AND ITS CONTROLLED ENTITIES
_____________________________________________________________________________________
ANNUAL REPORT
ENDED 30 JUNE 2024
_____________________________________________________________________________________
WWW.SUREFIRERESOURCES.COM.AU • ASX: SRN•ABN 48 083 274 024
- Page 2 -
AND ITS CONTROLLED ENTITIES
CONTENTS
Page No.
Corporate Directory
3
Review of Operations
4
Directors’ Report
17
Auditor’s Independence Declaration
25
Consolidated Entity Disclosure and Corporate Governance Statements
26
Consolidated Statement of Financial Performance
27
Consolidated Statement of Financial Position
28
Consolidated Statement of Changes in Equity
29
Consolidated Statement of Cash Flows
30
Notes to and forming part of the Consolidated Financial Statements
31
Directors’ Declaration
48
Independent Auditor’s Report
49
Tenement Details
53
Other Information
54
CORPORATE DIRECTORY
- Page 3 -
DIRECTORS
VLADIMIR NIKOLAENKO
Executive Chairman
PAUL BURTON
Managing Director
MICHAEL POVEY
Non-Executive Technical Director
ROGER SMITH
Non-Executive Director
COMPANY SECRETARY
Rudolf Tieleman
REGISTERED OFFICE
Ground Floor
45 Ventnor Avenue, West Perth WA 6005
Telephone (08) 9429 8846
Facsimile (08) 9429 8800
PRINCIPAL OFFICE
Unit 10, 100 Mill Point Road, South Perth WA 6151
Telephone (08) 6331 6330
Facsimile (08) 9429 4400
WEBSITE
www.surefireresources.com.au
FOR SHAREHOLDER INFORMATION CONTACT
Share Register
Automic Group
Level 5, 191 St George’s Terrace
PERTH WA 6000
GPO Box 5193
SYDNEY NSW 2001
Telephone: +61 2 8072 1400 or 1300 288 664
BANKERS
National Australia Bank Limited
Commonwealth Bank Limited
AUDITORS
Elderton Audit Pty Ltd
Chartered Accountants
Level 32, 152 St George’s Terrace, Perth WA 6000
STOCK EXCHANGE
Australian Securities Exchange (ASX)
ASX COMPANY CODES
SRN (Fully paid shares)
SRNOD (Options to acquire fully paid shares)
ISSUED SECURITIES
1,986,307,813 fully paid ordinary shares
188,785,323 partly paid ordinary shares, unpaid as to
$0.027 each
70,000,000 partly paid ordinary shares, unpaid as to
$0.0059 each
351,072,907 options to acquire fully paid ordinary shares,
exercisable at $0.019 each on or before 30.11.2026
30,000,000 executive incentive options to acquire fully
paid ordinary shares at $0.018716 each on or before
6.12.2025 subject to various vesting conditions
REVIEW OF OPERATIONS
- Page 4 -
General Advice
Shareholders should review the Quarterly Reports which are lodged with ASX at the end of each quarter . These reports contain detailed
information in relation to the Company’s exploration and corporate activities.
Review of Operations
Surefire Resources NL (“Surefire”, “the Company”) is pleased to report on its exploration activities at the Company’s 100% owned
properties for the twelve months ending 30 June 2024.
During the year, Surefire Resources NL focussed on advancing its high value portfolio of assets with a focus on progressing its flagship
Victory Bore (Vanadium – Titanium – Iron), project the Unaly Hill (Vanadium – Titanium – Iron), project, and advancing the Yidby (gold)
project, along with exploration on its other greenfield projects.
Figure 1 - Surefire Resources NL project locations
REVIEW OF OPERATIONS
- Page 5 -
Victory Bore Project: E57/1036 and M 57/667
Commodities: Vanadium- Titanium – Iron – Aluminium
The Victory Bore Vanadium Project contains the Victory Bore and Unaly Hill deposits and is located in the Mid-West of Western Australia
approximately 530km north of Perth. These deposits consist of multiple stacked vanadium-titanium-magnetite rich layers up to 80m wide
are that are contained within a layered gabbro. Weathering is shallow. The combined Victory Bore - Unaly Hill host gabbro has a total
strike length of over 20km, which is yet to be fully tested and illustrates the Project’s longer-term exploration potential.
Critical Mineral Status
Vanadium and titanium have been identified by the Australian government as critical minerals required to underpin the
advanced technologies that will support the global push for decarbonisation
During the year the Company completed Pre-Feasibility Study (PFS) on the Victory Bore project. This study concluded that the project has
outstanding potential to be taken into production. The Company’s approach to this maiden and landmark study is to use industry standard
processing to produce a range of products in order to maximise the returns and allow for a reliable and demonstrable low-risk business
concept. A summary of the key points of the PFS are:
Project Parameter
Unit
Amount
Pre-tax NPV at a 10% discount rate
USD $M
$1,110
Pre-tax Internal Rate of Return
%
42.22%
Capital Cost
USD $M
$498
OPEX: normalised back to concentrate produced
USD per tonne of
concentrate
$254
Life of Mine
Years
24
Pre-tax payback
Years
2.4
Table 1: Pre-Feasibility Study key results
Development Strategy
The Company’s strategy for the Victory Bore project is to develop a mining and beneficiation operation at the Victory Bore mine site to
produce a high-quality magnetite concentrate. The magnetite concentrate is then transported to Geraldton Port and on-shipped to Port
Daaman in the Kingdom of Saudi Arabia (KSA), where a downstream processing facility will be established to produce high purity products
of Vanadium Pentoxide, Ferrovanadium, vanadium electrolyte, Pig-Iron, Iron oxide. Titanium slag.
Development Pathway with Kingdom of Saudi Arabia
The Company has engaged with the Kingdom of Saudi Arabia as it is a low power and fuel cost jurisdiction and also provides the Company
with significant operational advantages including reduction in operating costs favourable incentives for funding, availability of
infrastructure and reagents. The KSA also has a significant steel sector with demand for iron and vanadium products, including
ferrovanadium.
Updated Mineral Resource Estimate
During the PFS completion the JORC Mineral Resource Estimate (MRE) for the Victory Bore Project was updated The resource model
remained unchanged but reporting considered a lower cut-off grade (V2O5) from 0.26% to 0.15% based on cut-off grades determined
during the PFS. In addition, TiO2, Fe, Al2O3 and SiO2 grades were included in the reporting. The MRE was converted to an Ore Reserve by
economic evaluation using open pit optimisation to produce an economic mining shell followed by detailed pit design, and life of mine
scheduling. Mine equipment requirements were estimated and costed for financial modelling.
Table 2: Victory Bore Mineral Resource Estimate as at December 2023. Resources at a 0.15% V2O5 cutoff. Tonnages are rounded
The estimated ore reserves and/or mineral resources underpinning the production target have been prepared by a competent person in
accordance with the requirements in the JORC Code.
Classification:
Cut-off (% V2O5)
Volume
(Mbcm)
Tonnes (Mt)
V2O5 (%)
TiO2 (%)
Fe (%)
Al2O3 (%)
SiO2 (%)
Measured
0.15
7.6
25.3
0.35
4.96
19.20
17.0
34.9
Indicated
0.15
33.9
113.2
0.32
4.70
18.19
17.4
35.9
Inferred
0.15
99.3
326.1
0.28
5.28
17.41
16.0
36.4
Total
0.15
140.7
464.6
0.30
5.12
17.70
16.4
36.2
REVIEW OF OPERATIONS
- Page 6 -
Maiden Ore Reserve
The Mineral Resource was converted to an Ore Reserve by economic evaluation using open pit optimisation to produce an economic
mining shell followed by detailed pit design, and life of mine scheduling. Mine equipment requirements were estimated and costed for
financial modelling. A pit optimisation validation was run using financial model inputs to confirm the shell. The Ore-Reserve was
completed by Snowden-Optiro.
A maiden probable Ore Reserve of 93 Mt @ 0.35% V2O5, 5.2% TiO2 and 19.8% Fe was reported in accordance with the JORC Code (2012).
All Measured and Indicated Resources above cut-off within the pit design were classified as Probable Ore Reserves after considering the
confidence in the material modifying factors. No in-pit Inferred Mineral Resources were included in the Probable Ore Reserve
Table 3 Victory Bore Ore Reserve as at November 2023
Figure 2: Victory Bore Project Cross section 6.873,050mN – displaying a width 200m of Aluminium and Vanadium mineralisation,
drilling results and central location of the Aluminium resource compared to the Vanadium resource
Classification
Ore tonnes
(Mt)
V2O5
(%)
TiO2
(%)
Fe
(%)
Al2O3
(%)
SiO2
(%)
Probable
93.1
0.35
5.2
19.8
16.8
34.3
REVIEW OF OPERATIONS
- Page 7 -
Environmental Surveys
Surefire engaged Onshore Environmental Consultants Pty Ltd. (“Onshore Environmental”) during the year to undertake a detailed flora
and vegetation survey and desktop vertebrate fauna assessment at the Victory Bore Project. No commonwealth or state listed Threatened
Ecological Communities (TECs), or state listed Priority Ecological Communities (PECs) were documented from the Murchison bioregion.
Subterranean Fauna
Following the detailed flora and vegetation survey, and the desktop fauna survey, Surefire engaged Umwelt (Australia) Pty Ltd (“Umwelt”)
to provide specialist environmental support for the Project, including advising the most appropriate approvals pathway for Project.
It was determined that the Company to understand any likelihood of subterranean fauna habitat in the Victory Bore project area.
Subterranean fauna are an increasing focus by the Environmental Protection Authority (“EPA”) on mineral resource projects. The
presence of subterranean fauna within a mineral resource project area is a trigger for major environmental approvals and assessment by
the EPA which can add considerable cost and time for project approvals, in some instances several years. The desktop assessment
determined no subterranean fauna values (i.e., habitat and populations) are expected to be impacted by the Project
As the subterranean fauna desktop assessment confirmed that there is no risk of significant impact to subterranean fauna from the
Project it is not expected that subterranean fauna will be a reason to trigger assessment of the project by EPA. If EPA assessment is not
required, lengthy and expensive Project approvals may be avoided by the Company. This will be confirmed through further review of
baseline flora and terrestrial fauna studies by Umwelt as part of an Approvals Strategy.
Hydrogeology
Surefire is planning an open-cut mine at the Victory Bore project with a proposed 4Mt / annum mine rate, with beneficiation and
processing on site and appointed specialists “Rockwater” to undertake the Hydrogeological Assessment to understand the groundwater
occurrence, flow rates and any impacts of dewatering and use of water in its proposed mining operation. The assessment is also required
for Surefire to obtain the necessary regulatory approvals.
Mine Site Setting
Vanadium mineralisation at Victory Bore extends over a strike length of more than 20km, and an initial open cut pit is likely to be
approximately 1,500m long and approximately 100m deep.
The rocks in the area are generally fresh from shallow depths with the base of oxidation varying from 10m to 15m depth at the boundary
of the deposit to approximately 35m in the centre.
Hydrogeological Assessment
The most prospective rocks for groundwater supplies are Banded Iron Formation (BIF), felsic rocks, and granite greenstone contacts
where these rocks are fractured and / or located near the base of weathering.
Local station bores and wells are located within granitic rocks that have intruded greenstones mostly near the granite greenstone
contact at Victory Bore or in BIF.
Groundwater contours show that the natural groundwater flow direction is from north to south following the topography.
Assessment of Mine Dewatering and water use
A groundwater model was constructed to make an estimate of potential dewatering flow rates during the planned open-cut mining and
the extent of any impacts. Mining was simulated over a 10-year period with a constant rate of advance of 10m per year.
Model-calculated average dewatering pump flow rate was shown to be low at approximately 100 KL/day over the modelled period.
Model-predicted groundwater-level drawdowns at the end of mining (when maximum drawdowns would occur) are indicated to extend
to approximately 700m north and south of the proposed pit, but all current station bores and wells are beyond the drawdown extent and
would not be impacted.
Ground water dependant ecosystems
There are no known ground-water dependant ecosystems that could be impacted.
Nature of Final Mine Void
The water balance for the final pit void was calculated to determine whether a lake would form within the pit.
It was concluded that potential evaporation rates would exceed the rainfall accumulation and groundwater inflows, and it was unlikely
that a lake would form in the pit.
REVIEW OF OPERATIONS
- Page 8 -
Mine Planning
Mining will be undertaken using standard open cut methods and will be done by contract miners. Basic mining parameters shown in
Figure 4.
.
Bench height / flitches
10m / 2.5m
Drill and blast pattern
Generally 6 x 6m with 1.5m subdrill and 4.1m stemming height
Grade control
Blast hole sampling and grade block mark out; reconciliation
Haulage
90t capacity trucks
Low grade
To strategic long-term stockpiles
ROM pad
No blending is required
Table 4 Mining parameters used in the PFS
An open pit design was optimised on blocks that delivers the highest indicative present value based on mining costs. The minimum mining
width considered was 20 m. The resulting final pit is 1,900m long, 375m wide, and 200m deep. The overall layout of the mine site is shown
in Figure 3.
Figure 3: Overall mine layout with final pit design. WRL: Waste Rock Landform, LTSP:
Long Term Strategic Stockpile
REVIEW OF OPERATIONS
- Page 9 -
Mine schedule Estimate
The mining schedule provides the beneficiation plant with 4 Mt/a ore (average). Lower grade ore is stockpiled for processing at the end of
mining. The overall mining rate, including waste, will ramp up to 12 Mt/a within nine months of mine start-up (Figure 4).
Figure 4: Mine schedule, detailing the 12 stages in the schedule
Operational Plan and Funding Strategy
Kingdom of Saudi Arabia (KSA)
It is the Companies plan to operate the downstream processing plant in KSA with an experienced Saudi company on a joint venture or
partner basis where the downstream processing, marketing and product sales of the operation are managed by the joint company.
Saudi Arabia is a low power, and utilities cost jurisdiction providing the Company with significant operating cost advantages and has
significant funding incentives available of up to 75% of capital expenditure for mineral processing projects.
In August 2023 the Company executed a non-binding Memorandum of Understanding (MOU) with MISA for assistance with developing a
downstream processing facility in KSA. MISA offers supportive and advisory services to organizations to deliver solutions to their business
needs and implement local solutions by drawing on a wealth of global knowledge and experience.
In January 2024 the Company signed a non-binding MOU with KSA based Ajlan & Bros Mining and Metals Company and
in March 2024 the Company executed a second MOU with RASI Investment Company.
Discussions with companies have commenced and Confidentiality Agreements in place. These discussions are at an early stage there is
no guarantee that an agreement will be reached. If an agreement is not reached the Company will consider proceeding on a stand-alone
basis.
Processing Design and Plant Location
The Company plans to construct a beneficiation plant at the Victory Bore mine site, and a processing plant in Ras Al Khair Region (RAK) ,
KSA. The RAK region is near to Port Daaman and is an industrial centre designed for ferrous processing..
The beneficiation plant at the Victory Bore mine site involves comminution and dry cobbing, grinding, magnetic separation, thickening,
water supply, fuel and air services, and camp water service areas. Approximately 4M t/a of ore feed will be mined to feed the beneficiation
plant for an average annual output of 1.25 Mt/a vanadium titanomagnetite concentrate which will be shipped to RAK.
Funding
The Company’s Board believes that there are reasonable grounds to assume that funding for this project will be in place through a debt
and equity funding strategy.
REVIEW OF OPERATIONS
- Page 10 -
Project Finance
The KSA has significant funding incentives available including up to 75% of Capital Costs particularly for critical mineral resource
processing. The availability of this type of funding has been discussed and referred to by MISA and is included in their documentation. At
this stage, and until further discussions are concluded, there is no assurance that the Company will have access to this finance.
Debt and Equity Finance
Debt
It is expected that a suitable debt/equity structure will be entered into with traditional resource project finance from leading banks and
institutions in Australia and overseas.. The Company has had preliminary discussions with an overseas major export credit bank for
potential interest in financing the project. The institution has experience in operating and funding projects in KSA. This is at an early stage
and there is no guarantee debt funding from banks or other institutions will eventuate.
Equity
Any equity component will be dependent on the amount of debt raised. The Company would not pursue an equity alone funding solution.
The Company will approach interested Australian, Middle Eastern, and European based institutions for equity. The Company would aim
to make the equity component of any project finance structure as minimal as possible.
OƯtake Agreements
The Company has not entered into any oƯtake agreements but has been approached by interested parties. It is expected that any oƯtake
agreement will include either project or pre-production debt and or equity finance.
Research and Development
During the year the company-initiated research and development testwork in line the Federal governments R&D tax incentive program.
Vanadium Leach Test Work
In May 2023 the Company appointed METS Engineering (“METS”) to undertake an assessment of potential for recovery of a high purity
vanadium oxide in liquid form, from which a clean high purity vanadium electrolyte could be produced for use in the emerging vanadium
battery sector in Australasia.
During the year the Company announced it had achieved remarkable vanadium extraction from leach test work. The test work process
achieved extractions of 91% for Vanadium after a 96-hour leach directly from the Victory Bore magnetite concentrate (Figure 5).
Additionally, an extraction of 88% Titanium was also recovered. The leach process was applied to pre-treated concentrate allowing the
leach process to effectively scavenge vanadium.
The successful process is an adaptation of several commercially scalable processes used within the mineral resource industry and
involves leaching under certain conditions. Laboratory testwork involved batches of concentrate from the Victory Bore deposit being
subjected to 4 separate leachants with catalysts, under various novel conditions. The total process is a combination of the proprietary
leachant and novel conditions. The process details are commercial in confidence and remain the IP of Surefire Resources and subject to
a Provisional Patent protection.
Figure 5: Vanadium extraction from Magnetite concentrate over leachate time
REVIEW OF OPERATIONS
- Page 11 -
Additionally, follow up test work, conducted on the same sample material as used in the previous test work dramatically improved the
recovery of vanadium in a much-shortened leach time on pre-treated magnetite concentrate (PTMC).
Figure 6: Vanadium extraction from Magnetite concentrate over leachate time
While additional test work will be required in the next stages before pilot plant testing, the fact that roasting of the concentrate is not
required is significant for future processing implications. No roasting will mean that a kiln used in traditional current vanadium extraction
methods will not be required. This will mean a much reduced or zero carbon footprint, and much reduced CAPEX and OPEX for the project.
Aluminium Resource
The Victory Bore resource host rock contains high aluminium content. The wide and extensive zone of Aluminium Oxide grading up to 23%
Al2O3 occurs between the vanadium rich zones .The company has delineated a JORC (2012) Mineral Resource estimate of 37.7Mt @
23.3% Al2O3.
Measured - 5.2 Mt @ 23.1% Al 2O 3
Indicated - 11.8 Mt @ 23.1% Al 2O 3
Inferred - 20.7 Mt @ 23.5% Al 2O 3
Total - 37.7 Mt @ 23.3% Al 2O 3
High Purity Aluminium (HPA) Test Work
The Aluminium Oxide (Al2O3) in the host rock surrounding the high-grade Vanadium resource at Victory Bore , would, during the mining
and beneficiation process would effectively be waste rock from which HPA could be commercially extracted. Significantly, the extraction
of HPA from a hard rock source that occurs at Victory Bore could provide the Company with a low-cost feedstock for a future high value
HPA production.
Lava Blue Ltd was contracted to undertake laboratory test work to demonstrate a method to produce 4N (99.99%) purity alumina from
this material Lava Blue uses a proprietary process developed with Queensland University of Technology (QUT) where the test work was
also undertaken.
The initial test work successfully confirmed the production of 4N HPA (99.99%), (see plates 1,2 below). Projected Alumina purity was as
high as 99.998% with an actual maximum Alumina Purity achieved of 99.992% HPA. The difference in predicted and actual results was
due to silicon impurity, which may have been contamination but in any event can be removed in any future test work program.
The achievement of 4N was a prerequisite set by the Company as this is a grade required for the current and emerging HPA markets.
Further test work, optimisation and refinement of the Lava Blue process for treating the Victory Bore material may improve on this value.
A 5N product (if achieved) would place Surefire as one of the highest purity producers.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
20
40
60
80
100
120
Extraction (%)
Time (hrs)
Extraction Vs. Time
V
REVIEW OF OPERATIONS
- Page 12 -
Plates 1,2: Some of the first 4N 9.99% HPA generated by Lava Blue from the Company’s Victory Bore deposit
Unaly Hill Project: E57/1068
The Unaly Hill Vanadium project licence area, E57/1068 lies within the Atley Igneous Complex located approximately 48 km south of
Sandstone in the East Murchison Mineral field of Western Australia. The Atley Intrusion is a layered gabbroic body that is elongate in an
NNE/SSW orientation and runs along the axis of the regional scale Youanmi Fault, a regionally dominant geological feature.
The Unaly Hill project is located immediately adjacent to the south of the Victory Bore project and completes the 20km of contiguous
outcrop of vanadium – titanium – iron mineralisation.
The project has an inferred resource of 86Mt @ 0.42% v205, 24….8% Fe, 4.5% TiO2.
Previous metallurgical testwork produced Fe grades of up to 63%, V205 grades up to 1.45 % and TiO2 grades of up to 10.9%.
The project add significant future resources for mining operations at Victory Bore.
Yidby Project: E59/2845, E59/2444, E59/2390, E59/2426
Commodities: Gold - Copper
The Yidby Gold Project is an emerging large gold system and contains significant mineralised zones up to 80m wide. The anomalous gold
currently extends over a 3km strike length and is open along strike and at depth.
The Yidby project is located on the Great Northern Highway, 350km North pf Perth and 40km southwest of Paynes Find in the Mid-West
of Western Australia (Figure 7). The Project comprises 4 granted exploration licences with a total area of 114 km² within the prolific gold
producing southern portion of the Yalgoo-Singleton Greenstone Belt.
The Project is located nearby significant gold deposits, including the +1.1 million-ounce Minjar Gold Project approximately 65km to the
northwest, the 1 million-ounce Kirkalocka Gold Project approximately 70km to the northeast, the >3Moz Mount Gibson Gold Project 30km
to the south and the 0.54Moz Rothsay Gold Project 30km to the west.
The mineralised system intersected to date is extensive and now covers over 3km in a NW-SE trending strike length with Gold intercepts
at the Yidby, Fender, and Marshall targets (see Figure 8).
The gold mineralised system is quartz-porphyry within an assemblage of mafic and ultra-mafic rocks above a large porphyry system similar
to that seen at the Mt Gibson gold mine located 30km to the south.
Metallurgical work undertaken by the Company shows that the gold is recoverable by leaching which increases the potential of the project
area. The Company considers there is scope for a larger gold system at depth, with more intensely developed high grade zones within the
overall shear – porphyry system.
REVIEW OF OPERATIONS
- Page 13 -
Figure 7: Yidby Gold Project location with major neighbouring gold deposits
Figure 8: Plan view interpretation of the geological controls, mineralisation, and prospects
REVIEW OF OPERATIONS
- Page 14 -
Perenjori Project: E70/5575, E59/2446, E70/5572, E70/6402
Commodity: High Grade Iron
The Perenjori Magnetite project is in the infrastructure-rich Mid-West mining district of Western Australia. The magnetite project is
located on E70/5311. The project is well positioned to deliver high-grade iron concentrates into next-generation zero-carbon steel
plants. The project is located closer to the Geraldton Port than other Western Australian magnetite projects, with a rail distance of
219km (Figure 6).
The Perenjori Iron Project ore has high iron grades a current Inferred Resource of 191.7Mt @ 36.6% Fe. An additional exploration target
of 870 to 1,240Mt @ 22% to 42% F1
Metallurgical test-work, completed by previous owners Quest Minerals Ltd), recovered 66% to 70% Fe concentrate grades from the
relatively coarse and favourable grind size of 75 µm, with SiO2 averaging 4.9% and less than 0.2% Al2O3. A premium grade feed would be
suitable for blast furnace pellet production or as a Direct Reduction Iron (DRI) feed.
Figure 9: Perenjori Iron Project location
Environmental Survey and Permitting
A comprehensive flora and fauna survey has been completed at Perenjori which identified Threatened Ecological Communities (TEC).
The Company has engaged with expert Environmental consulting firms to establish a strategy for mining with minimal disturbance to
the TEC. Once a strategy has been developed the Company will engage with the EPA.
Kooline Project: E08/2373
Commodities: Lead-Silver-Gold-Copper
The Kooline Base Metals Project in the Ashburton region of Western Australia covers 240km2 and 50km of strike of prospective base and
precious metal mineralisation, with high grade lead up to 55.3%, silver up to 249g/t and copper up to 2.62% mineralisation recorded in
the project area (Figure 10).
REVIEW OF OPERATIONS
- Page 15 -
Figure 10: Location of the Kooline Project, Ashburton Basin, WA
RISK FACTORS
Introduction:
An investment in the Company is not risk free and the Directors strongly recommend potential investors consider the risk factors
described below, together with information contained elsewhere in this report, publicly available information, circumstances peculiar to
them and that they consult their professional advisers before deciding whether to invest in Company Shares.
There are specific risks which relate directly to the Company’s business. In addition, there are general risks, many if not all of which are
largely beyond the control of the Company and the Directors. The risks identified in this section, or other risk factors, may have a material
impact on the financial performance of the Company and the market price of its Shares.
Company Shares carry no guarantee with respect to the payment of dividends, returns of capital or the market value of those Shares.
Potential investors should consider that investment in the Company is speculative and should consult their professional advisers before
deciding whether to invest in Company Shares
The following is not intended to be an exhaustive list of the risk factors to which the Company and investors in the Company are exposed.
Company specific risks:
Exploration Results
The Company has numerous samples and geophysical data from its exploration programmes that are currently being assayed or
evaluated. No assurance can be given that these exploration results will be favourable. Any results that are not favourable may materially
adversely affect the Company’s Share price and future prospects.
Additional requirements for capital
The Company’s future capital requirements, and the Company’s ability to satisfy those requirements, depend on numerous factors, many
of which are beyond the control of the Company.
It is likely that the Company will require further funding. Any additional equity financing will dilute shareholdings. Any debt financing, if
available, may involve restrictions on the Company’s activities. If the Company is unable to obtain additional funding as needed, it may
be required to reduce the scope of its operations, dispose of assets or scale back its exploration programmes, as the case may be.
REVIEW OF OPERATIONS
- Page 16 -
The Company’s ability to raise funds through the issue of Shares or other securities is subject to share market conditions from time to
time. The market for securities in junior exploration companies fluctuates.
There is no certainty that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to
the Company and its Shareholders.
Executive Management
The responsibility of overseeing the day-to-day operations and the Company’s strategic management depends substantially on its senior
management and key personnel. There can be no assurance given that there will be no detrimental impact on the Company if one or more
of these employees cease their employment.
Industry specific risks:
Exploration success
The future profitability of the Company and the value of its securities is likely to be directly related to the results of exploration on its
current and/or future projects. The exploration tenements held by the Company are at various stages of exploration and potential
investors should understand that minerals exploration and development are high-risk undertakings. There can be no assurance that
exploration of these tenements, or any other tenements that may be acquired, will result in discovery of an economic ore deposit. Even if
an apparently viable deposit is identified, there is no guarantee that it can ultimately be economically exploited.
The Company’s future exploration activities may be affected by a range of factors including geological conditions, limitations on activities
due to seasonal weather patterns, unanticipated operational and technical difficulties, industrial and environmental accidents, native
title processes and laws relating to Aboriginal heritage and other first Australian matters, changing government regulations and many
other factors beyond the Company’s control.
The Company’s success will depend upon the Company being able to maintain, renew or replace title to its tenements and obtaining all
required approvals for its activities. In the event that exploration programmes prove to be unsuccessful, this would likely and be expected
to lead to diminution in the value of the Company’s tenements, and possible relinquishment of tenements.
The Company’s anticipated exploration costs are based on certain assumptions with respect to the method and timing of exploration. By
their nature, these estimates and assumptions are subject to significant uncertainties and, accordingly, the actual costs may be
materially different from these estimates and assumptions. Accordingly, no assurance can be given that any cost estimates or the
underlying assumptions will be realised in practice, which may materially and adversely affect the Company’s viability.
Tenure risks and native title
Interests in tenements in Australia are governed by the mining legislation of the respective states. Each licence or lease is for a specific
term and carries with it annual expenditure and reporting commitments, as well as other conditions requiring compliance. Consequently,
the Company could lose title to or its interest in tenements if licence conditions are not met or if insufficient funds are available to meet
expenditure commitments.
If exploration is successful, the Company will not be able to exploit any mineral deposit unless the Company first acquires a mining lease.
The grant of a mining lease is subject to ministerial discretion.
Additionally, in areas where native title exists or may exist, the ability of the Company to acquire a valid mining lease may also be subject
to compliance with the ‘right to negotiate’ process under the Native Title Act. Compliance with this process can (and usually does) cause
delays in obtaining the grant of a mining lease and ultimately there can be no guarantee that a mining lease will be granted. Attaining a
negotiated agreement with native title claimants or holders to facilitate the grant of a valid mining generally add significantly to the costs
and timetabling of any development or mining operation.
The ability of the Company to conduct activities on exploration or mining tenements is subject to compliance with Aboriginal heritage
laws. Conduct of site surveys to ensure compliance can be and mostly are expensive and subject to delays. If any Aboriginal sites are
located within areas of proposed exploration, mining or other activities, the ability of the Company to conduct those activities may be
dependent on the Company obtaining further regulatory consents or approvals none of which can be assured.
Competent Person Statement
The information in this report that relates to exploration results has been reviewed, compiled, and fairly represented by Mr Horst Prumm,
a Member of the Australian Institute of Mining and Metallurgy (‘AusIMM’) and the Australian Institute of Geoscience (‘AIG’) and a fulltime
employee of Prumm Corporation Pty Ltd. Mr Prumm has sufficient experience relevant to the style of mineralisation and type of deposits
under consideration to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (‘JORC’)
Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Prumm consents to the inclusion in this
report of the matters based on this information in the form and context in which it appears.
DIRECTORS’ REPORT
- Page 17 -
Your directors submit the financial report of Surefire Resources NL (the “Group” or “Surefire”) and its controlled entities (the
“Consolidated Entity” or “Group” – refer Note 19 for additional details) for the year 30 June 2024.
DIRECTORS
The following persons were directors of the Group during the year and up to the date of this report:
Mr Vladimir Nikolaenko
Mr Paul Burton
Mr Michael Povey
Mr Roger Smith
PRINCIPAL ACTIVITIES
The principal activities of the Group during the year were to explore and/or review mineral tenement holdings in Western Australia.
RESULTS FROM OPERATIONS
During the year, the Group recorded an operating loss of $3,068,583 (2023: Loss $3,579,947).
DIVIDENDS
No amounts have been paid or declared by way of dividend by the Group since the end of the previous financial year and the
Directors do not recommend the payment of any dividend.
REVIEW OF OPERATIONS
A review of operations is covered elsewhere in this Annual Report.
EARNINGS PER SHARE
Both basic loss per share and diluted loss per share for the financial period was 0.17 cents (2023: Loss 0.22 cents).
FINANCIAL POSITION
The Group’s cash position as at 30 June 2024 was $1,485,320, a decrease of $2,935 from the 30 June 2023 cash balance which
was $1,488,255.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the year, the Company:
issued 3,571,429 fully paid ordinary shares to Spark Plus as consideration for contracted services;
issued 181,818,186 fully paid shares at $0.011 each together with 181,818,186 free attaching options as a placement
to sophisticated and professional investors;
issued 126,404,721 fully paid shares at $0.011 each together with 126,404,721 free attaching options pursuant to a
non-renounceable rights issue;
issued 23,000,000 fully paid shares at $0.011 each together with 23,000,000 free attaching options as additional
securities within the time allowed under the prospectus dated 9.11.2023;
issued 20,000,000 options to the lead manager for part payment of services related to the rights issue;
issued 150,000 fully paid shares pursuant to the exercise of options at $0.019 each; and
entered into an agreement with Mutual Holdings Pty Ltd in relation to additional amounts payable as a consequence of
ASX announcements advising of increased JORC resources, and as detailed in Note 17.
Other than as noted above or in the Review of Operations, there were no significant changes in the state of affairs of the Group
during the financial period.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Since the reporting date, SRN has made ASX announcements in relation to the following matters:
Dual listing on Frankfurt Stock Exchange;
Extension of MOU with Ajlan Mining and metals, Kingdom of Saudi Arabia;
DIRECTORS’ REPORT
- Page 18 -
Agreements announced with DRA Global Limited, Mid-West Ports Authority;
Discovery of Extensive Copper-Zinc zone at Yidby Gold Project; and
Commencement of follow-up of exploration on extensive copper-zinc zones
Other than noted above or reported to ASX there have been no matters or circumstances that have arisen since 30 June 2024
which have significantly affected or may significantly affect:
(a)
the Group’s operations in future years; or
(b)
the results of those operations in future years; or
(c)
the Group’s state of affairs in future years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Likely developments in the operations of the Group and the expected results of those operations in future financial years have
not been included in this report as the directors believe, on reasonable grounds, that the inclusion of such information would be
likely to result in unreasonable prejudice to the Group.
Full current details of the Group’s operations can be located on its website, www.surefireresources.com.au
ENVIRONMENTAL ISSUES
The Group carries out exploration operations in Australia which are subject to environmental regulations under both
Commonwealth and State legislation. The Group’s exploration manager is responsible for ensuring compliance with those
regulations. During or since the financial period there have been no known significant breaches of these regulations.
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Vladimir Nikolaenko
Executive Chairman
Mr Nikolaenko has over 30 years of commercial experience in exploration, project evaluation, development and operations,
predominantly focused in the base metals, gold and diamond sectors. He has a depth of management and corporate expertise in
the operation of public companies and has held the position of managing director of four public companies over a period of more
than 20 years involved in exploration and production, property development and technology.
He has held no directorships in other public companies in the past 3 years.
Mr Nikolaenko has a relevant interest in 270,133,175 ordinary fully paid shares, 67,188,767 partly paid ordinary shares, and
28,364,799 options to acquire fully paid shares at $0.019 each, exercisable on or before 30.11.2026. Mr Nikolaenko is not
considered to be an independent director but possesses appropriate skill sets to be a suitably qualified key board member whose
interests are aligned with those of the shareholders.
Paul Burton
Managing Director
He is an experienced natural resources executive, CEO and Managing Director with a successful career spanning 30 years in
exploration and mining for a range of different commodities having worked throughout Australia and internationally and is one of
the most experienced professionals in critical minerals projects notably vanadium and its products and battery minerals.
Mr Burton is a geologist and graduate from McGill University, Canada; a graduate of the Australian Institute of Directors and
AusIMM. He has managed successful corporate activities, mineral exploration, feasibility, FEED, and research study programs
and in training and mentoring staff having previously held senior and executive roles at Anglo American, De Beers Ltd, Normandy
Mining Ltd and Minotaur Exploration Ltd.
Mr Burton was most recently at TNG Ltd, (now TiVan Ltd), where he was instrumental in resource discoveries and establishing a
portfolio of quality exploration assets driving the company to a market capital value of over $100M and developing of the
companies critical mineral Vanadium and battery mineral alternative energy strategies.
Mr Burton has a relevant interest in 10,875,590 ordinary fully paid shares, 1,208,399 options to acquire fully paid shares at $0.019
each, exercisable on or before 30.11.2026, and 30,000,000 incentive options to acquire fully paid shares at $0.018716 each,
vesting upon specified milestones being achieved by the Company, and if vested, exercisable on or before 6.12.2025. Mr Burton
is considered to be an independent director.
DIRECTORS’ REPORT
- Page 19 -
Michael Povey
Non-Executive Technical Director
Mr Povey is a mining engineer with over 35 years worldwide experience in the resource sector. This experience has encompassed
a wide range of commodities and included senior management positions in mining operation and the explosives industry in Africa,
North America and Australia. During this time, he has been responsible for general and mine management, mine production,
project evaluation, mine feasibility studies and commercial contract negotiations.
Mr Povey has a relevant interest in 5,000,000 ordinary fully paid shares, and 21,797,945 partly paid ordinary shares. Mr Povey is
considered to be an independent director.
Roger Smith
Non-Executive Director
Mr Smith has served on a number of boards of listed companies as both a Non-Executive Chairman and Non-Executive Director
as well as having held a number of proprietary company directorships. Mr Smith has been successful in the operation of
wholesale/retail businesses, property development and the hotel industry.
Mr Smith has a relevant interest in 37,842,661 ordinary fully paid shares, 31,469,178 partly paid ordinary shares and 8,267,239
options to acquire fully paid shares at $0.019 each, exercisable on or before 30.11.2026. Mr Smith is considered to be an
independent director.
Rudolf Tieleman
Group Company Secretary
AUDIT COMMITTEE
At the date of this report the Group does not have a separately constituted Audit Committee as all matters normally considered
by an audit committee are dealt with by the full Board.
REMUNERATION COMMITTEE
At the date of this report, the Group does not have a separately constituted Remuneration Committee and as such, no separate
committee meetings were held during the year. All resolutions made in respect of remuneration matters were dealt with by the
full Board.
MEETINGS OF DIRECTORS
During the financial year ended 30 June 2024, the following director meetings were held:
Eligible to Attend
Attended
V Nikolaenko
11
11
P Burton
11
11
M Povey
11
11
R Smith
11
11
REMUNERATION REPORT (Audited)
Names of and positions held by key management personnel (defined by the Australian Accounting Standards as being “those
people having authority and responsibility for planning, directing, and controlling the activities of an entity, either directly or
indirectly. This includes an entity's directors”) in office at any time during the financial year are:
Key Management Person
Position
Vladimir Nikolaenko
Executive Chairman
Paul Burton
Managing Director
Michael Povey
Non-Executive Technical Director
Roger Smith
Non-Executive Director
Jan De Jager
Chief Executive Officer (Appointed 13.5.2024)
Rudolf Tieleman
Group Company Secretary
The Group’s policy for determining the nature and amounts of emoluments of key management personnel is set out below:
DIRECTORS’ REPORT
- Page 20 -
Key Management Personnel Remuneration and Incentive Policies
At the date of this report, the Group does not have a separately constituted Remuneration Committee (“Committee”) as all
matters normally considered by such a Committee are dealt with by the full Board. When constituted, its mandate will be to make
recommendations to the Board with respect to appropriate and competitive remuneration and incentive policies (including basis
for paying and the quantum of any bonuses), for key management personnel and others as considered appropriate to be singled
out for special attention, which:
motivates them to contribute to the growth and success of the Group within an appropriate control framework;
aligns the interests of key leadership with the interests of the Group’s shareholders;
are paid within any limits imposed by the Constitution and make recommendations to the Board with respect to the
need for increases to any such amount at the Group’s annual general meeting; and
in the case of directors, only permits participation in equity-based remuneration schemes after appropriate disclosure
to, due consideration by, and with the approval of the Group’s shareholders.
Non-Executive Directors
Non-executive directors are not provided with retirement benefits other than statutory superannuation entitlements,
where applicable.
To the extent that the Group adopts a remuneration structure for its non-executive directors other than in the form of
cash and superannuation, disclosure shall be made to stakeholders and approvals obtained as required by law and the
ASX listing rules.
Incentive Plans and Benefits Programs
The Board, acting in its capacity as a Remuneration Committee, is to:
review and make recommendations concerning long-term incentive compensation plans, including the use of equity-
based plans, administer equity-based and employee benefit plans and discharge any responsibilities under those
plans, including making and authorising grants, in accordance with the terms of those plans;
ensure that, where practicable, incentive plans are designed around appropriate and realistic performance targets that
measure relative performance and provide remuneration when they are achieved; and
review and, if necessary, improve any existing benefit programs established for employees.
Retirement and Superannuation Payments
No prescribed benefits were provided by the Group to directors by way of superannuation contributions during the year.
Non-Executive Director and Executive Remuneration
The remuneration of non-executive directors may not exceed in aggregate in any financial year the amount fixed by the
Group. The Board has previously agreed to set remuneration for non-executive directors at $3,500 per month and the
Chairman at $5,000 per month once working capital and cashflow of the Group allowed.
During the year ended 30 June 2024, the non-executive directors received an annualised director’s fee of $30,000 and
the Chairman received an annualised fee of $48,000 (no change from 2023).
Relationship between Group Performance and Remuneration
There is no relationship between the financial performance of the Group for the current or previous financial year and the
remuneration of the key management personnel.
Remuneration is set having regard to market conditions and encourage the continued services of key management
personnel.
Use of Remuneration Consultants
The Group did not employ the services of any remuneration consultant during the financial year ended 30 June 2024.
Employment and Consultant Agreements
An employment agreement has been entered into with Mr Burton which agrees a total Fixed Remuneration of $300,000
per annum (plus statutory superannuation entitlements), standard terms and conditions for agreements of its nature,
including confidentiality, retention of intellectual property and leave. Subsequent to shareholders’ approval being
granted on xx November 2023, he was granted a total of 30,000,000 Executive Options. These Options expire on
6 December 2025, are exercisable at $0.018716 each, and vest upon the following milestones being achieved:
DIRECTORS’ REPORT
- Page 21 -
o
An initial 10,000,000 Executive Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above
a price which is 50% greater than the Nominated Share Price;
o
A further 10,000,000 Executive Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above
a price which is 100% greater than the Nominated Share Price; and
o
A further 10,000,000 Executive Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above
a price which is 200% greater than the Nominated Share Price.
During the year, a contract was entered into with Mr De Jager’s related company, effective from 13 May 2024 whereby
SRN will make equal monthly payments of $27,500 (inclusive of statutory superannuation entitlements, exclusive of GST)
for an ongoing term, with either party being able to terminate the agreement at any time with one month’s notice after a
probationary period. The agreement contains standard terms and conditions for arrangements of this nature, including
undertaking as to confidentiality, and retention of intellectual property;
He, or his nominee, will be entitled to be issued with a total of 30,000,000 Options 91 days after his commencement date;
the Options will expire on the date which is the earlier of two years from that date of issue, or ceasing to be employed in
the designated role as CEO;
Each Option will be exercisable at a price (Nominated Exercise Price), calculated as being 25% higher than the 1 intra-
day Volume Weighted Average Price (VWAP) of ASX:SRN on the ASX trading day immediately before the day of
commencement (Nominated Share Price);
The Options shall vest upon the following milestones being achieved:
o
An initial 10,000,000 Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above a price
which is 50% greater than the Nominated Share Price;
o
A further 10,000,000 Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above a price
which is 100% greater than the Nominated Share Price; and
o
A further 10,000,000 Options shall vest upon the 10-day VWAP of ASX:SRN shares being at or above a price
which is 200% greater than the Nominated Share Price.
Other than the above detailed agreements with Messrs Burton and De Jager, the current directors and company secretary
do not have employment contracts with the Group save to the extent that the Group’s constating documents comprise
the same.
Key Management Personnel Remuneration
Year ended 30 June 2024
Key Management Persons
Short-term benefits
Fees & contractual
payments (Including
superannuation)
($)
Total cash and
cash equivalent
benefits
($)
Share-based
payments*
($)
Total
($)
Vladimir Nikolaenko
348,000
348,000
-
348,000
Paul Burton
333,000
333,000
135,000
468,000
Michael Povey
30,000
30,000
-
30,000
Roger Smith
30,000
30,000
-
30,000
Jan De Jager (Appointed
13.5.2024)
44,678
44,678
-
44,678
Rudolf Tieleman
66,000
66,000
-
66,000
Total
851,678
851,678
135,000
986,678
*See ‘Share-based compensation’ (Refer Note 23) and Note 1(o) Share-based payments: for observations regarding the
ascribed (notional) values
DIRECTORS’ REPORT
- Page 22 -
Key Management Personnel Remuneration (Continued)
Year ended 30 June 2023
Key Management Persons
Short-term benefits
Fees & contractual
payments (Including
superannuation)
($)
Total cash and
cash equivalent
benefits
($)
Total
($)
Vladimir Nikolaenko
348,000
348,000
348,000
Paul Burton (Appointed
6.2.2023)
133,265
133,265
133,265
Michael Povey
30,000
30,000
30,000
Roger Smith
30,000
30,000
30,000
Rudolf Tieleman
66,000
66,000
66,000
Total
607,265
607,265
607,265
Key Management Personnel are owed a total of $36,900 (including applicable GST) as at 30 June 2024 in respect
of costs accrued up to 30 June 2024:
INTERESTS HELD BY DIRECTORS, OTHER KEY MANAGEMENT PERSONNEL and RELATED PARTIES
The number of shares and partly paid contributing shares in the Group held at the beginning and end of the year and net
movements during the financial year by directors, other key management personnel and/or their related entities are set out
below:
30 June 2024:
Name
Balance at the
start of the year
Movements
during the year
Balance at the
end of the year
Vladimir Nikolaenko
Fully paid ordinary shares
Partly paid ordinary shares
226,918,376
67,188,767
43,214,799
-
270,133,175
67,188,767
Paul Burton
Fully paid ordinary shares
9,667,191
1,208,399
10,875,590
Michael Povey
Fully paid ordinary shares
Partly paid ordinary shares
5,000,000
21,797,945
-
-
5,000,000
21,797,945
Roger Smith
Fully paid ordinary shares
Partly paid ordinary shares
29,575,422
31,469,178
8,267,239
-
37,842,661
31,469,178
Jan De Jager (Appointed 13.5.2024)
Fully paid ordinary shares
-
4,100,000
4,100,000
Rudolf Tieleman
Partly paid ordinary shares
*Balance as at date of re-appointment
20,000,000
2,500,000
22,500,000
Total ordinary shares
Total partly paid contributing
shares
271,160,989
140,455,890
56,790,437
2,500,000
327,951,426
142,955,890
DIRECTORS’ REPORT
- Page 23 -
INTERESTS HELD BY DIRECTORS, OTHER KEY MANAGEMENT PERSONNEL and RELATED PARTIES (Continued)
30 June 2023:
Name
Balance at the
start of the year
Movements
during the year
Balance at the
end of the year
Vladimir Nikolaenko
Fully paid ordinary shares
Partly paid ordinary shares
171,768,376
137,188,767
55,150,000
(70,000,000)
226,918,376
67,188,767
Paul Burton
Fully paid ordinary shares
-
9,667,191
9,667,191
Michael Povey
Fully paid ordinary shares
Partly paid ordinary shares
5,000,000
21,797,945
-
-
5,000,000
21,797,945
Roger Smith
Fully paid ordinary shares
Partly paid ordinary shares
29,575,422
31,469,178
-
-
29,575,422
31,469,178
Rudolf Tieleman
Partly paid ordinary shares
*Balance as at date of re-appointment
20,000,000
-
20,000,000
Total ordinary shares
Total partly paid contributing
shares
206,343,798
210,455,890
64,817,191
(70,000,000)
271,160,989
140,455,890
Options held by Directors, Other Key Management Personnel and Related Parties
The number of options over fully paid ordinary shares in the Group held at the beginning and end of the year and net movements
during the financial year by key management personnel and/or their related entities are set out below:
30 June 2024:
Name
Balance at
the start of
the year or
date of
appointment
Granted
during the
year
Balance at the
end of the
year or date of
appointment
Vladimir Nikolaenko
-
28,364,799
28,364,799
Paul Burton
-
31,208,399
31,208,399
Michael Povey
-
-
-
Roger Smith
-
8,267,239
8,267,239
Jan De Jager
(Appointed 13.5.2024)
-
-
-
Rudolf Tieleman
-
2,500,000
2,500,000
Total
-
70,340,437
70,340,437
30 June 2023:
At the end of the financial year ended 30 June 2023, the Company had no options on issue.
General
During this reporting period, SRN entered into an agreement with Mutual Holdings Pty Ltd in relation to additional amounts
payable as a consequence of ASX announcements advising of increased JORC resources, and as detailed in Note 17.
Other than as disclosed above, there were no other transactions conducted between the Group and KMP or their related parties
apart from those disclosed above relating to equity, that were conducted other than in accordance with normal employee,
DIRECTORS’ REPORT
- Page 24 -
customer or supplier relationships on terms no more favourable than those reasonably expected under the arm’s length
dealings with unrelated parties.
End of Remuneration Report.
EMPLOYEES
On 30 June 2024, aside from the Managing Director, the Group has two other employees (As at 30 June 2023 - two other
employees).
CORPORATE STRUCTURE
Surefire is a no liability company incorporated and domiciled in Australia.
ACCESS TO INDEPENDENT ADVICE
Each director has the right, so long as he is acting reasonably in the interests of the Group and in the discharge of his duties
as a director, to seek independent professional advice and recover the reasonable costs thereof from the Group.
The advice shall only be sought after consultation about the matter with the chairman (where it is reasonable that the
chairman be consulted) or, if it is the chairman that wishes to seek the advice or it is unreasonable that he be consulted,
another director (if that be reasonable).
The advice is to be made immediately available to all Board members other than to a director against whom privilege is
claimed.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Group has entered into agreements indemnifying, to the extent permitted by law, all the directors and officers of the Group
against all losses or liabilities incurred by each director and officer in their capacity as directors and officers of the Group. During
the year, an amount of $9,332 (net of GST) was incurred as insurance premiums for this purpose.
OPTIONS
As at the date of this report the Company has the following options on issue:
351,072,907 options issued free of charge as part of the non-renounceable rights issue conducted in December 2023;
and
30,000,000 options issued to Mr Burton as Managing Director on 6 December 2023 after being approved at the
Company’s AGM.
For details of options exercised by directors and other key management personnel, refer to the Remuneration Report above.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Group, or to intervene in any proceedings to which the Group is a party, for the purpose of taking responsibility on behalf of the
Group for all or part of those proceedings.
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 in this
annual report.
This report has been signed in accordance with a resolution of directors.
Signature of Vladimir Nikolaenko noted as having been affixed with approval
For and on behalf of the Directors
Mr Vladimir Nikolaenko
Executive Chairman
30 September 2024
- Page 25 -
Auditor’s Independence Declaration
To those charged with the governance of Surefire Resources NL
As auditor for the audit of Surefire Resources NL for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have
been:
(i)
no contraventions of the independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)
no contraventions of any applicable code of professional conduct in relation to the audit.
Signature of Elderton Audit Pty Ltd noted as having been affixed with approval
Elderton Audit Pty Ltd
Signature of Sajjay Cheema noted as having been affixed with approval
Sajjad Cheema
Audit Director
Perth
30 September 2024
CONSOLIDATED ENTITY DISCLOSURE STATEMENT and
CORPORATE GOVERNANCE STATEMENT
- Page 26 -
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
Name of Entity
Type of
Entity
Trustee,
Partner or
Participant in
Joint Venture
% of Share
Capital Held
Country of
Incorporation
Australian
Resident or
Foreign
Resident (for
tax purposes)
Foreign Tax
Jurisdiction(s)
of Foreign
Residents
Surefire Resources NL
Body
Corporate
N/A
N/A
Australia
Australia
N/A
Argus Mining Pty Ltd
Body
Corporate
N/A
100%
Australia
Australia
N/A
Kadji Mining Pty Ltd
Body
Corporate
N/A
100%
Australia
Australia
N/A
Suretec Solutions Pty Ltd
Body
Corporate
N/A
100%
Australia
Australia
N/A
VB Metals Pty Ltd
Body
Corporate
N/A
100%
Australia
Australia
N/A
CORPORATE GOVERNANCE STATEMENT
This statement is provided in compliance with the ASX Corporate Governance Council’s (the Council) Corporate Governance Principles and
Recommendations Fourth Edition (“Principles and Recommendations”).
The Group has resolved that for so long as it is admitted to the official lists of the ASX, it shall abide by the Principles and Recommendations, subject
however to instances where the Board of Directors that a Council recommendation is not appropriate to its particular circumstances.
The Board encourages all key management personnel, other employees, contractors and other stakeholders to monitor compliance with this
Corporate Governance manual and periodically, by liaising with the Board, management and staff, especially in relation to observable departures
from the intent of these policies and with any ideas or suggestions for improvement. Suggestions for improvements or amendments can be made at
any time by providing a written note to the chairman.
Website Disclosures
In order to streamline the content of this Annual Report and pursuant to the disclosure options mandated by the Council, the Group has elected to
publish its Corporate Governance Statement in compliance with ASX Listing Rule 4.10.3 on its website at www.surefireresources.com.au under the
“Corporate Governance” tab.
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2024
- Page 27 -
Notes
Year Ended
30 Jun 2024
($)
Year Ended
30 Jun 2023
($)
Revenue:
3
653,474
147,236
Expenses:
Administrative expenses
4
(1,307,492)
(754,936)
Director fees and consulting charges (excludes director share-
based payments)
(813,402)
(542,141)
Exploration expenses
(1,466,163)
(2,430,106)
Share-based payments
23
(135,000)
-
Loss before income tax expense
(3,068,583)
(3,579,947)
Income tax expense
5
-
-
Loss from continuing operations
(3,068,583)
(3,579,947)
Other comprehensive income for the year
Reversal of share-based payment reserve
-
106,183
Total Comprehensive loss for the year attributable to members of
the Group
(3,068,583)
(3,473,764)
Basic (loss) per share (cents per share)
7
(0.166)
(0.226)
Diluted (loss) per share (cents per share)
7
(0.166)
(0.226)
The accompanying notes form part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
- Page 28 -
Notes
As At
30 Jun 2024
($)
As At
30 June 2023
($)
Current Assets
Cash and cash equivalents
8
1,485,320
1,488,255
Other receivables
9
162,153
78,417
Total Current Assets
1,647,473
1,566,672
Non-Current Assets
Plant, office equipment and motor vehicles
10
20,592
29,705
Exploration and evaluation assets
17
12,697,000
3,754,000
Right of use asset
115,168
187,905
Total Non-Current Assets
12,832,760
3,971,610
TOTAL ASSETS
14,480,233
5,538,282
Current Liabilities
Trade and Other payables
11
928,473
520,484
Lease liability
12
72,045
68,538
Liability for acquisition of JORC defined resource
17
11,284,987
3,304,000
Total Current Liabilities
12,285,505
3,893,022
Non-Current Liabilities
Lease liability
12
43,716
115,761
Total Non-Current Liabilities
43,716
115,761
TOTAL LIABILITIES
12,329,221
4,008,783
NET ASSETS
2,151,012
1,529,499
Equity
Contributed equity
13
43,091,742
39,610,646
Reserves
13
209,000
-
Accumulated losses
(41,149,730)
(38,081,147)
TOTAL EQUITY
2,151,012
1,529,499
The accompanying notes form part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- Page 29 -
Contributed
Equity
(Net of costs)
($)
Reserves
($)
Accumulated
Losses
($)
Total
($)
Balance at 1.7.2022
38,560,488
735,616
(34,607,383)
4,688,721
Comprehensive Income
Operating (loss) for the year
-
-
(3,579,947)
(3,579,947)
Total comprehensive income for the year
-
-
(3,579,947)
(3,579,947)
Transactions with owners, in their capacity as owner, and
other transfers
Amount received on exercise of options
637,158
-
-
637,158
Less: Received in previous year
(629,433)
-
-
(629,433)
Amount received on conversion of partly paid shares into
fully paid shares
413,000
-
-
413,000
Reversal of share-based payments reserve
629,433
(735,616)
106,183
-
Total transactions with owners and other transfers
1,050,158
-
106,183
420,725
Balance at 30.6.2023
39,610,646
-
(38,081,147)
1,529,499
Balance at 1.7.2023
39,610,646
-
(38,081,147)
1,529,499
Comprehensive Income
Operating (loss) for the year
-
-
(3,068,583)
(3,068,583)
Total comprehensive income for the year
-
-
(3,068,583)
(3,068,583)
Transactions with owners, in their capacity as owner, and
other transfers
Issue of fully paid shares to corporate consultant for
services rendered
50,000
-
-
50,000
Placement of fully paid shares to professional and
sophisticated investors
2,000,000
-
-
2,000,000
Issue of fully paid shares pursuant to a Non-Renounceable
Rights Issue
1,643,452
-
-
1,643,451
Amount received on exercise of options
2,850
-
-
2,850
Capital raising expenses
(215,206)
-
-
(215,206)
Share-based payment to Managing Director as approved at
the Company’s AGM – see Note 23
-
135,000
-
135,000
Share-based payment to Broker – see Note 23
-
74,000
-
74,000
Total transactions with owners and other transfers
3,481,096
209,000
-
3,690,096
Balance at 30.6.2024
43,091,742
209,000
(41,149,730)
2,151,012
The accompanying notes form part of these consolidated financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 30 -
Notes
Year
Ended
30 Jun 2024
($)
Year
Ended
30 Jun 2023
($)
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
26,428
25,226
R&D rebates received
495,035
Payments to suppliers and employees
(2,198,480)
(1,581,767)
Net cash (used in) operating activities
14
(1,677,017)
(1,556,541)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant, office equipment, motor vehicles
(2,203)
(16,999)
Payments for new tenement prospects
(115,205)
(7,604)
Payments for acquisition of JORC defined resource
-
(450,000)
Loan advances – non-associated entity
(73,000)
-
Exploration and evaluation expenditure incurred
(1,328,593)
(1,971,604)
Net cash (used in) investing activities
(1,519,001)
(2,446,207)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares during the period
3,331,439
420,725
Proceeds from exercise of options issued as fully paid shares
after year end
2,850
-
Share issues expenses
(141,206)
-
Net cash from financing activities
3,193,083
420,725
Net increase (decrease) in cash held
(2,935)
(3,582,023)
Cash and cash equivalents at the beginning of the financial period
1,488,255
5,070,278
Cash and cash equivalents at the end of the financial period
1,485,320
1,488,255
The accompanying notes form part of these consolidated financial statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 31 -
NOTE 1
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. The financial statements are
for the consolidated entity consisting of Surefire Resources NL and its subsidiaries. The financial statements are presented in the
Australian currency. Surefire Resources NL is a no liability company, domiciled and incorporated in Australia. The financial statements
were authorised for issue by the directors on 30 September 2024. The directors have the power to amend and reissue the financial
statements.
(a) Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board and the Corporations Act 2001. Surefire Resources NL is a for-profit entity for the
purpose of preparing the financial statements.
Going concern
The financial report has been prepared on the going concern basis, which contemplated the continuity of normal business activity and
the realisation of assets and settlement of liabilities in the normal course of business.
As disclosed in the financial statements, the Group incurred a loss of $3,068,583 and had net operating cash outflows of $1,677,017.
These conditions indicate a material uncertainty that may cast significant doubt about the Group’s ability to continue as a going concern.
The ability of the entity to continue as a going concern is dependent on securing additional capital raising activities to continue its
operational and exploration activities.
Should the entity not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than
in the ordinary course of business, and at amounts that differ from those stated in the financial statements and that the financial report
does not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be
necessary should the entity not continue as a going concern
The Company has entered into an agreement with Mutual Holdings Pty Ltd, a company associated with Surefire’s substantial shareholder
Mr Vladimir Nikolaenko (refer Note 17), whereby Mutual Holdings Pty Ltd has agreed that it will not make any demand for payment of the
amounts payable to it and any accrued interest, which would have the effect of placing Surefire into a financial position of not being able
to pay its debts as and when they fell due, for a period of twelve months from the date of signing the Deed of Amendment dated 15 March
2024. If at the end of that twelve-month period, there remains a balance payable in respect of any payments due, Mutual Holdings Pty Ltd
will be approached to renew the offer.
Compliance with IFRS
The consolidated financial statements of the Surefire Resources NL Group also comply with International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB).
Adoption of new and revised accounting standards
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
Historical cost convention and going concern basis
These financial statements have been prepared under the historical cost convention, as modified by the revaluation of selected non-
current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. These financial
statements have been prepared on the going concern basis.
(b) Principles of consolidation
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group
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 to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group.
They are de-consolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses
are also eliminated unless the transaction provides evidence of the impairment of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and
other comprehensive income, statement of changes in equity and statement of financial position respectively.
(ii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of
the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 32 -
interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of Surefire
Resources NL.
When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value with the change in carrying
amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the
retained interest as an associate, jointly controlled entity or financial asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted for as if the group had directly disposed of the related assets or liabilities.
This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or associate is reduced but joint control or significant influence is retained, only a
proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss where
appropriate.
(c) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has
been identified as the full board of Directors.
(d) Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian
dollars, which is Surefire Resources NL's functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. They are deferred in
equity if they are attributable to part of the net investment in a foreign operation.
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a
functional currency different from the presentation currency are translated into the presentation currency as follows:
assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that
statement of financial position;
income and expenses for each statement of profit and loss and other comprehensive income are translated at average exchange
rates (unless that is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other
financial instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign
operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to
profit or loss, as part of the gain or loss on sale.
(e) Revenue recognition
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial assets.
(f) Income tax
The income tax expense or revenue for the year is the tax payable on the current year’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.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the Company’s subsidiaries and associated operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to
interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
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 consolidated 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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 33 -
amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments
in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable
that the differences will not reverse in the foreseeable future.
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 asset 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.
(g) Leases
Leases where a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as
operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on
a straight-line basis over the period of the lease.
(h) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher
of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or
groups of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.
(i) Cash and cash equivalents
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, 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 insignificant risk of changes in value.
(j) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument.
For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (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 significant financing component
or if the practical expedient was applied as specified in AASB 15.63.
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 or loss
On the basis of the two primary criteria:
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets
A financial asset is subsequently measured at amortised cost when it meets the following conditions:
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 is subsequently measured at fair value through other comprehensive income when it meets the following conditions:
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 34 -
the business model for managing the financial asset 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.
Financial liabilities
Financial liabilities are subsequently measured at:
amortised cost; or
fair value through profit or 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 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.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense over
in profit or loss over the relevant period.
The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the
estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if it is:
incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in an
effective hedging relationship)
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated
hedging relationship.
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity, net of any tax effects.
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 a financial asset:
the right to receive cash flows from the asset has been expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the entity no longer controls the asset (i.e. it has no practical ability to make unilateral
decisions to sell the asset to a
third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the
consideration received, and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss
previously accumulated in the investment revaluation reserve is reclassified to profit or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment’s revaluation reserve is not reclassified to profit or loss but is
transferred to retained earnings.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 35 -
Impairment of financial assets
An impairment loss is recognised for the expected credit losses on financial assets when there is an increased probability that the
counterparty will be unable to settle an instrument’s contractual cash flows on the contractual due dates, a reduction in the amounts
expected to be recovered, or both. The probability of default and expected amounts recoverable are assessed using reasonable and
supportable past and forward-looking information that is available without undue cost or effort. The expected credit loss is a probability-
weighted amount determined from a range of outcomes and takes into account the time value of money.
For trade receivables, material expected credit losses are measured by applying an expected loss rate to the gross carrying amount. The
expected loss rate comprises the risk of a default occurring and the expected cash flows on default based on the aging of the receivable.
The risk of a default occurring always takes into consideration all possible default events over the expected life of those receivables (“the
lifetime expected credit losses”). Different provision rates and periods are used based on groupings of historic credit loss experience by
product type, customer type and location.
For intercompany loans that are repayable on demand, expected credit losses are based on the assumption that repayment of the loan
is demanded at the reporting date. If the subsidiary does not have sufficient accessible highly liquid assets in order to repay the loan if
demanded at the reporting date, an expected credit loss is calculated. This is calculated based on the expected cash flows arising from
the subsidiary and weighted for probability likelihood variations in cash flows.
(k) Plant and equipment
All plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to
the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance
are charged to the statement of profit and loss and other comprehensive income during the reporting period in which they are incurred.
Depreciation of plant and equipment is calculated using the prime cost method to allocate their cost or revalued amounts, net of their
residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the
shorter lease term. The rates are 50% per annum.
Depreciation of motor vehicles are calculated using the prime cost method to allocate their cost or revalued amounts, net of their residual
values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter
lease term. The rates are 20% per annum.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting 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 (note 1(h)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the statement of profit
and loss and other comprehensive income.
(l) Exploration and evaluation expenditure
Exploration and evaluation costs related to an area of interest are expensed as incurred except where they may be carried forward as an
item in the statement of financial position where the rights of tenure of an area are current and one of the following conditions is met:
the costs are expected to be recouped through successful development and exploitation of the area of interest, or alternatively,
by its sale; or
exploration and/or evaluation activities in the area of interest have not at the reporting date reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations
in, or in relation to, the area of interest is continuing.
Exploration and evaluation expenditure is written-off when it fails to meet at least one of the conditions outlined above or an area of
interest is abandoned. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest
that the carrying amount exceeds the recoverable amount, the impairment loss will be measured in accordance AASB 6.
(m) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year which are unpaid.
The amounts are unsecured, non-interest bearing and are paid on normal commercial terms.
(n) Employee benefits
Wages and salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12 months of the
reporting date are recognised in other payables in respect of employees’ services up to the reporting date and are measured at the
amounts expected to be paid when the liabilities are settled.
(o) Share-based payments
The Group may provide benefits to employees (including directors) of the Group, and to vendors and suppliers, in the form of equity-based
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 36 -
payment transactions, whereby employees render services, or where vendors sell assets to the Group, in exchange for shares or rights
over shares (‘equity-settled transactions’).
The cost of equity-settled transactions with employees is measured by reference to the “fair value”, not market value. The “fair value” is
determined in accordance with Australian Accounting Standards. The Directors do not consider the resultant value as determined in
accordance with Australian Accounting Standards (such as a possible application of the Black-Scholes European Option Pricing Model)
represents market value. In the case of share options issued, in the absence of a reliable measure, AASB 2 Share-based Payments
prescribes the approach to be taken to determining the fair value. Other models may be used.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the
performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting
date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which
the vesting period has expired and (ii) the number of options that, in the opinion of the directors of the Group, will ultimately vest. This
opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of market
performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date.
No expense is recognised for options that do not ultimately vest, except for options where vesting is conditional upon a market condition.
Where an option is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the option
is recognised immediately. However, if a new option is substituted for the cancelled option, and designated as a replacement option on
the date that it is granted, the cancelled and new option are treated as a modification of the original option.
(p) Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds.
(q) Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the company, 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.
(ii) 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.
(r) 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.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the
reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets,
liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical
experience and on other various factors, including expectations of future events, management believes to be reasonable under the
circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements,
estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
(refer to the respective notes) within the next financial year are discussed below.
(s) Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation are based on the best estimates of the directors.
These estimates take into account both the financial performance and position of the Group as they pertain to current income taxation
legislation, and the directors understanding thereof. No adjustment has been made for pending or future taxation legislation. The current
income tax position represents that directors’ best estimate, pending an assessment by the Australian Taxation Office.
(t) Environmental issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending or enacted environmental legislation
and the directors understanding thereof. At the current stage of the Group’s development and its current environmental impact, the
directors believe such treatment is reasonable and appropriate.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 37 -
(u) Share-based payments
Share-based payment transactions, when made in the form of options to acquire ordinary shares, are valued using an appropriately
selected model. Models use assumptions and estimates as inputs.
Whilst the Directors do not consider the result derived by the consultants is in anyway representative of the market value of the share
options issued, in the absence of reliable measure for the same, AASB 2 Share-based Payments prescribes the fair value be determined
by applying a generally accepted valuation methodology. The Black-Scholes European Option Pricing Model is an industry accepted method of
valuing equity instruments, at the date of grant.
NOTE 2
OPERATING SEGMENTS
Segment Information
Identification of reportable segments
The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the board of
directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group's principal
activity is mineral exploration.
Revenue and assets by geographical region
The Group's revenue is received from sources and assets located wholly within Australia.
Major customers
Due to the nature of its current operations, the Group has not generated or provided any products and services during the year.
2024
2023
($)
($)
NOTE 3
REVENUE
Interest received
26,428
25,227
Old liabilities written off
132,011
122,009
R&D Grant received
495,035
-
653,474
147,236
NOTE 4
ADMINISTRATIVE EXPENDITURES
Other Expenses
Audit fees
29,936
29,200
Occupancy and serviced office costs
81,581
73,178
Filing and ASX fees
92,208
59,000
Legal fees
70,838
26,002
Other expenses from continuing operations
1,032,929
567,556
1,307,492
754,936
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 38 -
2024
2023
($)
($)
NOTE 5
INCOME TAX EXPENSE
The components of tax expense comprise:
Current tax
-
-
Deferred tax asset/liability
-
-
-
-
The prima facie tax on loss from ordinary activities before income tax is reconciled
to income tax as follows:
Loss from continuing operations before income tax
3,068,583
3,579,947
Prima facie tax benefit attributable to loss from continuing operations before
income tax at 30%)
920,575
1,073,984
Tax effect of Non-allowable items
End of year accruals
201,477
46,617
Brought forward accruals
(17,923)
(6,667)
Deferred tax benefit on tax losses not brought to account
(1,104,129)
(1,113,934)
Income tax attributable to operating loss
-
-
Unrecognised deferred tax assets
The Group has accumulated tax losses of $33,771,416 (2023: $30,827,997).
The potential deferred tax benefit of these losses at the current corporate tax rate ($10,131,425) will only be recognised if:
(i) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the losses and
deductions to be released;
(ii) the Group continues to comply with the conditions for deductibility imposed by the law; and
(iii)
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the losses.
NOTE 6
AUDITORS REMUNERATION
Amounts received or due and receivable by the auditors of the Group for:
Auditing and reviewing the financial report
29,936
29,200
29,936
29,200
NOTE 7
EARNINGS PER SHARE
The following reflects the earnings and share data used in the calculation of
basic and diluted earnings per share
Loss for the year
(3,068,583)
(3,579,947)
Earnings used in calculating basic and diluted earnings per share
(3,068,583)
(3,579,947)
Weighted average number of ordinary shares used in calculating basic
earnings per share
1,846,476,179
1,586,045,908
Weighted average number of ordinary shares used in calculating diluted
earnings per share
1,846,476,179
1,586,045,908
The Group had no options on issue (2022 – also none) over fully paid ordinary shares at balance date and there was therefore no impact
on the determination of diluted earnings per share.
NOTE 8
CASH AND CASH EQUIVALENTS
Cash at bank
1,485,320
1,488,255
1,485,320
1,488,255
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 39 -
2024
2023
($)
($)
NOTE 9
OTHER RECEIVABLES
Tenement receivables
82,809
-
Net tax receivables
19,601
49,674
Prepayments
59,743
28,743
162,153
78,417
NOTE 10
PLANT, OFFICE EQUIPMENT and MOTOR VEHICLES
Cost
107,637
105,434
Accumulated depreciation
(87,045)
(75,729)
Net book amount
20,592
29,705
Opening net book amount
29,705
49,232
Additions
2,203
17,000
Depreciation charge
(11,316)
(36,527)
Closing net book amount
20,592
29,705
NOTE 11
TRADE AND OTHER PAYABLES *
Trade payables (2023 includes disputed payables amounting to $179,582 – see
Note 20)
190,600
365,094
Other payables and accrued expenses - includes payable to HGM
737,873
155,390
928,473
520,484
* All Trade and Other Payables are non-interest bearing
NOTE 12 LEASE LIABILITY
Lease liability in relation to right-of-use of leased offices at 10/100 Mill Point Road
South Perth WA
Current Liability
72,045
68,538
Non-Current Liability
43,716
115,761
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 40 -
NOTE 13
ISSUED CAPITAL
2024
2023
No.
$
No.
$
Contributed Equity – Ordinary Shares
At the beginning of the period
1,651,363,477
39,590,646
1,475,180,956
38,540,488
Options exercised at $0.006 each
-
-
106,182,521
637,095
Less: Amount received in previous year
-
-
-
(629,433)
Options exercised at $0.006 each
150,000
2,850
-
-
Conversion of partly paid shares into fully paid shares at
$0.0059 each
-
-
70,000,000
413,000
Transferred from share-based payments reserve
-
-
-
629,433
Issue of fully paid ordinary shares at $0.014 each as
share-based payment for services rendered
3,571,429
50,000
-
-
Placement at $0.011 each
181,818,186
2,000,000
-
-
NRRI
149,404,721
1,643,452
Cost of capital raising
-
(215,206)
-
-
Closing balance:
1,986,307,813
43,071,742
1,651,363,477
39,590,646
Contributed Equity – Partly paid Shares
At the beginning of the year
258,785,323
20,000
328,785,323
20,000
Conversion into fully paid shares at $0.0059 each
-
-
(70,000,000)
-
Closing balance:
258,785,323
20,000
258,785,323
20,000
TOTAL CONTRIBUTED EQUITY
43,091,742
39,610,646
Options
The movement of the options on issue during the financial year is set out below:
Exercise price
(cents)
Expiry date
Balance at
beginning of
year
Issued
Exercised
Lapsed
Balance at the
end of year
$0.019
30.11.2026
-
351,222,907
(150,000)
-
351,072,907
$0.018716
6.12.2025
-
30,000,000
-
-
30,000,000
2024
2023
($)
($)
Reserves
Share-based payments reserve
Opening balance
-
735,616
Reversal of share-based payments reserve
-
(735,616)
Share-based payments – value of options issued to Managing Director – See Note
23
135,000
-
Share-based payment – value of options issued to broker – See Note 23
74,000
-
Closing balance
209,000
-
(i)
The reserve is used to recognise the fair value of options issued.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 41 -
NOTE 14
CASH FLOW INFORMATION
2024
2023
($)
($)
Reconciliation of operating loss after income tax with funds used in operating
activities:
Operating (loss) after income tax
(3,068,583)
(3,591,039)
Non-cash Items
Depreciation of non-current assets
11,316
36,525
Right of use adjustment
4,199
(3,121)
Exploration tenement expenses shown in Investing Activities
1,443,798
1,979,208
Share-based payments – Note 23
135,000
-
Changes in operating assets and liabilities:
(Increase) / Decrease in trade and other receivables relating to operating activities
(10,736)
35,507
Increase / (Decrease) in trade and other payables in relation to operating activities
(192,011)
(13,620)
Cash (outflow) from operations
(1,677,017)
(1,556,540)
NOTE 15
TENEMENT EXPENDITURES CONDITIONS AND OTHER COMMITTMENTS
The Group has certain obligations to perform minimum exploration work on the tenements in which it has an interest. These obligations
may in some circumstances, be varied or deferred. Tenement rentals and minimum expenditure obligations which may be varied or
deferred on application are expected to be met in the normal course of business.
The minimum statutory expenditure commitments required to be spent on the granted tenements for the next twelve months amounts to
$515,000.
NOTE 16
TENEMENT ACCESS
Native Title and Freehold
All or some of the tenements in which the Group has an interest are or may be affected by native title.
The Group is not in a position to assess the likely effect of any native title impacting the Group.
The existence of native title and heritage issues represent, as a general proposition, a serious threat to explorers and miners, not only in
terms of delaying the grant of tenements and the progression of exploration development and mining operations, but also in terms of
costs arising consequent upon dealing with aboriginal interest groups, claims for native title and the like.
As a general proposition, a tenement holder must obtain the consent of the owner of freehold before conducting operations on the
freehold land. Unless it already has secured such rights, there can be no assurance that the Group will secure rights to access those
portions (if any) of the Tenements encroaching freehold land but, importantly, native title is extinguished by the grant of freehold so if and
whenever the Tenements encroach freehold the Group is in the position of not having to abide by the Native Title Act in respect of the area
of encroachment albeit aboriginal heritage matters still be of concern.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 42 -
NOTE 17
LIABILITY FOR ACQUISITION OF JORC DEFINED MINERAL RESOURCE
During the current reporting period, Surefire advised on 5 December 2023 and 18 March 2024 that ASX announcements had triggered
certain payment obligations to Mutual Holdings Pty Ltd (“MH”) pursuant to the terms of a pre-existing agreement in respect of the
acquisition of the Victory Bore Project in April 2019 (“HGM Agreement”).
The Company’s shareholders approved any potential payments by the Company to MH at a general meeting held on 6 March 2019.
Shareholders should refer to that meeting’s Notice of Meeting for further details on the Company’s acquisition of Victory Bore and the
terms of the MH Agreement. MH is controlled by Mr Vladimir Nikolaenko, Surefire’s Executive Chairman.
The significantly increased mineral resources announced by way of both ASX releases triggered further payments by the Company to MH
of $8,293,000 under the terms of the HGM Agreement. When added to the $3,754,000 yet to be paid in respect of the previously
announced resource upgrades, this resulted in a total amount payable to MH of $12,047,000 (“Total Payment”). After deducting the cash
payment of $450,000 and the Offset Credit of $312,012.79, the balance payable to MH is $11,284,987.21.
The Company has advised that it proposed to settle the amount payable by a combination of cash and equity securities (subject to, and
conditional upon SRN obtaining shareholder approval in accordance with the requirements of the ASX Listing Rules and/or the
Corporations Act 2001 (Cth), as applicable).
The above proposal has the effect of MH having an option of meeting the requirement to pay some of the balance payable in the form of
equity rather than in cash (which the Company would only be able to fund by way of borrowings or by raising further equity). Payments in
equity would further align MH’s interests with those of all shareholders.
As from the date of execution of a Deed of Amendment dated 15 March 2024, SRN will be liable to pay interest to MH (subject to regulatory
approvals) at the rate of interest stipulated as the Benchmark Interest Rate as determined by the Australian Taxation Office pursuant to
Division 7A of Part III of the Income Tax Assessment Act 1936, currently 8.27% per annum, which non-compounding interest is to be
calculated on the outstanding daily balance.
In a further Deed of Amendment dated 16 August 2024, MH agreed that the Deed of Amendment dated 15 March 2024 be amended to
state that the balance owing in respect of the Triggered Payments is to be paid as and when funds will allow in respect of a period of twelve
months from the date of the Deed of Amendment executed 15 March 2024, with any payment to be limited to a maximum of twenty
percent (20%) of cash funds received by Surefire and/or its’ wholly owned subsidiaries (“Group”) from any corporate action or event
which will result in the Group receiving cash funds of any description; however during that twelve-month period, MH and the Surefire
Board may by mutual agreement pay a larger amount.
MH has agreed that it will not make any demand for payment of the amounts payable to it and any accrued interest, which would have the
effect of placing Surefire into a financial position of not being able to pay its debts as and when they fell due, for a period of twelve months
from the date of signing the Deed of Amendment dated 15 March 2024. If at the end of that twelve-month period, there remains a balance
payable in respect of the Amended Payments, MH will be approached to renew the offer, but entirely at MH’s option to do so.
As contemplated in those ASX announcements, the Company is in the process of preparing a Notice of Meeting calling for a general
meeting of shareholders (“General Meeting”) to seek the necessary approvals.
The resolutions to be considered would be to allow the Company to issue the following equity securities to MH:
the issue of 350,000,000 fully paid ordinary shares in SRN immediately upon shareholder approval being given, at a deemed issue
price of $0.008 each; and
the issue of 350,000,000 partly paid ordinary shares in SRN immediately upon shareholder approval being given, at $0.0001 each
(subject to a further call of $0.0079 each).
If approved, as a result of all of these equity securities being issued, and subsequent calls on the partly paid ordinary shares being
satisfied, the triggered payments due to be paid to MH would significantly reduce by $5,600,000.
In addition to the above, SRN’s ASX release advising that a pre-feasibility study had confirmed that Victory Bore, if developed as a mine,
would have an internal rate of return of not less than 20%, triggered an amount payable of $650,000. This together with the $8,293,000
noted above, results in additions to the Company’s JORC resources during the reporting period being booked at $8,943,000.
2024
2023
($)
($)
Exploration and evaluation assets:
Opening net book amount
3,754,000
-
Additions – refer to details above
8,943,000
3,754,000
Closing net book amount
12,697,000
3,754,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 43 -
NOTE 18
EVENTS SUBSEQUENT TO REPORTING DATE
Since the reporting date, SRN has made ASX announcements in relation to the following matters:
Dual listing on Frankfurt Stock Exchange;
Extension of MOU with Ajlan Mining and metals, Kingdom of Saudi Arabia;
Agreements announced with DRA Global Limited, Mid West Ports Authority;
Discovery of Extensive Copper-Zinc zone at Yidby Gold Project; and
Commencement of follow-up of exploration on extensive copper-zinc zones
Other than noted above or reported to ASX there have been no matters or circumstances that have arisen since 30 June 2024 which have
significantly affected or may significantly affect:
(a)
the Group’s operations in future years; or
(b)
the results of those operations in future years; or
(c)
the Group’s state of affairs in future years.
NOTE 19
CONTROLLED ENTITIES
Subsidiaries of Surefire Resources NL
Country of
Incorporation
2024
Percentage Owned
(%)
2023
Percentage Owned
(%)
Unaly Hill Pty Ltd
Australia
100%
100%
Argus Mining Pty Ltd
Australia
100%
100%
Kadji Mining Pty Ltd
Australia
100%
100%
VB Metals Pty Ltd (Incorporated 1.2.2024)
Australia
100%
-
Suretec Solutions Pty Ltd (Incorporated
25.1.2024)
Australia
100%
-
Associate of Surefire Resources NL
Oil & Gas SE Pty Ltd – company is dormant and
has not operated during this period
Australia
49%
49%
NOTE 20
RELATED PARTY AND RELATED ENTITY TRANSACTIONS
During the year, the following related party transactions were entered into by the company:
Name of the related entity
Total amount invoiced
(Excl GST)
Description of services
Corporate Admin Services Pty Ltd
$348,000 (2023: $348,000)
Executive chairman services and board fees
Minman Pty Ltd
$30,000 (2023: $30,000)
Non-executive technical directorial services and
geological consultancy
Halith Pty Ltd
$30,000 (2023: $30,000)
Non-executive directorial services
Mutual Holdings Pty Ltd
$8,293,000 (2023: $3,754,000)
Payment for JORC resources – See note 17
Particulars of contractual arrangements and financial benefits provided to the key management personnel are detailed in the directors’
report.
The total amount owing to current directors and/or director-related parties (including GST) on 30 June 2024 was $11,316,887
(2023: $182,112).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 44 -
NOTE 21
CONTINGENT LIABILITIES AND ASSETS
Contingent Liability on Acquisition of Victory Bore Tenement
In an Amendment to the Heads of Agreement for Sale of Tenement executed on 16 August 2018 between High Grade Metals Limited,
Acacia Mining Pty Ltd, Mutual Holdings Pty Ltd and Surefire Resources NL (and only if the Company has made a decision to mine within
the Victory Bore tenement area), Surefire will be required to pay a sum of $650,000 within 60 days of making such an announcement to
the ASX.
Other than noted above, these contingencies have NOT been included in the Financial Report and are subject to the respective conditions
being met in due course.
Native Title
As detailed in Note 16, tenements are commonly (but not invariably) affected by native title.
The Group is not in a position to assess the likely effect of any native title impacting the Group.
The existence of native title and heritage issues represent, as a general proposition, a serious threat to explorers and miners, not only in
terms of delaying the grant of tenements and the progression of exploration development and mining operations, but also in terms of
costs arising consequent upon dealing with aboriginal interest groups, claims for native title and the like.
NOTE 22
FINANCIAL INSTRUMENTS DISCLOSURE
(a)
Financial Risk Management Policies
The Group’s financial instruments consist of deposits with banks, receivables, financial assets and payables.
Risk management policies are approved and reviewed by the Board. The use of hedging derivative instruments is not contemplated
at this stage of the Group’s development.
Specific Financial Risk Exposure and Management
The main risks the Group is exposed to through its financial instruments, are interest rate and liquidity risks.
Interest Rate Risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a future change
in interest rates will affect future cash flows or the fair value of fixed rate financial instruments.
Liquidity Risk
The Group manages liquidity risk by monitoring forecast cash flows, cash reserves, liquid investments, receivables and payables.
Capital Risk
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern so that they may
continue to provide returns for shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities being mineral exploration, the Group does not have ready access to credit facilities, with
the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current
working capital position against the requirements of the Group to meet exploration programmes and corporate overheads. The
Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating
appropriate capital raising as required.
The working capital position of the Group at 30 June 2024 and 30 June 2023 was as follows:
2024
2023
($)
($)
Cash and cash equivalents
1,485,320
1,488,255
Other receivables
162,153
78,417
Trade and other payables
(928,473)
(520,484)
Lease liability
(72,045)
(68,538)
Liability for acquisition of JORC defined mineral resource *
(11,284,987)
(3,304,000)
Working capital position
(10,638,032)
(2,326,350)
* This liability is the subject of an agreement between the Company and Mutual Holdings Pty Ltd, a company associated with
Mr Nikolaenko who holds a 13.7% relevant interest in Surefire. – refer to Note 17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 45 -
Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial
assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the Statement of Financial
Position and notes to the consolidated financial statements.
There are no material amounts of collateral held as security at balance date.
The following table provides information regarding the credit risk relating to cash and cash equivalents based on credit ratings:
2024
2023
($)
($)
AAA rated
1,485,320
1,488,255
AA rated
-
-
A rated
-
-
The credit risk for counterparties included in trade and other receivables at balance date is detailed below.
Other receivables
162,153
78,417
(b)
Financial Instruments
The Group holds no derivative instruments, forward exchange contracts or interest rate swaps.
Financial Instrument composition and maturity analysis
The table below reflects the undiscounted contractual settlement terms for financial instruments.
2024
Weighted
Average
Effective
Interest Rate
%
Floating Interest
Rate
($)
Fixed Interest
Rate
($)
Non-Interest
Bearing
($)
Total
($)
Financial Assets:
Cash and cash equivalents
1,426,210
-
59,110
1,485,320
Trade and other receivables
-
-
162,153
162,153
Total Financial Assets
0.93%
1,426,210
-
221,263
1,647,473
Financial Liabilities:
Trade and other payables
-
-
(928,473)
(928,473)
Lease liability
-
-
(72,045)
(72,045)
Liability for acquisition of
JORC defined mineral
resource
-
-
(11,284,987)
(11,284,987)
Total Financial Liabilities
-
-
(12,285,505)
(12,285,505)
Net Financial (Liabilities)
-
-
(12,064,242)
(10,638,032)
2024
($)
Trade and other payables are expected to be paid as follows:
Less than 6 months
195,571
More than 6 months, less than 12 months
(732,902)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 46 -
2023
Weighted
Average
Effective
Interest Rate
%
Floating Interest
Rate
($)
Fixed Interest
Rate
($)
Non-Interest
Bearing
($)
Total
($)
Financial Assets:
Cash and cash equivalents
1,421,966
-
66,289
1,488,255
Trade and other receivables
-
-
78,417
78,417
Total Financial Assets
0.93%
1,421,966
-
144,706
1,566,672
Financial Liabilities:
Trade and other payables
-
-
(520,484)
(520,484)
Lease liability
-
-
(68,538)
(68,538)
Liability for acquisition of
JORC defined mineral
resource
-
-
(3,304,000)
(3,304,000)
Total Financial Liabilities
-
-
(3,893,022)
(3,893,022)
Net Financial (Liabilities)
-
-
(3,748,316)
(2,326,350)
2023
($)
Trade and other payables are expected to be paid as follows:
Less than 6 months
Includes $3,304,000 as a liability to Mutual Holdings Pty Ltd – refer to
Note 17.
(3,893,022)
(c)
Sensitivity Analysis – Interest rate risk
At 30 June 2024, if interest rates had changed by -/+ 100 basis points from the weighted average rate for the year, with all other
variables held constant, post-tax loss for the Group would have been decreased/increased by $1,112 (2023: Insignificantly lower
or higher) as a result of lower/higher interest income from cash and cash equivalents.
NOTE 23
SHARE-BASED PAYMENTS
The Group may provide benefits to employees (including directors if supported by shareholders), contractors, consultants and suppliers
of the Group in the form of share/equity-based payment transactions, whereby ordinary shares or options to acquire ordinary shares are
issued as an incentive to improve employee and shareholder goal congruence and to facilitate the provision of competitive packages.
The share-based payments expense recognised through profit and loss arising from the issue of these options are as follows:
Managing Director
$135,000
Total
$135,000
The share-based payments expense recognised through equity arising from the issue of these options are as follows:
Broker
$74,000
Total
$74,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- Page 47 -
The options issued during the year were valued using the Black-Scholes European Option Pricing Model which is the form
recommended under IFRS guidelines using the following option valuation input factors:
Options issued to the Managing Director expiring 6.12.2025:
Volume Weighted Share price for underlying fully paid ordinary Shares – $0.00957
Exercise price – $0.018716
Term – 2 years
Risk free rate – 3.74%
Annualised Volatility – 153%
Discount factor due to non-tradeability issues – 20%
Value per Option – 0.0045
Options issued to broker expiring 30.11.2026:
Volume Weighted Share price for underlying fully paid ordinary Shares – $0.0101
Exercise price – $0.019
Term – 2.964 years
Risk free rate – 4.35%
Annualised Volatility – 92.81%
Discount factor due to non-tradeability issues – 20%
Value per Option – 0.0037
NOTE 24
PARENT ENTITY INFORMATION
The following information relates to the parent entity, Surefire Resources NL.
The information presented here has been prepared using accounting policies consistent with those presented in Note 1.
2024
2023
($)
($)
Current assets
1,650,465
1,567,924
Non-current assets
12,833,160
3,971,810
Total assets
14,483,625
5,539,734
Current liabilities
(12,285,505)
(3,893,022)
Non-current liabilities
(43,716)
(115,761)
Total liabilities
(12,329,221)
(4,008,783
Contributed equity
43,091,742
39,716,829
Share-based payments reserve
209,000
-
Accumulated losses
(41,146,338)
(38,185,878)
Total equity
2,154,404
1,530,951
Profit/(Loss) for the year
(3,068,583)
(3,579,947)
Total comprehensive loss for the year
(3,068,583)
(3,579,947)
DIRECTORS' DECLARATION
- Page 48 -
The directors of the Group declare that:
1.
the accompanying consolidated financial statements and notes are in accordance with the Corporations Act 2001 and:
(a)
comply with Australian Accounting Standards and the Corporations Act 2001;
(b)
give a true and fair view of the financial position as at 30 June 2024 and performance for the year ended on that date
of the Group; and
(c)
the audited remuneration disclosures set out in the Remuneration Report section of the Directors’ Report for the year
ended 30 June 2024 complies with section 300A of the Corporations Act 2001;
2.
the Chief Executive Officer and Chief Financial Officer have both declared pursuant to section 295A(2) of the Corporations
Act 2001 that:
(a)
the financial records of the company for the financial year have been properly maintained in accordance with section
286 of the Corporations Act 2001;
(b)
the consolidated financial statements and the notes for the financial year comply with Australian Accounting
Standards;
(c)
the consolidated financial statements and notes for the financial year give a true and fair view; and
(d)
the consolidated entity disclosure statement for the financial year is true and correct.
3.
in the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable;
4.
the directors have included in the notes to the consolidated financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards; and
5.
the consolidated entity disclosure statement is true and correct.
This declaration is made in accordance with a resolution of the Board of Directors.
Signature of Vladimir Nikolaenko noted as having been affixed with approval
Mr Vladimir Nikolaenko
Executive Chairman
Dated 30 September 2024
- Page 49 -
Independent Audit Report to the members of Surefire Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Surefire Resources NL (‘the Company’) and its subsidiaries (collectively
referred to as ‘the Group’), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in
equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies, the consolidated entity disclosure statement 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 2024 and of its financial performance for
the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described as 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 (the code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 to the financial report, which describes that the ability of the Group to continue as a going
concern is dependent on securing additional capital raising activities to continue its operational and exploration
activities. As a result, there is material uncertainty related to events or conditions that may cast significant doubt on
the Company’s ability to continue as a going concern, and therefore whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts stated in the financial report. Our opinion is not modified
in respect of this matter.
- Page 50 -
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.
Share-based payments/benefits
Refer to the share-based payments of $135,000 to the managing director and $74,000 to brokers on the Statement of Financial
Performance and note 23
Key Audit Matter
How our audit addressed the matter
During the year, the company issued options to KMP and
brokers. Non-cash share-based payments/benefits are
considered to be a key audit matter due to:
The significance of the balances to KMP remuneration;
The level of judgement required in evaluating
management’s application of the requirements of
AASB 2 Share based Payment (“AASB 2”); and
Use of the Black-Scholes pricing valuation model to
determine the fair value of the options granted;
Our procedures included, amongst others:
Analyse contractual agreement to identify key terms and conditions
of the share-based payments issued and relevant vesting conditions
in accordance with AASB 2;
Evaluate management’s valuation methods and assess the
assumptions and inputs used;
Assess the amount recognised during the period against relevant
vesting conditions; and
Assess the appropriateness of the disclosures included in the
relevant notes to the financial statements.
Expenditure
Refer to total expenditure $3,722,057, accounting policy note 1(l) and note 4.
Key Audit Matter
How our audit addressed the matter
Expenditure is a substantial figure in the financial
statements of the Group, representing the majority of
shareholder funds spent during the financial year.
Given this represents a significant volume
of
transactions, we considered it necessary to assess
whether the Group’s expenses had been accurately
recorded, whether the services provided had been
delivered in the appropriate period, and whether all
expenses related to activities undertaken by Surefire
Resources NL.
Our audit work included, but was not restricted to, the following:
We examined the Group’s approval processes in relation to making
payments to its suppliers and employees.
We selected a sample of expenses using different systematic
sampling methods, and vouched each item selected to invoices
and other supporting documentation.
We reviewed post year-end payments and invoices to ensure that
all goods and services provided during the financial year were
recognised in expenses for the same period.
For exploration expenses, we assessed which tenements the
spending related to, to ensure funds were expended in relation to
the Group’s ongoing projects; and
From those charged with governance of the Group we requested
confirmations from all directors and other key management
personnel of the Group during the financial year of their
remuneration and any other transactions between them, their
related parties and the Group.
Exploration and Evaluation Assets ($12,697,000)
Refer to Note 17, accounting policy note 1(l).
Key Audit Matter
How our audit addressed the matter
The Group has capitalised significant exploration and
evaluation expenditures during the year.
As the carrying value of exploration and evaluation
assets represents a significant asset of the Group, we
considered it necessary to assess whether facts and
circumstances existed to suggest that the carrying
amount of this asset may exceed its recoverable
Our audit work included but was not restricted to the followings:
We ensured that evidence that the Group has valid rights to
explore in the areas represented by the capitalised exploration
and evaluation assets by obtaining independent searches of the
Group’s tenement holdings;
We enquired with management and reviewed budgets to ensure
that substantive expenditure on further exploration for and
- Page 51 -
amount. As a result, the asset was required to be
assessed for impairment.
evaluation of the mineral resources in the Group’s areas of interest
were planned;
We enquired with management, reviewed ASX announcements
made and reviewed minutes of meetings to ensure that the Group
has not decided to discontinue activities in any of its areas of
interest;
Other Information
The directors are responsible for the other information. The other information comprises the Review of Operations and
Directors’ Report and other information included in the Group’s annual report for the year ended 30 June 2024 but
does not include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained
in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, 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 Directors for the Financial Report
The Directors of the Company are responsible for the preparation of i) the financial report (other than the consolidated
entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001; and ii) the consolidated entity disclosure statement that is true and correct in accordance with
the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the
preparation of i) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and ii) the consolidated entity disclosure
statement that is true and correct and is free of misstatement, whether due to fraud or error.
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 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 the financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
Evaluate the appropriateness of accounting policies used in the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to
- Page 52 -
continue as going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on page 19 to page 24 in the directors' report for the year ended
30 June 2024.
In our opinion, the Remuneration Report of Surefire Resources NL, for the year ended 30 June 2024, 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.
Signature of Elderton Audit Pty Ltd noted as having been affixed with approval
Elderton Audit Pty Ltd
Signature of Sajjay Cheema noted as having been affixed with approval
Sajjad Cheema
Audit Director
Perth
30 September 2024
TENEMENT DETAILS
- Page 53 -
Project Area
Tenement
Number
Name
State
Status
Equity (%)
YIDBY GOLD PROJECT
E59/2426
Nynghan
WA
Granted
100
E59/2390
Yalgoo
WA
Granted
100
E59/2444
Yidby Hill
WA
Granted
100
E59/2845
Yidby
WA
Granted
100
NORTH PERENJORI
E70/5575
Kadji
WA
Granted
100
E59/2446
Perenjori 2
WA
Granted
100
SOUTH PERENJORI
E70/5311
Southwest
WA
Granted
100
E70/6402
White Pointer
WA
Granted
100
E70/5572
Fitzroy
WA
Granted
100
UNALY HILL
E57/1068
Unaly Hill
WA
Granted
(Retention)
100
VICTORY BORE
E57/1036
Victory Bore
WA
M Application
100
KOOLINE
E08/2373
Kooline-Wyloo
WA
Granted
100
MT FARMER
E59/2843
Mt Farmer
WA
Granted
100
OTHER INFORMATION
- Page 54 -
Additional information required by Australian Securities Exchange Ltd and not shown elsewhere in this report is as
follows. This information was current as at 24 September 2024.
Distribution of quoted equity securities:
Analysis of numbers of shareholders and option-holders by size of holding:
Category (Size of
Holding)
Fully Paid Ordinary Shares
Options
Number of
holders
Number of shares
Number of
holders
Number of options
1 to 1,000
81
17,951
6
800
1,001 to 5,000
34
113,093
44
133,814
5,001 to 10,000
31
272,572
30
223,324
10,001 to 100,000
1,183
60,647,404
129
4,789,742
100,001 and over
1,395
1,925,256,793
145
322,925,227
Total
2,724
1,986,307,813
354
328,072,907
The number of shareholdings held in less than marketable parcels is 1,112 holders of fully paid ordinary shares,
representing 4,295,578 shares.
Substantial shareholders:
The names of the substantial shareholders listed in the Group’s register as at 24 September 2024 as required to be
notified in accordance with section 671B of the Corporations Act 2001, are:
Shareholder Name
Number of
Fully Paid
Shares
% of Issued
Fully Paid
Share Capital
Vladimir Nikolaenko Group
270,133,175
13.60
Michael Giuliano
101,281,436
5.10
Total
371,414,611
18.70
Twenty largest shareholders – Quoted fully paid ordinary shares (ASX:SRN):
Shareholder Name
Number of
Shares
% of Issued
Share Capital
1.
Plato Mining Pty Ltd
151,990,589
7.65
2.
Mr Michael Giuliano
109,198,934
5.50
3.
Mutual Holdings Pty Ltd
78,750,000
3.96
4.
Halith Pty Ltd
36,366,098
1.83
5.
Mr Silas Tremain Haysom
36,000,000
1.81
6.
Ardglen Holdings Pty Ltd
25,528,444
1.29
7.
Star Lord Pty Ltd
25,475,000
1.28
8.
Sunset Capital Management Pty Ltd
23,215,028
1.17
9.
Kaliara Nominees Pty Ltd
22,245,000
1.12
10.
Prestcorp Pty Limited
21,569,117
1.09
11.
Mr Adam Andrew Macdougall
20,500,000
1.03
12.
Acuity Capital Investment Management Pty Ltd
20,000,000
1.01
13.
Janlize Pty Ltd
20,000,000
1.01
14.
Actionable Data Analytics Pty Ltd
17,494,773
0.88
15.
Mr Daniel Barnao
15,472,482
0.78
16.
Phoenix Ash Pty Ltd
15,000,000
0.76
OTHER INFORMATION
- Page 55 -
17.
Admark Investments Pty Ltd
14,000,000
0.70
18.
Mr Timothy John Nixon Binney & Mrs Dianne Pamela Binney
14,000,000
0.70
19.
Mr Paul Arnold Stokman
13,990,000
0.70
20.
Finclear Services Pty Ltd
12,561,688
0.63
Total
693,357,153
34.91
Twenty largest option-holders – quoted options to acquire fully paid ordinary shares at $0.019 each, expiring
30.11.2026 (ASX:SRNOD):
Option-holder Name
Number of
Options
% of Issued
Options
1.
Mr Michael Giuliano
43,000,000
12.25
2.
Mr Lemuel Cherloaba
30,000,000
8.55
3.
Spark Plus Pte Ltd
26,881,818
7.66
4.
Star Lord Pty Ltd
18,250,000
5.2
5.
Mrs Sraddha Niteshkumar Patel
17,870,830
5.09
6.
Citicorp Nominees Pty Limited
17,184,302
4.89
7.
Plato Mining Pty Ltd
15,503,840
4.42
8.
Mr Emanuel Curea
13,000,000
3.70
9.
Evolution Capital Pty Ltd
9,000,000
2.56
10.
Mutual Holdings Pty Ltd
8,750,000
2.49
11.
D'arcy Thoroughbreds Pty
7,450,000
2.12
12.
Mr Trilochana Reddy
6,000,000
1.71
13.
Mr Yasar Arafat Saiyed
5,500,000
1.57
14.
Halith Pty Ltd
5,390,627
1.54
15.
Mr Silas Tremain Haysom
4,590,000
1.31
16.
Guy Jones Pty Ltd
4,545,455
1.29
17.
Riverfort Global Opportunities PCC Ltd
4,545,455
1.29
18.
Ms Meixia Chen
4,494,901
1.28
19.
Mr Daniel Giovinazzo
4,000,000
1.14
20.
Mr Georgio Tannous
4,000,000
1.14
Total
249,957,228
71.20
Twenty largest shareholders – Unquoted partly paid ordinary shares (ASX:SRNAK):
Shareholder Name
Number of
Shares
% of Issued
Share Capital
1.
Plato Mining Pty Ltd
55,942,832
29.63
2.
First Investment Partners Pty Ltd
14,875,000
7.88
3.
Mercury Investments Pty Ltd
11,008,435
5.83
4.
Celtic Capital Pty Ltd
11,000,000
5.83
5.
Mungala Investments Pty Ltd
10,000,000
5.30
6.
Citicorp Nominees Pty Ltd
5,005,000
2.65
7.
Group Seventy Three Pty Ltd
4,000,000
2.12
8.
Social Investments Pty Ltd
4,000,000
2.12
9.
Agens Pty Ltd < The Mark Collins S/F A/c>
4,000,000
2.12
10.
Stevsand Holdings Pty Ltd
4,000,000
2.12
11.
Vulture Fish Pty Ltd
3,000,000
1.59
OTHER INFORMATION
- Page 56 -
12.
John Ceccon and Maria Lynn McLean (MCCM Super Fund A/c>
3,000,000
1.59
13.
AJ Loo Investments Pty Ltd
2,500,000
1.32
14.
George Monty Armstrong
2,250,000
1.19
15.
White Trading Pty Ltd
2,083,333
1.10
16.
Inverness Investments Pty Ltd
2,000,000
1.06
17.
Roncio Nominees Pty Ltd
2,000,000
1.06
18.
Tom and Angela Kouloukakis
1,875,000
0.99
19.
Minman Pty Ltd
1,797,945
0.95
20.
Kieran George Barratt
1,785,749
0.95
Total
146,123,294
77.40
All shareholders – Unquoted partly paid ordinary shares (ASX:SRNAN):
Shareholder Name
Number of
Shares
% of Issued
Share Capital
1.
Halith Pty Ltd
30,000,000
42.86
2.
Minman Pty Ltd
20,000,000
28.57
3.
RABMB Pty Ltd
20,000,000
28.57
Total
70,000,000
100.00
All option-holders – Unquoted managing director inventive options to acquire fully paid ordinary shares at
$0.018716 each, expiring 6.12.2025 (ASX:SRNAB):
Shareholder Name
Number of
Shares
% of Issued
Share Capital
1.
Bontur Investments Pty Ltd
30,000,000
100.00
Total
30,000,000
100.00
Summary of Issued Securities:
1,986,307,813 quoted fully paid ordinary shares (ASX:SRN)
351,072,907 quoted options to acquire fully paid ordinary shares at $0.019 each, expiring 30.11.2026 (ASX:SRNOD)
188,785,323 unquoted partly paid ordinary shares (ASX:SRNAK)
70,000,000 unquoted partly paid ordinary shares (ASX:SRNAN)
30,000,000 unquoted managing director incentive options to acquire fully paid ordinary shares at $0.018716 each,
expiring 6.12.2025 (ASX:SRNAB).
Buy-Back Plans
The Group does not have any current on-market buy-back plans.
OTHER INFORMATION
- Page 57 -
Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. On a show of hands every person
present who is a Member or representative of a member shall have one vote and, on a poll, every member present in
person or by proxy or by attorney or duly authorised representative shall have one vote for each fully paid ordinary share
held.
Each contributing share has a voting entitlement proportionate to the amount paid up thereon relative to the entire
amount payable (including the amount paid but ignoring amounts credited as paid).
None of the options have any voting rights.
ASX Listing Rule 3.13.1
The Company advises, in accordance with ASX Listing Rule 3.13.1, that its Annual General Meeting (AGM; an item of
business which will include the election of directors) is proposed to be held on 30 November 2024 and based on this
proposed AGM date, in accordance with the Company’s constitution, the closing date for receipt of valid nominations
from persons wishing to be considered for election as a director at the AGM will be 18 October 2024.