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Corporate
Directory
Directors
Mr Kerry Harmanis
Non-Executive Chairman
Mr Jeremy Kirkwood
Non-Executive Director
Mr Brian Dawes
Non-Executive Director
Mr Peter Benjamin
Non-Executive Director
Registered and
Principal Office
Suite 1 Ground Level
33 Colin Street
West Perth WA 6005
Telephone: +61 8 9380 4230
Facsimile: +61 8 9382 8200
Website: www.talismanmining.com.au
Auditors
Share Registry
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth, Western Australia 6000
Telephone: +61 8 9227 7500
Facsimile: +61 8 9227 7533
Link Market Services
Level 12, QV1 Building
250 St Georges Terrace
Perth, Western Australia 6000
Telephone: +61 8 9211 6670
Securities Exchange Listing
Company Secretary
Australian Securities
Exchange Limited
Level 40, Central Park
152-158 St Georges Terrace
Perth, Western Australia 6000
Mr Alex Neuling
ASX Code: TLM
1
Table of
contents
Letter from the Chairman
Review of Operations
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Independent Auditors’ Report
Financial Statements
Notes to the Consolidated Financial Statements
Directors’ Declaration
Additional Securities Exchange Information
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3
Directors’ Report Letter from
the Chairman
Dear Talisman Shareholder,
I am pleased to introduce Talisman’s 2022 Annual Report.
The past year has seen Talisman progress exploration
programs across our key NSW projects, consolidate and
further expand our portfolio, and lay the foundations for
what we plan to be a significantly expanded exploration
push later this year and moving into 2023.
Our ability to execute on-ground exploration programs at
the Lachlan copper-gold project was severely hampered,
initially by the constraints of COVID-19 restrictions in the first
half of the year and, for much of 2022, the extraordinarily
wet weather conditions which have impacted the central
west of NSW (and for that matter much of Australia’s
Eastern Seaboard).
The combination of incessant rainfall and boggy ground
conditions restricted access for drilling, meaning we were
only able to execute relatively small Reverse Circulation
(RC) percussion drill programs during the financial year.
While this has been a source of considerable frustration
during the year, our exploration team has not been sitting
on its hands – using the time to progress a range of other
activities designed to add value to our projects and advance
the exploration process as much as possible.
Importantly, we made a significant investment in two
regional-scale geophysical surveys that were flown
during the year – a 15,456-line-kilometre Airborne Gravity
Gradiometry (AGG) survey and a 6,285-line-kilometre
Airborne Electro-Magnetic (AEM) survey.
An investment of this magnitude in high-quality regional
datasets is not something that is commonly seen by a junior
exploration company and will provide a fantastic database
that will stand us in very good stead for the future.
We are confident that this important body of work has the
potential to significantly shorten our discovery timeline
by helping us to “see” blind mineralisation located below
cover within a region that has proven potential for major
discoveries. In turn, this should help us to vector into the
more prospective parts of our portfolio a lot faster than we
would otherwise have been able to.
The investment has already been vindicated, with
processing of the data revealing a large number of
priority targets – already more than 50 gravity and 20
electromagnetic anomalies, which are currently being
analysed by our team for ranking their relative importance
prior to testing.
This will ultimately deliver us an impressive bank of
drill-ready targets – which we believe have the potential
to yield economic discoveries – providing an exciting
development which has added significant value to our NSW
projects and laid the foundations for an exciting year ahead.
As I write this report, field inspections and additional
mapping is underway across the high-priority targets, with
the expectation that we will have drill rigs on the ground
during the second quarter of the 2022/23 financial year
(subject predominantly to weather and ground conditions).
The insights gained from these surveys have also allowed
us to strategically expand our tenement position in the
highly prospective Lachlan Fold Belt during the year, with
the addition of 11 new Exploration Licences covering a total
area of 4,275km2. This has increased our total footprint of
granted Exploration Licences to 7,134km2 – solidifying our
position in this Tier-1 mineral province.
Talisman’s ability to adopt a considered and systematic
approach to exploration is due in no small part to the
strength of the Company’s balance sheet, which is
underpinned by the uncapped 1% gross revenue royalty
on all metals produced from the Wonmunna iron ore project
in Western Australia.
During the 2022 financial year, we continued to receive
monthly royalty payments from the operator of the
Wonmunna Project, Mineral Resources, which is operating
the mine at the designated run rate of 5 million tonnes per
annum, with provision in future to potentially increase this to
13.5Mtpa.
For the 12-month period to 30 June 2022, Talisman received
$6.3 million in royalty payments – a valuable revenue stream
which underpinned our exploration activities and corporate
costs for the year.
At year-end, we retained $8.9 million in cash which,
combined with an ongoing royalty income stream, puts us
in an enviable position as we ramp-up exploration in NSW.
As I have previously outlined, Talisman continues to review
a wide range of business development opportunities in
Australia, with the recent pull-back in the equities market
opening up renewed opportunities to acquire or earn-into
quality projects that suit our wide range of skill-sets.
We continue to apply stringent criteria to this search, based
on assets that meet our hurdles, are value-accretive and can
deliver genuine long-term returns for our shareholders.
In conclusion, I would like to extend my sincere thanks
and acknowledgement to our excellent executive team,
led by our CEO Shaun Vokes and our Exploration Manager
Russell Gregory, for their hard work and commitment during
the year.
I acknowledge that this been challenging and at times
frustrating year with much of the work being carried out
“behind the scenes”. However, I am confident that we are
now well placed to reap the rewards of this effort as we
accelerate our drilling efforts in the months ahead.
I would also like to thank my fellow Directors and to extend
a special vote of thanks to my fellow shareholders for your
patience and support.
I am excited about what the next year will bring for Talisman
and I look forward to sharing it with you.
Yours faithfully,
Kerry Harmanis
Chairman
4
5
Review of Operations
Lachlan Copper-Gold Project
Overview
The last twelve months has seen Talisman Mining Limited
(Talisman or the Company) continue to progress exploration
activities in New South Wales (NSW) at both its Lachlan
Copper-Gold (Lachlan) and Lucknow Gold (Lucknow)
Projects, notwithstanding ongoing COVID-19 restrictions
in the first half of the year and significant above average
rainfall in the central west of NSW throughout most of
2022. In addition, throughout the financial year Talisman
reviewed numerous new precious and base metals growth
opportunities throughout Australia, focusing on value
accretive transactions that have the potential to create
long-term shareholder value.
Talisman continues to conduct all exploration and corporate
activities under, and closely managed in accordance with,
Company COVID-19 policies and procedures and relevant
state COVID-19 regulatory requirements to ensure the
safety of Talisman’s workforce and local communities.
Talisman’s COVID-19 procedures include regular COVID-19
rapid antigen testing prior to and during field work in project
areas, the availability and use of appropriate COVID-19
personal protective equipment and maintaining social
distancing protocols wherever practical.
Throughout the financial year the Company continued to
receive monthly royalty payments from the operator of the
Wonmunna Iron Ore Mine (Wonmunna) in the Pilbara region
of Western Australia which commenced iron ore production
during March 2021. Talisman is entitled to an uncapped
1% gross revenue royalty on all metals produced and sold
from Wonmunna. Throughout the financial year Wonmunna
operated at its designed production rate of 5 million tonnes
per annum (Mtpa), although approvals are in place to
potentially increase iron ore production from Wonmunna
up to 13.5 Mtpa1. For the 12-month period ended 30 June
2022 Talisman received $6.3 million in royalty payments
from Wonmunna. The potential ongoing Wonmunna royalty
revenue stream places the Company in a unique funding
position for a junior exploration company, allowing Talisman
to pursue ongoing systematic exploration at its Lachlan and
Lucknow Projects in combination with reviewing additional
new metalliferous growth opportunities. Talisman expanded
its tenement position in the highly prospective Lachlan Fold
Belt region of NSW adding eleven new exploration licences
covering an area of 4,275km2 during the financial year. This
now brings Talisman’s total granted exploration licence area
of its Lachlan Project to approximately 7,134km2, solidifying
the Company’s strong tenure portfolio in this world class
mineral province.
During the financial year, Talisman completed a
comprehensive review of the prospectivity vectors
associated with discoveries and known deposits in the
Cobar Superbasin region of NSW. This review resulted
in Talisman undertaking two regional scale geophysical
surveys – a 15,456-line kilometre Airborne Gravity
Gradiometry (AGG) survey flown at 200m line spacing
using the proprietary FALCON® AGG system and a
6,285-line kilometre Airborne Electro-Magnetic (AEM)
survey also flown at a 200m line spacing using the VTEM™
Max helicopter-borne AEM system. These two large-scale
geophysical surveys represent a significant investment
in Talisman’s highly prospective tenement portfolio. The
geophysical surveys have the potential to shorten the
discovery timeline on Talisman’s tenure by several years
through focusing exploration effort in areas most likely
to return an economic discovery, including by potentially
indicating the presence of blind mineralisation concealed
below cover. Processing and interpretation of the AGG
and AEM survey data has identified over 50 gravity and
20 electromagnetic anomalies2 which are currently in the
process of being analysed by Talisman’s geological team to
rank each one in regard to prospectivity to determine future
wok programs.
In addition to the geophysical surveys, exploration
activities continued at the Lachlan Project with a number
of soil sampling/mapping programs completed and
several reverse circulation (RC) percussion drill programs
undertaken targeting both base metal and gold-in-soil
anomalies. Unseasonally heavy rainfall during the second
half of the financial year hampered exploration efforts during
this period with several exploration programs having to
be postponed due to the inaccessibility for personnel and
equipment to target areas.
At the Company’s Lucknow Project, COVID-19 restrictions
and increased case numbers in the region restricted
on-ground exploration activities during the first half of the
financial year. A number of land-access agreements were
subsequently successfully negotiated with local landholders
which has allowed the Company to progress geochemical
programs targeting the interpreted mineralised corridor to
the north-west of the historic Lucknow Gold Mine.
The Company is currently progressing additional land
access agreements to complete this geochemical program
and awaiting assay results of submitted samples to inform
the next phase of exploration work.
1 - Western Australia Department of Mines, Industry Regulation and Safety - refer minedex.dmirs.wa.gov.au/Web/environment-registrations/details/103347
2 - Refer Talisman ASX announcements dated 26 July 2022 and 05 September 2022 for full details.
Talisman’s Lachlan Project consists of four discrete project
areas – Central Lachlan, Dandaloo Copper, Hillston Copper-Gold
and Elvis Porphyry Copper-Gold projects which combined
cover over 7,100km2 of granted exploration tenure in the
highly prospective Cobar Superbasin and Junee-Narrowmine
Volcanics mineral belts of NSW (Figure 1). These mineral
belts are well-established mining districts with multiple
operating long-life gold and base metal mines and a number
of recent significant exploration successes including Aurelia
Metal’s Federation polymetallic discovery and Peel Mining’s
Mallee Bull, Wagga Tank and Southern Nights discoveries.
Talisman’s exploration strategy at the Lachlan Project is
focused on the significant regional geological architecture,
principally the fundamental north-northwest trending rift
controlling structures, which are a key feature in regional
metallogeny. Proximity to the margins of major basin faults as
well as deep seated regional basement lineament structures
and zones of high strain are an important factor for mineral
deposit formation and Talisman has a meaningful tenure
position on the eastern edge of the Cobar Basin rift margin.
Major basement lineaments within the region show a
strong control on mineralisation with numerous deposits
occurring at the intersections of these lineaments with
major structures. It is considered that the area of Talisman’s
Lachlan Project has the potential to host a variety of
deposit types including low sulphation epithermal gold and
base metal deposits, structurally controlled gold deposits,
structurally controlled copper deposits, Cobar style gold and
base metal deposits, as well as skarn deposits.
The Company has identified multiple gold and base metal
mineralisation exploration targets at its Central Lachlan,
Dandaloo Copper, Hillston Copper-Gold and Elvis Porphyry
Copper-Gold Projects and systematic exploration activities
including regional reconnaissance mapping, soil sampling,
RC percussion drilling and geophysical surveys advanced
during the financial year to inform target prioritisation and to
test high-priority targets.
Figure 1
Talisman’s Lachlan Cu-Au Project, showing key tenements,
nearby mines and prospects and underlying geology.
6
7
Directors’ Report Lachlan Copper-Gold Project
Lachlan Copper-Gold Project
Figure 3
Talisman’s FALCON® AGG and VTEM™ Max helicopter-borne
AEM survey areas highlighting priority anomalies.
Regional Geophysical Surveys
During the first half of the financial year Talisman completed
an extensive review of the prospectivity vectors associated
with discoveries and known deposits in the Cobar
Superbasin region of NSW. The review indicated that all
known mineral deposits have a significant gravity anomaly
associated with economic mineralisation and surrounding
alteration halos.
The emplacement of sulphide mineralisation and associated
higher-density silica alteration into relatively lower-density
sedimentary packages making up the basement rocks
through the Cobar region is believed to result in easily
identifiable gravity anomalies, indicating the presence of
concealed mineral systems – even below thick cover.
Additionally, electro-magnetic surveys have also been
proven as a key discovery tool for many deposits in
the Cobar area through the identification of concealed
conductive anomalies associated with massive sulphide
orebodies. This includes the recent discoveries of Peel Mining
Limited’s Mallee Bull polymetallic (Cu-Ag-Au-Pb-Zn) deposit
and Aeris Resources Ltd’s Constellation copper deposit.
As a result of this review, Talisman undertook two
large-scale regional geophysical surveys to provide an
efficient and cost-effective “first-pass” screening mechanism
for geophysical anomalism associated with Cobar and
Mineral Hill-style mineralisation analogues over large portion
of its 4,451km2 Central Lachlan Project area (refer Figure 3).
These large-scale surveys represent a significant investment
in Talisman’s highly prospective tenement portfolio. The
geophysical surveys have the potential to shorten the
discovery timeline on Talisman’s tenure by several years by
focusing exploration effort in areas most likely to return an
economic discovery, including by potentially indicating the
presence of blind mineralisation concealed below cover. The
surveys will also greatly enhance Talisman’s understanding
of sub-surface geology and structure in the area and provide
further data for interpretation of regional and prospect-scale
structures hosting mineralisation.
Figure 2
VTEM Max helicopter-borne AEM system in operation
over Talisman’s tenure.
Regional Airborne Gravity Gradiometry
(AGG) Survey
Talisman contracted XCalibur Aviation (Australia) Pty Ltd to
fly an Airborne Gravity Gradiometry (AGG) survey using the
proprietary FALCON® AGG system. FALCON is the world’s
most advanced airborne gravity gradiometer technology and
provides high-quality gravity data to a resolution of 50m or
better. The survey was flown during the third quarter of the
financial year at a 200m line spacing and covered 15,456
line kilometres.
Data processing and interpretation was completed by
Talisman’s geophysical consultants during the last quarter of
the financial year with over 50 gravity anomalies identified3
where existing geological interpretation cannot account for
the gravity response returned from the survey (Figure 3).
Of these anomalies, 10 have been identified as high priority
for follow-up due to the significance of the anomalism,
coincidence with other prospective features or their
location on regional structural lineaments known to host
mineralisation (Figure 3).
Targeted Airborne Electromagnetic
(AEM) Survey
In parallel with the regional AGG survey, Talisman
contracted UTS Geophysics Pty Ltd to undertake a targeted
Airborne Electro-Magnetic (AEM) survey using the VTEM™
Max helicopter-borne AEM system (Figure 2). Targeting for
these survey areas was assisted by the exploration review
conducted by Dr Jon Hronsky in mid-20214. The survey was
flown over areas assessed as having the highest potential
for sulphide orebodies during the third and fourth quarters
of the financial year after encountering a number of delays
(related to unsuitable weather conditions, COVID-19 and
equipment failure) at a 200m line spacing and covered 6,285
line kilometres (Figure 3).
Talisman’s geophysical consultants completed data
processing and interpretation of the AEM data subsequent
to the financial year end. Over 20 anomalies5 have been
identified which require further investigation, with each
anomaly ranked by geophysical character, interpretated
surrounding geology, and any known mineralisation.
Talisman has identified three of these anomalies for
immediate follow-up work due to their location near known
mineral occurrences (Figure 3).
Preliminary exploration work, including geological mapping
and regolith sampling on both AGG and AEM high priority
anomalies is currently in progress to assist in prioritisation
and preparation for potential drill testing during the next
financial year.
3 - Refer Talisman ASX announcement dated 26 July 2022 for full details.
4 - Refer Talisman ASX announcement dated 6 May 2021 for full details.
5 - Refer Talisman ASX announcement dated 5 September 2022 for full details.
8
9
Directors’ Report Lachlan Copper-Gold Project
Lachlan Copper-Gold Project
Kaolin Shaft Prospect (EL8680)
During the financial year, Talisman completed a ten-hole
1,894-metre RC percussion drill program6 testing a highly
prospective gold-in-soil anomaly at the Kaolin Shaft
gold prospect (Figure 4). Drill-hole depths ranged from
150m to 242m with the holes intersecting zones hosting
disseminated base metal sulphides and zones of
silica-sericite ± pyrite alteration within rocks of the
Canbelego-Mineral Hill Volcanic Belt.
Several zones of polymetallic mineralisation were
intersected, with visual sphalerite, chalcopyrite and
galena consistent with intersected lead, zinc and copper
mineralisation. The gold-in-soil anomaly over the area was
confirmed by the intersection of multiple near-surface gold
intercepts of >1g/t Au.
Down-hole electromagnetic (DHEM) surveys were
undertaken on holes KSRC0009 and KSRC00127 and whilst
the DHEM survey results were inconclusive in delineating
further definitive conductors in the area, they did indicate
that the area has a high conductive background. Petrological
examination of drill intervals associated with mineralisation
suggests the disseminated nature of sulphides present may
not return an individual conductive response4.
Peak grades across all drilling as sampled on two metre
intercepts were 4.87% Zn (hole KSRC0009 90-92m), 2.61%
Pb (hole KSRC0008 20-22m), 0.37% Cu (hole KSRC0007
178-180m), 1.58g/t Au (hole KSRC0008 16-18m) and
60.8g/t Ag (hole KSRC0003 6-8m)3.
Separate zones of enrichment in base and precious metals
suggest multiple phases of enrichment within the same
system, increasing the prospectivity for the discovery
of further polymetallic mineralisation. Mineralisation
remains open to the south and east under increasing cover
presenting a further target area for follow-up work.
In addition to the RC drilling results, preliminary analysis
and 3D interpretation of AEM survey data suggests the
polymetallic mineralisation at both the Kaolin Shaft and
nearby Durnings prospects may be the up-dip expression of
a much larger mineralisation source - located approximately
900m to the north-east. This interpreted mineralisation
source is situated at the convergence and intersection of
two geological structures understood to be associated
with the Mineral Hill mine and the nearby Wilmatha
Cu-Au Porphyry prospect5.
Talisman has also identified NE-SW structures which
crosscut the Kaolin Shaft and Durnings prospects and
have been interpreted to extend directly into the proposed
mineralisation source area. These structures may be
a contributing conduit which accommodated up-dip
migration of mineralisation away from the interpreted
source. Geological modelling also indicates strata-bound
mineralisation, further supporting a mineralised-fluid
migration model5.
The conductive response at both the Kaolin Shaft and
Durnings prospects shows a low-moderate angle
north-eastern dip toward the intersecting main structures
and the interpreted mineralisation source area (Figure 5).
Further work on the prospect will include follow-up drilling
to investigate potential extensions of mineralisation into this
interpreted mineralisation source area.
6 - Refer Talisman ASX announcement dated 30 March 2022 for full details
including JORC tables.
7 - Refer Talisman ASX announcement dated 6 June 2022 for full details including
JORC tables.
Figure 4
Kaolin Shaft
completed RC
drilling over soil
Au anomaly.
Figure 5
Conductivity plan view (TauSF) and Resistivity Depth Image across Kaolin Shaft, showing interpreted structure to north-east.
Murrays Mine Prospect (EL8719)
A six-hole 934-metre RC percussion drill program at the
Murrays Mine prospect was completed during the financial
year6. This drilling targeted down-plunge extensions
of known vein-hosted mineralisation occurring within
Girilambone Group pelitic metasediments and to also test
potential mineralised extensions to the north based on a
gold-in-soil anomaly8. Drilling intersected several stockwork
veined zones of graphitic and sulphidic schist containing
visual arsenopyrite, pyrite and fine-grained sphalerite.
Zones of mineralisation were best developed within hole
MMRC0003, which returned 20m @ 0.55g/t Au from 148m
including 2m @ 1.52g/t Au from 156m (Figure 6)3. Gold
mineralisation intersected in MMRC0002 and MMRC0003
is consistent with the strike of an interpreted gold-bearing
structure related to surface workings that produced gold
from surface occurrences of similar lithology and mineral
associations. Mineralised zones are observed to thicken
at depth towards the west and may present a further
exploration target for deep follow-up drilling.
Analysis of the cover and weathering profile from drill chips
and geochemistry indicate that a thin veneer of transported
cover is present across the targeted gold-in-soil anomaly,
suggesting that it is a transported anomaly and not
reflective of regolith or underlying basement geology.
Future work at the Murrays Mine prospect will include
step-out auger drilling to collect regolith sampling from
beneath transported cover and possibly deeper drilling to
determine the potential size of the gold-bearing system.
8 - Refer Talisman ASX announcement dated 17 January 2022 for full details
including JORC tables.
Figure 6
Murrays Mine Gold Prospect section 6369150E.
10
11
Lachlan Copper-Gold Project
Lachlan Copper-Gold Project
Carpina North Prospect (EL8571)
A total of twelve holes for 1,938m were completed6
during the financial year on the maiden drilling program
at the Carpina North gold prospect to test a series of
en-echelon style gold-in-soil anomalies9. Best intercepts
from each hole are labelled in Figure 7, also showing the
target gold-in-soil areas from soil sampling work. Where
multiple intercepts were recorded in a hole, the highest-
grade intercept is labelled. Where no significant intercept
(assay result returned <0.25g/t Au) was encountered, the
hole is labelled “NSI”3. Several holes intersected a graphitic
and sulphidic zone, with pyrite-arsenopyrite sulphide
dissemination visually similar to areas around the known
gold mineralisation at the Murrays Mine Prospect.
Assays indicate significant pervasive gold mineralisation
encountered through all drill-holes with significant intercepts
in 11 of the 12 holes. Talisman’s initial interpretation of
the gold-in-soil anomaly and intersected lithologies is that
the fine-grained silica hosting pyrite and arsenopyrite is
analogous to silica capping and alteration zones common
to the upper portions of a low-sulfidation epithermal gold
system, similar to the Mount Boppy gold mine located
further north along the eastern margin of the Cobar
Basin. Significant gold results from the Carpina North
drilling included:
▪ CNRC0010
▪ 22m @ 0.44g/t Au from 104m down-hole, including:
▪ 4m @ 0.89g/t Au from 122m down-hole
▪ CNRC0012
▪ 2m @ 0.75g/t Au from 2m down-hole; and
▪ 40m @ 0.51g/t Au from 24m down-hole, including:
▪ 14m @ 0.84g/t Au from 44m down-hole3.
Future work on the Carpina North area will focus on the
interpretation of the recently completed AGG survey
data over the area, detailed geological mapping and
widespread regolith sampling to determine vectors towards
potential high-grade mineralised zones of the theorised
epithermal system.
9 Refer Talisman ASX announcement dated 7 October 2021 for full details
including JORC tables.
10 Refer RE0003828, Combined Seventh Annual and Final Report for EL6338,
Babinda Project for the period 9 November 2010 to 8 November 2011.
11 Refer Talisman ASX announcement dated 17 January 2022 for full details
including JORC tables.
Figure 7
Completed Carpina North RC drilling over gold-in-soil
anomaly and RTP 1VD magnetics4,5.
Babinda Prospect (EL8658)
During the second-half of the financial year Talisman
completed a five-hole 675-metre RC reconnaissance drilling
program at the Babinda prospect (Figure 8) to test both the
base metals potential along strike of historic drilling and also
a distinct historic gravity anomaly10 on the western margin of
a broad magnetic anomaly suggestive of a deeper intrusive
source of mineralizing fluids11.
The planned RC drilling of two further reconnaissance holes
to test a conceptual base metals target in the north-west of
the tenement identified during Talisman’s regional targeting
review in May 20214 was postponed to the next financial
year due to heavy rainfall making the proposed drill sites
inaccessible.
Holes BBRC0001 to BBRC0004 reached target depth while
BBRC0005 was terminated early at 85m due to water and
collar issues. Significant drill results at the Babinda Copper
Prospect (Figure 8) included:
▪ BBRC0001
▪ 8m @ 0.25% Cu from 58m down-hole; and
▪ 4m @ 0.5% Cu, 0.3% Pb, 0.8% Zn, 14.5 g/t Ag, 0.15g/t
Au from 162m down-hole
▪ BBRC0003
▪ 6m @ 0.3% Zn, 0.2% Pb, 0.1g/t Au from
58m down-hole
▪ BBRC0004
▪ 2m @ 0.27% Cu from 2m; and
▪ 6m @ 0.27% Cu from 22m5.
Initial geological modelling of the results shows a correlation
between an intermediate volcanic intrusive (dolerite) and
elevated copper mineralisation, as well as an unmineralised
volcanic rock unit to the east. Multiple phases of volcanics
are indicative of a favourable structural setting for intrusion
related mineralisation potential.
Analysis is ongoing to determine the orientation of the
mineralised intrusive volcanic which will be used as a
potential vector for any additional drilling. Geological
mapping of the Babinda Copper Prospect and an adjacent
area of old copper workings (the Elaine Copper Prospect)
is also underway to better understand the relationship
between geological structure, intrusive phases and copper
mineralisation across these prospect areas. The results
from ongoing geological modelling will be used to aid a drill
design following up on identified copper mineralisation.
Figure 8
Recent Talisman Babinda RC collars and historic drilling10
over ground gravity high and intrusive magnetic high
12 Refer Talisman ASX announcement dated 30 November 2018 for full details
including JORC tables.
13 Refer Talisman ASX announcement dated 7 October 2021 for full details
including JORC tables.
Noisy Ned Prospect (EL8677)
During the financial year, Talisman completed a 5-hole
1,196-metre RC drill program at the Noisy Ned prospect
targeting a strong base metal anomaly identified from previous
auger sampling, as well as following up on copper, lead, zinc
and silver mineralisation in bedrock from previous RC drilling12.
The objective of the drilling completed during the
financial year was to extend the strike length of previously
intersected base metal mineralisation, and to test an
interpreted break in a rift forming structure associated
with the Canbelego-Mineral Hill Rift Zone coincident with
anomalous copper values identified in previous auger
sampling (Figure 9).
RC drilling confirmed the presence of flat-lying to
shallow-dipping, highly altered felsic volcanic rocks
(rhyolites/dacites), overlying interbedded broader highly
brecciated rhyolite and tuffaceous units. Strong to moderate
siliceous alteration and pyrite sulphide mineralisation is
pervasive throughout all the fresh bedrock encountered,
indicating the presence of mineralising fluids having passed
through this package of rock.
Assays have confirmed the presence of a base and precious
metal mineralising system with drill-holes returning wide
intercepts of anomalous copper, zinc and silver. These
intercepts included:
▪ NNRC0013
▪ 35m @ 0.13% Cu from 27m, inclusive of 2m @ 0.43%
Cu and 7.18g/t Ag from 57m; and
▪ 1m @ 0.64% Cu and 3.69g/t Ag from 79m
▪ NNRC0014
▪ 19m @ 0.24% Cu and 0.21% Zn from 35m inclusive
of 3m @ 0.61% Cu and 0.33% Zn from 39m; and
▪ 1m @ 0.87% Zn from 71m; and
▪ 1m @ 0.86% Zn from 220m
▪ NNRC0015
▪ 1m @ 1.05% Zn from 91m
▪ NNRC0016
▪ 1m @ 4.06% Zn from 75m
▪ NNRC0017
▪ 14m @ 0.11% Cu, 1.99g/t Ag from 14m; and
▪ 2m @ 0.63% Cu, 4.45g/t Ag from 107m13.
The mineralisation appears to be stratigraphically associated
and partially oxidised due to its proximity to surface. The
style and geometry of base metal and silver mineralisation
suggests the presence of a larger Volcanically Hosted
Massive Sulphide (VHMS) system, which Talisman will be
seeking to further define in future work programs. Further,
the isolated copper-in-soils anomaly to the north-west of
the main Noisy Ned prospect area along the trend of the
interpreted rift forming structure (Figure 9) remains untested
and will be assessed as part of future work.
12
13
Lachlan Copper-Gold Project
Lucknow Gold Project
On-ground exploration activities during the financial year at
the Lucknow Project were restricted by regional COVID-19
outbreaks and the implementation of subsequent stay-at-home
orders and by heavy rainfall limiting access to field locations.
Land-access agreement are required with local landholders in
order to conduct exploration activities on the interpreted Target
Corridor area, and due to the COVID-19 restrictions only a
limited number of these agreements were concluded during the
financial year. Limited soil sampling programs were completed
late in the financial year with samples currently being dried
in preparation for sieving and submission to commercial
laboratories for assaying. Further land-holder engagement will
be undertaken in the first half of the next financial year in order
to facilitate completion of the soil sampling program to inform
the next phase of work at the Lucknow Project.
Talisman’s Lucknow Project is located approximately 11kms
southeast of the NSW town of Orange and is centred on the
historic Lucknow Goldfield which was discovered in 1851 and
was one of the earliest goldfields to be mined commercially
in Australia. The Lucknow Project is a unincorporated joint
venture between Talisman and privately owned Lucknow Gold
Ltd (LGL) with Talisman, through its 100%-owned subsidiary
Talisman B Pty Ltd (TLMB), acting as manager of the joint
venture. Both joint venture parties contribute funds to future
activities on the Lucknow Project based on their percentage
interest (TLMB 51% and LGL 49%) to maintain their respective
interests. Standard dilution clauses apply to the parties’
interests and, should a party’s interest dilute to below 10%, it
will automatically convert to a net smelter royalty of 1.0%.
In the previous financial year Talisman completed its maiden
two-hole diamond drilling program at the Lucknow Project
with the subsequent geological interpretation suggesting
that the prospective ultramafic contact has been offset to the
north-west by a sinistral fault which is trending north-west and
dipping moderately to the north-east. This newly interpreted
target corridor to the north-west along the Lucknow Fault
(Target Corridor) shows evidence of gold mineralisation in
areas of minimal previous exploration (Figure 10).
Figure 10
Lucknow Project mine shaft locations and simplified geology.
Figure 9
Noisy Ned Copper Prospect overview over 1VD
magnetics, with copper and zinc contours from previous
soil and auger sampling12, and previous12 and recently
completed RC drilling.
14
15
Directors’ Report Image
Lucknow Gold Project
Competent Persons’ Statement
Information in this report that relates to Exploration Results
and Exploration Targets is based on information completed
by Mr Russell Gregory, who is a member of the Australasian
Institute of Geoscientists. Mr Gregory is a full-time employee
of Talisman Mining Limited and has sufficient experience
which is relevant to the style of mineralisation and types
of deposits under consideration and to the activities
undertaken to qualify as a Competent Person as defined in
the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”.
Mr Gregory consents to the inclusion in this report of the
matters based on information in the form and context in
which it appears.
No new information that is considered material is included
in this document. All information relating to exploration
results has been previously released to the market and is
appropriately referenced in this document. JORC tables are
not considered necessary to accompany this document.
Forward-Looking Statements
This report may include forward-looking statements.
These forward-looking statements are not historical
facts but rather are based on Talisman Mining Limited’s
current expectations, estimates and assumptions about
the industry in which Talisman Mining Limited operates,
and beliefs and assumptions regarding Talisman Mining
Limited’s future performance. Words such as “anticipates”,
“expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”,
“potential” and similar expressions are intended to identify
forward-looking statements. Forward-looking statements
are only predictions and are not guaranteed, and they are
subject to known and unknown risks, uncertainties and
assumptions, some of which are outside the control of
Talisman Mining Limited. Past performance is not necessarily
a guide to future performance and no representation or
warranty is made as to the likelihood of achievement or
reasonableness of any forward-looking statements or other
forecast. Actual values, results or events may be materially
different to those expressed or implied in this presentation.
Given these uncertainties, recipients are cautioned not
to place reliance on forward looking statements. Any
forward-looking statements in this report speak only at
the date of issue of this report. Subject to any continuing
obligations under applicable law and the ASX Listing Rules,
Talisman Mining Limited does not undertake any obligation
to update or revise any information or any of the forward
looking statements in this report or any changes in events,
conditions or circumstances on which any such forward
looking statement is based.
Tenement Schedule
Project /
Tenement
Location and
Blocks (Area)
Tenement
Status
Talisman
Equity (%)
Expiry Date
Joint Venture
Partner
CENTRAL LACHLAN PROJECT | New South Wales
EL8615
EL8659
EL8677
EL8414
EL8547
EL8571
EL8658
EL8680
EL8719
EL9298
EL9299
EL9302
EL9306
EL9315
EL9379
EL8977
EL9395
EL9396
(726km2)
(373km2)
(193km2)
(174km2)
(205km2)
(258km2)
(256km2)
(20km2)
(191km2)
(440km2)
(199km2)
(108km2)
(327km2)
(103km2)
(878km2)
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
100%
87%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
ELVIS PROJECT | New South Wales
(463km2)
Granted
(75km2)
Granted
(229km2)
Granted
100%
100%
100%
HILLSTON PROJECT | New South Wales
EL8907
(1,043km2)
Granted
EL9394
(399km2)
Granted
100%
100%
DANDALOO PROJECT | New South Wales
07-07-23
18-10-23
NA
08-12-23
02-12-24
Peel Mining Ltd
03-04-28
23-05-25
13-10-22
08-12-22
27-03-24
30-09-27
NA
30-09-27
13-10-27
30-09-27
27-10-27
28-03-28
11-05-23
21-04-25
NA
21-04-25
31-10-22
21-04-28
NA
EL9324
(474km2)
Granted
100%
12-11-27
N/A
LUCKNOW PROJECT | New South Wales
EL6455
(29km2)
Granted
51%
10-08-26
Lucknow Gold Ltd
EL8451
(276km2)
Granted
87%
16-07-25
Peel Mining Ltd
OTHER | New South Wales
16
17
Corporate Governance
Statement
The Company’s Corporate Governance Statement can be found on the Company’s website at
www.talismanmining.com.au/about-us/corporate-governance.html under the heading marked
“Corporate Governance Statement”.
The following governance-related documents can also be found on the Company’s website:
Constitution
▪ Constitution of Talisman
Mining Limited
Board
▪ Code of Conduct
▪ Policy and Procedure for the
Selection and (Re)Appointment
of Directors
▪ Process for
Performance Evaluation
Shareholder
Communication
▪ Shareholder Communication
and Investor Relations Policy
Company Purpose & Values
Charters
▪ Board
▪ Audit Committee
▪ Nomination Committee
▪ Remuneration Committee
▪ Risk Committee
Compliance, Controls
and Policies
▪ Risk Management Policy
▪ Continuous Disclosure Policy
▪ Securities Trading Policy
▪ Diversity Policy
▪ Remuneration Policy
▪ Anti-Bribery and
Anti-Corruption Policy
▪ Whistleblower Policy
Directors’ Report
Your Directors present their report together with the financial statements of the Group consisting of Talisman Mining Limited and
the entities it controlled for the financial year ended 30 June 2022. In order to comply with the provisions of the Corporations Act
2001, the Directors report as follows:
Directors
The names of Directors who held office during or since the end of the year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.
Name
Particulars
Kerry Harmanis
Non-Executive
Chairman
15 July 2020 - current
Jeremy Kirkwood
BCom ANU
Non-Executive
Director
15 July 2020 - current
Non-Executive
Chairman
April 2016 – 15 July
2020
Chairman (Non-Executive/Non-Independent)
Kerry Harmanis joined the Talisman board on 15 July 2020 and is one of Western Australia’s
most successful mining executives and investors. Kerry has been a major shareholder and
strong supporter of Talisman since 2007 and currently holds an 18% stake in the Company.
With a career spanning more than 40 years in the Australian exploration and mining industry,
Kerry was the founder and Executive Chairman of Jubilee Mines NL, a highly successful West
Australian nickel miner which he established in 1987.
Through a combination of exploration success, focused project development and operational
consistency, Jubilee Mines grew to become one of the most successful mid-tier miners on the
ASX until its acquisition by Xstrata for A$3.1 billion in October 2007.
During this period, Kerry led a highly successful geological and operational team which
helped Jubilee set new benchmarks on the ASX for shareholder returns in the resource sector.
In the 3 years immediately before the end of the financial year, Kerry did not serve as a
Director of any other ASX listed entities.
Non-Executive Director (Independent)
Jeremy Kirkwood joined Talisman in April 2016 and has extensive experience in corporate
strategy, investment banking and global capital markets and provides invaluable strategic
input and guidance to the Company’s board and management team.
Jeremy is a principal of Pilot Advisory Group and was previously a Managing Director at
Credit Suisse, Morgan Stanley and Austock. He has primarily worked in public markets,
undertaking merger and acquisitions and capital raisings for companies principally in the
metal and mining, energy and infrastructure sectors.
In the 3 years immediately before the end of the financial year, Jeremy joined Joyce
Corporation Ltd (ASX:JYC) as a Non-Executive Director on 14 January 2020 and was
appointed Chairman on 1 December 2020. In February 2018 he was appointed as the
Chairman of Kin Mining Ltd (ASX: KIN) where he remained until his resignation on 24 July
2019.
Jeremy is the Chair of the Company’s Audit, Nomination and Remuneration Committees.
With extensive industry experience, Jeremy is considered qualified to hold these
responsibilities.
18
19
Directors’ Report Directors’ Report
Directors’ Report
Name
Particulars
Brian Dawes
B. Sc. Mining,
MAusIMM
Non-Executive
Director
17 June 2009 –
current
Peter Benjamin
B.Sc. (Hons), Grad
Dip (Exploration),
(Bus Admin), GAICD,
MAusIMM, FAIM
Non-Executive
Director
24 July 2019 - current
Non-Executive Director (Independent)
Brian is a mining engineer with extensive international mining industry experience. He holds
a BSc in Mining from the University of Leeds in the United Kingdom and is Member of the
Australasian Institute of Mining and Metallurgy.
Brian’s diverse expertise covers all key industry aspects from exploration through the
discovery, feasibility, funding, approvals, project construction, commissioning, operations,
optimisation, logistics, marketing, and closure phases. This includes site management and
corporate responsibilities in a diversity of challenging and successful underground and open
pit operations across many commodities and geographies; mainly in copper, gold, nickel,
zinc and lead, and iron ore. Prior to joining Talisman, Brian held senior positions with Jubilee
Mines NL, Western Areas, LionOre Australia, WMC, Normandy Mining, and Aberfoyle.
In the 3 years immediately before the end of the financial year, Brian has served as a
non-executive director of Kin Mining Ltd (ASX: KIN) since 20 February 2018.
Brian serves on the Company’s Audit, Nomination and Remuneration Committees. With
extensive industry experience and being financially literate, Brian is considered qualified to
hold these responsibilities.
Non-Executive Director (Independent)
Peter is an experienced geologist who has worked in the mining industry for more than 40
years, predominantly in senior exploration, project, operational and executive management
roles with junior and mid-tier ASX-listed companies.
These positions have included Managing Director of gold and copper explorer Kalamazoo
Resources Ltd, General Manager Exploration and Geology for Iluka Resources Ltd and
Divisional Project Manager for Newcrest Mining Ltd. These roles have included significant
experience in the development and subsequent operations for open pit and underground
precious, base metal and bulk mineral mines throughout Australia. During his career Peter
has overseen large gold and base metal exploration programmes which have resulted in new
mineral discoveries and significant extensions to Mineral Resources, Ore Reserves and thus
mine life. This has also included operating exploration and project development programmes
in the Lachlan Fold Belt of NSW, which is a key focus area for Talisman.
Peter is Member of the Australian Institute of Mining and Metallurgy, a Graduate of the
Australian Institute of Company Directors and a Fellow Graduate and Mentor at the
Australian Institute of Management (Floreat).
In the 3 years immediately before the end of the financial year, Peter did not serve as a
Director of any other ASX listed entities.
Peter is a member of the Audit, Nomination and Remuneration Committees. With his
extensive geological and senior exploration management experience, Peter is considered
qualified to hold these responsibilities.
Company Secretary
Alex Neuling,
BSc, FCA (ICAEW),
FCIS
Company Secretary
1 May 2016 - current
Alex Neuling is a Chartered Accountant and Chartered Secretary with extensive corporate
and financial experience including as Director, Chief Financial Officer and / or Company
Secretary of various ASX-listed companies in the mining, mineral exploration, oil & gas and
other sectors.
Prior to those roles, Alex worked at Deloitte in London and Perth. Alex also holds an honours
degree in chemistry from the University of Leeds in the United Kingdom and is principal
of Erasmus Consulting which provides company secretarial and financial management
consultancy services to a variety of ASX-listed and other companies.
Principal activities
The principal activity of Talisman Mining Limited during
the course of the financial year was exploration for base
metals and other minerals, including copper, copper-gold,
gold and nickel.
Review of operations and
future developments
A detailed review of operations during the financial year and
commentary on future developments is set out in the section
titled “Review of Operations” in this Annual Report.
Significant changes in state of affairs
In the opinion of the Directors there were no significant
changes in the state of affairs of the Group that occurred
during the financial year under review.
Dividends
The Directors resolved that no dividend be paid for the year.
Financial performance and
financial position
Financial performance
During the financial year, the Group reported an operating
loss after tax of $1.1 million (2021: loss after tax $2.2
million). The Group reported an operating loss after tax from
continuing operations of $1.1 million (2021: loss after tax
$3.9 million).
Revenue for the year of $6.5 million (2021: $1.4 million)
consisted primarily of royalty income from an uncapped 1%
gross revenue royalty applicable to all metals produced and
sold from the Wonmunna Iron Ore Mine.
Financial position
As at 30 June 2022, the Group had net assets of $10.3
million (2021: $11.2 million) including $8.9 million of cash
and cash equivalents (2021: $9.9 million).
Subsequent events
There has not been any other matter or circumstances
occurring subsequent to the end of the financial year that
has significantly affected, or may significantly affect the
operations of the Group, the results of those operations, or
the state of affairs of the Group in future financial years.
Directors’ meetings
The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held during
the financial year and the number of meetings attended by each director (while they were a director or committee member).
During the financial year, eleven board meetings, two audit committee meetings, one renumeration committee meeting and one
nomination committee meeting were held.
Board of directors
Audit committee
Remuneration committee
Nomination committee
Directors
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Eligible to
attend
Attended
Kerry Harmanis
Jeremy Kirkwood
Brian Dawes
Peter Benjamin
11
11
11
11
10
11
11
11
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Note: Executive Directors attending committee meetings during the year attended all or part of the meeting by invitation of the relevant Committee.
20
21
Directors’ ReportDirectors’ Report Directors’ shareholdings
Details of all unissued shares or interests under option as at the date of this report are:
The following table sets out each Director’s relevant interest in shares, and options in shares of the Company or a related body
corporate as at the date of this report:
Directors
Kerry Harmanis
Jeremy Kirkwood
Brian Dawes
Peter Benjamin
Share options
Fully paid ordinary shares
Number
34,914,450
419,000
353,333
277,200
Share Options
Number
600,000
1,055,933
805,933
805,936
Issuing entity
Grant Date
Expiry date of
options
Number of
shares under
option
Exercise price
of options
Fair Value
Vested Date
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,335
$0.14
$0.05
31-Oct-20
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
$0.14
$0.04
30-May-21
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,331
$0.16
$0.05
31-Oct-20
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
$0.16
$0.04
30-May-21
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,334
$0.18
$0.04
31-Oct-20
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,448
$0.18
$0.04
30-May-21
Talisman Mining Limited
18-Aug-21
18-Aug-23
325,000
$0.31
$0.09
18-Aug-22
Share options granted to Directors and key management personnel
Talisman Mining Limited
21-Apr-22
16-Dec-25
1,267,800
$0.25
$0.08
16-Dec-24
Directors’ Report
At the date of this report, share options granted to the Directors and key management personnel of the Company and the
entities it controlled as part of their remuneration are:
Directors and
senior management
Kerry Harmanis
Number of options granted
Issuing Entity
Number of ordinary
shares under option
600,000
Talisman Mining Limited
Jeremy Kirkwood
1,055,933
Talisman Mining Limited
Brian Dawes
Peter Benjamin
Shaun Vokes
Russell Gregory
805,933
Talisman Mining Limited
805,936
Talisman Mining Limited
1,369,000
Talisman Mining Limited
1,304,500
Talisman Mining Limited
600,000
1,055,933
805,933
805,936
1,369,000
1,304,500
Talisman Mining Limited
17-Dec-21
16-Dec-25
2,871,400
$0.25
$0.07
16-Dec-24
Talisman Mining Limited
4-Jan-22
3-Jan-26
609,000
Talisman Mining Limited
5-Jan-22
4-Jan-26
642,900
$0.25
$0.25
$0.07
3-Jan-25
$0.07
4-Jan-25
The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest issue of
any other body corporate or registered scheme.
Remuneration Report
Indemnification and insurance of officers
The Remuneration Report, which forms part of the Directors’
report, outlines the remuneration arrangements in place for
the Key Management Personnel of Talisman Mining Limited
for the financial year ended 30 June 2022 and is included on
page 25.
Environmental regulations
The Group’s environmental obligations are regulated under
both State and Federal legislation. Performance with respect
to environmental obligations is monitored by the Board of
Directors and subjected from time to time to government
agency audits and site inspections. No significant or
material environmental breaches have been notified by any
government agency during the year ended 30 June 2022.
The Company has agreed to indemnify all the Directors of
the Company for any liabilities to another person (other than
the Company or related body corporate) that may arise from
their position as Directors of the Company and its controlled
entities, except where the liability arises out of conduct
involving a lack of good faith.
During the financial year the Company paid a premium in
respect of a contract insuring the Directors and officers of
the Company and its controlled entities against any liability
incurred in the course of their duties to the extent permitted
by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the
amount of the premium.
22
23
Directors’ Report Directors’ Report
Non-Audit Services
Details of amounts paid or payable to the auditor for
non-audit services provided during the year by the
auditor are outlined in Note 24 to the financial statements.
The Directors are satisfied that the provision of
non-audit services is compatible with the general
standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services do not
compromise the auditor’s independence as all non-audit
services have been reviewed to ensure that they do not
impact the impartiality and objectivity of the auditor and
none of the services undermine the general principles
relating to auditor independence as set out in Code
of Conduct APES 110 Code of Ethics for Professional
Accountants issued by the Accounting Professional & Ethical
Standards Board.
Auditor Independence
Section 307C of the Corporations Act 2001 requires our
auditors, HLB Mann Judd, to provide the Directors of the
Company with an Independence Declaration in relation
to the audit of the annual report. This Independence
Declaration is set out on page 32 and forms part of this
Directors’ report for the year ended 30 June 2022.
Proceedings on behalf of the Company
No person has applied for leave of court to bring proceedings
on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of
those proceedings.
Rounding off of amounts
The Company has applied the relief available to it in ASIC
Legislative Instrument 2016/191, and accordingly certain
amounts included in this report and in the financial report
have been rounded off to the nearest $1,000 (where
rounding is applicable), under the option available to the
Company under ASIC Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191. The Company is an
entity to which this instrument applies.
Image
Remuneration Report
This report, which forms part of the Directors’ report, outlines the remuneration arrangements in place for the Key Management
Personnel of Talisman Mining Limited for the year ended 30 June 2022. The information provided in this remuneration report has
been audited as required by Section 308(3C) of the Corporations Act 2001.
The Remuneration Report details the remuneration arrangements for Key Management Personnel who are defined as those
persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or
indirectly, including any Director (whether executive or otherwise) of the Group.
Key Management Personnel details
The key management personnel of Talisman Mining Limited
during the year were:
Directors
Kerry Harmanis
Non-Executive Chairman
Jeremy Kirkwood
Non-Executive Director
Brian Dawes
Non-Executive Director
Peter Benjamin
Non-Executive Director
Other Key Management
Shaun Vokes
Interim Chief Executive Officer
(Appointed 2 September 2020)
Russell Gregory
Chief Executive Officer
(Appointed 2 July 2021)
Exploration Manager
(Appointed 2 August 2021)
Except as noted, the named persons held their current
positions for the whole of the financial year and since the
financial year end.
Key Management Personnel
(excluding Non-Executive Directors)
The Board is responsible for determining the remuneration
policies for the Group, including those affecting Executive
Directors and other key management personnel. The Board
may seek appropriate external advice to assist in its
decision making.
The Company’s remuneration policy for Executive Directors
and key management personnel is designed to promote
superior performance and long-term commitment to the
Group. The main principles of the policy when considering
remuneration are as follows:
▪
Executive Directors and key management personnel are
motivated to pursue long term growth and success of the
Group within an appropriate control framework;
▪
▪
interests of key leadership are aligned with the long-term
interests of the Company’s shareholders; and
there is a clear correlation between performance
and remuneration.
The remuneration policy for Executive Directors and
other key management personnel comprises a mix of fixed
remuneration and at-risk variable remuneration consisting of
short term and long term incentives.
Fixed remuneration
Fixed remuneration is reviewed annually by the
Remuneration Committee. The process consists of a review
of relevant comparative remuneration in the market and
internally and, where appropriate, external advice on policies
and practices. The Remuneration Committee has access to
external, independent advice where necessary.
Executive Directors and other key management personnel
are given the opportunity to receive their fixed (primary)
remuneration in a variety of forms including cash and fringe
benefits such as motor vehicles and expense payment plans.
It is intended that the manner of payment chosen will be
optimal for the recipient without creating undue cost for the
Group. The fixed remuneration component is detailed in the
remuneration for key management personnel tables for the
years ended 30 June 2022 and 30 June 2021.
Short term incentives
An annual short term incentive opportunity (STIP) exists for
Executive Directors and other key management personnel.
The STIP represents a cash-based incentive that provides
for a meaningful proportion of the total remuneration
package for Executive Directors and other key management
personnel to be at-risk. Benefits under the STIP may only
be realised on the achievement of targets linked to the
Company’s annual business objectives, prevailing economic
conditions and individual commitment and performance.
Potential rewards under the STIP only become payable
at the absolute discretion of the Board. For the financial year
ended 30 June 2022, there were no STIP awards paid or
recommended by the Remuneration Committee.
24
25
Long term incentives
Non-Executive Directors
Key terms of employment contracts
To align the interests of key management personnel with the
long-term objectives of the Group and its shareholders, the
Group’s policy, having regard to the stage of development
of its assets, is to issue share options under the shareholder
approved ‘Incentive Awards Plan’ (IAP) and at the discretion
of the Board, subject to shareholder approval for Directors.
The issue of share options as remuneration represents cost
effective consideration to Directors and key management
personnel for their commitment and contribution to the
Group and are used as a strategic tool to recruit and retain
high calibre personnel.
Options issued under the IAP during the year vest after a
fixed period during the life of the options (currently after
3 years) and value is only realised by Directors and key
management personnel upon growth at a fixed premium to
the 30-day volume weighted share price of the Company’s
share price from the date of the grant of the options. Vesting
conditions relating to the performance of the Group are
not considered appropriate having regard to the stage of
development of the Group’s assets. Participants in the IAP
are prohibited from entering into transactions (whether
through the use of derivatives or otherwise) which limit the
economic risk of participating in the scheme.
In addition, under the IAP, if the Board makes a
determination that in its opinion an optionholder has
been dismissed or removed from office for a reason which
entitles the Company to dismiss the optionholder without
notice or has committed any act of fraud, defalcation or
gross misconduct in relation to the affairs of the Company
(whether or not charged with an offence) or has done
any act which brings the Company and its related bodies
corporate or any one of them into disrepute, the options held
by that optionholder will lapse.
The Group’s Non-Executive Directors receive fees (including
statutory superannuation) for their services and the
reimbursement of reasonable expenses. The fees paid to
the Group’s Non-Executive Directors reflect the demands on,
and responsibilities of, the Directors. They do not receive any
retirement benefits (other than compulsory superannuation).
The Board decides annually the level of fees to be paid to
Non-Executive Directors with reference to market standards.
Non-Executive Directors may also receive share options
where this is considered appropriate by the Board as
a whole and with regard to the stage of the Group’s
development. Such options vest across the life of the
option and are primarily designed to provide an incentive to
Non-Executive Directors to remain with the Group. Options
issued to Non-Executive Directors are subject to shareholder
approval.
A Non-Executive Directors’ fee pool limit of $300,000 per
annum was originally approved by the shareholders at the
General Meeting on 19 May 2008 and re-approved at the
30 June 2016 General Meeting. For the financial year ended
30 June 2022, this pool was utilised to a level of $209,000
(inclusive of superannuation). The fee paid for the 2022
financial year to the Chairman was $40,000 (excluding
statutory superannuation) whilst each Non-Executive
Director was paid $50,000 per annum (excluding statutory
superannuation).
Remuneration and other terms of employment of Directors and key management personnel are formalised in an employment
contract. The major provisions of the agreements related to the remuneration are set out below.
Key Management
Personnel
Term of Agreement
Key Agreement Terms
Shaun Vokes
Three years
(appointed 2 July 2021)
Termination benefit payable on early
termination by the Group (other than for gross
misconduct) is equal to six months’ base salary.
Russell Gregory
Ongoing employment
agreement
(appointed 2 August 2021)
Termination benefit payable on early
termination by the Group (other than for gross
misconduct) is equal to three months’ base
salary.
Notice
Period
3 months
3 months
Remuneration for Executive Directors and key management personnel consists of a base salary, superannuation and
performance incentives. Long term performance incentives may include options granted at the discretion of the Board subject
to obtaining the relevant approvals. The remuneration of the Chief Executive Officer is recommended to the Board by the
Remuneration Committee. Remuneration of key management personnel (excluding Non-Executive Directors) is recommended
annually by the Remuneration Committee in consultation with the Chief Executive Officer or equivalent.
Remuneration Philosophy
The Board recognises that the performance and continued success of the business depends upon the quality of its people. To
ensure the Group continues to innovate and grow it must attract, motivate, and retain highly skilled directors, executives and
employees. To deliver this, the philosophy of the Group in determining remuneration levels is to set competitive remuneration
packages to attract and retain high calibre employees and to link a significant component of executive rewards to shareholder
value creation. The size, nature and financial strength of the Group is also taken into account when setting remuneration levels
so as to ensure that the operations of the Group remain sustainable.
In considering the Group’s performance and impact on shareholder returns, the Board has regard to the following indicators of
performance in respect of the current financial year and the previous four financial years:
Revenue/Other Income ($’000)
6,459
1,393
229
442
60
30 June 2022
30 June 2021
30 June 2020
30 June 2019
30 June 2018
Net profit/(loss) after tax ($’000)
(1,111)
(2,167)
(4,803)
46,236
(10,523)
Earnings/(loss) per share ($)
(0.006)
(0.012)
(0.026)
0.249
(0.057)
Share price ($)
0.140
0.205
0.165
0.078
0.285
26
26
27
Remuneration ReportRemuneration Report Remuneration of key management personnel
Share-based remuneration granted as compensation
Details of the nature and amount of each element of the remuneration for key management personnel during the year are set
out in the following tables:
Options granted to directors during the financial year were approved by shareholders at an extraordinary general meeting of
the Company on 21 April 2022. Options issued to other Company employees were issued under the Incentive Awards Plan. For
details of share-based payments granted during the year refer to Note 17.
Short-term employee benefits
Post-
employment
benefits
Salary &
fees(i)
$
Bonus
$
Non-
monetary
$
Super-
annuation
$
Share-
based
payment
Options
(viii)
$
Long
service
leave
accrual
$
% of
compensation
linked to
performance
Total
$
2022 Directors
Kerry Harmanis(ii)
40,000
Jeremy Kirkwood
51,667
Brian Dawes
50,000
Peter Benjamin
52,083
Executives
Shaun Vokes(iii)
329,217
Russell Gregory(iv)
201,667
724,634
2021 Directors
Kerry Harmanis(ii)
-
Jeremy Kirkwood
52,500
Daniel Madden(v)
333,350
Brian Dawes
36,950
Karen Gadsby(vi)
17,500
Peter Benjamin
50,000
Executives
Shaun Vokes(iii)
274,323
Anthony
Greenaway(vii)
134,192
898,815
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,000
3,333
5,000
2,917
30,750
20,167
66,167
-
4,987
-
-
-
-
-
-
-
-
-
8,240
52,240
15.77%
3,057
58,057
5.26%
3,057
58,057
5.26%
3,057
58,057
5.26%
17,990
377,957
4.76%
40,245
262,079
15.36%
75,646
866,447
-
-
-
8,786
66,273
13.26%
-
-
-
-
-
17,800
1,663
4,750
26,061
2,679
-
-
-
-
-
6,151
60,901
10.10%
6,151
25,314
24.30%
24,200
78,950
30.65%
-
300,384
-
8,786
145,657
6.03%
6,468
82,877
57,083
80,434
1,125,677
(i)
Cash salary and fees includes movements in annual leave provision during the year.
(ii) Appointed as non-executive Chairman on 15 July 2020. Under the terms of his initial appointment, Mr Harmanis elected not to receive a salary or be issued with any
shares in his role. In December 2021 the Board resolved that Mr Harmanis be paid a salary of $80,000 pa and be entitled to participate in the Company’s long-term
incentive plan.
(iii) Appointed as interim Chief Executive Officer 2 September 2020 and as Chief Executive Officer on 2 July 2021.
(iv) Appointed as Exploration Manager 2 August 2021.
(v) Ceased employment as Managing Director on 1 September 2020 and resigned as a non-executive director on 4 November 2020.
(vi) Resigned as a Non-Executive Director on 4 November 2020.
(vii) Ceased employment 7 August 2020.
(viii) The value of share-based payments shown in the table are non-cash values based on an accounting valuation calculated under the Black Scholes option pricing
method. The values above represent the accounting expense recorded over the vesting period of the options. The options were granted in the 2019, 2020 and 2022
financial years.
Name
Kerry Harmanis
Jeremy Kirkwood
Brian Dawes
Peter Benjamin
Shaun Vokes
Russell Gregory
During the financial year
Number
granted
Number
vested and
exercisable
% of grant vested
% of grant forfeited
% of compensation
for the year consisting
of options(i)
600,000
222,600
222,600
222,600
1,369,000
1,304,500
-
-
-
-
-
-
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
15.77%
5.26%
5.26%
5.26%
4.76%
15.36%
(i)
The value of options granted during the period is recognised in compensation over the vesting period of the grant, in accordance with Australian accounting standards.
Exercised
During the year, the following key management personnel exercised options that were granted to them as part of their
compensation. Each option converts into one ordinary share of Talisman Mining Limited.
Name
No. of options
exercised
No. of ordinary
shares of Talisman
Mining Limited issued
Option value at date of
exercise $
Amount paid
Amount unpaid
$
$
-
Forfeited / lapsed / cancelled options during the year
Name
Jeremy Kirkwood
Daniel Madden
Brian Dawes
Karen Gadsby
Peter Benjamin
Shaun Vokes
Anthony Greenaway
Number forfeited/lapsed/
cancelled during the year
Option value at date forfeited/
lapsed/ cancelled
$
Financial Year Granted
833,333
1,666,666
583,333
583,333
583,332
555,555
833,333
-
-
-
-
-
-
-
FY18/19
FY18/19
FY18/19
FY18/19
FY19/20
FY18/19
FY18/19
The value of options forfeited, lapsed or cancelled during the year at the time of forfeiture, lapsing or cancellation was $Nil.
6,468
24,937
57,083
26,360
448,198
5.88%
Shaun Vokes
277,778
277,778
-
39,111
28
29
Remuneration ReportRemuneration Report
Other Information
Shares held by Key Management Personnel
Opening
balance at
1 July
Balance on
appointment
Shares
received on
exercise of
options
Acquired on-
market
Balance on
resignation
Closing
balance at
30 June
Balance held
nominally
Options held by Key Management Personnel
Opening
balance at
1 July
Granted as
remuneration
Options
Exercised
Options
Lapsed /
Cancelled /
Forfeited
Balance on
resignation
Closing
balance
at 30 June
Vested
but not
exercisable
Vested
during the
year
Vested and
exercisable
at 30 June
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
Number
2022 Directors
2022 Directors
Kerry Harmanis
33,859,138
Jeremy Kirkwood
419,000
Brian Dawes
353,333
Peter Benjamin
170,058
Executives
Shaun Vokes
308,767
Russell Gregory
-
35,110,296
2021 Directors
-
-
-
-
-
-
-
Kerry Harmanis
-
33,859,138
Jeremy Kirkwood
419,000
Daniel Madden
50,000
Brian Dawes
353,333
Karen Gadsby
311,334
Peter Benjamin
101,093
Executives
Shaun Vokes
Anthony
Greenaway
-
-
-
-
-
-
-
-
-
1,234,760
33,859,138
-
-
-
-
-
-
-
-
-
-
-
-
-
1,055,312
N/A
34,914,450
-
-
107,142
N/A
N/A
N/A
419,000
277,200
-
-
Kerry Harmanis
-
600,000
Jeremy Kirkwood 1,666,666
222,600
Brian Dawes
1,166,666
222,600
-
-
-
-
-
N/A
600,000
(833,333)
N/A
1,055,933
(583,333)
(583,332)
N/A
N/A
805,933
805,936
353,333
20,000
Peter Benjamin
1,166,668
222,600
-
-
-
Executives
Shaun Vokes
833,333
1,369,000 (277,778)
(555,555)
N/A
1,369,000
Russell Gregory
-
1,304,500
-
-
N/A
1,304,500
4,833,333 3,941,300 (277,778) (2,555,553)
-
5,941,302
277,778
540,000
N/A
1,126,545
-
56,961
N/A
56,961
277,778
1,759,415
-
37,147,489
20,000
N/A
33,859,138
N/A
419,000
(50,000)
-
-
-
-
N/A
353,333
20,000
-
-
-
-
-
(311,334)
-
68,965
N/A
170,058
308,767
N/A
308,767
-
-
-
-
-
-
-
2021 Directors
Kerry Harmanis
-
Jeremy Kirkwood 2,500,000
Daniel Madden
7,500,000
Brian Dawes
1,750,000
Karen Gadsby
1,750,000
Peter Benjamin
1,750,000
Executives
Shaun Vokes
1,666,667
Anthony
Greenaway
2,500,000
19,416,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
N/A
-
(833,334)
N/A
1,666,666
(2,500,000) (5,000,000)
-
(583,334)
N/A
1,166,666
(583,334)
(1,166,666)
-
(583,332)
N/A
1,166,668
(833,334)
N/A
833,333
(833,334)
(1,666,666)
-
(6,750,002) (7,833,332) 4,833,333
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
833,333
583,333
583,336
-
-
2,000,002
-
833,333 1,666,666
2,500,000 5,000,000
583,333 1,166,666
583,333 1,166,666
583,336 1,166,668
-
833,333
833,333 1,666,666
5,916,668 12,666,665
377,732
(361,334)
35,110,296
20,000
This Directors’ report is signed in accordance with a resolution of Directors made pursuant to s.298(2) of the Corporations
Act 2001.
On behalf of the Directors
Jeremy Kirkwood
Non-Executive Director
Perth, 23 September 2022
30
31
Remuneration ReportRemuneration Report
INDEPENDENT AUDITOR’S REPORT
To the members of Talisman Mining Limited
Report on the Audit of the Financial Report
AUDITOR’S INDEPENDENCE DECLARATION
Opinion
As lead auditor for the audit of the consolidated financial report of Talisman Mining Limited for the
We have audited the financial report of Talisman Mining Limited (“the Company”) and its controlled
year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
no contraventions of:
2022, 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,
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and notes to the financial statements, including a summary of significant accounting policies, and the
and
directors’ declaration.
a)
b)
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
any applicable code of professional conduct in relation to the audit.
(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
Perth, Western Australia
23 September 2022
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (“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.
L Di Giallonardo
Partner
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have determined the matters described below to be the key
audit matters to be communicated in our report.
INDEPENDENT AUDITOR’S REPORT
To the members of Talisman Mining Limited
INDEPENDENT AUDITOR’S REPORT
To the members of Talisman Mining Limited
Report on the Audit of the Financial Report
Opinion
Report on the Audit of the Financial Report
We have audited the financial report of Talisman Mining Limited (“the Company”) and its controlled
Opinion
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated
We have audited the financial report of Talisman Mining Limited (“the Company”) and its controlled
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
entities (“the Group”), which comprises the consolidated statement of financial position as at 30 June
and notes to the financial statements, including a summary of significant accounting policies, and the
2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated
directors’ declaration.
statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including a summary of significant accounting policies, and the
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
directors’ declaration.
Act 2001, including:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
Act 2001, including:
performance for the year then ended; and
(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
performance for the year then ended; and
Basis for Opinion
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Basis for Opinion
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
independence requirements of the Corporations Act 2001 and the ethical requirements of the
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional
Report section of our report. We are independent of the Group in accordance with the auditor
Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have also
independence requirements of the Corporations Act 2001 and the ethical requirements of the
fulfilled our other ethical responsibilities in accordance with the Code.
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
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
fulfilled our other ethical responsibilities in accordance with the Code.
for our opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
Key Audit Matters
for our opinion.
Key audit matters are those matters that, in our professional judgement, were of most significance in
Key Audit Matters
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
Key audit matters are those matters that, in our professional judgement, were of most significance in
a separate opinion on these matters. We have determined the matters described below to be the key
our audit of the financial report of the current period. These matters were addressed in the context of
audit matters to be communicated in our report.
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. We have determined the matters described below to be the key
audit matters to be communicated in our report.
32
33
Key Audit Matter
How our audit addressed the key audit
matter
Joint Operations – change in interest
Note 19
In the prior year the Group entered into two joint
arrangements, the 51% jointly controlled Lucknow
Gold Project and the 80% jointly controlled Mt Walton
Project.
During the year ended 30 June 2022, the Group
gained a further 7% of the Mt Walton Project,
increasing the Group’s interest to 87%.
These joint arrangements are both joint operations
and the Group proportionately consolidates its
share of the assets, liabilities, revenue and
expenses of the Lucknow Gold Project and the Mt
Walton Project.
This is considered to be a key audit matter as it is
material to the users of the financial statements, the
accounting was complex and it involved the most
communication with management.
Our procedures included but were not
limited to:
- Reviewing the agreements to
understand their key terms;
- Establishing that joint control existed
and considering the type of joint
arrangement in existence;
- Ensuring that the joint arrangements
were accounted for in accordance with
AASB 11 Joint Arrangements;
- Verifying the existence and fair value of
assets and liabilities in the joint
operations on formation;
- Ensuring the change in holding has
been correctly accounted for; and
- Assessing the appropriateness of the
disclosures included in the financial
report.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2022 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, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of this financial report.
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 and 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, based on 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
continue as a 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
34
35
Independent Auditor’s ReportIndependent Auditor’s Report
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included the directors’ report for the year ended 30 June
2022.
AS AT 30 JUNE 2022
Consolidated Statement
of Financial Position
In our opinion, the Remuneration Report of Talisman Mining Limited for the year ended 30 June 2022
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
23 September 2022
L Di Giallonardo
Partner
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Other receivables
Property, plant and equipment
Right-of-use assets
Intangible assets
Deferred exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Liabilities
Current Liabilities
Trade and other payables
Lease liabilities
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Note
30 Jun 22
$ `000
30 Jun 21
$ `000
7
8
8
9
10
11
12
13
14
14
15
16
16
8,908
1,347
10,255
13
398
135
-
-
546
10,801
356
66
422
76
76
498
9,900
1,333
11,233
13
201
-
19
-
233
11,466
304
-
304
-
304
304
10,303
11,162
32,122
413
(22,232)
10,303
31,966
646
(21,450)
11,162
36
The accompanying notes form part of these financial statements.
37
Independent Auditor’s Report
Consolidated Statement of
Profit or Loss and Other
Comprehensive Income
Consolidated Statement
of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2022
Continuing operations
Revenue
Other income
Exploration expenditure expensed as incurred
Employee benefits expense
Legal and corporate advisory expenses
Administrative expenses
Occupancy expenses
Finance costs
Depreciation and amortisation expense
Loss before income tax expense from continuing operations
Income tax expense
Loss after tax from continuing operations
Discontinued operations
Profit after tax from discontinued operations
Net loss for the year
Other comprehensive income for the year, net of tax
Total comprehensive loss for the year
Earnings / (loss) per share:
From continuing and discontinued operations:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
From continuing operations:
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Note
30 Jun 22
$ `000
30 Jun 21
$ `000
2
2
12
2
2
2
3
5
6
6
6
6
24
6,435
(5,499)
(1,068)
(231)
(579)
(19)
(8)
(166)
(1,111)
-
(1,111)
-
(1,111)
-
(1,111)
(0.59)
(0.59)
(0.59)
(0.59)
28
1,365
(2,858)
(1,279)
(382)
(498)
(65)
(13)
(215)
(3,917)
-
(3,917)
1,750
(2,167)
-
(2,167)
(1.16)
(1.16)
(2.10)
(2.10)
FOR THE YEAR ENDED 30 JUNE 2022
Cash flows from operating activities
Payments to suppliers and employees
Payments for exploration and evaluation
Finance costs
Interest received
Government grants
Royalty receipts
Net cash used in operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Proceeds from disposal of property, plant and equipment
Proceeds from disposal of royalty rights
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Repayment of lease liabilities
Net cash provided by/(used in) financing activities
Net (decrease) in cash held
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
7
Note
30 Jun 22
$ `000
30 Jun 21
$ `000
inflows/(outflows)
(1,545)
(5,588)
(8)
24
-
6,277
(840)
(283)
46
-
(237)
156
(71)
85
(992)
9,900
8,908
(2,989)
(3,066)
(13)
28
68
1,289
(4,683)
(24)
6
1,750
1,732
-
(86)
(86)
(3,037)
12,937
9,900
7
5
14
38
39
The accompanying notes form part of these financial statements.
The accompanying notes form part of these financial statements.
Consolidated Statement of
Changes In Equity
Notes to the Consolidated
Financial Statements
FOR THE YEAR ENDED 30 JUNE 2022
Issued Capital
$ `000
Accumulated Losses
$ `000
Share-based
Payments Reserve
$ `000
Total Equity
$ `000
Balance at 1 July 2021
31,966
(21,450)
646
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Shares issued during the year
Recognition of share-based payments
Unlisted options lapsed
-
-
-
156
-
-
(1,111)
-
(1,111)
-
-
329
Balance at 30 June 2022
32,122
(22,232)
Balance at 1 July 2020
31,966
(19,479)
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Recognition of share-based payments
Unlisted options forfeited
Unlisted options lapsed
-
-
-
-
-
-
(2,167)
-
(2,167)
-
-
196
Balance at 30 June 2021
31,966
(21,450)
-
-
-
-
96
(329)
413
765
-
-
-
92
(15)
(196)
646
11,162
(1,111)
-
(1,111)
156
96
-
10,303
13.252
(2,167)
-
(2,167)
92
(15)
-
11,162
FOR THE YEAR ENDED 30 JUNE 2022
Note 1: Statement of Significant Accounting Policies
Talisman Mining Limited (the Company) is a public company listed on the Australian Securities Exchange (trading under the
symbol “TLM”) and incorporated and operating in Australia.
The Company’s Registered Office and its principal place of business are as follows:
Suite 1 Ground Floor / 33 Colin Street
West Perth
Western Australia 6005
The nature of the operations and principal activities of the Company are described in the Directors’ Report.
SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
These financial statements are general purpose financial
statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Accounting
Standards and Interpretations and comply with other
requirements of the law.
The financial statements comprise the consolidated financial
statements for the Group. For the purposes of preparing
the consolidated financial statements, the Company is a
for-profit entity.
The accounting policies detailed below have been
consistently applied to all of the years presented unless
otherwise stated. The financial statements are for the Group
consisting of Talisman Mining Limited and its subsidiaries.
The financial statements have been prepared on a historical
cost basis. Historical cost is based on the fair values of the
consideration given in exchange for goods and services.
The financial statements are presented in Australian
dollars and all values are rounded to the nearest thousand
dollars ($’000) unless otherwise stated as permitted by the
option available to the Company under ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument
2016/191. The Company is an entity to which this
instrument applies.
(b) Adoption of new and revised standards
Standards and Interpretations applicable to
30 June 2022
In the year ended 30 June 2022, the Directors have reviewed
all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Group and
effective for the current annual reporting period. As a result
of this review, the Directors have determined that there is
no material impact of the new and revised Standards and
Interpretations on the Group and, therefore, no change is
necessary to Group accounting policies.
Standards and interpretations in issue not yet mandatory or
early adopted.
The Directors have also reviewed all of the new and
revised Standards and Interpretations in issue but not yet
mandatory for the year ended 30 June 2022. As a result
of this review the Directors have determined that there is
no material impact of the Standards and Interpretations in
issue but not yet mandatory on the Group and, therefore, no
change is necessary to Group accounting policies.
No other new standards, amendments to standards
and interpretations are expected to affect the Group’s
consolidated financial statements.
40
The accompanying notes form part of these financial statements.
41
(c) Statement of compliance
(f) Basis of Consolidation
The financial report was authorised for issue on
23 September 2022.
The financial report complies with Australian Accounting
Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS).
Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto,
complies with International Financial Reporting
Standards (IFRS).
(d) Significant accounting estimates and judgements
The application of accounting policies requires the use of
judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may
differ from these estimates.
The estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions are recognised in the period in
which the estimate is revised if it affects only that period, or
in the period of the revision and future periods if the revision
affects both current and future periods.
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of
depreciable assets at each reporting date, based on
the expected utility of the assets. Uncertainties in these
estimates relate to technical obsolescence that may change
the utility of certain software and IT equipment.
Share-based payment transactions
The Group measures the cost of equity-settled transactions
with employees and Directors by reference to the fair value
of the equity instruments at the date at which they are
granted. The fair value is determined by utilising a Black
Scholes model, using the assumptions detailed in Note 17.
(e) Going concern
The financial report has been prepared on the going concern
basis, which contemplates continuity of normal business
activities and the realisation of assets and settlements of
liabilities in the ordinary course of business.
The consolidated financial statements incorporate the
financial statements of the Company and entities controlled
by the Company and its subsidiaries. Control is achieved
when the Company:
▪ has power over the investee;
▪
is exposed, or has rights, to variable returns from its
involvement with the investee; and
▪ has the ability to use its power over the investee to
affect its returns.
The Company reassess whether or not it controls an
investee if facts and circumstances indicate that there are
changes to one or more of the three elements listed above.
When the Company has less than a majority of the voting
rights in an investee, it has the power over the investee
when the voting rights are sufficient to give it the practical
ability to direct the relevant activities of the investee
unilaterally. The Company considers all relevant facts and
circumstances in assessing whether or not the Company’s
voting rights are sufficient to give it power, including:
▪
the size of the Company’s holding of voting rights
relative to the size and dispersion of holdings of the
other vote holders;
▪ potential voting rights held by the Company, other vote
holders or other parties; rights arising from other
contractual arrangements; and
▪ any additional facts and circumstances that indicate
that the Company has, or does not have, the current
ability to direct the relevant activities at the time that
decisions need to be made, including voting patterns at
previous shareholder meetings.
Consolidation of a subsidiary begins when the Company
obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income
and expenses of a subsidiary acquired or disposed of during
the year are included in the consolidated statement of
comprehensive income from the date the Company gains
control until the date when the Company ceases to control
the subsidiary.
Note 2: Revenue, Other Income and Expenses
Revenue is measured at the fair value of the consideration
received or receivable. Amounts disclosed as revenue are net
of returns, trade allowances, rebates and amounts collected
on behalf of third parties.
Interest revenue
Interest revenue from a financial asset is recognised when it
is probable that the economic benefits will flow to the Group
and the amount of revenue can be reliably measured. Interest
income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that
assets’ net carrying amount on initial recognition.
Royalty income
Royalty income represents the right to receive royalties from
metals produced and sold by the operator of the mines in
which the Group owns a royalty interest and are generally
structured as a percentage of the gross revenue received by
the producer for metals sold. The Group records income when
control of the metals sold passes from the producer to the
purchaser under the producers’ relevant sales contracts.
Government grants
Grants from the government are recognised at their fair
value where there is a reasonable assurance that the
grant will be received, and the Group will comply with all
attached conditions.
Government grants relating to costs are deferred and
recognised in the statement of profit or loss and other
comprehensive income over the period necessary to match
them with the costs that they are intended to compensate.
Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities as
deferred income and are credited to statement of profit or loss
and other comprehensive income on a straight-line basis over
the expected lives of the related assets.
Government grants are presented as other income in the
statement of profit or loss and other comprehensive income.
Revenue
Bank interest
Other Income
Government grants
Royalty income
Other income
Expenses
Loss for the year includes the following expenses:
Non-cash share based payment expense
Other employee benefits
Occupancy expenses
30 Jun 22
$ `000
30 Jun 21
$ `000
24
24
28
28
30 Jun 22
$ `000
30 Jun 21
$ `000
-
6,373
62
6,435
68
1,289
8
1,365
30 Jun 22
$ `000
30 Jun 21
$ `000
96
972
19
77
1,202
65
42
42
43
Consolidated StatementConsolidated Statement
Legal and Corporate Advisory Expenses
Corporate advisory fees
Other legal fees
Note 3: Income tax
The income tax expense or benefit for the period is the tax
payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
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 associates 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.
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and tax
laws used to compute the amount are those that are enacted
or substantively enacted by the balance date.
Deferred income tax is provided on all temporary
differences at the balance date between the tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences except:
▪ when the deferred income tax liability arises from the
initial recognition of an asset or liability in a transaction
that is not a business combination and that, at the time
of the transaction, affects neither the accounting profit
nor taxable profit or loss; or
▪ when the taxable temporary difference is associated
with investments in subsidiaries, associates or interests
in joint ventures, and the timing of the reversal of the
temporary difference can be controlled and it is probable
that the temporary difference will not reverse in the
foreseeable future.
Deferred income tax assets are recognised for all deductible
temporary differences, carry-forward of unused tax assets
and unused tax losses, to the extent that it is probable that
taxable profit will be available against which the deductible
temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
30 Jun 22
$ `000
30 Jun 21
$ `000
217
14
231
307
75
382
▪ when the deferred income tax asset relating to the
deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit or loss; or
▪ when the deductible temporary difference is associated
with investments in subsidiaries, associates or interests
in joint ventures, in which case a deferred tax asset is
only recognised to the extent that it is probable that
the temporary difference will reverse in the foreseeable
future and taxable profit will be available against which
the temporary difference can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each balance date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax
asset to be utilised.
Unrecognised deferred income tax assets are reassessed at
each balance date and are recognised to the extent that it
has become probable that future taxable profit will allow the
deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at
the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively
enacted at the balance date.
Income taxes relating to items recognised directly in equity
are recognised in equity and not in profit or loss.
R&D tax rebates are presented with the government grant
approach. The credit will be recognised in profit before tax
over the periods necessary to match the benefit of the credit
with the costs for which it is intended to compensate. These
periods will then depend on whether the R&D costs are
capitalised or expensed as incurred.
Deferred tax assets and deferred tax liabilities are offset
only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax
assets and liabilities relate to the same taxable entity and
the same taxation authority.
The prima facie income tax expense on pre-tax accounting loss from operations reconciles to the income tax benefit in the
financial statements as follows:
30 Jun 22
$ `000
30 Jun 21
$ `000
Accounting loss before income tax
Income tax expense / (benefit) calculated at 30% (2021: 26%)
Non-deductible expenses
Tax losses and deferred tax balances not recognised
Income tax benefit reported in the statement of profit or loss and other
comprehensive income
Unrecognised deferred tax balances
Deferred tax assets comprise of:
Tax losses carried forward
Impairment of financial assets
Provisions
Other deferred tax balances
Deferred tax liabilities comprise of:
Exploration expenditure capitalised
Other deferred tax balances
Income Tax expense not recognised directly in equity during the year
(1,111)
(333)
29
304
-
(2,167)
(563)
20
543
-
30 Jun 22
$ `000
30 Jun 21
$ `000
5,361
4,273
45
-
5
39
14
-
5,411
4,326
-
-
-
-
-
-
-
-
The Company’s unused tax losses arising in Australia are available indefinitely for offset against future taxable profits, subject to
the Company passing the regulatory tests for continued use of the tax losses.
Tax consolidation legislation
The Company and its 100% owned Australian resident subsidiaries have implemented the tax consolidation legislation. Current
and deferred tax amounts are accounted for in each individual entity as if each entity continued to act as a taxpayer on its own.
The Company recognises its own current and deferred tax amounts and those current tax liabilities, current tax assets and
deferred tax assets arising from unused tax credits and unused tax losses which it has assumed from its controlled entities
within the tax consolidated Group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
payable or receivable from or payable to other entities in the Group. Any difference between the amounts receivable or
payable under the tax funding agreement are recognised as a contribution to (or distribution from) controlled entities in the
tax consolidated Group.
44
45
Consolidated StatementConsolidated Statement
Other taxes
Note 4: Segment Reporting
Revenues, expenses and assets are recognised net of the
amount of GST except:
▪ when the GST incurred on a purchase of goods and
services is not recoverable from the taxation authority,
in which case the GST is recognised as part of the cost
of acquisition of the asset or as part of the expense item
as applicable; and
receivables and payables, which are stated with the
▪
amount of GST included.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the statement of cash flows on
a gross basis and the GST component of cash flows arising
from investing and financing activities, which is recoverable
from, or payable to, the taxation authority are classified as
operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
Segment Results
Talisman management has determined the operating
segments based on the reports reviewed by the Board
for strategic decision making. The Group operates in
one geographical segment, being Australia and has
identified the following continuing operating segment:
Regional Exploration.
The discontinued operation in the prior period is identified as
the sale (in April 2021) of net smelter return royalties which
the Group held over the Sinclair and Waterloo Nickel Projects
and the Springfield Copper-Gold Project all in Western
Australia which realised cash consideration of $0.75 million
and $1.0 million respectively. Refer to Note 5.
The Group’s board and Exploration Manager are responsible
for budgets and expenditures relating to the Group’s
Regional Exploration activities. Regional Exploration
activities do not normally derive any income. Should a
project generated by Regional Exploration activities
commence generating income or lead to the development
of a mining operation, that operation would then be
disaggregated from Regional Exploration and become
reportable in a different segment.
Continuing Operations
Discontinued Operations
Regional Exploration
$ `000
Springfield and Sinclair
$ `000
Unallocated Items
$ `000
Consolidated
$ `000
30 June 2022
Segment revenues / income
Segment profit / (loss) before
income tax expense
Segment assets
Segment liabilities
30 June 2021
Segment revenues / income
Segment profit / (loss) before
income tax expense
Segment assets
Segment liabilities
46
(5,811)
1,274
(103)
-
(2,946)
1,070
(189)
-
-
-
-
1,750
1,750
-
-
6,413
4,700
9,527
(395)
1,393
(971)
10,396
(115)
6,459
(1,111)
10,801
(498)
3,143
(2,167)
11,466
(304)
Consolidated Statement
Profit after tax from discontinued operations
30 Jun 22
$ `000
30 Jun 21
$ `000
Financial performance of discontinued operations
Profit on sale of royalty
Profit before income tax
Income tax
Profit after income tax
Cash flows
Net cash flows from
operating activities
Net cash flows from
investing activities
Net cash flows from
financing activities
Net cash flows
-
-
-
-
1,750
1,750
-
1,750
30 Jun 22
$ `000
30 Jun 21
$ `000
-
-
-
-
-
1,750
-
1,750
Note 5: Discontinued Operations and Assets
and Liabilities Classified as Held for Sale
Non-current assets (or disposal groups) are classified as
held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through
continuing use. This condition is regarded as met only when
the asset (or disposal group) is available for immediate sale
in its present condition subject only to terms that are usual
and customary for sales for such asset (or disposal groups)
and the sale is highly probable. Management must be
committed to the sale, which should be expected to qualify
for recognition as a complete sale within one year from the
date of classification.
When the Group is committed to a sale plan involving loss of
control of a subsidiary, all of the assets and liabilities of that
subsidiary are classified as held for sale when the criteria
described above are met, regardless of whether the Group
will retain a non-controlling interest in its former subsidiary,
after the sale.
When the Group is committed to a sale plan involving
disposal of an investment, or a portion of an investment, in
an associate or joint venture, the investment or the portion
of the investment that will be disposed of is classified as
held for sale when the criteria described above are met,
and the Group discontinues the use of the equity method
in relation to the portion that is classified as held for sale.
Any retained portion of an investment in an associate or
joint venture that has not been classified as held for sale
continues to be accounted for using the equity method. The
Group discontinues the use of the equity method at the time
of disposal when the disposal results in the Group losing
significant influence over the associate or joint venture.
After the disposal takes place, the Group accounts for
any retained interest in the associate or joint venture in
accordance with AASB 139 unless the retained interest
continues to be an associate or a joint venture, in which case
the Group uses the equity method.
During the 2021 financial year, the Group completed
royalty sale and purchase agreements with Northern Star
Resources Limited (ASX: NST) for the purchase of the net
smelter return (NSR) royalties over the Sinclair and Waterloo
Nickel Projects in Western Australia and with Sandfire
Resources Limited (ASX: SFR) for the purchase of the NSR
royalty over the Springfield Copper-Gold Project also in
Western Australia. These two transactions realised cash
consideration of $0.75 million and $1.0 million respectively.
46
47
Consolidated Statement
Note 6: Earnings/Loss Per Share
Note 7: Cash and Cash Equivalents
Note 8: Trade and Other Receivables
Note 9: Property, plant and equipment
Basic earnings/loss per share is calculated as net profit/loss
attributable to members of the parent, adjusted to exclude
any costs of servicing equity (other than dividends) and
preference share dividends, divided by the weighted average
number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit/loss
attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and
▪
preference share dividends;
the after-tax effect of dividends and interest associated
▪
with dilutive potential ordinary shares that have been
recognised as expenses; and
▪ other non-discretionary changes in revenues or expenses
during the period that would result from the dilution of
potential ordinary shares; divided by the weighted
average number of ordinary shares and dilutive potential
ordinary shares, adjusted for any bonus element.
The Group does not report diluted earnings per share
on incurring an operating loss for the financial year, or in
the event there are no dilutive potential ordinary shares
in existence.
30 Jun 22
cents
30 Jun 21
cents
Basic loss per share
(0.59)
(1.16)
Diluted earnings per share
(0.59)
(1.16)
Cash comprises cash at bank and in hand. Cash equivalents
are short term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value.
30 Jun 22
$ `000
30 Jun 21
$ `000
Cash at bank and on hand
1,768
1,160
Short-term deposits
7,140
8,740
8,908
9,900
Cash at bank earns interest at floating rates based on
daily bank deposit rates. Short-term deposits are made
for varying periods of between one day and three months,
depending on the immediate cash requirements of the
Group, and earn interest at the respective short-term
deposit rates.
Reconciliation to the Statement of Cash Flows:
For the purposes of the statement of cash flows, cash
and cash equivalents comprise cash on hand and at bank
and investments in money market instruments, net of
outstanding bank overdrafts. Cash and cash equivalents
as shown in the statement of cash flows is reconciled to
the related items in the statement of financial position
as follows:
Basic loss per share from
continuing operations
Diluted loss per share from
continuing operations
(0.59)
(2.10)
Loss for the year after tax
(1,111)
(2,167)
30 Jun 22
$ `000
30 Jun 21
$ `000
(0.59)
(2.10)
Adjustments for:
$ ’000
$ ’000
Net loss for the year
(1,111)
(2,167)
Net loss for the year from
continuing operations
(1,111)
(3,197)
Profit on sale of royalty
-
(1,750)
Depreciation and amortisation
166
Equity settled share-based
payments
Unlisted options forfeited
96
-
216
92
(15)
Weighted average
number of ordinary
shares for the purpose
of basic and diluted loss
per share
Number
Number
Changes in net assets and liabilities
(Increase) in assets:
187,421,384
186,628,385
Trade and other receivables
(55)
(925)
Increase/(decrease) in liabilities:
Trade and other payables
Provisions
Net cash used in
operating activities
64
-
(78)
(56)
(840)
(4,683)
48
48
Trade receivables are measured on initial recognition at fair
value and are subsequently measured at amortised cost
using the effective interest rate method, less any allowance
for impairment. Trade receivables are generally due for
settlement within periods ranging from 30 days to 45 days.
There are no receivables at balance date that are past-due.
Impairment of trade receivables is continually reviewed and
those that are considered to be uncollectible are written
off by reducing the carrying amount directly. An allowance
account is used when there is an expectation that the
Group will not be able to collect all amounts due according
to the original contractual terms. Factors considered by
the Group in making this determination include known
significant financial difficulties of the debtor, review of
financial information and significant delinquency in making
contractual payments to the Group. The impairment
allowance is set equal to the difference between the carrying
amount of the receivable and the present value of estimated
future cash flows, discounted at the original effective interest
rate. Where receivables are short-term discounting is not
applied in determining the allowance.
The amount of the impairment loss is recognised in the
statement of profit or loss and other comprehensive income
within other expenses. When a trade receivable for which
an impairment allowance had been recognised becomes
uncollectible in a subsequent period, it is written off
against the allowance account. Subsequent recoveries
of amounts previously written off are credited against
other expenses in the statement of profit or loss and other
comprehensive income.
Current Assets
Goods and services tax
recoverable
Other debtors
Prepayments
Non-Current Assets
Other debtors – security bonds
30 Jun 22
$ `000
30 Jun 21
$ `000
112
166
1,210
1,151
25
16
1,347
1,333
13
13
13
13
Plant and equipment is stated at cost less accumulated
depreciation and any accumulated impairment losses. Such
cost includes the cost of replacing parts that are eligible for
capitalisation when the cost of replacing the parts is incurred.
Similarly, when each major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment
as a replacement only if it is eligible for capitalisation.
Land and buildings are measured at fair value less
accumulated depreciation on buildings and less any
impairment losses recognised after the date of the revaluation.
Depreciation is calculated on a straight-line basis over the
estimated useful life of the assets as follows:
Mine site plant and equipment
Units of Production
Buildings and Leasehold
improvements
Office furniture and equipment
Motor vehicles
10 years
2-6 years
5-10 years
The assets’ residual values, useful lives and amortisation
methods are reviewed, and adjusted if appropriate, at each
financial year end.
Impairment
The carrying values of plant and equipment are reviewed for
impairment at each balance date, with recoverable amount
being estimated when events or changes in circumstances
indicate that the carrying value may be impaired.
The recoverable amount of plant and equipment is the
higher of fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash
inflows, recoverable amount is determined for the cash-
generating unit to which the asset belongs, unless the asset’s
value in use can be estimated to approximate fair value.
An impairment exists when the carrying value of an asset
or cash-generating unit exceeds its estimated recoverable
amount. The asset or cash-generating unit is then written
down to its recoverable amount.
For plant and equipment, impairment losses are recognised
in the statement of comprehensive income. However,
because land and buildings are measured at revalued
amounts, impairment losses on land and buildings are
treated as a revaluation decrement.
Derecognition and disposal
An item of property, plant and equipment is derecognised
upon disposal or when no further future economic benefits
are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included
in profit or loss in the year the asset is derecognised.
49
Consolidated StatementConsolidated Statement
Consolidated
Reconciliation
Year ended 30 June 2022
At 1 July 2021, net of
accumulated depreciation
Additions
Disposals
Depreciation charge for the year
Year ended 30 June 2021
At 1 July 2020, net of
accumulated depreciation
Additions
Disposals
Depreciation charge for the year
At 30 June 2022
Cost or fair value
Accumulated depreciation
Net carrying amount
At 30 June 2021
Cost or fair value
Accumulated depreciation
Net carrying amount
Land and
buildings
$ `000
Office furniture
and equipment
$ `000
Leasehold
improvements
$ `000
Plant and
equipment
$ `000
Motor vehicles
$ `000
Total
$ `000
-
220
-
(6)
214
-
-
-
-
-
220
(6)
214
-
-
-
84
16
(11)
(43)
46
135
6
(7)
(50)
84
349
(303)
46
843
(759)
84
14
43
-
(19)
38
21
-
-
(7)
14
73
(35)
38
56
(42)
14
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
103
201
64
(47)
(20)
100
343
(58)
(88)
398
126
282
-
-
(23)
103
6
(7)
(80)
201
248
890
(148)
(492)
100
398
427
1,326
(324)
(1,125)
103
201
Opening balance at start of financial year
Additions
Depreciation expense
Closing balance at end of financial year
Note 11: Intangible Assets
Intangible assets acquired separately
30 Jun 22
$ `000
30 Jun 21
$ `000
-
200
(65)
135
82
-
(82)
-
Intangible assets acquired separately are recorded at cost less accumulated amortisation and impairment. Amortisation
is charged on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method is
reviewed at the end of each annual reporting period, with any changes in these accounting estimates being accounted for on a
prospective basis.
Impairment of tangible and intangible assets other than goodwill
The Group assesses at each balance date whether there is an indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable
amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for
an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets
or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is
tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-
generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to
its recoverable amount.
Software license
Cost
30 Jun 22
$ `000
168
30 Jun 21
$ `000
168
Accumulated amortisation
(168)
(149)
Carrying value at end of financial year
-
19
The carrying value of plant and equipment held under hire purchase contracts as at 30 June 2022 is nil (2021: nil).
Reconciliation
Note 10: Right-of-use Assets
Carrying Value
Cost
Accumulated depreciation
Carrying value at end of financial year
30 Jun 22
$ `000
200
(65)
135
30 Jun 21
$ `000
164
(164)
-
Opening balance at start of financial year
Additions
Amortisation expense
Closing balance at end of financial year
30 Jun 22
$ `000
30 Jun 21
$ `000
19
-
(19)
-
47
22
(50)
19
50
51
Consolidated StatementConsolidated Statement
Note 12: Deferred exploration and evaluation expenditure
Note 13: Trade and Other Payables
Note 14: Lease liabilities
Exploration for and evaluation of mineral resources is the
search for mineral resources after the entity has obtained
legal rights to explore in a specific area, as well as the
determination of the technical feasibility and commercial
viability of extracting the mineral resource.
Exploration and evaluation expenditure is expensed to the
profit or loss as incurred except in the following circumstances
in which case the expenditure may be capitalised:
▪
the existence of a mineral deposit has been established
however additional expenditure is required to determine
the technical feasibility and commercial viability of
extraction and it is anticipated that future economic
benefits are more likely than not to be generated as a
result of the expenditure; and
the exploration and evaluation activity is within an area
▪
of interest which was acquired as an asset acquisition
or in a business combination and measured at fair value
on acquisition.
A regular review is undertaken of each area of interest to
determine the appropriateness of continuing to carry forward
costs in relation to that area of interest. An impairment exists
when the carrying value of expenditure exceeds its estimated
recoverable amount. The area of interest is then written down
to its recoverable amount and the impairment losses are
recognised in the statement of comprehensive income. Where
an impairment loss subsequently reverses, the carrying
amount of the asset is increased to the revised estimate of its
recoverable amount, but only to the extent that the increased
carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been
recognised for the asset in previous years.
Upon approval for the commercial development of an
area of interest, exploration and evaluation assets are
tested for impairment and transferred to ‘Mine properties
and development’. No amortisation is charged during the
exploration and evaluation phase.
Costs carried forward in respect of areas of interest in the following phases:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred
Exploration expensed as incurred
Carrying value at end of financial year
30 Jun 22
$ `000
30 Jun 21
$ `000
-
5,499
5,499
(5,499)
-
-
2,858
2,858
(2,858)
-
The recoupment of costs carried forward in relation to the areas of interest in the exploration and evaluation phases is
dependent on the successful development and commercial exploitation or the sale of the respective areas.
Lachlan Copper
Lucknow
Other Exploration
Expenses
Life to date project
expenditure expensed
Project Expenditure
expensed in the period
Life to date project
expenditure expensed
Project Expenditure
expensed in the period
30 Jun 22
$ `000
30 Jun 21
$ `000
15,656
1,049
326
17,031
5,278
6
215
5,499
10,378
1,043
111
11,532
2,180
676
2
2,858
Trade and other payables
Trade payables and other payables are carried at amortised
cost and represent liabilities for goods and services provided
to the Group prior to the end of the financial year that are
unpaid and arise when the Group becomes obliged to make
future payments in respect of the purchase of these goods
and services. Trade and other payables are presented as
current liabilities unless payment is not due within
12 months.
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and
salaries, annual leave, and sick leave expected to be settled
within 12 months of the balance date are recognised in
other payables in respect of employees’ services up to the
balance date. They are measured at the amounts expected
to be paid when the liabilities are settled. Liabilities for non-
accumulating sick leave are recognised when the leave is
taken and are measured at the rates paid or payable.
Liabilities accruing to employees in respect of wages and
salaries, annual leave, and sick leave not expected to be
settled within 12 months of the balance date are recognised
in non-current other payables in respect of employees’
services up to the balance date. They are measured as the
present value of the estimated future outflows to be made
by the Group.
30 Jun 22
$ `000
30 Jun 21
$ `000
Current liabilities
Non-current liabilities
Reconciliation
Opening balance
Additions
30 Jun 22
$ `000
30 Jun 21
$ `000
66
76
142
-
-
-
30 Jun 22
$ `000
30 Jun 21
$ `000
-
200
86
-
Principal repayments
(58)
(86)
Closing balance
142
-
The Group leases office premises in West Perth, Western
Australia. The lease term is 3 years, expiring in July 2024.
Total cash outflow relating to leases for the period ended 30
June 2022 was $70,689 (2021: $86,179).
Underlying assets serve as security for the related lease
liabilities. A maturity analysis of future minimum lease
payments is presented below:
Lease payments due
<1 year
$ `000
1-2 years
$ `000
Total
$ `000
72
(6)
66
79
(3)
76
151
(9)
142
Current
Trade payables
249
210
Employee benefits
Other payables
76
31
53
41
Lease payments
Interest
Net present values
356
304
Lease payments not recognised as a liability
Lease payments expensed during the period and thus
not included in the measurement of the lease liability are
as follows:
30 Jun 22
$ `000
30 Jun 21
$ `000
Short term leases
19
65
At 30 June 2022 the Group was committed to short-term
leases giving rise to total commitments of $3,600
(2021: $Nil) at that date.
52
53
53
Consolidated StatementConsolidated Statement
Note 15: Issued Capital
Ordinary shares
Issued and fully paid
30 Jun 22
$
30 Jun 21
$
Accumulated losses
Movements in accumulated losses were as follows:
32,122,454
31,966,023
Accumulated Losses
30 Jun 22
30 Jun 21
Number
$
Number
$
Movements in ordinary shares on issue
At 1 July
Issue of shares (i)
At 30 June
186,628,385
31,966,023
186,628,385
31,966,023
1,111,112
156,431
-
-
187,739,497
32,122,454
186,628,385
31,966,023
Fully paid ordinary shares carry one vote per share and carry the right to dividend.
(i) On the 8th and 27th of October 2021 the Company issued 833,334 and 277,778 shares to former and current employees of the Company respectively in satisfaction of
conversion of employee options previously granted to executive and employees under the Company’s long-term incentive plan.
Ordinary shares entitled the holder to participate in dividends and the proceeds on winding up of the Company in proportion to
the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon
a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
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.
Share Options
The Company has one share-based payment option scheme under which options to subscribe for the Company’s shares have
been granted to certain Directors, other key management personnel and all employees, refer Note 17.
Note 16: Reserves and Accumulated Losses
Share-based payments reserve
This reserve is used to record the value of equity benefits provided to employees and Directors as part of their remuneration.
Refer to Note 17 for further details of these plans.
Reserves
Share-based payment reserve
Balance at end of financial year
30 Jun 22
$ `000
30 Jun 21
$ `000
413
413
646
646
Movement in this reserve is set out in the Consolidated Statement of Changes in Equity.
Balance at beginning financial year
Net loss for the year
Transfer on unlisted options forfeited/exercised
Balance at end of financial year
Note 17: Share-Base Payment Plans
Incentive Award Plan (“IAP”)
30 Jun 22
$ `000
(21,450)
(1,111)
329
(22,232)
30 Jun 21
$ `000
(19,479)
(2,167)
196
(21,450)
The Group has an Incentive Award Plan (“IAP”) for executives and employees of the Group. In accordance with the provisions of
the IAP, as approved by shareholders at a previous Annual General Meeting, executives and employees may be granted options
at the discretion of the Directors.
Each employee share option converts into one ordinary share of Talisman Mining Limited on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be
exercised at any time from the date of vesting to the date of their expiry.
The number of options granted is at the sole discretion of the Directors subject to the total number of outstanding options being
issued under the IAP not exceeding 5% of the Company’s issued capital at any one time.
Options issued to Directors under the IAP are subject to approval by shareholders and attach vesting conditions as appropriate.
The contractual life of each option granted is 4 years. There are no cash settlement alternatives.
The following options lapsed during the financial year:
Grant Date
Expiry date of
options
Number of shares
under option
Exercise price of
options
Fair Value
Vested Date
Number Lapsed
11-Nov-16
31-Oct-21
11-Nov-16
31-Oct-21
40,000
40,000
07-May-19
31-Oct-21
1,388,890
07-May-19
31-Oct-21
2,499,999
07-May-19
31-Oct-21
2,499,999
27-Nov-19
31-Oct-21
194,444
27-Nov-19
31-Oct-21
194,444
27-Nov-19
31-Oct-21
194,444
$0.46
$0.50
$0.14
$0.16
$0.18
$0.14
$0.16
$0.18
The following options were exercised during the financial year:
$0.32
$0.32
$0.04
$0.04
$0.04
$0.03
$0.03
$0.03
30-Jun-19
(40,000)
30-Jun-20
(40,000)
30-Apr-20
(1,388,890)
30-Apr-20
(2,499,999)
30-Apr-20
(2,499,999)
30-Nov-20
(194,444)
30-Nov-20
(194,444)
30-Nov-20
(194,444)
Grant Date
Expiry date of
options
Number of shares
under option
Exercise price of
options
Fair Value
Vested Date
Number Exercised
07-May-19
31-Oct-21
1,111,112
$0.14
$0.04
30-Apr-20
1,111,112
54
55
Consolidated StatementConsolidated Statement The following options were issued to Directors, executives and employees during the financial year:
Issuing entity
Grant Date
Expiry date
of options
Number of
shares under
option
Exercise price
of options
Fair Value
Vested Date
Talisman Mining Limited
18-Aug-21
18-Aug-23
325,000
Talisman Mining Limited
21-Apr-22
16-Dec-25
1,267,800
Talisman Mining Limited
20-Dec-21
16-Dec-25
2,871,400
Talisman Mining Limited
04-Jan-22
03-Jan-26
609,000
Talisman Mining Limited
05-Jan-22
04-Jan-26
642,900
$0.31
$0.25
$0.25
$0.25
$0.25
$0.09
$0.08
$0.08
$0.08
$0.08
18-Aug-22
19-Dec-24
19-Dec-24
03-Jan-25
04-Jan-25
The following share-based arrangements were in place at the end of the financial year:
Issuing entity
Grant Date
Expiry date
of options
Number of
shares under
option
Exercise price
of options
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,335
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,331
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,444
Talisman Mining Limited
7-May-19
31-Oct-22
2,083,334
Talisman Mining Limited
27-Nov-19
31-Oct-22
194,448
Talisman Mining Limited
18-Aug-21
18-Aug-23
325,000
Talisman Mining Limited
21-Apr-22
16-Dec-25
1,267,800
Talisman Mining Limited
20-Dec-21
16-Dec-25
2,871,400
Talisman Mining Limited
04-Jan-22
03-Jan-26
609,000
Talisman Mining Limited
05-Jan-22
04-Jan-26
642,900
$0.14
$0.14
$0.16
$0.16
$0.18
$0.18
$0.31
$0.25
$0.25
$0.25
$0.25
Fair Value
Vested Date
$0.05
31-Oct-20
$0.04
30-May-21
$0.05
31-Oct-20
$0.04
30-May-21
$0.04
31-Oct-20
$0.04
$0.09
$0.08
$0.08
$0.08
$0.08
30-May-21
18-Aug-22
19-Dec-24
19-Dec-24
03-Jan-25
04-Jan-25
The weighted average exercise price of each share option at the end of the financial year was $0.20 (2021: $0.16).
The weighted average remaining contract life of each share option at the end of the financial year was 1.71 years
(2021: 0.80 years).
There has been no alteration of the terms and conditions of the above share-based payment arrangements since grant date.
30 Jun 22
30 Jun 21
Number
$
Number
$
Movements in options over ordinary shares on issue
At 1 July
14,996,668
645,544
23,413,334
764,607
Directors’ and employees’ remuneration
5,716,100
96,499
-
91,856
Unlisted options forfeited
-
-
(333,332)
(14,544)
Unlisted options exercised
(1,111,112)
(44,520)
-
-
Unlisted options lapsed
(7,052,220)
(284,686)
(8,083,334)
(196.375)
At 30 June
12,549,436
412,837
14,996,668
645,544
The fair value of options granted during the year was $436,571 (2021: $Nil)
The fair value of the equity-settled share options granted
under the incentive plan is estimated as at the date of grant
using the Black-Scholes model taking into account the terms
and conditions upon which the options were granted.
21/22 Options
Inputs into model (i)
Option Tranche
2022E
2022D
2022A
Exercise price
$0.25
$0.25
$ 0.31
Grant date share price
$0.155
$0.16
$ 0.22
Expected volatility
81.5%
81.3%
98%
Risk-free interest rate
0.1%
0.1%
0.77%
Dividend yield (%)
Nil
Nil
Nil
Expected life of
options (years)
4.00
4.00
2.00
(i) The expected life of the options is based on historical data and is not necessarily
indicative of exercise patterns that may occur. The expected volatility reflects the
assumption that the historical volatility is indicative of future trends, which may
also not necessarily be the actual outcome. No other features of options granted
were incorporated into the measurement of fair value.
Note 18: Financial Instruments
(a) Introduction
(b) Categories of financial instruments
30 Jun 22
$ `000
30 Jun 21
$ `000
Financial assets
Cash and cash equivalents
8,908
9,900
Receivables
1,347
1,346
Financial liabilities
Trade and other payables
Lease liabilities
10,255
11,246
356
142
498
304
-
304
Fair value of financial assets and liabilities
The carrying amount of financial assets and financial liabilities
recorded in the financial statements represents their respective
net fair values, determined in accordance with the accounting
policies disclosed in Note 1.
The Directors consider that the carrying amounts of financial
assets and financial liabilities recorded in the financial
statements approximate their fair value.
The Group has exposure to the following risks arising from
financial instruments:
(c) Credit risk management
▪ Credit risk
▪ Liquidity risk
▪
▪ Capital risk
▪ Foreign currency risk
Interest rate risk
This note presents information about the Group’s exposure
to each of the above risks, their objectives, policies and
processes for measuring and managing risk and the
management of capital. Further quantitative disclosures are
included throughout this note and the financial report.
The Board of Directors has overall responsibility for the
establishment and oversight of the risk management
framework. Risk management policies are established
to identify and analyse risks faced by the Group, to set
appropriate risk limits and controls and to monitor risks and
adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions
and the Group‘s activities. The Group’s aim is to develop a
disciplined and constructive control environment in which all
employees understand their roles and obligations.
Credit risk refers to the risk that a counterparty will default
on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with
creditworthy counterparties and obtaining sufficient collateral
where appropriate, as a means of mitigating the risk of financial
loss from defaults. The Group only transacts with entities that
are rated the equivalent of investment grade and above. This
information is supplied by independent rating agencies where
available and, if not available, the Group uses publicly available
financial information and its own trading record to rate its major
customers. The Group’s exposure and the credit ratings of its
counterparties are continuously monitored, and the aggregate
value of transactions concluded is spread amongst approved
counterparties. Credit exposure is controlled by counterparty
limits that are reviewed and approved by the Risk Management
Committee annually.
Credit risk in other receivables is managed by the Group
undertaking a regular risk assessment process including
assessing the credit quality of the counterparty, considering its
financial position, past experience and other factors. As there
are a relatively small number of transactions, they are closely
monitored to ensure payments are made on time. Credit risk
arising from royalty receivables is managed by a contract that
stipulates payment terms and penalties for default. The Group
does not have any significant receivables which are past due
or impaired at the reporting date and it is expected that these
amounts will be received when due. The Group does not hold
any collateral in relation to these receivables.
The carrying amount of financial assets recorded in the financial
statements, net of any allowance for losses, represents the
Group’s maximum exposure to credit risk.
56
57
Consolidated StatementConsolidated Statement
(d) Liquidity Risk Management
(e) Interest rate risk
Foreign currency sensitivity analysis
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate
liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity
management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities.
The following table details the Company’s and the Group’s expected contractual maturity for its non-derivative financial
liabilities. These have been drawn up based on undiscounted contractual maturities of the financial asset and liabilities based
on the earliest date the Group can be required to repay. The tables include both interest and principal cash flows.
Less than
1 month
$ `000
1 to 3 months
$ `000
3 months
to 1 year
$ `000
1 to 5 years
$ `000
5+ years
$ `000
No fixed term
$ `000
Total
$ `000
2022
Financial Assets
Non-interest bearing
899
Variable interest rate
Fixed interest rate
-
-
-
7,060
-
899
7,060
Financial Liabilities
Non-interest bearing
Fixed interest rate
2021
Financial Assets
Non-interest bearing
Variable interest rate
Fixed interest rate
Financial Liabilities
Non-interest bearing
Fixed interest rate
299
5
304
166
6,820
-
6,986
264
-
264
-
16
16
-
-
3,080
3,080
-
-
-
483
-
80
563
57
45
102
16
-
120
136
40
-
40
-
-
13
13
-
76
76
-
-
13
13
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,720
-
-
3,102
7,060
93
1,720
10,255
-
-
-
1,031
-
-
356
142
498
1,213
6,820
3,213
1,031
11,246
-
-
-
304
-
304
The Group is not exposed to interest rate risk on existing
finance facilities as the Group’s borrowings are at fixed
interest rates for the respective terms of the facilities.
Some of the Group’s assets are subject to interest rate risk
but the Group is not dependent on this income.
Interest rate sensitivity analysis
The sensitivity analysis of the Group’s exposure to interest
rate risk at the reporting date has been determined based
on a change of 50 basis points in interest rates taking place
at the beginning of the financial year and held constant
throughout the year.
At reporting date, if interest rates had been 50 basis points
higher and all other variables were constant, the Group’s net
loss would have reduced by $44,138 (2021: net loss reduced
by $34,100).
The sensitivity analysis below details the Group’s sensitivity
to an increase/decrease in the Australian dollar against
the United States dollar. The sensitivity analysis includes
only outstanding foreign currency denominated monetary
items, including external loans within the Group where the
denomination of the loan is in a currency other than the
currency of the lender or the borrower and adjusts their
translation at balance date by a 1% increase in foreign
currency rates
A 1% increase in the currency rate is the sensitivity rate
used when reporting foreign currency risk internally to
management and represents management’s assessment
of the possible change in foreign exchange rates.
At balance date, if foreign exchange rates had been
1% higher and all other variables were held constant,
the Group’s
▪ net loss would increase by $11
(2021: net loss increase of $11) and
▪ equity reserves would increase/decrease
by $Nil (2021: $Nil).
(f) Capital risk management
The Board’s policy is to maintain a strong capital base so
as to maintain investor, creditor and market confidence and
to sustain future development of the business. The capital
structure of the Group consists of equity only, comprising
issued capital and reserves, net of accumulated losses.
The Group’s policy is to use capital market issues and debt
funding to meet the funding requirements of the Group.
There were no changes in the Group’s approach to capital
management during the year.
The Group is not subject to externally imposed
capital requirements.
(g) Foreign currency exchange rate risk management
The Group undertakes certain borrowing transactions
denominated in United States Dollars, hence exposures to
exchange rate fluctuations arises.
The carrying amounts of the Group’s foreign currency
denominated monetary assets and monetary liabilities at
balance date are as follows:
Consolidated
Liabilities
Consolidated Assets
2022
$ `000
2021
$ `000
2022
$ `000
2021
$ `000
US Dollars
-
-
1
1
58
59
59
Consolidated StatementConsolidated Statement
Mt Walton JV
Assets
30 Jun 22
$ `000
30 Jun 21
$ `000
Lucknow Gold JV
Exploration expenditure
Consolidated Statement
Cash and cash equivalents
306
461
Within one year
76
34
Note 19: Joint Operations
In November 2017, Haverford Holdings Pty Ltd
(“Haverford”), a 100%-owned subsidiary of Talisman,
entered into a Farm-In Agreement (“FIA”) with Peel Mining
Limited (ASX:PEX, “Peel”) over Peel’s Mt Walton (EL8414)
and Michelago (EL8451) Projects (collectively the Peel
Tenements) in the Cobar Basin region of New South Wales.
During the financial year, and in accordance with the terms
of the FIA, Haverford earned a 75% interest in the Peel
Tenements and formed an unincorporated joint venture (the
“Mt Walton JV”) with Peel. Haverford is the Joint Venture
Manager. Subsequent to the formation of the Mt Walton JV,
Peel elected to dilute part of its participating interest in the
joint venture and both parties are now required to
contribute funds to ongoing exploration activities on the
Peel Tenements based on their participating interest
(Haverford 87% and Peel 13%) in order to maintain their
respective interests.
Additionally, in August 2019, Talisman B Pty Ltd (“TLMB”), a
100%-owned subsidiary of Talisman, entered into a Farm-In
Agreement (“Agreement”) with privately-owned Lucknow
Gold Ltd (“LGL”) over LGL’s Lucknow Gold Project (EL6455)
(Lucknow Project) in New South Wales. During the financial
year, and in accordance with the terms of the Agreement,
TLMB earned a 51% interest in the Lucknow Project and
formed an unincorporated joint venture (the “Lucknow Gold
JV”) with LGL. TLMB acts as manager of the joint venture.
Both parties are now required to contribute funds to future
activities on the Lucknow Project based on their participating
interest (TLMB 51% and LGL 49%) in order to maintain their
respective interests.
The Group is entitled to a proportionate share of the income
received and bears a proportionate share of the operation’s
expenses for each joint venture.
The joint operation accounts, which are proportionately
consolidated based on the above equity percentages in the
consolidated financial statements, are disclosed as follows:
Joint Operation
Operator
Mt Walton JV
Lucknow
Gold JV
Haverford
Holdings
Pty Ltd
Talisman B
Pty Ltd
Jun 2022
Beneficial
Interest
Jun 2021
Beneficial
Interest
87%
80%
51%
51%
The Group’s interests in the assets/liabilities employed in the
above Joint Operations are detailed below. The amounts are
included in the financial statements under their respective
asset categories.
Trade and other receivables
27
18
Total assets
Liabilities
333
479
Trade and other payables
1
126
Total liabilities
Net assets
Carrying amount of interest
in joint venture
Lucknow Gold JV
Assets
1
126
332
353
332
353
30 Jun 22
$ `000
30 Jun 21
$ `000
Cash and cash equivalents
18
23
Trade and other receivables
1
1
Total assets
Liabilities
Trade and other payables
Total liabilities
Net assets
Carrying amount of interest
in joint venture
19
24
-
-
5
5
19
19
19
19
The Joint Ventures have no contingent liabilities and capital
commitments with the exception that in order to maintain
current rights of tenure to exploration tenements, the Joint
Ventures are required to perform exploration work to meet
the activity obligation requirements specified by various
State governments. These obligations are not provided for in
the financial report and are payable as follows:
Mt Walton JV
Exploration expenditure
30 Jun 22
$ `000
30 Jun 21
$ `000
Within one year
200
112
After one year but not more
than five years
322
304
Greater than five years
-
-
522
416
30 Jun 22
$ `000
30 Jun 21
$ `000
Note 21: Related Party Disclosures
Other transactions with key
management personnel
No member of the key management personnel appointed
during the year received a payment as part of his or her
consideration for agreeing to hold the position.
After one year but not more
than five years
346
138
Greater than five years
-
4
Details of key management personnel
422
176
The key management personnel of Talisman Mining Limited
during the year were:
Note 20: Commitments and Contingencies
Directors
Commitments
In order to maintain current rights of tenure to exploration
tenements, the Group is required to perform exploration
work to meet the minimum expenditure requirements
specified by various State governments. These obligations
are not provided for in the financial report and are payable
as follows:
Kerry Harmanis
Non-Executive Chairman
Brian Dawes
Non-Executive Director
Peter Benjamin
Non-Executive Director
Jeremy Kirkwood
Non-Executive Director
Executives
Shaun Vokes
Chief Executive Officer
(appointed 2 July 2021)
Exploration Manager
(appointed 2 August 2021)
30 Jun 22
$ `000
30 Jun 21
$ `000
Russell Gregory
Exploration expenditure
Within one year
1,831
1,150
After one year but not more
than five years
2,700
1,599
Greater than five years
239
279
Key management personnel compensation is disclosed in
the Remuneration Report which forms part of the Directors’
Report and has been audited.
The total remuneration paid to key management personnel
of the Company and the Group during the year was
as follows:
4,770
3,028
If the Group decides to relinquish certain exploration
tenements and/or does not meet these obligations, assets
recognised in the statement of financial position may require
review to determine the appropriateness of carrying values.
The sale, transfer or farm-out of exploration rights to third
parties will reduce or extinguish these obligations.
Contingencies
There are no material contingent liabilities or assets as at
30 June 2022 and no contingent liabilities or assets were
incurred in the interval between the period end and the date
of this financial report.
Short-term
employee benefits
30 Jun 22
$ `000
30 Jun 21
$ `000
724,634
905,283
Post-employment benefits
66,167
82,877
Other long-term benefits
-
57,083
Share-based payments(i)
75,646
80,434
Total key management
personnel compensation
866,447
1,125,677
(i) The value of share-based payments shown in the
table above are non-cash values based on an accounting
valuation calculated under the Black Scholes option
pricing method.
60
61
Consolidated StatementConsolidated Statement
Note 22: Interest in Subsidiaries
The consolidated financial statements include the financial statements of Talisman Mining Limited and the subsidiaries listed in the
following table:
Name
Haverford Holdings Pty Ltd
Talisman B Pty Ltd
Country of
Incorporation
Australia
Australia
Equity Interest
Investment
2022
%
100
100
2021
%
100
100
2022
$
2021
$
68,000
68,000
1
1
Talisman Mining Limited is the ultimate parent entity and ultimate parent of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been
eliminated on consolidation.
Details of transactions between the Group and other related entities are disclosed below.
Note 23: Parent Entity Disclosures
The financial information for the parent entity, Talisman Mining Limited, has been prepared on the same basis as the
consolidated financial statements, except as set out below.
Investments in subsidiaries, associates and joint venture entities
(Loss) for the year
Other comprehensive income
Total comprehensive (loss)
Note 24: Auditor’s Remuneration
Year ended
30 Jun 22
$ `000
(1,242)
-
(1,242)
The auditor of Talisman Mining Limited is HLB Mann Judd. Remuneration received by the auditors:
Audit or review of the financial report
Other services – taxation compliance
Total Remuneration of Auditors
Note 25: Subsequent Events
30 Jun 22
$
46,395
3,600
49,995
30 Jun 21
$ `000
(2,730)
-
(2,730)
30 Jun 21
$
44,967
-
44,967
Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity’s financial statements.
Dividends received from associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying
amount of these investments.
There has not been any other matter or circumstance occurring subsequent to the end of the financial year that has significantly
affected, or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in future financial years.
Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the Group
is treated as a capital contribution to that subsidiary undertaking. The fair value of employee services received, measured
by reference to the grant date fair value, is recognised over the vesting period as an increase to investment in subsidiary
undertakings, with a corresponding credit to equity.
Disclosures as at 30 June 2022 and for the year then ended in relation to Talisman Mining Limited as a single entity are noted in
the following tables.
30 Jun 22
$ `000
30 Jun 21
$ `000
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share based payment reserve
Accumulated losses
Total equity
62
9,333
195
9,528
318
76
394
9,134
32,122
413
(23,401)
9,134
10,176
63
10,239
115
-
115
10,124
31,966
646
(22,488)
10,124
63
63
Consolidated StatementConsolidated Statement Directors’ Declaration
Talisman Mining Limited
The Directors of the Company declare that:
1.
the consolidated financial statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive
Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flows, Consolidated Statement of
Changes in Equity, and accompanying notes are in accordance with the Corporations Act 2001, and:
Additional Securities
Exchange Information
as at 21 September 2022
1. Number of Holders of Equity Securities
2. Company Secretary
(a) comply with Accounting Standards and the Corporations Regulations 2001; and
(a) Distribution of holders of equity securities
The name of the company secretary is Alexander Neuling.
(b) give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year ended on that
date of the Group;
2.
the Chief Executive Officer of the Group has declared as required by Section 295A that:
(a) the financial records of the Group for the financial year have been properly maintained in accordance with Section 286
of the Corporations Act 2001;
(b) the financial statements and notes for the financial year comply with the Accounting Standards; and
(c) the financial statements and notes for the financial year give a true and fair view.
3.
in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
4. The Group has included in the notes to the financial statements an explicit and unreserved statement of compliance
with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors
Jeremy Kirkwood
Perth, 23 September 2022
Range
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and Over
No. of holders
Securities
160
486
443
854
282
74,016
1,503,646
3,675,849
32,718,469
149,767,517
3. Registered office and principal
administrative office
Registered and principal administrative office:
Suite 1 Ground Floor, 33 Colin Street
West Perth, Western Australia 6005
Telephone +61 8 9380 4230
Total
2,225
187,739,497
Registered securities are held at the following address:
Link Market Services Limited
Level 12, QV1 Building
250 St Georges Terrace
Perth, Western Australia 6000
4. Securities exchange listing
Quotation has been granted for all the ordinary shares of
the Company on all Member Exchanges of the Australian
Securities Exchange Limited
5. Restricted securities
There are no restricted securities or securities in voluntary
escrow at the date of this report.
(b) Voting rights
Each ordinary share is entitled to one vote when a poll is
called, otherwise each member present at a meeting or by
proxy has one vote on a show of hands.
(c) Less than marketable parcel of shares
The number of shareholders holding less than a marketable
parcel is 459 (holding a total of 750,151 shares) given a
share value of $0.145 cents per share.
(d) (d) Substantial Shareholdings:
Ordinary Shareholders
Fully paid ordinary shares
Number
%
Mr Kerry Kyriakos Harmanis
34,914,450
18.6%
Set out above is an extract from the Company’s register
of last substantial shareholder notices as received by the
Company and/or lodged at the ASX. Shareholdings and
percentages reported in the table are as reported in the
most recent notifications received, however these may differ
from current holdings as substantial holders are required to
notify the Company only in respect of changes which act to
increase or decrease their percentage holding by at least 1%
of total voting rights.
64
64
65
Consolidated StatementConsolidated Statement
6. Twenty largest holders of ordinary shares
Ordinary Shareholders
HARMAN NOMINEES PTY LTD
TYCHE HOLDINGS PTY LTD
HARMANIS HOLDINGS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
TYCHE HOLDINGS PTY LTD
TYCHE HOLDINGS PTY LTD
HARMANIS HOLDINGS PTY LTD
INVESTMENT HOLDINGS PTY LTD
JARHAMCHE PTY LTD
ARGONAUT SECURITIES (NOMINEES) PTY LTD
1
2
3
4
5
6
7
8
8
9
10 MR JOHN FORD
11 MR JONATHAN G BENNETT
12
13
14
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
SIREB PTY LTD
15 MR PETER CHARLES WIGHAM
16
REGENT CORPORATION 2001 PTY LTD
17 MR BRIAN ERNEST ZUCAL & MR STEPHEN BRIAN ZUCAL
18
19
SYDNEY FUND MANAGERS LIMITED
TYCHE HOLDINGS PTY LTD
20 MR KIERAN PATRICK AYLWARD
7. Unquoted equity securities
Number
11,111,111
6,400,001
5,492,887
4,692,169
3,850,000
3,510,000
3,080,451
2,500,000
2,500,000
2,240,000
2,136,768
2,123,901
2,080,612
1,917,940
1,904,464
1,740,500
1,663,789
1,550,000
1,500,000
1,470,000
1,400,000
%
5.92
3.41
2.93
2.50
2.05
1.87
1.64
1.33
1.33
1.19
1.14
1.13
1.11
1.02
1.01
0.93
0.89
0.83
0.80
0.78
0.75
Class
Exercise Price
Expiry Date
Number
Number of holders
Unlisted options
0.14
Unlisted options
0.16
Unlisted options
0.18
Unlisted options
0.31
Unlisted options
0.25
Unlisted options
0.25
All options have no voting rights.
8. On-market buy back
31-Oct-22
31-Oct-22
31-Oct-22
18-Aug-23
16-Dec-25
03-Jan-26
2,277,779
2,277,775
2,277,782
325,000
4,139,200
304,500
10
10
10
1
8
1
At the date of this report the Company is not involved in an on-market buy-back.
66
Consolidated Statement 2
0
2
2
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Address
Suite 1, Ground Level,
33 Colin Street
West Perth WA 6005
PO Box 349 West Perth 6872 WA, Australia
Phone
+61 8 9380 4230
Fax
+61 8 9382 8200