AND ITS CONTROLLED ENTITIES
A.B.N. 66 624 721 035
ANNUAL REPORT
For the Year Ended
30 JUNE 2024
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONTENTS PAGE
Page
Letter from the Chair
1
Corporate Directory
2
Directors’ Report
3
Auditor's Independence Declaration
50
Consolidated Statement of Profit or Loss and Other Comprehensive Income
51
Consolidated Statement of Financial Position
52
Consolidated Statement of Changes in Equity
53
Consolidated Statement of Cash Flows
54
Notes to the Financial Statements
55
Consolidated Entity Disclosure Statement
77
Directors' Declaration
78
Independent Auditor's Report
79
Additional Information
83
TECHGEN METALS LIMITED
ABN 66 624 721 035
LETTER FROM THE CHAIR
1
Dear Shareholders,
It is my pleasure to present the 2024 Annual Report for TechGen Metals Ltd.
Over the past 12 months, we have achieved significant advancements across our project portfolio, particularly
through our strategic focus on gold and battery metals projects throughout Australia. This approach has created a
robust pipeline that positions us strongly for future opportunities.
A key highlight of the past year has been our expansion in the Kimberley region of Western Australia. In May and
June 2024, we secured four promising gold-copper projects in East Kimberley, each offering significant potential.
The Blue Devil Project stands out with high-grade rock chip values of 50.5% copper, 6.9 g/t gold, and 53 g/t silver.
Mid-year, a field visit to the northern project area led to the collection of six rock chip samples, which returned
high-grade assay results, including 18.5g/t gold and 24.9% copper. The Sally Downs Project benefits from its
strategic location just 10km from the Savannah Nickel-Copper Mine. Additionally, the Copper Springs Project is
notable for its widespread malachite-azurite-iron gossans, while the Springvale Project features undrilled VTEM
and gravity targets in a geological setting similar to the Panton PGE Deposit. An airborne EM survey is set to
commence across all these projects, positioning TechGen with a first-mover advantage in exploring massive
sulphide, intrusive, and shear-hosted deposits within this mineral-rich district.
At our Station Creek and Mt Boggola projects, new antimony targets have emerged, with grades up to 7.05% Sb,
including 2.25%, 2.13%, 1.94%, and 1% at Station Creek. Mt Boggola has four targets exceeding 1% Sb. At
Station Creek, a 1.2km by 400m soil anomaly at over 15ppm Sb remains open for further exploration. This marks
the first focused exploration for antimony in the area. As a critical mineral essential for military and battery
applications, antimony's strategic importance has grown with recent export restrictions from China.
At the John Bull Project in New South Wales, our Stage 2 drilling program confirmed the presence of a large-scale
gold system, with significant gold intersections over a 300m strike length. The next phase of drilling, for which
permits have been received, will aim to build on these promising results. The John Bull Project holds considerable
potential, with untested soil anomalies and evidence of both monzonite-hosted and orogenic gold mineralisation.
Elsewhere, in February 2024, we acquired the Ponton and Myroodah Uranium Projects, broadening our exposure
to uranium beyond the Mt Boggola South project. Additionally, we are also advancing our joint venture with IGO
Limited at the North Nifty Project, where preparations for the upcoming field season are well underway.
The momentum generated by our exploration activities enabled us to undertake a $2.79 million capital raise during
the year. This funding has positioned us to aggressively pursue our exploration strategy and complete the planned
programs across our portfolio. As we continue to evaluate new growth opportunities, our commitment to
responsible exploration, fiscal discipline, and shareholder value remains resolute.
Thank you for your continued support. We are excited about the future and look forward to sharing our ongoing
progress with you.
Sincerely,
Maja McGuire
Non-Executive Chair
TECHGEN METALS LIMITED
ABN 66 624 721 035
CORPORATE DIRECTORY
2
Directors
Maja McGuire (Non-Executive Chair)
Ashley Hood (Managing Director)
Andrew Jones (Executive Technical Director)
Company Secretary
Aida Tabakovic
Registered Office and
Principal Place of Business
683 Murray Street
West Perth WA 6005
Share Register
Computershare Investor Services Pty Ltd
Level 17, 221 St Georges Terrace
Perth Western Australia 6000
Auditors
PKF Brisbane Audit
Level 2, 66 Eagle Street
Brisbane QLD 4000
Legal Advisors
Nova Legal Pty Ltd
Level 2, 50 Kings Park Road
West Perth WA 6005
Website
www.techgenmetals.com.au
Stock Exchange Listings
Australian Securities Exchange
ASX Code: TG1, TG1O
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
3
Your directors present their report on TechGen Metals Ltd (“the Company”) and its controlled entities (“the Group”)
for the financial year ended 30 June 2024.
The names of the directors in office at any time during, or since the end of, the year are:
Andrew Jones
Ashley Hood
Maja McGuire
Directors have been in office since the start of the financial year to the date of this report, unless otherwise stated.
Company Secretary
Aida Tabakovic
Principal Activities
During the financial year the principal continuing activities of the Group consisted of mineral exploration activities
in Western Australia and New South Wales.
Review of Operations
The Group is an active explorer with a diversified pipeline of battery metal and precious metal projects located in
Australia. The Group is continually reviewing strategic growth opportunities and assessing the current project
portfolio.
The following highlights were recorded during the 2024 financial year:
Ida Valley Project, WA (Lithium, Gold)
•
Review of previous soil data identified Lithium & Caesium soil targets (Peak values of 144.5 ppm Li &
49.8 ppm Cs).
•
Field checking of soil targets identified widespread pegmatite outcrops at all target locations.
•
RC drilling commenced in April 2024 to test lithium and gold targets.
•
A high grade gold intercept of 4m @ 6.73g/t Au was returned from 48m in hole IVRC037.
John Bull Project, NSW (Gold)
•
Stage 2 drilling program completed with evidence of large-scale gold system.
•
Gold intersections returned include 22m @ 1.07g/t Au, 9m @ 1.82g/t Au and 7m @ 1.07g/t Au (hole
JBRC016).
•
Drilling has now identified gold mineralisation over 300m of strike (north – south) with a further 900m of
soil gold anomalism remaining to be tested by drilling (including high priority areas in the north where a
10g/t Au soil anomaly was detected, as well as the southern zone which contains a mineralised monzonite).
•
Permits for Stage 3 drilling program have been approved.
Station Creek Project, WA (Copper, Silver, Gold)
•
Program of geological mapping and rock chip sampling of structural copper targets at the Station Creek
Project was completed.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
4
Mt Boggola Project, WA (Copper, Gold, Silver)
•
Geological mapping and sampling trip to sample radiometric (thorium & uranium) and airborne EM targets
at the Mt Boggola Project has been planned and due to commence in mid September 2024.
Kimberley Projects, WA (Gold and Base Metals)
•
During May and June 2024 the Group acquired four new projects in the East Kimberley region of WA
prospective for gold-copper, nickel-copper-PGE and zinc-lead-silver mineralisation.
•
Airborne EM survey to commence at Blue Devil, Copper Springs & Sally Downs Projects in July 2024.
Ponton & Myroodah Uranium Projects, WA (Uranium)
•
In February 2024 the Group acquired the Ponton and Myroodah Projects both considered prospective for
uranium mineralisation.
Harbutt Range Project, WA (Nickel, Copper, PGE, Gold, Lead, Zinc)
•
Rio Tinto Exploration undertook a ground EM survey at the Harbutt Range Project (Cu-Au; Ni-PGE).
•
Rio Tinto Exploration withdrew from the Joint Venture at the Harbutt Range Project.
•
The Harbutt Range Project tenements were surrendered in July 2024 and expenditures on the tenements
were impaired during the year.
North Nifty Project, WA (Copper & Gold and Lead & Zinc)
•
The Group entered into a Joint Venture agreement with IGO Limited.
•
IGO Limited continues planning for the upcoming field season at the North Nifty Project in the Paterson
Orogen.
GROUP PROJECTS
Figure 1: Location of the Group’s Projects.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
5
Yilgarn Craton Projects
The Archean-age Yilgarn Craton is Australia's premier gold and nickel province and is located in the southern half
of Western Australia. The Craton consists of oval shaped areas of granite rocks fringed by arcuate greenstone belts
and has been divided into a number of geological terranes which are separated by significant regional scale faults.
The Group considers the El Donna project to be prospective for gold mineralisation, the Ida Valley Project to be
prospective for lithium and gold mineralisation. The Group withdrew from the Narryer Project during the year.
Figure 2: Location of the Yilgarn Craton Projects.
Ida Valley Project
The Ida Valley Project is located 90km northwest of Leonora in the Goldfields Region of Western Australia. The
project consists of two Exploration Licences, E29/1053 and E36/1015, covering a combined area of 124 km2 and is
located within the Kalgoorlie Terrane of the Yilgarn Craton. The Ida Valley Project is situated in an emerging
world-class lithium province with test work to establish the lithium fertility of the project ongoing.
The project has previously been subject to soil sampling surveys and RC drilling targeting gold mineralisation along
the Ida Fault. The project contains its own concealed greenstone belt approximately 50km north and along strike
from Delta Lithium’s Mt Ida deposit (14.7Mt @ 1.2% Li2O; Refer to DLI ASX announcement 8th Aug 2023) and
100km south of Kathleeen Valley Lithium Deposit (156Mt @ 1.40% Li2O; Refer to LTR ASX announcement 19th
October 2023).
During the period review of previous soil data identified priority Lithium and Caesium targets with soil anomaly
peaks of 144.5ppm Lithium and 49.8ppm Caesium. A total of 16 targets of interest have been identified with two
Priority 1 targets (Northwest & Central) and three Priority 2 targets. The two Priority 1 targets are anomalous for
Li and supporting pathfinder elements including Cs, Rb, Nb & Ta. The Group is currently focussed on the below 3
targets in particular: the Northwest target (peak soil values of 144.5ppm Li & 16.15ppm Cs – [BBGA1707]) contains
a 1.6km long +10ppm lithium soil anomaly; Central target (peak soil value of 92.2ppm Li – [BBGA032]) with
limited lithium soil sampling north and south; and Southern target (peak soil values 102.5ppm Li & 49.8ppm Cs –
[BBAG509]) contains a 2.5km long +10ppm lithium soil anomaly.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
6
Field checking of these soil anomalies identified widespread pegmatite occurrences. Forty-one pegmatite rock chip
samples were taken from the Northwestern Central and Southern targets with assays awaited. In addition, 500 soil
sample pulps previously only assayed for gold which occur between the Central and Southern lithium targets have
been submitted for multi-element assay with assays awaited.
In late April 2024, the Group completed an 11 hole RC drilling program for 1,368 metres to test a soil gold anomaly
(Pinnacle) and two priority lithium-caesium-tantalum soil anomalies (Central & Northern). The program consisted
of two east-west drill lines. Assay results returned a high-grade gold intercept of 4m @ 6.73g/t Au from 48 - 52m
in RC drill hole IVRC0037 at the Pinnacle Prospect. This drill intercept remains open along strike to both the north
and south, where a gold soil anomaly extends for approximately 1.5 km, as well as up dip and down dip from hole
IVRC0037.
Figure 3: Ida Valley location- Leonora Mining District WA.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
7
El Donna Project
The El Donna Project is located 50km northeast of Kalgoorlie in the Goldfields Region of Western Australia. The
project consists of a single Exploration Licence, E27/610, covering an area of 14km2 located within the Kurnalpi
Terrane of the Yilgarn Craton. The El Donna Gold Project is considered prospective for gold mineralisation similar
to that observed at both the Mayday North Gold Mine, 2km to the north, and the Penny's Find Gold Mine, 3.5km
to the south.
Exploration completed by the Group has included soil sampling, rock chip sampling and RC drilling.
Soil assays returned a peak value of 92ppb Au (0.092ppm) and 481ppm As. Soil results have identified several new
areas of gold anomalism and arsenic anomalism which include a 1.3km long +20ppb Au anomaly in the western
project area and a 1km long +20ppb Au anomaly in the eastern project area along with several other areas of
anomalism.
Figure 4: Soil sampling results (+20ppb Au contour) and previous drilling at the El Donna Project.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
8
Ponton Project, WA
The Ponton Project is on Exploration Licence Application E39/2472 located 160km northeast of Kalgoorlie in
Western Australia. The project area covers the western extension of the Ponton paleochannel. The Ponton
paleochannel is held to the immediate east by Manhattan Corporation where it is host to the Double 8 Uranium
deposit and a number of drilled uranium prospects. The Double 8 Uranium deposit has a resource of 17.2Mlb U3O8
at a 200ppm cut-off grade (refer to ASX: MHC announcement 23rd Jan 2017).
An untested uranium radiometric anomaly is present in the northwest project area (Figure 5). Open file airborne
radiometrics clearly delineate paleochannel extensions that remain untested and appears to cover a major tributary
of the Ponton paleochannel.
Initial exploration is currently being planned and is likely to include traverses with a hand help scintillometer and
reprocessing of radiometric data.
Figure 5: Nearby uranium deposit and exploration targets with uranium radiometrics over project area.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
9
Narryer Project
The Narryer Project is located 650km north of Perth and consists of Exploration Licence Application E20/1022 and
Exploration Licence Application E09/2699 covering a combined area of 380km2 . The project is in the Narryer
Terrane on the edge of the Archean-aged Yilgarn Craton. The western edge of the Yilgarn Craton represents the
emerging under-explored West Yilgarn Ni-Cu-PGE Province which covers an area of 1,200km x 100km. The West
Yilgarn Ni-Cu-PGE Province contains the Julimar Ni-Cu-PGE Deposit discovered in March 2020 by Chalice
Mining Limited.
In July 2023, the Group signed an Option Agreement with ASX-listed Narryer Metals for the Exploration Licence
adjoining the project to the south. Following a review of completed exploration the Group withdrew from the JV
with Narryer Metals and withdrew the two additional exploration licence applications. During the year the Group
fully impaired the capitalised costs incurred for exploration licence applications E20/1022 and E09/2699 given that
Narryer Project tenements were withdrawn post year end.
Figure 6: The Narryer Project area on regional airborne magnetics.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
10
John Bull Project (Gold)
The John Bull Project is located between Glen Innes and Grafton in northern New South Wales within the New
England Orogen. The prior acquisition comprised the purchase of 100% interest in tenement EL9121 and the
purchase of a 90% interest in tenement EL8389.
The New England Orogen forms the eastern margin of the Australian continent and extends for over 1,700km from
central NSW through to northern QLD. The rock units that form the New England Orogen range in age from
Neoproterozoic through to Mesozoic. Numerous mineral deposit styles are known within the New England Orogen.
Historic gold workings at the project consist of several shallow shafts sunk in the 1870’s and two later, large areas
of surface gold sluicing. Creeks below the colluvial workings have also been worked for alluvial gold. Sheeted and
stockwork quartz veining is widespread over the area of the sluiced colluvial workings. The last significant
exploration activity was carried out between 1983 to 1985 by Kennecott and Southern Goldfields Ltd. Activity
included a 220m long backhoe dug trench into weathered quartz veined bedrock across the main (northern) area of
alluvial gold sluicing, which averaged 1.2 g/t Au across the interval 0 - 160m (with 5m composite assay intervals
ranging up to 18.0 g/t and 7.1 g/t Au). Sample assay repeats of higher-grade zones indicate some degree of
variability in results which is commonly associated with the presence of coarse gold.
The Group has completed widespread soil sampling and 2 RC drilling programs (17 holes). Soil sampling has
identified a very broad gold and arsenic soil anomaly with quite a few +1g/t Au soil samples (1.2km long soil
anomaly). RC drilling has been undertaken along 4 east-west drill lines (300m north to south). Each of the 17 drill
holes completed to date have returned intercepts of +1g/t Au and hole 1 (JBRC001) intersected 68m @ 1g/t Au from
surface and hole 6 (JBRC006) intersected 66m @ 1.14g/t Au from 32m.
Approvals have now been received for the Stage 3 drilling program. Stage 3 plans to drill test both the northern gold
soil anomaly, which includes the highest recorded soil sample to date at an impressive 10g/t Au, and the southern
gold anomaly which overlies an area of mineralised monzonite intrusive.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
11
Figure 7: Project location map with regional mineral endowment.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
12
Figure 8: Gold soil geochemistry, best grades, Stage 1 & 2 drill collar locations.
Figure 9: Discovery cross section from 2022 RC drilling, John Bull Project.
0.1g/t
Au
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
13
Paterson Orogen Projects
The Proterozoic-aged Paterson Orogen contains Telfer, one of Australia's largest gold deposits, the Kintyre Uranium
deposit and the Nifty Copper Mine. The Orogen can be subdivided into two major packages of rocks. The older
package is the Rudall Complex and the younger package is subdivided into the Lamil Group, Throssell Group and
Tarcunyah Group. The Paterson Orogen has seen a high level of recent exploration activity following the discovery
of the Havieron Au-Cu deposit in 2018 by Greatland Gold Plc and the discovery of the Winu Cu-Au deposit by Rio
Tinto Ltd in 2019.
The Group considers its Paterson Orogen Projects to be prospective for intrusive related copper-gold and sediment
hosted base metal (copper-lead–zinc–silver) style mineralisation.
Figure 10: Location of the Paterson Orogen Projects.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
14
Harbutt Range Project
The Harbutt Range Project is located 320km east of the town of Newman on the edge of the Great Sandy Desert in
Western Australia. The project comprises two granted Exploration Licences, E45/5294 and E45/5439, and a new
Exploration Licence Application, E45/6602, covering a combined area of 436km2.
In September 2022, the Group entered into an Earn-In and Joint Venture agreement with Rio Tinto Exploration Pty
Limited (“RTX”) at the Harbutt Range Project. Under the agreement, RTX can earn up to an 80% interest in the
project by sole funding exploration expenditure of $3 million dollars over 5 years and completing a minimum of
3,000 metres of RC and/or diamond drilling. The new Exploration Licence Application is not subject to the Joint
Venture.
During the September 2023 Quarter, RTX gave notice of its withdrawal from the JV.
The project tenements were surrendered in July 2024 and therefore the capitalised expenditures on tenements
were impaired during the year.
Figure 11: Harbutt Range Project area with Airborne Magnetics.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
15
North Nifty Project
The North Nifty Project is located approximately 250km northeast of Newman in Western Australia. The project
comprises two Exploration Licences, E45/5506 and E45/5511, covering a combined area of 47km2.
The North Nifty Project lies within the Throssell Group, the younger portion of the Paterson Orogen. The Project
has experienced limited exploration with exploration to date focusing on the Hakea Prospect, a broad copper
anomaly identified initially by lag sampling.
This project is subject to a Joint venture agreement with IGO Limited where IGO Limited may earn an 80% joint
venture interest in the project by sole funding A$500,000 of exploration within 4 years. TechGen’s 20% interest
will be free carried until completion of a Feasibility Study.
IGO Limited are reviewing available data and planning for the upcoming field season.
Figure 12: North Nifty Project area on geology.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
16
Kimberley Projects, WA
During May and June 2024 the Group lodged exploration licence applications for four separate project areas located
near Halls Creek in the East Kimberley Region of Western Australia. Geologically the Kimberley Projects are
located within the Proterozoic-aged Halls Creek Orogen which is subdivided in the project areas into the Lamboo
Province, Sally Downs Supersuite and Wolfe Basin. The Halls Creek Orogen is host to a wide variety of mineral
deposits including the Argyle Diamond Mine, Savannah Nickel-Copper Mine, Panton PGE Deposit, McIntosh
Graphite Deposit and Brockman REE Deposit.
Figure 13: Location of the Kimberley Projects (Blue Devil, Copper Springs, Springvale & Sally Downs).
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
17
Blue Devil Project, WA
The Blue Devil Project is on Exploration Licence Application E80/6047 located 45km east northeast of Halls Creek
in Western Australia. The project consists predominantly of outcrops of the Olympio Formation, of the Halls Creek
Group, and limestones and dolomites of the Ruby Plains Group. Overlying the Olympio Formation, several very
prominent ridges of Ruby Plains Group sediments are present.
Sipa-Gaia NL undertook considerable early-stage exploration including rock chip sampling (237 samples on project
area), soil sampling, stream sediment sampling, mapping and drill testing of Zn-Pb-Ag targets in eastern project
area. Out of the 237 rock chip samples assayed by Sipa from the current project area 13 samples assayed greater
than 1% Cu (range 0.0005% - 47.3% Cu). Other interesting rock chip results include 1.4% Pb, 1.02% Zn & 52.5g/t
Ag. The drilling they undertook was targeting stratiform base metal mineralisation in the eastern project area and
the areas of higher-grade copper and gold rock chip anomalism have not been tested. Spartan Exploration NL
assayed 34 rock chip samples from the project area with 15 of those samples assaying at greater than 1% Cu (range
0.004% - 50.5% Cu).
Zinc-Lead-Silver anomalism is widespread overlying dolomitic lithologies of the Ruby Plains Group in the eastern
project area and is interpreted to represent Mississippi Valley Type (MVT) style base metal mineralisation. Sipa-
Gaia NL drill tested targets in this area previously (Target T4; Figure 14).
Stream, soil and rock chip Cu-Au anomalism is pre-dominantly within units of the Olympio Formation. Coincident
stream sediment Cu-Au anomalism, soil Cu-Au anomalism and rock chip Cu-Au anomalism occurs in several areas
with element associations suggesting potential for intrusion-related, sediment hosted and VMS style Cu-Au
mineralisation (Targets T1, T2, T3 and T5; Figure 14). Several high priority target areas defined by stream
sediments, soil and rock chip sampling have not been closed off with anomalies on the edges of previous sampling
and large parts of the western and northern project area having had very limited previous sampling undertaken.
During the quarter a field visit was undertaken to the project area and several rock chip samples collected with
assays pending. An airborne EM survey to cover the Blue Devil Project area is due to commence in October
2024Sally Downs Project, WA
The Sally Downs Project is on Exploration Licence Application E80/6059 located 75km northeast of Halls Creek
in Western Australia. The project is within the Halls Creek Orogen and contains rock units of the Sally Downs
Supersuite, Tickalara Metamorphics and Dougalls Suite. The Savannah Nickel Mine is located only 10km from the
Sally Downs Project in a similar geological setting
Despite the projects prospective geology and close proximity to the Savannah Nickel Mine only limited previous
exploration has been undertaken in the project area with no previous drilling or electrical geophysics completed.
Companies including Pickands Mather, Australian Anglo American Ltd, Geochemex, Stockdale Prospecting,
Geopeko, Freeport and BHP have explored the area which work has included stream sediment sampling of portions
of the project area, limited rock chip sampling, airborne magnetics and airborne gravity surveys only. This previous
work has identified the Melon Patch Prospect, skarn-related copper mineralisation, with rock chip samples to 2.3%
Cu, the Wills Creek Prospect consisting of veins containing malachite, azurite and chalcopyrite assaying up to 1.5%
Cu and the Bullseye Gabbro Prospect which is a discrete gravity anomaly.
An airborne EM survey to cover the Sally Downs Project area is due to commence in October 2024.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
18
Figure 14: Previous rock chip samples coloured by Cu % with the five highest gold rock chip samples labelled.
Geology and structure as base. Blue Devil Project.
T1
T2
T4
T3
T5
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
19
Figure 15: Sally Downs Project over magnetics, located 10km south of the Savannah Nickel-Copper Mine.
Copper Springs Project, WA
The Copper Springs Project is on Exploration Licence Application E80/6036 located 100km northeast of Halls
Creek in Western Australia. The project is within the Halls Creek Orogen and contains rock units of the Sally Downs
Supersuite, Tickalara Metamorphics and Red Rock Formation. Three major faults, the Halls Creek Fault, Alice
Downs Fault and Mount Ranford Fault pass through the project area.
Mineralisation occurrences recorded at Copper Springs have been documented to contain massive boxwork gossans
with malachite encrustations and scattered remnant sulphides, or as malachite, azurite and goethite in vuggy quartz
veins or shear zones. Hematite pseudomorphs after pyrite scattered through the country rock in several places have
also been recorded.
Previous exploration is recorded across the Copper Springs area since the 1960’s and often the current project has
been part of a much larger project area with previous exploration particularly focussing on diamonds and nickel-
copper due to the proximity of the Savannah Nickel Mine (12km northwest) and Argyle Diamond Mine (75km
north). Stream sediment sampling has largely covered the project area and some soil and rock chip samples are
recorded along with two RC drill holes on the eastern project boundary drilled as a program testing the Azura
Copper Project to the east. Previous exploration work is still being assessed but sampling of the known copper
occurrences is yet to be located. Peak rock chip results located in the project area above 1% Cu in the NE project
area include 4% Cu & 0.26g/t Au (sample TK500223), 3.4% Cu & 14.5g/t Ag (Sample TK651412) and 2.6% Cu
(Sample TK500220) sampled by Thundelarra Exploration Ltd and 2.95% Cu (Sample 21BATSS5017) sampled by
Battery Metals Limited.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
20
During the quarter a field visit was undertaken to the project area. An airborne EM survey to cover the Copper
Springs Project area is due to commence in October 2024.
Springvale Project, WA
The Springvale Project is on Exploration Licence Application E80/6035 located 50km north of Halls Creek in
Western Australia. The project is within the Halls Creek Orogen and contains rock units of the Paperbark Supersuite
including norite, olivine gabbro, gabbro norite, leucogabbro, anorthosite and gabbro within a layered mafic-
ultramafic intrusion (Springvale Intrusion).
Mineralisation occurrences identified in the project area include chromium-platinum group elements, nickel-copper
and copper-nickel. Rock chips from chromite layers within the Springvale intrusion have returned up to 18.2% Cr
and 0.4g/t Pt.
Previous exploration is recorded across the area since the 1960’s and the area has been of particular interest for
nickel-copper and PGE exploration due to the proximity of the Panton Sill Pt-Pd-Au deposit (20km east) and
Savannah Nickel Mine (60km northeast). Companies including International Nickel, BHP, Freeport, Geopeko and
Panoramic have held the project area with previous exploration including airborne EM, airborne gravity, some
ground EM, soil sampling, rock chip sampling and some drilling. Freeport drilled 4 diamond drill holes to test
chromite-rich horizons, Geopeko drilled 2 diamond holes and BHP (in joint venture with Vageta and Australian
Gemstone Mining) drilled 2 RC drill holes. No significant mineralisation has been discovered to date, however
work has confirmed that the layered mafic-ultramafic Springvale Intrusion is well differentiated and has potential
to host magmatic nickel-copper and PGE mineralisation.
Initial exploration is likely to include reprocessing of available geophysics data and a ground gravity survey to
identify targets for drill testing.
Figure 16: Copper and copper-nickel occurrences and faults on airborne magnetics, Copper Springs Project.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
21
Figure 17: Copper-nickel and chrome-PGE occurrences and faults on airborne magnetics, Springvale Project.
Cyclops Project (Nickel – Copper – PGE)
The Cyclops Project is located in the world-class mineral province of the Pilbara Craton in Western Australia. The
project is located 75km southeast of Marble Bar on granted Exploration Licence E45/5967 covering an area of
38km2.
The Cyclops Project comes with three high-priority untested airborne EM targets located in an area where previous
rock chip sampling and drilling has confirmed the presence of ultramafic rock types. The Group considers the project
prospective for mafic-ultramafic hosted Ni-Cu-PGE mineralisation.
Four reverse circulation holes were drilled in the Cyclops Project area in 1972 by Carpentaria Exploration Company
Pty Ltd. These 4 drill holes targeted magnetic highs and induced polarisation targets and all intersected thick
sequences of logged ultramafic rock types. Hole PH5 returned an intersection of 111m @ 0.2% nickel from surface
to end of hole confirming the presence of ultramafic rocks. The maximum drill hole depth was 134m at a dip of -60
degrees.
An airborne EM (VTEM) survey was flown over a large portion of the current Cyclops Project area by Gondwana
Resources Limited in 2011. This survey identified 7 EM targets (conductors) considered by Gondwana of possible
interest. Some of the identified EM targets are associated with magnetic highs and some with magnetic lows.
Platypus Minerals Ltd collected a rock chip sample (P702234) of ultramafic material in 2015 approximately 150
metres from the Cyclops 2 Prospect which assayed 0.1% Ni and 0.2% Cr confirming the presence of ultramafic
rocks close to the high-priority EM targets. The Group surrendered Cyclops Project tenements in July 2024 and the
management decided to impair tenement expenditures during the year.
EM modelling has been completed by Southern Geoscience Consultants which has identified drill ready targets.
The 3 EM targets sit close to geological contacts between the Archean-aged Dalton Suite (intrusive mafic &
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
22
ultramafic units), Mount Roe Basalt (basalt and sedimentary units) and Hardey Formation (sedimentary & felsic
volcanic units) and are considered prospective locations for the occurrence of mafic-ultramafic hosted Ni-Cu-PGE
mineralisation.
Figure 18: Airborne EM targets, Cyclops Project.
Pilbara Project
TechGen has been building a presence in the East Pilbara Region since late 2022. The Group currently has four
Exploration Licence applications in the region, E45/6411, E45/6671, E45/6751 & E47/5022, which cover a
combined area of 198km2. All four Exploration Licence applications are subject to ballot in the Wardens Court (i.e.
they are competing applications with other parties). The East Pilbara Region is highly prospective for lithium and
gold in particular and the Company’s applications were chosen for their proximity to the Wodgina Lithium Mine,
Pilgangoora Lithium Mine and Tabba Tabba Lithium – Tantalum Project and relationship to the mineralising
granites of the Split Rock Supersuite.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
23
Figure 19: Pilbara lithium licence applications.
Myroodah Project WA (Uranium)
The Myroodah Project is on Exploration Licence Application E04/2895 located 115km southeast of Derby in
Western Australia. The project is located in the Canning Basin in the core of the Myroodah Syncline with uranium
anomalism in the Triassic-aged Erskine Sandstone at the contact with the Blina Shale.
Previous exploration since the 1970’s had largely focussed on the coal and diamond potential of the area but during
diamond exploration CRA Exploration became aware of the uranium potential and initially undertook scintillometer
traverses and drilled 2 drill holes. At a later date they drilled a further 10 drill holes completing a north-south traverse
and a smaller north-south traverse to the east over the uranium radiometric anomaly. Peak uranium value returned
was 1m @ 480 ppm U3O8 from 164m downhole (Hole M15). Other uranium explorers included Acclaim
Exploration, Kallenia Mines Pty Ltd and W. R. Richmond but no further drilling was completed. The uranium
radiometric anomaly is about 500m x 1500m. The prospect remains under drilled.
It appears that the geological setting is a classic roll front uranium model with the Erskine Sandstone providing the
aquifer and the Blina Shale providing the carbon to reduce the uranium in the oxidised aquifer. The impermeable
Blina Shale at the base of mineralisation makes for a favourable ISL environment.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
24
Initial exploration is likely to include traverses with a hand help scintillometer, reprocessing of radiometric data and
low cost aircore drilling of priority targets.
The Group looks forward to providing further updates on exploration activities at our new project areas as they get
underway.
Figure 20: Uranium radiometrics over Myroodah Project area.
Ashburton Basin Projects
The Ashburton Basin, and Edmund Basin to the south, is a northwest trending arcuate belt of Proterozoic-age
sedimentary and volcanic rocks which forms the northern part of the Capricorn Orogen. The Capricorn Orogen is a
major tectonic zone, 1,000km long and 500km wide located between the Archean Yilgarn and Pilbara Cratons of
Western Australia. The Ashburton Basin contains numerous gold and base metal prospects but few major mineral
deposits have yet been discovered. The Group considers its Ashburton Basin Projects to be prospective for both
gold and base metal mineralisation and that overall the Ashburton Basin is under-explored.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
25
Figure 21: Location of the Ashburton Basin Projects.
Station Creek Project (Copper - Silver - Gold)
The Station Creek Project is located 70km southwest of Paraburdoo in northern Western Australia. The project
comprises Exploration Licence E08/2946 covering an area of 54km2.
Exploration previously completed by the Group has included airborne VTEM surveying, soil sampling, rock chip
sampling a Gradient Array Induced Polarisation (GAIP) and Dipole-Dipole Induced Polarisation (DDIP) ground
geophysics survey. The IP surveys covered an area where exceptional high-grade copper and silver rock chip
samples have previously been reported by the Group. Two high priority IP targets were identified, referred to as the
TA1 and TA2 Prospects.
Prospect TA1 has a GAIP chargeability high extending over an east-west area of 600m x 100m and coincident DDIP
chargeability and resistivity highs. The IP highs correspond to previously reported exceptional high-grade copper
and silver rock chip samples taken along a 220m long area of a NE trending fault zone. The copper anomalous rock
chip zone remains open to both the NE and the SW. Assay results, previously reported, include 54.8%, 47.3%,
26.3%, 18.35% and 8.14% Cu along with high-grade silver to 249g/t as well as anomalous gold, antimony, and
arsenic. Prospect TA2 corresponds to a GAIP chargeability high which coincidentally is at the same location as a
7.32% Cu rock chip sample and close to a 1.27g/t Au rock chip sample taken by the Group in 2020. DDIP surveying
was not undertaken at the TA2 Prospect area.
A Reverse Circulation (RC) drilling program of 12 holes for 1,636 metres was completed at Station Creek in
September 2022 to test geochemical, structural and IP geophysics targets at the TA1, TA2, TA3 and TA4 prospect
areas. Assay results returned intervals of +1% copper at both the TA2 and TA4 Prospects. Two of the drill holes,
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
26
SCRC007 & SCRC012, both returned assays of greater than 1% Cu from shallow depths. Best results include 1m
@ 2.06% Cu from 9m (SCRC007) and 7m @ 1.23% Cu from 20m (SCRC012). Anomalous copper assays in drill
holes SCRC002, SCRC007, SCRC011 & SCRC012 correlate well with intervals of copper carbonate (malachite)
and chalcopyrite logged on site during drilling.
During the year geological mapping combined with rock chip sampling tested structural and geochemistry targets
at the Station Creek Project. A total of 4 rock chip samples were collected with 2 samples (SCR57 & SCR58) from
the vicinity of target PGN9 returning high grade copper results of 27.7% and 6.53% (ASX Announcement – 4th
September 2023). Sample SCR58 also contained high grade gold of 6.64g/t and high-grade silver of 145g/t. Review
of data and planning of future work is planned.
Exploration Licence E08/2946 (Station Creek) came to the end of it’s 5 year term in December 2023 and an
application for a 5 year extension of term was approved.
Figure 22: Prospect locations, Station Creek Project.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
27
Figure 23: Further structural and geochemistry targets (PGN5 -13), Station Creek Project.
Mt Boggola Project (Copper - Gold - Silver)
The Mt Boggola Project is located 60km south of Paraburdoo in Western Australia. The project comprises four
Exploration Licences, E08/2996, E08/3269, E08/3458 and E08/3473, covering a combined area of 352km2.
Previous airborne VTEM by the Group has identified three discrete EM conductors in the northwest project area
which lie adjacent to a magnetically distinct sequence of submarine volcanic rocks. During the year a Reverse
Circulation (RC) drilling program of 3 holes for 690 metres was completed to test the three strong and discrete EM
anomalies. No significant results for base or precious metals were returned.
Also, at Mount Boggola, an airborne EM (VTEM – Max) survey was flown over a portion of the southern Mount
Boggola Project. The survey completed was approximately 650 line-km and covered extensions of the highly
magnetic “Boggola North Beds” and the 20km strike extent of the basin margin between the Ashburton Basin and
Edmund Basin. The survey identified several moderate-strong and extensive-discrete mid-channel and late-channel
anomalies. Some of the VTEM anomalies have favourable coincident local magnetic anomalism associated with
them.
The assay results of rock chip samples collected at Mt Boggola previously as part of the Group’s base metal and
gold exploration program returned some highly anomalous REE results for both Cerium (Ce) and Lanthanum (La).
Seventeen sample pulps were selected and sent for specific REE testing. The results are considered highly
encouraging given REE style geology was not being targeted during the initial sample collection. Assay results for
Total Rare Earth Oxide (TREO) for these samples range from 48 ppm to 1,885 ppm. Three samples, MB10, MB24
& MB30, have returned TREO results of over 1,000 ppm.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
28
Radiometric open file data for thorium, uranium & potassium was processed by Southern Geoscience Consultants
across the project area. This work highlighted a robust thorium anomaly in the southwestern project area. A
geological mapping and sampling trip to sample the radiometric (thorium & uranium) and airborne EM targets at
the Mt Boggola Project was completed in July 2023. A peak result of 1,098ppm TREO was returned from the
sampling.
During the reporting period radiometric (Thorium & Uranium) and airborne EM target regions were visited and soil
samples (7 samples) and rock chip samples (16 samples) were collected. These samples were assayed for a multi-
element suite of elements that included the suite of REE’s. Four rock chip samples of ironstone/banded iron
formation returned assays of >50% Fe with a peak value of 57.3% Fe (Samples MBR075 & MBR086). REE assay
results ranged between 150ppm to 204ppm TREO for soil samples and ranged between 58ppm to 1,098ppm TREO
for rock chip samples (Peak sample of 1,098ppm TREO from sample MBR080; ASX Announcement – 4th
September 2023). Review of data and planning of future work is planned.
Figure 24: Mt Boggola Project showing previous drilling & rock chip coverage on airborne magnetics.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
29
Figure 25: REE rock chip locations & Thorium Radiometric anomalies on satellite imagery.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
30
Earaheedy Project
The Earaheedy Project consists of five Exploration Licences (E38/3706 - E38/3710) covering a combined area of
911km2. The project is located 850km northeast of Perth in the Proterozoic-aged Earaheedy Basin which covers an
area of approximately 400km x 100km.
The Earaheedy Basin contains the Chinook Zn-Pb-Ag discovery made in April 2021 by Rumble Resources Limited
and Zenith Minerals Limited. A maiden mineral resource estimate was released via ASX announcement on 19th
April 2023- Rumble Resources Limited (ASX: RTR).
The Earaheedy Project contains large areas mapped by the Geological Survey of Western Australia as sedimetary
rocks of the Frere Formation and also the contact between the Frere Formation and the underlying Yelma Formation.
Base metal mineralisation at the Chinook Zn-Pb-Ag discovery is hosted in the Frere Formation and Yelma
Formation (ASX announcement 21 December 2021- Rumble Resources Limited).
Work at the project has consisted of the compilation and review of historic exploration data.
During the year, the Group surrendered five exploration licences (E38/3706 - E38/3710) relating to the Earaheedy
project. The Group impaired the full amount expensed on these licenses to date in the year.
Figure 26: Location of the Earaheedy Project in the Earaheedy Basin of Western
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
31
Competent Person Statement
The information in this announcement that relates to Exploration Results is based on and fairly represents
information compiled and reviewed by Andrew Jones, a Competent Person who is a member of the Australasian
Institute of Mining and Metallurgy (AusIMM). Andrew Jones is employed as a Director of TechGen Metals
Limited. Andrew Jones has sufficient experience that is relevant to the style of mineralisation and type of deposits
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012
edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Andrew
Jones consents to the inclusion in this announcement of the matters based on his work in the form and context in
which it appears.
Previously Reported Information
This Review of Operations contains information extracted from ASX market announcements reported in accordance
with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves” (2012 JORC Code). Further details (including 2012 JORC Code reporting tables where applicable) of
exploration results referred to in this Review of Operations can be found in the following announcements lodged on
the ASX:
Exploration Gold Copper update
17 June 2024
New High Grade Copper & Gold Project – WA
14 May 2024
Key Copper & Uranium Assets
6 May 2024
Ida Valley Lithium Drilling Completed
23 April 2024
Ida Valley Lithium Drilling has Commenced
11 April 2024
Ida Valley Update
18 March 2024
Exploration Update February
22 February 2024
Ida Valley Priority One Lithium Targets Expanded
6 February 2024
December Exploration Update
22 December 2023
Ida Valley Priority Lithium Geochemical Targets
11 December 2023
Ida Valley Lithium Progress Update
4 December 2023
Pilbara Ni-Cu-PGE Acquisition
21 November 2023
Lithium & Gold Presentation 14 November 2023
Exploration Update 10 November 2023
Ida Vale Pegmatite Sampling
21 November 2023
John Bull Gold Drilling
7 September 2023
Exploration Update
5 September 2023
Mt Boggola REE targeting advances
8 August 2023
High Quality targets at Narryer
31 July 2023
Western Yilgarn Critical Minerals Option
27 July 2023
John Bull Gold Stage 2 RC Completed
6 July 2023
Operating and Financial Review
The Group incurred a loss of $1,645,178 for the year (2023: $2,100,778), relating mainly to administration costs,
the impairment of exploration and evaluation assets totalling $690,476, as well as the Group’s acquisition of various
projects which was spent on exploration and evaluation expenditure. The principal activity of the Group during the
financial year was the exploration and evaluation of mineral resources. There was no significant change in the
Group’s state of affairs, other than those listed below.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
32
Group Specific Risks
(a) Reliance on Key Personnel
The Group’s operational success will depend substantially on the continuing efforts of senior executives. The
loss of services of one or more senior executives may have an adverse effect on the Group’s operations.
Furthermore, if the Group is unable to attract, train and retain key individuals and other highly skilled
employees and consultants, its business may be adversely affected.
(b) Additional Requirement for Capital
The Group’s capital requirements depend on numerous factors. Depending on the Group’s ability to maintain
its funds and/or generate income from its operations, the Group may require further financing in the future.
Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve
restrictions on financing and operating activities. If the Group is unable to obtain additional financing as
needed, it may be required to reduce the scope of its operations and scale back exploration expenditure as the
case may be.
(c) Exploration Risk
Potential investors should understand that mineral exploration and development are high-risk undertakings.
There can be no assurance that exploration of the Group’s projects, or any other tenements that may be acquired
in the future, will result in the discovery of an economic ore deposit. Even if an apparently viable deposit is
identified, there is no guarantee that it can be economically exploited.
The future exploration activities of the Group may be affected by a range of factors including geological
conditions, limitations on activities due to seasonal weather patterns, unanticipated operational and technical
difficulties, industrial and environmental accidents, native title process, changing government regulations and
many other factors beyond the control of the Group.
The success of the Group will also depend upon the Group having access to sufficient development capital,
being able to maintain title to its projects and obtaining all required approvals for its activities. In the event
that exploration programmes prove to be unsuccessful this could lead to a diminution in the value of the
Group’s projects, a reduction in the cash reserves of the Group and possible relinquishment of the projects.
The exploration costs of the Group are based on certain assumptions with respect to the method and timing of
exploration. By their nature, these estimates and assumptions are subject to significant uncertainties and,
accordingly, the actual costs may materially differ from these estimates and assumptions. Accordingly, no
assurance can be given that the cost estimates and the underlying assumptions will be realised in practice,
which may materially and adversely affect the Group’s viability.
(d) Tenure, Access and Grant of Applications
Mining and exploration tenements are subject to periodic renewal. There is no guarantee that current or future
tenements and/or applications for tenements will be approved.
As at the date of this report, 10 of the Group’s 22 tenements are still in an application phase. While the Group
anticipates that the tenements in application will be granted, there is no guarantee that the pending tenement
applications, or any future tenement applications, will be approved.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
33
Group Specific Risks (continued)
Tenements are subject to the applicable mining acts and regulations in Western Australia. The renewal of the
term of a granted tenement is also subject to the discretion of the relevant Minister. Renewal conditions may
include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements
comprising the Group’s Projects. The imposition of new conditions or the inability to meet those conditions
may adversely affect the operations, financial position and/or performance of the Group. The Group considers
the likelihood of tenure forfeiture to be low given the laws and regulations governing exploration in Western
Australia and New South Wales and the ongoing expenditure budgeted for by the Group. However, the
consequence of forfeiture or involuntary surrender of a granted tenements for reasons beyond the control of
the Group could be significant.
(e) Operating and Development Risks
The Group’s ability to achieve production, development, operating cost and capital expenditure estimates on
a timely basis cannot be assured.
The business of mining involves many risks and may be impacted by factors including ore tonnes, grade and
metallurgical recovery, input prices (some of which are unpredictable and outside the control of the Group),
overall availability of free cash to fund continuing development activities, labour force disruptions, cost
overruns, changes in the regulatory environment and other unforeseen contingencies.
Other risks also exist such as environmental hazards (including discharge of pollutants or hazardous
chemicals), industrial accidents, occupational and health hazards, cave-ins and rock bursts. Such occurrences
could result in damage to, or destruction of, production facilities, personal injury or death, environmental
damage, delays in mining, increased production costs and other monetary losses and possible legal liability to
the owner or operator of the mine. The Group may become subject to liability for pollution or other hazards
against which it has not insured or cannot insure, including those in respect of past mining activities for which
it was not responsible.
In addition, the Group’s profitability could be adversely affected if for any reason its production and processing
of or mine development is unexpectedly interrupted or slowed. Examples of events which could have such an
impact include unscheduled plant shutdowns or other processing problems, mechanical failures, the
unavailability of materials and equipment, pit slope failures, unusual or unexpected rock formations, poor or
unexpected geological or metallurgical conditions, poor or inadequate ventilation, failure of mine
communications systems, poor water condition, interruptions to gas and electricity supplies, human error and
adverse weather conditions.
(f) Mine Development Risk
Possible future development of mining operations of the Group’s projects is dependent on a number of factors
including, but not limited to, the acquisition and/or delineation of economically recoverable mineralisation,
favourable geological conditions, receiving the necessary approvals from all relevant authorities and parties,
seasonal weather patterns, unanticipated technical and operational difficulties encountered in extraction and
production activities, mechanical failure of operating plant and equipment, shortages or increases in the price
of consumables, spare parts and plant and equipment, cost overruns, access to the required level of funding
and contracting risk from third parties providing essential services.
If the Group commences production of any of its projects, its operations may be disrupted by a variety of risks
and hazards which are beyond the control of the Group.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
34
Group Specific Risks (continued)
(g) Tenement Access (Native Title and Aboriginal Heritage)
The effect of present laws in respect of native title that apply in Australia is that mining tenements (including
applications for mining tenements) may be affected by native tile claims or procedures, which may prevent or
delay the granting of mining tenements, or affect the ability of the Group to explore and develop the mining
tenements.
The Group’s tenements may be subject to native title claims. If so, before carrying out exploration activity on
these tenements, the Group must notify the claimant group of the details of such exploration and give the
claimant group the right to carry out a heritage survey over the land to determine if any sites or objects of
significance exist. The Group must meet all of the claimant group’s costs in carrying out such survey. The
Group may also be required to follow the standard procedures set out in any applicable Indigenous Land Use
Agreements to ensure site or objects of significance to aboriginal people are identified before carrying out any
ground disturbing works.
The Group might experience delays and cost overruns in the event it is unable to access the land required for
its operations for these reasons.
(h) Environmental
The operations and proposed activities of the Group are subject to State and Federal laws and regulations
concerning the environment. As with most exploration projects and mining operations, the Group’s activities
are expected to have an impact on the environment, particularly if advanced exploration or mine development
proceeds. It is the Group’s intention to conduct its activities to the required standard of environmental
obligation, including compliance with all environmental laws.
Mining operations have inherent risks and liabilities associated with safety and damage to the environment and
the disposal of waste products occurring as a result of mineral exploration and production. The occurrence of
any such safety or environmental incident could delay production or increase production costs. Events, such
as unpredictable rainfall, flood or bushfires may impact on the Group’s ongoing compliance with
environmental legislation, regulations and licences. Significant liabilities could be imposed on the Group for
damages, clean-up costs or penalties in the event of certain discharges into the environment, environmental
damage caused by previous operations or non-compliance with environmental laws or regulations.
The disposal of mining and process waste and mine water discharge are under constant legislative scrutiny and
regulation. There is a risk that environmental laws and regulations become even more onerous making the
Group’s operations more expensive.
Approvals are required for land clearing and for ground disturbing activities. Delays in obtaining such
approvals can result in the delay to anticipated exploration programmes or mining activities.
Further, under the Mining Rehabilitation Fund Act 2012 (WA) (Mining Rehabilitation Fund Act), the Group
will be required to provide assessment information to the Department of Mines, Industry Regulation and Safety
in respect of a mining rehabilitation levy payable for mining tenements granted under the Mining Act 1978
(WA) (Mining Act). The Group will be required to contribute annually to the mining rehabilitation fund
established under the Mining Rehabilitation Fund Act if its rehabilitation liability is above $50,000. The
Group’s rehabilitation liability estimate is currently less than $50,000. However, there is a risk that as the
Group increases its activities in the future, that it may exceed this $50,000 threshold and it will therefore need
to contribute to the Mining Rehabilitation Fund.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
35
Group Specific Risks (continued)
(i) Resources and Reserves
The Group has not defined in Reserves or Resources under the JORC Code. Even if the Group is able to do so,
Reserve and Resource estimates are expressions of judgement based on knowledge, experience and industry
practice. Estimates which were valid when initially calculated may alter significantly when new information
or techniques become available. In addition, by their very nature resource and reserve estimates are imprecise
and depend to some extent on interpretations which may prove to be inaccurate. Even if a resource is identified,
no assurance can be provided that this can be economically extracted.
(j) Failure to satisfy Expenditure Commitments
The Group’s project tenements are governed by the Western Australian and New South Wales mining acts and
regulations. Each tenement is for a specific term and carries with it annual expenditure and reporting
commitments, as well as other conditions requiring compliance. Consequently, the Group could lose title to or
its interest in the tenements if conditions are not met or if insufficient funds are available to meet expenditure
commitments.
(k) Force Majeure
The Group’s projects now or in the future may be adversely affected by risks outside the control of the Group
including labour unrest, civil disorder, war, subversive activities or sabotage, fires, floods, explosions or other
catastrophes, epidemics or quarantine restrictions.
(l) Litigation Risks
The Group is exposed to possible litigation risks including native title claims, tenure disputes, environmental
claims, occupational health and safety claims and employee claims. Further, the Group may be involved in
disputes with other parties in the future which may result in litigation. Any such claim or dispute if proven,
may impact adversely on the Group’s operations, financial performance and financial position. The Group is
not currently engaged in any litigation.
(m) Insurance
The Group has insured its operations in accordance with industry practice. However, in certain circumstances
the Group’s insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of
an event that is not covered or fully covered by insurance could have a material adverse effect on the business,
financial condition and results of the Group.
(n) Regulatory Risks
The Group’s exploration and development activities are subject to extensive laws and regulations relating to
numerous matters including resource licence consent, conditions including environmental compliance and
rehabilitation, taxation, employee relations, health and worker safety, waste disposal, protection of the
environment, native title and heritage matters, protection of endangered and protected species and other
matters. The Group requires permits from regulatory authorities to authorise the Group’s operations. These
permits relate to exploration, development, production and rehabilitation activities.
Obtaining necessary permits can be a time consuming process and there is a risk that the Group will not obtain
these permits on acceptable terms, in a timely manner or at all. The costs and delays associated with obtaining
necessary permits and complying with these permits and applicable laws and regulations could materially delay
or restrict the Group from proceeding with the development of a project or the operation or development of a
mine. Any failure to comply with applicable laws and regulations or permits, even if inadvertent, could result
in material fines, penalties or other liabilities. In extreme cases, failure could result in suspension of the Group’s
activities or forfeiture of one or more of the tenements.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
36
Group Specific Risks (continued)
(o) Potential Acquisitions
As part of its business strategy, the Group may make acquisitions of, or significant investments in,
complementary companies or prospects. Any such, transactions will be accompanied by risks commonly
encountered in making such acquisitions.
(p) Reports regarding the Group and its Projects
If securities or industry analysts do not publish or cease publishing research or reports about the Group, its
business or its market, or if they change their recommendations regarding the Company’s Securities adversely,
the price of its Securities and trading volumes could be adversely affected.
The market for the Company’s Securities trading on ASX may be influenced by any research or reports
compiled by securities or industry analysts. If any of the analysts who may cover the Group and its products
change previously disclosed recommendations on the Group or for that matter its competitors, the price of its
Securities may be adversely affected.
(q) The Group does not expect to declare any dividends in foreseeable future
The Group does not anticipate declaring or paying any dividends to shareholders in the foreseeable future.
Consequently, investors may need to rely on sales of their securities to realise any future gains on their
investment.
(r) Tenements held on Trust
Pursuant to section 64 of the Mining Act 1978 (WA), during the first year of the term for which the tenements
are granted, a legal or equitable interest in or affecting the tenements shall not be transferred or otherwise dealt
with, whether directly or indirectly, unless prior written consent to the dealing or other transaction in or
affecting the interest is given by the Minister responsible for administration of the Act, or an office of the
Department of Mines, Industry Regulation and Safety acting with the authority of the Minister.
Some of the Group’s projects are applications and cannot be transferred in their first year of the term of grant
unless consent of the Minister is obtained. Under the Acquisition Agreements, if any of the rights of the
beneficial owners of the Projects are for any reason whatsoever not capable of being legally transferred to,
conferred upon or exercised by the Company in the Group’s name, the Vendors transfer such rights to be
exercised by the Company in the name of the Vendors as and with effect from settlement of the Acquisition
Agreements and the Vendors shall hold such rights exclusively on trust for the benefit of the Group.
(s) Aboriginal Heritage Sites
Holders of mining tenements in Western Australia and New South Wales are subject to the Aboriginal Heritage
Act 1972 (WA) and The Heritage Act 1977 (NSW) which protects sites that may be of spiritual, cultural or
heritage significance to Aboriginal people (Aboriginal Site). The Minister’s consent is required where any use
of land is likely to result in the excavation, alteration or damage to an Aboriginal site or any objects on or under
that site. The existence of Aboriginal heritage sites within the Group’s projects may lead to restrictions on the
areas that the Group will be able to explore and mine.
Significant Changes In the State of Affairs
Corporate
On 27 of July 2023, the Group announced the signing of an Option & Earn-in Agreement with ASX-listed Narryer
Metals Limited (ASX: NYM) for Exploration Licence E20/1052. During the year, the Group decided not to pursue
the Earn-in Agreement.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
37
Significant Changes In the State of Affairs (continued)
Corporate (continued)
On 9 August 2023, the Group voluntarily deregistered its 100% owned subsidiary, TechGen BRV Pty Ltd.
On 16 August 2023, the Group issued 1,000,000 unlisted lead manager options, exercisable at $0.20, expiring on
16 August 2026, to Viriathus Capital Pty Ltd, pursuant to lead manager services provided in respect of the Placement
as announcement on 9 June 2023.
On 16 August 2023, the Group issued 4,285,716 free-attaching placement unlisted options in connection with the
Placement. The free-attaching placement options was issued on a 1 for 3 basis, exercisable at $0.20, expiring on 16
August 2026.
On 13 September 2023, the Group’s 2,000,000 unlisted options exercisable at $0.30 expired unexercised.
On 28 November 2023, the Group undertook a $2,798,000 placement (before costs) which closed oversubscribed.
The placement was completed in two Tranches via the issue of 18,949,807 Tranche 1 shares and 31,014,480 Tranche
2 shares. The issue of Tranche 2 shares was contingent upon prior shareholder approval which was on 16 January
2024.
On 7 December 2023, the Group surrendered two exploration licences (E09/2699 and E10/1022) relating to the
Narryer project.
On 8 January 2024, the Group surrendered five exploration licences (E38/3706 to E38/3710) relating to the
Earaheedy Project.
On 5 February 2024, the Group issued a total of 12,491,072 free-attaching listed options (ASX: TG1O) exercisable
at $0.12, expiring on 5 February 2026 and pursuant to the placement as announced on 21 November 2023.
On 15 February 2024, the Group issued 1,200,000 Class D and Class E performance rights to the directors following
shareholder approval obtained at a General Meeting held on 16 January 2024. The expiry date for Class D and Class
E performance rights is 15 February 2028.
On 7 April 2024, a total of 13,333,334 unlisted options exercisable at $0.30 expired unexercised.
On 24 April 2024, the Group issued 1,000,000 fully paid ordinary shares at deemed issue price of $0.06 per share
and 250,000 listed options (ASX: TG1O) exercisable at $0.12, expiring on 5 February 2026 in lieu of investor
relations services rendered.
On 6 May 2024, the Group announced that it had lodged Exploration Licence applications over four new projects
in Western Australia prominent for Copper-Nickel-Uranium (E80/6036 Copper Springs Project; E80/6035
Springvale Project; E39/2472 Ponton Project; E04/2895 Myroodah Project). The Sally Downs Exploration Licence
Application (E80/6059) was applied for on 25 June 2024.
On 14 May 2024, the Group announced that it had expanded its exploration portfolio with the inclusion of a highly
prospective Copper and Gold project in Western Australia (E80/6047 Blue Devil Project).
There were no other significant changes in the state of affairs of the Group that occurred during the year not
otherwise disclosed in this report or in the financial report.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
38
Events Subsequent to Balance Date
On 2 July 2024, the Group announced that it had conducted its annual review of Directors’ remuneration and has
agreed to a revised remuneration structures effective 1 July 2024.
On 31 July 2024, the Group surrendered three exploration licenses (E45/5294, E45/5439 and E45/5967) relating to
the Harbutt Range and Cyclops Projects and extended Ida Valley license (E29/1053).
No other matters or circumstances have arisen since the end of the financial year which significantly affected or
may significantly affect the operations of the Group, the result of those operations, or the state of affairs of the
Group in future financial periods.
Future Developments, Prospects and Business Strategies
Further information, other than as disclosed in this report, about likely developments in the operations of the Group
and the expected results of those operations in future periods has not been included in this report as disclosure of
this information would be likely to result in unreasonable prejudice to the Group.
Environmental Issues
The Group’s operations are subject to environmental regulations in relation to its exploration activities. The Group
is compliant with all aspects of these requirements. The Directors are not aware of any environmental law that is
not being complied with.
Dividends
No dividends were paid during the year (2023: Nil) and no recommendation is made as to the dividends.
Shares under Option
Shares issued on the exercise of options
There were no ordinary shares of the Company issued during the year ended 30 June 2024 and up to date of this
report on the exercise of options granted. At the date of this report, the unissued ordinary shares of TechGen Metals
Ltd under option are as follows:
Grant date
Number under option
Expiry date
Exercise Price
16 Nov 2021
16 Aug 2023
5 Feb 2024
24 Apr 2024
4,000,000
5,285,716
12,491,072
250,000
16 Nov 2024
16 Aug 2026
5 Feb 2026
5 Feb 2026
$0.30
$0.20
$0.12
$0.12
No person entitled to exercise the options had or has any right by virtue of the option to participate in any share
issues of the Company.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
39
Shares under Option (continued)
On 15 February 2024 and following shareholder approval obtained at the General Meeting held on 16 January 2024,
the Company issued a total of 1,200,000 Performance Rights to Directors of the Company. The Performance Rights
are subject to the terms and conditions below, each (1) Performance Right is convertible into one (1) fully paid
ordinary share in the capital of the Company, upon the following milestones being achieved (Vesting Conditions):
Performance Rights
Vesting Condition
Expiry Date
600,000 Class D
Upon TG1 achieving a VWAP of at least
$0.15 per Share over a period of 20
consecutive trading days
15 February 2028
600,000 Class E
Upon TG1 achieving a VWAP of at least
$0.20 per Share over a period of 20
consecutive trading days
15 February 2028
For further details of options and performance rights issued to directors and executives as remuneration, refer to
the Remuneration Report.
Information on Directors
The following information on directors is presented as at date of signing this report.
Name:
Ms Maja McGuire
Title:
Non-Executive Chair
Appointment Date:
24 November 2020
Qualifications:
B.Com, LLB
Experience and expertise:
Ms McGuire is an experienced corporate executive and company director, bringing
over 15 years’ experience at board and senior management level. This includes
working with listed companies as a non-executive chair/director, general counsel and
in top tier legal private practice. Maja has led strategy and corporate development for
both small start-ups focused on growth and funding, and for larger mature
organisations focused on corporate transformation and investing in next generation
assets and technology.
Ms McGuire commenced her career at Clayton Utz (Perth), gaining experience in a
broad range of corporate, commercial and banking and finance matters. Transitioning
to the Canadian Bankers Association (Toronto), she advocated on behalf of Canadian
banks on issues pertaining to developments in domestic and international banking
regulation related primarily to capital adequacy and funding. Subsequently, Maja was
General Counsel and Company Secretary of US based Anteris Technologies Ltd
(ASX: AVR) and Alexium International Group Ltd (ASX: AJC), building strong
competence in strategy and corporate management, with particular expertise in legal
and governance.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
40
Information on Directors (continued)
Ms McGuire continues her career as a corporate advisor and board director. She is
also currently the Non-Executive Director of Kuniko Ltd (ASX: KNI), Indiana
Resources Limited (ASX: IDA) and LTR Pharma Ltd (ASX: LTP). Maja is active in
the mining sector and its role in building resilient and sustainable supply chains,
transitioning to net zero emissions and creating economic growth. She holds BComm
and LLB qualifications from The University of Western Australia.
Ms McGuire is considered an independent director.
Other current directorships:
Non-Executive Director of Kuniko Limited (ASX: KNI)
Non-Executive Director of Indiana Resources (ASX: IDA) appointed 18-Oct-2023
Non-Executive Director of LTR Pharma Ltd (ASX: LTP) appointed 07-Dec-2023
Former directorships (last 3
years):
Non-Executive Director of OliveX Holdings Limited (NSX: OLX) resigned 31-Oct-
2023
Special responsibilities:
Chair
Interests in shares:
54,054
Interests in options & other
unlisted securities:
1,000,000 Performance Rights, expiring 23 December 2026
400,000 Performance Rights, expiring 15 February 2028
Contractual rights to shares: None
Name:
Mr Ashley Hood
Title:
Managing Director
Appointment Date:
10 February 2020
Experience and expertise:
Mr Hood has more than eighteen (18) years’ experience in the mining industry,
working in mine and exploration operations for junior and major mining companies
based in Australia, South Africa and New Zealand. Ashley has broad senior
management experience and has worked in and managed field exploration and
geological teams on some of Australia’s major JORC resources. He has extensive
ASX experience and held a number of Executive and non-executive positions.
He specialises in project and people management, native title negotiations, project
due diligence, acquisitions and has a portfolio of family held mineral and precious
metals projects which are flagship assets in a number of ASX listed companies today.
Mr Hood is not considered an independent director.
Other current directorships:
None
Former directorships (last 3
years):
Non-Executive Director of Pivotal Metals Limited (ASX: PVT) resigned 19-Sept-
2023
Special responsibilities:
-
Interests in shares:
3,808,108
Interests in options & other
unlisted securities:
1,250,000 Performance Rights, expiring 23 December 2026
400,000 Performance Rights, expiring 15 February 2028
Contractual rights to shares: 2,350,000 Performance Rights, expiring 24 March 2026
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
41
Information on Directors (continued)
Name:
Mr Andrew Jones
Title:
Executive Technical Director
Appointment Date:
10 February 2020
Qualifications:
B.App.Sci (RMIT) and MSc (UT)
Experience and expertise:
Mr Jones was appointed as a Director the Company on the 10 February 2020. Mr
Jones has more than 20 years’ experience as a geologist in the resources sector and
has worked throughout Australia, in West Africa, Southern Africa and South
America. Mr Jones has geology qualifications from RMIT University and the
University of Tasmania. Mr Jones has experience in a range of mineral commodities
and has been involved in the discovery of new mineral deposits, extensions to known
mineral resources at operating mine sites and has been involved in several feasibility
studies for commodities including gold, copper and nickel-cobalt.
Mr Jones is not considered an independent director.
Other current directorships:
None
Former directorships:
-
Special responsibilities:
-
Interests in shares:
3,129,054
Interests in options & other
unlisted securities:
1,250,000 Performance Rights, expiring 23 December 2026
400,000 Performance Rights, expiring 15 February 2028
Contractual rights to shares: 2,350,000 Performance Rights, expiring 24 March 2026
Information on Company Secretary
Ms Aida Tabakovic, BBus, GradDipBus(Law)
Ms Tabakovic was appointed as the Company Secretary of the Company on 1 December 2022. Ms Tabakovic has
over 15 years’ experience in the accounting profession. Ms Tabakovic holds a Double Major Degree in Accounting
and Finance and a Postgraduate Degree in Business Law. She provides services to a number of ASX listed and
unlisted companies, specialising in financial accounting and corporate compliance. Ms Tabakovic has been involved
in listing a number of junior exploration companies on the ASX and is currently Company Secretary for numerous
ASX listed companies.
Meetings of directors
The number of formal meetings of the Company’s board of directors held during the year ended 30 June 2024, and
the number of meetings attended by each director were:
Directors’ Meetings
Audit & Risk Committee
Meetings
Nomination and
Remuneration Committee
Meetings
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Ms Maja McGuire
5
5
1
1
1
1
Mr Ashley Hood
5
5
1
1
1
1
Mr Andrew Jones
5
5
1
1
1
1
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
42
Auditor’s Indemnification and Insurance
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for the
auditor of the Group, or any related entity.
REMUNERATION REPORT (AUDITED)
This report provides information regarding the remuneration disclosures required under S300A of the Corporations
Act 2001 and has been audited.
a)
Principles used to determine nature and amount of remuneration
The Board of TechGen Metals Limited believes the remuneration policy to be appropriate and effective in
its ability to attract and retain the best key management personnel to run and manage the Group, as well as
create goal congruence between directors, executives, and shareholders. The Board reviews key management
personnel packages annually by reference to the Group’s performance, executive performance, and
comparable information from industry sectors. The remuneration policy of the Group has been designed to
align key management personnel objectives with shareholder and business objectives by providing a fixed
remuneration component and offering long-term incentives.
Compensation arrangements are determined after considering competitive rates in the marketplace for similar
sized exploration companies with similar risk profiles and comprise:
Fixed Compensation
Key management personnel receive a fixed amount of base compensation which is based on factors such as
length of service and experience. Any applicable statutory superannuation amounts will be paid based on this
fixed compensation.
Service Agreements
Remuneration and other terms of employment for key management personnel are formalised in service
agreements. Details of these agreements are as follows:
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
43
Remuneration report audited (continued)
Name:
Ashley Hood
Title:
Managing Director
Agreement commencement:
10 February 2020
Term of agreement:
Until validly terminated by either party
Details:
Base salary of A$180,000 and 2,500,000 30c unlisted options under
the Group’s incentive plan. 3-month termination notice by either
party.
Subsequent to 2024 financial year end, on 2 July 2024 the Group
announced that it has conducted its annual review of Directors’
remuneration. Effective from 1 July 2024, the Group has agreed to
a revised remuneration structure with Managing Director. In
accordance with ASX Listing Rule 3.16.4, the remuneration under
the Executive Services agreement increased from A$180,000 per
annum to A$205,000 per annum on a full-time basis (plus any
minimum statutory superannuation contribution required under
superannuation law).
Name:
Andrew Jones
Title:
Technical Director
Agreement commencement:
10 February 2020
Term of agreement:
Until validly terminated by either party
Details:
Base salary of A$120,000 (based on a part-time commitment
equating to approximately 7 days a fortnight) and 2,500,000 30c
unlisted options under the Group’s incentive plan. 3-month
termination notice by either party.
Subsequent to 2024 financial year end, on 2 July 2024 the Group
announced that it has conducted its annual review of Directors’
remuneration. Effective from 1 July 2024, the Group has agreed to
a revised remuneration structure with Technical Director. In
accordance with ASX Listing Rule 3.16.4, the remuneration under
the Executive Services agreement increased from A$120,000 per
annum, based on a 0.7 FTE, to A$185,000 per annum on a 0.9 FTE
(plus any minimum statutory superannuation contribution required
under superannuation law).
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
44
Remuneration report audited (continued)
Performance Related Compensation (short term)
At this point in time, the Group does not offer short-term incentives to senior management.
Long Term Incentives
The current Employee Incentive Plan (‘Plan’) was approved at a shareholder annual general meeting on 24
November 2023 replacing the previously approved Plan in November 2020. Incentives are intended to align
the interests of the Group with those of the Shareholders. Upon listing on the ASX , all Directors received
2,500,000 options pursuant to the November 2020 Plan as reasonable remuneration for future services and
to ensure that interests of all Directors are aligned with those of shareholders. No securities have been issued
under Company’s current November 2023 Plan.
Non-Executive Directors
The Group’s policy is to remunerate non-executive directors at market rates for time, commitment, and
responsibilities. The Board determines the level of individual fees payable to non-executive directors which
is then reviewed annually, based on market practice, duties, and accountability. Independent external advice
is sought when required. The maximum aggregate amount of fees that can be paid to non-executive directors
is subject to approval by shareholders at the Annual General Meeting. The total fees for all non-executive
directors, as approved at the 2020 Annual General Meeting, must not exceed $350,000 per annum.
Remuneration and other terms of engagement for Non-Executive Directors are formalised in Letters of
Appointment. Details of these are as follows:
Name:
Maja McGuire
Title:
Non-Executive Chair
Agreement commencement:
10 February 2021
Term of agreement:
Cease at the end of any meeting at which Ms McGuire is not re-
elected as a director by the shareholders of the Group or otherwise
ceases in accordance with the Constitution or where Ms McGuire
resigns as a director for any reason including disqualification or
prohibition by law from acting as a director.
Details:
A$55,000 and 2,500,000 30c unlisted options under the Group’s
incentive plan (unlisted options expired unexercised on 7 April
2024).
Subsequent to 2024 financial year end, on 2 July 2024 the
Company announced that it has conducted its annual review of
Directors’ remuneration. Effective from 1 July 2024, the Group has
agreed to a revised remuneration structure with Non-Executive
Chair. The remuneration under the Non-Executive Director Letter
of Appointment increased from A$55,000 per annum to A$62,000
per annum (plus any minimum statutory superannuation
contribution required under superannuation law).
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
45
Remuneration report audited (continued)
Engagement of Remuneration Consultants
During the year the Group did not engage remuneration consultants.
Relationship between Remuneration Policy and Group Performance
The remuneration policy has been tailored to increase congruence between shareholders, directors and
executives. The methods applied to achieve this objective include performance-based incentives and the
Employee Incentive Plan. The Group believes this policy is important in contributing to shareholder value in
the current difficult market conditions for junior explorers.
b)
Directors and executive officers’ remuneration (KMP)
The following table of benefits and payments details, in respect to the financial year:
Short-term
Benefits
Post-
employment
Benefits
Share-based
Payments
Consulting
fees
Total
Salary and
Fees
Superannuation Shares
Options/
Rights *
June 2024
$
$
$
$
$
$
Directors
M McGuire
2024
55,000
6,050
-
13,208
-
74,258
A Hood
2024
180,736
19,881
-
13,709
-
214,326
A Jones
2024
120,136
13,215
-
13,709
-
147,060
Total
2024
355,872
39,146
-
40,626
-
435,644
*1,200,000 Performance Rights issued to Directors on 15 February 2024.
Short-term
Benefits
Post-
employment
Benefits
Share-based
Payments
Consulting
fees
Total
Salary and
Fees
Superannuation Shares
Options/
Rights ***
June 2023
$
$
$
$
$
$
Directors
M McGuire
2023
55,106
5,786
-
6,194
-
67,086
A Hood
2023
180,271
18,929
-
6,483
-
205,683
A Jones
2023
120,000
12,600
-
6,483
-
139,083
R Govender*
2023
55,511
1,629
-
-
-
57,140
Key Management Personnel
R Govender (CFO and Co Sec)** 2023
25,323
-
-
-
-
25,323
Total
2023
436,211
38,944
-
19,160
-
494,315
*Resigned on 3 November 2022. Short-term benefits include $40,000 termination fees.
** Resigned on 1 December 2022.
*** 3,500,000 Performance Rights issued to Directors on 23 December 2022
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
46
Remuneration report audited (continued)
c)
Employment Details of Members of Key Management Personnel (KMP)
The following table provides employment details of persons who were, during the financial year, members
of KMP of the Group. The table also illustrates the proportion of remuneration that was performance based
and fixed.
d)
Share based compensation
There were no shares or options issued to Directors during the financial year ended 30 June 2024 (30 June
2023: nil). There were a total of 1,200,000 performance rights granted to the Directors during the financial
year ended 30 June 2024 (30 June 2023: a total of 3,500,000 performance rights granted to Directors) to
provide cost effective consideration for the ongoing commitment and contribution to the Company in
Directors’ respective roles. Refer to section (e) (iii) below for details relating to these performance rights.
e)
Equity instrument disclosures relating to Key Management Personnel
(i) Share holdings
The number of ordinary shares in the company held during the financial year by directors and key
management personnel and their personally related entities is set out below:
KMP
Position held
Proportion of elements of remuneration
not related to performance
Variable
Fixed
Total
A Hood
Managing Director
6%
94%
100%
A Jones
Technical Director
9%
91%
100%
M McGuire
Non-Executive Chair
18%
82%
100%
Name
Balance at the
start of the year
Rights Issue /On
Market Purchase
Vesting of Perf
Options
Other changes /
Placement
participation
Balance at the end
of the year
2024
A Hood
3,808,108
-
-
-
3,808,108
A Jones
3,129,054
-
-
-
3,129,054
M McGuire
54,054
-
-
-
54,054
Total
6,991,216
-
-
-
6,991,216
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
47
Remuneration report audited (continued)
e)
Equity instrument disclosures relating to Key Management Personnel
(ii) Options
The numbers of options over ordinary shares in the Company held during the financial year by each
director of TechGen Metals Ltd and other key management personnel of the company, including their
personally related parties, are set out as follows:
Name
Balance at
the start of
the year
Granted
Forfeited/
Lapsed
Other
Changes
Balance at
the end of the
year
Vested and
exercisable
Unvested
2024
M McGuire
2,500,000
-
(2,500,000)*
-
-
-
-
A Hood
2,666,667
-
(2,666,667)*
-
-
-
-
A Jones
2,500,000
-
(2,500,000)*
-
-
-
-
Total
7,666,667
- (7,666,667)
-
-
-
-
*Options expired on 7 April 2024 unexercised.
(iii) Performance rights held by Directors or related party entities
The numbers of performance rights in the Company as at the financial year by each director of TechGen Metals
Ltd and other key management personnel of the company, including their personally related parties, are set out
as follows:
Name
Balance at
the start of
the year
Granted
Forfeited/
Lapsed
Other
Changes
Balance at
the end of the
year
Vested and
exercisable
Unvested
2024
A Hood
3,600,000
400,000
-
-
4,000,000
- 4,000,000
A Jones
3,600,000
400,000
-
-
4,000,000
- 4,000,000
M McGuire
1,000,000
400,000
1,400,000
- 1,400,000
Total
8,200,000
1,200,000 (i)
-
-
9,400,000
- 9,400,000
(i)
Pursuant to the shareholder approval obtained at the General Meeting held 16 January 2024, the Directors were granted a total of 1,200,000
Performance rights for the purposes of incentivising the Directors and to provide cost effective consideration to the Directors for their
ongoing commitment and contribution to the Company in their respective roles as Directors. The Performance Rights were issued for nil
consideration and expire on 15 February 2028.
Other transactions with Key Management Personnel and their related parties
Transactions with key management personnel and their related parties are made on normal commercial terms and
conditions and at market rates.
There were no related party transactions in the financial year.
*** End of the Remuneration Report ***
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
48
Proceedings on Behalf of 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. The Company was not a party to any such proceedings during the year.
Indemnity and Insurance of Officers
The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as
a director or executive, for which they may be held personally liable, except when there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives
of the Group against a liability 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.
Corporate Governance
In recognising the need for the highest standards of behaviour and accountability, the Directors support, and adhere
to,
good
governance
practices.
Refer
to
the
Company’s
Corporate
Governance
Statement
at
www.techgenmetals.com.au.
Indemnity and Insurance of Auditors
The Company has not, during the financial year, indemnified or agreed to indemnify the auditor of the Company or
any related entity against a liability incurred by the auditor.
During the financial period, the Company has not paid a premium in respect of a contract to insure the auditor of
the Company or any related entity.
Non-audit Services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by
the auditor are detailed in note 16 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by
another person or firm on the auditor’s behalf) 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 as disclosed in note 16 of the financial statements do not
compromise the auditor’s independence requirements of the Corporations Act 2001 for the following reasons:
a. All non-audit services have been reviewed and approved to ensure that they do not impact the integrity and
objectivity of the auditor; and
b. None of the services undermine the general principles relating to auditor independence as set out in APES
110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical
Standards Board, including reviewing, or auditing the auditors own work, acting in a management or
decision-making capacity for the company, acting as advocate for the Company or jointly sharing economic
risks and rewards.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ REPORT
49
Auditor's Independence Declaration
Section 307C of the Corporations Act 2001 requires our auditors, PKF Brisbane, to provide the Directors of the
Company with an Independence Declaration in relation to the audit of the financial report. This Independence
Declaration is set out on page 51 and forms part of this Directors’ Report for the year ending 30 June 2024.
This report is signed in accordance with a resolution of the Board of Directors:
____________________________________________________
Director
Dated this 24 September 2024
PKF Brisbane Pty Ltd is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not
accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under
Professional Standards Legislation.
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF TECHGEN METALS LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2024, there have
been no contraventions of:
(a)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
This declaration is in respect of TechGen Metals Limited and the entities it controlled during the year.
PKF BRISBANE AUDIT
TIM FOLLETT
PARTNER
BRISBANE
24 SEPTEMBER 2024
PKF Brisbane Audit
ABN 33 873 151 348
Level 2, 66 Eagle Street
Brisbane, QLD 4000
Australia
+61 7 3839 9733
brisbane@pkf.com.au
pkf.com.au
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Note
$
$
51
Revenue
Other income
28,676
14,293
Expenses
Administration costs
4
(846,890)
(961,427)
Exploration expenditure expenses
(43,862)
(97,499)
Impairment on exploration and evaluation expenditure
9
(690,476)
(1,036,985)
Share-based payment expense
12
(92,626)
(19,160)
Profit / (loss) before income tax expense
(1,645,178)
(2,100,778)
Income tax expense
6
-
-
Profit / (loss) for the year, attributable to members
(1,645,178)
(2,100,778)
Other comprehensive income
-
-
Total comprehensive income/(loss) for the year,
attributable to members
(1,645,178)
(2,100,778)
Cents
Cents
Loss per share
Basic loss per share
5
(1.624)
(3.386)
Diluted loss per share
5
(1.624)
(3.386)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
2024
2023
Note
$
$
52
ASSETS
CURRENT ASSETS
Cash and cash equivalents
7
2,322,190
1,613,023
Financial assets - term deposits
7(a)
25,000
25,000
Other receivables
8
53,185
100,305
Prepayments
90,721
5,598
TOTAL CURRENT ASSETS
2,491,096
1,743,926
NON-CURRENT ASSETS
Property, plant and equipment
21,039
27,949
Exploration and evaluation assets
9
4,337,865
4,082,624
TOTAL NON-CURRENT ASSETS
4,358,904
4,110,573
TOTAL ASSETS
6,850,000
5,854,499
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
10
130,712
233,197
TOTAL CURRENT LIABILITIES
130,712
233,197
NON-CURRENT LIABILITIES
TOTAL NON-CURRENT LIABILITIES
-
-
TOTAL LIABILITIES
130,712
233,197
NET ASSETS
6,719,288
5,621,302
EQUITY
Issued capital
11
12,905,347
10,254,809
Reserves
12
510,891
1,775,202
Accumulated losses
(6,696,950)
(6,408,709)
TOTAL EQUITY
6,719,288
5,621,302
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
53
Note
Issued
capital
Reserves Accumulated
losses
Total
$
$
$
$
Balance at 1 July 2022
7,512,809 1,756,042
(4,307,931)
4,960,920
Profit / (loss) for the year
-
-
(2,100,778) (2,100,778)
Other comprehensive loss for the year
-
-
-
-
Total comprehensive income/(loss)
-
-
(2,100,778) (2,100,778)
Transactions with owners, in their capacity as
owners:
Shares issued, net of transaction costs
11
2,742,000
-
-
2,742,000
Share-based payment expenses
12
-
19,160
-
19,160
Balance at 30 June 2023
10,254,809 1,775,202
(6,408,709)
5,621,302
Balance at 1 July 2023
10,254,809 1,775,202
(6,408,709)
5,621,302
Profit / (loss) for the year
-
-
(1,645,178) (1,645,178)
Other comprehensive loss for the year
-
-
-
-
Total comprehensive income/(loss)
-
-
(1,645,178) (1,645,178)
Transactions with owners, in their capacity as
owners:
Shares issued, net of transaction costs
11
2,650,538
-
-
2,650,538
Lapse in options
12
(1,356,937)
1,356,937
-
Share-based payment expenses
12
-
92,626
-
92,626
Balance at 30 June 2024
12,905,347
510,891
(6,696,950)
6,719,288
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
$
$
54
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received
28,676
14,293
Payments to suppliers
(920,468)
(824,164)
Payment for exploration & evaluation (if expensed)
(43,862)
(97,499)
Net cash provided by / (used in) operating activities
17
(935,654)
(907,370)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for exploration and evaluation (if capitalised)
9
(928,501)
(1,944,353)
Payments for acquisition of tenements
9
(17,216)
(120,909)
Net cash provided by / (used in) investing activities
(945,717)
(2,065,262)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
11
2,798,000
2,900,000
Costs associated with the issue of shares and options
11
(207,462)
(183,000)
Net cash provided by / (used in) financing activities
2,590,538
2,717,000
Net increase / (decrease) in cash held
709,167
(255,632)
Cash and cash equivalents at the beginning of financial year
1,613,023
1,868,655
Cash and cash equivalents at the end of financial year
7
2,322,190
1,613,023
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
55
Note 1 Statement of Material Accounting Policies
These consolidated financial statements and notes represent those of TechGen Metals Limited (the
“Company”) and its Controlled Entities (the “Group”). The separate financial statements of the parent
entity, TechGen Metals Limited, have not been presented within this financial report as permitted by the
Corporations Act 2001. The financial statements were authorised for issue on 24 September 2024 by the
Directors of the Company. The Directors have the power to amend and reissue the financial statements.
The Company is publicly listed and incorporated in Australia.
Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance
with the Corporations Act 2001, Australian Accounting Standards, other authoritative pronouncements
of the Australian Accounting Standards Interpretations of the Australian Accounting Standards Board
(AASB) and comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board. The Group is a for-profit entity for financial reporting purposes under
Australian Accounting Standards. Material accounting policies adopted in the preparation of these
financial statements are presented below and have been consistently applied unless otherwise stated. The
financial statements are presented in Australian Dollars which is the Group’s functional and presentation
currency and rounded to the nearest dollar.
Except for cash flow information, the financial statements have been prepared on an accruals basis and
are based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and financial liabilities.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in Note 22.
Principles of Consolidation
The consolidated financial statements incorporate the assets, liabilities and results of TechGen Metals
Ltd and all of the subsidiaries. TechGen Metals Ltd and its subsidiaries together are referred to in this
financial report as the Group. The Group controls an entity when the Group is exposed to or has rights
to variable returns from its involvement with the entity and has the ability to affect those returns through
its power over the entity. A list of controlled entities is contained in Note 19 to the financial statements.
All inter-company balances and transactions between entities in the Group, including any unrealised
profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistencies with those policies applied by the Group.
Share based payment transactions
The Group measures the cost of equity-settled transactions by reference to their fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the
Binomial or Black-Scholes or Monte Carlo model taking into account the terms and conditions upon
which the instruments were granted. The accounting estimates and assumptions relating to equity-settled
share-based payments would have no impact on the carrying amounts of assets and liabilities within the
next annual reporting period but may impact profit or loss and equity. Refer to Notes 12 and 13.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
56
Note 1 Statement of Material Accounting Policies (continued)
Operating Segments
Operating segments are presented using the 'management approach', where the information presented is
on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The
CODM is responsible for the allocation of resources to operating segments and assessing their
performance.
Trade and Other Payables
Trade and other payables represent the liabilities for goods and services received by the Group that remain
unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts
normally paid within 30 days of recognition of liability.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income). Current income tax expense charged to the statement of profit or loss and
other comprehensive income is the tax payable on taxable income. Current tax liabilities (assets) are
measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax assets and deferred tax liability balances
during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged
or credited outside profit or loss when the tax relates to items that are recognised outside of the statement
of profit or loss and other comprehensive income.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled and their measurement also reflects the manner in which
management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax
assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset
can be utilised.
Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each
separately identifiable area of interest. These costs are only carried forward where the right of tenure for
the area of interest is current and to the extent that they are expected to be recouped through the successful
development and commercial exploitation of the area, or alternatively sale of the area, or where activities
in the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
Exploration and evaluation expenditure assets acquired in a business combination are recognised at their
fair value at the acquisition date. Once the technical feasibility and commercial viability of the extraction
of mineral resources in an area of interest are demonstrable, the exploration and evaluation assets
attributable to that area of interest are first tested for impairment and then reclassified to mining
development.
Accumulated costs in relation to an abandoned area are written off in full against the result in the year in
which the decision to abandon the area is made. 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.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
57
Note 1 Statement of Material Accounting Policies (continued)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is
expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent
unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting
period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12
months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Employee Benefits
Share-based Compensation
During the year, no listed options (2023: nil) were granted to directors of TechGen Metals Limited or
approved by shareholders as a cost effective and efficient way to incentivise and reward the directors as
opposed to alternative forms of incentives. No additional options over shares in TechGen Metals Limited
were granted to employees during the year.
During the year no ordinary shares in the Company (2023: Nil) were issued as a result of the exercise of
remuneration options to directors of TechGen Metals Limited or other key management personnel of the
group. During the year, the Company issued a total of 1,200,00 Performance Rights (2023: a total of
3,500,000 Performance Rights as approved at Annual General Meeting held on 30 November 2022) to
directors of TechGen Metals Limited as approved by Shareholder at General Meeting held on 16 January
2024.
The Performance Rights were issued as part of equity-based remuneration incentive package of Directors
as a cost effective and efficient way to incentivise and reward the directors as opposed to alternative forms
on incentives. The cost of equity-settled transactions are measured at fair value on grant date. Fair value
is independently determined using either the Binomial, Black-Scholes or Monte Carlo option pricing
models that takes into account the exercise price, the term of the option, the impact of dilution, the
probability of milestone being achieved, the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the option,
together with non-vesting conditions that do not determine whether the Group receives the services that
entitle the employees to receive payment. Management’s assessment of the vesting probability was used
within the valuation model. No account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to the statement of profit or loss and other
comprehensive income is calculated based on the grant date fair value of the award, the best estimate of
the number of awards that are likely to vest and the expired portion of the vesting period.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
58
Note 1 Statement of Material Accounting Policies (continued)
Employee Benefits (continued)
The amount recognised in the statement of profit or loss and other comprehensive income for the period
is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial, Black-Scholes or Monte Carlo option pricing models, taking into
consideration the terms and conditions on which the award was granted. The cumulative charge to the
statement of profit or loss and other comprehensive income until settlement of the liability is calculated
as follows:
•
during the vesting period, the liability at each reporting date is the fair value of the award at that
date multiplied by the expired portion of the vesting period; and
•
from the end of the vesting period until settlement of the award, the liability is the full fair value
of the liability at the reporting date.
All changes in the liability are recognised in the statement of profit or loss and other comprehensive
income. The ultimate cost of cash-settled transactions is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has been
met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has
not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date of
modification. If the non-vesting condition is within the control of the Group or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or
employee and is not satisfied during the vesting period, any remaining expense for the award is recognised
over the remaining vesting period, unless the award is forfeited.
Loss per share
Basic loss per share
Basic loss per share is calculated by dividing the profit/(loss) attributable to the owners of TechGen
Metals Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in
ordinary shares issued during the financial year.
Diluted loss per share
Diluted loss per share adjusts the figures used in the determination of basic loss per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares. Basic loss per share is not diluted.
New and Amended Accounting Policies Adopted by the Group
The Group has adopted all of the new and amended Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
59
Note 1 Statement of Material Accounting Policies (continued)
New and Amended Accounting Policies Adopted by the Group (continued)
period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have
not been early adopted.
The Australian Accounting Standards Board has released guidance on what is considered to be material
accounting policy information. Accounting policy information is expected to be material if the users of
an entity's financial statements would need it to understand other material information in the financial
statements. For example, an entity is likely to consider accounting policy information material to its
financial statements if that information relates to material transactions, other events or conditions and:
•
A change in accounting policy during the reporting period and this change resulted in a material
change to the information in the financial statements;
•
A choice of accounting policy permitted by Australian Accounting Standards (e.g. choice to
measure an asset at historical cost or fair value);
•
An accounting policy developed (in accordance with AASB 108) in the absence of an
accounting standard that specifically applies;
•
The policy relates to a significant area of judgement or estimate (which also require disclosure);
or
•
Transactions, other events or conditions which are complex and the accounting policy
information is required in order for the users of financial statements to understand them.
Consequently, the quantum of accounting policy information disclosed in these financial statements has
been reduced from the previous financial reporting year.
Note 2 Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and on
other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the related
actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed
below.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using a
Monte Carlo model taking into account the terms and conditions upon which the instruments were
granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
period but may impact profit or loss and equity. Refer to note 13 for further information.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
60
Note 2 Critical accounting judgements, estimates and assumptions (continued)
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Group will commence
commercial production in the future, from which time the costs will be amortised in proportion to the
depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised. In addition, costs are only capitalised that are expected
to be recovered either through successful development or sale of the relevant mining interest. Factors
that could impact the future commercial production at the mine include the level of reserves and
resources, future technology changes, which could impact the cost of mining, future legal changes and
changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable
in the future, they will be written off in the period in which this determination is made.
Note 3
Operating Segments
Identification of reportable operating segments
The Group is organised into one operating segment, being mining and exploration operations. This
operating segment is based on the internal reports that are reviewed and used by the Board of Directors
(who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and
in determining the allocation of resources. The CODM reviews EBITDA (earnings before interest,
tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the
CODM are consistent with those adopted in the financial statements. The information reported to the
CODM is on a monthly basis. The Group operates in one geographical segment being Australia.
Note 4
Administration Costs
Consolidated
2024
$
2023
$
Consultancy fees
15,083
36,622
Director’s fees
141,803
350,827
Accounting fees
128,400
116,363
Legal fees
25,892
12,346
Professional fees
119,067
172,475
Insurance
31,909
5,658
Marketing fees
243,731
148,724
Others
141,005
118,412
846,890
961,427
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
61
Note 5
Loss Per Share
The following reflects the income and share data used in the basic and diluted loss per share
computations:
Consolidated
2024
$
2023
$
Net loss attributable to ordinary equity holders
(1,645,178)
(2,100,778)
Shares
Shares
Weighted average number of shares
101,433,645
62,081,760
Cents
Cents
Loss per share
(1.624)
(3.386)
Diluted loss per share
(1.624)
(3.386)
For the purposes of calculating the diluted loss per share, the denominator has excluded 22,026,788
options and 9,400,000 performance rights as the effect would be anti-dilutive.
Note 6
Income Tax Expense
Consolidated
(a) Numerical reconciliation of income tax expense/ (income)
to prima facie tax payable:
2024
$
2023
$
Total loss before income tax
(1,645,178)
(2,100,778)
Tax at the Australian tax rate of 25% (2023: 25%)
(411,295)
(525,194)
Tax effect of amounts which are not deducible (taxable) in
calculating taxable income:
Non-deductible expenses
196,556
265,171
Derecognition of current year tax losses arising
214,739
260,023
Income tax expense
-
-
(b) The components of income tax expense:
Current tax
-
-
Deferred tax
-
-
Adjustments to current and deferred tax
-
-
Total income tax expense
-
-
(c) Unrecognised deferred tax asset/ (liability) not probable to
recovery under AASB 112 is made up of:
Capitalized exploration project
(303,998)
(135,989)
Plant, property and equipment
(5,260)
(6,987)
Blackhole expenditure
86,021
52,456
Tax losses
1,375,118
956,055
1,151,881
865,535
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
62
Consolidated
2024
$
2023
$
Note 7
Cash and Cash Equivalents
Cash at bank
2,322,190
1,613,023
2,322,190
1,613,023
Note 7(a) Financial Assets - Term Deposits
Term deposits
25,000
25,000
25,000
25,000
Note 8
Other Receivables
Consolidated
2024 2023
$ $
GST receivable
43,890
95,305
Security deposit
9,295
5,000
53,185
100,305
Note 9
Exploration and Evaluation Assets
Consolidated
2024
$
2023
$
Exploration and evaluation – at cost
5,021,125
5,119,609
Impairment of exploration and evaluation expenditure
(683,260)
(1,036,985)
Exploration and evaluation expenditure at end of period
4,337,865
4,082,624
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
63
Note 9
Exploration and Evaluation Assets (continued)
Reconciliations:
Reconciliations of the written down values at the beginning and end of the current and previous financial
year are set out below:
Consolidated
2024
$
2023
$
Consolidated
Balance at the beginning of year
4,082,624
3,029,347
Additions - shares issued for tenements acquired
-
25,000
Additions – cash consideration issued for tenements acquired
17,216
120,909
Impairment of Exploration and Evaluation Expenditure
(690,476)
(1,036,985)
Other additions (capitalised)
928,501
1,944,353
Balance at the end of year
4,337,865
4,082,624
Recoverability of the carrying amount of exploration assets is dependent on the successful exploration
and development of project or alternatively through the sale of the areas of interest. Directly attributed
exploration and evaluation costs are capitalised to exploration and evaluation assets. A regular review
for impairment is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
During the year, the Group surrendered application tenements which were held under Narryer,
Earaheedy, Harbutt Range, and Cyclops areas. Tenements relating to Narryer, Earaheedy, Harbutt
Range, and Cyclops projects were impaired during the year accordingly.
Note 10 Trade and Other Payables
Consolidated
2024
$
2023
$
Trade payables
95,590
233,197
Credit card
10,113
-
Accruals
25,009
-
130,712
233,197
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
64
Note 11 Issued Capital
30 June 2024
30 June 2023
Number
$
Number
$
Balance at the beginning of year
77,168,281
10,254,809
53,202,702
7,512,809
Share issue: 24 September 2022
-
-
10,540,541
1,950,000
Share issue: 24 December 2022
-
-
270,270
50,000
Share issue: 8 March 2023
-
-
297,620
25,000
Share issue: 15 June 2023
-
-
12,857,148
900,000
Share issue: 28 November 20231
18,949,807
1,061,189
-
-
Share issue: 31 January 20242
31,014,480
1,736,811
-
-
Share issue: 24 April 20243
1,000,000
60,000
-
-
Capital Raising costs
-
(207,462)
-
(183,000)
Balance at the end of the year
128,132,568
12,905,347
77,168,281 10,254,809
Notes:
1.
Shares issued at $0.056 per share pursuant to a Placement Tranche 1.
2.
Shares issued at $0.056 per share pursuant to a Placement Tranche 2.
3.
Shares issued at a deemed price of $0.06 per share pursuant to investor relations services rendered.
Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the
Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary
shares have no par value and the Company does not have a limited amount of authorised capital.
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
There is no current on-market share buy-back.
Capital risk management
The Group's objectives when managing capital is to safeguard its ability to continue as a going concern,
so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an
optimum capital structure to reduce the cost of capital. The capital risk management policy remains
unchanged from the 30 June 2023 Annual Report.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
65
Note 12 Reserves
Share based payment reserve
The share based payment reserve records items recognised as expenses on valuation and issue of share
options and reversals for options that expired without being exercised.
Notes:
1 Variables used to calculate the option/share based payment valuations are as follows:
Inputs
Director
Performance
Rights –
Class A & B
[FY22/23]
Director
Performance
Rights –
Class C
[FY22/23]
Director
Performance
Rights –
Class D
[FY23/24]
Director
Performance
Rights –
Class E
[FY23/24]
Broker
Options–
[FY23/24]
Investor
Relations
Options –
[FY23/24]
Number of
instruments
1,700,000
1,800,000
600,000
600,000
1,000,000
250,000
Underlying share
price
$0.10
$0.10
$0.075
$0.075
$0.06
$0.03
Exercise price
$0.00
$0.00
$0.00
$0.00
$0.20
$0.12
Volatility
94%
94%
114%
114%
170%
245%
Life of instruments
(years)
4
4
4
4
3
2
Dividend
Nil
Nil
Nil
Nil
Nil
Nil
Risk free rate
3.28%
3.28%
4.21%
4.21%
3.91%
4.08%
Value per
instrument
$0.10
$0.0653
$0.06
$0.053
$0.046
$0.024
2 During the year, the Group recorded the Lapse of the 3,333,334 Restructure Options issued at 26/11/2020
with an exercise price of $0.30, the Lapse of the 10,000,000 Directors Options issued on 07/04/2021 with
an exercise price of $0.30, and the Lapse of the 2,000,000 Lead Manager Options issued on 23/12/2022
and 23/01/2023 with an exercise price of $0.30.
30 June 2024
$
30 June 2023
$
Share based payments reserve
Balance at the beginning of year
1,775,202
1,756,042
Share based payments1
92,626
19,160
Lapse of the options2
(1,356,937)
-
Balance at the end of the year
510,891
1,775,202
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
66
Note 13 Share Based Payments
a. Share Options
Consolidated
2024
2023
Number
Exercise
Price
Number
Exercise
Price
On issue at beginning of year
19,333,334
-
17,833,334
-
Options expired during year - unlisted
(15,333,334)
$0.30
(500,000)
$0.60
Options issued during year -unlisted
5,285,716
$0.20
2,000,000
$0.30
Options issued during year - listed
12,741,072
$0.12
-
-
On issue at end of year
22,026,788
-
19,333,334
-
There were 22,026,788 total options on issue exercisable for the financial year ended 30 June 2024
(2023: 19,333,334 options). The weighted average exercise price of these options is $0.21 (2023:
$0.30) and the weighted average expected life of options is 1.83 years (2023: 0.96 years).
The unlisted options on issue were issued under the following terms and conditions:
Unlisted Number under option
Expiry date
Exercise price
4,000,000
16-Nov-24
$0.30
1,000,000
16-Aug-26
$0.20
4,285,716
16-Aug-26
$0.20
Listed Number under option
(ASX: TG1O)
12,741,072
05-Feb-26
$0.12
Total Options exercisable as at 30 June 2024
22,026,788
Options Valuations
Summary
Broker
Optiona
Lead Manager
Optionb
Investor
Relations
Optionc
Number of instruments
4,000,000
1,000,000
250,000
Underlying share price ($)
0.20
0.06
0.03
Exercise Price ($)
0.30
0.20
0.12
Expected Volatility
94%
170%
245%
Life of Options (years)
3
3
2
Expected dividends
nil
nil
nil
Risk Free rate
0.11%
3.91%
4.08%
Value per instrument ($)
0.0998
0.046
0.024
Value per tranche ($)
399,105
46,000
6,000
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
67
Note 13 Share Based Payments (continued)
a. Share Options (continued)
Notes:
a) On 16 November 2021, the Group issued 4,000,000 unlisted options, exercisable at $0.30 on or before
16 November 2024, to Vert Capital Pty Ltd, pursuant to the broker services provided to the Company.
Directors have used a Black Scholes option pricing model to determine the valuation of these Broker
Options to be $399,105.
b) On 16 August 2023, the Group issued 1,000,000 unlisted options, exercisable at $0.20 on or before
16 August 2026, to Viriathus Capital Pty Ltd, pursuant to lead manager services provided in respect
of the Placement as announced on 9 June 2023. Directors have used a Black Scholes option pricing
model to determine the valuation of these Broker Options to be $46,000.
c) On 24 April 2024, the Group issued 250,000 listed options (ASX: TG1O) exercisable at $0.12,
expiring on 5 February 2026 in lieu of investor relations services rendered.
b. Performance Rights
Performance Rights Valuations Summary
Vendors Performance Rights
Number of instruments
4,700,000
Underlying share price ($)
0.20
Exercise price ($)
0.00
Expected volatility
97%
Life of options (years)
5
Expected dividends
nil
Risk free rate
0.11%
Value per instrument ($)
0.2000
Value per tranche ($)
940,000
The performance rights outstanding at 30 June 2024 have vesting conditions as follows:
The 4,700,000 Performance Rights issued as part of the tenement Acquisition Agreements have been
determined by Directors to have a value of $940,000 in accordance with a Black Scholes pricing model.
Subject to the terms and conditions below, each one (1) Performance Right is convertible into one (1)
Share in the capital of the Company, upon the following milestones being achieved collectively
(“Conversion Milestone”).
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
68
Note 13 Share Based Payments (continued)
b. Performance Rights (continued)
Name
Conversion Milestone
Expiry Date
Class A
Announcement by the Company of the definition of a
JORC 2012 compliant resource in the Inferred
category (or higher) of not less than 100,000 ounces
of gold or gold equivalent metals at a minimum of 1.0
g/t in respect of the area of the Project Tenements (as
at the Settlement Date) verified by an independent
competent person.
5:00pm (AWST) on the date
that is 5 years from the date of
issue of the Performance
Rights
Class B
Announcement by the Company of the definition of a
JORC 2012 compliant resource in the Inferred
category (or higher) of not less than 500,000 ounces
of gold or gold equivalent metals at a minimum of 1.0
g/t in respect of the area of the Project Tenements (as
at the Settlement Date) verified by an independent
competent person with not less than 20% of the
resource in the Measured Category.
5:00pm (AWST) on the date
that is 5 years from the date of
issue of the Performance
Rights
Performance Rights
Valuations Summary
Directors
Performance
Rights (Class A)
Directors
Performance
Rights (Class B)
Directors
Performance
Rights (Class C)
Number of instruments
400,000
1,300,000
1,800,000
Underlying share price ($)
0.10
0.10
0.10
Exercise price ($)
0.00
0.00
0.00
Expected volatility
94%
94%
94%
Life of options (years)
4
4
4
Expected dividends
nil
nil
nil
Risk free rate
3.28%
3.28%
3.28%
Value per instrument ($)
0.10
0.10
0.0653
Value per tranche ($)
8,000
6,500
117,540
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
69
Note 13 Share Based Payments (continued)
b. Performance Rights (continued)
Performance Rights
Valuations Summary
Directors
Performance Rights
(Class D)
Directors
Performance Rights
(Class E)
Number of instruments
600,000
600,000
Underlying share price ($)
0.075
0.075
Exercise price ($)
0.00
0.00
Share price target ($)
0.15
0.20
Expected volatility
114%
114%
Life of options (years)
4
4
Expected dividends
nil
nil
Risk free rate
4.21%
4.21%
Value per instrument ($)
0.06
0.053
Value per tranche ($)
36,000
31,800
The performance rights outstanding at 30 June 2024 have the following vesting conditions:
The total 4,700,000 Performance Rights issued as part of equity-based remuneration incentive
package of Directors have been independently valued using the Monte Carlo pricing model using the
above
inputs.
Subject to the terms and conditions below, each one (1) Performance Right is convertible into one
(1) Share in the capital of the Company, upon the following milestones being achieved collectively
(“Conversion Milestone”).
Class
Conversion Milestone
Expiry Date
A
Upon TG1 discovering 150,000 Ounces gold /
equivalent cut off grated 0.5g/t Au.
23 December 2026
B
Upon TG1 discovering 500,000 Ounces gold /
equivalent
Cut off grated 0.5g/t Au.
23 December 2026
C
Upon TG1 achieving a volume weighted average price
(VWAP) for shares of $0.275 or more over 20
consecutive trading days on which the Company’s
securities have actually traded.
23 December 2026
D
Company achieving a VWAP of at least $0.15 per
Share over a period of 20 consecutive trading days
15 February 2028
E
Company achieving a VWAP of at least $0.20 per
Share over a period of 20 consecutive trading days
15 February 2028
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
70
Note 14 Dividends
Options granted carry no dividend or voting rights. When exercisable, each option is convertible into
one fully paid ordinary share. There were no dividends paid, recommended, or declared during the
current or previous financial year.
Note 15 Key Management Personnel and Related Party Transactions
Shareholdings – Ordinary shares
The number of shares held by each director, including their personally related parties, in the Company
are set out below:
2024
2023
Number
of shares
Number
of shares
Andrew Jones
3,129,054
3,129,054
Ashley Hood
3,808,108
3,808,108
Maja McGuire
54,054
54,054
6,991,216
6,991,216
Transactions with related parties:
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those available to other parties unless otherwise stated. There were no related party transactions in
the financial year.
Key Management Personnel:
Refer to the remuneration report contained in the directors’ report for details of the remuneration paid
or payable to each of member of the Group’s key management personnel (KMP) for the year ended 30
June 2024.
Consolidated
2024
$
Consolidated
2023
$
Short-term employee benefits
355,872
436,211
Post-employment benefits
39,146
38,944
Share-based payments
40,626
19,160
Consulting fees
-
-
435,644
494,315
Short-term employee benefits
These amounts include fees and benefits paid to the non-executive Chair and non-executive directors as
well as all salary, consulting fees and fringe benefits awarded to executive directors and other KMP.
Share-based payments
These amounts represent the expense related to the issuance of performance rights to KMP’s in the year.
Further information in relation to KMP remuneration can be found in the Directors’ Report.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
71
Note 16 Remuneration of Auditors
During the financial year the following fees were paid or payable for services provided by PKF Brisbane
Audit, the auditor of the Company:
Consolidated
2024
$
2023
$
Audit services – PKF Brisbane Audit
Audit or review of the financial statements
36,600
33,600
36,600
33,600
Other services – PKF Brisbane
Tax services
5,675
5,400
42,275
39,000
Note 17 Cash Flow Information
Consolidated
a. Reconciliation of cash flow from operations with profit /
(loss) after income tax
2024
$
2023
$
Profit / (Loss) after income tax
(1,645,178)
(2,100,778)
Non-cash and non-operating items in loss:
Depreciation
6,910
6,911
Share based payments
92,626
19,160
Shares issued to investor relations at nil cash consideration
60,000
Impairment of exploration assets
690,476
1,036,985
Changes in operating assets and liabilities:
(Increase) / Decrease in other receivables
47,120
(35,670)
(Increase) / Decrease in prepayments
(85,124)
(598)
Increase / (Decrease) in trade and other payables
(102,484)
166,620
Net cash inflow/(outflow) from operating activities
(935,654)
(907,370)
b. Non-cash investing and financing activities
Share based payments
92,626
19,160
Shares issued to investor relations at nil cash consideration
60,000
-
Total non-cash investing and financing activities
152,626
19,160
Note 18 Financial Risk Management
The Group's financial instruments consist mainly of accounts with banks, other receivables and
payables.
The totals for each category of financial instruments, measured in accordance with accounting policies
in Note 1 to these financial statements are as follows:
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
72
Note 18 Financial Risk Management (continued)
Consolidated
2024
$
2023
$
Financial Assets
Cash and cash equivalents
2,322,190
1,613,023
Financial assets - term deposits
25,000
25,000
Other receivables
143,907
105,903
Total Financial Assets
2,491,097
1,743,926
Financial Liabilities
Trade payables
130,712
233,197
Total Financial Liabilities
130,712
233,197
Financial Risk Management Policies
The directors' overall risk management strategy seeks to assist the company in meeting its financial
targets, whilst minimising potential adverse effects on financial performance. Risk management policies
are approved and reviewed by the Board of Directors on a regular basis. These included the credit risk
policies and future cash flow requirements.
Specific Financial Risk Exposures and Management
The main risk the Group is exposed to through its financial instruments is liquidity risk. There have been
no substantive changes in the types of risks the Group is exposed to, how these risks arise, or the
objectives, policies and process for managing these risks from the prior period.
Liquidity Risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities. The Group manages this risk through
preparing forward-looking cash flow analyses in relation to its operational, investing and financing
activities and obtaining funding from a variety of sources. An undiscounted contractual maturity analysis
for financial liabilities is noted below. The timing of cash flows presented in the table to settle financial
liabilities reflects the earliest contractual settlement dates.
Trade and sundry payables are expected to be paid as follows:
Consolidated
2024
$
2023
$
Less than 6 months
130,712
233,197
130,712
233,197
Net Fair Value
The fair values of financial assets and financial liabilities are presented in the following table and can
be compared to their carrying values as presented in the statement of financial position. Fair values are
those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm's length transaction.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
73
Note 18 Financial Risk Management (continued)
Net Fair Value (continued)
Fair values derived may be based on information that is estimated or subject to judgment, where changes
in assumptions may have a material impact on the amounts estimated. Areas of judgment and the
assumptions have been detailed below. Where possible, valuation information used to calculate fair
value is extracted from the market, with more reliable information available from markets that are
actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices.
Where securities are unlisted and no market quotes are available, fair value is obtained using discounted
cash flow analysis and other valuation techniques commonly used by market participants.
Note 19 Controlled Entities
Ownership
Name of Entity
Country of
incorporation
Class of
shares
30 June
2024
%
30 June
2023
%
Parent entity
TechGen Metals Ltd
Australia
Controlled entities
TechGen Metals Ontario Limited
Canada
Ordinary
100
100
TechGen NSW Pty Ltd
Australia
Ordinary
100
100
Tech Gen Metals Operations Pty Ltd
Australia
Ordinary
100
100
TechGen BBG Pty Ltd
Australia
Ordinary
100
100
TechGen BRV Pty Ltd (i)
Australia
Ordinary
-
100
(i)
TechGen BRV Pty Ltd was voluntarily deregistered on 9 August 2023.
Consolidated
2024
2023
Carrying
Amount
$
Net Fair
Value
$
Carrying
Amount
$
Net Fair
Value
$
Financial Assets
Cash and cash equivalents
2,322,190
2,322,190
1,613,023
1,613,023
Financial assets - term deposits
25,000
25,000
25,000
25,000
Other receivables
143,907
143,907
105,903
105,903
Total Financial Assets
2,491,097
2,491,097
1,743,926
1,743,926
Financial Liabilities
Trade payables
130,712
130,712
233,197
233,197
Total Financial Liabilities
130,712
130,712
233,197
233,197
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
74
Note 20 Contingent Liabilities
The Group does not have any contingent liabilities at 30 June 2024 and 30 June 2023.
Note 21 Commitments
Exploration commitments
So as to maintain current rights to tenure of various exploration and mining tenements, the Group will
be required to outlay amounts in respect of tenement rent to the relevant governing authorities and to
meet certain annual exploration expenditure commitments. These outlays (exploration expenditure and
rent), which arise in relation to granted tenements, inclusive of tenement applications granted subsequent
to the year end, are as follows:
Consolidated
2024
$
2023
$
Exploration expenditure commitments payable:
- Within one year
432,333
566,573
- Later than one year but not later than five years
683,914
1,098,911
1,116,247
1,665,484
Lease commitments
Office month to month lease rentals are as follows:
- Within one year
22,400
38,274
- Later than one year but not later than five years
-
-
22,400
38,274
The Company has a monthly office lease on an office in West Perth with an option to renew, on a month-
to-month basis which is still currently active. This short-term lease is excluded from the provisions of
AASB16.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
75
Note 22 Parent Entity Financial Information
a. Summary Financial Information
Consolidated
2024
$
2023
$
Balance Sheet
Current assets
2,469,959
1,694,037
Total assets
7,357,548
6,754,646
Current liabilities
119,959
89,618
Total liabilities
119,959
89,618
Issued capital
12,905,347
10,254,809
Reserves
510,891
1,775,202
Accumulated losses
(6,178,649)
(5,364,983)
Total equity
7,237,589
6,665,028
Loss for the year
(2,170,603)
(1,057,052)
Total comprehensive loss for the year
(2,170,603)
(1,057,052)
b. Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 and 30 June 2023.
c. Guarantees entered into by the parent entity
The parent entity has provided no financial guarantees.
d. Contractual commitments
The parent entity had no contractual commitments as at 30 June 2024 (2023: $nil), other than those
disclosed in Note 21.
e. Significant accounting policies
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in
Note 1, except for the following:
•
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent
entity.
TECHGEN METALS LIMITED
ABN 66 624 721 035
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
76
Note 23 Events Subsequent to Balance Date
On 2 July 2024, the Group announced that it had conducted its annual review of Directors’ remuneration
and has agreed to a revised remuneration structures effective 1 July 2024.
On 31 July 2024, the Group surrendered three exploration licenses (E45/5294, E45/5439 and E45/5967)
relating to the Harbutt Range and Cyclops Projects and extended Ida Valley license (E29/1053).
No other matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the result of those operations, or the
state of affairs of the Group in future financial periods.
Note 24 Company Details
The registered office and principal place of the Company is 683 Murray Street, West Perth WA 6005.
TECHGEN METALS LIMITED
ABN 66 624 721 035
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
77
Name of Entity
Country
of
incorpor-
ation
Entity type
Owner-
ship
%
Australian or
foreign tax
resident
Jurisdiction
for foreign tax
resident
Parent entity
TechGen Metals Ltd
Australia
Body
Corporate
N/A Australian
N/A
Controlled entities
TechGen Metals
Ontario Limited
Canada
Body
Corporate
100 Australian
Dual-
Canada
TechGen NSW Pty
Ltd
Australia
Body
Corporate
100 Australian
N/A
Tech Gen Metals
Operations Pty Ltd
Australia
Body
Corporate
100 Australian
N/A
TechGen BBG Pty
Ltd
Australia
Body
Corporate
100 Australian
N/A
The parent entity and its wholly owned Australian subsidiaries have formed an income tax consolidated
group under the tax consolidation regime.
TECHGEN METALS LIMITED
ABN 66 624 721 035
DIRECTORS’ DECLARATION
78
In the directors’ opinion:
• the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
• the attached financial statements and notes comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board as described in Note 1 to the financial
statements;
• the attached financial statements and notes give a true and fair view of the Group’s financial position
as at 30 June 2024 and of its performance for the financial year ended on that date;
• there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable; and
● the attached Consolidated Entity Disclosure Statement is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act
2001.
On behalf of the directors
Director: _________________________________________________________
Dated this 24th day of September 2024
PKF Brisbane Pty Ltd is a member of PKF Global, the network of member firms of PKF International Limited, each of which is a separately owned legal entity and does not
accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm(s). Liability limited by a scheme approved under
Professional Standards Legislation.
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF TECHGEN METALS LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of TechGen Metals Limited (the Company) and its
subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2024,
the consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the financial report of TechGen Metals Limited is in accordance with the Corporations Act
2001, including:
a)
giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance
for the year ended on that date; and
b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
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 & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
PKF Brisbane Audit
ABN 33 873 151 348
Level 2, 66 Eagle Street
Brisbane, QLD 4000
Australia
+61 7 3839 9733
brisbane@pkf.com.au
pkf.com.au
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. For the matter below, our description of how our audit addressed the matter is
provided in that context.
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2024 the carrying value of
exploration and evaluation assets was
$4,337,865 (2023: $4,082,624), as
disclosed in Note 9.
The Group’s accounting policy in respect of
exploration and evaluation expenditure is
outlined in Note 1.
Significant judgement is required:
•
in determining whether facts and
circumstances indicate that the
exploration and evaluation assets
should be tested for impairment in
accordance with Australian
Accounting Standard AASB 6
Exploration for and Evaluation of
Mineral Resources (“AASB 6”); and
•
in determining the treatment of
exploration and evaluation
expenditure in accordance with
AASB 6, and the Group’s
accounting policy. In particular:
o whether the particular
areas of interest meet the
recognition conditions for
an asset; and
o which elements of
exploration and evaluation
expenditures qualify for
capitalisation for each area
of interest.
Our work included, but was not limited to, the
following procedures:
• detailed review of the directors and
managements’ assessment of impairment,
including assessing whether there are
indicators of impairment:
o assessing whether the rights to tenure of
the areas of interest remained current at
balance date as well as confirming that
rights to tenure are expected to be
renewed for tenements that will expire in
the near future;
o holding discussions with the directors
and management as to the status of
ongoing exploration programmes for the
areas of interest, as well as assessing if
there was evidence that a decision had
been made to discontinue activities in
any specific areas of interest; and
o obtaining and assessing evidence of the
Group’s future intention for the areas of
interest, including reviewing future
budgeted expenditure and related work
programmes;
• considering whether exploration activities for
the areas of interest had reached a stage
where a reasonable assessment of
economically recoverable reserves existed;
• testing, on a sample basis, exploration and
evaluation expenditure incurred during the
year for compliance with AASB 6 and the
Group’s accounting policy; and
• assessing the appropriateness of the related
disclosures in Note 1 and Note 9.
Other Information
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 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, 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:
a)
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
b)
the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i.
the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
ii.
the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/ Home.aspx. This description forms part of
our auditor’s report.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2024.
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.
Opinion
In our opinion, the Remuneration Report of TechGen Metals Limited for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
PKF BRISBANE AUDIT
TIM FOLLETT
PARTNER
BRISBANE
24 September 2024
TECHGEN METALS LTD AND ITS CONTROLLED ENTITIES
A.B.N. 66 624 721 035
SHAREHOLDER INFORMATION
30 June 2024
83
The following additional information is required by the Australian Securities Exchange Ltd in respect of listed
public companies only. The information is current as at 20 September 2024.
a.
Distribution of Shareholders
(i)
Ordinary share capital
- 128,132,568 fully paid shares held by 1,481 shareholders. All issued ordinary share carry one vote per share
and carry the rights to dividends.
Class of Equity Security
Category (size of holding)
Number of Holders
Fully Paid Ordinary Shares
1 - 1,000
42
3,927
1,001 – 5,000
304
1,014,308
5,001 – 10,000
252
2,091,552
10,001 – 100,000
675
25,905,388
100,001 – and over
208
99,117,393
1,481
128,132,568
The number of shareholdings held in less than marketable parcels is 682.
b.
Distribution of Option Holders (ASX: TG1O)
Class of Equity Security
Category (size of holding)
Number of Holders
Listed Options
1 - 1,000
1
90
1,001 – 5,000
0
0
5,001 – 10,000
3
26,784
10,001 – 100,000
49
2,538,613
100,001 – and over
32
10,175,585
85
12,741,072
c. The Company did not have substantial shareholders at the date of this report.
d.
Voting Rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares
–
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.
TECHGEN METALS LIMITED
ABN 66 624 721 035
SHAREHOLDER INFORMATION
84
e.
20 Largest holders of quoted equity securities (Fully Paid Ordinary Shares)
Name
Number
Held
Percentage %
1.
M1NT PROPERTY
PTY LTD
5,480,321
4.28
2.
NETWEALTH INVESTMENTS LIMITED
3,321,686
2.59
3.
HUSE LANE PTY LTD
3,256,612
2.54
4.
TASEX GEOLOGICAL SERVICES PTY LTD
2,975,000
2.32
5.
PRIMARY SECURITIES LTD
2,800,000
2.19
6.
HAMPSHIRE AUTOMOTIVE CENTRE PTY LTD
2,746,881
2.14
7.
MR SAMUEL BAILLIEU HORDERN
2,500,000
1.95
8.
STRATA INVESTMENT HOLDINGS PLC
1,985,716
1.55
9.
NETWEALTH INVESTMENTS LIMITED
1,957,654
1.53
10.
S3 CONSORTIUM HOLDINGS PTY LTD
1,950,000
1.52
11.
GLOBAL CONSORTIUM HOLDINGS PTY LTD
1,735,000
1.35
12.
BNP PARIBAS NOMINEES PTY LTD
1,674,151
1.31
13.
FREEDOM TRADER PTY LTD
1,515,266
1.18
14.
LDU PTY LTD
1,444,880
1.13
15.
LIEN PTY LTD
1,425,000
1.11
16.
SAR CAPITAL PTY LTD
1,400,000
1.09
17.
GRANT EDWARDS PTY LTD
1,339,286
1.05
18.
MRS JUDITH SUZANNE PIGGIN + MR DAMIEN JAY PIGGIN + MR
GLENN ADAM PIGGIN
1,331,559
1.04
19.
MS CHUNYAN NIU
1,331,167
1.04
20.
MRS WIN WIN HTWE
1,200,000
0.94
Total Top 20 Shareholders of Fully Paid Ordinary Shares
43,370,179
33.85
Total remaining holder issued capital balance – Fully Paid Ordinary
Shares
84,762,389
66.15
TECHGEN METALS LIMITED
ABN 66 624 721 035
SHAREHOLDER INFORMATION
85
f.
20 Largest holders of quoted ‘TG1O’ Listed Options exercisable at $0.12 on or before 5 February 2026
Name
Number
Held
Percentage %
1.
NATHAN MONK SMSF PTY LTD
1,500,000
11.77
2.
MS CHUNYAN NIU
723,291
5.68
3.
SYNDICATE MINERALS PTY LTD
669,642
5.26
4.
PRIMARY SECURITIES LTD
611,607
4.80
5.
MR MD AKRAM UDDIN
577,565
4.53
6.
NETWEALTH INVESTMENTS LIMITED
554,222
4.35
7.
NETWEALTH INVESTMENTS LIMITED
472,558
3.72
8.
STRATA INVESTMENT HOLDINGS PLC
446,429
3.51
9.
S3 CONSORTIUM HOLDINGS PTY LTD
446,428
3.50
10.
GRANT EDWARDS PTY LTD
334,821
2.63
11.
AYMON PACIFIC PTY LTD
312,500
2.45
11.
GLOBAL CONSORTIUM HOLDINGS PTY LTD
312,500
2.45
11.
MR SAMUEL BAILLIEU HORDERN
312,500
2.45
14.
LDU PTY LTD
300,000
2.35
15.
S3 CONSORTIUM PTY LTD
250,000
1.96
16.
MRS JUDITH SUZANNE PIGGIN + MR DAMIEN JAY PIGGIN + MR
GLENN ADAM PIGGIN
235,714
1.85
17.
MR ROBERT WEBB
223,213
1.75
18.
JUMPER P FUNDS PTY LTD
168,768
1.32
19.
SAR CAPITAL PTY LTD
156,250
1.23
20.
CITICORP NOMINEES PTY LIMITED
154,302
1.21
Total Top 20 holders of Listed Options exercisable at $0.12 on or before
5 February 2026
8,762,310
68.77
Total remaining holder issued capital balance – Listed Options
3,978,762
31.23
TECHGEN METALS LIMITED
ABN 66 624 721 035
SHAREHOLDER INFORMATION
86
2.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares and listed options of the company on the Australian
Securities Exchange Limited.
3.
Restricted Securities
The Company does not have any restricted securities on issue as at the date of this report
4.
Unquoted Securities
The Company has the following unquoted securities on issue as at the date of this report:
- 4,000,000 options exercisable at $0.30 on or before 16 November 2024
- 5,285,716 options exercisable at $0.20 on or before 16 August 2026
- 4,700,000 performance rights expiring 24 March 2026
- 3,500,000 performance rights expiring 23 December 2026
- 1,200,000 performance rights expiring 15 February 2028
TECHGEN METALS LIMITED
ABN 66 624 721 035
TENEMENT INFORMATION
87
Schedule of Tenements
List of exploration tenements held by the Company as at the 30 June 2024.
PROJECT
TENEMENT
LOCATION
OF
TENEMENT
STATUS
GRANT
DATE
INTEREST
Pilbara
E45/6411
WA
Application
N/A
Application only
Pilbara
E45/6671
WA
Application
N/A
Application only
Pilbara
E45/6751
WA
Application
N/A
Application only
Pilbara
E47/5022
WA
Application
N/A
Application only
Ponton Uranium
E39/2472
WA
Application
N/A
Application only
El Donna
E27/610
WA
Granted
05/02/2020
100%
Harbutt Range*
E45/5439
WA
Granted
25/02/2020
100%
Harbutt Range*
E45/5294
WA
Granted
18/03/2019
100%
Harbutt Range*
E45/6602
WA
Application
N/A
Application only
Ida Valley
E36/1015
WA
Granted
05/01/2022
100%
Ida Valley
E29/1053
WA
Granted
05/07/2019
100%
Mt Boggola
E08/3458
WA
Granted
13/12/2022
100%
Mt Boggola
E08/3269
WA
Granted
18/10/2021
100%
Mt Boggola
E08/2996
WA
Granted
09/10/2019
100%
Mt Boggola
E08/3473
WA
Granted
4/11/2022
100%
Myroodah
Uranium
E04/2895
WA
Application
N/A
Application only
Springvale
E80/6035
WA
Application
N/A
Application only
North Nifty
E45/5506
WA
Granted
03/06/2021
100%
North Nifty
E45/5511
WA
Granted
03/06/2021
100%
Station Creek
E08/2946
WA
Granted
03/12/2018
100%
John Bull
EL 9121
NSW
Granted
04/01/2021
100%
John Bull
EL 8389
NSW
Granted
09/03/2015
90%
Cyclops*
E45/5967
WA
Granted
14/04/2022
100%
Copper Springs
E80/6036
WA
Application
N/A
Application only
Blue Devil
E80/6047
WA
Application
N/A
Application only
Sally Downs
E80/6059
WA
Application
N/A
Application only
* The application of tenement E45/6602 was withdrawn on 30/07/2024; the Harbutt Range tenements E45/5439
and E45/529, and Cyclops tenement E45/5967 were surrendered on 31/07/2024.