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2023 ReportPeers and competitors of Tietto Minerals Limited:
Montrose Environmental GroupFINANCIAL REPORT
FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2022
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Corporate Directory
Chairman’s Message
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
1
2
3
20
34
35
36
37
38
39
76
77
80
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Corporate Directory
Board of Directors
Francis Harper
Caigen Wang
Matthew Wilcox
Hanjing Xu
Paul Kitto
Shaddrack Sowah Adjetey
Non‐Executive Chairman
Managing Director
Executive Director
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director
Company Secretary
Matthew Foy
Registered Office
Unit 22, 123B Collin Street
West Perth WA 6005
Telephone: +61 8 9420 8270
Website: www.tietto.com
Stock Exchange Listing
Listed on the Australian Securities Exchange (ASX Code: TIE)
Auditors
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Solicitors
Allion Partners Pty Limited
Level 9, 863 Hay Street
Perth WA 6000
Share Registry
Automic Pty Ltd
Level 5, 126 Phillip Street
Sydney NSW 2000
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Chairmans Message
Dear Fellow Shareholders,
Welcome to this six‐month, transitional Annual Report for Tietto Minerals Limited (ASX: TIE). It has been a
transformational time for our Company during which we became West Africa’s newest gold producer, with first
gold achieved at our Abujar project in Côte d’Ivoire in January 2023, and it gives me great pleasure to reflect on
our milestones.
We can be incredibly proud of what Tietto has accomplished over the past six months. Led by our Chief Operating
Officer Matt Wilcox, our construction team achieved first gold at Abujar within 12 months of breaking first
ground for the project, which is a phenomenal result. We delivered Abujar fully funded with negligible amount
of debt, besides shareholders’ loan, following capital raising supported by our Shareholders, and we move into
production with zero gold hedging, enabling Tietto to take advantage of a strong gold price environment.
Our goal now is to ramp up to commercial gold production at Abujar, and we will work towards this progressively
over the coming months, building up our run‐of‐mine stockpiles and mill throughput rates to those envisaged in
our project studies.
While achieving gold production at Abujar has been our focus over the past year, we believe this is just the
beginning of our operations. We identified an opportunity to grow our production profile with a second
standalone mine at the Abujar‐Pischon‐Golikro (APG) deposit and completed a Scoping Study, which found a
heap leach gold processing operation at APG could deliver an additional 85,000oz gold per year for 10 years. The
study demonstrated a project post‐tax NPV5% of US$247M and post‐tax IRR of 63% and forecast life of mine
(LOM) revenue of US$1,491M and EBITDA of US$620M with average annual free operating cashflow of US$52M
per year for the first five years of mining operations1. We are completing further metallurgical studies and
engineering design activities to progress our feasibility evaluation of this opportunity.
We executed our “Drill and Build” strategy in 2022, and this meant our drill rigs maintained a solid pace, with
nearly 130,000m of drilling completed by our fleet in calendar year 2022. Drilling mainly focused on extensional
drilling for gold resource growth as well as infill drilling at the AG deposit, and this will lead to an updated Mineral
Resource Estimate (MRE) for the project very soon. We have another 120,000m of drilling planned in CY2023 as
we look to further increase our gold inventory for a larger scale, longer life project. With our fleet of drill rigs
now increased to eight rigs, we continue complete our drilling at some of the lowest costs in the sector, and we
still have plenty of ground to explore along the Abujar gold corridor, which extends for about 70km across three
tenements. Less than 10% has been explored to date.
I take this opportunity to thank all those involved in our build at Abujar, including our contactors, suppliers and
stakeholders who contributed so well to make our goal possible. We set a tight timeframe, particularly given
ongoing impacts to logistics and labour availability, so the fact that we were able to meet this goal is even more
impressive.
I also thank our Board, management team and staff, led by Tietto’s founder and Managing Director Dr Caigen
Wang, who have all contributed towards achieving this goal. Our Shareholders, who believed in our ability to
deliver on our goals and supported our vision to build Abujar without debt, also deserve thanks and we look
forward to rewarding you for this.
Backed by our strong cash position, we will continue to work hard over the next 12 months to position Tietto
Minerals and our Abujar operations for long‐term gold production, delivering value to our Shareholders. Having
set and exceeded ambitious goals to date, we have a clear vision of what we are aiming to achieve over the year
to come, and I look forward to sharing the journey with you.
Francis Harper
Chairman
1 Gold price of US$1750/oz as a base case in scoping study
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Tietto Minerals Ltd (ASX:TIE) reports on its activities for the six‐month period from 1 July 2022 to 31 December
2022 as part of its transition to a calendar year reporting schedule.
ABUJAR GOLD MINE DEVELOPMENT
During the six months of reported operations, Tietto made excellent progress finalising construction of its
3.45Moz Abujar Gold Project in Côte d’Ivoire, West Africa, with first gold poured on 14 January 2023 for 12.89kg
(414 troy oz). Tietto’s inaugural smelt at the Abujar Project was achieved within 12 months of breaking ground.
Figure 1: Tietto Team celebrated Abujar first gold pour on 14th January 2023
1. Construction
Tietto’s construction at Abujar remained on track of its budget and timing schedule.
● Abujar processing plant and tailings storage facility (TSF) fully operational.
● 4.5Mtpa SAG Mill and CIL processing system in wet commissioning.
● All critical spares and reagents on site.
● 90kV transmission line from Daloa completed in February.
● Mining activities commenced and ramping up over coming months.
In January 2023, Tietto announced the Project’s first gold and the milestone of Abujar becoming West Africa’s
newest producing gold mine.
Tietto will continue ramping up to commercial production during the second quarter. Tietto will also progress
the feasibility study on its APG Heap Leach Project to grow the Abujar Project even further to realise its full
potential.
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
A link to the most recent video of construction at Abujar can be viewed here.
Figure 2: Abujar Plant at night
Figure 3: Mining at AG start pit AG Main 2 (AGM2)
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 4: Abujar Plant
Figure 5: ROM, Crusher, CV‐01 and Reclaim
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 6: Tailings Storage Facility (TSF) at the beginning of January 2023
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 7: Water storage dam and diversion channel
Figure 8: Abujar 90kV substation
In January 2023, Tietto announced the Project’s first gold and the milestone of Abujar becoming West Africa’s
newest producing gold mine.
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 9: Abujar first gold pour
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Tietto has been ramping up commercial production during the March 2023 Quarter with arrival of more mining
fleet.
Figure 10: Abujar first gold bar
2.
Exploration
During the 6‐month reporting period, Tietto’s own diamond drilling fleet of eight rigs drilled 67,504m
holes for infilling the AG deposit and defining resources in new prospects within a 10km radius of the
Abujar CIL processing plant. All assay results from these drill programs will be used in the March 2023
Abujar MRE update.
AG Core and AG South
Tietto completed infill drilling inside the DFS design of the AG Main Pit for the purpose of increasing Measured
Resources and bringing all Inferred Resources into the Indicated category. The exercise added more high‐grade
gold intercepts from infill drilling at AG Core on the Main Abujar Shear. Results reported included:
● 12m @ 20.96 g/t Au from 298m incl. 5m @ 48.57 g/t Au (incl. 2m @ 120.21 g/t Au).
● 6m @ 6.36 g/t Au from 329m incl. 4m @ 9.4 g/t Au (ZDD1229 – Section 22).
● 9m @ 8.1 g/t Au from 258m incl. 2m @ 28.64 g/t Au (ZDD1225 – Section 25).
These results came from a batch of 10 holes (seven DD holes for 2,780.5m at AG Core and three DD holes for
274.0m at AG South) from infill diamond drilling. The seven DD holes drilled at AG Core were designed to fill
several drilling gaps at depth and allow conversion of Inferred Resources into Indicated Resources. The three DD
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
holes at AG South were part of the program designed to convert Indicated Resources into Measured Resources
at AG South.
Tietto also announced assay results (16 DD holes for 4,832m) from additional infill and depth extensional
diamond drilling at AG Core and AG South. Better intersections received from diamond drill samples are
summarised in Table 1 below.
Table 1: Significant Intersections from AG Core infill drilling
Hole id
Depth from
Depth to
Length
g/t Au
includes
ZDD1045
84.00
ZDD1045
84.00
ZDD1323
222.00
ZDD1323
251.00
ZDD1349A
642.00
ZDD1354
208.00
ZDD1354
266.00
ZDD1371
171.00
ZDD1371
176.00
ZDD1371
212.00
ZDD1371
255.00
ZDD1388
270.00
86.00
86.00
227.00
267.00
646.00
221.00
278.00
172.50
188.00
223.00
268.00
289.00
2.00
2.00
5.00
16.00
4.00
13.00
12.00
1.50
12.00
11.00
13.00
19.00
6.43
6.43
2.49
1.26
2.67
0.98
2.71
8.05
1.57
1.75
1.72
1m @ 12.3 g/t Au
1m @ 12.3 g/t Au
2m @ 5.56 g/t Au
5m @ 2.55 g/t Au
2m @ 4.73 g/t Au
2m @ 2.55 g/t Au
4m @ 6.9 g/t Au
0.50m @ 23.31 g/t Au
4m @ 2.44 g/t Au
3m @ 4.11 g/t Au
3m @ 5.41 g/t Au
21.94
6m @ 46.62 g/t Au
Tietto has planned and is carrying out further drilling at AG Core to assess the potential below the planned DFS
open pit and test the limits of gold mineralisation, which is still open at depth.
Drilling results from both areas will be incorporated into the next MRE update, expected in Q1 CY23.
South Gamina (SG)
During the period, Tietto added more high‐grade gold intercepts from step‐out drilling with results from the
South Gamina Prospect (SG)(2.5km to Abujar CIL plant):
Assays released on 7/12/2022 included:
2.70m @ 37.88 g/t Au from 61.8m incl. 0.55m @ 184.55 g/t Au (ZDD1440 – Section 56B)
3.00m @ 18.02 g/t Au from 120m (ZDD1415 – Section 61B)
2.50m @ 8.90 g/t Au from 113.5m (ZDD1414 – Section 60B)
1.00m @ 21.75 g/t Au from 68m (ZDD1399 – Section 32B)
Visible gold intersected in ZDD1440 is shown in Figure 12.
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 11: Visible gold in diamond core from ZDD1440 – reported 184.55 g/t Au over 0.55m from 61.8m.
Assays released on 20/09/22 included:
●
4m @ 24.73 g/t Au from 85m incl. 0.50m @ 195.53 g/t Au (ZDD1319 – SG prospect)
● 0.50m @ 48.81 g/t Au from 104.9m (ZDD1311 – SG)
● 5.50m @ 3.81 g/t Au from 81m incl. 3m @ 6.48 g/t Au (ZDD1320 – SG).
High grade gold mineralisation visible in ZDD1319 is shown in Figure 11
Figure 12: Visible gold in diamond core from ZDD1319 interval from 85m to 85.5m which reported 195.53 g/t gold.
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 13: Oblique cross section view showing latest drill results at SG – ZDD1319 (+/‐50m).
AGM – Mandanou Prospect (south of AG)
The AGM Prospect with a 2.2km strike length is a southern extension of the AG Deposit. Limited drilling was
carried out at the AGM Prospect prior to the April 2022 resources update. Since then, Tietto has been carrying
out 3600m of extensional diamond drilling. Resource growth is expected in the next Abujar resource update.
High‐grade drilling intersections reported recently at AGM include:
1m @ 47.35 g/t Au from 258m (ZDD919, ASX 29/06/2022)
6m @ 2.66 g/t Au from 190m incl. 5m @ 3.02 g/t Au (ZDD921, ASX 29/06/2022)
1m @ 27.91 g/t Au from 151m (ZDD1256, ASX 20/09/2022).
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 14: Madanou (AGM) Prospect airmag interpretation and drill hole layout
PGL West Prospect ‐ 3.4km zone of mineralisation immediate west of PGL
The PGL West Prospect is interpreted to occur within a pressure shadow adjacent to a late felsic granite. Gold‐
in‐soil geochemical anomalies (>75ppb), are suggestive of PGL West representing a bending linkage structure
from PGL towards the West Corridor of the Abujar gold system.
Tietto designed a maiden drilling program to test PGL West consisting of 4,985m of diamond holes. Initial drilling
results received recently for the first three sections lines 800m apart included:
ZDD1372: 13.5m @ 2.49 g/t Au from 78m including 7.5m @ 3.75g/t Au from 78m
ZDD1384:
15m @ 1.24g/t Au from 21m and
5m @ 1.75 g/t Au from 50m
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Vingt‐Deux (22) Prospect
The 2.7km long Vingt‐Deux Prospect is part of the Western Corridor of the Abujar gold mineralisation system.
Figure 15: Geological interpretation of Vingt‐Deux (22) within the West Corridor of the Abujar gold mineralisation
system
The Vingt‐Deux Prospect contains significant artisanal workings , highlighting the potential in this underexplored
area.
At Vingt‐Deux, gold mineralisation occurs along a pressure‐shadow related structure created at the contact
between a diorite and a late granite. Tietto is targeting a high‐grade shoot related to a cross‐cutting NE‐ENE fault
which can be identified in magnetic data from analytic signal filtering.
Drilling results at South Gamina, AGM, PGL West, Vingt‐Deux will be incorporated into the next MRE update,
expected in Q1 CY23.
3. APG Scoping Study
A Scoping Study2 confirmed the potential for Tietto to develop a second standalone mine at Abujar’s APG Deposit
via a heap leach gold processing operation.
The study forecasts the APG gold production to average more than 100koz per year for the first three years with
85koz annual gold production forecast over 10 years for 850koz gold recovered from 68Mt at 0.48g/t Au.
The study shows the APG operation could deliver strong financial returns over a 10‐year mine life at an average
production rate of 7.5Mtpa. Gold recovered from an APG heap leach could potentially lift Abujar’s annual
2 Based on April 2022 Resource model
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
production profile to between 260koz to 300koz per year based on the DFS forecast3, adding to gold ores
produced via Abujar’s 4.5Mtpa carbon‐in‐leach plant.
Figure 16: APG HL Scoping Study gold recovered shown by year and cumulatively
The APG study is based on conventional open pit mining with a low strip ratio of 2.4:1 waste to ore. The APG
heap leach project has an estimated pre‐production CAPEX of US$98M (accuracy level of ±35%) with a payback
period of 1.3 years at the study gold price of US$1750/oz.
The Scoping Study demonstrated a project4 post‐tax NPV5% of US$247M and post‐tax IRR of 63% at the study
gold price. It forecasts life of mine (LOM) revenue of US$1,491M and EBITDA of US$620M with average annual
free operating cashflow of US$52M pa for the first 5 years of mining operations.
Tietto plans further metallurgical studies and associated engineering design activities to support preparation for
a detailed feasibility evaluation along with baseline studies to support permitting and the environmental
approval pathway.
3 Refer ASX Announcement dated 5th October 2021
4 Gold price of US$1750/oz as a base case in scoping study
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Figure 17: APG HL Scoping Study conceptual layout
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
4. Next Steps
Tietto has zero gold hedging and delivered its first gold pour at Abujar. The Abujar DFS forecast 260,000oz gold
in its first full year of production2. Tietto is positioned to continue building its resource inventory at Abujar while
ramping up gold production in 2023 as it:
Continues to drive rapid resource growth at the 3.45Moz Abujar Gold Project; and
Increases the gold production profile of the Abujar Gold Project.
The Company is on track to deliver a resource update in April 2023.
CORPORATE
Change of Financial Year End
Tietto resolved to change its financial year end from 30 June to 31 December to align with the reporting
obligations of the Company’s subsidiary, Societe Miniere De La Lobo (SML) SA and all other subsidiaries which
have a financial year end of 31 December.
Following this report, the Company’s annual financial reports will be prepared for a 12‐month period from 1
January to 31 December each year.
The Company will hold an Annual General Meeting (AGM) in respect of the transitional financial year from 1 July
2022 to 31 December 2022, during May 2023.
$49.3 million Placement Agreement with Chijin International (HK) Limited
In September, Tietto entered into a binding placement agreement with Chijin International (HK) Limited, a
subsidiary of Shanghai Stock Exchange listed Chifeng Jilong Gold Mining Co Ltd (Chifeng Gold) for the issue of
85,000,000 new shares at a price of $0.58 per ordinary share to raise $49.3 million.
The Placement price represented an approximate 15% premium to the 20‐day VWAP of the Company's shares
as at 7 September 2022. Upon completion of the Placement Chifeng Gold, together with its associates, held
7.87% interest in the Company.
As reported to the ASX on 10 October 2022, this interest increased to 10.71% following on market purchases
after the Placement. These funds will be used to accelerate studies of the potential heap leach project and
expanded exploration drilling with our growing fleet of eight diamond rigs.
Tietto also granted Chifeng Gold the right to appoint a Non‐Executive Director to the Board within 90 days of
completion of the Placement. Subsequently, Tietto advised that Mr Shaddrack Adjetey Sowah had been
appointed Non‐Executive Director of the Company.
Annual General Meeting
Tietto held its Annual General Meeting of shareholders in November 2022, where all resolutions put to the
meeting were carried out on a poll. Details of the resolutions are contained in the announcement dated 22
November 2022.
Cash position
Tietto had $47.0 million cash at bank at 31 December 2022. This cash position includes a short‐term unsecured
loan of US$8M entered into during the Quarter to support the APG Heap Leach Study (Loan). The Loan has a six‐
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
month term and accrues interest at a rate of 8% per annum. In addition, the Company will issue 4,000,000
options exercisable at $0.80 expiring 31 December 2025 to the lenders in connection with the Loan.
Competent Persons’ Statements
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Mark Strizek (resigned on 20
March 2023), a Competent Person who is a Member or The Australasian Institute of Mining and Metallurgy. Mr Strizek is an executive director of the Company.
Mr Strizek has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking
to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves”. Mr Strizek consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
Additionally, Mr Strizek confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases
referred to in this report.
The information in this presentation that relates to Mineral Resources was prepared by RPM Global and released on the ASX platform on 11 April 2022. The
Company confirms that it is not aware of any new information or data that materially affects the Minerals Resources in this publication. The Company confirms
that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms
that the form and context in which the RPM Global’s findings are presented have not been materially modified.
The information in this report that relates to Mineral Resources is based on information evaluated by Mr Jeremy Clark who is a Member of The Australasian
Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves”. Mr Clark is an associate of RPM and he consents to the inclusion of the estimates in the report of the Mineral
Resource in the form and context in which they appear.
The information in this report that relates to Ore Reserves was prepared by RPM and released on the ASX platform on 5 October 2021. The Company confirms
that it is not aware of any new information or data that materially affects the Ore Reserves in this publication. The Company confirms that all material
assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The Company confirms that the form and
context in which the RPM findings are presented have not been materially modified
The information in the report that relates to Ore Reserves for the Abujar Gold Project is based on information compiled and reviewed by Mr. Igor Bojanic, who is
a Fellow of the Australasian Institute of Mining and Metallurgy, and is an employee of RPM. Mr. Igor Bojanic has sufficient experience, which is relevant to the
style of mineralisation and type of deposit under consideration and to the activity, which he has undertaken to qualify as a Competent Person, as defined in the
2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr. Igor Bojanic is not aware of any potential for a conflict of
interest in relation to this work for the Client. The estimates of Ore Reserves presented in this Statement have been carried out in accordance with the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (30 September, 2021).
Compliance Statement
This report 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") and available for viewing at www.tietto.com. Includes results reported previously
and published on ASX platform, 16 January 2018, 27 March 2018, 23 April 2018, 8 May 2018, 7 June 2018, 4 October 2018, 1 November 2018, 28 November
2018, 31 January 2019, 26 February 2019, 12 March 2019, 19 March 2019, 9 April 2019, 9 May 2019, 30 May 2019, 9 July 2019, 26 July 2019, 2 October 2019,
24 October 2019, 12 December 2019, 23 January 2020, 20 February 2020, 10 March 2020, 24 March 2020, 2 April 2020, 9 April 2020, 23 April 2020, 3 June 2020,
9 June 2020, 25 June 2020, 2 July 2020, 21 July 2020 20 July 2020, 29 July 2020, 19 August 2020, 9 September 2020, 24 September 2020, 26 October 2020, 11
December 2020, 18 January 2021, 12 February 2021, 23 February 2021, 23 March 2021, 6 April 2021, 8 April 2021, 20 April 2021, 3 May 2021, 6 May 2021, 11
May 2021, 21 May 2021, 27 May 2021, 11 June 2021, 16 June 2021, 12 July 2021, 10 September 2021, 22 September 2021, 5 October 2021, 13 October 2021, 21
October 2021, 8 November 2021, 12 November 2021, 16 November 2021, 22 November 2021, 30 November 2021, 10 December 2021, 22 December 2021, 18
January 2022, 20 January 2022, 24 January 2022, 7 February 2022, 14 February 2022, 18 February 2022, 25 February 2022, 15 March 2022, 29 March 2022, 11
April 2022, 29 April 2022, 4 May 2022, 16 May 2022, 24 May 2022, 8 June 2022, 10 June 2022, 14 June 2022, 29 June 2022, 4 July 2022, 12 July 2022, 14 July
2022, 21 July 2022, 28 July 2022, 1 August 2022, 17 August 2022, 1 September 2022, 12 September 2022, 14 September 2022, 20 September 2022, 29 September
2022, 4 October 2022, 11 October 2022, 26 October 2022, 10 November 2022, 11 November 2022, 22 November 2022, 24 November 2022, 7 December 2022,
12 December 2022, 16 December 2022, 3 January 2023 and 20 March 2023. The Company confirms that all material assumptions and technical parameters
underpinning the Mineral Resources and Ore Reserves continue to apply and have not materially changed. The Company confirms that it is not aware of any new
information or data that materially affects the information included in the previous announcements.
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Review of Operations
Forward Looking Statements
Some statements in this document may be forward‐looking statements. Such statements include, but are not limited to, statements with regard to capacity,
future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects,
projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic
recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”,
“believe” and “envisage”. By their nature, forward‐looking statements involve risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future and may be outside Tietto Minerals’ control. Actual results and developments may differ materially from those expressed or implied
in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the
impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant
areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
Schedule of Tenements as at 31 December 2022
Tenement ID
Status
Côte d’Ivoire
Interest at
beginning of
quarter
Mining
Abujar Middle3 – Mining
Granted
88%
Exploration
Granted
Granted
15%
90%
Granted
100%
Abujar North1
(Zahibo License)
Abujar Middle2
(Zoukougbeu License)
Abujar South
(Issia License)
Bongouanou North
Bongouanou South
Granted
Granted
50%
50%
Interest acquired or
disposed
Interest at 31
December 2022
‐
‐
‐
‐
‐
‐
88%
15%
90%
100%
50%
50%
Two Boundiali tenements
In application
1.
2.
3.
Tietto has the right to acquire up to a 80% interest in the Abujar North Exploration License.
Tietto has 90% share capital of Tiebaya Gold which holds 100% interest of the Abujar Middle Exploration License
Tietto has 88% interest in the newly granted mining licence according to its JV agreement with local partners.
Liberia
Dube South
Cestos Project
Compound 4 Gold Project
Fish Town Lithium Project
Granted
Granted
Granted
Granted
100%
100%
100%
100%
‐
‐
‐
‐
100%
100%
100%
100%
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TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
The Directors of Tietto Minerals Limited herewith submit the financial report of the Company consisting of Tietto
Minerals Limited ("Tietto or the Company") and its controlled entities ("the Group") for the 6 months period
ended 31 December 2022. In order to comply with the provisions of the Corporations Act 2001, the Directors'
Report follows:
DIRECTORS
The names of the Directors of the Company who have held office during and since the end of the financial period
and until the date of this report are noted below. Directors were in office during and since the end of the financial
period unless otherwise noted.
Francis Harper
Caigen Wang
Mark Strizek
Matthew Wilcox
Hanjing Xu
Paul Kitto
Shaddrack Sowah Adjetey
Non‐Executive Chairman
Managing Director
Executive Director (resigned on 20 March 2023)
Executive Director (appointed on 20 March 2023)
Non‐Executive Director
Non‐Executive Director
Non‐Executive Director (appointed on 24 October 2022)
INFORMATION ON DIRECTORS AND COMPANY SECRETARY
The names and particulars of the Company’s Directors in office during the financial period and at the date of this
report are as follows. Directors held office for this entire period unless otherwise stated.
Name
Title
Experience and expertise
Name
Title
Experience and expertise
Mr Francis Harper
Non‐Executive Chairman (appointed on 19 July 2017)
Mr Harper is the chairman of Tietto. He has been a Director of Blackwood
Capital since 2002 and prior to that spent 15 years with NM Rothschild in
the US, UK and Australia in M&A and resources finance. Blackwood Capital
has raised over $1 billion for small caps since inception. Mr Harper (through
Blackwood Capital) financed West African Resources (ASX: WAF) and was
Chairman from 2009 to 2015.
Directorships held in the last three financial years: Predictive Discovery
Limited.
Dr Caigen Wang
Managing Director (appointed on 5 May 2010)
Dr Wang founded Tietto in 2010 following a long career as a mining engineer
and mine manager in Australia and China, and, early in his career, 2 years at
University of Alberta, Canada, 5 years at the Western Australian School of
Mines in Kalgoorlie and 7 years before that at China University of Mining and
Technology. Dr Wang is a fellow of AusIMM.
From 2009 to 2011 Dr Wang was CEO of ASX listed Ishine Resources, which
had multiple Australian exploration projects, and from 2008 to 2009 Dr Wang
was Mine Manager/General Manager of Hunan Westralian, managing five
small producing and three development gold mines in China. From 2007 to
2008 Dr Wang was Senior Mine Planning Engineer at St Barbara’s Southern
Cross Operations. From 2004 to 2007 Dr Wang was Senior Geomechanics
Engineer for BHP at its Leinster Nickel Operations (Nickel West). From 2003
to 2004 Dr Wang was Senior Geotechnical Engineer at Sons of Gwalia’s
Southern Cross Operations.
20
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
INFORMATION ON DIRECTORS AND COMPANY SECRETARY (CONT.)
Name
Title
Experience and expertise
Dr Wang has been responsible for all of Tietto’s project acquisition, daily
operations of the Company’s business and project development.
Listed Directorships held in the last three years: N/A
Mark Strizek
Non‐Executive Director (appointed on 19 July 2017), Executive Director
(appointed 1 January 2020 – resigned on 20 March 2023)
Mr Strizek is a resource industry professional with over 20 years in the industry
with experience in gold, base and technology metal projects. Mr Strizek has
worked as an executive with management and Board responsibilities in
exploration, feasibility, finance and development ready assets across Australia,
West Africa, Asia and Europe. Mr Strizek was Managing Director of Vital Metals
Limited, an ASX listed company from 2011 to 2019.
Listed Directorships held in the last three years: N/A
Name
Title
Experience and expertise
Hanjing Xu
Non‐Executive Director (appointed on 4 August 2017)
Mr Xu has enjoyed a successful career in the natural resources industry over
the last 25 years.
The unique characteristic of his career is that he has been a top decision making
executive in both Chinese state‐owned conglomerates and internationally
listed mining companies. Examples include his roles as President of the
Australian Branch of China National Nonferrous Metals and Export Corporation
(CNIEC), President of CNIEC, Director of Foreign Affairs Bureau, China National
Nonferrous Metals Industry Corporation (CNNC), Executive Director of Sino
Gold Mining Ltd and Managing Director of Eldorado Gold China. His knowledge
of China was instrumental to the success of Sino Gold.
Mr Xu has a university graduation certificate in English from Chengdu
University of Electronic Science and Technology. Prior to joining CNNC Hanjing
worked as a teacher of English and editor of China Greater Encyclopedia
Publishing House.
Mr Xu led China and CNNC in its launch into the international resource industry
with a number of first breakthroughs in Chinese mining industry, including first
trade investment in alumina of Alcoa, first international project finance for
mining in China and first international company mining in China. He was a
keynote speaker at the opening session of Prospectors and Developers
Association of Canada 2010 in Canada. He is now actively involved in research
on Chinese mining reform and regarded as a leading authority in this area.
In November 2012, Mr Xu successfully published a book in Chinese, “Mining
And The World”. The book sets a growth theory of mining which in turn
illustrates the growth history of world economies, politics and cultures. He is
now a visiting professor of China Mining and Geology University and a Fellow
Member of Specialist Committee of China Nonferrous Metals Association.
Listed Directorships held in the last three years: N/A
21
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
Name
Title
Experience and expertise
Dr Paul Kitto
Non‐Executive Director (appointed on 22 January 2019)
Dr Kitto has more than thirty years experience within the mining industry
serving on a number of Board of Directors and holding senior management
positions in various countries around the world predominantly in Australasia
and Africa.
Dr Kitto was Exploration Manager, West Africa for Newcrest Mining Ltd from
2015 – 2019, and prior to that was CEO of Ampella Mining Ltd from 2008 until
2014 when Ampella was acquired by Centamin PLC. Dr Kitto led Ampella in
discovering and growing the 3.25 million oz Konkera resource at the Batie
West Project in Burkina Faso.
Listed Directorships held in the last three years: Meteoric Resources NL,
Peako Limited, Resolution Minerals Ltd.
Dr Kitto has also led or been part of the exploration teams whose research
resulted in the discovery of numerous multi‐millions of ounces of gold in
Africa, Australia and Papua New Guinea. Dr Kitto has extensive experience
associated with a wide range of deposit types predominantly associated with
gold and base metals.
Name
Title
Experience and expertise
Shaddrack Sowah Adjetey
Non‐Executive Director (appointed on 24 October 2022)
Mr Adjetey Sowah is currently Vice President and Manager Director of
Golden Star Resources, a subsidiary of Chifeng Gold Group which operates
the Wassa Gold Mine in Ghana, West Africa.
Name
Title
Experience and expertise
Mr Adjetey Sowah is a chartered accountant and has over thirty years’
experience primarily in the mining industry. Mr Adjetey Sowah has in‐depth
knowledge and experience in both surface and underground mining,
metallurgical processes, geology – both resource and grade control and
engineering.
Listed Directorships held in the last three years: N/A
Matthew Wilcox
Executive Director (appointed on 20 March 2023)
Mr Wilcox directly managed the construction of West African’s (ASX: WAF)
300,000ozpa Sanbrado Gold Mine, which was completed in March 2020,
ahead of schedule and under budget. He is highly experienced in the gold
mining construction industry in West Africa, having spent the prior eight
years working for Nord Gold, which operates nine gold mines globally,
including three mines in Burkina Faso and one mine in Guinea.
Prior to his role at West African, Mr Wilcox was Project Director for the
construction of Nord Gold’s 4Mtpa Bissa Gold Project and 8Mtpa Bouly Gold
Project, both located in Burkina Faso. He was General Manager of the 6Mtpa
LEFA Gold Project in Guinea, and prior to joining West African was Project
Director for the construction of the 12Mtpa Gross Gold Project in Siberia,
Russia.
Listed Directorships held in the last three years: N/A
22
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
COMPANY SECRETARY
Matthew Foy
Mr Foy is a chartered secretary and Fellow of Governance Institute Australia (GIA). Mr Foy is a professional
company secretary and director with over 15 years’ experience facilitating public company compliance with core
strengths in the ASX Listing Rules, transactional and governance disciplines.
PRINCIPAL ACTIVITIES
The principal activities of the group are gold exploration in West Africa, specifically Cote d’Ivoire and Liberia.
During the 6 months ended 31 December 2022 the Group continued gold exploration drilling on its exploration
licences and completed development of the Abujar Gold Mine in Cote d’Ivoire.
REVIEW OF OPERATIONS
A review of the Group’s projects and activities during the year is discussed in the Operations Review included in
this report.
The loss of the Group after income tax for the 6 months ended 31 December 2022 was $17,630,160 (year ended
30 June 2022: $46,594,459).
DIVIDENDS
No dividends were paid or declared since the start of the financial period. No recommendation for the payment
of dividends has been made.
DIRECTORS' SHAREHOLDINGS
The shareholding of each Director as at the date of this report are as below
Directors
Francis Harper
Caigen Wang
Hanjing Xu
Paul Kitto
Shaddrack Sowah Adjetey
Matthew Wilcox
Ordinary Shares
No.
Options
No.
Performance
Rights
No.
15,330,530
25,925,637
6,047,789
5,500,000
‐
256,411
53,060,367
‐
‐
‐
‐
‐
2,000,000
2,000,000
600,000
2,500,000
500,000
500,000
‐
2,500,000
6,600,000
REMUNERATION OF DIRECTORS AND KEY MANAGEMENT PERSONNEL
Information about the remuneration of Directors and Key Management Personnel is set out in the
Remuneration Report of this Directors’ Report.
SHARE OPTIONS GRANTED TO DIRECTORS AND KEY MANAGEMENT PERSONNEL
There were no share options or performance rights issued to any Key Management Personnel of the Group as
part of their remuneration since the end of the financial period.
CHANGES IN STATE OF AFFAIRS
During the 6 months ended 31 December 2022, the Company raised $49.3 million through the placement of
85,000,000 fully paid ordinary shares at A$0.58 per share to strengthen Abujar project working capital reserve,
accelerate studies of the APG potential heap leach project and expanded exploration drilling with our growing
fleet of eight diamond rigs.
23
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
During the period the Group continued gold exploration drilling on its exploration licences and completed
development of the Abujar Gold Mine in Cote d’Ivoire .
There were no other significant changes in the state of affairs of the Group during the year.
EVENTS SUBSEQUENT TO REPORTING DATE
On 13 January 2023, 7,000,000 shares were issued on conversion of options expiring 22 January 2023 with an
exercise price of $0.30.
On 23 January 2023, 1,000,000 shares were issued on conversion of options expiring 22 January 2023 with an
exercise price of $0.30.
On 20 February 2023, 4,000,000 options were issued, which are exercisable at $0.80 and expire on 31 December
2024.
On 20 March 2023 Mark Strizek resigned as a director of the Company. On the same date, Chief Operating Officer
Matthew Wilcox was appointed as Executive Director.
On 28 March 2023, the maturity of the loans from Kongwell Management Limited and Dr. Minlu Fu (as disclosed
in note 21 to the financial statements) was extended from 6 months to 9 months.
There has not been any other matter or circumstance occurring subsequent to the end of the financial year that
has significantly affected, or may significantly affect the operations of the Group, the results of those operations,
or the state of affairs of the Group in future financial periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Disclosure of information regarding the likely developments in the operations of the Group in future financial
period and the expected results of those operations is likely to result in unreasonable prejudice to the Group.
Accordingly, this information has not been disclosed in this report.
SAFETY AND ENVIRONMENTAL REGULATIONS
Tietto is committed to sound environmental management through the incorporation of environmental
considerations into business decisions at all stages. A comprehensive environmental and social impact
assessment (‘ESIA’) is completed on all projects during the permitting process. This enables Tietto to apply the
impact mitigation hierarchy to avoid, minimise and mitigate negative environmental impacts, and improve
environmental outcomes. Environmental management and monitoring continue throughout the life of the
project, guided by the Environmental and Social Management System, aligned with ISO 140001 and Tietto’s
Environmental and Social Management and Monitoring Plan (ESMMP) developed in accordance with
international industry practices and standards. Revegetation and rehabilitation take place on a continuous basis
to reduce prolonged disturbance to the natural environment and to ensure that planned post closure outcomes
for the environment and the community are achieved.
Tietto recognises that tailings storage facilities (TSFs) are important infrastructure that must be considered high
risk. The TSF at Abujar was constructed supervised by Tietto to comply with Global Industry Standard on Tailings
Management (GISTM; 2020). The 2022 construction report by our designer of record identified no major issues.
The Company utilises a geotechnical engineering consultant to fulfill the Standard’s requirement for a
Responsible Tailings Facility Engineer. This position focuses on supervising the progressive development of the
TSF, including material management and wall and liner integrity.
Safety
Tietto has worked hard to implement a world class safety system at the Abujar mine. Tietto recorded a single
LTI for over 2.5M manhours worked during 2022, when a contract truck driver slipped when exiting a truck and
24
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
fractured his femur. There were no other significant health or safety incidents during the year, and Tietto’s 2022
annual LTIFR (Lost time injury Frequency Rate) was 0.4 per million manhours.
Health
Tietto has a fully staffed and functional clinic on site to look after the health and wellbeing of its workforce.
PROCEEDINGS ON BEHALF OF THE GROUP
No persons have applied for leave pursuant to section 237 of the Corporation Act 2001 to bring, or intervene in,
proceedings on behalf of the Group.
SHARE OPTIONS
Share options outstanding at the date of this report:
Type
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Number
2,000,000
300,000
3,200,000
5,000,000
3,500,000
4,000,000
Grant date
22/03/2021
14/01/2021
17/01/2022
4/02/2022
1/07/2022
14/12/2022
Expiry date
21/05/2024
01/08/2024
17/01/2025
4/02/2025
17/01/2025
31/12/2024
Exercise
price
$
0.39
0.62
0.41
0.62
0.53
0.80
Fair value at
grant date $
0.23
0.37
0.209
0.218
0.120
0.280
The holders of such options do not have the right, by virtue of the option, to participate in any share or other
interest issue of any other body corporate or registered scheme.
Shares issued on the exercise of options
During the 6 month period, 4,200,000 ordinary shares were issued on the exercise of 4,200,000 options at
$0.1725. Refer to Note 14 (iii) (a) for the detailed movement of options.
Share options that expired/lapsed
No share options expired or lapsed during or since the end of the financial period.
PERFORMANCE RIGHTS
Performance rights outstanding at the date of this report:
Class
Number
Grant date
Expiry date
Class B
Tranche 1
Class B
Tranche 2
Class E
Class F
Class G
Class H
Class I
Class J
6,600,000
22/10/2020
22/12/2023
150,000
1,500,000
1,000,000
100,000
1,500,000
1,600,000
1,600,000
22/10/2020
14/1/2021
14/1/2021
22/3/2021
30/11/2021
17/1/2022
17/1/2022
22/12/2023
21/5/2024
21/5/2024
1/8/2024
30/11/2024
17/1/2025
17/1/2025
Exercise
price
$
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Fair value at
grant date
(cents)
20.65
25.96
41.00
41.00
37.00
45.00
46.50
46.50
25
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
The holders of the performance rights do not hold any voting rights or rights to participate in dividends unless
the rights have vested and were converted to fully paid ordinary shares.
Shares issued on vesting of performance rights
100,000 shares were issued during the period upon the vesting of performance rights. Refer to Note 13 of the
Notes to the Consolidated Financial Statements for further details on the shares issued.
Performance rights that expired/lapsed
During the 6 month period, 5,400,000 performance rights expired. Refer to Note 14 (iii) (a) for the detailed
movement of options.
DIRECTORS' MEETINGS
The following table sets out the number of directors’ meetings (including meetings of committees of directors)
held during the relevant financial period (1 July 2022 – 31 December 2022) and the number of meetings attended
by each director (while they were a director or committee member).
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Shaddrack Sowah Adjetey
Directors' Meetings
Attended
2
2
2
2
2
2
Eligible to attend
2
2
2
2
2
2
Audit Committee Meetings
Eligible to attend
1
N/A
N/A
N/A
1
1
Attended
1
N/A
N/A
N/A
1
1
INDEMNIFICATION OF DIRECTORS AND AUDITORS
During or since the end of the financial period the Company has given an indemnity or entered into an agreement
to indemnify, or paid or agreed to pay insurance premiums as follows:
-
except as may be prohibited by the Corporations Act 2001 a Director or Officer of the Company shall
be indemnified out of the property of the Company against any liability incurred by him in his capacity
as Director or officer of the Company or any related corporation in respect of any act or omission
whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal.
Since the beginning of the 6 month period, the Company has paid insurance premiums of $32,000 (2022:
$43,000) in respect of Directors and Officers liability and corporate reimbursement, for Directors and Officers in
the Company. The insurance premiums relate to:
(cid:1)
(cid:1)
costs and expenses incurred by the relevant Officers in defending proceedings, whether civil or criminal
and whatever the outcome; and
other liabilities that may arise from their position, with the exception of conduct involving a wilful
breach of duty.
The Company has not, during or since the end of the financial period, indemnified or agreed to indemnify the
auditor of the company or any related entity against liability incurred by the auditor.
During the 6 month period, the Company has not paid a premium in respect of a contract to insure the auditor
of the Company or any related entity.
26
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
NON‐AUDIT SERVICES
During the 6 months period ended 31 December 2022 and year ended 30 June 2022 there were no non‐audit
services provided by the Company’s external auditor BDO Audit (WA) Pty Ltd as disclosed in Note 17.
AUDITOR'S INDEPENDENCE DECLARATION
Section 307C of the Corporations Act 2001 requires our auditors, BDO Audit (WA) Pty Ltd, to provide the
Directors of the Company with an Independence Declaration in relation to the audit of the Annual Report. This
Independence Declaration is set out on page 34.
REMUNERATION REPORT (AUDITED)
This report, which forms part of the Directors’ Report, outlines the remuneration arrangements in place for the
Key Management Personnel of Tietto Minerals Limited (the “Company”) for the 6 month period ended 31
December 2022.
The information provided in this remuneration report has been audited as required by Section 308(3C) of the
Corporations Act 2001.
The Remuneration Report details the remuneration arrangements for Key Management Personnel(“KMP”) who
are defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of the Company and the Group, directly or indirectly, including any Director (whether Executive or
otherwise) of the parent Company.
The prescribed details for each person covered by this report are detailed below under the following headings:
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
(cid:1)
Key Management Personnel details;
remuneration policy and relationship between the remuneration policy and Company performance;
key terms of employment contracts;
remuneration of Key Management Personnel ;
Key Management Personnel equity holdings;
transactions with related parties; and
loans with related parties.
Key management personnel details
The key management personnel of Tietto Minerals Limited during the period or since the end of the period were:
Francis Harper (appointed 19 July 2017)
Non‐Executive Chairman
Caigen Wang (appointed on 5 May 2010)
Managing Director
Mark Strizek (appointed 1 January 2020, resigned 20
March 2023)
Executive Director, previously Non‐Executive Director
(resigned 31 December 2019)
Hanjing Xu (appointed 4 August 2017)
Non‐Executive Director
Paul Kitto (appointed 22 January 2019)
Non‐Executive Director
Shaddrack Sowah Adjetey (appointed 24 October 2022)
Non‐Executive Director
Ting Xu (joined 1 April 2022)
Chief Financial Officer (CFO)
Matthew Wilcox (appointed 1 February 2021)
Chief Operating Officer (COO)
Executive Director (appointed 20 March 2023)
27
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
Remuneration policy and relationship between the remuneration policy and Company performance
The Board policy for determining remuneration is based on the principle of remunerating Directors and Senior
Executives on their ability to add value to the Company (taking into account the Company’s strategic plan and
operations) whilst also considering market remuneration packages for similar positions within the industry. No
external consultants were engaged during the current or prior financial periods to review the Company's existing
remuneration policies.
In this regard the Company has put in place additional long term incentives for senior management that relate
to the safe and successful construction of Abujar Gold Mine as well as achieving name plate capacity of the
mill. At the Board level, shareholders most recently approved long term incentives at the 2020 Annual General
Meeting for Directors that relate to specific share price milestones that are a proxy for Company performance.
The Board appreciates the interrelationship between this policy and Company performance. It acknowledges
that it is in the best interests of shareholders to provide challenging but achievable incentives to reward Senior
Executives for reaching the Company’s stated goals. The Board will discuss these issues internally and with
candidates prior to engaging additional directors or Senior Executives in the future.
The Remuneration Committee (presently comprised of the full Board) is responsible for determining the
remuneration policies for the Group, including those affecting executive Directors and other key management
personnel. The Committee may seek appropriate external advice to assist in its decision making. Remuneration
policies and practices are directed primarily at attracting, motivating and retaining Key Management Personnel.
The remuneration policy for Directors and other Key Management Personnel has the following key elements:
Fixed Remuneration
Fixed remuneration includes base salaries received, payments made to superannuation funds, the taxable value
of non‐monetary benefits received and any once‐off payments such bonuses or termination benefits, see
'Remuneration of Key Management Personnel' table for details.
Short‐term incentives
There were no bonuses which were awarded to Key Management Personnel that were paid for the 6 months
period ended 31 December 2022.
Non‐Executive Directors' fee pool limit is $400,000 per annum as approved by Shareholders at the Annual
General Meeting held on 22 November 2022.
Long‐term incentives
The value of options granted and vested during the current and previous financial years was determined using
the Black‐Scholes option pricing model that takes into account the exercise price, the term of the option, the
impact of dilution, the share price at valuation 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.
The primary purpose of the issue of long‐term incentives is to provide a performance linked incentive
component in the remuneration package for the Eligible Participants to motivate and reward the performance
of the Eligible Participants in their respective roles.
The value of performance rights are determined using the spot share price at grant date of respective
performance rights and taking into account the terms and conditions upon which the instruments were granted.
No performance rights was granted to the KMPs during the six month period.
28
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
Statutory performance indicators
We aim to align our Executive remuneration to our strategic and business objectives and the creation of
shareholder wealth. The table below shows measures of the Group’s financial performance over the last five
periods as required by the Corporations Act 2001. However, these are not necessarily consistent with the
measures used in determining the variable amounts of remuneration to be awarded to Key Management
Personnel. As a consequence, there may not always be a direct correlation between the statutory key
performance measures and the variable remuneration awarded.
Statutory performance indicators of the Group over the last five financial periods
Dec 2022
(6 months)
June 2022
(12 months)
June 2021
(12 months)
June 2020
(12 months)
June 2019
(12 months)
Loss for the year attributable to
the owners of Tietto Minerals
Limited
(16,743,802)
(46,149,579)
(19,590,381)
(12,495,098)
(9,899,430)
Loss per share (cents)
(1.62)
(7.14)
(4.51)
(4.02)
(4.32)
Share price at the beginning of
the period ($)
Share price at the end of the
period ($)
0.31
0.71
0.30
0.31
0.49
0.30
0.17
0.49
0.12
0.17
Key terms of Executive employment contract
Remuneration and other terms of employment for the Managing Director, Dr Caigen Wang are formalised in a
consultancy agreement with Multiple Resources Pty Ltd. Major provisions of this agreement are set out below:
(cid:1)
(cid:1) Monthly consultancy fee of $33,333 (excluding GST) for the provision of at least 230 days per year.
Multiple Resources Pty Ltd and Dr Wang are not entitled payment by the Company of salary, holiday
pay, sick pay, or severance pay which an employee has in respect of his employment.
At the Company’s discretion and subject to obtaining applicable regulatory approvals, Multiple
Resources Pty Ltd is entitled to a performance‐based bonus over and above the consultancy
fee. Multiple Resources Pty Ltd is also entitled to reimbursement of reasonable expenses and
expenditure.
The Company may also terminate the Consultancy Agreement by giving 6 months’ written
notice. Multiple Resources Pty Ltd may also terminate the Consultancy Agreement without cause by
giving 6 months’ written notice.
(cid:1)
Remuneration and other terms of employment for the Executive Director, Mr. Mark Strizek are set out below:
Base salary of $300,000 from 1 April 2021.
(cid:1)
(cid:1) Mr Strizek is entitled to payment by the Company of salary, holiday pay, sick pay, severance pay, long
(cid:1)
service leave or any other entitlement which an employee has in respect of his employment.
The Agreement may be terminated by the employee by giving the Company three months written
notice. The Company may also terminate at any time by giving the employee three month's written
notice.
29
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
Remuneration and other terms of employment for the Chief Operating officer, Matthew Wilcox are set out
below:
(cid:1)
(cid:1)
(cid:1)
Base salary of $525,000 per year effective 1 February 2021
The Agreement may be terminated by giving the Company 3 months’ notice.
The following share based payment form part of the remuneration package
(i)
(ii)
2,000,000 options each exercisable at $0.41, subject to 3 year continuous employment
2,500,000 performance rights subject to vesting conditions associated with performance of the
Abujar Project.
Remuneration and other terms of employment for the Chief Financial officer, Ting Xu are set out below:
(cid:1)
(cid:1)
(cid:1)
Base salary of $180,000 per year effective 1 April 2022
The Agreement may be terminated by giving the Company 2 months’ notice.
The following share based payment form part of the remuneration package
(i)
(ii)
(iii)
300,000 options each exercisable at $0.62 on or before the date that is three years from the date
of the Probation Period.
1,000,000 options each exercisable at $0.53
200,000 performance rights that vest up to maximum of 100,000 shares per year, subject to
continuous employment with the Company and KPIs. KPIs include implementation of the ERP
accounting system, on time lodgment of the annual and half year report, successful management
of Chinese drilling staff and logistic supply related payments and accounting and successful
coordination of accounting management of subsidiary company’s accounting practice.
Key terms of Non‐Executive Directors contracts:
Francis Harper : fee of $100,000 per year plus 11% superannuation.
(cid:1)
(cid:1) Hanjing Xu: fee of $60,000 per year plus 11% superannuation.
(cid:1)
(cid:1)
Paul Kitto: fee of $1,500 per day plus GST.
Shaddrack Sowah Adjetey: fee of $60,000 per year.
Remuneration of key management Personnel
Fixed Remuneration
Variable
Remuneration
01 Jul 22
to
31 Dec 22
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Shaddrack Sowah
Adjetey
Executive KMP
Matthew Wilcox
Ting Xu
Salary
and
fees
$
50,000
200,000
150,000
30,000
36,000
11,667
262,500
90,000
830,167
Super‐
annuation
$
Other
$
Share‐based
payments1
$
Performance
related
$
%
Performance
related
Total
$
97,521
371,368
205,106
67,574
70,274
42,021
171,368
38,606
34,274
34,274
42,021
171,368
38,606
34,274
34,274
‐
11,667
‐
715,539
440,539
238,128
138,678
899,759 1,777,176
440,539
138,678
899,759
5,500
‐
16,500
3,300
‐
‐
12,500
9,450
47,250
‐
‐
‐
‐
‐
‐
‐
‐
‐
43%
46%
19%
51%
49%
0%
62%
58%
30
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
1. Relates to 11,900,000 Class A and B Performance Rights issued on 24 November 2020 to Messrs. Harper,
Wang, Strizek, Xu and Kitto, 1,500,000 Class H Performance Rights issued on 30 November 2021 to Mr.
Strizek, 2,500,000 Tranche E and F Performance Rights issued on 14 January 2021 to Matthew Wilcox,
300,000 unlisted options issued to Ting Xu on 22 March 2021 and 3,500,000 unlisted options issued on Ting
Xu on 1 July 2022. In the current year 1,000,000 options were issued on 1 July 2022 to Ting Xu.
Fixed Remuneration
Variable
Remuneration
01 Jul 21
To
30 Jun 22
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Executive KMP
Matthew
Wilcox
Ting Xu
Salary
and
fees
$
100,000
400,000
300,000
60,000
72,000
525,000
161,253
1,618,253
Super‐
annuation
$
Other
$
Share‐based
payments2
$
Performance
related
$
%
Performance
related
Total
$
196,361
749,204
843,201
136,441
141,841
85,361
349,204
510,201
69,841
69,841
85,361
349,204
510,201
69,841
69,841
573,667
37,000
1,695,115
1,123,667
573,667
214,378
3,405,093
37,000
1,695,115
11,000
‐
33,000
6,600
‐
25,000
16,125
91,725
‐
‐
‐
‐
‐
‐
43%
47%
61%
51%
49%
51%
17%
2. Relates to 11,900,000 Class A and B Performance Rights were issued on 24 November 2020 to Messrs.
Harper, Wang, Strizek and Xu, 2,500,000 Tranche E and F Performance Rights issued on 14 January 2021 to
Matthew Wilcox, 200,000 Tranche G Performance Rights issued to Ting Xu; 2,000,000 unlisted options
issued to Matthew Wilcox on 14 January 2021 and 300,000 unlisted options issued to Ting Xu on 22 March
2021. 1,500,000 Class H Performance Rights were issued on 30 November 2021 to Mark Strizek.
Terms and conditions of share‐based payment arrangements ‐ Performance Rights ("PR")
There were no Performance Rights issued during the 6 month period.
Terms and conditions of share‐based payment arrangements – Options
The terms and conditions for each grant of options affecting remuneration in the current or a future reporting
period are as follows:
Number
1,000,000
Grant date
1‐Jul‐22
Expiry date
1‐Jul‐25
1
Share price
at grant
date
$0.34
Fair value
at grant
date
Vested
100%
$0.12
Value
$120,000
On 1 July 2022, the Company granted 1,000,000 options to Chief Finance Officer, exercisable at $0.53 pursuant
to the Company’s Long Term Incentive Plan.
31
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
Voting and comments made at the Company's 2022 Annual General Meeting
At the 2022 Annual General Meeting the Company remuneration report was passed by a 87.75% requisite
majority of shareholders.
Key management personnel equity holdings
Fully paid ordinary shares of Tietto Minerals Limited
Exercise of
Performance
Rights/
Options
No.
Purchased/
(Sold)
during the
year 1
No.
Balance on
resignation
No.
Balance at
31 Dec
2022
No.
Granted on
compensation
No.
Balance at
1 July 2022
No.
15,330,530
25,925,637
3,271,635
6,047,789
4,500,000
‐
Dec 2022
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Shaddrack Sowah
Adjetey
Executive KMP
Matthew Wilcox
Ting Xu1
256,411
‐
55,332,002
‐
100,000
100,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐ 15,330,530
‐ 25,925,637
‐ 3,271,635
‐ 6,047,789
‐ 4,500,000
‐
‐
256,411
‐
‐
100,000
‐ 55,432,002
Note:
1. On 2 September 2022 Ms Xu converted 100,000 vested performance rights into ordinary shares.
Options of Tietto Minerals Limited
Balance at
1 July 2022
No.
Granted on
compensation
No.
Exercised
No.
Balance at
31 Dec
2022
No.
Balance on
resignation
No.
Vested and
exercisable
at 31 Dec
2022
No.
Dec 2022
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Shaddrack Sowah
Adjetey
Executive KMP
Matthew Wilcox
Ting Xu1
‐
‐
‐
‐
1,000,000
‐
2,000,000
300,000
3,300,000
‐
‐
‐
‐
‐
‐
‐
1,000,000
1,000,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,000,000
‐
2,000,000
1,300,000
4,300,000
Note:
1. On 1 July 2022 Ms Xu was issued 1 million options exercisable at $0.53 expiring 17 January 2025.
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,000,000
‐
‐
1,300,000
2,300,000
32
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Report
REMUNERATION REPORT (AUDITED) (CONT.)
Performance rights of Tietto Minerals Limited
2022
Directors
Francis Harper
Caigen Wang
Mark Strizek
Hanjing Xu
Paul Kitto
Shaddrack Sowah
Adjetey
Executive KMP
Matthew Wilcox
Ting Xu
Balance at
1 July 2022
No.
Granted on
compensation Exercised 1
No.
No.
Net other
change
No.
Balance at
31 Dec
2022
No.
Vested and
exercisable at
31 Dec 2022
No.
1,100,000
4,500,000
6,000,000
900,000
900,000
‐
2,500,000
200,000
16,100,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
(500,000)
‐
‐ (2,000,000)
‐ (2,000,000)
(400,000)
‐
(400,000)
‐
600,000
2,500,000
4,000,000
500,000
500,000
‐
‐
‐
‐
(100,000)
(100,000)
‐ 2,500,000
100,000
‐
(5,300,000) 10,700,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
1.
2 September 2022 Ting Xu converted 100,000 Class G Performance Rights into shares
Transactions with related parties
During the 6‐month period ending 31st December 2022, there were no related party transactions.
The related party transactions during the financial year ending 30 June 2022 were as follows:
The Company made cash payment of $495,000 to Resource Strategy Consultants a company associated with
the Company’s Non‐executive Director, Mr Hanxing Xu, in relation to capital raising.
All related party transactions are on arm's length terms.
(END OF AUDITED REMUNERATION REPORT)
The Directors’ Report is signed in accordance with a resolution of directors made pursuant to section 298(2) of
the Corporations Act 2001.
On behalf of the Directors
Caigen Wang
Director
Dated at Perth this 31st day of March 2023
33
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF TIETTO MINERALS
LIMITED
As lead auditor of Tietto Minerals Limited for the period ended 31 December 2022, I declare that, to
the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Tietto Minerals Limited and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit (WA) Pty Ltd
Perth
31 March 2023
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Interest income
Exploration expenses
Depreciation
Directors' remuneration
Salaries and wages
Rental expenses
Consumables
Travel, meals and accommodation
Business registration and compliance fees
Share‐based payments
Professional and consultants fees
Net foreign exchange gains (losses)
Finance Costs
Interest expense
Other expenses
Loss before income tax
Income tax benefit
Loss after income tax for the period
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss:
Revaluation gain/(loss) of financial assets at fair value
through other comprehensive income/(loss)
Other Reserve
Foreign currency translation reserve
Total other comprehensive income/(loss)
Total comprehensive loss for the period
Loss for the period is attributable to:
Owners of the parent
Non‐controlling interest
Total comprehensive loss for the period is attributable to:
Owners of the parent
Non‐controlling interest
Note
4
14
5
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
349,441
(7,008,208)
(1,057,148)
(491,300)
(5,464,356)
(333,606)
(54,649)
(194,877)
(176,969)
(2,001,443)
(3,017,314)
3,579,522
(105,193)
(44,737)
(1,609,323)
(17,630,160)
‐
(17,630,160)
71,666
(23,483,341)
(1,991,130)
(984,683)
(6,864,807)
(187,305)
(2,404,485)
(166,263)
(239,523)
(2,823,225)
(2,530,949)
290,610
‐
(2,949)
(5,278,075)
(46,594,459)
‐
(46,594,459)
5,000
(7,653)
(3,483,145)
(3,485,798)
(7,000)
‐
1,172,259
1,165,259
(21,115,958)
(45,429,200)
(16,743,802)
(886,358)
(17,630,160)
(20,209,435)
(906,523)
(21,115,958)
(46,149,579)
(444,880)
(46,594,459)
(45,002,911)
(426,289)
(45,429,200)
Loss per share for the period attributable to the owners of Tietto Minerals Limited:
Basic loss per share (cents per share)
24
(1.62)
(7.14)
The accompanying notes form part of the financial statements.
35
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Consolidated Statement of Financial Position
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Total current assets
NON‐CURRENT ASSETS
Property, plant and equipment
Financial assets at fair value through other
comprehensive income
Right‐of‐use of asset
Total non current liabilities
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
Employee benefit obligations
Lease liability
Total current liabilities
NON CURRENT LIABILITIES
Lease liability
Total non current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Total equity attributable to members of the company
Non‐controlling interests
TOTAL EQUITY
Notes
31 Dec 22
$
30 Jun 22
$
6
7
8
9
10
11
12
13
47,007,779
3,792,056
6,260,252
57,060,087
41,884,362
42,746,288
‐
84,630,650
247,684,459
135,269,505
24,000
38,932
247,747,391
304,807,478
46,433,682
11,812,045
166,507
19,431
58,431,665
‐
‐
58,431,665
19,000
56,895
135,345,400
219,976,050
19,532,123
‐
122,853
44,940
19,699,916
‐
‐
19,699,916
246,375,813
200,276,134
362,516,344
(2,695,148)
(112,163,261)
247,657,936
(1,282,123)
246,375,813
295,756,000
6,642,633
(101,746,899)
200,651,734
(375,600)
200,276,134
The accompanying notes form part of the financial statements.
36
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Consolidated Statement of Changes in Equity
At 1 July 2022
Net loss for the period
Other comprehensive income/(loss) for the period
Total comprehensive income/(loss)
Transactions with owners in their capacity as owners:
Issue of shares (net of costs)
Share based payments
Transactions with non‐controlling interests
Issued Capital
$
295,756,000
Reserves
$
6,642,633
Accumulated
losses
$
(101,746,899)
Owners of the
parent
$
Non‐
controlling
interest
$
Total
$
200,651,734
(375,600)
200,276,134
‐
‐
‐
‐
(3,465,633)
(3,465,633)
(16,743,802)
‐
(16,743,802)
(16,743,802)
(3,465,633)
(20,209,435)
(886,358)
(20,165)
(906,523)
(17,630,160)
(3,485,798)
(21,115,958)
66,760,344
‐
‐
66,760,344
(1,651,344)
(4,220,804)
‐
(5,872,148)
‐
6,327,441
‐
6,327,441
65,109,000
2,106,637
‐
67,215,637
‐
‐
‐
‐
65,109,000
2,106,637
‐
67,215,637
At 31 December 2022
362,516,344
(2,695,148)
(112,163,261)
247,657,936
(1,282,123)
246,375,813
At 1 July 2021
96,497,786
7,864,888
(55,597,320)
48,765,354
50,689
48,816,043
Net loss for the year
Other comprehensive income/(loss) for the year
Total comprehensive income/(loss)
Transactions with owners in their capacity as owners:
Issue of shares (net of costs)
Share based payments
Transactions with non‐controlling interests
‐
‐
‐
‐
1,165,259
1,165,259
(46,149,579)
‐
(46,149,579)
(46,149,579)
1,165,259
(44,984,320)
(444,880)
18,591
(426,289)
(46,594,459)
1,183,850
(45,410,609)
199,258,214
‐
‐
199,258,214
‐
3,913,225
(6,300,739.0)
(2,387,514)
‐
‐
‐
‐
199,258,214
3,913,225
(6,300,739)
196,870,700
‐
‐
‐
‐
199,258,214
3,913,225
(6,300,739)
196,870,700
At 30 June 2022
295,756,000
6,642,633
(101,746,899)
200,651,734
(375,600)
200,276,134
The accompanying notes form part of the financial statements.
37
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration expenses
Interest received
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Withdraw of (payment for) term deposits
Net cash used in investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Issue of share capital (net of costs)
Payment of lease liability
Transaction with non‐controlling interests
Proceeds from related party loan
Net cash generated from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Effect of foreign exchange
Cash and cash equivalents at end of the period
6
Notes
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
(24,051,159)
(5,333,262)
400,263
(28,984,158)
(4,399,978)
(16,117,658)
98,275
(20,419,361)
23
(82,800,282)
39,917,458
(42,882,824)
(134,184,905)
(6,232,110)
(140,417,015)
65,109,000
(26,551)
‐
11,812,045
76,894,494
5,027,512
41,884,362
95,905
47,007,779
194,608,214
(74,130)
(560,739)
‐
193,973,345
33,136,969
8,721,198
26,195
41,884,362
The accompanying notes form part of the financial statements.
38
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
1. GENERAL INFORMATION
The financial report covers Tietto Minerals Limited as a consolidated entity consisting of Tietto Minerals Limited
and the entities it controlled during the period (“the Group”). The financial report consists of the financial
statements, notes to the financial statements and the directors' declaration. Tietto Minerals Limited is a listed
public company limited by shares, incorporated and domiciled in Australia. The Company was listed on the
Australian Securities Exchange on 18 January 2018.
The Company’s registered office and its principal place of business are as follows:
Australia:
Unit 22, 123B Collin Street
West Perth 6005
Republic of Côte d'Ivoire:
Cocody Attoban derrière le 30 ieme
arrondissement en face de l'ÀNSUT
Abidjan
The Group is principally engaged in gold exploration and development in West Africa, specifically in the Republic
of Côte d'Ivoire and in the Republic of Liberia.
2. BASIS OF PREPARATION
The financial statements comprise the consolidated financial statements for the Group. For the purpose of
preparing the consolidated financial statements, the Company is a for‐profit entity.
(a) Statement of Compliance
The financial report is a general purpose financial report which has been prepared in accordance with the
Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the
law. Accounting Standards include Australian equivalents to International Financial Reporting Standards
("AIFRS"). Compliance with AIFRS ensures that the financial statements and notes of the Company and the Group
comply with International Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board.
(b) Basis of Measurement
The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non‐
current assets and financial instruments. Cost is based on the fair value of the consideration given in exchange
for assets.
(c) Reporting Period and Comparative Information
The Company has changed its financial year end from 30 June to 31 December. This financial report therefore
relates to the six month period ending 31 December 2022. The change of financial year end will align Tietto
with the reporting obligations its subsidiary, Societe Miniere De La Lobo (SML) SA which has a financial year
end of 31 December. The comparative information relates to the 12 month period ended 30 June 2022 and
therefore the comparative amounts presented are not entirely comparable.
(d) Functional and Presentation Currency
The functional currency of the Company is Australian dollars (AUD). The functional currencies of the subsidiaries
are:
Tietto Minerals (Liberia) Limited
Tietto Minerals (Cote d’Ivoire) Limited
Bamba & Fred Minerals SARL
Tietto Minerals Austar Pty Ltd
Tiebaya Gold SARL
Societe Miniere de la Lobo
US Dollars (USD)
West African Franc (XOF)
West African Franc (XOF)
Australian Dollar (AUD)
West African Franc (XOF)
West African Franc (XOF)
39
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
2. BASIS OF PREPARATION (CONT.)
(e) Significant Accounting Judgments and Key Estimates
The preparation of financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised
and in any future years affected.
Information about estimates and judgments made in applying accounting policies that have the most significant
effect on the amounts recognised in the financial statements are:
i)
ii)
iii)
iv)
v)
vi)
vii)
The fair value of share‐based payments as discussed in Note 14 (Share‐Based Payments). The fair
values of options is calculated using Black Scholes pricing model and the fair value of performance
rights is determined using the Trinomial Option Pricing Model that takes into account the term of
the performance rights, share price at valuation 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 and the
probability and timing of achieving milestones related to the performance rights;
The Probability and timing of achieving milestones related to the performance rights as discussed
in Note 13 (Reserves) and Note 14 (Share‐Based Payments);
The consolidated entity determines the estimated useful lives and related depreciation and
amortisation charges for its property, plant and equipment and finite life intangible assets. The
useful lives could change significantly as a result of technical innovations or some other event. The
depreciation and amortisation charge will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non‐strategic assets that have been abandoned or sold
will be written off or written down.
Development represents expenditure necessarily incurred during establishments and construction
of a mining project that is in progress but yet to be complete. This expenditure includes the cost
associated with studies and evaluation through to early construction cost of assets or infrastructure
yet to be fully formed or ready for use. As tangible assets are completed, they will be transferred to
the relevant classification and depreciated over their useful life. Other expenditure on project
development that is not capitalised as plant or equipment will be capitalised as mine properties and
amortised on a units of production bases over the expected life of the project. Judgement is applied
in relation cost allocation and timing of asset completion.
Impairment is indicated when the carrying amount, and the present value of the estimated future
cash flows, discounted at the original effective interest rate, differ.
At 31 December 2022 no rehabilitation provision has been recognised. Judgement around
rehabilitation based on outcome/ response from in country expert.
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax and the availability of carried
forward tax losses. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the deferred tax provisions in the period in which such
determination is made.
40
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
2. BASIS OF PREPARATION (CONT.)
(f) Going concern
These financial statements have been prepared on the going concern basis, which contemplates the continuity
of normal business activities and the realisation of assets and settlement of liabilities in the normal course of
business.
As disclosed in the financial statements, the Group incurred a loss of $17,630,160 and had net cash outflows
from operating activities of $28,984,158 for the period ended 31 December 2022. Cash and cash equivalents
totalled $47,007,779 and net current liability was $1,371,578 as at 31 December 2022. Noting the above and the
commitments detailed in Note 20 the Group require additional funding in the coming 12 months.
The ability of the group to continue as a going concern is dependent upon achievement of the status of
commercial production (which has been defined by the Board as the point at which positive net cash has been
generated by production operations for a period of three consecutive months. These conditions indicate a
material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern,
and therefore its ability to realise its assets and discharge its liabilities in the normal course of business.
The Directors have reviewed the Group’s financial position and are of the opinion that there are sufficient funds
to meet the entity’s working capital requirements as at the date of this report.
The Directors believe that it is reasonably foreseeable that the consolidated entity will continue as a going
concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report
after consideration of the following factors:
(cid:1)
(cid:1)
(cid:1)
The Company had the first gold pour in January 2023 and the first sale proceeds took place in early
March;
The Company has a negligible amount of debt relative to the value of its operations; and
The Company has the ability to issue additional equity securities under the Corporations Act 2001 to
raise further working capital.
Should the Group not be able to continue as a going concern, it may be required to realise its assets and
discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those stated
in the financial statements. The financial report does not include any adjustments relating to the recoverability
and classification of recorded asset amounts or liabilities that might be necessary should the Group not continue
as a going concern.
(g) 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.
41
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Principles of Consolidation and Equity Accounting
Subsidiaries
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is
exposed to, or has the rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to or obtained by the Group. They are deconsolidated from the
date on which the Group ceases or loses control.
The acquisition method of accounting is used to account for business combinations by the Group. The cost of
an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition
date fair value, and the amount of any non‐controlling interests in the acquiree. Acquisition‐related costs are
expensed as incurred and included in administrative expenses.
Intercompany transactions, balances and unrealised gains on transactions between group entities are
eliminated in full on consolidation. Unrealised losses are also eliminated unless the transaction provides
evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the policies adopted by the Group.
Non‐controlling interest in the results and equity of subsidiaries are shown separately in the consolidated
statement of profit or loss and other comprehensive income, statement of changes in equity and statement of
financial position respectively.
The group treats transactions with non‐controlling interests that do not result in a loss of control as
transactions with equity owners of the group. Any difference between the amount of the adjustment to non‐
controlling interests and any consideration paid or received is recognised within equity attributable to owners
of the Company.
(b) Financial Instruments
Financial assets and financial liabilities are recognised in the statement of financial position when the Group
becomes a party to the contractual provisions of the instrument.
Financial assets
(i)
Except for certain trade receivables the Group initially measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss, transaction costs. Financial assets are
subsequently measured at fair value through profit or loss ("FVPL"), amortised cost, or fair value through other
comprehensive income ("FVOCI"). The classification is based on two criteria: the Group’s business model for
managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of
principal and interest’ on the principal amount outstanding (the "SPPI criterion").
Financial assets with embedded derivatives are considered in their entirety when determining whether their
cash flows meet the SPPI criterion.
Debt and other instruments at amortised cost.
This Category of financial assets are held within a business model with the objective to hold the financial assets
in order to collect contractual cash flows that meet the SPPI criterion. It includes the Group’s trade and other
receivables and cash and cash equivalents. Subsequent to initial recognition, trade and other receivables are
measured at amortised cost using the effective interest method, less any impairment losses based on lifetime
expected credit losses.
42
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(b) Financial Instruments (continued)
(i) Financial assets (continued)
Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months
or less. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of any outstanding bank overdrafts.
Other receivables are held in order to collect the contractual cash flows and accordingly are measured at initial
recognition at fair value, which ordinarily equates to cost and are subsequently measured at cost less
impairment due to their short term nature. A provision for impairment is established based on 12‐month
expected credit losses unless there has been a significant increase in credit risk when lifetime expected credit
losses are recognised. The amount of any provision is recognised in profit or loss.
Equity instruments at FVOCI
This category of financial assets has no recycling of gains or losses to profit or loss on derecognition, and only
includes equity instruments which are not held‐for‐trading and which the Group has irrevocably elected to so
classify upon initial recognition or transition. Equity instruments at FVOCI are not subject to an impairment
assessment under AASB 9. For this category there is no subsequent reclassification of fair value gains and losses
to profit or loss following the derecognition of the investment. Dividends from such investments continue to
be recognised in profit or loss as other income when the group’s right to receive payments is established. The
Group has irrevocably elected to classify some of its quoted equity instruments as equity instruments at FVOCI.
Financial assets at FVPL
These comprise derivative instruments, hybrid financial instruments and quoted and unquoted equity
instruments which the Group had not irrevocably elected, at initial recognition or transition, to classify at
FVOCI. This category would also include debt instruments whose cash flow characteristics fail the SPPI criterion
or are not held within a business model whose objective is either to collect contractual cash flows, or to both
collect contractual cash flows and sell.
Financial liabilities
(ii)
Financial liabilities and equity instruments issued by the Group are classified in accordance with the substance
of the contractual arrangements entered into and the definitions of a financial liability and an equity
instrument.
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are
originated. The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled or expire. Financial liabilities comprise loans and borrowings and trade and other payables. Loans
that are repayable in the equity of the Company where the number of shares to be issued is variable is classified
as liability.
All loans and borrowings are initially recorded at fair value, which is ordinarily equal to the proceeds received
net of transaction costs. These liabilities are subsequently measured at amortised cost, using the effective
interest rate method. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in profit or loss over the period of the loans or borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred
until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period
of the facility to which it relates. Loans and borrowings are removed from the statement of financial position
when the obligation specified in the contract is discharged, cancelled or expired. The difference between the
carrying amount of a financial liability that has been extinguished or transferred to another party and the
consideration paid, including any non‐cash assets transferred or liabilities assumed, is recognised in profit or
loss as other income or finance costs.
43
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(b) Financial Instruments (continued)
(ii)
Financial liabilities (Cont.)
Trade and other payables represent liabilities for goods and services provided to the entity prior to the end of
the financial year and which are unpaid. Trade and other payables are initially recognised at fair value plus any
directly attributable transaction costs. Subsequent to initial recognition, trade and other payables are
measured at amortised cost using the effective interest rate method.
All loans, borrowings and payables are classified as current liabilities unless the Group has an unconditional right
to defer settlement of the liability for at least 12 months after the reporting period.
Equity
(iii)
An equity instrument is any contract that evidences a residual interest in the assets of the Group after
deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received,
net of direct issue costs.
The Group's equity includes ordinary shares, for which incremental costs directly attributable to their issue are
recognised as a deduction from equity, net of any tax effects. Dividends are recognised as a liability in the year
in which they are declared.
Impairment of Financial Instruments
(iv)
The Group assesses on a forward looking basis the expected credit losses ("ECLs") associated with its debt
instruments carried at amortised cost. ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is
then discounted at an approximation to the asset’s original effective interest rate.
For trade receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based
on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s
historical credit loss experience, adjusted for forward‐looking factors specific to the debtors and the economic
environment.
For other debt financial assets, the ECL is based on either the 12‐month or lifetime ECL. The 12‐month ECL is the
portion of lifetime ECLs that results from default events on a financial instrument that are possible within 12
months after the reporting date. When there has been a significant increase in credit risk since origination, the
allowance will be based on the lifetime ECL. In all cases, the Group considers that there has been a significant
increase in credit risk when contractual payments are more than 30 days past due.
The Group considers a financial asset in default when contractual payment are 90 days past due. However, in
certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before
taking into account any credit enhancements held by the Group.
44
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(b) Financial Instruments (continued)
Impairment of Other Financial Asset
(v)
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it
is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more
events have had a negative effect on the estimated future cash flows of that asset. Financial assets are tested
for impairment on an individual basis.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the original
effective interest rate. An impairment loss in respect of an available for sale financial asset is calculated by
reference to its fair value.
All impairment losses are recognised in profit or loss. Any cumulative loss in respect of an available for sale
financial asset recognised previously in equity is transferred to profit or loss.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognised. For financial assets measured at amortised cost and available for sale financial
assets that are debt securities, the reversal is recognised in profit or loss. For available for sale financial assets
that are equity securities, the reversal is recognised directly in equity.
Fair Value Measurement
(vi)
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each
reporting date and transfers between levels are determined based on a reassessment of the lowest level of input
that is significant to the fair value measurement.
For recurring and non‐recurring fair value measurements, external valuers may be used when internal expertise
is either not available or when the valuation is deemed to be significant. External valuers are selected based on
market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from
one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the
latest valuation and a comparison, where applicable, with external sources of data.
Finance costs
(vii)
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred.
45
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(c) Foreign Currency
Foreign Currency Transactions
(i)
Transactions in foreign currencies are translated at foreign exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the
functional currency at the foreign exchange rate at that date. The foreign currency gain or loss on monetary items
is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for
effective interest and payments during the year, and the amortised cost in foreign currency translated at the
exchange rate at the end of the year.
Non‐monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences
arising on the retranslation of available‐for‐ sale equity instruments or qualifying cash flow hedges, which are
recognised directly in equity.
(ii) Foreign Operations
The assets and liabilities of foreign operations are translated to the presentation currency at exchange rates at
the reporting date. The income and expenses of foreign operations are translated to Australian dollars at the
average exchange rates for the year.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign
currency translation reserve in equity.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are
considered to form part of a net investment in a foreign operation and are recognised in other comprehensive
income and are presented in the translation reserve in equity.
(d) Cash and cash equivalents
Cash and short‐term deposits in the statement of financial position comprise cash at bank and on hand and
short‐term deposits with an original maturity period of three months or less.
For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts, if any.
(e) Project Exploration Expenditure
Project exploration expenditure, including the costs of acquiring licenses, are expensed as exploration and
evaluation expenditure as incurred.
46
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(f) Property, plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are
included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the group and the cost of the item
can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the
reporting period in which they are incurred.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end. Once assets are available for use, depreciation is calculated using the straight‐line
method to allocate asset costs over their estimated useful lives, as follows:
Plant and equipment – 2‐5 years
Motor vehicles – 3‐5 years
Land is not depreciated
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss.
Inventories
(g)
Inventories comprises mainly spare parts and consumables and they are stated at cost.
(h) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.
(i) Goods and Service Tax and Value Added Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable
from, or payable to, the relevant tax authority is included as a current asset or liability in the Statement of
Financial Position.
Cash flows are included in the statements of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable, or payable are classified as operating cash
flows.
47
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Income Tax
(j)
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable profit. In addition, deferred tax is
not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is
measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised on the initial recognition of assets or liabilities in a transaction that is
not a business combination and that affects neither accounting nor taxable profit. In addition, deferred tax is
not recognised for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is
measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets
and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(k) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current period.
48
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Share‐Based Payments
(l)
Equity‐settled share‐based payments to directors, employees, consultants and others providing similar services
are measured at the fair value of the equity instruments at the grant date. The fair value determined at the
grant date of the equity‐settled share‐based payments is expensed immediately where they vest immediately
or on a straight‐line basis over the vesting period, based on the Group’s estimate of equity instruments that will
eventually vest, with a corresponding increase in equity. For options with non‐market based vesting conditions,
at each reporting date, the Company revises its estimate of the number of equity instruments expected to vest.
The impact of the revision of the original estimates, if any, is recognised in profit or loss over the remaining
vesting period, with a corresponding adjustment to the option reserve.
The cost of equity‐settled transactions are measured at fair value on grant date. Fair value of performance
rights is determined based on the underlying share price on grant date. Fair value of options is independently
determined using either the Trinomial or Black‐Scholes option pricing model that takes into account the
exercise price, the term of the option, the impact of dilution, 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 consolidated entity receives
the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.
(m) Earnings per Share
Basic Earnings per share
Basic earnings per share is determined by dividing the net profit after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the financial period, adjusted for bonus elements in ordinary shares
issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Segment Reporting
(n)
AASB 8 requires a ‘management approach’ under which segment information is presented on the same basis as
that used for internal reporting purposes.
Operating segments are now reported in a manner that is consistent with the internal reporting provided to
the chief operating decision maker. The chief operating decision‐maker has been identified as the Board of
Directors of Tietto Minerals Limited.
Income recognition
(o)
Interest income is recognised using the effective interest method.
49
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(p) Leases
The Group as lessee:
The Group leases mining equipment, housing for the key staff on site as well as various warehouse space.
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises
a right‐ of‐use asset and corresponding lease liability with respect to all lease arrangements in which it is the
lessee, except for the short‐term leases (defined as leases with lease term of 12 months or less) and leases of
low value assets (such as tablets and personal computers, small items of office furniture and telephones). For
these leases, the Group recognises the lease payments as an operating expense on a straight‐line basis over
the term of the lease unless another systematic basis is more representative of the time pattern in which
economic benefits from the leased assets are consumed.
Lease liabilities
(i)
The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:
Fixed lease payments (including in‐substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index rate, initially measured using the index or rate at the
commencement date;
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lease term reflects the exercise of an option to terminate
the lease.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments
made.
Right of use assets
(ii)
The right‐of‐use assets comprise the initial measurement of the corresponding lease liability, lease payments
made at or before the commencement day, less any lease incentives received and any initial direct costs. They
are subsequently measured at cost less accumulated depreciation and impairment losses.
The Group applied AASB 136 to determine whether a right‐of‐use asset is impaired and accounts for any
identified impairment loss as described in ‘Plant and Equipment’ policy.
(q) Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction
costs. They are subsequently measured at amortised cost using the effective interest method.
(r) Development assets
Development expenditure
(i)
All expenditure for the Mine Development is included Asset in construction heading in Property, plant and
equipment. Development expenditure is recorded at historical cost.
Once a mining project has been established as commercially viable and technically feasible, expenditure is
capitalised under development expenditure. Development expenditure costs include, pre‐production
development costs, development excavation, development studies, land compensation and other subsurface
expenditure pertaining to that area of interest. Costs related to surface plant and equipment and any
associated land and buildings are accounted for as property, plant and equipment.
50
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(r) Development assets (cont.)
Development expenditure (cont.)
(i)
Development costs are accumulated in respect of each separate area of interest. Revenue and costs associated
with commissioning new assets in the period before they are capable of operating in the manner intended by
management, are capitalised. Development costs incurred after the commencement of production are
capitalised to the extent they are expected to give rise to a future economic benefit.
When an area of interest is abandoned or the Directors decide that it is not commercial or technically feasible,
any accumulated cost in respect of that area is written off in the financial period the decision is made. Each
area of interest is reviewed at the end of each accounting period and accumulated cost written off to the profit
or loss to the extent that they will not be recoverable in the future.
Development assets are assessed for impairment if facts and circumstances suggest that the carrying amount
exceeds the recoverable amount. For the purposes of impairment testing, development assets are allocated to
cash‐generating units to which the development activity relates. The cash generating unit shall not be larger
than the area of interest.
Development stripping
(ii)
Overburden and other mine waste materials are often removed during the initial development of a mine in
order to access the mineral deposit. This activity is referred to as development stripping.
The directly attributable costs (inclusive of an allocation of relevant operational overhead expenditure) are
capitalised as development costs. Capitalisation of development stripping costs ceases and amortisation of
those capitalised costs commences upon extraction of ore. Amortisation of capitalised development stripping
costs is determined on a unit of production basis for each separate area of interest.
Capitalised development and production stripping costs are classified as ‘Development Expenditure”.
Development stripping costs are considered in combination with other assets of an operation for the purpose
of undertaking impairment assessments.
Removal of waste material normally continues throughout the life of a mine. This activity is referred to as
production stripping and commences upon extraction of ore.
Amortisation
(iii)
Once commercial levels of production are achieved, and the mine asset is classified as available for use,
amortisation will commence based a units of production method.
(s) Employee benefits
Short‐term employee benefits
(i)
Liabilities for wages and salaries, including non‐monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected
to be paid when the liabilities are settled.
Other long‐term employee benefits
(ii)
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date using the projected unit credit method. Consideration is given to
expected future wage and salary levels, experience of employee departures and periods of service. Expected
future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
51
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
3. SIGNIFICANT ACCOUNTING POLICIES (CONT.)
(s) Employee benefits
Defined contribution superannuation expense
(iii)
Contributions to defined contribution superannuation plans are expensed in the period in which they are
incurred.
(t) 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 consolidated entity'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 consolidated entity'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.
Issued capital
(u)
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction,
net of tax,from the proceeds.
(v) New and Revised Accounting Standards and Interpretations on Issue but not yet Adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 31
December 2022. The consolidated entity has not yet assessed the impact of these new or amended Accounting
Standards and Interpretations.
4. EXPENSES
(i)
Exploration expenses
Exploration expenses ‐ Liberia
Exploration expenses ‐ Côte d'Ivoire
01 Jul 22
to
31 Dec 22
$
264,788
6,743,420
7,008,208
01 Jul 21
to
30 Jun 22
$
2,175,284
21,308,057
23,483,341
52
01 Jul 21
to
30 Jun 22
$
(46,594,459)
(11,648,615)
(2,247,758)
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
5.
INCOME TAX EXPENSES
01 Jul 22
to
31 Dec 22
$
Numerical reconciliation of income tax expense and tax at the statutory rate:
Loss before income tax expense
Tax at the statutory tax rate of 25% (2021: 26%)
Effect of temporary differences that would be recognised directly in
equity
Non‐deductable expenses
Non‐assessable income
Effect of changes in unrecognised temporary differences
Adjustments recognised in the current year in relation to the current tax
of previous years
Income tax expense
(17,630,160)
(4,407,540)
291,532
6,350
500,361
4,063,598
(454,301)
705,806
‐
16,199,762
(3,009,195)
‐
‐
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2022: 25%) payable by Australian
corporate entities on taxable profits under Australian tax law.
Unrecognised deferred tax assets and liabilities
The following deferred tax assets and (liabilities) have not been brought to account:
Tax losses ‐ revenue
Other temporary differences
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
30,156,083
(3,211,098)
26,944,985
25,815,728
(2,934,342)
22,881,386
The above potential tax benefit for tax losses has not been recognised in the statement of financial position.
These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that,
the same business test is passed.
53
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
6. CASH AND CASH EQUIVALENTS
Cash at bank
31 Dec 22
$
30 Jun 22
$
47,007,779
47,007,779
41,884,362
41,884,362
The Group’s exposure to interest rate risk and the effective weighted average interest rate for bank balances
is disclosed in Note 15.
7. TRADE AND OTHER RECEIVABLES
Deposits
Prepayments
GST paid
Interest receivable
Other debtors and advances
8.
INVENTORIES
Spare parts and consumables
31 Dec 22
$
30 Jun 22
$
1,314,652
2,022,814
255,928
19,523
179,139
3,792,056
41,232,110
1,092,258
75,963
70,345
275,612
42,746,288
31 Dec 22
$
6,260,252
6,260,252
30 Jun 22
$
‐
‐
54
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
9. PLANT AND EQUIPMENT
Assets under construction
Motor vehicles
Plant and Equipment
Carrying amount
Movement in carrying amounts of plant and equipment:
31 Dec 22
$
241,245,825
704,767
5,733,867
247,684,459
30 Jun 22
$
129,082,866
806,395
5,380,244
135,269,505
Balance at 1 July 2022
Additions
Depreciation
Exchange difference
Balance at 31 Dec 2022
Balance at 1 July 2021
Additions
Depreciation
Exchange difference
Plant and
equipment
Motor vehicles
Assets under
construction
Total
$
$
5,380,244
1,333,998
(996,176)
15,801
5,733,867
1,816,522
5,134,944
$
$
806,395
129,082,866
135,269,505
‐
111,701,157
113,035,155
(101,628)
‐
(1,097,804)
‐
461,802
477,604
704,767
241,245,825
247,684,459
1,075,194
63,706
2,955,422
30,801
129,019,160
134,184,905
(1,635,837)
(305,614)
64,615
6,014
‐
‐
(1,941,451)
70,629
Balance at 30 June 2022
5,380,244
806,395
129,082,866
135,269,505
10. TRADE AND OTHER PAYABLES
Trade payables
Other payables
Accrued expenses
31 Dec 22
$
29,349,444
17,029,338
54,900
46,433,682
30 Jun 22
$
11,125,022
5,816,919
2,590,182
19,532,123
55
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
11. BORROWINGS
Unsecured Loans
Loan from Kongwell Management Limited
30 Jun 22
$
31 Dec 22
$
11,812,045
11,812,045
31 Dec 22
$
30 Jun 22
$
Loan balance
Interest charged @ 8% interest per annum
Interest paid
Options granted for loan facility (note 14)
The loan has a maturity of 6 months from the issuance date ‐ 14/12/22
8,856,089
33,042
‐
3,000,000
Loan from Dr. Minlu FU
Loan balance
Interest charged @ 8% interest per annum
Interest paid
Options granted for loan facility (note 14)
The loan has a maturity of 6 months from the issuance ‐ 14/12/22
31 Dec 22
$
30 Jun 22
$
2,955,956
11,014
‐
1,000,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
56
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
12. ISSUED CAPITAL
Ordinary shares ‐ fully paid
Less: Capital raising costs
31 Dec 22
30 Jun 22
Number
1,079,527,490
Number
959,513,204
31 Dec 22
$
30 Jun 22
$
382,176,711
(19,660,367)
362,516,344
315,143,724
(19,387,724)
295,756,000
Ordinary shares carry one vote per share and participate in dividends and the proceeds on winding up of the
Company in proportion to the number of shares held.
01 Jul 2021
to
30 Jun 2022
On issue at 30 June 2021
Exercise of 4,000,000 Options at $0.25 on 12 October 2021
Exercise of 1,000,000 Options at $0.1725 on 12 October 2021
Exercise of 424,677 Options at $0.25 on 14 October 2021
Exercise of 1,400,000 Options at $0.1725 on 22 October 2021
Exercise of 150,000 Options at $0.25 on 22 October 2021
Exercise of 711,878 Options at $0.25 on 11 November 2021
Capital Raising Placement on 29 November 2021
Exercise of 1,223,432 Options at $0.25 on 30 November 2021
Exercise of 1,875,000 Options at $0.20 on 30 November 2021
Issue of shares on 1 December 2021
Exercise of Options at $0.25 on 15 December 2021
Exercise of 6,633,956 Options at $0.25 on 21 December 2021
Exercise of 6,625,000 Options at $0.20 on 31 December 2021
Exercise of 11,113,769 Options at $0.25 on 31 December 2021
Exercise of 6,026,890 Options at $0.25 on 4 January 2022
Exercise of 1,000,000 Options at $0.25 on 14 January 2022
Conversion of performance rights on 14 January 2022
Tranche 2 Capital Raising Placement on 17 January 2022 (a)
Tranche 2 Capital Raising Placement on 21 January 2022 (a)
Issue of 7,500,000 shares to Non‐controlling interests *
Exercise of 5,000,000 Options at $0.20 on 7 February 2022
Exercise of 1,500,000 Options at $0.1725 on 14 February 2022
Exercise of 2,500,000 Options at $0.1725 on 22 February 2022
Capital Raising Placement on 5 April 2022
Placement on 8 April 2022
Placement on 11 April 2022
Placement on 23 May 2022
Placement on 24 May 2022
Placement on 9 June 2022
Placement on 15 June 2022
On issue at 30 June 2022
Less: Capital raising costs
Issued capital at 30 June 2022
Number
$
456,185,456
4,000,000
1,000,000
424,677
1,400,000
150,000
711,878
110,593,218
1,223,432
1,875,000
5,374,784
9,905,601
6,633,956
6,625,000
11,413,769
6,026,890
1,000,000
7,787,500
83,292,987
1,512,823
7,500,000
5,000,000
1,500,000
2,500,000
96,280,545
121,826
200,000
128,613,862
140,000
400,000
120,000
959,513,204
‐
959,513,204
105,077,270
1,000,000
172,500
106,169
241,500
37,500
177,970
43,131,355
305,858
375,000
2,096,166
2,476,400
1,658,489
1,325,000
2,853,442
1,506,723
250,000
‐
32,484,265
590,001
4,650,000
1,000,000
258,750
431,250
48,140,273
60,913
100,000
64,306,931
70,000
200,000
60,000
315,143,724
(19,387,724)
295,756,000
57
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
12. ISSUED CAPITAL (CONTINUED)
* On 4 February 2022, the Company issued 7,500,000 ordinary shares to non‐controlling interests (shareholders
of Societe Miniere de la Lobo) in consideration for 3% interest in the Abujar Mining Licence. Amount of
$4,650,000 was recognised in other reserve (refer Note 25).
01 Jul 2022
to
31 Dec 2022
On issue at 30 June 2022
Less: Capital raising costs
Issued capital at 30 June 2022
Placement on 12 August 2022
Shares issued on 15 August 2022 to B&F in lieu of JV milestone payment
Exercise of 4,200,000 Options at $0.1725 on 26 August 2022
Conversion of performance rights on 2 September 2022
Placement on 16 September 2022
On issue at 31 December 2022
Less: Capital raising costs
Issued capital at 31 December 2022
Number
$
959,513,204
‐
959,513,204
30,000,000
714,286
4,200,000
100,000
85,000,000
1,079,527,490
‐
1,079,527,490
315,143,724
(19,387,724)
295,756,000
15,000,000
357,143
2,338,844
37,000
49,300,000
382,176,711
(19,660,367)
362,516,344
13. RESERVES
Revaluation reserve for financial assets at fair value through other
comprehensive income (i)
Foreign exchange reserve (ii)
Share‐based payment reserve (iv)
Other reserve (iii)
31 Dec 22
$
30 Jun 22
$
(101,000)
(1,539,773)
6,174,878
(7,229,253)
(2,695,148)
(106,000)
1,923,207
12,047,026
(7,221,600)
6,642,633
(i)
Revaluation reserve for financial assets at fair value through other comprehensive income
The revaluation reserve comprises the cumulative net change in the fair value of financial assets at fair value
through other comprehensive income (in accordance with AASB 9 Financial Instruments), until the investments
are derecognised or impaired.
Foreign exchange reserve
(ii)
The foreign exchange reserve comprises all foreign currency differences arising from the translation of the
financial statements of foreign operations.
Other reserve
(iii)
The other reserve relates to transactions with non‐controlling interests, see Note 25 for details of transactions
in the prior period.
Share‐based payment reserve
(iv)
The reserve is used to recognise the value of equity benefits provided to employees and directors as part of
their remuneration, and other parties as part of their compensation for services.
58
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
13. RESERVES (continued)
Movement in shared‐based payment reserve
01 Jul 2021
to
30 Jun 2022
On issue at 30 June 2021
Recognition of share‐based payment vesting
expense for performance rights granted 24
November 2020
Recognition of share‐based payment vesting
expense for performance rights granted 22
December 2020
Recognition of share‐based payment vesting
expense for performance rights granted 10
September 2020
Recognition of share‐based payment vesting
expense for options and performance rights granted
14 January 2021
Recognition of share‐based payment vesting
expense for options and performance rights granted
22 March 2021 (9a)
Exercise of Options at $0.1725 on 12 October 2021
Exercise of Options at $0.25 on 12 October 2021
Exercise of Options at $0.25 on 14 October 2021
Exercise of Options at $0.25 on 22 October 2021
Exercise of Options at $0.1725 on 22 October 2021
Exercise of Options at $0.25 on 11 November 2021
Exercise of Options at $0.25 on 30 November 2021
Exercise of Options at $0.20 on 30 November 2021
Issue of Class H performance rights on 30 Nov 2021
Exercise of Options at $0.25 on 15 December 2021
Exercise of Options at $0.25 on 15 December 2021
Exercise of Options at $0.25 on 21 December 2021
Exercise of Options at $0.25 on 31 December 2021
Exercise of Options at $0.20 on 31 December 2021
Exercise of Options at $0.25 on 4 January 2022
Exercise of Options at $0.25 on 14 January 2022
Conversion of performance rights on 14 January
2022
Issue of Class I performance rights on 17 January
2022
Issue of Class J performance rights on 17 January
2022
Issue of Options exercisable at $0.41 on 17 January
2022
Issue of Options exercisable at $0.62 on 4 February
2022
Exercise of Options at $0.20 on 7 February 2022
Exercise of Options at $0.1725 on 14 February 2022
Exercise of Options at $0.1725 on 22 February 2022
On issue at 30 June 2022
Number of
Unlisted Options
75,890,203
Number of
Performance
Rights
22,637,500
$
8,133,797
‐
‐
‐
‐
‐
(1,000,000)
(4,000,000)
(424,677)
(150,000)
(1,400,000)
(711,878)
(1,223,432)
(1,875,000)
‐
(8,905,601)
(1,000,000)
(6,633,956)
(11,413,769)
(6,625,000)
(6,026,890)
(1,000,000)
‐
‐
‐
3,200,000
5,000,000
(5,000,000)
(1,500,000)
(2,500,000)
22,700,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,500,000
‐
‐
‐
‐
‐
‐
‐
923,450
25,820
28,235
573,667
37,000
‐
‐
‐
‐
‐
‐
‐
‐
132,762
‐
‐
‐
‐
‐
‐
‐
(7,787,500)
‐
1,600,000
1,600,000
‐
‐
‐
‐
‐
350,621
350,621
401,050
1,090,003
‐
‐
‐
19,550,000
12,047,026
59
Number of
Unlisted Options
22,700,000
Number of
Performance
Rights
19,550,000
$
12,047,026
‐
453,304
(5,400,000)
(1,096,280)*
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
13. RESERVES (continued)
01 Jul 2022
to
31 Dec 2022
On issue at 30 June 2022
Recognition of share‐based payment vesting
expense for performance rights granted 24 Nov 2020
Expiry of Class A performance rights on 23 Dec 2022
Recognition of share‐based payment vesting
expense for performance rights granted 22 Dec 2020
Recognition of share‐based payment vesting
expense for performance rights granted 10 Sep 2020
Recognition of share‐based payment vesting
expense for options and performance rights granted
14 Jan 2021
Recognition of share‐based payment vesting
expense for options and performance rights granted
22 Mar 2021
Recognition of share‐based payment vesting
expense for options and performance rights granted
30 Nov 2021
Recognition of share‐based payment vesting
expense for options and performance rights granted
17 Jan 2022
‐
‐
‐
‐
‐
‐
‐
‐
Issue of Options exercisable at $0.53 on 1 Jul 2022
Exercise of Options at $0.1725 on 26 Aug 2022
Conversion of performance rights on 2 Sep 2022
Issue of Options exercisable at $0.80 on 14 Dec 2022
Transferred to Retained Earnings
3,500,000
(4,200,000)
‐
4,000,000
‐
(100,000)
‐
On issue at 31 December 2022
26,000,000
14,050,000
*These amounts have been transferred between the share‐based payment reserve and accumulated losses as they relate
to options or performance rights which have expired or lapsed. The total transferred to accumulated losses in the year was
$6,327,440.
60
‐
‐
‐
‐
‐
‐
12,599
90,427
440,539
18,678
(132,762)
848,658
270,000
(1,614,343)
(37,000)
105,193**
(5,231,161)*
6,174,878
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS
(a) Summary of expenses arising from share‐based payment transactions
Performance rights issued on 24 November 2020 (i)
Performance rights Class E and F (i)
Performance rights issued on 22 Dec 2020 (i)
Performance rights issued on 10 Sept 2020 (i)
Options issued on 14 Jan 2021 (i)
Performance rights issued on 22 Mar 2021 (i)
Performance rights issued on 30 Nov 2021 (i)
Performance rights issued on 17 Jan 2022 (i)
Options issued on 17 Jan 2022 (i)
Options issued on 4 Feb 2022 (i)
Options issued during the year (ii) and (iii)
Performance rights issued during the period
Represented by
Share‐based payment expense
Movement in other reserve
Finance Costs
01 Jul 22
to
31 Dec 22
$
453,304
323,425
12,599
90,427
117,114
18,678
(132,762)
580,908
267,750
‐
375,193
‐
2,106,636
01 Jul 21
to
30 Jun 22
$
923,450
341,667
25,820
28,235
232,000
37,000
‐
‐
‐
‐
834,003
1,491,050
3,913,225
2,001,443
‐
105,193
2,106,636
2,823,225
1,090,000
‐
3,913,225
Options and performance rights issued in prior years
(i)
The full details of these performance rights are outlined in 30 June 2021 and 30 June 2022 annual reports. The
expense recognised in the period ending 31 December 2022 is as follows:
Performance rights issued on 24 November
2020
Performance rights Class E and F
Performance rights issued on 22 Dec 2020
Performance rights issued on 10 Sept 2020
Options issued on 14 Jan 2021
Performance rights issued on 22 Mar 2021
Performance rights issued on 30 Nov 2021
Performance rights issued on 17 Jan 2022
Options issued on 17 Jan 2022
Value attributed
Value expensed
at 31 December
2022
2,433,500
453,304
Value expensed
at 30 June 2022
923,450
1,025,000
64,230
282,500
464,000
74,000
675,000
1,488,000
668,800
7,175,030
323,425
12,599
90,427
117,114
18,678
(132,762)
580,908
267,750
1,731,443
341,667
25,820
28,235
232,000
37,000
132,762
701,241
401,050
2,823,225
61
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS (continued)
(i) Options granted on 1 July 2022
On 1 July 2022, the Company granted 3,500,000 options pursuant to the Company’s Long Term Incentive Plan.
The options were priced using Black Scholes pricing model. The table below summarises the valuation inputs
for these :
Number granted
Expected volatility (%)
Risk‐free interest rate (%)
Expected life of performance rights (years)
Share price at grant date (cents)
Fair value at grant date (cents)
Value attributed ($)
Value expensed at 31 December 2022
(ii) Options issued on 14 December 2022
TIEOPT
3,500,000
70%
3.01%
3 yrs
0.34
0.120
420,000
270,000
On 14 December 2022, the Company granted 3,000,000 options to Kongwell Management Limited and
1,000,000 options to Dr. Minlu FU in accordance with the loan facility agreement. The options were valued using
the Black Scholes pricing model. The table below summarises the valuation inputs for these:
Number granted
Expected volatility (%)
Risk‐free interest rate (%)
Expected life of options (years)
Share price at grant date (cents)
Fair value at grant date (cents)
Value attributed ($)
Value expensed at 31 December 2022
TIEOPT
4,000,000
65%
3.08%
2 yrs
0.775
0.280
1,120,000
105,193
62
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS (continued)
(iii) Reconciliation of movements of share‐based payments in existence
a) Options
31 December 2022:
Grant Date
27 Jul 2018
22 Jan 2019
28 Aug 2019
22 Mar 2021
14 Jan 2021
17 Jan 2022
4 Feb 2022
1 Jul 2022
14 Dec 2022
Issue Date
28 Aug 2019
28 Aug 2019
28 Aug 2019
22 Mar 2021
14 Jan 2021
17 Jan 2022
4 Feb 2022
1 Jul 2022
31 Jan 2023
Expiry Date
22 Jan 2023
22 Jan 2023
28 Aug 2022
21 May 2024
1 August 2024
17 Jan 2025
4 Feb 2025
1 Jul 2025
31 Dec 2024
Exercise
Price
$
Balance at
1 July 2022
No
0.30
0.30
0.1725
0.39
0.62
0.41
0.62
0.53
0.80
7,000,000
1,000,000
4,200,000
2,000,000
300,000
3,200,000
5,000,000
‐
‐
22,700,000
Granted
No
‐
‐
‐
‐
‐
‐
‐
3,500,000
4,000,000
7,500,000
Exercised
No
‐
‐
(4,200,000)
‐
‐
‐
‐
‐
‐
(4,200,000)
Expired /
Forfeited
No
Balance at
31 December
2022
No
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
7,000,000
1,000,000
‐
2,000,000
300,000
3,200,000
5,000,000
3,500,000
4,000,000
26,000,000
Vested and
Exercisable at
31 December
2022
No
7,000,000
1,000,000
‐
2,000,000
300,000
3,200,000
5,000,000
3,500,000
4,000,000
26,000,000
Value included in
SBP Reserve at
December 2022
$
406,000
39,000
‐
443,951
53,700
668,800
1,090,000
270,000
105,193
3,076,644
Weighted average exercise price is $0.49. Weighted average contractual life is 1.4 years.
63
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS (continued)
a) Options
30 June 2022:
Grant Date
31 Oct 2017
29 Dec 2017
29 Dec 2017
27 Jul 2018
18 Oct 2018
22 Jan 2019
28 Aug 2019
17 Jun 2020
22 Mar 2021
14 Jan 2021
17 Jan 2022
4 Feb 2022
Issue Date
31 Oct 2017
29 Dec 2017
29 Dec 2017
28 Aug 2019
28 Aug 2019
28 Aug 2019
28 Aug 2019
17 Jun 2020
22 Mar 2021
14 Jan 2021
17 Jan 2022
4 Feb 2022
Expiry Date
31 Dec 2021
31 Dec 2021
31 Dec 2021
22 Jan 2023
22 Jan 2022
22 Jan 2023
28 Aug 2022
16 Jan 2023
21 May 2024
1 Aug 2024
17 Jan 2025
4 Feb 2025
Exercise Price
$
0.20
0.20
0.20
0.30
0.25
0.30
0.1725
0.20
0.39
0.62
0.41
0.62
Balance at
1 July 2021
No
6,750,000
1,750,000
39,490,203
7,000,000
2,000,000
1,000,000
10,600,000
5,000,000
2,000,000
300,000
75,890,203
Granted
No
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
3,200,000
5,000,000
8,200,000
Exercised
No
(6,750,000)
(1,750,000)
(39,490,203)
‐
(2,000,000)
‐
(6,400,000)
(5,000,000)
‐
‐
‐
‐
(61,390,203)
Expired /
Forfeited
No
Balance at
30 June 2022
No
Vested and
Exercisable at
30 June 2022
No
Value included in
SBP Reserve at
June 2022
$
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
7,000,000
‐
1,000,000
4,200,000
‐
2,000,000
300,000
3,200,000
5,000,000
22,700,000
‐
‐
‐
7,000,000
‐
1,000,000
4,200,000
‐
2,000,000
‐
‐
5,000,000
19,200,000
‐
‐
‐
404,338
307,730
33,778
1,614,344
‐
285,700
53,700
401,050
1,090,000
4,190,640
Weighted average exercise price is $0.37. Weighted average contractual life is 1.55 years.
64
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS (continued)
b) Performance Rights
31 December 2022:
Grant Date
22 Oct 2020
22 Oct 2020
22 Oct 2020
22 Oct 2020
14 Jan 2021
22 Mar 2021
30 Nov 2021
17 Jan 2022
17 Jan 2022
Issue Date
24 Nov 2020
24 Nov 2020
22 Dec 2020
22 Dec 2020
14 Jan 2021
22 Mar 2021
30 Nov 2021
17 Jan 2022
17 Jan 2022
Expiry Date
22 Dec 2022
22 Dec 2023
22 Dec 2022
22 Dec 2023
21 May 2024
1 Aug 2024
30 Nov 2024
17 Jan 2025
17 Jan 2025
Weighted average contractual life is 1.39 years.
Balance at
1 July 2022
No
5,300,000
6,600,000
100,000
150,000
2,500,000
200,000
1,500,000
1,600,000
1,600,000
19,550,000
Granted
No
Exercised
No
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(100,000)
‐
‐
‐
(100,000)
Balance at
31
December
2022
No
Vested and
Exercisable at
31 December
2022
No
Value included
in SBP Reserve
at December
2022
No
Expired /
Forfeited
No
(5,300,000)
‐
(100,000)
‐
‐
‐
‐
‐
‐
‐
6,600,000
‐
150,000
2,500,000
100,000
1,500,000
1,600,000
1,600,000
(5,400,000) 14,050,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
943,546
‐
26,250
668,825
24,769
‐
744,000
538,149
3,081,305
65
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
14. SHARE BASED PAYMENTS (continued)
b) Performance Rights
30 June 2022:
Balance at
1 July 2021
No
5,037,500
2,500,000
5,300,000
6,600,000
100,000
150,000
250,000
2,500,000
200,000
‐
‐
‐
22,637,500
Granted
No
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,500,000
1,600,000
1,600,000
4,700,000
Exercised
No
(5,037,500)
(2,500,000)
‐
‐
‐
‐
(250,000)
‐
‐
‐
‐
‐
(7,787,500)
Expired /
Forfeited
No
Balance at
30 June
2022
No
Vested and
Exercisable at
30 June 2022
No
‐
‐
‐
‐
5,300,000
‐
6,600,000
‐
100,000
‐
150,000
‐
‐
‐
2,500,000
‐
200,000
‐
1,500,000
‐
1,600,000
‐
‐
1,600,000
‐ 19,550,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Value included
in SBP Reserve
at June 2022
No
2,681,250
1,149,997
834,136
726,796
19,559
19,772
50,829
497,991
43,091
132,762
350,621
350,621
6,857,425
Grant Date
31 Oct 2017
22 Jan 2019
22 Oct 2020
22 Oct 2020
22 Oct 2020
22 Oct 2020
10 Sep 2020
14 Jan 2021
22 Mar 2021
30 Nov 2021
17 Jan 2022
17 Jan 2022
Issue Date
31 Oct 2017
28 Aug 2019
24 Nov 2020
24 Nov 2020
22 Dec 2020
22 Dec 2020
10 Sep 2020
14 Jan 2021
22 Mar 2021
30 Nov 2021
17 Jan 2022
17 Jan 2022
Expiry Date
18 Jan 2022
18 Jan 2022
22 Dec 2022
22 Dec 2023
22 Dec 2022
22 Dec 2023
10 Sep 2025
14 Jan 2026
1 Aug 2024
30 Nov 2024
17 Jan 2025
17 Jan 2025
Weighted average contractual life is 1.74 years.
66
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
15. FINANCIAL INSTRUMENTS
Financial risk management objectives
The group has exposure to the following risks from its use of financial instruments:
- Foreign currency risk
- Price risk
- Liquidity risk
- Interest rate risk
- Credit risk
- Capital management
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies
and processes for measuring and managing risk, and the management of capital. Further quantitative disclosures
are included throughout this note and the financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. Risk management policies are established to identify and analyse the risks faced by the Group, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group
aims to develop a disciplined and constructive control environment in which all employees understand their
roles and obligations.
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency
risk through foreign exchange rate fluctuations.
Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial
liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using
sensitivity analysis and cash flow forecasting.
The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the
reporting date, expressed in Australian dollars, was as follows:
UK pound sterling
Euro
US dollars
West African CFA franc
South African Rand
Assets
Liabilities
31 Dec 22
$
30 Jun 22
$
31 Dec 22
$
30 Jun 22
$
2,249
1,006,415
10,200,191
4,685,054
‐
15,893,909
4,168
2,545,939
249,646
1,952,253
‐
4,752,006
3,180
112,111
15,047,952
19,426,648
‐
‐
499,562
8,306,774
4,239,550
248,909
34,589,891
13,294,795
Foreign currency sensitivity analysis
The sensitivity analyses of the Group’s exposure to foreign currency risk at the reporting date has been
determined based on a change of 10% in the value of the Australian dollar against the relevant foreign
currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the period end for a 10% change in foreign currency rates.
At reporting date, if the Australian dollar was 10% stronger and all other variables were constant, the Group’s
net loss would have increased by $1,869,598 (30 June 2022: net loss would have increased by $12,342) with a
corresponding decrease in equity. Where the Australian dollar weakened, there would be an equal and opposite
impact on the loss after tax and equity.
67
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
15. FINANCIAL INSTRUMENTS (CONT.)
Price risk
The Group is not exposed to any significant price risk.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when they fall due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
Liquidity risk management is the responsibility of the Board of Directors, who have built an appropriate liquidity
risk management framework for the management of the Company’s short, medium and long‐term funding and
liquidity management requirements.
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of
financial assets and liabilities, identifying when further capital raising initiatives are required.
Remaining contractual maturities
The following tables detail the consolidated entity's remaining contractual maturity for its financial instrument
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on
the earliest date on which the financial liabilities are required to be paid. The tables include both interest and
principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from
their carrying amount in the statement of financial position.
Weighted
average
interest rate
%
One year or less
Between one
and two years
$
$
Total
$
Non derivatives
Trade and other payables
Borrowings
Lease liability
‐
8%
4%
46,433,682
11,812,045
19,431
58,265,158
‐
‐
‐
‐
46,433,682
11,812,045
19,431
58,265,158
Fair value of financial assets and liabilities
The carrying amount of financial assets and financial liabilities recorded in the financial statements represents
their respective net fair values, determined in accordance with the accounting policies disclosed in Note 3. The
directors consider that the carrying amount of financial assets and other financial liabilities recorded in the
financial statements approximate their net fair values.
Credit risk
Credit risk is the risk that a third party might fail to fulfil its performance obligations under the terms of a financial
instrument. Credit risk arises from cash and cash equivalents and receivables. The Group closely monitors its
financial assets and maintains its cash deposits in a high‐quality financial institution with a minimum A‐/A3 credit
rating.
As at 31 December 2022, the Group is unaware of any information which would cause it to believe that these
financial assets are not fully recoverable.
68
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
15. FINANCIAL INSTRUMENTS (CONT.)
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The capital structure of the Group consists of equity mainly,
comprising issued capital and reserves, net of accumulated losses and a negligible amount of debt. The Group’s
policy is to use capital market issues to meet the funding requirements of the Group.
There were no changes in the Group’s approach to capital management during the period. Neither the Company
nor any of its subsidiaries are subject to externally imposed capital requirements.
16. KEY MANAGEMENT PERSONNEL DISCLOSURES
Details of key management personnel compensation are disclosed in the Remuneration Report which forms part
of the Directors’ Report and has been audited. The aggregate compensation of the key management personnel
is summarised below:
Short term employee benefits
Post employment benefits
Share‐based payments
Total remuneration
17. REMUNERATION OF AUDITORS
01 Jul 22
To
31 Dec 22
$
830,167
47,250
899,759
1,777,176
01 Jul 21
to
30 Jun 22
$
1,618,253
91,725
1,695,115
3,405,093
During the financial period the following fees were paid or payable for services provided by the auditor of the
Company:
Audit and review of the financial statements
BDO Audit (WA) Pty Ltd
BDO network firms
18. CONTINGENT LIABILITIES
01 Jul 22
To
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
78,747
124,780
203,527
93,845
‐
93,845
In accordance with the Partnership Agreement between the Group and Bamba & Fred Minerals Sarl ("B&F"), the
Group has an obligation to pay the shareholders of B&F (other than Tietto Minerals) USD$250,000 upon each
discovery of 500,000 ounces of gold to a maximum USD$1,500,000 upon the discovery of total 3,000,000 ounces
of gold, as defined by the standard "indicated" category of the JORC code. USD$500,000 has been paid via issue
of shares during the previous years. The remaining contingent obligation at 31 December 2022 is
USD$1,000,000.
The company is required to rehabilitate sites and associated facilities at the end of, or in some cases, during the
course of production, to a condition acceptable to the relevant authorities. However, as at the period end the
company is still in the final stage of mining convention with the local government and therefore there is no
reliable estimate of the amount of the closure obligation and hence no provision has been recognised for
rehabilitation.
69
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
19. SEGMENT INFORMATION
Operating segments are reported in a manner that is consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision‐maker has been identified as the Board of Directors of
Tietto Minerals Limited.
Reportable segments disclosed are based on aggregating operating segments where the segments are
considered to have similar economic characteristics. The Group operates as four segments which is mineral
exploration within Australia, Liberia and Côte d'Ivoire and development within Côte d'Ivoire. The Group is
domiciled in Australia.
The following table presents the revenue and results information regarding the segment information provided to
the Board of Directors.
Administration
Australia
$
Exploration
Liberia
$
Exploration
Cote D'Ivoire
$
Development
Cote D Ivoire
$
Intersegment
Eliminations
$
Total
$
Jul 2022 to Dec 2022
Segment income
Segment expenditure
Net loss after tax
348,501
(8,933,748)
(8,585,247)
‐
(521,159)
(521,159)
‐
(4,266,782)
(4,266,782)
940
(4,257,912)
(4,256,972)
Depreciation
Exploration expenditure
(232,373)
(2,163,553)
‐
(264,788)
(713,475)
(4,579,867)
(111,300)
‐
‐
‐
‐
‐
‐
349,441
(17,979,601)
(17,630,160)
(1,057,148)
(7,008,208)
766,025
306,431,400
(19,344,645)
‐
36,104
(7,579,095)
94,426,922
102,817,234
(149,481,155)
152,602,408
164,619,694
(167,722,787)
(47,964)
(269,096,954)
285,696,017
247,747,391
304,807,478
(58,431,665)
70,992
(21,414,157)
(21,343,165)
‐
(2,926,239)
(2,926,239)
‐
(22,107,763)
(22,107,763)
673
(217,965)
(217,292)
Depreciation
Exploration expenditure
(824,877)
(12,677,940)
‐
(2,175,284)
(1,127,939)
(8,630,117)
(38,314)
‐
‐
‐
‐
‐
‐
71,665
(46,666,124)
(46,594,459)
(1,991,130)
(23,483,341)
Non‐current assets
Segment assets
Segment liabilities
989,837
240,831,355
(9,839,709)
‐
36,799
(6,949,762)
5,320,661
89,660,027
(130,687,834)
129,082,866
50,627,247
(49,446,086)
(47,964)
(161,179,378)
216,623,307
135,345,400
219,976,050
19,699,916
70
Non‐current assets
Segment assets
Segment liabilities
Jul 2021 to Jun 2022
Segment income
Segment expenditure
Net loss after tax
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
20. COMMITMENTS
Committed at reporting date but not recognised as liabilities, payable:
Within one year
After one year but not more than five years
31 Dec 22
$
30 Jun 22
$
26,184,964
‐
26,184,964
78,859,376
‐
78,859,376
The commitments relate to the capital expenditure for the mill, equipment to be used in the Abujar project.
21. RELATED PARTIES
Transactions with related parties
During the 6‐months period the Company made cash payment of $495,000 to Resource Strategy Consultants
(30 June 2022: Nil), a company associated with the Company’s Non‐Executive Director, Mr Hanjing Xu, in relation
to capital raising.
All related party transactions are on arm's length terms.
There were no other transactions with related parties during the period ended 31 December 2022 and year
ended 30 June 2022.
22. PARENT ENTITY INFORMATION
Investments in controlled entities:
Name
Principal
Activities
Country of
incorporation
Ownership of interest
December 2022
%
June 2022
%
Tietto Minerals (Liberia)
Limited
Tietto Minerals (Côte d'Ivoire)
Limited
Tietto Minerals Austar Pty Ltd
Bamba & Fred Minerals SARL
Tiebaya Gold SARL
Societe Miniere de la Lobo
Exploration
Liberia
Exploration
Exploration
Exploration
Exploration
Development
Ivory Coast
Australia
Ivory Coast
Ivory Coast
Ivory Coast
100
100
100
50
100
88
100
100
100
50
100
88
Society Miniere du Gnaboua was incorporated on 13 September 2021 and the name was changed to Society
Miniere de la Lobo on 12 October 2021.
71
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
PARENT ENTITY INFORMATION (continued)
22.
Set out below is the supplementary information about the parent entity, Tietto Minerals Limited.
Result of parent entity
Loss for the year
Other comprehensive gain/(loss)
Total comprehensive loss for the year
Financial position of parent entity at year end
Total current assets
Total non‐current assets
Total assets
Total current liabilities
Total non‐current liabilities
Total liabilities
Net assets
Share capital
Revaluation reserve
Options reserve
Other reserve
Other equity
Accumulated losses
Total equity
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
(49,296,188)
5,000
(49,291,188)
(49,452,308)
(7,000)
(49,459,308)
31 Dec 22
$
30 Jun 22
$
264,954,433
766,025
265,720,458
209,126,006
989,837
210,115,843
19,344,647
‐
19,344,647
9,839,711
‐
9,839,711
246,375,811
200,276,132
362,516,344
(101,000)
6,174,878
(644,910)
(5,740,000)
(115,829,501)
246,375,811
291,106,000
(106,000)
8,133,801
(644,910)
‐
(98,212,759)
200,276,132
Parent entity capital commitments for acquisition for property, plant and equipment
There are no contracted capital commitments of the parent entity at period end, other than as disclosed in note
20.
Parent entity guarantees in respect of the debts of its subsidiaries
There are no parent entity guarantees in respect of the debts of its subsidiaries at period end.
72
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
23. CASH FLOW INFORMATION
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
Reconciliation of cash flows used in operating activities with loss after tax is as follows:
Loss after tax
(17,630,160)
(46,594,459)
Adjustment for:
Foreign currency exchange differences
Depreciation
Amortisation
Shares issued to employees
Share‐based payments
Interest expense in investing and financing activities
Operating loss before working capital changes
(Increase)/Decrease in receivables
(Decrease)/Increase in trade and other payables
(Increase)/Decrease in Inventories
Net cash used in operating activities
(3,998,031)
1,057,148
‐
‐
2,106,636
44,737
(18,419,670)
(963,226)
(3,341,010)
(6,260,252)
(28,984,158)
1,076,721
1,991,130
‐
‐
2,823,225
29,563
(40,673,820)
4,845,323
15,409,136
‐
(20,419,361)
Non‐cash investing activities during the current or prior financial periods are as disclosed in the above. Non‐cash
financing transactions during the current and prior financial periods are detailed in:
Note 12 (settlement of JV milestone payment as disclosed and Issue of shares to non‐controlling
interests in prior period as disclosed).
Note 13 and 14 – share based payment
24. LOSS PER SHARE
Basic loss per share (cents per share)
Loss after income tax attributable to the owners of Tietto Minerals
Limited
Weighted average number of ordinary shares
01 Jul 22
to
31 Dec 22
$
01 Jul 21
to
30 Jun 22
$
(1.62)
(7.14)
(16,743,802)
(46,149,579)
Number
1,034,969,571
Number
652,364,579
Diluted loss per share has not been calculated as the result does not increase loss per share.
73
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Notes to the Consolidated Financial Statements
25. TRANSACTION WITH NON‐CONTROLLING INTEREST
At 30 June 2021 Tiebaya Gold Sarl held a 85% interest in the Abujar gold project mining licence. Of the remaining
15%; 10% of the interest was owned by the Cote D’Ivoire government and the remaining 5% split equally
between Mr Bamba and Mr N’Kanza.
During 2021 an agreement was reached allowing Tietto Group to acquire an additional 3% interest in the mining
licence from Mr Bamba and Mr N’Kanza in consideration for:
The issue of 3,750,000 ordinary shares in Tietto to each of Mr Bamba and Mr N’Kanza at a deemed issue
price of $0.62 per share;
The issue of 2,500,000 options exercisable at $0.62 expiring three years from the date of issue to each
of Mr Bamba and Mr N’Kanza; and
Cash payment of US$200,000 to each of Mr Bamba and Mr N’Kanza.
This agreement was finalised in the financial year ending 30 June 2022:
On 4 February 2022, the Company issued 7,500,000 ordinary shares to non‐controlling interests
(shareholders of SML) in consideration for 3% interest in the Abujar Mining Licence. The shares had a
value of $4,650,000.
On the same date 5,000,000 options were also issued, the options were valued at $1,090,000.
In addition, a cash payment of US$400,000 was made.
Carrying amount of non‐controlling interests acquired
Consideration paid to non‐controlling interests:
Cash consideration
Shares issued 4 February 2022
Options issued 4 February 2022
Excess of consideration paid to non‐controlling interests recognised in
other reserve within equity
There were no transactions with NCI during the current financial period.
26. EVENTS SUBSEQUENT TO REPORTING DATE
30 June 2022
‐
560,739
4,650,000
1,090,000
6,300,739
(6,300,739)
On 13 January 2023, 7,000,000 shares were issued on conversion of options expiring 22 January 2023 with an
exercise price of $0.30.
On 23 January 2023, 1,000,000 shares were issued on conversion of options expiring 22 January 2023 with an
exercise price of $0.30.
On 20 February 2023 4,000,000 options were issued, which are exercisable at $0.80 and expire 31 December
2024. These options were issued in connection with unsecured loan facility.
On 20 March 2023 Mark Strizek resigned as a director of the Company. On the same date, Chief Operating Officer
Matthew Wicox was appointed as Executive Director.
On 28 March 2023, the maturity of the loans from Kongwell Management Limited and Dr. Minlu Fu (as disclosed
in note 21) was extended from 6 months to 9 months.
There has not been any other matter or circumstance occurring subsequent to the end of the financial year that
has significantly affected, or may significantly affect the operations of the Group, the results of those operations,
or the state of affairs of the Group in future financial periods.
74
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
Directors’ Declaration
The directors of the Company declare that:
1) The attached financial statements notes thereto comply with the Corporations Act 2001, The Australian
Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements ; and
a) Comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board as described in Notes 2 and 3 to the financial statements;
b) Give a true and fair view of the Group’s financial position as at 31 December 2022 and of its
performance for the financial period ended on that date; and
2) There are reasonable grounds to believe that the group will be able to pay its debts as and when they
become due and payable.
3) The directors have been given the declarations required by section 295A of the Corporation Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act
2001.
On behalf of the Directors
Caigen Wang
Managing Director
Dated at Perth this 31st day of March 2023
75
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Tietto Minerals Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Tietto Minerals Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 31 December 2022, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the period then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2022 and of its
financial performance for the period ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
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. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Accounting for Property, Plant and Equipment
Key audit matter
How the matter was addressed in our audit
Our audit procedures in this area included, but
were not limited to:
•
Reviewing Board minutes and ASX
announcements to understand the
operational activity relating to the
project;
• Obtaining the period end reconciliation
of assets under construction and
agreeing a sample of items to supporting
source documentation;
• Assessing the appropriateness of the
classification of expenditure as either
operating or capital;
• Considering whether any facts or
circumstances existed indicating that
impairment testing was required under
AASB 136; and
• Assessing the adequacy of the related
disclosures in the financial statements.
The Group has significantly increased its
development expenditure on the Abujar Gold
Project during the period as reflected in Note 9.
This is a key audit matter due to:
• The size of the ‘Assets under
construction’ represents 81% of the
Group’s total assets as at 31 December
2022; and
• During the period the Group capitalised
significant construction expenditure as
Property, Plant and Equipment.
Assets under construction are recorded by the
Group in accordance with AASB 116 Property,
Plant and Equipment (“AASB 116”). The standard
prescribes that expenditure shall be recognised as
an asset if, and only if:
a)
It
is probable that future economic
benefits associated with the item will flow
to the entity; and
b) The costs of the item can be measured
reliably
Additionally, this was determined to be a key
audit matter due to the significant judgement
applied in determining whether impairment
indicators exist in accordance with the AASB 136
Impairment of Assets (“AASB 136”).
2
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the period ended 31 December 2022, but does not include
the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or 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:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
3
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 27 to 33 of the directors’ report for the
period ended 31 December 2022.
In our opinion, the Remuneration Report of Tietto Minerals Limited, for the period ended 31 December
2022, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Jarrad Prue
Director
Perth
31 March 2023
4
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
ASX Additional Information
Information as at 27 February 2023
(a) Distribution of Shareholders
Category (size of holding)
Number of Holders Number of Shares
% Issued Share
Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
209
1,009
567
1,381
514
3,680
111,834
2,849,003
4,609,114
53,432,674
0.01%
0.26%
0.42%
4.91%
1,026,524,865
94.39%
1,087,527,490
100.00%
Based on the share price ($0.675 on 24 February 2023), the number of shareholdings held in less
than marketable parcels is 123.
(b) Distribution of Unquoted Securities
UNL OPT @ $0.62 EX 01/08/24
UNL OPT @ $0.39 EX 21/05/24
Category (size of holding) No. of Holders % Issued Capital No. of Holders % Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
‐
‐
‐
‐
1
1
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
‐
‐
‐
‐
1
1
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
UNL OPT @ $0.41 EX 17/01/25
UNL OPT @ $0.62 EX 04/02/25
Category (size of holding) No of Holders % Issued Capital No of Holders % Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
‐
‐
‐
‐
4
0.00%
0.00%
0.00%
0.00%
100.00%
‐
‐
‐
‐
2
0.00%
0.00%
0.00%
0.00%
100.00%
80
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
ASX Additional Information
Total
4
100.00%
2
100.00%
UNL OPT @ $0.53 EX 01/07/25
UNL OPT @ $0.80 EXP 31/12/2024
Category (size of holding) No of Holders % Issued Capital No of Holders % Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
‐
‐
‐
‐
2
2
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
‐
‐
‐
‐
2
2
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
PERF RIGHTS CLASS B‐ EXP
22/12/2023
PERF RIGHTS CLASS E‐ EXP
21/05/2024
Category (size of holding) No of Holders % Issued Capital No of Holders % Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
‐
‐
‐
‐
6
6
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
‐
‐
‐
‐
1
1
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
PERF RIGHTS CLASS F‐ EXP
21/05/2024
PERF RIGHTS CLASS G ‐ EXP
01/08/2024
Category (size of holding) No of Holders % Issued Capital No of Holders % Issued Capital
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
‐
‐
‐
‐
1
0.00%
0.00%
0.00%
0.00%
100.00%
‐
‐
‐
1
‐
0.00%
0.00%
0.00%
100.00%
0.00%
81
TIETTO MINERALS LIMITED FINANCIAL REPORT 2022
ASX Additional Information
Total
1
100.00%
1
100.00%
PERF RIGHTS CLASS H ‐ EXP
30/11/2024
PERF RIGHTS CLASS I and J ‐ EXP
17/01/2025
Category (size of holding) No of Holders % Issued Capital No of Holders % Issued Capital
‐
‐
‐
‐
1
1
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Total
(c) Voting rights
0.00%
0.00%
0.00%
0.00%
100.00%
100.00%
‐
‐
‐
1
3
4
0.00%
0.00%
0.00%
6.25%
93.75%
100.00%
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.
Options
There are no voting rights attached to any class of options that are on issue.
Performance Rights
There are no voting rights attached to any class of Performance Rights that are on issue.
(d) 20 Largest Shareholders — Ordinary Shares as at 27 February 2023
Rank Name
Ordinary
Shares Held
% of
Issued
Capital
1
2
3
4
5
CITICORP NOMINEES PTY LIMITED
166,404,708
15.30%
BNP PARIBAS NOMINEES PTY LTD
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