ANNUAL REPORT
FOR THE YEAR ENDED 31 MARCH 2024
ABN 18 124 462 826
CONTENTS
CORPORATE DIRECTORY ........................................................................................................................................................ 2
REVIEW OF OPERATIONS ........................................................................................................................................................ 3
DIRECTORS’ REPORT .................................................................................................................................................................17
AUDITORS’ INDEPENDENCE DECLARATION .............................................................................................................. 25
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ..... 26
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................................... 28
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..................................................................................... 29
CONSOLIDATED STATEMENT OF CASH FLOWS ...................................................................................................... 31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................................................. 32
DIRECTORS’ DECLARATION ................................................................................................................................................ 67
INDEPENDENT AUDITOR’S REPORT .................................................................................................................................68
ADDITIONAL SECURITIES EXCHANGE INFORMATION ........................................................................................ 73
TREK METALS LIMITED | ANNUAL REPORT 2024
2
CORPORATE DIRECTORY
DIRECTORS/MANAGEMENT
Tony Leibowitz Non-Executive Chairman
John Young
Non-Executive Director
Neil Biddle
Non-Executive Director
Valerie Hodgins Non-Executive Director
Derek Marshall Chief Executive Officer
COMPANY SECRETARY
Bermuda
Apex Corporate Services Ltd.
Vallis Building, 4th Floor
58 Par-la-Ville Road
Hamilton HM 11
Bermuda
Australia
(Local Agent and Company Secretary)
Russell Hardwick
REGISTERED OFFICE OF INCORPORATION
Trinity Hall
43 Cedar Avenue
Hamilton HM 12
BERMUDA
REGISTERED OFFICE – AUSTRALIA
Suite 5, 2 Centro Avenue
Subiaco WA 6008
AUSTRALIA
Tel: +61 8 6383 7844
POSTAL ADDRESS
P.O Box 8209
Subiaco East WA 6008
AUSTRALIA
SHARE REGISTRY
Computershare Investor Services Pty Ltd
GPO Box D182
Perth WA 6841
AUSTRALIA
Tel: +61 8 9323 2000
AUDITORS
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco
WA 6008
WEBSITE
www.trekmetals.com.au
TREK METALS LIMITED | ANNUAL REPORT 2024
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REVIEW OF OPERATIONS
The year to 31 March 2024 has been an exciting period for Trek Metals Limited (“Trek” or “the
Company”), with the acquisition of two exceptional new growth opportunities – the Christmas
Creek Gold & Rare Earths Project in the Kimberly region of WA and the highly prospective
McEwen Hills Niobium Project in Central Australia – and a reassessment of the Pincunah Project
in the Pilbara highlighting an outstanding new gold target.
The Christmas Creek Project represents a district-scale exploration opportunity, associated
with a major continental-scale tectonic lineament intersection. The Project previously formed
part of Newmont’s suite of exploration assets, with the tenements thought to represent a
potential extension of the prolific Granites-Tanami Orogen, with metasediments in the area
showing a correlation to the geological sequences that host Newmont’s globally significant
Tanami Gold Mine.
As part of its acquisition of the Christmas Creek Project, Trek inherited nearly $6 million of high-
quality exploration work and data that was performed to a very high standard by Newmont.
Trek has recently commenced initial fieldwork programs at Christmas Creek, with drilling
expected to commence in the September 2024 Quarter.
In addition to Christmas Creek, the Company also secured a high-quality niobium exploration
opportunity through the acquisition of an 80% interest in the McEwen Hills Niobium Project in
the West Arunta province in central Australia.
McEwen Hills lies along strike from WA1 Resources’ (ASX: WA1) Luni niobium discovery, one of
Australia’s most exciting junior discoveries in recent years.
At the Pincunah Project, surface geochemistry analysis over the previously defined ‘Conductor
A’ target revealed a favourable zone that is interpreted to represent the cap of a buried
epithermal gold system. This prospect has been renamed ‘Champagne Pool’. An initial drill
program was completed at Champagne Pool subsequent to the end of the reporting period.
As a result of the exciting new opportunities identified over the past 12 months, the Company
has commenced a strategic review of its remaining asset portfolio (including lithium,
manganese and nickel-copper assets) to pursue alternative development pathways,
including joint venture arrangements and/or potential divestment.
TREK METALS LIMITED | ANNUAL REPORT 2024
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CHRISTMAS CREEK PROJECT (KIMBERLEY, WESTERN AUSTRALIA)
Trek secured a district-scale greenfields gold and rare earths exploration opportunity in the
Kimberley Region of Western Australia during the reporting period through the acquisition of
the Christmas Creek Project, located south-west of Halls Creek in the Kimberly region of
Western Australia.
The Christmas Creek Project represents a previously unexplored, largely concealed district-
scale gold and rare earths exploration opportunity, associated with a major continental-scale
tectonic lineament intersection. The Project covers a total area of 1,183km2, all of which is
covered by Heritage Access Agreements, with total exploration expenditure to date of ~$5.7
million.
The Project previously sat within Newmont’s suite of exploration projects, held under a joint
venture with Archer X Pty Ltd. Under the previous joint venture and earn-in agreement,
Newmont successfully earned a 75% interest in the Project. Newmont subsequently
relinquished that interest following a rebalancing of its global exploration portfolio, returning
the Project to 100% Archer X ownership.
Archer X targeted the area as it believed it may be an extension of the structures that control
mineralisation in the prolific Granites-Tanami Orogen (Figure 1), exposed as a basement high,
with metasediments in the area showing a correlation to the Tanami host sequences.
Newmont’s Tanami mine in the Northern Territory is of global significance, with Proven and
Probable Reserves of 5.7Moz, with an additional 4.2Moz in Resources (as at 31st December 2022,
refer to Newmont news release from 23rd February 2023). The Tanami mine has been owned
and operated by Newmont since 2002, producing an average of 500koz of gold each year.
Trek completed the acquisition of the Christmas Creek Project in December 2023. In addition,
the Company also secured additional tenement applications to add to this district-scale
greenfields gold and rare earths exploration project.
Following the completion of the project acquisition, the Trek team has been working through
the considerable historical data package to build a work plan.
TREK METALS LIMITED | ANNUAL REPORT 2024
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Figure 1: Continental scale context and location map for the Christmas Creek Project, located at the
intersection of G3 and G5 metallogenic lineament corridors, potentially representing the intersection
of the Granites-Tanami Orogen & the Halls Creek Orogen.
TREK METALS LIMITED | ANNUAL REPORT 2024
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Figure 2: Gold heatmap as defined by Deep Sensing Geochemistry (DSG) surface geochemistry
across the project area, highlighting the four main prospect areas; Coogan, Martin, Zahn & Willis – all
with planned drilling this year.
Field activities are planned to commence in the June 2024 Quarter, with drilling anticipated to
commence in the September 2024 Quarter at:
•
Willis: a strong, cohesive multi-element soil anomaly yet to be drill tested.
•
Zahn: where new soil data has highlighted an untested zone to the north of previous
drilling, including the highest raw gold values seen across the entire Project area.
•
Coogan: untested core of a large structure with previously drill lines 1km apart.
•
Martin: with drilling designed to follow up previous intercepts including: 7m @ 4.90g/t Au
and 2m @ 9.65g/t Au.
For additional information readers are referred to ASX release TKM 11th October 2023 “Trek
secures transformational acquisition of advanced district-scale gold and rare earths project”.
The proposed drill area and associated access into the Willis Prospect will likely require a
cultural heritage survey prior to ground disturbing activities. Trek attended a meeting with the
Traditional Owner claimant group (Jaru) in mid-March 2024 to discuss the Company’s
proposed activities.
It is important to note that the project vendor, Archer X Pty Ltd (Archer), now a wholly-owned
subsidiary of Trek, has an existing Heritage Agreement with the Jaru and the proposed Coogan
and Martin drill areas are located within previously cleared heritage polygons in an area under
an existing Heritage Agreement between Archer at the Yi-Martuwarra Ngurrara claimant
group.
TREK METALS LIMITED | ANNUAL REPORT 2024
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Numerous early-stage soil and mapping programs to follow-up gold, lithium-caesium-
tantalum (LCT) and Rare Earth Element (REE) targets have also been designed in preparation
for the upcoming field season.
PINCUNAH PROJECT (PILBARA, WESTERN AUSTRALIA)
The Pincunah Project, which includes the Valley of the Gossans (VOG) and Champagne Pool
Prospects, (E45/4909 & E45/4917) is located 100km south of Port Hedland and proximal to
numerous operating mines, including Pilgangoora (Pilbara Minerals), Iron Bridge (FMG) and
Abydos (Atlas).
Trek has been active at the Pincunah Project since 2020 with a drilling program completed in
2021 that highlighted the potential for a large-scale VMS base metal system (refer ASX: TKM
13th October 2021).
The drilling at VOG intersected multiple horizons of mineralisation and alteration, with highly
anomalous zinc, copper and silver, plus multiple pathfinder elements indicating a large
hydrothermal mineralised system.
Subsequent to the VOG drilling, Trek completed an airborne EM survey and extended surface
geochemistry to cover the EM targets, with assay results confirming coincident EM and
geochemical anomalies. The surface geochemistry results significantly upgrade the
prospectivity of airborne EM conductive target ‘A’ (refer ASX: TKM 16th November 2021) as a
compelling target along strike from the VOG discovery (Figure 3).
Ongoing analysis of the surface geochemistry over ‘Conductor A’ revealed a more compelling
target with the element association consistent with a low temperature epithermal ‘cap’, with
the refined target at the prospect renamed ‘Champagne Pool’.
Defined by the combination of Zn-Hg-Te-(Fe-In), with low level gold, the Champagne Pool
target is a discrete bullseye target that covers an area of 750m x 200m, with a halo of Hg
grading out to lower temperature antimony.
As an indication of the strength of the Hg-Te anomalism, Hg assay results reach a peak of
15.3ppm within the Champagne Pool Prospect against a crustal average abundance of
0.085ppm 1 , and Te reaches a maximum assay of 0.26ppm against the crustal average
abundance of 0.001ppm1.
1 ABUNDANCE OF ELEMENTS IN THE EARTH’S CRUST AND IN THE SEA, CRC Handbook of Chemistry and Physics, 97th edition (2016–
2017), p. 14-17)
TREK METALS LIMITED | ANNUAL REPORT 2024
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Figure 3: Geochemical coverage of Valey of Gossans and Champagne Pool (previously Conductor A)
Prospects over geology
Gold is included in the element association of the Champagne Pool Prospect; however it is
subtle, which is regarded as a good sign as it confirms that it is an auriferous system.
Epithermal systems have sharp grade boundaries, so low grade gold suggests that the target
may be reached with relatively shallow drilling.
Three holes were proposed for the initial test with a planned depth of ~250m each (Figure 4).
TREK METALS LIMITED | ANNUAL REPORT 2024
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Figure 4: Champagne Pool Prospect classified surface geochemical dots with the anomalous target
area (red circle), EM plates (green), and initial planned drilling over merged magnetic/aerial
imagery.
Drilling at Champagne Pool was completed in April 2024 to test beneath the coincident
geochemical/ geophysical anomaly and collect samples for analysis that are hoped will
confirm the epithermal gold mineralisation model and herald a new discovery for this
potentially very valuable style of mineralisation. Assay results were pending at the time of
writing and will be released once available.
MCEWEN HILLS NIOBIUM PROJECT (WEST ARUNTA, NORTHERN
TERRITORY)
Trek secured the highly prospective McEwen Hills Niobium Project, located in the heart of the
West Arunta Critical Minerals Province, during the September 2023 Quarter. The McEwen Hills
Project is located along strike from the Tier-1 Luni niobium discovery of WA1 Resources (ASX:
WA1), with the acquisition giving Trek a strategic position in the heart of this emerging critical
minerals province.
Trek has secured an immediate 80% interest in the Tenement application, with the original
project owners, Gempart (NT) Pty Ltd, being free-carried through to a Definitive Feasibility Study
(DFS). There was no upfront cost payable by Trek to secure its 80% interest in Tenement
application.
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ELA 33191 is located in Central Australia, Northern Territory and comprises of some 250 sub
blocks for a total area of 779km2. The area is highly prospective for a suite of elements including
nickel, gold, cobalt, copper, lead, zinc and niobium.
Of particular interest is the Project’s niobium potential. The global outlook for niobium remains
exceptionally positive. As a critical element in high-tech industries – particularly within the
aerospace, automotive, and electronics sectors – the demand for niobium continues to surge.
Its unique properties, such as enhancing the strength and heat resistance of alloys, make it
indispensable in advanced manufacturing processes. Moreover, niobium plays a pivotal role
in the production of superalloys used in jet engines and rocket propulsion systems.
As the world increasingly focuses on sustainable technologies and the electrification of
transportation, niobium's importance in enabling lightweight and durable materials for
batteries and alternative energy sources is expected to grow. This sustained demand,
combined with limited primary niobium production, underscores the promising outlook for the
metal, making it a key strategic resource for industries at the forefront of innovation and
sustainability.
The proximity pf the McEwen Hills Project to WA1's world-class niobium discovery further
supports this potential. WA1's discovery has already garnered significant global attention for its
exceptionally high-grade niobium deposit.
The Luni discovery is a niobium-rich carbonatite under thin sand cover, with the morphology
lending itself to a bulk mining operation of a globally significant scale. The geographical
proximity of ELA 33191, situated along the same geological strike, considerably enhances the
potential of encountering a similar high-grade niobium occurrence.
Following the acquisition, the Company has progressed discussions with the Traditional
Owners to secure land access agreements. An on-country meeting took place in May 2024.
Trek intends to undertake airborne and ground-based geophysical surveys prior to on-country
heritage surveys and drill testing.
Figure 5: Magnetic imagery highlighting the continuity of the geology across the state border, with
the Luni & Crean Niobium (Nb) carbonatite discoveries of WA1 & ENR on the Western Australian side,
and Trek’s McEwen Hills Project (ELA33191) on the Northern Territory side, of the West Arunta Critical
Minerals Province.
TREK METALS LIMITED | ANNUAL REPORT 2024
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HENDEKA MANGANESE PROJECT (PILBARA, WESTERN AUSTRALIA)
During the reporting period, metallurgical test work was undertaken on diamond core from the
100%-owned Hendeka Manganese Project in the Pilbara region of Western Australia to evaluate
the opportunity to produce manganese concentrate for the steel industry, as well as
investigate the potential to convert the feed into high-value High Purity Manganese Sulphate
Monohydrate (HPMSM) that is used in the manufacture of lithium-ion batteries.
The test work program included diagnostic testing to determine the optimum crush size; bulk
test work comprising scrubbing, wet screening and Dense Media Separation; and an Ore
Sorting test work program.
Full details of the metallurgical test work program were provided in the Company’s ASX
Announcement dated 27 October 2023.
The Company believes that this body of work yielded positive results in respect to the quality
and quantity of material that can be produced from the Hendeka Project.
The aims of these test work programs were satisfied, with verification that the Hendeka ore can
be upgraded to a potential product of >30% Mn contained, with the potential for significant yield
improvements to be obtained over those reported in the previous study and sufficient
information generated from this program to select a metallurgical process flowsheet to be
tested and optimised.
Material generated during this test work was submitted to ALS to undergo hydrometallurgical
test work to assess the production of high-purity manganese sulphate monohydrate (HPMSM)
with the aim to produce battery grade product that would be suitable for the lithium-ion
battery market.
After taking into consideration current market conditions and investor sentiment, the Trek
Board has resolved to pursue alternative pathways for the Hendeka Project, including through
potential joint ventures, external funding arrangements or divestment.
TAMBOURAH LITHIUM PROJECT (PILBARA, WESTERN AUSTRALIA)
The Tambourah Lithium Project is located 70km south-east of Pilbara Minerals’ (ASX: PLS)
world-class Pilgangoora lithium mine site in the Pilbara region of Western Australia. Trek’s
extensive landholding at Tambourah comprises two Exploration Licences (E45/5484 &
E45/5839) which are 100%-owned by ACME Pilbara Pty Ltd, a wholly owned subsidiary of Trek
Metals Ltd.
During the reporting period, Trek completed its maiden drill program at Tambourah with 20
holes for a total of 4,093m (refer: ASX TKM 4th October 2023). The program intersected
significant lithium grades in pegmatite, however the thicknesses of the intervals were typically
narrow. Most holes targeted outcropping pegmatites, with one hole (TARC020) targeting a
structural break identified in aeromagnetic data. Encouragingly TARC020 intersected a
substantial width of pegmatite (55m downhole), opening up the large Central Prospect area
as a priority search space for follow-up drilling.
TREK METALS LIMITED | ANNUAL REPORT 2024
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After taking into consideration current market conditions and investor sentiment, the Trek
Board has resolved to pursue alternative pathways for the Tambourah Project, including
potential joint ventures, external funding arrangements or divestment.
JIMBLEBAR PROJECT (PILBARA, WESTERN AUSTRALIA)
The Jimblebar Project comprises Exploration Licences E52/3605, E52/3672, E52/3983 and
E52/4051 (the “Tenements”). The Project is located 40km south-east of Newman and includes
the western arm of the Jimblebar greenstone belt, a constituent of the Achaean Sylvania Inlier.
The Project is considered highly prospective for magmatic nickel-copper sulphide
mineralisation.
Rio Tinto Exploration Pty Limited (“RTX”) entered into an Option Agreement to explore the
tenements in May 2023.
During the reporting period, Rio Tinto Exploration Pty Limited (“RTX”) undertook exploration
activities on exploration licence E52/3672 focused on assessing the potential for the mafic and
ultramafic rocks in the eastern part of the licence to host magmatic nickel-copper-PGE
sulphide mineralisation.
The Ground-EM moving loop data did not identify any conductivity anomalies that would be
consistent with a massive sulphide body. In addition, the coincident rock chip samples (15 total)
contained only low levels of nickel and platinum group element anomalism.
After completion of the initial 6-month option period, RTX advised that they had met the
minimum commitment after undertaking exploration expenditure to the value of A$144,716,
however, decided not to proceed further with a Farm-in to the Jimblebar project. RTX have also
confirmed that they will transfer to Trek, the rock chip/soil sampling data, the ground
electromagnetic data and associated reports. Trek retains 100% of the rights to the Jimblebar
Nickel-Copper Project.
After taking into consideration current market conditions and investor sentiment, the Trek
Board has resolved to pursue alternative pathways for the Jimblebar Project, including through
potential joint ventures, external funding arrangements or divestment.
TREK METALS LIMITED | ANNUAL REPORT 2024
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MINERAL RESOURCES STATEMENT – ANNUAL REVIEW
The Hendeka project has a JORC (2012) Inferred Mineral Resource Estimate (MRE) of 11.3Mt
grading 15.0% Mn for the Contact and Contact North deposits (refer ASX Release 6 June 2022
for additional information).
Global Inferred Mineral Resource Estimate for Contact and Contact North deposits
Summary of Inferred Mineral Resources (1)
Tonnes
(Mt)
Mn%
Al2O3%
Fe%
SiO2%
P%
LOI (1000)
Contact
2.8
13.6
5.1
15.7
42.9
0.054
8.4
Contact North
8.5
15.4
3.0
15.0
42.4
0.057
8.6
TOTAL
11.3
15.0
3.5
15.2
42.5
0.057
8.5
(1) Mineral Resources reported at a cut-off grade of 10.1% Mn
Other than the Metallurgical test work completed, there were no further drilling activities
conducted during the reporting period. Mineral Resource estimates are compiled by
Independent consultants following industry standard methodologies and techniques. The
information in this report that relates to the Hendeka Mineral Resource is based on information
compiled by Mr. Lynn Widenbar, Principal Consultant of Widenbar and Associates Pty Ltd., who
is a Member of the AusIMM and the AIG. There were no changes to the Hendeka Mineral
Resource Estimate during the year.
CORPORATE
ACQUISITION OF CHRISTMAS CREEK PROJECT
As outlined above, during the reporting period Trek signed a Binding Heads of Agreement
(“Agreement”) to acquire 100% of the issued capital of Archer X Pty Ltd (“Archer”), the owner of
tenements E80/4975, E80/5082, E80/5083, E80/5427, E80/5914 (App) (collectively, the
Christmas Creek Project).
The consideration for the acquisition of Archer was:
Upfront Consideration
i.
Payment of $250,000;
ii.
Cash payment as reimbursement for all costs and expenditure incurred by Archer in
respect to the tenements during the period between 17 September 2023 and Settlement;
iii.
Issue of $500,000 worth of fully paid ordinary shares in the capital of Trek (TKM Shares)
based on the 20-day volume weighted average price (VWAP) measured on the date
which is two days prior to the date of execution of the agreement; and
iv.
Payment of a 1.25% net smelter royalty for all minerals produced in respect of the
Tenements to the Shareholders of Archer. Under the terms of the Royalty, upon a
decision to mine being made at the Tenements, Trek will have the exclusive right to
purchase the Royalty for $5,000,000.
TREK METALS LIMITED | ANNUAL REPORT 2024
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Deferred Consideration
i.
Issue of $500,000 worth of fully paid ordinary shares in the capital of Trek based on the
20-day (VWAP) measured on the date which is two days prior to the date of issue;
ii.
Issued with a floor price of $0.08;
iii.
Issued on the date that is 12 months from the date of settlement;
iv.
Any shares issued will be subject to an escrow period of 6 months from the date of issue.
Milestone Consideration
i.
Subject to and conditional upon an announcement by Trek to ASX within 5 years of the
date of the Agreement, of the delineation by Trek of a 2,000,000 ounce gold equivalent
resource as verified by an independent competent person under the 2012 JORC code
(JORC Code), the issue of $5,000,000 worth of fully paid ordinary shares in the capital of
Trek based on the 20-day (VWAP) measured on the date which is two days prior to the
date of issue:
ii.
Any shares issued have a floor price of $0.15 and will be subject to an escrow period of
6 months from the date of issue.
ACQUISITION OF MCEWEN HILLS PROJECT
During the Quarter, the Company’s wholly-owned subsidiary, ELM Resources Pty Ltd, entered
into an acquisition agreement with Gempart (NT) Pty Ltd over Exploration Licence application
ELA 33191 in the Northern Territory.
Following the receipt of Ministerial approval, Elm Resources Pty Ltd is now officially recorded as
80% owner of Exploration Licence application EL33191.
Subject to the grant of the Tenement, Trek and Gempart will form an unincorporated joint
venture for the purposes of exploring the Tenement, and the respective joint venture interests
of the parties will be Gempart – 20%/ Trek – 80%.
Trek will be responsible for, and will use its reasonable endeavours to, progress the Tenement
to grant. Trek will not be liable to Gempart if the Tenement is not granted in a timely manner or
at all. Gempart will be free-carried for its 20% until completion of a Definitive Feasibility Study.
CAPITAL RAISING
Trek completed a strongly supported capital raising of A$7.5 million (before costs) during the
reporting period to accelerate its exploration programs. The share placement was undertaken
to existing and new sophisticated, professional, and institutional investors and raised a total of
$7,500,000 (before costs) through the issue of a total of 125,000,000 Shares at an issue price of
$0.06 per Share. In addition, the Company also issued Investors one (1) free attaching New
Option for every three (3) Shares subscribed for by Investors under the Placement. The Options
are exercisable at $0.085 and expire 14th August 2025.
TREK METALS LIMITED | ANNUAL REPORT 2024
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FINANCIAL REVIEW
The group began the year with $2,704,166 in cash and ended the year with $5,552,999 in cash.
During the period the Company raised $7,500,000 (before costs) through the issue of a total of
125,000,000 Shares at an issue price of $0.06 per Share.
During the year the company expended $2,804,632 (2023: $1,453,582) on Exploration and
Evaluation expenditure that was capitalised during the year.
The Group incurred a loss for the year of $1,705,090 (2023 Loss: $3,990,953). Significant
expenditure items during the period include:
−
Exploration and evaluation expensed of $75,945 (2023: $301,089);
−
Directors’ salaries and Consulting Fees of $391,675 (2023: $291,711); and
−
Share based payment of $543,125 (2023: $676,595).
Subject to the disclosures elsewhere in this report, the Directors believe the Group is in a stable
financial position to continue to explore its projects and to identify new opportunities within the
resources sector.
Lastly, I would like to thank all our staff, consultants and stakeholders for their ongoing efforts
on behalf of the Company and look forward to progressing our projects to create value for
shareholders.
Derek Marshall
Chief Executive Officer
21 May 2024
TREK METALS LIMITED | ANNUAL REPORT 2024
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COMPETENT PERSONS STATEMENT
The information in this report relating to Exploration Results is based on information compiled
by the Company’s Chief Executive Officer, Mr Derek Marshall, a Competent Person, and Member
of the Australian Institute of Geoscientists (AIG). Mr Marshall has sufficient experience relevant
to the style of mineralisation and to the type of activity described 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 Marshall has disclosed that he holds or
controls Shares and Performance Rights in the Company. Mr Marshall consents to the inclusion
in this announcement of the matters based on his information in the form and content in which
it appears.
Hendeka Mineral Resource
The information in this Report contains references to Edge’s 2012 JORC Mineral Resources at the
Hendeka Project and is extracted from Trek’s ASX Release and Public Report of 6 June 2022. The
Company confirms that it is not aware of any new information or data that materially affects
the information included in the relevant market announcement. In the case of estimates of
Mineral Resources or Ore Reserves, the Company confirms that all material assumptions and
technical parameters underpinning the estimates in the relevant market announcements
continue to apply and have not materially changed.
TREK METALS LIMITED | ANNUAL REPORT 2024
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DIRECTORS’ REPORT
The Directors present their report and the audited financial statements of Trek Metals Limited
(“TKM”, “Trek” or the “Company”) and its controlled entities (“Group”) for the year ended 31
March 2024.
PRINCIPAL ACTIVITIES
The principal activities of the Company and its subsidiaries (“the Group”) is to progress the
exploration of its mineral properties and to identify suitable acquisitions in the mineral
resources sector.
RESULTS AND DIVIDEND
The loss for the Group for the year ended 31 March 2024 was $1,705,090 (31 March 2023:
$3,990,953). The Directors do not recommend the payment of a dividend.
DIRECTORS
The following persons held office as directors during the financial year and to the date of this
report. Directors were in office for the entire period and to the date of this report unless
otherwise stated:
Name,
qualifications and
independence
status
Experience, special responsibilities and other Directorships in
listed entities
Tony Leibowitz
Non-Executive
Chairman
(Independent)
Appointed
4 September 2020
Experience
Mr Leibowitz has over 30 years of corporate finance, investment
banking and broad commercial experience and has a proven track
record of providing the necessary skills and guidance to assist
companies grow and generate sustained shareholder value.
Previous roles include Chandler Macleod Limited and Pilbara
Minerals Limited, where as Chairman and an early investor in both
companies, he was responsible for substantial increases in
shareholder value and returns. Mr Leibowitz was also a global
partner at PricewaterhouseCoopers and chaired the board of
Bardoc Gold prior to the takeover by St Barbara Limited. Mr Leibowitz
is a Fellow of the Institute of Chartered Accountants in Australia.
Special responsibilities
None
Directorships held in other listed entities during the three years
prior to the current year
•
Ensurance Limited (resigned 17 November 2023)
•
Bardoc Gold Limited (resigned 13 April 2022)
•
Greenvale Mining Limited (resigned 31 December 2022)
•
Astute Metals NL (Previously Astro Resources NL)
Director Holdings
•
Shares – 23,883,582
•
Options – 1,383,333
•
Performance Rights – 3,000,000
TREK METALS LIMITED | ANNUAL REPORT 2024
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Neil Biddle
Non-Executive
Director
(Independent)
Appointed
4 September 2020
Experience
Mr Biddle is a geologist and Corporate Member of the Australasian
Institute of Mining and Metallurgy and has over 30 years’
professional and management experience in the exploration and
mining industry. Mr Biddle was a founding Director of Pilbara Minerals
Limited, serving as Executive Director from May 2013 to August 2016,
serving as a Non-Executive Director from August 2016 to 26 July 2017.
Throughout his career, Mr Biddle has served on the Board of several
ASX listed companies, including Managing Director of TNG Ltd from
1998 - 2007, Border Gold NL from 1994 - 1998 and Consolidated
Victorian Mines from 1991 – 1994. Mr Biddle served on the board of
Bardoc Gold Limited prior to the takeover by St Barbara Limited.
Special responsibilities
None
Directorships held in other listed entities during the three years
prior to the current year
•
Bardoc Gold Limited (resigned 13 April 2022)
•
Greenvale Mining Limited
•
TNG Limited (resigned 28 November 2022)
Director Holdings
•
Shares – 15,742,467
•
Options – 1,111,111
•
Performance Rights – 3,000,000
John Young
Non-Executive
Director
(Non-Independent)
Appointed
2 September 2019
Experience
Mr Young has a Bachelor of Applied Science (Geology) and is a
member of AusIMM. He is a highly experienced geologist who has
worked on exploration and production projects encompassing gold,
uranium, tungsten, molybdenum, tantalum and lithium.
Mr Young’s corporate experience includes appointments as Chief
Executive Officer of Marenica Energy Limited and CEO and Director
of Thor Mining PLC. Mr Young was Pilbara Minerals Exploration
Manager from June 2014 until August 2015, appointed Technical
Director in September 2015 and transitioned to Non-Executive
Director in July 2017 until his resignation in April 2018. Mr Young served
on the board of Bardoc Gold Limited, prior to the takeover by St
Barbara Limited.
Special responsibilities
None
Directorships held in other listed entities during the three years
prior to the current year
•
Green Technology Metals
•
Mosman Oil & Gas Limited (resigned 4 September 2023)
•
Rarex Limited
•
Bardoc Gold Limited (resigned 13 April 2022)
•
Astute Metals NL (Previously Astro Resources NL)
Director Holdings
•
Shares – 8,526,607
•
Options – 277,777
•
Performance Rights – 6,000,000
TREK METALS LIMITED | ANNUAL REPORT 2024
19
Valerie Hodgins
Non-Executive
Director
(Independent)
Appointed
1 July 2022
Experience
Ms Hodgins is a highly experienced commercial lawyer with a strong
governance and commercial background. Before undertaking legal
studies, she worked in the private sector as a human resource
professional and in industrial relations before qualifying as a
commercial lawyer.
Ms Hodgins has worked as a sole practitioner, as well as in the State
and local government sectors, and was previously In-house Counsel
for CGA Mining Limited, a junior TSX and ASX listed company with
mining interests in the Philippines and Africa, up until its acquisition
by Canadian gold miner B2 Gold Corp in January 2013. As a GAICD
and member of AICD WA, and a previous Board member of the
Australian Association of Corporate Counsel and the WA Legal
Practice Board, Ms Hodgins has a strong governance background
and brings diversity and independence to the Board of Trek.
Special responsibilities
None
Directorships held in other listed entities during the three years
prior to the current year
None
Director Holdings
•
Shares – 833,333
•
Options – 277,778
•
Performance Rights – nil
COMPANY SECRETARY(S)
•
Australia - Russell Hardwick – Local Agent and Joint Company Secretary
•
Bermuda – c/o Apex Corporate Services Limited
CORPORATE GOVERNANCE
The directors of the Group support and adhere to the principles of corporate governance,
recognising the need for the highest standard of corporate behavior and accountability. The
company has adopted a Corporate Governance plan taking into account the 4th edition of the
Corporate Governance Principles and Recommendations. Please refer to the Corporate
Governance Statement on the Company’s website:
https://trekmetals.com.au/corporate/corporate-governance.
TREK METALS LIMITED | ANNUAL REPORT 2024
20
BOARD MEETINGS
The Directors held four (4) “in-person” meetings during the year. In addition nine (9) board
matters were dealt with by Circular resolution signed by all Directors.
Name
Eligible to attend
No. of meetings attended
Tony Leibowitz
4
4
Neil Biddle
4
4
John Young
4
4
Valerie Hodgins
4
4
BOARD COMMITTEES
The Company does not have an Audit, Remuneration or Nomination Committee. Given its size
and composition, the Board considers that at this stage, no efficiencies or other benefits would
be gained by establishing separate board committees. To assist the Board to fulfil its function
it has adopted charters for each of these committees. In accordance with the Company’s
Board Charter, the Board carries out the duties that would ordinarily be carried out by the Audit,
Remuneration and Nomination Committees under the charters in place for each of these.
KEY MANAGEMENT SHARES, RIGHTS AND OPTION HOLDINGS
NUMBER OF SHARES HELD BY KEY MANAGEMENT
The number of ordinary shares in Trek Metals Limited held by each Key Management Personnel
of the Group during the financial year is as follows:
31 March 2024
Balance 1 April
2023
Exercise of Options/
Rights received as
compensation
Net Change
Other
Balance 31
March 2024
Tony Leibowitz
15,953,489
-
6,986,673
22,940,162
Neil Biddle
11,409,134
-
3,933,333
15,342,467
John Young
7,693,274
-
833,333
8,526,607
Valerie Hodgins
-
-
833,333
833,333
Derek Marshall
93,476
-
1,166,667
1,260,143
31 March 2023
Balance 1 April
2022
Exercise of Options/
Rights received as
compensation
Net Change
Other
Balance 31
March 2023
Tony Leibowitz
13,966,953
-
1,986,536
15,953,489
Neil Biddle
10,313,726
-
1,095,408
11,409,134
John Young
6,551,738
-
1,141,536
7,693,274
Valerie Hodgins
-
-
-
-
Derek Marshall
93,476
-
-
93,476
TREK METALS LIMITED | ANNUAL REPORT 2024
21
NUMBER OF PERFORMANCE RIGHTS HELD BY KEY MANAGEMENT
PERFORMANCE RIGHTS HELD BY KEY MANAGEMENT PERSONNEL
The number of performance rights held by each Key Management Personnel of the Group
during the financial year is as follows:
31 March 2024
Balance 1
April 2023
Granted as
Compensation
Expired
during
the year
Exercised
during the
year
Balance
31 March
2024
Vested and
Exercisable
Tony Leibowitz
3,000,000
-
-
-
3,000,000
-
Neil Biddle
3,000,000
-
-
-
3,000,000
-
John Young
6,000,000
-
-
-
6,000,000
-
Valerie Hodgins*
-
-
-
-
-
-
Derek Marshall
11,000,000
-
(200,000)
(1,000,000)
9,800,000
1,300,000
*Ms Hodgins has been awarded 3,000,000 Class R Performance Rights that are subject to
shareholder approval at the 2024 Annual General Meeting.
31 March 2023
Balance 1
April 2022
Granted as
Compensation
Expired
during
the year
Exercised
during
the year
Balance
31 March
2023
Vested and
Exercisable
Tony Leibowitz
3,000,000
-
-
-
3,000,000
-
Neil Biddle
3,000,000
-
-
-
3,000,000
-
John Young
6,000,000
-
-
-
6,000,000
-
Valerie Hodgins
-
-
-
-
-
-
Derek Marshall
6,000,000
5,000,000
-
-
11,000,000
-
NUMBER OF OPTIONS HELD BY KEY MANAGEMENT PERSONNEL
The number of options over ordinary shares held by each Key Management Personnel of the
Group during the financial year is as follows:
31 March 2024
Balance 1 April
2023
Other changes
during the year
Total Exercisable
31 March 2024
Balance
31 March 2024
Tony Leibowitz
-
1,383,333
-
1,383,333
Neil Biddle
-
1,111,111
-
1,111,111
John Young
1,875,000
(1,597,223)
-
277,777
Valerie Hodgins
-
277,778
-
277,778
Derek Marshall
-
55,555
-
55,555
31 March 2023
Balance 1 April
2022
Other changes
during the year
Total Exercisable
31 March 2023
Balance
31 March 2023
Tony Leibowitz
1,500,000
(1,500,000)
-
-
Neil Biddle
500,000
(500,000)
-
-
John Young
1,875,000
-
1,875,000
1,875,000
Valerie Hodgins
-
-
-
-
Derek Marshall
-
-
-
-
TREK METALS LIMITED | ANNUAL REPORT 2024
22
DIRECTORS’ AND SENIOR MANAGEMENT REMUNERATION
The Board of Directors is responsible for determining and reviewing compensation
arrangements for the directors and senior management. The Board assesses the
appropriateness of the nature and amount of remuneration of non-executive directors and
executives on a periodic basis by reference to relevant employment market conditions. The
Company recognises that it operates in a competitive environment and to operate effectively
it must be able to attract, motivate and retain key personnel. The compensation structures are
designed to attract suitably qualified candidates, reward the achievement of strategic
objectives, and achieve the broader outcome of creation of value for shareholders. The
compensation structures take into account:
•
The capability and experience of the key management personnel;
•
Size of the Group;
•
The key management personnel’s ability to control the performance; and
•
The Group’s exploration success and identification of new investments.
Salaries and fees paid to Directors and Senior Executives have been determined in relation to
salaries paid to comparable companies, management responsibility and experience. The
salaries and fees are reviewed regularly to ensure that Directors and Executives are
appropriately rewarded for their efforts in enhancing shareholder value. Where required, the
Board obtains independent advice as required on the appropriateness of compensation
packages of the Company given trends of comparative companies and the objectives of the
Company’s compensation strategy. The Board policy is to remunerate Non-Executive Directors
at market rates for time, commitment and responsibilities. Directors may also provide
consultancy services to the Company and are remunerated at market rates.
On 20th October 2022, shareholders approved a new Incentive Performance Rights and Option
Plan (“Plan”) and participation by Directors in that plan. Key management personnel and staff
are also entitled to participate in the plan. Any rights or options issued are valued using
standard valuation techniques such as Black-Scholes methodology or Binomial.
The objective of the Plan is to reward Directors, senior management and staff in a manner that
aligns remuneration with the creation of shareholder wealth. The amounts disclosed as part of
remuneration for the financial year have been determined by allocating the grant date fair
value based on the probability of the vesting conditions being achieved over the expected life
of the rights or options. The remuneration policy has been tailored to increase goal congruence
between Shareholders, Directors and Executives. As part of each of the key management
personnel’s remuneration package, there is a performance-based component consisting of
the issue of Performance rights or options to encourage the alignment of management and
Shareholders’ interests.
The Board determines appropriate vesting conditions that includes specific milestones
including such items as retention, key performance indicators and/or a premium over the
prevailing share price to provide potential rewards over a period of time and to align interests
with those of shareholders.
TREK METALS LIMITED | ANNUAL REPORT 2024
23
A summary of the operating losses and share prices at year end for the last four years are as
follows:
2021
2022
2023
2024
Net Profit/(Loss)
($274,164)
($2,185,622)
($3,990,953)
($1,705,090)
Share price at year end
$0.063
$0.074
$0.065
$0.037
Earnings per share
(0.128c)
(0.778c)
(1.204c)
(0.364c)
Remuneration earned and the value ascribed to share based payments which were expensed
during the year ended 31 March 2024 in relation to Directors and Key Management Personnel is
summarised as follows:
Fixed Remuneration
Variable
Remuneration
Total
Remuneration
$
Value of Rights /
Options as a %
Remuneration
2024
Directors/
Consulting
Fees
$
Super
$
Total
$
Options/Rights
Granted
$
Non-Executive
Tony Leibowitz
120,000
13,050
133,050
-
133,050
-
Neil Biddle
75,000
8,156
83,156
-
83,156
-
Valerie Hodgins
75,000
8,156
83,156
-
83,156
-
John Young
82,875
-
82,875
-
82,875
-
Executive
Derek Marshall
290,937
27,500
318,437
262,335
580,772
45.2%
643,812
56,862
700,674
262,335
963,009
Fixed Remuneration
Variable
Remuneration
Total
Remuneration
$
Value of Rights /
Options as a %
Remuneration
2023
Directors/
Consulting
Fees
$
Super
$
Total
$
Options/Rights
Granted
$
Non-Executive
Tony Leibowitz
104,273
10,863
115,136
32,395
147,531
22.0%
Neil Biddle
64,897
6,746
71,643
32,395
104,038
31.1%
Valerie Hodgins(1)
51,198
5,376
56,574
-
56,574
-
John Young(2)
107,156
-
107,156
64,790
171,946
37.7%
Executive
Derek Marshall
278,750
27,125
305,875
315,684
621,559
50.8%
606,274
50,110
656,384
445,264
1,101,648
(1) Ms Hodgins was appointed on 1 July 2022.
(2) Mr Young transitioned to non-executive director on 31 October 2022.
TREK METALS LIMITED | ANNUAL REPORT 2024
24
KEY MANAGEMENT PERSONNEL
The remuneration structure for key Management and Directors is based on a number of factors
including length of service, experience, responsibilities and the performance of the Company.
The Company has entered into an employment contract with Mr Derek Marshall as the
Company’s Chief Executive Officer. The contract commenced on 1 September 2021 on a
continuing basis with no fixed term. The agreement specifies the duties and obligations of the
Chief Executive Officer and contains normal commercial termination clauses including the
provision of three months written notice during the first 12 months of employment and after the
first 12 months of employment by giving not less than six months written notice.
POST BALANCE DATE EVENTS
Other than described in this report, no matters or circumstances have arisen since the end of
the financial year which significantly affected or may significantly affect the operations of the
Group, the results of those operations, or the state of affairs of the Group in subsequent financial
years.
NON-AUDIT SERVICES
The Group may decide to employ the auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Company and/or Group are
important. Should the Group engage the auditor for non-audit related services; the provision
of the non-audit services is compatible with the general standard of independence for the
auditors imposed by the Corporations Act 2001.
During the financial year ended 31 March 2024 the group’s auditors Hall Chadwick provided the
Group with no other non-audit related services provided.
Signed on behalf of the Board.
John Young
Non-executive Director
21 May 2024
To the Board of Directors,
Auditor’s Independence Declaration
As lead audit Director for the audit of the financial statements of Trek Metals Limited for the financial
year ended 31 March 2024, I declare that to the best of my knowledge and belief, there have been no
contraventions of the auditor independence requirements of any applicable code of professional conduct
in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated Perth, Western Australia this 21st day of May 2024
TREK METALS LIMITED | ANNUAL REPORT 2024
26
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
NOTES
YEAR ENDED
31 MARCH 2024
$
YEAR ENDED
31 MARCH 2023
$
Continuing Operations
Investment revenue
6
160,699
46,221
Other income
6
120,085
8,120
Share based payment expense
23
(543,125)
(676,595)
Exploration & evaluation expense
11
(75,945)
(301,089)
Acquisition cost impaired
11
-
(1,627,005)
Stamp duty on acquisition
(8,075)
(155,916)
Foreign exchange gain/(loss)
-
19
Loss on sale of subsidiary
11
-
(51,974)
Finance costs
(18,115)
(8,063)
Other operating expenses
6
(1,340,614)
(1,224,671)
Loss before tax
(1,705,090)
(3,990,953)
Income tax expense
8
-
-
Loss for the year
(1,705,090)
(3,990,953)
Attributable to:
Equity holders of the Parent
(1,705,090)
(3,990,953)
Loss per share for loss attributable to
the ordinary equity holders of the
Parent:
Cents/share
Cents/share
Basic loss per share
7
(0.364)
(1.204)
Diluted loss per share
7
(0.364)
(1.204)
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
27
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
NOTES
YEAR ENDED
31 MARCH 2024
$
YEAR ENDED
31 MARCH 2023
$
Loss for the year
(1,705,090)
(3,990,953)
Other comprehensive income/(loss)
Items that may not be reclassified to
profit or loss
Changes in fair value of financial
assets through Other Comprehensive
Income
(54,000)
(48,000)
Total Comprehensive Loss for the Year
Attributable
to
Owners
of
the
Company
(1,759,090)
(4,038,953)
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
28
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 MARCH 2024
NOTES
31 MARCH 2024
$
31 MARCH 2023
$
ASSETS
Current Assets
Cash and cash equivalents
9
5,552,999
2,704,166
Trade and other receivables
10
151,531
50,846
Other assets
35,545
32,032
Total current assets
5,740,075
2,787,044
Non-current Assets
Property, plant and equipment
255,966
317,290
Right of Use assets
15
59,489
84,257
Exploration and evaluation expenditure
11
12,432,208
8,125,997
Financial assets
86,026
140,026
Total non-current assets
12,833,689
8,667,570
Total Assets
18,573,764
11,454,614
LIABILITIES
Current Liabilities
Trade and other payables
14
471,310
693,857
Lease liabilities
15
28,844
31,144
Provision
16
49,094
35,112
Shares payable
500,000
-
Total current liabilities
1,049,248
760,113
Non-current Liabilities
Lease liabilities
15
35,600
56,992
Total non-current liabilities
35,600
56,992
Total Liabilities
1,084,848
817,105
NET ASSETS
17,488,916
10,637,509
Equity
Issued capital
17
38,281,358
35,897,520
Reserves
18
62,301,556
59,080,905
Accumulated loss
(83,093,998)
(84,340,916)
Total Equity
17,488,916
10,637,509
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Consolidated
Note
Issued Capital
Share Premium
Reserve
Share Based
Payments
Reserve
Foreign Currency
Translation
Reserve
Asset
Revaluation
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
$
$
Balance at 1 April 2023
35,897,520
54,668,857
1,851,485
2,560,563
-
(84,340,916)
10,637,509
Loss for the year
-
-
-
-
-
(1,705,090)
(1,705,090)
Other comprehensive
income/(loss)
-
-
-
-
(54,000)
-
(54,000)
Total comprehensive loss
for the year
-
-
-
-
(54,000)
(1,705,090)
(1,759,090)
Transactions with owners,
recorded directly in equity
Issue of ordinary shares
17
2,686,656
5,610,358
-
-
-
-
8,297,014
Issue of ordinary shares on
exercise of share options
17
79,644
187,556
(33,400)
-
-
-
233,800
Share based payments
23
-
-
543,125
-
-
-
543,125
Expiry of share options
18(b)
-
-
(391,445)
-
-
391,445
-
Performance rights
exercised
18(b)
80,980
228,031
(309,011)
-
-
-
-
Transfer Foreign Currency
reserve to Accumulated
Losses
-
-
-
(2,560,563)
-
2,560,563
-
Share issue expenses
17
(463,442)
-
-
-
-
-
(463,442)
Balance at 31 March 2024
38,281,358
60,694,802
1,660,754
-
(54,000)
(83,093,998)
17,488,916
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Consolidated
Note
Issued Capital
Share Premium
Reserve
Share Based
Payments Reserve
Foreign Currency
Translation
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
$
Balance at 1 April 2022
34,969,682
51,903,292
1,293,414
2,560,563
(80,408,742)
10,318,209
Loss for the year
-
-
-
-
(3,990,953)
(3,990,953)
Other comprehensive
income/(loss)
-
-
-
-
(48,000)
(48,000)
Total comprehensive loss
for the year
-
-
-
-
(4,038,953)
(4,038,953)
Transactions with owners,
recorded directly in equity
Issue of ordinary shares
17
941,169
2,747,772
-
-
-
3,688,941
Issue of ordinary shares on
exercise of share options
17
3,940
10,460
(1,800)
-
-
12,600
Share based payments
23
-
-
676,595
-
-
676,595
Expiry of share options
18(b)
-
-
(106,779)
-
106,779
-
Performance rights
exercised
18(b)
2,612
7,333
(9,945)
-
-
Share issue expenses
17
(19,883)
-
-
-
-
(19,883)
Balance at 31 March 2023
35,897,520
54,668,857
1,851,485
2,560,563
(84,340,916)
10,637,509
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
31
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
NOTES
YEAR ENDED
31 MARCH 2024
$
YEAR ENDED
31 MARCH 2023
$
Cash flows from operating activities
Payments to suppliers and employees
(1,321,063)
(1,176,919)
Payments for exploration and evaluation
(6,643)
-
Other Income
65,519
8,120
Stamp duty
(163,991)
-
Interest received
145,715
46,221
Net cash used in operating activities
9
(1,280,463)
(1,122,578)
Cash flows from investing activities
Payments for exploration and evaluation
(2,843,111)
(1,869,376)
Payments for property, plant & equipment
(115,669)
(64,080)
Payments for exploration tenements
(58,189)
(23,699)
Payments for entities
(250,000)
-
Proceeds from disposal of property, plant
and equipment
64,780
-
Acquisition of subsidiary, net of cash
acquired
-
6,483
Net cash used in investing activities
(3,202,189)
(1,950,672)
Cash flows from financing activities
Repayment of borrowings
-
(600,000)
Proceeds from issue of share capital
7,560,000
-
Proceeds from exercise of options
233,800
12,600
Payments for share issue costs
(462,315)
(2,621)
Net cash from/(used in) financing activities
7,331,485
(590,021)
Net decrease in cash and cash equivalents
2,848,833
(3,663,271)
Cash and cash equivalents at beginning of
the year
2,704,166
6,366,832
Effects of exchange rate changes on the
balance of cash held in foreign currencies
-
605
Cash and cash equivalents at the end of
year
9
5,552,999
2,704,166
Notes forming part of these financial statements are included on pages 32 to 66.
TREK METALS LIMITED | ANNUAL REPORT 2024
32
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
NOTE 1:
CORPORATE INFORMATION
Trek Metals Limited is a limited company incorporated in Bermuda, whose shares are
publicly traded on the Australian Securities Exchange.
The consolidated financial statements of the Company as at and for the year ended 31
March 2024 comprise the Company and its subsidiaries (together referred to as the
“Group” and individually as “Group entities”) and the Group’s interest in associates and
jointly controlled entities.
The principal activities of the Company and its subsidiaries (“the Group”) is to progress
the exploration of its mineral properties and to identify suitable acquisitions in the mineral
resources sector.
(a)
Statement of Compliance
These financial statements are general purpose financial statements which have been
prepared in accordance with the Australian Accounting Standards and Interpretations.
The financial statements comprise the consolidated financial statements of the Group. For
the purposes of preparing the consolidated financial statements, the Company is a for-
profit entity.
Accounting Standards include Australian Accounting Standards. Compliance with
Australian Accounting Standards ensures that the financial statements and notes of the
company and the Group comply with International Financial Reporting Standards (‘IFRS’).
(b)
Going Concern
This financial report has been prepared on the going concern basis, which contemplates
the continuity of normal business activity and the realisation of assets and settlement of
liabilities in the normal course of business.
The Group incurred a loss for the year of $1,705,090 (2023: loss of $3,990,953) and cash
outflows from operating activities of $1,280,463 (2023: $1,122,578).
The directors have prepared a cash flow forecast to estimate the working capital
requirements for the 12 month period from the date of signing this financial report. Based
on the cash flow forecasts and other factors referred to in this report, the directors are
satisfied that the going concern basis of preparation is appropriate. In particular, given:
•
the Company’s history of raising capital to date, the directors are confident of the
Company’s ability to raise additional funds as and when they are required.
•
The Company’s ability to manage the timing of cash flows to meet the committed
obligations of the business as and when they fall due.
TREK METALS LIMITED | ANNUAL REPORT 2024
33
NOTE 2: ADOPTION OF NEW AND REVISED STANDARDS
Certain new accounting standards and interpretations have been published that are not
mandatory for 31 December 2023 reporting periods and have not been early adopted by
the Group. These standards are not expected to have a material impact on the entity in
the current or future reporting periods and on foreseeable future transactions.
NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The consolidated financial statements have been prepared on the basis of historical cost,
except for certain financial instruments that are measured at fair values at the end of each
reporting period, as explained in the accounting policies below. Historical cost is generally
based on the fair values of the consideration given in exchange for goods and services. All
amounts are presented in AU dollars, unless otherwise noted. Fair value is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price
is directly observable or estimated using another valuation technique. In estimating the
fair value of an asset or a liability, the Group takes into account the characteristics of the
asset or liability if market participants would take those characteristics into account when
pricing the asset or liability at the measurement date. Fair value for measurement and/or
disclosure purposes in these consolidated financial statements is determined on such a
basis, except for share-based payment transactions that are within the scope of AASB 2,
leasing transactions that are within the scope of AASB 16, and measurements that have
some similarities to fair value but are not fair value, such as net realisable value in AASB 2
or value in use in AASB 136.
In addition, for financial reporting purposes, fair value measurements are categorised into
Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:
•
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date;
•
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
•
Level 3 inputs are unobservable inputs for the asset or liability.
TREK METALS LIMITED | ANNUAL REPORT 2024
34
(a)
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the
Company and entities (including structured entities) controlled by the Company and its
subsidiaries. Control is achieved when the Company:
•
has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
•
has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances
indicate that there are changes to one or more of the three elements of control listed
above.
When the Company has less than a majority of the voting rights of an investee, it has
power over the investee when the voting rights are sufficient to give it the practical ability
to direct the relevant activities of the investee unilaterally. The Company considers all
relevant facts and circumstances in assessing whether or not the Company's voting rights
in an investee are sufficient to give it power, including:
•
the size of the Company's holding of voting rights relative to the size and dispersion of
holdings of the other vote holders;
•
potential voting rights held by the Company, other vote holders or other parties;
•
rights arising from other contractual arrangements; and
•
any additional facts and circumstances that indicate that the Company has, or does
not have, the current ability to direct the relevant activities at the time that decisions
need to be made, including voting patterns at previous shareholders' meetings.
Consolidation of a subsidiary begins when the Company obtains control over the
subsidiary and ceases when the Company loses control of the subsidiary. Specifically,
income and expenses of a subsidiary acquired or disposed of during the year are included
in the consolidated statement of profit or loss and other comprehensive income from the
date the Company gains control until the date when the Company ceases to control the
subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the
owners of the Company and to the non-controlling interests. Total comprehensive income
of subsidiaries is attributed to the owners of the Company and to the non-controlling
interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to
bring their accounting policies into line with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
TREK METALS LIMITED | ANNUAL REPORT 2024
35
(b) Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible
assets to determine whether there is any indication that those assets have been impaired.
If such an indication exists, the recoverable amount of the asset, being the higher of the
asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying
value. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset for which the estimate of future
cash flows have not been adjusted. Any excess of the asset’s carrying value over its
recoverable amount is expensed to the income statement.
Where it is not possible to estimate the recoverable amount of an individual asset, the
Group estimates the recoverable amount of the cash-generating unit to which the asset
belongs.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or
cash generating unit) is increased to the revised estimate of its recoverable amount, but
so that the increased carrying amount does not exceed the carrying amount that would
have been recognised for the asset (or cash generating unit) in prior years. A reversal of
an impairment loss is recognised immediately in the income statement.
Where a reasonable and consistent basis of allocation can be identified, corporate assets
are also allocated to individual cash-generating units, or otherwise they are allocated to
the smallest group of cash generating units for which a reasonable and consistent
allocation basis can be identified.
(c) Foreign Currency Transactions and Balances
a.
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of
the primary economic environment in which that entity operates. The functional currency
and presentation currency of the parent is AUD. The consolidated financial statements are
presented in AU Dollars.
b.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange
rates prevailing at the date of the transaction. Foreign currency monetary items are
translated at the year-end exchange rate. Non-monetary items measured at historical
cost continue to be carried at the exchange rate at the date of transaction. Non-monetary
items measured at fair value are reported at the exchange rate at the date when fair
values were determined.
Exchange differences arising on the transition of monetary items are recognised in the
income statement in the period in which they arise, except where deferred in equity as a
qualifying cash flow.
Exchange differences arising on the translation of non-monetary items are recognised
directly in equity to the extent that the gain or loss is directly recognised in equity;
otherwise the exchange difference is recognised in the income statement.
TREK METALS LIMITED | ANNUAL REPORT 2024
36
c.
Group companies
The financial results and position of foreign operations whose functional currency is
different from the Group’s presentation currency are translated as follows:
•
Assets and liabilities are translated at period-end exchange rates prevailing at that
reporting date;
•
Income and expenses are translated at average exchange rates for the period; and
•
Retained earnings are translated at the exchange rates prevailing at the date of the
transaction.
Exchange differences on translation of foreign operations are transferred directly to the
Group’s foreign currency translation reserve in the balance sheet. These differences are
recognised in the income statement in the period in which the operation is disposed.
For the purpose of presenting consolidated financial statements, the assets and liabilities
of the Group’s foreign operations are expressed in AUD using exchange rates prevailing at
the end of the reporting period. Income and expense items are translated at the average
exchange rates for the period, unless exchange rates fluctuated significantly during that
period, in which case the exchange rates at the dates of the transactions are used.
Exchange differences arising, if any, are recognised in other comprehensive income and
accumulated in equity (attributed to non-controlling interests as appropriate).
(d)
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains or is a lease. If there
is a lease present, a right-of-use asset and a corresponding lease liability are recognised
by the Group where the Group is a lessee. However, all contracts that are classified as
short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases
of low-value assets are recognised as an operating expense on a straight-line basis over
the term of the lease.
Initially the lease liability is measured at the present value of the lease payments still to be
paid at the commencement date. The lease payments are discounted at the interest rate
implicit in the lease. If this rate cannot be readily determined, the Group uses the
incremental borrowing rate.
Lease payments included in the measurement of the lease liability are as follows:
•
fixed lease payments less any lease incentives;
•
variable lease payments that depend on an index or 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 lessee is reasonably certain to exercise
the options;
•
lease payments under extension options, if the lessee is reasonably certain to exercise
the options; and
•
payments of penalties for terminating the lease, if the lease term reflects the exercise
of an option to terminate the lease.
TREK METALS LIMITED | ANNUAL REPORT 2024
37
The right-of-use assets comprise the initial measurement of the corresponding lease
liability, any lease payments made at or before the commencement date and any initial
direct costs. The subsequent measurement of the right-of-use assets is at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying
asset, whichever is the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use
asset reflects that the Group anticipates to exercise a purchase option, the specific asset
is depreciated over the useful life of the underlying asset.
(e)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognised in profit or
loss over the period of the 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 drawdown 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.
The fair value of the liability portion of a convertible note is determined using a market
interest rate for an equivalent non-convertible borrowing. This amount is recorded as a
liability on an amortised cost basis until extinguished on conversion or maturity of the
notes. The remainder of the proceeds is allocated to the conversion option. This is
recognised and included in shareholders’ equity, net of income tax effects.
Borrowings are removed from the balance sheet 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.
Where the terms of a financial liability are renegotiated and the entity issues equity
instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a
gain or loss is recognised in profit or loss, which is measured as the difference between
the carrying amount of the financial liability and the fair value of the equity instruments
issued.
Borrowings 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.
TREK METALS LIMITED | ANNUAL REPORT 2024
38
NOTE 4: CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF
ESTIMATION UNCERTAINTY
In the application of the Group’s accounting policies, which are described in Note 3, the
directors are required to make judgments, estimates and assumptions about the carrying
amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods if the
revision affects both current and future periods.
The following are the critical judgments and estimations that the directors have made in
the process of applying the Group’s accounting policies and that have the most significant
effect on the amounts recognised in the financial statements.
a.
Impairment of capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation expenditure is
dependent on a number of factors, including whether the Group decides to exploit the
related lease itself or, if not, whether it successfully recovers the related exploration and
evaluation asset through sale. Factors which could impact the future recoverability
include the level of proved, probable and inferred mineral resources, future technological
changes which could impact the cost of mining, future legal changes and the approval of
the Environmental Impact Study (including changes to environmental restoration
obligations) and changes to commodity prices.
To the extent that capitalised exploration evaluation expenditure is determined not to be
recoverable in the future, this will reduce profits and net assets in the period in which this
determination is made.
In addition, exploration and evaluation expenditure is capitalised if activities in the area of
interest have not yet reached a stage which permits reasonable assessment of the
existence or otherwise of economically recoverable reserves. To the extent that it is
determined in the future that this capitalised expenditure should be written off, this will
reduce profits and net assets in the period in which this determination is made.
b.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference
to the fair value of the equity instruments at the date at which they are granted. The fair
value is determined by using a Black Scholes model.
c.
Taxation
Balances disclosed in the financial statements and the notes thereto related to taxation
are based on the best estimates of the directors. These estimates take into account both
the financial performance and position of the Group as they pertain to current income
taxation legislation, and the directors understanding thereof. No adjustment has been
made for pending or future taxation legislation. The current income tax position represents
the directors’ best estimate, pending an assessment by the applicable taxation
authorities.
TREK METALS LIMITED | ANNUAL REPORT 2024
39
NOTE 5: SEGMENT INFORMATION
(a)
Identification of reportable segments
The Group operates predominantly in the mining and exploration industry. This comprises
exploration and evaluation activities related to the Battery Metals and Gold projects. The
Group continues to assess other commercially and economically viable exploration
projects.
The Group has identified its operating segments based on the internal reports that are
provided to the Board of Directors (chief operating decision makers) to assess
performance and determine the allocation of resources. Management has identified the
operating segments based on the principal location of its projects, and its ASX listing and
management location in Australia.
(b) Basis of accounting for purposes of reporting by operating segments:
(i) Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors are determined
in accordance with accounting policies that are consistent to those adopted in the
annual financial statements of the Group.
(ii) Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised at the
consideration received/to be received net of transaction costs. If inter-segment loans
receivable and payable are generally on commercial terms.
(iii) Segment assets
Where an asset is used across multiple segments, the asset is allocated to that
segment that receives majority economic value from that asset. In the majority of
instances, segment assets are clearly identifiable on the basis of their nature and
physical location.
(iv) Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the
incurrence of the liability and the operations of the segment. Borrowings and tax
liabilities are generally considered to relate to the Group as a whole and are not
allocated. Segment liabilities include trade and other payables and certain direct
borrowings.
TREK METALS LIMITED | ANNUAL REPORT 2024
40
The following is an analysis of the Group’s results by reportable operating segment for the
period:
SEGMENT LOSS
31 MAR 2024
$
31 MAR 2023
$
Continuing operations
Exploration and evaluation
(75,945)
(1,980,068)
Corporate
(1,629,145)
(2,010,885)
Consolidated segment loss for the year from all
operations
(1,705,090)
(3,990,953)
The following is an analysis of the Group’s assets by reportable operating segment:
SEGMENT ASSETS
31 MAR 2024
$
31 MAR 2023
$
Continuing operations
Exploration and evaluation
12,778,531
8,478,546
Unallocated corporate assets
5,795,233
2,976,068
Consolidated segment assets
18,573,764
11,454,614
The following is an analysis of the Group’s liabilities by reportable operating segment:
SEGMENT LIABILITIES
31 MAR 2024
$
31 MAR 2023
$
Continuing operations
Exploration and evaluation
887,301
439,006
Unallocated corporate liabilities
197,547
378,099
Consolidated segment liabilities
1,084,848
817,105
TREK METALS LIMITED | ANNUAL REPORT 2024
41
NOTE 6: RECONCILIATION OF REVENUE AND OTHER EXPENSES
Interest revenue is recognised when it is probable that the economic benefits will flow to
the Group and the amount of revenue can be measured reliably. Interest revenue is
accrued on a time basis, by reference to the principal outstanding and at the effective
interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset’s net carrying amount
on initial recognition.
Revenues, expenses and assets are recognised net of the amount of goods and services
tax (GST), except:
(i) where the amount of GST incurred is not recoverable from the taxation authority, it is
recognised as part of the cost of acquisition of an asset or as part of an item of
expense; or
(ii) for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included
as part of receivables or payables.
The loss before tax from continuing operations after charging expenses and receiving
income was as follows:
31 MAR 2024
$
31 MAR 2023
$
Investment Revenue & Other Income
Interest revenue
160,699
46,221
Rental income
14,319
8,120
Tenement option fees
50,000
-
Profit on sale of PPE
20,463
-
Research & Development rebate
35,303
-
Total Investment Revenue & Other Income
280,784
54,341
Other Operating Expenses
Auditor’s remuneration
(37,208)
(32,303)
Communications costs
(6,199)
(4,672)
Consulting expenses
(158,310)
(200,042)
Wages, oncosts and recruitment costs
(292,228)
(110,791)
Directors’ salaries and consultant fees
(391,675)
(291,711)
Insurance
(57,296)
(49,261)
Rental costs
(4,258)
(22,004)
Legal
(26,915)
(38,178)
Corporate & statutory costs
(105,213)
(93,139)
Travel
(50,117)
(13,796)
Software expenses
(24,278)
(19,088)
Business development/conferences
(37,961)
(84,263)
Scheme expenses – Edge Minerals
-
(126,878)
Depreciation
(94,922)
(86,443)
Other costs
(54,034)
(52,102)
Total Other Operating Expenses
(1,340,614)
(1,224,671)
TREK METALS LIMITED | ANNUAL REPORT 2024
42
NOTE 7: EARNINGS PER SHARE
The calculation of the basic and diluted (loss) /earnings per share is based on the
following information:
31 MAR 2024
$
31 MAR 2023
$
Earnings
Loss attributable to the ordinary equity holders of
the Company used in calculating basic and
diluted loss per share:
From continuing operations
(1,705,090)
(3,990,953)
(1,705,090)
(3,990,953)
Shares
Weighted average number of ordinary shares
used as the denominator in calculating basic loss
per share
468,986,569
331,487,651
Adjustment for calculation of diluted earnings per
share:
Options
-
-
Weighted average number of ordinary shares and
potential
ordinary
shares
used
as
the
denominator in calculating diluted loss per share
468,986,569
331,487,651
Basic Loss per Share
Cents/share
Cents/share
Total basic loss per share attributable to the
ordinary equity holders of the Company
(0.364)
(1.204)
Total diluted loss per share attributable to the
ordinary equity holders of the Company
(0.364)
(1.204)
The following number of potential ordinary shares are not dilutive and are therefore
excluded from the weighted average number of ordinary shares in the year ended 31
March 2024:
31 MAR 2024
31 MAR 2023
Share Options
43,166,618
16,925,000
Performance Rights
30,395,000
31,575,000
73,561,618
48,500,000
TREK METALS LIMITED | ANNUAL REPORT 2024
43
NOTE 8: INCOME TAX
The charge for current income tax expenses is based on the profit for the year adjusted for
any non-assessable or disallowed items. It is calculated using tax rates that have been
enacted or are substantively enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of
temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements. No deferred income tax will be recognised
from the initial recognition of an asset or liability, excluding a business combination, where
there is no effect on accounting taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when
the asset is realised or liability is settled. Deferred tax is credited in the income statement
except where it relates to items that may be credited directly to equity, in which case the
deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax
profits will be available against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based
on the assumption that no adverse change will occur in income taxation legislation and
the anticipation that the Group will derive sufficient future assessable income to enable
the benefit to be realised and comply with the conditions of deductibility imposed by the
law.
Major components of income tax for the year ended 31 March 2024 are as follows:
31 MAR 2024
$
31 MAR 2023
$
Current income
Current income tax (benefit) expense
1,327,050
2,585,157
Derecognition of current income tax expense (benefit)
(1,327,050)
(2,585,157)
Deferred income tax
Relating to origination and reversal of temporary
difference
(1,055,555)
(375,725)
Derecognition of current income tax benefit (expense)
(53,085)
(29,985)
Adjustment in respect of prior year tax losses/STA
1,108,640
405,710
Income tax expense reported in income statement
-
-
A reconciliation of the income tax expense applicable to the loss from operating activities
before income tax at the statutory income tax rate to income tax expense at the Group’s
effective income tax rates is as follows:
TREK METALS LIMITED | ANNUAL REPORT 2024
44
31 MAR 2024
$
31 MAR 2023
$
Loss from operating activities before income tax
(1,705,090)
(3,990,953)
Prima facie tax benefit on loss from ordinary activities
at 30% (2023: 30%)
(511,527)
(1,197,286)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
-
Non-deductible expenses
141,315
699,571
-
International tax rate differential
-
24,336
-
Tax loss not brought to account as a deferred
tax asset
1,327,050
2,585,156
-
Temporary differences not brought to account
(956,838)
(2,111,777)
At effective income tax rate of 0% (31 March 2023: 0%)
-
-
Income tax expensed reported in income statement
-
-
Unrecognised deferred tax balances relate to the following:
31 MAR 2024
$
31 MAR 2023
$
Deferred tax assets at 30% (2023: 30%)
Provisions
14,728
10,534
Other assets
(7,364)
(6,310)
Capitalised Expenses
4,761
4,761
Capitalised Exploration costs
13,294
2,394
Trade and other payables
24,240
17,011
Property, plant & equipment
(94,637)
(120,464)
Exploration & evaluation expenditure
(2,091,121)
(1,600,188)
Un-realised foreign exchange gains
-
(6)
Business related costs
238,641
193,428
Total Deferred Tax Assets
(1,897,458)
(1,498,840)
Potential deferred tax assets for the Group are attributable to Australian tax losses carried
forward by the subsidiaries and future benefits to exploration expenditure and other
temporary differences allowable for deduction. Deferred tax assets have not been brought
to account in the consolidated statements as at 31 March 2024 because the directors are
of the opinion that it is not appropriate to regard full realisation of the deferred tax assets
as probable.
TREK METALS LIMITED | ANNUAL REPORT 2024
45
These benefits will only be obtained if:
a) The subsidiaries derive future assessable income of a nature and of an amount
sufficient to enable the benefit from the deductions to be realised; and
b) The subsidiaries continue to comply with the conditions for deductibility imposed by
tax legislation; and
c)
No changes in tax legislation adversely affect the subsidiaries in realising the benefit
from the deduction of the losses.
Unused tax losses not brought to account are as follows:
31 MAR 2024
$
31 MAR 2023
$
Opening unused tax losses
19,622,017
9,652,463
Add: losses for the year
4,423,500
8,617,189
Add: loss transferred in upon acquisition of Archer X Pty
Ltd
57,760
-
Add: Prior year adjustment
3,695,466
1,352,365
Unused tax losses
27,798,743
19,622,017
NOTE 9: CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits held at call with banks, other
short term highly liquid investments with original maturities of three months or less, and
bank overdrafts.
31 MAR 2024
31 MAR 2023
$
$
Bank balances and cash management accounts
2,472,745
2,682,615
Term deposit (1)
3,080,254
21,551
5,552,999
2,704,166
(1) A$20,000 of the cash and cash equivalents is restricted and set aside to offset credit card
limits.
TREK METALS LIMITED | ANNUAL REPORT 2024
46
(a)
Reconciliation of profit or loss after income tax to net cash flow from operating
activities
31 MAR 2024
31 MAR 2023
$
$
Loss for the year
(1,705,090)
(3,990,953)
Share-based payment expense
543,125
676,595
(Profit)/loss on sale of plant & equipment
(20,463)
1,108
Finance cost
18,115
8,063
Stamp duty
8,075
-
Impairment of exploration expenditure
-
1,627,005
Depreciation
94,922
86,443
Discontinued operation
-
51,974
Net exchange differences
-
(605)
Change in operating assets and liabilities, net of
effects from sale of subsidiary:
(Increase)/decrease
in
trade
and
other
receivables
(104,198)
35,840
(Increase)/decrease in other assets – current &
non-current
54,000
(149,875)
(Decrease)/increase in trade and other payables
(182,931)
505,600
Increase in provisions
13,982
26,227
Net cash outflow from operating activities
(1,280,463)
(1,122,578)
(b) Non-cash investing and financing activities
31 MAR 2024
31 MAR 2023
$
$
Acquisition of Archer X Pty Ltd via the issue of shares
(refer Note 11)
577,014
-
Deferred consideration - shares payable on 1
December 2024 (refer Note 11)
500,000
-
Acquisition of Tenement via issue of shares
160,000
-
Acquisition of Edge via the issue of shares (refer
Note 11)
-
3,382,232
Acquisition of Tenement E45/4640 via issue of
shares
-
306,709
NOTE 10: TRADE AND OTHER RECEIVABLES
31 MAR 2024
31 MAR 2023
$
$
Current
Other receivables
151,531
50,846
151,531
50,846
Trade and other receivables are non-interest bearing, have no security held against them
and are, on average, on terms of 15 days.
TREK METALS LIMITED | ANNUAL REPORT 2024
47
NOTE 11: EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure primarily consist of activities including drilling,
assaying, geochemical and geophysical investigations and independent geological
consultants in respect of each identifiable area of interest. These costs are capitalised
provided the rights to tenure of the area of interest is current and either:
a) the expenditures are expected to be recouped through successful development and
exploitation or sale of the area of interest; or
b) activities in the area of interest have not at the reporting date reached a stage which
permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves, and active and significant operations in or relating to, the area
of interest are continuing.
When the technical feasibility and commercial viability of extracting a mineral resource
have been demonstrated then any capitalised exploration and evaluation expenditure is
reclassified as capitalised mine development. Prior to reclassification, capitalised
exploration and evaluation expenditure is measured at cost and assessed for impairment.
a.
Impairment
All capitalised exploration and evaluation expenditure is monitored for indications of
impairment on a cash-generating unit basis. The cash generating unit shall not be larger
than the area of interest. If sufficient data exists to determine technical feasibility and
commercial viability, and facts and circumstances suggest that the carrying amount
exceeds the recoverable amount, the capitalised expenditure which is not expected to be
recovered is charged to the income statement.
31 MAR 2024
31 MAR 2023
$
$
Exploration and Evaluation Expenditure
Opening balance
8,125,997
3,703,707
Additions for the period
2,804,632
1,453,582
Impairments
(46,043)
(298,001)
Acquisition of Archer X Pty Ltd
1,387,622
-
Acquisition of tenement interest – Christmas Creek
160,000
-
Acquisition of Edge Minerals Ltd
-
3,200,000
Acquisition of tenement E45/4640
-
306,709
Transfer to Other Financial Assets (Sale of subsidiary)
-
(188,026)
Loss on Sale of subsidiary
-
(51,974)
Closing balance at balance date
12,432,208
8,125,997
TREK METALS LIMITED | ANNUAL REPORT 2024
48
The Group’s exploration properties may be subject to claim under Native Title (or
jurisdiction equivalent), or contain sacred sites, or sites of significance to the indigenous
people of Australia. As a result, exploration properties or areas within the tenements may
be subject to exploration restrictions, mining restrictions and/or claims for compensation.
At this time, it is not possible to quantify whether such claims exist, or the quantum of such
claims.
The Company policy is to charge exploration expenditure to specific areas of interest.
Exploration expenditure that cannot be attributed to specific areas of interest is written off.
Recoverability of the Group’s carrying value of interests in mineral projects is subject to the
successful development and exploitation of the exploration properties or alternatively, the
sale of these tenements at amounts at least equal to the book values.
ACQUISITION OF ARCHER X PTY LTD - CURRENT YEAR
On 1 December 2023, Trek Metals acquired 100% of issued capital in Archer X Pty Ltd. The
acquisition of Archer X was deemed an asset acquisition.
Fair value
Purchase consideration
$
Issue of fully paid ordinary shares (11,775,789 @ $0.049)
577,014
Cash consideration
250,000
Deferred consideration - shares payable on 1 December 2024
500,000
Net liabilities acquired
60,608
Total consideration / Exploration assets at acquisition
1,387,622
Included as part of the acquisition is a potential milestone consideration which is subject
to and conditional upon an announcement by Trek to ASX within 5 years of the date of the
Agreement, of the delineation by Trek of a 2,000,000 ounce gold equivalent resource as
verified by an independent competent person under the 2012 JORC code (JORC Code).
If achieved, Trek will be required to issue $5,000,000 worth of fully paid ordinary shares in
the capital of Trek based on the 20-day (VWAP) measured on the date which is two days
prior to the date of issue with a floor price of $0.15. Any shares (if issued) will be subject to
an escrow period of 6 months. In addition, there is a 1.25% net smelter royalty for all
minerals produced in respect of the Tenements to the Shareholders of Archer. Under the
terms of the Royalty, upon a decision to mine being made at the Tenements, Trek will have
the exclusive right to purchase the Royalty for $5,000,000.
As at the reporting date, no value has been ascribed to the deferred consideration due to
being considered less than remote.
TREK METALS LIMITED | ANNUAL REPORT 2024
49
ACQUISITION OF EDGE MINERALS – SCHEME – PRIOR YEAR
On 27 October 2022, the Supreme Court of Western Australia made orders approving the
Scheme of arrangement by which Trek acquired all of the issued shares in Edge Minerals
Ltd (Edge). The acquisition of Edge was deemed an asset acquisition. Implementation of
the Scheme was completed on 8th November 2022.
Fair value
Purchase consideration
$
Issue of fully paid ordinary shares (48,317,601 @ $0.07)
3,382,232
Net liabilities acquired
623,318
Total consideration
4,005,550
Impairment expense ($3.2M)1
(805,550)
Exploration assets at acquisition
3,200,000
1.
The value of Edge Minerals Limited has been independently valued as part of the
Scheme of arrangement at $3,200,000 with the excess purchase consideration
immediately expensed due to being in excess of the fair value on acquisition.
SALE OF SUBSIDIARY PROJECT – PRIOR YEAR
On 21 June 2022, the Company announced the completion of the sale of its remaining 20%
interest in the Kroussou zinc-lead project located in west Gabon in central Africa to Apollo
Minerals Limited. This was achieved via the sale of its wholly owned subsidiary Select
Exploration Mauritius which ultimately held the Kroussou project.
The consideration received by Trek was 3,000,000 fully-paid AON ordinary shares and
1,000,000 options exercisable into ordinary shares at 12c per share, expiring 30 June 2024.
The financial impact is summarised as follows:
31 MARCH 2023
$
Carrying value of subsidiary
240,000
Value of 3,000,000 shares received from AON at 21 June 2022
174,000
Value of 1,000,000 options received by AON at 21 June 2022
14,026
Consideration received on sale of subsidiary
188,026
Loss on disposal of subsidiary
(51,974)
In addition, as part of the transaction the Company forgave the Intercompany loan of
$2,164,272 which had been previously impaired in full in prior reporting periods.
TREK METALS LIMITED | ANNUAL REPORT 2024
50
NOTE 12: SUBSIDIARIES
The consolidated financial statements include the financial statements of Trek Metals
Limited and the subsidiaries listed below:
COUNTRY
OF
INCORP’N
CLASS OF
SHARE
CAPITAL
HELD
HOLDING & VOTING
CAPACITY (%)
31 MAR 2024
31 MAR 2023
TM Resources Pty Ltd
Australia
Ordinary
100
100
Trek Management Pty Ltd
Australia
Ordinary
100
100
Elm Resources Pty Ltd
Australia
Ordinary
100
100
ACME Pilbara Pty Ltd
Australia
Ordinary
100
100
Anaheim Pty Ltd
Australia
Ordinary
100
100
Edge Minerals Pty Ltd
Australia
Ordinary
100
100
Archer X Pty Ltd
Australia
Ordinary
100
0
Tambourah Lithium Group Pty Ltd
Australia
Ordinary
33.33
0
NOTE 13: INVESTMENTS IN ASSOCIATES
An associate is an entity over which the Group has significant influence. Significant
influence is the power to participate in the financial and operating policy decisions of the
investee but is not control or joint control over those policies. Trek Metals Limited holds 49%
of the share capital of Cape Resources Limited company controlled by Glencore
International AG (Glencore). There were no contributions by Trek Metals in 2024. The
investment in this associate is carried at $Nil (2023: nil). It is proposed that Cape Resources
Limited will be subject to a members voluntary liquidation during the next 12 months, with
no financial impact to Trek Metals.
NOTE 14: TRADE AND OTHER PAYABLES
31 MAR 2024
31 MAR 2023
$
$
Current
Trade and other payables
121,281
304,143
Accrued expenses
350,029
389,714
471,310
693,857
Trade payables and accruals are non-interest bearing and have repayment terms within 30 days.
TREK METALS LIMITED | ANNUAL REPORT 2024
51
NOTE 15: LEASES
31 MAR 2024
31 MAR 2023
$
$
Leases
(a) Amounts recognised in the balance sheet
Rights-of-use asset
Opening balance
84,257
-
Right-of-use assets recognised as at 22 August 2022
-
98,705
Less: Depreciation
(24,768)
(14,448)
Closing balance
59,489
84,257
Lease liabilities
Opening balance – Total
88,136
-
Lease liabilities recognised as at 22 August 2022
-
98,705
Add: Interest
4,648
10,569
Less: Payments
(28,340)
(21,138)
Closing balance - Total
64,444
88,136
Closing balance - Current
28,844
31,144
Closing balance – Non-Current
35,600
56,992
(b) Amounts recognised in the consolidated statement of profit or loss
Depreciation of right-of-use asset
24,768
14,448
Interest expense on lease liabilities
18,115
10,570
(c) Leasing Activities
The Company has entered into an office lease for the premises at Suite 5, 2 Centro Avenue, Subiaco WA. The
lease commenced on 22 August 2022 for an initial two-year period with options available for a further four
years expiring on 26 August 2026.
The lease is recognised as a right-of-use asset and a corresponding liability at the date at which the leased
asset is available for use by the Company. Each lease payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over the lease period as to produce a constant periodic rate
of interest on the remaining balance of the liability for each period. The right-of-use asset is amortised over
the shorter of the asset’s useful life and the lease term on a straight-line basis.
Initial measurement
Assets and liabilities from a lease are initially measured on a present value basis. The lease liability includes
the present value of the fixed payments and variable lease payments that depend on an index, initially
measured using the index as at the commencement date (reconciled and adjusted for actual index each
year). The lease payments are discounted using the Company’s incremental borrowing rate of 6%.
The right-of-use asset is measured at cost comprising of the initial measurement of the lease liability.
Subsequent measurement
The right-of-use asset is subsequently measured at cost less any accumulated amortisation and any
accumulated impairment losses and adjusted for any re-measurement of the lease liability.
The lease liability is subsequently measured to reflect the interest on the lease liability, the lease payments
made and any reassessment of the variable payments.
TREK METALS LIMITED | ANNUAL REPORT 2024
52
NOTE 16: PROVISIONS
Provisions are recognised when the Group has a legal or constructive obligation, as a
result of past events, for which it is probable that an outflow of economic benefits will result,
and that outflow can be reliably measured. The amount recognised as a provision is the
best estimate of the consideration required to settle the present obligation at the balance
sheet date, taking into account the risks and uncertainties surrounding the obligation.
Where a provision is measured using the cash flow estimated to settle the present
obligation, its carrying amount is the present value of those cash flows.
31 MAR 2024
31 MAR 2023
$
$
Current
Provision for Annual Leave
49,094
35,112
49,094
35,112
NOTE 17: ISSUED CAPITAL
Authorised ordinary shares of par £0.01 each, carrying one vote per share and rights to
dividends. The ordinary shares on issue is summarised as follows:
NUMBER
OF SHARES
ISSUED
CAPITAL
$
SHARE
PREMIUM
$
31 MARCH 2024
Issued and fully paid ordinary shares
As at 1 April 2023
363,945,083
35,897,520
54,668,857
Allotments
5/06/2023 Issue of shares at $0.06 per share
(Tranche 1)
75,000,000
1,408,534
3,091,465
5/07/2023 Exercise of options at $0.056 per share
1,875,000
35,768
84,232
5/07/2023 Exercise of options at $0.056 per share
1,875,000
35,768
84,232
5/07/2023 Exercise of options at $0.056 per share
425,000
8,107
19,093
2/08/2023 Issue of shares at $0.06 per share
(Tranche 2)
50,000,000
971,405
2,028,596
13/09/2023 Issue of shares for cash (800,000) and
in lieu of payment of consulting services (200,000)
1,000,000
19,433
40,567
10/10/2023 Exercise of performance rights
3,520,000
67,295
181,665
1/12/2023 Acquisition of Archer X Pty Ltd at $0.049
per share
11,775,789
224,290
352,724
19/12/2023 Exercise of performance rights
320,000
6,034
22,015
19/12/2023 Acquisition of tenement at $0.0479 per
share
3,340,990
62,995
97,005
26/03/2024 Exercise of performance rights
396,000
7,651
24,351
Share Issue costs
-
(463,442)
-
Balances as at 31 March 2024
513,472,862
38,281,358
60,694,802
TREK METALS LIMITED | ANNUAL REPORT 2024
53
NUMBER
OF SHARES
ISSUED
CAPITAL
$
SHARE
PREMIUM
$
31 MARCH 2023
Issued and fully paid ordinary shares
As at 1 April 2022
310,460,150
34,969,682
51,903,292
Allotments
6/06/2022 Exercise of performance rights
150,000
2,612
7,333
7/11/2022 Acquisition of tenement at $0.064 per
share
4,792,332
85,021
221,688
8/11/2022 Acquisition of Edge Minerals at $0.07 per
share
48,317,601
856,148
2,526,084
14/11/2022 Exercise of options at $0.056 per share
225,000
3,940
10,460
Share Issue costs
-
(19,883)
-
Balances as at 31 March 2023
363,945,083
35,897,520
54,668,857
Performance Rights
At 31 March 2024, the number of Performance Rights of the Company on issue are:
*The Company has agreed (subject to shareholder approval at the 2024 Annual General
meeting) to issue 3,000,000 Class R Performance Rights.
Performance Rights
Issued
No of rights
Fair value at
Grant Date
($)
Grant date
Expiry
Vested
#
Class A
4,375,000
0.0492
05/03/21
05/03/25
-
Class B
4,000,000
0.0452
05/03/21
05/03/25
-
Class C
4,000,000
0.0420
05/03/21
05/03/25
-
Class F
750,000
0.0663
05/03/21
05/03/25
750,000
Class G
2,000,000
0.0725
01/09/21
01/09/25
-
Class H
2,000,000
0.0686
01/09/21
01/09/25
-
Class I
2,000,000
0.0664
01/09/21
01/09/25
-
Class J
450,000
0.0909
21/01/22
28/01/26
-
Class K
450,000
0.0888
21/01/22
28/01/26
-
Class L
2,220,000
0.0869
29/11/22
29/11/25
2,220,000
Class M
3,750,000
0.0825
29/11/22
29/11/26
-
Class N
400,000
0.0521
1/05/23
1/05/26
-
Class O
1,000,000
0.0429
1/05/23
1/05/27
-
Class P
1,500,000
0.0254
16/01/24
16/01/27
-
Class Q
1,500,000
0.0248
16/01/24
16/01/28
-
30,395,000
2,970,000
TREK METALS LIMITED | ANNUAL REPORT 2024
54
Options on Issue
Unissued ordinary shares of the Company under option at 31 March 2024 are as follows:
NOTE 18: RESERVES
(a) Share Premium Reserve
The share premium reserve records the amounts paid by shareholders for shares in excess
of their nominal value. See note 16 for further information.
(b) Share-Based Payment Reserve
The share-based payment reserve records the fair value of options and performance
rights granted to staff and directors, and suppliers.
Movement in unlisted options
Number
$
Balance at 1 April 2023
16,925,000
428,287
Options exercised
(4,175,000)
(33,400)
Options lapsed
(11,250,000)
(325,000)
Balance at 31 March 2024
1,500,000
69,887
Movement in performance rights
Number
$
Balance at 1 April 2023
31,575,000
1,423,198
Issue of Classes N - O (1 May 2023)
2,000,000
-
Issue of Classes P - Q (16 January 2024)
3,000,000
-
Rights exercised
(4,236,000)
(309,011)
Rights expired
(1,944,000)
(66,445)
Rights expensed to profit and loss
-
543,125
Balance at 31 March 2024
30,395,000
1,590,867
Options issued
No of
options
Exercise
price
($)
Fair
value at
Grant
Date ($)
Grant
date
Expiry
Vested/
Exercisable
#
Options issued as Share
Based Payments:
Consultant
1,500,000
0.056
0.020
01/07/20
30/06/24
1,500,000
Options issued as part of
a Placement
41,666,618
0.085
N/A
14/08/23
14/08/25
41,666,618
Options outstanding and
exercisable as at 31
March 2024
43,166,618
43,166,618
TREK METALS LIMITED | ANNUAL REPORT 2024
55
NOTE 19: FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised when a Group entity becomes a
party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in profit or loss.
(a)
Financial Assets
On initial recognition, financial assets are classified as measured at:
Amortized cost;
Fair Value through Other Comprehensive Income (“FVOCI”) – debt investment;
FVOCI – equity investment; or
Fair Value through Profit or Loss (“FVTPL”)
The classification of financial assets is generally based on the business model in which a
financial asset is managed and its contractual cash flow characteristics. A financial asset
(unless it is a trade receivable without a significant financing component that is initially
measured at the transaction price) is initially measured at fair value plus, for an item not
at FVTPL, transaction costs that are directly attributable to its acquisition. For financial
assets measured at amortized cost, these assets are subsequently measured at
amortized cost using the effective interest method. The amortized cost is reduced by
impairment losses.
Interest income, foreign exchange gains and losses and impairment are recognized in
profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
As of 31 March 2024, the Group’s financial instruments consist of cash and cash
equivalents, trade and other receivables and trade and other payables.
Cash and cash equivalents and other receivables are classified as amortised cost under
AASB 9. The trade and other payables are designated as other financial liabilities, which
are measured at amortised cost.
The cash and cash equivalents, trade and other receivables, and trade and other
payables approximate their fair value due to their short-term nature.
The Group classified the fair value of the financial instruments according to the following
fair value hierarchy based on the amount of observable inputs used to value the
instruments:
The three levels of the fair value hierarchy are:
•
Level 1 – Values based on unadjusted quoted prices available in active markets for
identical assets or liabilities as of the reporting date.
•
Level 2 – Values based on inputs, including quoted prices, time value and volatility
factors, which can be substantially observed or corroborated in the marketplace.
Prices in Level 2 are either directly or indirectly observable as of the reporting date.
•
Level 3 – Values based on prices or valuation techniques that are not based on
observable market data.
TREK METALS LIMITED | ANNUAL REPORT 2024
56
Impairment of financial assets
The Group assesses the recoverability of financial assets using an ‘expected credit loss’
(“ECL”) model. This impairment model is applied to financial assets measured at
amortized cost, contract assets and debt investments at Fair Value Through Other
Comprehensive Income (“FVOCI”), but not to investments in equity instruments.
In accordance with AASB 9, loss allowances are measured on either of the following bases:
•
12-month ECLs: these are ECLs that result from possible default events within the 12
months after the reporting date; and
•
Lifetime ECL: these are ECLs that result from all possible default events over the
expected life of a financial instrument.
ECLs are probability-weighted estimates of credit losses. Credit losses are measured at
the present value of all cash shortfalls (i.e. the difference between the cash flows due to
the Group in accordance with the contract and the cash flows that the Group expects to
receive). ECLs are discounted at the effective interest rate of the financial asset.
Categories of financial instruments
31 MAR 2024
31 MAR 2023
$
$
Financial assets
Cash and term deposits
5,552,999
2,704,166
Trade and other receivables
151,531
50,846
Financial liabilities
Trade and other payables
471,310
693,857
Financial Risk Management objectives and policies
The Group’s risk oversight and management program focuses on the unpredictability of
financial markets and seeks to minimise potential adverse effects and ensure that net
cash flows are sufficient to support the delivery of the Group’s financial targets whilst
protecting future financial security. The Group continually monitors and tests its forecast
financial position against these objectives and may undertake forward-rate agreements
when necessary to ensure the objectives are achieved.
The Group’s activities expose it to a variety of financial risks; market, credit and liquidity.
These risks are managed by senior management in line with policies set by the Board. The
Group’s principal financial instruments comprise cash and short-term deposits. Other
financial instruments include trade receivables and trade payables, which arise directly
from operations.
It is, and has been throughout the period under audit, Group policy that no speculative
trading in financial instruments be undertaken.
TREK METALS LIMITED | ANNUAL REPORT 2024
57
Market risk
(a)
Interest Rate Risk
The Group is exposed to interest rate risk, which is the risk that a financial instrument’s
value will fluctuate as a result of changes in market interest rates. The Group manages
this risk by maintaining an appropriate mix between fixed and floating rate instruments.
The effective weighted average interest rates on classes of financial assets and financial
liabilities are as follows:
31 March 2024
Weighted
Ave
Effective
Int Rate
%
Less than
1 month
$
1 month
– 1 year
$
1 – 5
years
$
5+
years
$
Total
$
Financial Assets
Non-interest bearing
-
151,531
-
-
-
151,531
Fixed interest rate
instruments
4.36
3,080,255
-
-
- 3,080,255
Variable interest rate
instruments
0.70
2,472,744
-
-
-
2,472,744
Total Financial
Assets
2.66
5,704,530
-
-
- 5,704,530
Financial Liabilities
Non-interest bearing
-
471,310
-
-
-
471,310
Total Financial
Liabilities
-
471,310
-
-
-
471,310
Financial assets are classified based upon their expected maturity whilst financial
liabilities are classified based upon their contractual maturity.
31 March 2023
Weighted
Ave
Effective
Int Rate
%
Less than
1 month
$
1 month
– 1 year
$
1 – 5
years
$
5+
years
$
Total
$
Financial Assets
Non-interest bearing
-
50,846
-
-
-
50,846
Fixed interest rate
instruments
0.15
21,551
-
-
-
21,551
Variable interest rate
instruments
0.70
2,682,615
-
-
-
2,682,615
Total Financial Assets
0.68
2,755,012
-
-
-
2,755,012
Financial Liabilities
Non-interest bearing
-
693,857
-
-
-
693,857
Total Financial
Liabilities
-
693,857
-
-
-
693,857
TREK METALS LIMITED | ANNUAL REPORT 2024
58
(b)
Currency risk
The Group has subsidiaries only operating in Australia, whose businesses are conducted
predominantly Australian Dollars, exposing the Group to minimal exchange rate
fluctuations.
(c)
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in financial loss to the Group. Due to the current nature of the Group’s operations
there is no significant concentration of credit risk. The credit risk on liquid funds is limited
because the counterparties are banks with high credit ratings assigned by international
credit-rating agencies.
The carrying amount of financial assets recorded in the financial statements, net of any
allowances for losses, represents the Group’s maximum exposure to credit risk without
taking account of the value of any collateral or other security obtained.
(d)
Capital Risk Management
The Group manages capital to ensure that companies in the Group will be able to continue
as a going concern while maximising the return to stakeholders through the optimisation
of the debt to equity balance. The Group’s focus has been to raise sufficient funds through
equity to fund exploration activity. Management also aims to maintain a capital structure
that ensures the lowest cost of capital available to the entity. The Group monitors capital
on the basis of the gearing ratio and the external borrowings currently in place however
this is not required since the facility was extinguished in the prior period.
(e)
Liquidity risk
Liquidity risk refers to the risk that the Group will have insufficient funds to meet its
operational requirements. The Group manages liquidity risk by monitoring forecast cash
flows and ensuring that adequate liquidity levels are maintained. The undiscounted
contractual or expected maturities of the financial assets and liabilities are reported in the
tables under “Interest rate risk”.
(f)
Fair Values
Monetary financial assets and liabilities not readily traded in an organised financial
market have been valued at cost, which approximates fair value.
The carrying amount of cash and cash equivalents approximate net fair value.
The carrying amounts and net fair values of financial assets and liabilities as at the
reporting date are as follows:
FAIR VALUE
31 MAR 2024
31 MAR 2023
HIERARCHY
$
$
Financial Assets
Trade and other receivables
Level 2
151,531
50,846
Financial Liabilities
Trade and other payables
Level 2
471,310
693,857
TREK METALS LIMITED | ANNUAL REPORT 2024
59
NOTE 20: COMMITMENTS
The Group has committed to the following minimum expenditure in relation to its
tenements.
31 MAR 2024
31 MAR 2023
$
$
Not later than 1 year
1,496,500
858,000
Later than 1 year and not later than 5 years
2,589,888
1,664,145
Later than 5 years
-
-
4,086,388
2,522,145
NOTE 21: CONTINGENCIES
TM RESOURCES ACQUISITION
On 16 September 2016, the Company, and the shareholders of TM Resources Pty Ltd (TM)
entered into a Share Sale Agreement which resulted in the Company acquiring all the
shares on issue in TM. The Company paid AUS$10,000 on execution of the Share Sale
Agreement.
The Company also agreed to pay the following contingent consideration:
•
Trek Metals Limited (TML) shares to the value of A$50,000 within 7 days of the
grant of the tenements that TM has applied for.
•
A$1,000,000 upon the public release by TML of Mineral Resource Estimate in
respect of the Lawn Hill Project of between 550Kt Zn eq - 1.1Mt Zn eq; and
•
A$3,000,000 upon the public release by TML of a Mineral Resource Estimate in
respect of the Lawn Hill Project of greater than 1.1Mt Zn eq.
There has been no change to the contingent consideration during the year.
ACQUISITION OF ARCHER X PTY LTD
On 1 December 2023, the Company completed the acquisition of Archer X Pty Ltd. Included
as part of the acquisition is a potential milestone consideration which is subject to and
conditional upon an announcement by Trek to ASX within 5 years of the date of the
Agreement, of the delineation by Trek of a 2,000,000 ounce gold equivalent resource as
verified by an independent competent person under the 2012 JORC code (JORC Code).
If achieved, Trek will be required to issue $5,000,000 worth of fully paid ordinary shares in
the capital of Trek based on the 20-day (VWAP) measured on the date which is two days
prior to the date of issue with a floor price of $0.15. Any shares (if issued) will be subject to
an escrow period of 6 months.
In addition, there is a 1.25% net smelter royalty for all minerals produced in respect of the
Tenements to the Shareholders of Archer. Under the terms of the Royalty, upon a decision
to mine being made at the Tenements, Trek will have the exclusive right to purchase the
Royalty for $5,000,000.
As at the reporting date, no value has been ascribed to the deferred consideration due to
being considered less than remote.
TREK METALS LIMITED | ANNUAL REPORT 2024
60
SHARE BASED PAYMENTS
On the 20th February 2024, the Board approved the issue of 3,000,000 Class R Performance
Rights to Director Valerie Hodgins. The issue of these Performance Rights are subject to
and conditional on shareholder approval at the 2024 Annual General Meeting which is
expected to be held in July 2024. The Performance Rights (if approved) will have the
following vesting conditions :-
Vesting Milestone Condition
% of Performance
Rights that will Vest on
achieving the relevant
milestone
•
20-day volume weighted average price (VWAP) of Shares
being greater than $0.15 per Share and;
•
Other than for reasons outside of the control of the Holder
(such as invalidity, bona fide redundancy, or death) the holder
remains employed or engaged with the Company for 12
months.
1/3
•
20-day volume weighted average price (VWAP) of Shares
being greater than $0.20 per Share and;
•
Other than for reasons outside of the control of the Holder
(such as invalidity, bona fide redundancy, or death) the holder
remains employed or engaged with the Company for 18
months.
1/3
•
20-day volume weighted average price (VWAP) of Shares
being greater than $0.25 per Share and;
•
Other than for reasons outside of the control of the Holder
(such as invalidity, bona fide redundancy, or death) the holder
remains employed or engaged with the Company for 24
months.
1/3
Total
100%
TREK METALS LIMITED | ANNUAL REPORT 2024
61
NOTE 22: RELATED PARTIES
(a)
Subsidiaries
The subsidiaries and associates of the Group are identified in Note 12. Transactions
between the Company and its subsidiaries, which are related parties of the Company,
have been eliminated on consolidation and are not disclosed in this note. Details of
transactions between the Group and other related parties are disclosed below.
(b)
Directors
The Directors of the Company during the year, and up to the date of this report, were as
follows:
•
Tony Leibowitz
•
Neil Biddle
•
John Young
•
Valerie Hodgins
(c)
Related party transactions (other than director salaries and fees)
Mr Tony Leibowitz (through Leibowitz Corporate Pty Ltd) provided services in relation to
promotional and equity raising costs to the Company during the year totalling $22,676
(2023: nil).
(d)
Compensation of Key Management Personnel
The remuneration of directors and other members
of key management during the year was as
follows:
31 MAR 2024
31 MAR 2023
$
$
Short term benefits
700,674
656,384
Share based payments
262,335
445,264
963,009
1,101,648
The remuneration of directors and key management is determined by the board having
regard to the performance of individuals and market trends. At the end of the reporting
period the following amounts were payable to KMPs:
•
$6,906 (2023: $6,906) was payable to Mr Young
There were no other balances outstanding from/to related parties.
TREK METALS LIMITED | ANNUAL REPORT 2024
62
NOTE 23: SHARE BASED PAYMENTS
Equity-settled share-based payments to directors, employees and others providing
similar services are measured at the fair value of the equity instrument at the grant date.
The fair value determined at the grant date of the equity-settled share-based payments
is expensed on a straight-line basis over the vesting period, based on the Group’s estimate
of shares that will eventually vest. At the end of each reporting period, the Group revises
its estimate 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 Share Based Payments Reserve.
The Trek Metals Ltd Employee Incentive Performance Rights and Options Plan (“Plan”) was
approved at the General Meeting of shareholders on 4 March 2021, and subsequently
renewed at the Annual General Meeting held on 20 October 2022.
(a)
Options issued
There were no options issued during the year ended 31 March 2024 as share based
payments.
(b)
Performance Rights issued
The Company has the following Performance Rights issued to Directors, employees and
consultants in existence during the current and previous reporting periods.
Performance Rights 2024
Class
Grant
date
Expiry Date
Opening
Balance 1
April 2023
Granted
during
the year
Expired/
Exercised
during the
year
Vested
during
the year
Rights
Vested
at 31
March
2024
Rights
Unvested
at 31 March
2024
A
5/03/2021
5/03/2025
4,375,000
-
-
-
-
4,375,000
B
5/03/2021
5/03/2025
4,000,000
-
-
-
-
4,000,000
C
5/03/2021
5/03/2025
4,000,000
-
-
-
-
4,000,000
D
5/03/2021
5/03/2025
750,000
-
(750,000)
750,000
-
-
E
5/03/2021
5/03/2025
900,000
-
(900,000)
-
-
-
F
5/03/2021
5/03/2025
900,000
-
(150,000)
-
750,000
-
G
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
H
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
I
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
J
21/01/2022 28/01/2026
800,000
-
(350,000)
-
-
450,000
K
21/01/2022 28/01/2026
800,000
-
(350,000)
-
-
450,000
L
29/11/2022
29/11/2025
4,600,000
-
(2,380,000)
4,136,000
2,220,000
-
M
29/11/2022
29/11/2026
4,450,000
-
(1,120,000)
-
-
3,750,000
N
1/05/2023
1/05/2026
-
1,000,000
(600,000)
600,000
-
400,000
O
1/05/2023
1/05/2027
-
1,000,000
-
-
-
1,000,000
P
16/01/2024
16/01/2027
-
1,500,000
-
-
-
1,500,000
Q
16/01/2024
16/01/2028
-
1,500,000
-
-
-
1,500,000
Total
31,575,000
5,000,000
(6,600,000)
5,486,000
2,970,000
27,425,000
The Company has agreed to issue 3,000,000 Class R Performance Rights to Director Ms Hodgins that are subject
to shareholder approval at the 2024 Annual General Meeting.
TREK METALS LIMITED | ANNUAL REPORT 2024
63
Performance Rights 2023
Class
Grant
date
Expiry Date
Opening
Balance 1
April 2022
Granted
during
the year
Expired/
Exercised
during
the year
Vested
during
the year
Rights
Vested
at 31
March
2023
Rights
Unvested
at 31 March
2023
A
5/03/2021
5/03/2025
4,375,000
-
-
-
-
4,375,000
B
5/03/2021
5/03/2025
4,000,000
-
-
-
-
4,000,000
C
5/03/2021
5/03/2025
4,000,000
-
-
-
-
4,000,000
D
5/03/2021
5/03/2025
900,000
-
(150,000)
-
750,000
-
E
5/03/2021
5/03/2025
900,000
-
-
900,000
900,000
-
F
5/03/2021
5/03/2025
900,000
-
-
900,000
900,000
-
G
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
H
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
I
1/09/2021
1/09/2025
2,000,000
-
-
-
-
2,000,000
J
21/01/2022 28/01/2026
800,000
-
-
-
-
800,000
K
21/01/2022 28/01/2026
800,000
-
-
-
-
800,000
L
29/11/2022
29/11/2025
-
4,600,000
-
-
-
4,600,000
M
29/11/2022
29/11/2026
-
4,450,000
-
-
-
4,450,000
Total
22,675,000
9,050,000
(150,000)
1,800,000
2,550,000
29,025,000
Valuation of the performance rights was undertaken with the following factors and
assumptions being used in determining the fair value of each right on the grant date.
Performance Rights
Class
Grant Date
Period
(years)
Valuation
per right $
Probability
Vesting Conditions
A
5/03/2021
4
$0.0492
100%
10-day VWAP of shares being greater than
A$0.15 per share.
The holder remains employed or engaged
with the Company for 12 months.
B
5/03/2021
4
$0.0452
100%
10-day VWAP of shares being greater than
A$0.20 per share.
The holder remains employed or engaged
with the Company for 18 months.
C
5/03/2021
4
$0.0420
100%
10-day VWAP of shares being greater than
A$0.25 per share.
The holder remains employed or engaged
with the Company for 24 months.
D
5/03/2021
4
$0.0663
100%
The holder remains employed or engaged
with the Company for 12 months.
E
5/03/2021
4
$0.0663
100%
The holder remains employed or engaged
with the Company for 18 months.
TREK METALS LIMITED | ANNUAL REPORT 2024
64
Performance Rights (cont.)
Class
Grant Date
Period
(years)
Valuation
per right $
Probability
Vesting Conditions
F
5/03/2021
4
$0.0663
100%
The holder remains employed or engaged
with the Company for 24 months.
G
1/09/2021
4
$0.0725
100%
10-day VWAP of shares being greater than
A$0.15 per share.
The holder remains employed or engaged
with the Company for 12 months.
H
1/09/2021
4
$0.0686
100%
10-day VWAP of shares being greater than
A$0.20 per share.
The holder remains employed or engaged
with the Company for 18 months.
I
1/09/2021
4
$0.0664
100%
10-day VWAP of shares being greater than
A$0.25 per share.
The holder remains employed or engaged
with the Company for 24 months.
J
21/01/2022
4
$0.0909
100%
10-day VWAP of shares being greater than
A$0.20 per share.
The holder remains employed or engaged
with the Company for 12 months.
K
21/01/2022
4
$0.0888
100%
10-day VWAP of shares being greater than
A$0.25 per share.
The holder remains employed or engaged
with the Company for 24 months.
L
29/11/2022
3
$0.0869
92%
20-day VWAP of shares being greater than
A$0.10 per share (40%)
The holder remains employed or engaged
with the Company for 12 months (40%)
Board discretion after 12 months based on
KPIs (20%)
M
29/11/2022
4
$0.0825
95%
60-day VWAP of shares being greater than
A$0.20 per share (40%)
The holder remains employed or engaged
with the Company for 24 months (40%).
Board discretion after 24 months based on
KPIs (20%)
N
1/05/2023
3
$0.0521
92%
20-day VWAP of shares being greater than
A$0.10 per share (40%)
The holder remains employed or engaged
with the Company for 12 months (40%)
Board discretion after 12 months based on
KPIs (20%)
TREK METALS LIMITED | ANNUAL REPORT 2024
65
Performance Rights (cont.)
Class
Grant Date
Period
(years)
Valuation
per right $
Probability
Vesting Conditions
O
1/05/2023
4
$0.0429
95%
60-day VWAP of shares being greater than
A$0.20 per share (40%)
The holder remains employed or engaged
with the Company for 24 months (40%).
Board discretion after 24 months based on
KPIs (20%)
P
16/01/2024
3
$0.0254
95%
20-day VWAP of shares being greater than
A$0.12 per share (40%)
The holder remains employed or engaged
with the Company for 12 months (40%)
Board discretion after 12 months based on
KPIs (20%)
Q
16/01/2024
4
$0.0248
95%
60-day VWAP of shares being greater than
A$0.20 per share (40%)
The holder remains employed or engaged
with the Company for 24 months (40%).
Board discretion after 24 months based on
KPIs (20%)
Performance Rights
Grant Date
Expiry Date
Class
Total
Valuation
$
Expense
recorded to 31
March 2024
$
5 March 2021
5 March 2025
Class A
$215,250
$215,250
5 March 2021
5 March 2025
Class B
$180,800
$180,800
5 March 2021
5 March 2025
Class C
$168,000
$168,000
5 March 2021
5 March 2025
Class D
$59,670
$59,670
5 March 2021
5 March 2025
Class E
$59,670
$59,670
5 March 2021
5 March 2025
Class F
$59,670
$59,670
1 Sept 2021
1 Sept 2025
Class G
$145,000
$145,000
1 Sept 2021
1 Sept 2025
Class H
$137,200
$137,200
1 Sept 2021
1 Sept 2025
Class I
$132,800
$132,800
21 Jan 2022
28 Jan 2026
Class J
$40,905
$40,905
21 Jan 2022
28 Jan 2026
Class K
$39,960
$39,960
29 Nov 2022
29 Nov 2025
Class L
$354,011
$354,011
29 Nov 2022
29 Nov 2026
Class M
$306,087
$204,337
1 May 2023
1 May 2026
Class N
$54,566
$49,944
1 May 2023
1 May 2027
Class O
$52,831
$24,211
16 Jan 2024
16 Jan 2027
Class P
$47,501
$19,727
16 Jan 2024
16 Jan 2028
Class Q
$47,141
$9,802
TREK METALS LIMITED | ANNUAL REPORT 2024
66
Expenses arising from share-based payment transactions:
Total expenses arising from share-based payment transactions recognised during the
period as follows:
31 MAR 2024
$
31 MAR 2023
$
Expensed to Statement of Profit or Loss
Options issued to staff and consultants
-
5,625
Performance Rights issued to key management personnel
264,552
445,263
Performance Rights issued to staff and consultants
278,573
225,707
543,125
676,595
NOTE 24: POST-BALANCE SHEET EVENTS
Other than described in this report, no matters or circumstances have arisen since the end
of the financial year which significantly affected or may significantly affect the operations
of the Group, the results of those operations, or the state of affairs of the Group in
subsequent financial years.
NOTE 25: REMUNERATION OF AUDITORS
31 MAR 2024
$
31 MAR 2023
$
Audit or review of the financial report
37,208
32,303
Other Non-audit services
-
-
37,208
32,303
The auditor of Trek Metals Limited is Hall Chadwick WA Audit Pty Ltd. The auditor provided
no non-audit services during the year.
TREK METALS LIMITED | ANNUAL REPORT 2024
67
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 31 MARCH 2024
The Directors declare that:
a)
in the directors’ opinion, there are reasonable grounds to believe that the company
will be able to pay its debts as and when they become due and payable;
b)
in the directors’ opinion, the attached financial statements are in compliance with
International Financial Reporting Standards, as stated in Note 1 to the financial
statements;
c)
in the directors’ opinion, the attached financial statements and notes thereto are
in compliance with accounting standards and giving a true and fair view of the
financial position and performance of the consolidated entity; and
This declaration has been made by the Board after receiving a declaration to the directors
by the Chief Executive Officer and Chief Financial Officer/Company Secretary.
On behalf of the Board
John Young
Non-executive Director
21 May 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TREK METALS LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Trek Metals Limited (“the Company”) and its subsidiaries (“the
Consolidated Entity”), which comprises the consolidated statement of financial position as at 31 March
2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the financial report of Trek Metals Limited presents fairly, in all material respects the consolidated
entity’s financial position as at 31 March 2024 and its financial performance for the year then ended
in accordance with Australian Accounting Standards; and
b.
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1a.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Those standards require that
we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit
to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Consolidated Entity in accordance
with the auditor independence requirements of the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Acquisition of Archer X Pty Ltd
During the year, the Consolidated Entity completed its
acquisition of Archer X Pty Ltd via the issue of shares
and cash payment. This transaction was accounted
for as an asset acquisition with the fair value of
consideration of $1,387,622.
This was a key audit matter due to:
•
The size of the transaction having a pervasive
impact on the financial statements; and
•
The complexity in identifying the elements of
consideration and the judgement applied in
determining its fair value.
Procedures performed as part of our assessment of the
transaction and the appropriateness of the accounting
treatment applied, included:
•
Reviewing the Tenement Sale Agreement (“the
agreement”) to obtain an understanding of the
key terms and conditions;
•
Critically evaluating the accounting treatment in
accordance
with
the
relevant
Australian
Accounting Standards;
•
Assessing management’s valuation of the
consideration
issued
including
relevant
assumptions; and
•
Assessment of the adequacy of the disclosures
in Note 11 of the financial statements.
Capitalised Exploration and Evaluation Costs
As disclosed in note 11 to the financial statements, the
Consolidated Entity has incurred significant exploration
and evaluation expenditures which have been
capitalised in accordance with the requirement of
Exploration for and Evaluation of Mineral Resources
(AASB 6). As at 31 March 2024, the Consolidated
Entity’s capitalised exploration and evaluation costs
are carried at $12,432,208.
The recognition and recoverability of the capitalised
exploration and evaluation costs was considered a key
audit matter due to:
•
The carrying value of capitalised exploration
and evaluation costs represents a significant
asset
of
the
Consolidated
Entity,
we
considered it necessary to assess whether
facts and circumstances existed to suggest
the carrying amount of this asset may exceed
the recoverable amount; and
Our audit procedures included but were not limited to:
•
Assessing management’s determination of its
areas of interest for consistency with the
definition in AASB 6 Exploration and Evaluation
of Mineral Resources (“AASB 6”);
•
Confirming rights to tenure for a sample of
tenements held and confirming rights to tenure
on tenements nearing expiry will be renewed;
•
Testing the Consolidated Entity’s additions to
capitalised exploration costs for the year by
evaluating a sample of recorded expenditure for
consistency
to
underlying
records,
the
capitalisation requirements of the Consolidated
Entity’s accounting policy and the requirements
of AASB 6;
•
By testing the status of the Consolidated
Entity’s tenure and planned future activities,
reading board minutes and discussions with
management we assessed each area of
interest for one or more of the following
Key Audit Matter
How our audit addressed the Key Audit Matter
•
Determining whether impairment indicators
exist involves significant judgement by
management.
circumstances that may indicate impairment of
the capitalised exploration costs:
•
The licenses for the rights to explore
expiring in the near future or are not
expected to be renewed;
•
Substantive
expenditure
for
further
exploration in the area of interest is not
budgeted or planned;
•
Decision or intent by the Consolidated
Entity to discontinue activities in the
specific area of interest due to lack of
commercially
viable
quantities
of
resources; and
•
Data
indicating
that,
although
a
development in the specific area is likely
to proceed, the carrying amount of the
exploration asset is unlikely to be
recorded
in
full
from
successful
development or sale; and
•
Assessing the appropriateness of the related
disclosures in the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included in
the Consolidated Entity’s annual report for the year ended 31 March 2024, but does not include the financial report
and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards 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 Note 1a, the directors also state, that the financial report complies
with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability 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 Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Consolidated Entity’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Consolidated Entity to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for
the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible
for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in
the audit of the financial report of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
HALL CHADWICK WA AUDIT PTY LTD
MARK DELAURENTIS CA
Director
Dated in Perth, Western Australia this 21st day of May 2024
TREK METALS LIMITED | ANNUAL REPORT 2024
73
ADDITIONAL SECURITIES EXCHANGE
INFORMATION AS AT 13 MAY 2024
STOCK EXCHANGE LISTING
Trek Metals Limited is listed on the Australian Securities Exchange. The Company’s ASX
code is TKM.
SUBSTANTIAL SHAREHOLDERS (HOLDING NOT LESS THAN 5%)
The Company is incorporated in Bermuda as an exempted company and is subject to
Bermudan Law. It is not subject to Chapters 6, 6A, 6B and 6C of the Australian Corporations
Act 2001 dealing with the acquisition of shares (including substantial shareholdings and
takeovers). There were no holders with a greater than 5% interest.
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement is set out at
https://trekmetals.com.au/corporate/corporate-governance/
CLASS OF SHARES AND VOTING RIGHTS
There are 3,018 holders of 513,472,862 ordinary fully paid shares of the Company. The
voting rights attaching to the ordinary shares are in accordance with the Company’s Bye-
Laws being that:
a)
each Shareholder entitled to vote may vote in person or by proxy, attorney or
Representative;
b)
on a show of hands, every person present who is a Shareholder or a proxy, attorney
or Representative of a shareholder has one vote; and
c)
on a poll, every person present who is a shareholder or a proxy, attorney or
Representative of a shareholder shall, in respect of each fully paid Share held by
him, or in respect of which he is appointed a proxy, attorney or Representative, have
one vote for the Share, but in respect of partly paid Shares, shall, have such number
of votes as bears the proportion which the paid amount (not credited) is of the
total amounts paid and payable (excluding amounts credited).
There are 126 holders of 41,666,618 listed share options in the Company.
There are no voting rights attached to the options or rights in the Company. Voting rights
are only applicable to the unissued ordinary shares when options or rights have been
exercised. There is no current on-market buy-back.
TREK METALS LIMITED | ANNUAL REPORT 2024
74
SECURITIES SUBJECT TO VOLUNTARY ESCROW
The Company has 3,340,990 shares held by two holders that are subject to voluntary
escrow until 19th June 2024.
DISTRIBUTION OF SECURITY HOLDERS - SHARES
Number of Shares Held
Number of Shareholders
%
1 – 1,000
611
0.02
1,001 – 5,000
196
0.12
5,001 – 10,000
319
0.51
10,001 – 100,000
1,263
9.85
100,001 and over
629
89.50
Total
3,018
100.00
The number of shareholders holding less than a marketable parcel is 1,221 based on the
closing price of the Company’s shares of $0.041.
DISTRIBUTION OF SECURITY HOLDERS – LISTED 8.5C SHARE
OPTIONS (EXPIRY 14 AUGUST 2025)
Number of Shares Held
Number of Shareholders
%
1 – 1,000
1
0.00
1,001 – 5,000
0
0.00
5,001 – 10,000
0
0.00
10,001 – 100,000
47
6.53
100,001 and over
78
93.47
Total
126
100.00
LISTING OF 20 LARGEST SHAREHOLDERS
Name of Ordinary Shareholder
Number of
shares
held
% Shares
Held
1
KALONDA PTY LTD
21,805,278
4.25
2
MR ALEX JORDAN
18,983,167
3.70
3
BIDDLE PARTNERS PTY LTD
14,647,059
2.85
4
TIFORP PTY LTD
10,000,000
1.95
5
FREIGHT SHOW PTY LTD
8,666,667
1.69
6
BNP PARIBAS NOMINEES PTY LTD
7,882,960
1.54
7
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
7,572,666
1.47
8
MR VIC PETROVICH
7,000,000
1.36
9
FREELIGHT NOMINEES PTY LTD
6,943,052
1.35
10
MR SCOTT DOUGLAS AMOS + MRS KAREN ELIZABETH AMOS
6,000,000
1.17
11
MS DANIELLE SHARON TUDEHOPE
5,000,000
0.97
TREK METALS LIMITED | ANNUAL REPORT 2024
75
Name of Ordinary Shareholder
Number of
shares
held
% Shares
Held
12
PILBARA MINERALS LIMITED
4,792,332
0.93
13
MR JOHN ALEXANDER YOUNG + MRS CHERYL KAYE YOUNG
4,760,869
0.93
14
MUSEUM INVESTMENTS LIMITED
4,536,231
0.88
15
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
4,262,075
0.83
16
FOREVERWRITE PTY LTD
4,000,000
0.78
17
MR PETER ANTHONY BUTTIGIEG + MRS JENNIFER LYNN
BUTTIGIEG
3,961,655
0.77
18
STARCHASER NOMINEES PTY LTD AH & AMB SUPER FUND A/C>
3,600,000
0.70
19
V & A INVESTMENTS PTY LTD
3,500,000
0.68
20
CHURCH STREET TRUSTEES LIMITED
3,333,333
0.65
151,247,344
29.46
TREK METALS LIMITED | ANNUAL REPORT 2024
76
LISTING OF 20 LARGEST LISTED OPTION HOLDERS
Name of Ordinary Shareholder
Number of
shares held
% Shares
Held
1
STARCHASER NOMINEES PTY LTD AH & AMB SUPER FUND A/C>
3,501,909
8.40
2
MR JOHN YACOUB
3,199,199
7.68
3
FREIGHT SHOW PTY LTD
2,831,889
6.80
4
TETS PTY LTD
2,500,000
6.00
5
TIFORP PTY LTD
1,666,666
4.00
6
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,499,999
3.60
7
KALONDA PTY LTD
1,383,333
3.32
8
CITICORP NOMINEES PTY LIMITED
1,361,111
3.27
9
BIDDLE PARTNERS PTY LTD
1,111,111
2.67
9
MR PETER ANTHONY BUTTIGIEG + MRS JENNIFER LYNN
BUTTIGIEG
1,111,111
2.67
11
RIYA INVESTMENTS PTY LTD
937,933
2.25
12
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY
LIMITED
777,778
1.87
13
JULIDA PTY LIMITED
706,436
1.70
14
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
583,333
1.40
15
MUSEUM INVESTMENTS LIMITED
555,555
1.33
15
NOHUNI PTY LTD
555,555
1.33
17
ONMELL PTY LTD
527,777
1.27
18
MR SCOTT LINDSAY RAUSCHENBERGER
500,000
1.20
19
UBS NOMINEES PTY LTD
486,111
1.17
20
REALEE PTY LTD
450,000
1.08
26,246,806
62.99
TREK METALS LIMITED | ANNUAL REPORT 2024
77
DISTRIBUTION OF SECURITY HOLDERS – UNQUOTED SECURITIES
a.)
Unlisted Options expiring 30th June 2024 @ $0.056
Number of Options Held
Number of holders
%
1 – 1,000
-
-
1,001 – 5,000
-
-
5,001 – 10,000
-
-
10,001 – 100,000
-
-
100,001 and over
2
100
Total – 1,500,000
2
100
Holders greater than 20% - Not applicable – Issued under Employee Incentive Scheme.
b.)
Performance Rights
Class
Number of Rights
Number of holders
Expiry Date
A
4,375,000
4
5th March 2025
B
4,000,000
3
5th March 2025
C
4,000,000
3
5th March 2025
F
750,000
1
5th March 2025
G
2,000,000
1
1st September 2025
H
2,000,000
1
1st September 2025
I
2,000,000
1
1st September 2025
J
450,000
1
28th January 2026
K
450,000
1
28th January 2026
L
2,220,000
2
29 November 2025
M
3,750,000
3
29 November 2026
N
400,000
1
1 May 2026
O
1,000,000
1
1 May 2027
P
1,500,000
1
16 January 2027
Q
1,500,000
1
16 January 2028
Total
30,395,000
Holders greater than 20% - Not applicable – Issued under Employee Incentive Scheme
TREK METALS LIMITED | ANNUAL REPORT 2024
78
COMPANY SECRETARY
Bermuda
Australia
Apex Corporate Services Ltd
Address: Vallis Building, 4th Floor,
58 Par-la-Ville Road
Hamilton HM 11
Russell Hardwick
PRINCIPAL REGISTERED OFFICE - AUSTRALIA
The address of the principal registered office in Australia is:
Suite 5, 2 Centro Avenue
Subiaco WA 6008
T +61 8 6383 7844
E info@trekmetals.com.au
REGISTER OF SECURITIES
Computershare
Level 17, 221 St Georges Terrace
PERTH WA 6000
P: + 61 8 9323 2018
TREK METALS LIMITED | ANNUAL REPORT 2024
79
SCHEDULE OF TENEMENTS
Tenement
Holder
Interest
E45/4909
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/4917
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/4640
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/6240 (application)
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/6664 (application)
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/5484
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/5839
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E45/6789 (application)
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E52/3605
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E52/3672
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E52/3983
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E52/4051
(Western Australia)
ACME Pilbara Pty Ltd
(100% owned subsidiary)
100%
E70/6000
(Western Australia)
ANAHEIM Pty Ltd
(100% owned subsidiary)
100%
E70/6001
(Western Australia)
ANAHEIM Pty Ltd
(100% owned subsidiary)
100%
E70/6004
(Western Australia)
ANAHEIM Pty Ltd
(100% owned subsidiary)
100%
E70/6072
(Western Australia)
ANAHEIM Pty Ltd
(100% owned subsidiary)
100%
E80/4975
(Western Australia)
Archer X Pty Ltd
(100% owned subsidiary)
100%
E80/5082
(Western Australia)
Newmont Exploration Pty Ltd
(Pending transfer to Archer X
Pty Ltd- 100% owned subsidiary)
100%
E80/5083
(Western Australia)
Newmont Exploration Pty Ltd
(Pending transfer to Archer X
Pty Ltd- 100% owned subsidiary)
100%
E80/5427
(Western Australia)
Newmont Exploration Pty Ltd
(Pending transfer to Archer X
Pty Ltd- 100% owned subsidiary)
100%
E80/5914
(Western Australia)
Newmont Exploration Pty Ltd
(Pending transfer to Archer X
Pty Ltd- 100% owned subsidiary)
100%
TREK METALS LIMITED | ANNUAL REPORT 2024
80
SCHEDULE OF TENEMENTS (CONT.)
Tenement
Holder
Interest
E80/6007 (application)
(Western Australia)
Archer X Pty Ltd
(100% owned subsidiary)
100%
E80/6010 (application)
(Western Australia)
Archer X Pty Ltd
(100% owned subsidiary)
100%
E80/6011 (application)
(Western Australia)
Archer X Pty Ltd
(100% owned subsidiary)
100%
E80/6012 (application)
(Western Australia)
Archer X Pty Ltd
(100% owned subsidiary)
100%
EL31260 (application)
(Northern Territory)
TM Resources Pty Ltd
(100% owned subsidiary)
100%
EL31261 (application)
(Northern Territory)
TM Resources Pty Ltd
(100% owned subsidiary)
100%
EL31751 (application)
(Northern Territory)
TM Resources Pty Ltd
(100% owned subsidiary)
100%
EL31752 (application)
(Northern Territory)
TM Resources Pty Ltd
(100% owned subsidiary)
100%
E46/616
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
80%
E46/787
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/835
(Western Australia)
Bellpiper Pty Ltd
(100% owned subsidiary)
100%
E46/1159
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/1160
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/1282
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/1304
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/1387
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
R46/002
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
80%
E46/1460 (application)
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
E46/1521 (application)
(Western Australia)
Edge Minerals Pty Ltd
(100% owned subsidiary)
100%
EL 33191 (application)
(Northern Territory)
ELM Resources Pty Ltd
(100% owned subsidiary)
80%