Other comprehensive income / (loss)
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Contributions of equity, net of
transaction costs
-
-
-
-
28,574
28,574
(569,583)
-
(569,583)
(569,583)
28,574
(541,009)
2,758,289
58,520
-
2,816,809
Balance at 30 June 2021
14,960,308
(3,123,316)
(4,588,336)
7,248,656
16
17
31
The accompanying notes form part of these financial statements.
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Note
2022
$
2021
$
Cash flows from operating activities
Receipts from Government
Payments to suppliers and employees (GST
inclusive)
Interest received
-
101,725
(597,997)
(592,199)
-
137
Net cash outflow from operating activities
24
(597,997)
(490,337)
Cash flows from investing activities
Payments for exploration expenditure
Payments for plant and equipment
Payments of security deposits
Net cash outflow from investing activities
Cash flows from financing activities
Share application moneys (refunded)/received
Proceeds on issue of shares
Payment of capital raising costs
Net cash inflow from financing activities
Net increase in cash held
Cash at beginning of financial year
Cash at the end of financial year
10
(2,849,909)
(2,684)
(8,000)
(2,860,593)
(1,558,254)
(8,426)
(1,000)
(1,567,680)
(1,596)
6,247,962
(405,750)
5,840,616
2,382,026
1,715,798
4,097,824
3,270
2,922,081
(155,597)
2,769,754
711,737
1,004,061
1,715,798
The accompanying notes form part of these financial statements.
18
32
SUPERIOR RESOURCES LIMITED
Note
2022
$
2021
$
Cash flows from operating activities
Receipts from Government
Payments to suppliers and employees (GST
inclusive)
Interest received
Cash flows from investing activities
Payments for exploration expenditure
Payments for plant and equipment
Payments of security deposits
Net cash outflow from investing activities
Cash flows from financing activities
Share application moneys (refunded)/received
Proceeds on issue of shares
Payment of capital raising costs
Net cash inflow from financing activities
Net increase in cash held
Cash at beginning of financial year
Cash at the end of financial year
10
(597,997)
(592,199)
-
-
101,725
137
(2,849,909)
(1,558,254)
(2,684)
(8,000)
(8,426)
(1,000)
(2,860,593)
(1,567,680)
(1,596)
6,247,962
(405,750)
5,840,616
2,382,026
1,715,798
4,097,824
3,270
2,922,081
(155,597)
2,769,754
711,737
1,004,061
1,715,798
The accompanying notes form part of these financial statements.
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Net cash outflow from operating activities
24
(597,997)
(490,337)
The financial statements are for the Group consisting of Superior Resources Limited and its subsidiaries
(the consolidated entity or the Group).
1. General Information
Superior Resources Limited (Company) is a company limited by shares, incorporated, and domiciled in
Australia. The Company’s shares are listed on the Australian Securities Exchange.
The registered office and principal place of business of the Company is:
Unit 8, 61 Holdsworth Street
Coorparoo QLD 4151
Ph 07 3847 2887
2. Significant Accounting Policies
(a)
Statement of compliance
These financial statements are general purpose financial statements which have been prepared in
accordance with the Corporations Act 2001, Australian Accounting Standards and Interpretations of the
Australian Accounting Standard Board and in compliance with International Financial Reporting
Standards (‘IFRS’) as issued by the International Accounting Standards Board. The Group is a for-profit
entity for financial reporting purposes under Australian Accounting Standards. Material accounting
policies adopted in the preparation of these financial statements are presented below and have been
consistently applied unless stated otherwise.
The financial statements were authorised for issue by the Directors on 29 September 2022.
(b)
Basis of preparation
Except for cash flow information, the financial statements have been prepared on an accrual basis and
are based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and financial liabilities.
(c)
Principles of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent
(Superior Resources Limited) and all of the subsidiaries (including any structured entities). 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 or controlled operations is provided in Note 26.
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.
The acquisition method of accounting is used to account for business combinations by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the
consolidated statement of profit or loss, statement of other comprehensive income, statement of changes
in equity and statement of financial position, respectively.
18
19
33
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
(d)
Revenue recognition
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for the goods or
services. Revenue is recognised when the performance obligations of a contract are satisfied.
Interest revenue is recognised using the effective interest rate method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
All revenue is stated net of the amount of goods and services tax (GST).
Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. Government grants are
recognised when there are reasonable assurance that the funding conditions will be complied and the
grants will be received.
(e)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the reporting date and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current
tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the assets and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
(f)
Cash and cash equivalents
For the consolidated statement of cash flows presentation purposes, cash and cash equivalents includes
cash on hand and deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
20
34
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
2. Significant Accounting Policies (continued)
(d)
Revenue recognition
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount
that reflects the consideration to which the entity expects to be entitled in exchange for the goods or
services. Revenue is recognised when the performance obligations of a contract are satisfied.
Interest revenue is recognised using the effective interest rate method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue is recognised when it is received or when the right to receive payment is established.
All revenue is stated net of the amount of goods and services tax (GST).
Government grants relating to costs are deferred and recognised in profit or loss over the period
necessary to match them with the costs that they are intended to compensate. Government grants are
recognised when there are reasonable assurance that the funding conditions will be complied and the
Government grants
grants will be received.
(e)
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects
neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted by the reporting date and are expected to apply
when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it
is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current
tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the assets and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised
in other comprehensive income or directly in equity, respectively.
(f)
Cash and cash equivalents
For the consolidated statement of cash flows presentation purposes, cash and cash equivalents includes
cash on hand and deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
(g)
Financial instruments
Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument. Financial assets will be recognised on the date that
the Group becomes contractually bound to the relevant asset purchase or sale transaction (i.e. trade
date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction
costs, except where the instrument is classified "at fair value through profit or loss", in which case
transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active
market are used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a
significant financing component or if the practical expedient was applied as specified in paragraph 63 of
AASB 15: Revenue from Contracts with Customers.
Classification and Subsequent Measurement
Financial assets
Financial assets are subsequently measured at:
• amortised cost;
•
•
fair value through other comprehensive income; or
fair value through profit and loss.
Measurement is on the basis of the two primary criteria, being:
•
•
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset that meets the following conditions is subsequently measured at amortised cost:
•
•
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
•
•
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates; and
the business model for managing the financial assets comprises both contractual cash flows
collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and
fair value through other comprehensive income are subsequently measured at fair value through profit
or loss.
20
21
35
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
Financial liabilities
Financial liabilities are subsequently measured at:
• amortised cost; or
•
fair value through profit and loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
• a contingent consideration of an acquirer in a business combination to which AASB 3 Business
Combinations applies;
• held for trading; or
•
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest
method.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent
consideration recognised by an acquirer in a business combination to which AASB 3 Business
Combinations applies, the Group made an irrevocable election to measure any subsequent changes in
fair value of the equity instruments in other comprehensive income, while the dividend revenue received
on underlying equity instruments investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement
date in accordance with the Group’s accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from
the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially
modified terms or a substantial modification to the terms of a financial liability, is treated as an
extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit
or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the
asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for derecognition of financial assets:
the right to receive cash flows from the asset has expired or been transferred;
•
• all risk and rewards of ownership of the asset have been substantially transferred; and
•
the Group no longer controls the asset (i.e. no practical ability to make unilateral decision to sell
the asset to a third party).
22
36
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
Financial liabilities
Financial liabilities are subsequently measured at:
• amortised cost; or
•
fair value through profit and loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
• a contingent consideration of an acquirer in a business combination to which AASB 3 Business
Combinations applies;
• held for trading; or
•
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest
method.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent
consideration recognised by an acquirer in a business combination to which AASB 3 Business
Combinations applies, the Group made an irrevocable election to measure any subsequent changes in
fair value of the equity instruments in other comprehensive income, while the dividend revenue received
on underlying equity instruments investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement
date in accordance with the Group’s accounting policy.
Derecognition refers to the removal of a previously recognised financial asset or financial liability from
Derecognition
the statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e. when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially
modified terms or a substantial modification to the terms of a financial liability, is treated as an
extinguishment of the existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit
or loss.
Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the
asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All the following criteria need to be satisfied for derecognition of financial assets:
•
•
the right to receive cash flows from the asset has expired or been transferred;
• all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (i.e. no practical ability to make unilateral decision to sell
the asset to a third party).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
Impairment
The Group recognises a loss allowance for expected credit losses on:
•
•
•
•
•
financial assets that are measured at amortised cost or fair value through other comprehensive
income;
lease receivables;
contract assets (e.g. amount due from customers under construction contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
financial assets measured at fair value through profit or loss; or
•
• equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a
financial instrument. A credit loss is the difference between all contractual cash flows that are due and
all cash flows expected to be received, all discounted at the original effective interest rate of the financial
instrument.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain
or loss in the statement of profit or loss.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating
to that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with
changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit
risk are transferred from other comprehensive income to profit or loss at every reporting period.
For financial assets that are unrecognised (e.g. loan commitments yet to be drawn, financial guarantees),
a provision for loss allowance is created in the statement of financial position to recognise the loss
allowance.
(h)
Plant and equipment
Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values,
over their estimated useful lives, as follows:
Equipment / Software:
3 – 5 years
The asset’s residual values and useful lives are reviewed and adjusted if appropriate at each balance
date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in the consolidated statement of profit or loss. When revalued assets are sold, it is the Group
policy to transfer the amounts included in other reserves in respect of those assets to retained earnings.
(i)
Trade and other payables
These amounts represent liabilities for goods and services provided to the company prior to the end of
the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of
recognition.
22
23
37
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
(j)
Exploration expenditure
Expenditure is accumulated separately for each area of interest until such time as the area is abandoned
or sold. The realisation of the value of the expenditure carried forward depends on any commercial
results that may be obtained through successful development and exploitation of the area of interest or
alternatively by its sale. If an area of interest is abandoned or is considered to be of no further commercial
interest the accumulated exploration costs relating to the area are written off against income in the year
of abandonment. Some exploration expenditure may also be written off where areas of interest are partly
relinquished and in cases where uncertainty exists as to the value, provisions for possible diminution in
value are established.
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
capitalise costs in relation to that area.
(k)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(l)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the financial year but not distributed at balance
date.
(m)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the
Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
24
38
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
(j)
Exploration expenditure
Expenditure is accumulated separately for each area of interest until such time as the area is abandoned
or sold. The realisation of the value of the expenditure carried forward depends on any commercial
results that may be obtained through successful development and exploitation of the area of interest or
alternatively by its sale. If an area of interest is abandoned or is considered to be of no further commercial
interest the accumulated exploration costs relating to the area are written off against income in the year
of abandonment. Some exploration expenditure may also be written off where areas of interest are partly
relinquished and in cases where uncertainty exists as to the value, provisions for possible diminution in
value are established.
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
capitalise costs in relation to that area.
(k)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer
at the discretion of the entity, on or before the end of the financial year but not distributed at balance
(l)
Dividends
date.
(m)
Earnings per share
Basic earnings per share
shares issued during the year.
Diluted earnings per share
Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the
Group, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for
no consideration in relation to dilutive potential ordinary shares.
2. Significant Accounting Policies (continued)
(n)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the taxation authority is included with other receivables
or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are presented as
operating cash flows.
(o)
Employee benefits
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick
leave, which are expected to be settled within 12 months after the end of the period in which the
employees render the related services, are recognised in respect of employees’ services up to the end
of the reporting period and are measured at the amounts expected to be paid when the liabilities are
settled. The liability for annual leave is recognised in the provision for employee entitlements. All other
short-term employee benefit obligations are presented as payables.
Other long-term employee benefit obligations
The liability for long service leave and annual leave which is not expected to be settled within 12 months
after the end of the period in which the employees render the related services, is recognised in the
provision for employee benefits and measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period. Consideration
is given to expected future wage and salary levels, employee departures and periods of service.
Expected future payments are discounted using market yields at the end of the reporting period on
government bonds with terms and currencies that match, as closely as possible, the estimated future
cash outflows.
The obligations are presented as current liabilities in the statement of financial position if the entity does
not have an unconditional right to defer settlement for at least twelve months after the reporting date,
regardless of when the actual settlement is expected to occur.
(p)
Parent entity financial information
The financial information for the parent entity, Superior Resources Limited, disclosed in note 28 has been
prepared on the same basis as the consolidated financial statements.
(q)
Comparative Figures
When required by Australian Accounting Standards, comparative figures have been adjusted to conform
to changes in presentation for the current financial year.
Where the Group retrospectively applies an accounting policy, makes a retrospective restatement or
reclassifies items in its financial statements, an additional (third) statement of financial position as at
the beginning of the preceding period in addition to the minimum comparative financial statements is
presented.
24
25
39
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
(r) 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 (i.e. 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 (i.e. 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 (i.e. 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.
(s)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that a non-
financial asset may be impaired. The assessment will include the consideration of external and internal
sources of information including dividends received from subsidiaries, associates or joint ventures
deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out
on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value
less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying
amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried
at a revalued amount in accordance with another Standard (for example in accordance with the
revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued
asset is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible
assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is treated as a revaluation increase.
26
40
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
2. Significant Accounting Policies (continued)
(r) 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 (i.e. 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 (i.e. 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 (i.e. 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.
(s)
Impairment of Assets
At the end of each reporting period, the Group assesses whether there is any indication that a non-
financial asset may be impaired. The assessment will include the consideration of external and internal
sources of information including dividends received from subsidiaries, associates or joint ventures
deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out
on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value
less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying
amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried
at a revalued amount in accordance with another Standard (for example in accordance with the
revaluation model in AASB 116: Property, Plant and Equipment). Any impairment loss of a revalued
asset is treated as a revaluation decrease in accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible
assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is treated as a revaluation increase.
2. Significant Accounting Policies (continued)
(t)
Coronavirus (Covid19)
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the Group based on known information. This consideration extends to the
nature of the activities of the group including mineral exploration, capital raising, staffing and geographic
regions in which the consolidated entity operates. Other than as addressed in specific notes, there does
not currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the Group unfavourably as at the
reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
3. New and Amended Accounting Standards
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
adopted.
There are no other standards that are not yet effective and that are expected to have a material impact
on the consolidated entity in the current or future reporting periods and on foreseeable future
transactions.
4. Financial Risk Management
The Group’s overall risk management plan seeks to minimise potential risks resulting from the
unpredictability of financial markets.
The Group does not actively engage in the trading of financial assets for speculative purposes nor does
it write options. The most significant financial risks to which the Group are exposed are credit risk,
liquidity risk, market risk and cash flow interest rate risk.
The Group holds the following financial assets and liabilities:
Financial assets
Cash and cash equivalents (Note 10)
Other receivables (Note 11)
Financial assets at fair value through other comprehensive
income (Note 12)
Financial liabilities
Trade and other payables (Note 16)
2022
$
2021
$
4,097,824
30,653
33,336
4,161,813
1,715,798
15,398
40,059
1,771,255
489,878
489,878
574,702
574,702
Risk management is carried out by the Group’s finance function under policies and objectives which have
been approved by the Board of Directors. The Managing Director has been delegated the authority for
designing and implementing processes which follow the objectives and policies.
The Board receives monthly reports which provide details of the effectiveness of the processes and
policies in place.
26
27
41
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
4. Financial Risk Management (continued)
(a)
Credit risk
Credit risk is the risk of loss from a counterparty failing to meet its financial obligations to the Group.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets is the carrying amount of those assets, net of any allowance for
expected credit loss, as disclosed in the consolidated statement of financial position and notes to the
financial statements.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. For
bank and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available).
Trade and other receivables
2022
$
30,653
30,653
2021
$
15,398
15,398
Other than cash and cash equivalents, the most significant financial assets are trade and other
receivables. The Group does not have any material credit risk exposure to any single debtor or Group
of debtors under financial instruments entered into by the Group. There were no past due debts at
balance date requiring consideration of impairment provisions.
(b)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
obligations when due.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows. No finance
facilities were available to the Group at the end of the reporting period.
Maturities of financial liabilities
The table below analyses the Group’s financial liabilities into relevant maturity groupings.
Contractual maturities of
financial liabilities
At 30 June 2022
Within
1 year
$
Trade and other payables
489,878
489,878
At 30 June 2021
Trade and other payables
574,702
574,702
Between
1 and 2
years
Between
2 and 5
years
Over 5
years
Total
contractual
cash flows
Carrying
amount
$
-
-
-
-
$
-
-
-
-
$
$
489,878
489,878
489,878
489,878
574,702
574,702
574,702
574,702
$
-
-
-
-
28
42
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
4. Financial Risk Management (continued)
(c)
Market risk
The Group is exposed to equity securities price risk. This arises from securities investments held by the
Group in Deep Yellow Limited and classified on the statement of financial position as financial assets.
The Group is not exposed to any commodity price risk.
The table below summaries the impact of increases and decreases in the Deep Yellow Limited share
price on the Group’s total comprehensive income and loss for the year and on equity. The analysis is
based on the assumption that the share price had increased or decreased by 25% (2021: 25%) from
balance date fair value with all other variables held constant.
Impact on post-tax loss
2021
$
2022
$
Impact on reserves
2022
$
2021
$
+25%
-25%
+25%
-25%
+25%
-25%
+25%
-25%
-
-
-
-
8,334
(8,334)
10,015
(10,015)
Investment in
Deep Yellow
Limited
(d)
Cash flow and fair value interest rate risk
As the Group has no significant interest-bearing assets or borrowings, the Group’s income and operating
cash flows are not materially exposed to changes in market interest rates.
(e)
Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and
measurement or for disclosure purposes. The net fair value of financial assets and financial liabilities
approximates the respective carrying values as disclosed in the consolidated statement of financial
position and the notes to the financial statements.
Maturities of financial liabilities
5. Critical Accounting Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the entity and that
are believed to be reasonable under the circumstances.
Critical judgements in applying the entity’s accounting policies
The Group has capitalised non-current exploration expenditure of $8,888,186 (2021: $6,065,340).
This amount includes costs directly associated with exploration. These costs are capitalised as an
intangible asset until assessment of the permit is complete and the results have been evaluated. These
costs include employee remuneration, materials, drilling costs, delay costs, rental payments and
payments to contractors. The expenditure is carried forward until such a time as the asset moves into
the development phase, is abandoned or sold. Given exploration activities have not yet reached a stage
which permits a reasonable assessment of the existence or otherwise of recoverable resources and the
difficulty in forecasting cash flows to assess the fair value of exploration expenditure, there is uncertainty
as to the carrying value of exploration expenditure. The ultimate recovery of the carrying value of
exploration expenditure is dependent upon the successful development and commercial exploitation or,
alternatively, sale of the Group’s interest in the tenements.
29
43
4. Financial Risk Management (continued)
(a)
Credit risk
Credit risk is the risk of loss from a counterparty failing to meet its financial obligations to the Group.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets is the carrying amount of those assets, net of any allowance for
expected credit loss, as disclosed in the consolidated statement of financial position and notes to the
financial statements.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions. For
bank and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available).
2022
$
30,653
30,653
2021
$
15,398
15,398
Trade and other receivables
Other than cash and cash equivalents, the most significant financial assets are trade and other
receivables. The Group does not have any material credit risk exposure to any single debtor or Group
of debtors under financial instruments entered into by the Group. There were no past due debts at
balance date requiring consideration of impairment provisions.
(b)
Liquidity risk
obligations when due.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows. No finance
facilities were available to the Group at the end of the reporting period.
The table below analyses the Group’s financial liabilities into relevant maturity groupings.
Contractual maturities of
financial liabilities
Within
1 year
1 and 2
years
2 and 5
Over 5
contractual
Carrying
years
years
cash flows
amount
Between
Between
Total
At 30 June 2022
$
Trade and other payables
489,878
At 30 June 2021
Trade and other payables
574,702
489,878
574,702
$
-
-
-
-
$
-
-
-
-
$
$
489,878
489,878
489,878
489,878
574,702
574,702
574,702
574,702
$
-
-
-
-
28
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
6. Going Concern Principle
Notwithstanding that the Group incurred an operating loss after tax of $597,287 (2021: loss of $569,583)
and a net cash outflow from operating activities of $597,997 (2021: $490,337) these financial statements
have been prepared on a going concern basis which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business for the
foreseeable future.
Based on the existing cash reserve and forecast expenditure, the Directors consider that the Group will
be able to continue as a going concern and will be able to pay its debts as and when they fall due and
payable.
7. Segment Information
The Group operates solely within one segment, being the mineral exploration industry in Australia.
8. Other Income
Interest
Government grants – Covid:
Jobkeeper
Cash flow boost
2022
$
-
-
-
-
2021
$
137
55,800
45,925
101,862
9. Income Tax
(a) Numerical reconciliation of income tax expense / (benefit)
to prima facie tax payable:
Profit (loss) from continuing operations before income
tax expense
Tax at the Australian tax rate of 30% (2021: 26%)
Tax effect of permanent differences
Temporary differences not recognised
Income tax expense / (benefit)
(b) Tax losses
(597,287)
(569,583)
(179,186)
-
(148,091)
(5,318)
179,186
-
153,409
-
Unused tax losses for which no deferred tax asset has been
recognised
Potential tax benefit @ 30% (2021: 26%)
18,316,051
5,494,815
14,771,759
3,840,657
(c) Franking credits
Franking credits available for use in subsequent
financial year
251,146
251,146
30
44
SUPERIOR RESOURCES LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
6. Going Concern Principle
Notwithstanding that the Group incurred an operating loss after tax of $597,287 (2021: loss of $569,583)
and a net cash outflow from operating activities of $597,997 (2021: $490,337) these financial statements
have been prepared on a going concern basis which assumes continuity of normal business activities
and the realisation of assets and the settlement of liabilities in the ordinary course of business for the
Based on the existing cash reserve and forecast expenditure, the Directors consider that the Group will
be able to continue as a going concern and will be able to pay its debts as and when they fall due and
foreseeable future.
payable.
7. Segment Information
8. Other Income
The Group operates solely within one segment, being the mineral exploration industry in Australia.
Interest
Government grants – Covid:
Jobkeeper
Cash flow boost
9. Income Tax
(a) Numerical reconciliation of income tax expense / (benefit)
to prima facie tax payable:
Profit (loss) from continuing operations before income
tax expense
Tax at the Australian tax rate of 30% (2021: 26%)
Tax effect of permanent differences
Temporary differences not recognised
Income tax expense / (benefit)
(b) Tax losses
recognised
Unused tax losses for which no deferred tax asset has been
Potential tax benefit @ 30% (2021: 26%)
(c) Franking credits
Franking credits available for use in subsequent
financial year
2022
$
-
-
-
-
2021
$
137
55,800
45,925
101,862
(597,287)
(569,583)
(179,186)
(148,091)
-
(5,318)
179,186
-
153,409
-
18,316,051
14,771,759
5,494,815
3,840,657
251,146
251,146
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
10. Cash and Cash Equivalents
Cash at bank and on hand
11. Trade and Other Receivables
CURRENT
Other receivables
Prepayments
12. Financial Assets
CURRENT
Deep Yellow Limited1
Investments in listed equity securities designated at fair value through
other comprehensive income
Total financial assets
1 Listed equity securities
2022
$
2021
$
4,097,824
1,715,798
30,653
46,388
77,041
15,398
31,400
46,798
33,336
40,059
33,336
40,059
The investment in listed equity securities are stated at fair value. AASB 13 Fair Value Measurement requires disclosure
of fair value measurements by the level of the following fair value measurement hierarchy:
1) Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
2) Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability.
3) Level 3 – Inputs for the asset or liability that are not based on observable market data.
The listed equity securities are traded in an active market, being the Australian Securities Exchange, and consequently
they are measured as a Level 1 instrument on the fair value hierarchy. The quoted market price, used to determine the
value of these securities, is the bid price at balance date.
13. Plant and Equipment
NON-CURRENT
Equipment / software – at cost
Accumulated depreciation
Movement in Plant and Equipment
Opening net book amount
Additions
Depreciation charge
Closing net book amount
2022
$
97,850
(87,503)
10,347
13,018
2,684
(5,355)
10,347
2021
$
95,167
(82,149)
13,018
8,382
8,426
(3,790)
13,018
30
31
45
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
14. Exploration Expenditure
Exploration phase property costs
Deferred geological, geophysical, drilling and other expenditure –
at cost
Non-current
Total capitalised exploration expenditure
The capitalised exploration expenditure carried forward above has
been determined as follows:
Opening balance
Expenditure incurred during the year
Tenement expenditure written-off
Closing balance
* Tenement written off due to surrender of the tenement right.
2022
$
2021
$
8,888,186
8,888,186
6,065,340
6,065,340
6,065,340
2,822,846
-
8,888,186
4,457,027
1,706,458
(98,145)*
6,065,340
15. Non-Current Assets – Other
Security deposits
41,500
33,500
16. Payables
Current liabilities
Trade payables and accrued expenses
Other payables – related party (i)
Trade and other payables
Other payables – ATO
Share application monies
Employee entitlements
Total Payables
235,294
254,584
489,878
23,585
1,674
146,239
661,376
262,357
312,345
574,702
10,688
3,270
77,197
665,857
(i) These amounts represent the unpaid Directors’ remuneration that may be called within the next 12
months. The liability is unsecured, and no decision has been made by the Directors on the timing or
nature of the consideration to be provided in settlement.
32
46
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
14. Exploration Expenditure
17. Contributed Equity
Exploration phase property costs
Deferred geological, geophysical, drilling and other expenditure –
at cost
Non-current
Total capitalised exploration expenditure
The capitalised exploration expenditure carried forward above has
been determined as follows:
Opening balance
Expenditure incurred during the year
Tenement expenditure written-off
Closing balance
* Tenement written off due to surrender of the tenement right.
2022
$
2021
$
8,888,186
8,888,186
6,065,340
6,065,340
6,065,340
2,822,846
-
8,888,186
4,457,027
1,706,458
(98,145)*
6,065,340
Security deposits
41,500
33,500
15. Non-Current Assets – Other
16. Payables
Current liabilities
Trade payables and accrued expenses
Other payables – related party (i)
Trade and other payables
Other payables – ATO
Share application monies
Employee entitlements
Total Payables
235,294
254,584
489,878
23,585
1,674
146,239
661,376
262,357
312,345
574,702
10,688
3,270
77,197
665,857
(i) These amounts represent the unpaid Directors’ remuneration that may be called within the next 12
months. The liability is unsecured, and no decision has been made by the Directors on the timing or
nature of the consideration to be provided in settlement.
1,701,220,418 (2021: 1,381,335,791) ordinary shares fully paid
20,588,628
14,960,308
(a)
Movements in ordinary share capital
2022
$
2021
$
Date
30 June 2020
9 July 2020
14 July 2020
Details
Shares issued
Shares issued
13 October 2020
Options exercised
6 November 2020 Options exercised
6 November 2020
15 December 2020
17 December 2020
18 December 2020
19 December 2020
22 December 2020
23 December 2020
19 March 2021
30 June 2021
16 September 2021
16 September 2021
11 November 2021
8 December 2021
20 December 2021
14 January 2022
20 January 2022
8 February 2022
8 February 2022
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Shares issued
Options exercised
Options exercised
Share issue cost
Options exercised
Shares issued
Options exercised
Options exercised
Options exercised
Options exercised
Options exercised
Options exercised
Shares issued
Share issue costs
– options to lead
manager
Share issue costs
Number of shares
Issue price
$
1,016,614,718
33,087,190
89,089,451
19,217,713
27,895,010
5,000,000
800,000
3,000,000
22,840,000
80,000,000
71,200,000
8,329,476
4,262,233
1,381,335,791
1,699,088
119,818,096
35,224,166
15,305,430
23,492,602
5,725,583
143,054
55,555
118,421,053
0.003
0.003
0.006
0.006
0.005
0.0125
0.0125
0.0125
0.0125
0.0125
0.006
0.006
0.006
0.0105
0.006
0.006
0.006
0.006
0.006
0.006
0.0380
30 June 2022
1,701,220,418
$
12,202,019
99,262
267,268
114,956
167,370
25,000
10,000
37,500
285,500
1,000,000
890,000
49,977
25,573
(214,117)
14,960,308
10,194
1,258,090
211,345
91,833
140,956
34,353
858
333
4,500,000
(213,892)
(405,750)
20,588,628
(b)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting, in person or by proxy, is
entitled to one vote and upon a poll, each share is entitled to one vote.
32
33
47
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
17. Contributed Equity (continued)
(c)
Share options
Date
Details
Balance
At 30 June 2020
Options issued
9 July 2020
Options issued
9 July 2020
Options issued
9 July 2020
Options issued
14 July 2020
Options exercised
13 October 2020
Options exercised
6 November 2020
23 December 2020 Options exercised
Options exercised
19 March 2021
At 30 June 2021
Balance
16 September 2021 Options exercised
11 November 2021 Options exercised
8 December 2021
Options exercised
20 December 2021 Options exercised
Options exercised
14 January 2022
Options exercised
20 January 2022
Unlisted options
issued
Options exercised
Options expired
Balance
7 February 2022
8 February 2022
14 April 2022
At 30 June 2022
Number of
options
53,127,663
15,000,000a
37,270,937
11,029,063
29,696,452
(19,217,713)
(27,895,010)
(8,329,476)
(4,262,233)
86,419,683
(1,699,088)
(35,224,166)
(15,305,430)
(23,492,602)
(5,725,583)
(143,054)
10,000,000b
(55,555)
(4,774,205)
10,000,000
Weighted Average
Exercise Price
$
Expiry
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.080
0.006
0.006
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
23-Aug-23
31-Dec-21
31-Dec-21
a The lead manager to the share placement and rights issue undertaken in June 2020 received 15 million
options (during the year), having the same terms as options issued under the placement and rights issue
at no consideration. The total value for the options granted is $58,520.
b The lead manager to the share placement undertaken in February 2022 received 10 million options
(during the year). The total value for the options granted is $213,892.
(d)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it can continue to provide returns for shareholders, benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital.
The capital structure of the Group includes cash and cash equivalents, equity attributable to equity
holders comprising of contributed equity, reserves, and accumulated losses. To maintain or adjust the
capital structure, the Group may issue new shares, sell assets to reduce debt or adjust the level of
activities undertaken by the Group.
The Group monitors capital based on cash flow requirements for corporate overheads, exploration and
evaluation expenditure. The Group’s exposure to borrowings as at 30 June 2022 totals $nil (2021: $nil).
The Group will continue to access capital markets and joint venture arrangements to satisfy anticipated
funding requirements.
The Group’s strategy to capital risk management is unchanged from prior years.
34
48
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
18. Reserves
Financial assets revaluation reserve
Share-based payment reserve
Total reserve
At beginning of year
Revaluation increment / (decrement)
Share-based payments
At end of year
19. Key Management Personnel Disclosures
(a)
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
2022
$
(3,188,559)
272,412
(2,916,147)
(3,123, 316)
(6,723)
213,892
(2,916,147)
2021
$
(3,181,836)
58,520
(3,123,316)
(3,210,410)
28,574
58,520
(3,123,316)
2022
$
356,752
27,450
384,202
2021
$
312,567
23,709
336,276
Detailed remuneration disclosures are provided in the remuneration report on pages 8 to 11.
At 30 June 2022, $254,584 (2021: $312,345) remains payable.
(b)
Equity instrument disclosures relating to key management personnel
(i)
Options provided as remuneration and shares issued on exercise of such options
There have been no options granted affecting remuneration in the current or a future reporting period.
(ii)
Option holdings
The numbers of options over ordinary shares in the Company held during the financial year by each
Director of the Company and other key management personnel of the Group, including their related
parties, is set out below.
Balance at the
start of the
year
Options
Exercised
Name
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
17. Contributed Equity (continued)
(c)
Share options
Date
Details
At 30 June 2020
Balance
9 July 2020
9 July 2020
9 July 2020
14 July 2020
Options issued
Options issued
Options issued
Options issued
13 October 2020
6 November 2020
Options exercised
Options exercised
23 December 2020 Options exercised
19 March 2021
Options exercised
At 30 June 2021
Balance
16 September 2021 Options exercised
11 November 2021 Options exercised
8 December 2021
Options exercised
20 December 2021 Options exercised
14 January 2022
20 January 2022
7 February 2022
8 February 2022
14 April 2022
Options exercised
Options exercised
Unlisted options
issued
Options exercised
Options expired
At 30 June 2022
Balance
Number of
options
53,127,663
15,000,000a
37,270,937
11,029,063
29,696,452
(19,217,713)
(27,895,010)
(8,329,476)
(4,262,233)
86,419,683
(1,699,088)
(35,224,166)
(15,305,430)
(23,492,602)
(5,725,583)
(143,054)
10,000,000b
(55,555)
(4,774,205)
10,000,000
Weighted Average
Exercise Price
Expiry
$
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.006
0.080
0.006
0.006
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
31-Dec-21
23-Aug-23
31-Dec-21
31-Dec-21
a The lead manager to the share placement and rights issue undertaken in June 2020 received 15 million
options (during the year), having the same terms as options issued under the placement and rights issue
at no consideration. The total value for the options granted is $58,520.
b The lead manager to the share placement undertaken in February 2022 received 10 million options
(during the year). The total value for the options granted is $213,892.
(d)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it can continue to provide returns for shareholders, benefits for other stakeholders and to maintain
an optimal capital structure to reduce the cost of capital.
The capital structure of the Group includes cash and cash equivalents, equity attributable to equity
holders comprising of contributed equity, reserves, and accumulated losses. To maintain or adjust the
capital structure, the Group may issue new shares, sell assets to reduce debt or adjust the level of
activities undertaken by the Group.
The Group monitors capital based on cash flow requirements for corporate overheads, exploration and
evaluation expenditure. The Group’s exposure to borrowings as at 30 June 2022 totals $nil (2021: $nil).
The Group will continue to access capital markets and joint venture arrangements to satisfy anticipated
funding requirements.
The Group’s strategy to capital risk management is unchanged from prior years.
All options have vested and are exercised on or before 31 December 2021.
34
35
49
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
-
-
-
-
-
-
-
-
-
(3,899,717)
-
-
3,899,717
-
-
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
19. Key Management Personnel Disclosures (continued)
(iii)
Share holdings
The number of ordinary shares in the company held during the financial year by each Director of Superior
Resources Limited and other key management personnel of the Group, including their personally related
parties, is set out below.
2022
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
46,796,621
51,999,998
-
3,899,717
-
-
2021
Balance at the
start of the
year
Received on
exercising
options
Name
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
46,796,621
48,000,001
1,250,000
-
3,999,997
-
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
(475,644)
-
-
-
-
-
50,220,694
51,999,998
-
Net purchased
/ (sold)
Other changes
Balance at the
end of the year
-
-
(1,250,000)
-
-
-
46,796,621
51,999,998
-
20. Remuneration of Auditors
During the year, the following fees were paid or payable for
services provided by the auditor, its related practices and non-
related audit firms:
William Buck (Qld)
Review of financial report
Audit of financial report
21. Contingencies
2022
$
2021
$
5,000
15,000
20,000
5,000
15,000
20,000
There are no contingent liabilities affecting the Group as at the date of this Report (2021: nil).
22. Commitments
(a)
Exploration commitments
To maintain current rights to tenure of various exploration and mining tenements, the Group is required
to outlay amounts in respect of tenement rent to the relevant governing authorities and to meet certain
annual exploration expenditure commitments. These outlays (exploration expenditure and rent), which
arise in relation to granted tenements are as follows:
36
50
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
19. Key Management Personnel Disclosures (continued)
(iii)
Share holdings
parties, is set out below.
The number of ordinary shares in the company held during the financial year by each Director of Superior
Resources Limited and other key management personnel of the Group, including their personally related
2022
Name
Balance at the
Received on
start of the
year
exercising
options
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
46,796,621
51,999,998
-
-
-
3,899,717
(475,644)
2021
Name
Balance at the
Received on
start of the
year
exercising
options
/ (sold)
Directors of Superior Resources Limited
P H Hwang
C A Fernicola
S J Pooley
46,796,621
48,000,001
1,250,000
3,999,997
-
-
(1,250,000)
-
-
-
-
20. Remuneration of Auditors
During the year, the following fees were paid or payable for
services provided by the auditor, its related practices and non-
related audit firms:
Net purchased
Other changes
Balance at the
/ (sold)
end of the year
Net purchased
Other changes
Balance at the
-
-
-
50,220,694
51,999,998
-
end of the year
-
-
-
46,796,621
51,999,998
-
2022
$
2021
$
5,000
15,000
20,000
5,000
15,000
20,000
William Buck (Qld)
Review of financial report
Audit of financial report
21. Contingencies
22. Commitments
There are no contingent liabilities affecting the Group as at the date of this Report (2021: nil).
(a)
Exploration commitments
To maintain current rights to tenure of various exploration and mining tenements, the Group is required
to outlay amounts in respect of tenement rent to the relevant governing authorities and to meet certain
annual exploration expenditure commitments. These outlays (exploration expenditure and rent), which
arise in relation to granted tenements are as follows:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
22. Commitments (continued)
Exploration expenditure commitments
Commitments for payments under exploration permits for minerals
in existence at the reporting date but not recognised as liabilities
payable is as follows:
Payable within one year
Payable between one and five years
2022
$
2021
$
1,739,603
6,792,626
8,532,229
1,360,705
7,437,694
8,798,399
Outlays expressed as “Exploration Expenditure Commitments” may be varied from time to time, subject
to approval of the relevant government departments, and may be relieved if a tenement is relinquished
or certain contractual arrangements are entered into with third parties (e.g. a farm-in or joint venture
arrangement). Cash security bonds totalling $41,500 (2021: $33,500) are currently held by the relevant
governing authorities to ensure compliance with granted tenement conditions.
23. Events Occurring After Balance Date
Apart from other matters already stated, no matters or circumstances have arisen since 30 June 2022
that have significantly affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years, or
the results of those operations in future financial years, or
the Group’s state of affairs in future financial years.
24. Reconciliation of Loss After Income Tax to Net Cash Flows From Operating Activities
2022
$
2021
$
Loss for the year after income tax
(597,287)
(569,583)
Depreciation and amortisation
Tenement expenditure written off
Changes in operating assets and liabilities:
(Increase)/decrease in trade and other receivables
(Increase) / decrease in prepayments
Increase/(decrease) in trade payables
Increase/(decrease) in other payables
Increase/(decrease) in employee entitlements
5,355
-
3,790
98,145
(15,255)
(14,988)
-
(44,864)
69,042
(4,627)
(5,320)
-
(31,383)
18,642
Net cash outflow from operating activities
(597,997)
(490,337)
36
37
51
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
25. Earnings (loss) Per Share
(a) Basic earnings (loss) per share
2022
Cents
2021
Cents
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.04)
(b) Diluted earnings (loss) per share
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.04)
2022
$
2021
$
(c) Reconciliations of earnings (loss) used in calculating
earnings per share
Basic earnings (loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating basic earnings per share
(597,287)
(569,583)
Diluted earnings(loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating diluted earnings per share
(597,287)
(569,583)
2022
Number
2021
Number
(d) Weighted average number of shares used as the
denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings (loss) per share
Adjustments for calculation of diluted earnings (loss) per share:
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings (loss) per share
1,568,864,514
1,268,571,172
-
-
1,568,864,514
1,268,571,172
Unissued ordinary shares under option are not included in the calculation of diluted earnings per share
because they are antidilutive for the years ended 30 June 2022 and 30 June 2021. These shares under
option could potentially dilute basic earnings per share in the future.
26. Related Party Disclosures
(a)
Parent entity
The parent entity within the Group is Superior Resources Limited.
38
52
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
25. Earnings (loss) Per Share
(a) Basic earnings (loss) per share
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.04)
2022
Cents
2021
Cents
(b) Diluted earnings (loss) per share
Profit (loss) per share attributable to the ordinary equity holders of
the company
(0.04)
(0.04)
2022
$
2021
$
(c) Reconciliations of earnings (loss) used in calculating
earnings per share
Basic earnings (loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating basic earnings per share
(597,287)
(569,583)
Diluted earnings(loss) per share
Profit (loss) attributable to ordinary equity holders of the company
used in calculating diluted earnings per share
(597,287)
(569,583)
2022
Number
2021
Number
(d) Weighted average number of shares used as the
denominator
Weighted average number of ordinary shares used as the
denominator in calculating basic earnings (loss) per share
1,568,864,514
1,268,571,172
Adjustments for calculation of diluted earnings (loss) per share:
-
-
Options
Weighted average number of ordinary shares and potential
ordinary shares used as the denominator in calculating diluted
earnings (loss) per share
1,568,864,514
1,268,571,172
Unissued ordinary shares under option are not included in the calculation of diluted earnings per share
because they are antidilutive for the years ended 30 June 2022 and 30 June 2021. These shares under
option could potentially dilute basic earnings per share in the future.
26. Related Party Disclosures
(a)
Parent entity
The parent entity within the Group is Superior Resources Limited.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
26. Related Party Disclosures (continued)
(b)
Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares which are held
directly by the Group. The % ownership interests held equals the voting rights held by the Group.:
Country of
incorporation
Principal Place
of Business
% ownership interest
Held by the Group
2021
2022
Investment
2022
$
2021
$
Subsidiaries
Superior Gold
Pty Ltd
Australia
Australia
100
100
1,000
1,000
(c)
Key management personnel
Disclosures relating to key management personnel are set out in Note 19.
27. Share-based payments
(a) Value of share-based payments in the financial statements
Recognised as share issue costs:
Success fee for share placement – options
Recognised in statement of changes in equity
2022
$
2021
$
213,892
213,892
58,520
58,520
The Group provides benefits in the form of share-based payment transactions as follows:
Type
Options
Holder(s)
Lead Managers
Services provided
Success fee for share placement
(b) Accounting Policy: share-based payment transactions
Services are rendered in exchange for options and/or shares in the Company (equity-settled
transactions).
The cost of equity-settled transactions is determined by the fair value at the date when the grant is
made using an appropriate valuation model. That cost is recognised, together with a corresponding
increase in other capital reserves in equity, over the period in which the performance and/or service
conditions are fulfilled.
(c) Fair value of options
The fair value of the options granted is estimated as at the date of grant using the Black-Scholes
valuation model taking into account the following inputs:
Grant date
Vesting date
Expiry date
Number of options granted
Underlying price per share
Exercise price
Risk-free rate
Volatility
Dividend yield
Option value
2022
7 February 2022
7 February 2022
31 August 2023
10,000,000
$0.042
$0.080
0.64%
143.96%
0%
$0.02138
2021
9 July 2020
9 July 2020
31 December 2021
15,000,000
$0.007
$0.006
0.26%
116.60%
0%
$0.00390
38
39
53
ANNUAL REPORT 2022
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
27. Parent Entity Information
(a)
Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
2022
$
2021
$
4,193,096
8,941,032
13,134,128
1,787,133
6,112,858
7,899,991
638,795
-
638,795
643,276
-
643,276
12,495,333
7,256,715
20,588,628
(2,916,147)
(5,177,148)
14,960,308
(3,123,316)
(4,580,277)
12,495,333
7,256,715
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income/(loss) net of tax
Total comprehensive income/(loss) for the year
(596,872)
(6,723)
(603,595)
(568,914)
28,574
(540,340)
(b)
Contingent liabilities and commitments of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021.
The commitments of the parent entity are as disclosed at Note 22 for the Group.
40
54
SUPERIOR RESOURCES LIMITED
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
SUPERIOR RESOURCES LIMITED (ABN 72 112 844 407)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
27. Parent Entity Information
(a)
Summary financial information
The individual financial statements for the parent entity show the following aggregate amounts:
Statement of financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Issued capital
Reserves
Accumulated losses
2022
$
2021
$
4,193,096
8,941,032
13,134,128
1,787,133
6,112,858
7,899,991
638,795
-
638,795
643,276
-
643,276
12,495,333
7,256,715
20,588,628
(2,916,147)
(5,177,148)
14,960,308
(3,123,316)
(4,580,277)
12,495,333
7,256,715
Statement of profit or loss and other comprehensive income
Loss for the year
Other comprehensive income/(loss) net of tax
Total comprehensive income/(loss) for the year
(596,872)
(6,723)
(603,595)
(568,914)
28,574
(540,340)
(b)
Contingent liabilities and commitments of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021.
The commitments of the parent entity are as disclosed at Note 22 for the Group.
DIRECTORS’ DECLARATION
In the Directors’ opinion:
1.
the financial statements and notes set out on pages 14 to 40, are in accordance with the
Corporations Act 2001, including:
(a)
(b)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
performance for the financial year ended on that date, and
2.
having regard to note 6 to the financial statements, there are reasonable grounds to believe that
the Group will be able to pay its debts as and when they become due and payable.
Note 2(a) confirms that the financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
The Directors have been given the declarations by the chief executive officer/chief financial officer as
required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.
CA Fernicola
Chairman
Brisbane, 29th September 2022
40
41
55
ANNUAL REPORT 2022
Superior Resources Limited
Superior Resources Limited
Independent auditor’s report to the members
Independent auditor’s report to the members
Report on the Audit of the Financial Report
Report on the Audit of the Financial Report
Opinion
Opinion
We have audited the financial report of Superior Resources Limited (the Company and its
We have audited the financial report of Superior Resources Limited (the Company and its
subsidiaries (the Group)), which comprises the consolidated statement of financial position
as at 30 June 2022, the consolidated statement of profit or loss, consolidated statement of
subsidiaries (the Group)), which comprises the consolidated statement of financial position
other comprehensive income, the consolidated statement of changes in equity and the
as at 30 June 2022, the consolidated statement of profit or loss, consolidated statement of
consolidated statement of cash flows for the year then ended, and notes to the financial
other comprehensive income, the consolidated statement of changes in equity and the
statements, including a summary of significant accounting policies and other explanatory
consolidated statement of cash flows for the year then ended, and notes to the financial
information, and the Directors’ declaration.
statements, including a summary of significant accounting policies and other explanatory
information, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of
its financial performance for the year ended on that date; and
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of
its financial performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001.
complying with Australian Accounting Standards and the Corporations Regulations
(ii)
2001.
Basis for Opinion
(i)
(ii)
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group in
We conducted our audit in accordance with Australian Auditing Standards. Our
accordance with the auditor independence requirements of the Corporations Act 2001 and
responsibilities under those standards are further described in the Auditor’s Responsibilities
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES
for the Audit of the Financial Report section of our report. We are independent of the Group in
110 Code of Ethics for Professional Accountants (including Independence Standards) (the
accordance with the auditor independence requirements of the Corporations Act 2001 and
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES
our other ethical responsibilities in accordance with the Code.
110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
our other ethical responsibilities in accordance with the Code.
a basis for our opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
42
56
42
SUPERIOR RESOURCES LIMITED
Superior Resources Limited
Independent auditor’s report to the members
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Superior Resources Limited (the Company and its
subsidiaries (the Group)), which comprises the consolidated statement of financial position
as at 30 June 2022, the consolidated statement of profit or loss, consolidated statement of
other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies and other explanatory
information, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group, is in accordance with the
Corporations Act 2001, including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of
its financial performance for the year ended on that date; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities
for the Audit of the Financial Report section of our report. We are independent of the Group in
accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES
110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
CARRYING VALUE OF EXPLORATION COSTS
Area of focus
Refer also to note 14
Capitalised exploration and evaluation assets represent
68% of the Group’s total assets. The carrying value of
exploration and evaluation assets is impacted by the
Group’s ability, and intention, to continue to explore and
evaluate these assets. The results of these
activities then determine the extent to which it may or
may not be commercially viable to develop and extract
identified reserves.
Judgement is required in evaluating management’s
application of the requirements of AASB 6 Exploration
for and Evaluation of Mineral Resources (“AASB 6”).
AASB 6 is an industry specific accounting standard
requiring the application of significant judgements,
estimates and industry knowledge. This includes
specific requirements for expenditure to be capitalised
as an asset and subsequent requirements which must
be complied with for capitalised expenditure to continue
to be carried as an asset.
Due to the significance of this asset and the subjectivity
involved in determining its carrying value and
recoverable amount, this is a key audit matter.
How our audit addressed it
Our audit procedures included:
— A review of the Directors’ assessment
of the criteria for the capitalisation of
exploration and evaluation expenditure
and their assessment of whether there
are any indicators of impairment to
capitalised costs;
— Test the additions to capitalised
expenditure for the year by agreeing a
sample of recorded expenditure for
consistency to underlying records,
capitalisation requirements of the
Group’s accounting policy and the
requirements of AASB 6;
— Considering the Group’s intention and
ability to continue activities necessary
to support a decision to develop the
exploration and evaluation assets,
which included an assessment of the
Group’s ability to fund such activities
and a review of their future budgets;
— Performing an assessment of whether
any indicators of impairment existed in
line with requirements of Australian
Accounting Standards, including a
review of the integrity of tenement title
status and total commitments value;
and
— We assessed the adequacy of the
Group’s disclosures in respect of the
carrying value of exploration costs.
42
57
43
ANNUAL REPORT 2022
Other Information
The Directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
58
44
SUPERIOR RESOURCES LIMITED
Other Information
The Directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the Directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of these financial statements is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our independent auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30
June 2022.
In our opinion, the Remuneration Report of Superior Resources Limited, for the year ended 30 June
2022, complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
William Buck (Qld)
ABN 21 559 713 106
J A Latif
Director
Brisbane, 29 September 2022
44
59
45
ANNUAL REPORT 2022
Shareholder Information
The information set out below was applicable at 25 October 2022.
A. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Class of security - Ordinary Shares
Number of Holders
Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
65
23
173
1,192
1,189
2,642
The number of holders holding less than a marketable parcel of ordinary shares was 276 and they held 1,853,188 securities.
B. EQUITY SECURITY HOLDERS
Total of Ordinary Shares on Issue 1,701,220,418.
60
SUPERIOR RESOURCES LIMITED Twenty largest equity security holders
Holders of fully paid ordinary shares (ASX:SPQ):
Holder
YARRAANDOO PTY LTD
MR TERRY TAYLOR & MRS LYNDA LOUISE TAYLOR
HBH FAMILY PTY LTD
HAMILTON HAWKES PTY LTD
KJ HARVEY & ASSOCIATES PTY LTD
CHOICE CONSTRUCTIONS PTY LTD
AIHANMI PTY LTD
MR MARTIN JOHN ERIC HOLTMAN
MALACHITE AILURIDAE PTY LTD
JORLYN INVESTMENTS PTY LTD
MR JOHN JOSEPH SCHOLL & MRS PATRICIA JOY SCHOLL
MR CARLOS ALBERTO FERNICOLA & MRS KERRIE ALISON FERNICOLA
CITICORP NOMINEES PTY LIMITED
MR JOHN JOSEPH SCHOLL & MRS PATRICIA JOY SCHOLL
TERRA SEARCH PTY LTD
NETWEALTH INVESTMENTS LIMITED
BT PORTFOLIO SERVICES LIMITED
CAPITAL FINANCIAL ADVISERS PTY LTD
TRANQUIL PLUS PTY LTD
LUCALES INVESTMENTS PTY LTD
Total
Ordinary Shares
Number
Percent
150,000,000
42,000,000
41,949,072
37,919,002
37,542,724
32,804,770
31,350,000
28,012,166
26,329,943
21,500,000
20,009,556
19,101,666
18,470,999
17,098,610
15,999,766
15,551,290
15,207,452
14,604,585
12,928,238
12,000,000
8.82
2.47
2.47
2.23
2.21
1.93
1.84
1.65
1.55
1.26
1.18
1.12
1.09
1.01
0.94
0.91
0.89
0.86
0.76
0.71
610,379,839
35.88
61
ANNUAL REPORT 2022 Unquoted equity securities
Unquoted Options
Number on issue
Number of Holders
Unlisted options @$0.08 expiring 31 August 2023
10,000,000
1
Holders of greater than 20% of the unlisted equity securities
There are no holders with greater than 20% of the unlisted equity securities of Superior Resources Limited at the date of this report.
C. SUBSTANTIAL HOLDERS
Substantial holders of the Company’s ordinary securities are set out below.
Holder of Relevant Interest
Registered Holder
Ordinary Shares
Number
Percent
MR GEOFFREY JAMES HARRIS
YARRAANDOO PTY LTD
150,000,000
8.81
D. VOTING RIGHTS
The voting rights attaching to each class of equity securities are set out below:
a. Ordinary shares
On a show of hands each member present at a meeting in person or by proxy shall have one vote and on a poll each share shall
have one vote.
b. Options
No voting rights.
62
SUPERIOR RESOURCES LIMITED Superior Resources Limited
Tenement Schedule
Current interests in tenements held by the Company and its subsidiaries as of 11 October 2022 are set out below.
All tenements are located within Queensland. Exploration Permits for Minerals (EPM) are specified for all minerals other than coal..
Tenement
Name
Project
Date of Grant
Date of Expiry
Area
Holder
Northwest Queensland
EPM15670
Hedleys 2
Nicholson
21 Aug 06
20 Aug 26
186 km2
EPM18203
Hedleys South
Nicholson
29 May 14
28 May 24
114 km2
EPM19097
Tots Creek
EPM19214
Scrubby Creek
EPM26720
Victor Extended
Victor
Victor
Victor
27 Nov 14
26 Nov 24
108 km2
27 Nov 14
26 Nov 24
30 Aug 18
29 Aug 23
90 km2
60 km2
Northeast Queensland
EPM18987
Cockie Creek
Greenvale
25 Sep 13
24 Sep 23
153 km2
EPM19247
Cassidy Creek
Greenvale
28 May 13
27 May 23
48 km2
EPM25659
Dinner Creek
Greenvale
21 Apr 15
20 Apr 25
192 km2
EPM25691
Wyandotte
Greenvale
7 Apr 15
6 Apr 25
90 km2
EPM26165
Cockie South
Greenvale
30 Jan 17
29 Jan 27
108 km2
EPM26751
Twelve Mile Creek
Greenvale
28 May 19
27 May 24
258 km2
EPM27754
Dido
Greenvale
12 Aug 21
11 Aug 26
300 km2
EPM27755
Arthur Range
Greenvale
12 Aug 21
11 Aug 26
300 km2
EPM27932
Phantom Creek
Greenvale
7 Mar 22
6 Mar 27
300 km2
EPM28630
Six Mile Creek
Greenvale
Application
EPM28632
Lyndhurst
Greenvale
Application
EPM28633
Middle Creek
Greenvale
Application
300 km2
300 km2
300 km2
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
SPQ
Interest
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Abbreviations:
SPQ
EPM
Superior Resources Limited
Exploration Permit for Minerals
63
ANNUAL REPORT 2022 Mineral Resources Statement
Mineral Resources as at 30 June 2022
Project
Steam Engine
Gold Deposit
Notes:
Resource
category
Measured
Indicated
Inferred
Total
Cut-off
grade
(g/t Au)
0.25
0.25
0.25
0.25
Quantity
(tonnes)
Average Grade
(g/t Au)
Au
(ounces)
800,000
1,420,000
1,960,000
4,180,000
2.1
1.5
1.2
1.5
53,000
68,000
75,000
196,000
Notes
1, 2
1, 2
1, 2
1, 2
1. Steam Engine Gold Deposit lies 500 metres south of the Gregory Development Road within EPM26165 “Cockie South”,
approximately 210km west northwest of Townsville, Queensland, Australia.
2. Competent person – Mineral Resources, Mr Kevin Richter (MAusIMM); refer ASX announcement dated 11 April 2022.
Steam Engine Prospect
Information in relation to the Steam Engine Gold Deposit Mineral Resource Estimate and related information were originally
reported on the ASX Market Announcements Platform on 22 March 2021 (“Steam Engine revised Mineral Resource Estimate: JORC
Measured and Indicated Resource upgraded by 31%”) and 11 April 2022 (“Material upgrade in Steam Engine Resource to 196,000 oz
Au with 80.6% increase to Measured and Indicated categories”) each of which, complies with the guidelines of the 2012 JORC Code.
Mineral Resources comparison 2021 to 2022
2022
2021
Project
Steam Engine
Gold Deposit
Resource
category
Measured
Indicated
Inferred
Total
Cut-off
grade
(g/t Au)
0.25
0.25
0.25
Quantity
(tonnes)
800,000
1,420,000
1,960,000
0.25
4,180,000
Average
grade
(g/t Au)
2.1
1.5
1.2
1.5
Au
(ounces)
53,000
68,000
75,000
196,000
Cut-off
grade
(g/t Au)
0.5
0.5
0.5
0.5
Quantity
(tonnes)
240,000
610,000
880,000
1,730,000
Average
grade
(g/t Au)
2.6
2.4
1.9
2.2
Au
(ounces)
20,000
47,000
55,000
122,000
64
SUPERIOR RESOURCES LIMITED The revised Steam Engine Mineral Resource Estimate, as stated in this report and as published on 11 April 2022, is calculated using
a cut-off of 0.25 g/t Au, compared with a cut-off grade of 0.5 g/t Au that was used in the 2021 Mineral Resource Estimate. A lower
cut-off grade was for the 2022 Mineral Resource Estimate to enable feasibility studies to be carried out on the basis of a mining and
processing operation.
Mineral Resource and Ore Reserve Governance
The Mineral Resource Estimates as reported, have been generated by a suitably qualified person using industry standard best
practice modelling and estimation methods.
Unless stated otherwise, Mineral Resources and Ore Reserves are compiled in accordance with the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition.
The Mineral Resources Statement included in this report has been reviewed by a suitably qualified Competent Person.
Reporting of Exploration Results
The reporting of Exploration Results, Mineral Resources or Exploration Targets in this report reflects information that was
originally reported in ASX market announcements as referenced in various parts of this report. The Company confirms that it is
not aware of any new information or data that materially affects the information, results or conclusions contained in the original
reported document.
In respect of previously reported Mineral Resource estimates, all originally reported material assumptions and technical parameters
underpinning the estimates continue to apply and have not been materially changed or qualified. The form and context in which the
relevant Competent Person’s findings are presented have not been materially modified from the original document.
65
ANNUAL REPORT 2022 SUPERIOR RESOURCES LIMITED
ABN 72 112 844 407
Registered Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
Principal Office
Unit 8, 61 Holdsworth Street
COORPAROO QLD 4151
T: 07 3847 2887
E: manager@superiorresources.com.au
superiorresources.com.au