CONTENTS
CORPORATE DIRECTORY .............................................................................................................................................................. 2
REVIEW OF OPERATIONS .............................................................................................................................................................. 3
DIRECTORS’ REPORT .......................................................................................................................................................................19
AUDITORS’ INDEPENDENCE DECLARATION ..................................................................................................................... 27
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........... 28
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .......................................................................................... 30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................................. 31
CONSOLIDATED STATEMENT OF CASH FLOWS ........................................................................................................... 33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .................................................................................... 34
CONSOLIDATED ENTITY DISCLOSURE STATEMENT .................................................................................................... 68
DIRECTORS’ DECLARATION ...................................................................................................................................................... 70
INDEPENDENT AUDITOR’S REPORT ......................................................................................................................................... 71
ADDITIONAL SECURITIES EXCHANGE INFORMATION ............................................................................................... 75
TREK METALS LIMITED | ANNUAL REPORT 2025
2
CORPORATE DIRECTORY
DIRECTORS/MANAGEMENT
Tony Leibowitz Non-Executive Chairman
John Young
Non-Executive Director
Neil Biddle
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
Automic
GPO Box 5193
Sydney NSW 2001
AUSTRALIA
Tel: +61 2 9698 5414
AUDITORS
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco
WA 6008
WEBSITE
www.trekmetals.com.au
TREK METALS LIMITED | ANNUAL REPORT 2025
3
REVIEW OF OPERATIONS
The year to 31 March 2025 has been a very positive and productive period for Trek Metals
Limited (“Trek” or “the Company”), with the Company’s exploration programs delivering a
compelling emerging gold discovery at the Christmas Creek Gold Project in the Kimberley
region of Western Australia.
The Christmas Creek Project, which was acquired by Trek in October 2023, 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 completed its maiden drilling program at Christmas Creek during the September 2024
Quarter, with drilling at the Martin Prospect intersecting 10m @ 12.66g/t Au and 10m @ 7.34g/t
Au.
Down-hole televiewer survey data has since confirmed that these high-grade gold intercepts
are related to a series of stacked veins intercepted at close to true width and were not drilled
down a vein/structure.
Preparations for a pivotal follow-up drilling program at the Christmas Creek Project were
underway at the end of the reporting period, with drilling scheduled to commence in early June.
Elsewhere within the Company’s project portfolio, discussions with Traditional Owners
continued during the year to negotiate access to the McEwen Hills Niobium Project in the
Northern Territory.
Following a strategic review of the Company’s assets, an Earn-In Agreement was signed during
the reporting period with DevEx Resources (ASX: DEV) over the Jimblebar Ni-Cu-PGE Project and
an Option Agreement was signed with Advanced Energy Fuels, Inc to divest the South Woodie
Woodie (previously Hendeka) Manganese Project.
Subsequent to the end of the reporting period, the Company conducted a strongly supported
capital raising of $3.5 million (before costs) to accelerate exploration at the Christmas Creek
Project and for general working capital.
TREK METALS LIMITED | ANNUAL REPORT 2025
4
CHRISTMAS CREEK PROJECT (KIMBERLEY, WESTERN AUSTRALIA)
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.
Located south-west of Halls Creek, the Christmas Creek Project comprises a previously
unexplored, largely concealed district-scale gold and rare earths exploration opportunity in the
Kimberley region of WA associated with major continental-scale tectonic lineament
intersections (Figure 1). Trek completed the acquisition of the Christmas Creek Project, which
was previously part of Newmont Exploration Pty Ltd’s (Newmont) global exploration portfolio, in
the December 2023 Quarter. The Company has also secured additional tenement applications
to add to this district-scale greenfields gold and rare earths exploration project.
During the reporting period, Trek completed an 8,437m Reverse Circulation (RC) drilling
program at Christmas Creek targeting gold and rare earths mineralisation.
The program focused on four gold prospects – Martin, Coogan, Zahn and Willis – which were
identified through the integration and analysis of legacy exploration data, re-processing of
geophysical datasets, and the completion of a targeted soil sampling campaign.
TREK METALS LIMITED | ANNUAL REPORT 2025
5
Martin
Historical drilling at the Martin Prospect initially targeted a very large, 4km diameter gold-in-
soil anomaly under thin cover. Exploration at Martin by previous owner, Newmont, was restricted
to Air-core (AC) drilling and three Reverse Circulation (RC) sections in the central part of the
soil anomaly.
Significant mineralisation was intersected on each RC section, including 7m at 4.9g/t Au
(including 1m at 29.6g/t Au) from 24m in hole NEWXCAC196, 2m @ 9.65g/t Au from 72m in
NEWXCRC012 and 4m @ 1.22g/t from 8m and 3m @ 2.03g/t Au from 137m in NEWXCRC015.
Assay results from Trek’s maiden drilling returned two significant high-grade intercepts in hole
24XCRC097, comprising:
•
10m @ 12.66g/t Au from 59m, including:
o
1m @ 32.6g/t Au; and
o
3m @ 29.8g/t Au.
•
10m @ 7.34g/t Au from 94m, including:
o
2m @ 31.1g/t Au; and
o
1m @ 7.85g/t Au.
Figure 2: Cross-section at Martin, highlighting the two significant recent gold intercepts in yellow, the vein orientation in
NEWXCRC012, and an interpreted anticline with an untested associated target zone below.
Down-hole televiewer surveys were subsequently undertaken on hole 24XCRC097, with data
showing that the majority of the veins intersected in 24XCRC097 were intersected at a relatively
high angle to the hole axis. This suggests that the veins were intersected at close to true width
and, importantly, the hole was not drilled down a vein, which would give a much wider (but less
significant) apparent intersection.
TREK METALS LIMITED | ANNUAL REPORT 2025
6
Trek’s hole 24XCRC097 was designed to follow up the high-grade intercept of 2m @ 9.65g/t Au
in NEWXCRC012. NEWXCRC012 was the southernmost hole of its drill section and was
unconstrained. Hole 24XCRC097 was designed as a scissor hole and drilled to the south due to
the interpretation that the mineralised vein in hole NEWXCRC012 was intersected at a low angle.
Hole NEWXCRC012 appears to have only intersected one vein as the hole was drilled in a sub-
parallel orientation to that of the mineralised vein set, whereas hole 24XCRC097 has drilled
across the veins, intersecting numerous mineralised veins (Figure 3 and Figure 5).
These down-hole results have significantly upgraded the prospectivity of the Martin Prospect
to host a significant accumulation of gold.
Figure 3: Cross-section at Martin, highlighting the two significant recent gold intercepts in yellow and the mineralised
vein orientations in NEWXCRC012 & 24XCRC097 showing the interpreted stacked vein system. Refer to Figure 7 for
cross-section reference line in plan view.
TREK METALS LIMITED | ANNUAL REPORT 2025
7
Figure 4: Martin Prospect plan with gold in drilling highlighting the previously reported two emerging gold trends. Black
box showing the extent of Figure 5 below (zoomed in around significant intercepts in 24XCRC097 & NEWXCRC012).
Figure 5: Zoomed in plan view at Martin, highlighting the mineralised vein orientations and interpreted bedding from
the holes around the significant intercepts in 24XCRC097 & NEWXCRC012. As above coloured gold grades from drilling.
Section markers A & A’ relating to Figure 3.
TREK METALS LIMITED | ANNUAL REPORT 2025
8
The geological interpretation of the down-hole televiewer data suggests that the gold-bearing
veins are situated in the hinge position of a folded sequence of meta-sedimentary rocks
(Figures 2 & 3).
The Company has identified visible gold in drill chips following further analysis of the high-
grade gold intervals. The occurrence of visible gold in drilling is a positive indication in terms of
potential, both from a geological and processing point of view, although metallurgical testing
will be required.
Zahn
Zahn is a large (>2km across) surface Deep Sensing Geochemistry (DSG) gold anomaly in an
area of thin cover. It has the strongest amplitude of any DSG gold anomaly in the project area,
however the geology of the Zahn Prospect has until now been enigmatic.
Assay results from Trek’s drilling at Zahn during 2024 returned several encouraging
intersections with low level, but highly significant, gold mineralisation including:
•
28m @ 0.18g/t Au from 20m in 24XCRC074, including:
•
7m @ 0.35g/t Au from 26m, with:
•
1m @ 0.65g/t Au from 29m
Following the receipt of one-metre assays and a reinterpretation of the magnetic data at Zahn,
a geological model has emerged that indicates that it has the classic characteristics of an
Orogenic gold camp.
The most common geological setting for a major Orogenic gold camp is an antiform adjacent
to a major structure, usually where that major structure has a bend in its trend. All of these
elements are now recognised at Zahn.
This new interpretation at Zahn defines a series of obvious structures for follow-up, these being
the interpreted mineralised dolerite contacts adjacent to the major regional structure (see
Figure 6). It is particularly notable that the intersection in 24XCRC074, which is the best to date
at Zahn (28m @ 0.18g/t Au) is associated with an interpreted dolerite contact that is open and
completely untested for about 800m towards this major structure, discussed above.
TREK METALS LIMITED | ANNUAL REPORT 2025
9
Figure 6: Plan view of the Zahn Prospect area, showing target zones, drilling with significant intercept callouts and
selected soil samples above 5ppb Au. The background image is magnetics (TMI RTP 1VD) and shows an interpreted early
high-mag intrusive that has been folded, providing antiformal structures adjacent to a demagnetised structural
corridor / Major Structure. The interpreted antiformal dolerite contacts represent high priority drill targets for the
upcoming field program.
Other Prospects
Several important mineralised trends have been interpreted from previous and 2024 season
soil sampling. These are shown in Figure 7, along with the associated prospect names. There is
evidence for three key mineralisation signatures in the soil geochemistry:
•
Au-As -(W-Pb-Zn-Cd-Cu-Bi) at Zahn
•
Au-Low As –(Cu-Bi-Pb-Te) at Coogan, Willis and Martin
•
Pb-Ag –(Zn-Cu-Bi) as a halo to Au-Cu mineralisation at Coogan and Zahn (and
potentially indicative of buried mineralisation at Jobs, Smith, Price and Nicks).
The combined core and halo responses are multi-square-kilometre targets at Coogan and
Zahn. Both prospects have delivered significant, but low grade, anomalism in drilling to date.
However, both are large target areas and remain highly prospective and significantly under-
explored. Interpretation of soil sampling data has also outlined extensive multi-kilometre scale
targets at both the Zahn and Coogan Prospects, further enhancing the discovery potential at
Christmas Creek.
TREK METALS LIMITED | ANNUAL REPORT 2025
10
Figure 7: Categorised surface geochemical responses at the greater Christmas Creek Project area highlight the large
multi-square-kilometre responses associated with the Coogan and Zahn Prospect areas.
Next Steps
In light of the strength of the results received, including televiewer data indicating a series of
stacked (sheeted) quartz veins and the observation of visible gold across both thick, high-
grade, intercepts, Trek decided to fast-track drill testing the interpreted extensions to this
system.
Martin remains the priority focus for drilling, which is scheduled to commence in early June
2025. To support this follow-up drilling, Trek commenced high-resolution geophysical surveys
over the Christmas Creek Project. The ground gravity, passive seismic and drone magnetic
surveys will provide a comprehensive set of data to build the sub-surface geological
framework that will be critical to understanding the location and distribution of gold-bearing
veins.
TREK METALS LIMITED | ANNUAL REPORT 2025
11
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 continued
success of WA1 Resources in defining the scale of their Luni Niobium discovery along strike from
Trek’s McEwen Hills Project highlights the potential of the province.
Figure 8. Magnetic imagery highlighting the continuity of the geology across the state border, with the Luni & Crean 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.
The tenement application area is located within freehold aboriginal lands of the Lake MacKay
Aboriginal Land Trust and is administered by the Central Land Council. Access and exploration
for gold has previously been completed by Tanami Gold NL, Normandy Gold Exploration (later
Newmont) and ABM Resources, so there is a precedent for access to the land.
Trek attended an on-country meeting with the Traditional Owners of the land underlaying its
tenement application ELA33191 in May 2024. Meeting members of the Lake MacKay Aboriginal
Land Trust in Nyirripi, Northern Territory, represents an important step in the negotiation process
and is essential for the grant of the tenement to occur. The Company is awaiting a draft access
agreement from the Central Land Council.
During the reporting period, Trek was awarded up to a $66,000 co-funding grant as part of the
Northern Territory Geophysics and Drilling Collaborations Program. The grant was used to
support a detailed airborne magnetic survey designed to increase the resolution of magnetic
features and fine-tune targets for follow-up gravity geophysics. The combination of gravity
and magnetic geophysical data are two of the key datasets used to target intrusion-related
deposits (e.g., IOCG and carbonatite-related mineralisation. The magnetic data is currently
being interrogated to aid target generation and plan next steps should land access to the
project be granted.
TREK METALS LIMITED | ANNUAL REPORT 2025
12
PINCUNAH GOLD PROJECT (PILBARA, WESTERN AUSTRALIA)
During the June 2024 Quarter, Trek completed a maiden drilling program at the Champagne
Pool
target.
This
program
comprised
three
drill
holes
to
test
the
coincident
geochemical/geophysical anomaly that defined the Champagne Pool target.
The drilling intersected dominantly basaltic lithologies, with lenses of ultramafic rock and
graphitic shale. The third hole penetrated a shear zone that separates the basaltic lithologies
from a sequence of sandstones. Alteration and mineralisation of pathfinder elements is
strongest within the logged graphitic shale units where porosity and permeability are proposed
to have been greater than the surrounding volcanic rocks, however there is a strong halo
around the shale and lithology boundaries indicating significant fluid flow after deposition of
the various units.
Interpretation of the mineral system following drilling is that is has been folded and is now near-
vertical where it was originally emplaced as horizontal sheets that followed the most porous
and permeable lithologies or structural breaks.
Drill assay results for the pathfinder elements are significantly above the levels seen in the soil
sampling. Mercury (Hg) peaked at 247ppm, with supporting indicator elements Tellurium (Te)
reaching 2.23ppm and Antimony (Sb) 72ppm. The crustal average abundance of Mercury (Hg)
is 0.085ppm (CRC#1) and Tellurium (Te) 0.001ppm (CRC#1), with ten times these levels
considered a significant anomaly.
Pathfinder element zoning patterns in hydrothermal systems are consistent regardless of the
type of system as they reflect a temperature gradient. Evident in the assay results from
Champagne Pool is a temperature gradient as defined by geochemical zonation from high
temperature Mo to Bi to As to Sb.
The predominance of highly elevated low temperature elements – particularly Hg, Sb and Te –
are the key indicators of the epithermal model that is proposed at the Champagne Pool target.
Evident in the geochemistry is a trend of increasing temperature and alteration towards the
west, with a plunge component also to the west as shown in Figure 9. Drill-hole 24PNRC003 is
the only hole to contain a high temperature metal association and is therefore considered the
closest to the heat and fluid source of the observed alteration.
The three completed holes and the assay data received, point strongly to an eastward flow of
mineralising fluids and suggest that future exploration should be concentrated to the west of
the drilling (refer to plan view and westward increasing temperature gradient).
Various methods of follow-up exploration is being considered.
TREK METALS LIMITED | ANNUAL REPORT 2025
13
Figure 9: Plan view of the Champagne Pool drill results with down-hole Hg, Te & Sb bar graphs, confirming a bedrock
source to the surface geochemical anomalism (shown as dots, refer ASX 26/03/24) and providing a vector towards a
potential gold-bearing zone to the West/North-West.
HENDEKA MANGANESE PROJECT (PILBARA, WESTERN AUSTRALIA)
In September 2024, Trek entered into an option and acquisition agreement (“Option and
Acquisition Agreement”) with Advanced Energy Fuels, Inc. (“AEF”) over Trek’s Hendeka
Manganese Project in the Pilbara region of Western Australia. The Option and Acquisition
Agreement gives AEF an option to acquire the Hendeka Project as part of a proposed North
American listing and by making certain payments and sole funding A$2 million of exploration
and development expenditures. On 4 February 2025, the parties agreed to amend the terms of
the Option and Acquisition Agreement whereby AEF issued 2,000,000 shares from the Option
consideration upfront to Trek and, in return, receive a 12-month extension to the proposed US
listing date for AEF to 30 September 2026. During the March 2025 Quarter, AEF, reported highly
encouraging assay results from early-stage exploration conducted under the Option and
Acquisition Agreement. This initial field campaign comprised prospect-scale geological
mapping and surface sampling, with a total of 302 rock chip samples collected. The program
successfully delineated high-grade manganese mineralisation across four priority prospects
– Pearana, Pothole, Sharks Fin, and Pearana South – in proximity to favourable geological
settings.
The most significant results were returned from the Pearana Prospect (Figure 10), a >4 km
NW-SE trending ridge underlain by Pinjian Chert Breccia, the principal host unit at the
nearby Woodie Woodie manganese mine. Assays exceeding 30% Mn were returned over
a continuous 3.5 km strike length, confirming the presence of extensive, high-grade
surface mineralisation.
TREK METALS LIMITED | ANNUAL REPORT 2025
14
Figure 10. Pearana Prospect rock chip sample assays and geology (Pinjian Chert Breccia – blue, colluvium brown).
The Pearana Prospect is located within granted Exploration Licences E46/1521 and E46/1387,
enabling AEF to progress toward drill testing. A heritage agreement with the Nyamal people
and a land access agreement with the pastoral leaseholder are in place. A heritage survey
request, Program of Work, and Exploration Operations Notice have been prepared for
submission to facilitate on-ground exploration.
Next steps include detailed geological mapping and geophysical surveys – gravity, magnetics,
and electromagnetics – to refine drill targets. A drilling contractor is being shortlisted, with a
track-mounted rig anticipated to access key terrain. Earthworks and drill pad construction are
scheduled in advance of the maiden drill program. Further surface sampling and geochemical
analysis are planned to enhance target delineation.
In parallel, AEF has continued development of its manganese processing flowsheet, including
battery precursor test-work on concentrates derived from Contact Resource diamond drill
core. Variability beneficiation test-work, based on samples from three planned starter pits, has
been completed and supports earlier findings announced by Trek in its ASX release titled
"Metallurgical Test Work Delivers Manganese Concentrate Grades in Excess of 30% Mn" dated
27 October 2023.
Downstream test-work has commenced at two laboratories focused on the separation and
purification stages required to produce High-Purity Manganese Sulphate Monohydrate
(HPMSM), a key input material for lithium-ion battery cathodes.
TREK METALS LIMITED | ANNUAL REPORT 2025
15
JIMBLEBAR NICKEL-COPPER-PGE PROJECT (PILBARA, WESTERN
AUSTRALIA)
During the reporting period, Trek signed an Earn-in Agreement with a subsidiary of DevEx
Resources Limited (ASX: DEV) for an option to earn-in to the Jimblebar Nickel-Copper Project in
the Pilbara region of Western Australia.
The Jimblebar Project comprises over 200km2 of granted tenements adjacent to known
occurrences of copper sulphide mineralisation at the Copper Knob prospect and chromite at
the historical Coobina chromite mine, on the northern margin of the Silvania Dome in Western
Australia.
DevEx commenced a SQUID electromagnetic survey during the September 2024 Quarter to test
poorly exposed Archean mafic and ultramafic greenstone stratigraphy for copper-nickel
mineralisation associated with orthomagmatic intrusions. Due to the onset of the wet season,
the survey has been postponed with field activities planned to recommence in May 2025 once
weather conditions permit access.
OTHER PROJECTS
After taking into consideration current market conditions and investor sentiment, the Trek
Board resolved to pursue alternative pathways for the following projects, including through
potential joint ventures, external funding arrangements or divestment:
•
Tambourah Lithium Project.
•
Hendeka Manganese Project – Option Agreement signed.
•
Jimblebar Ni-Cu Project – Earn-in Agreement signed.
•
Lawn Hill Base Metals & Uranium Project – Earn-in Agreement signed.
This is consistent with Trek’s strategic focus on its high-priority Christmas Creek Gold Project in
the Kimberley region of WA and its McEwen Hills Niobium Project, located along strike from WA1’s
world-class Luni discovery.
TREK METALS LIMITED | ANNUAL REPORT 2025
16
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
EARN-IN AGREEMENTS WITH DEVEX RESOURCES
During the year, Trek signed two Earn-in Agreements with subsidiaries of DevEx Resources
Limited (ASX: DEV) for an option to earn-in to the Jimblebar Nickel-Copper Project in the Pilbara
region of Western Australia and to progress the Lawn Hill-Murphy West Uranium Project, NT.
Material terms of the earn-in agreements were included in the ASX Release dated 11th June 2024.
CAPITAL RAISING
Subsequent to the end of the reporting period, the Company completed a strongly supported
capital raising of $3.5 million (before costs) to accelerate exploration at the Christmas Creek
Project and for general working capital. The Company issued 65 million fully-paid ordinary
shares in the capital of the Company at an issue price of $0.05 per Share to existing and new
professional and sophisticated investors, to raise a total of $3.25 million (Tranche One).
In addition, Directors Tony Leibowitz and John Young have committed to participate for a total
of $0.25 million on the same terms as Tranche One in a second tranche which will be subject
to shareholder approval (Tranche Two).
TREK METALS LIMITED | ANNUAL REPORT 2025
17
FINANCIAL REVIEW
The group began the year with $5,552,999 in cash and ended the year with $1,697,383 in cash.
During the year the company expended $2,566,811 (2024: $2,804,632) on Exploration and
Evaluation expenditure that was capitalised during the year.
The Group incurred a loss for the year of $3,422,863 (2024 Loss: $1,705,090). Significant
expenditure items during the period include:
−
Exploration and evaluation expense of $218,369 (2024: $75,945);
−
Exploration and evaluation impaired of $2,568,235 (2024: $nil);
−
Directors’ salaries and Consulting Fees of $325,250 (2024: $391,675); and
−
Share based payment of $359,798 (2024: $543,125).
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
5 June 2025
TREK METALS LIMITED | ANNUAL REPORT 2025
18
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 2025
19
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 2025.
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 2025 was $3,422,863 (31 March 2024:
$1,705,090). 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.
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 – 26,653,896
•
Options – 1,383,333
•
Performance Rights – nil
TREK METALS LIMITED | ANNUAL REPORT 2025
20
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 – 18,761,849
•
Options – 1,111,111
•
Performance Rights – nil
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 (resigned 14 July 2024)
•
Bardoc Gold Limited (resigned 13 April 2022)
•
Astute Metals NL (resigned 31 May 2025)
Director Holdings
•
Shares – 8,526,607
•
Options – 277,777
•
Performance Rights – nil
TREK METALS LIMITED | ANNUAL REPORT 2025
21
Valerie Hodgins
Non-Executive
Director
(Independent)
Appointed
1 July 2022
Resigned
2 December 2024
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 resigned as a director on 2 December 2024.
Special responsibilities
None
Directorships held in other listed entities during the three years
prior to the current year
None
Director Holdings as at date of resignation
•
Shares – 833,333
•
Options – 277,778
•
Performance Rights – 3,000,000 Class R
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-governance
TREK METALS LIMITED | ANNUAL REPORT 2025
22
BOARD MEETINGS
The Directors held six (5) “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
5
5
Neil Biddle
5
4
John Young
5
5
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 2025
Balance 1 April
2024
Exercise of Options/
Rights received as
compensation
Net Change
Other
Balance 31
March 2025
Tony Leibowitz
22,940,162
-
3,213,734
26,153,896
Neil Biddle
15,342,467
-
3,419,382
18,761,849
John Young
8,526,607
-
-
8,526,607
Valerie Hodgins*
833,333
-
-
*833,333
Derek Marshall
1,260,143
750,000
(93,476)
1,916,667
*Ms Hodgins resigned on 2 December 2024, with number of shares held at date of resignation
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
TREK METALS LIMITED | ANNUAL REPORT 2025
23
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 2025
Balance 1
April
2024
Granted as
Compensation
Expired
during the
year
Exercised
during
the year
Balance
31 March
2025
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*
-
3,000,000
-
-
3,000,000
-
Derek Marshall
9,800,000
10,000,000
(500,000)
(750,000)
18,550,000
1,550,000
*Ms Hodgins resigned on 2 December 2024
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
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 2025
Balance 1 April
2024
Other changes
during the year
Total Exercisable
31 March 2025
Balance
31 March 2025
Tony Leibowitz
1,383,333
-
-
1,383,333
Neil Biddle
1,111,111
-
-
1,111,111
John Young
277,777
-
-
277,777
Valerie Hodgins*
277,778
-
-
*277,778
Derek Marshall
55,555
-
-
55,555
*Ms Hodgins resigned on 2 December 2024 with number of options held at date of resignation.
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
TREK METALS LIMITED | ANNUAL REPORT 2025
24
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 4th July 2024, shareholders approved a new Incentive Performance Rights and Option Plan
(“Plan”) and participation by Directors in that plan. A revised plan will be put forward to
shareholder for approval at the 2025 Annual General Meeting. 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 2025
25
A summary of the operating losses and share prices at year end for the last four years are as
follows:
2022
2023
2024
2025
Net Profit/(Loss)
($2,185,622)
($3,990,953)
($1,705,090)
($3,422,863)
Share price at year end
$0.074
$0.065
$0.037
$0.054
Earnings per share
(0.778c)
(1.204c)
(0.364c)
(0.663c)
Remuneration earned and the value ascribed to share based payments which were expensed
during the year ended 31 March 2025 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
2025
Directors/
Consulting
Fees
$
Super
$
Total
$
Options/Rights
Granted
$
Non-Executive
Tony Leibowitz
120,000
13,650
133,650
-
133,650
-
Neil Biddle
75,000
8,531
83,531
-
83,531
-
Valerie Hodgins*
50,000
5,656
55,656
-
55,656
-
John Young
83,125
-
83,125
-
83,125
-
Executive
Derek Marshall
299,250
29,375
328,625
145,763
474,388
30.7%
627,375
57,212
684,587
145,763
830,350
*Ms Hodgins resigned on 2 December 2024
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
TREK METALS LIMITED | ANNUAL REPORT 2025
26
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
Subsequent to the end of the reporting period, the Company completed a strongly supported
capital raising of $3.5 million (before costs) to accelerate exploration at the Christmas Creek
Project and for general working capital. On 2 May 2025, the Company issued 65 million fully-
paid ordinary shares in the capital of the Company at an issue price of $0.05 per Share to
existing and new professional and sophisticated investors, to raise a total of $3.25 million.. In
addition, Directors Tony Leibowitz and John Young have committed to participate for a total of
$0.25 million on the same terms which are subject to shareholder approval at the Annual
General meeting to be held in July 2025.
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 2025 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
5 June 2025
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 2025, 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 this 5th day of June 2025
Perth, Western Australia
TREK METALS LIMITED | ANNUAL REPORT 2025
28
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
NOTES
YEAR ENDED
31 MARCH 2025
$
YEAR ENDED
31 MARCH 2024
$
Continuing Operations
Investment revenue
6
99,175
160,699
Fair value movement in deferred
consideration liability
6/11
368,750
-
Other income
6
495,669
120,085
Share based payment expense
23
(359,798)
(543,125)
Exploration & evaluation expense
(218,369)
(75,945)
Exploration & evaluation expense
impaired
11
(2,568,235)
-
Finance costs
(5,543)
(18,115)
Other operating expenses
6
(1,234,512)
(1,348,689)
Loss before tax
(3,422,863)
(1,705,090)
Income tax expense
8
-
-
Loss for the year
(3,422,863)
(1,705,090)
Attributable to:
Equity holders of the Parent
(3,422,863)
(1,705,090)
Loss per share for loss attributable
to the ordinary equity holders of the
Parent:
Cents/share
Cents/share
Basic loss per share
7
(0.663)
(0.364)
Diluted loss per share
7
(0.663)
(0.364)
Notes forming part of these financial statements are included on pages 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
29
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
NOTES
YEAR ENDED
31 MARCH 2025
$
YEAR ENDED
31 MARCH 2024
$
Loss for the year
(3,422,863)
(1,705,090)
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
(32,026)
(54,000)
Total Comprehensive Loss for the Year
Attributable
to
Owners
of
the
Company
(3,454,889)
(1,759,090)
Notes forming part of these financial statements are included on pages 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
30
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
AS AT 31 MARCH 2025
NOTES
31 MARCH 2025
$
31 MARCH 2024
$
ASSETS
Current Assets
Cash and cash equivalents
9
1,697,383
5,552,999
Trade and other receivables
10
86,091
187,076
Total current assets
1,783,474
5,740,075
Non-current Assets
Property, plant and equipment
318,867
255,966
Right of Use assets
15
34,721
59,489
Exploration and evaluation expenditure
11
12,430,784
12,432,208
Financial assets
19
354,000
86,026
Total non-current assets
13,138,372
12,833,689
Total Assets
14,921,846
18,573,764
LIABILITIES
Current Liabilities
Trade and other payables
14
300,257
471,310
Lease liabilities
15
26,427
28,844
Provision
16
64,963
49,094
Shares payable
11
-
500,000
Total current liabilities
391,647
1,049,248
Non-current Liabilities
Lease liabilities
15
12,018
35,600
Total non-current liabilities
12,018
35,600
Total Liabilities
403,665
1,084,848
NET ASSETS
14,518,181
17,488,916
Equity
Issued capital
17
38,436,026
38,281,358
Reserves
17/18
61,893,718
62,301,556
Accumulated loss
(85,811,563)
(83,093,998)
Total Equity
14,518,181
17,488,916
Notes forming part of these financial statements are included on pages 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
31
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Consolidated
Note
Issued Capital
Share Premium
Reserve
Share Based
Payments
Reserve
Asset
Revaluation
Reserve
Accumulated
Losses
Total Equity
$
$
$
$
$
$
Balance at 1 April 2024
38,281,358
60,694,802
1,660,754
(54,000)
(83,093,998)
17,488,916
Loss for the year
-
-
-
-
(3,422,863)
(3,422,863)
Other comprehensive income/(loss)
-
-
-
(32,026)
-
(32,026)
Total comprehensive loss for the year
-
-
-
(32,026)
(3,422,863)
(3,454,889)
Transactions with owners, recorded directly in
equity
Issue of ordinary shares
17
122,138
9,112
-
-
-
131,250
Share based payments
23
-
-
359,798
-
-
359,798
Expiry of share options
18(b)
-
-
(69,887)
-
69,887
-
Expiry of performance rights
18(b)
-
-
(635,411)
-
635,411
-
Performance rights exercised
18(b)
39,424
105,337
(144,761)
-
-
-
Share issue expenses
17
(6,894)
-
-
-
-
(6,894)
Balance at 31 March 2025
38,436,026
60,809,251
1,170,493
(86,026)
(85,811,563)
14,518,181
Notes forming part of these financial statements are included on pages 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
32
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)
-
-
(325,000)
-
-
325,000
-
Expiry of performance
rights
18(b)
-
-
(66,445)
-
-
66,445
-
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 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
33
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
NOTES
YEAR ENDED
31 MARCH 2025
$
YEAR ENDED
31 MARCH 2024
$
Cash flows from operating activities
Payments to suppliers and employees
(1,125,026)
(1,321,063)
Payments for exploration and evaluation
(75,987)
(6,643)
Other Income
195,391
65,519
Stamp duty
(161,384)
(163,991)
Research & Development rebate
35,303
-
Interest received
111,485
145,715
Net cash used in operating activities
9
(1,020,218)
(1,280,463)
Cash flows from investing activities
Payments for exploration and evaluation
(2,758,713)
(2,843,111)
Payments for property, plant & equipment
(136,534)
(115,669)
Payments for exploration tenements
(1,300)
(58,189)
Payments for entities
-
(250,000)
Proceeds from disposal of property, plant
and equipment
61,149
64,780
Net cash used in investing activities
(2,835,398)
(3,202,189)
Cash flows from financing activities
Repayment of borrowings
-
Proceeds from issue of share capital
-
7,560,000
Proceeds from exercise of options
-
233,800
Payments for share issue costs
-
(462,315)
Net cash from financing activities
-
7,331,485
Net increase/(decrease) in cash and cash
equivalents
(3,855,616)
2,848,833
Cash and cash equivalents at beginning of
the year
5,552,999
2,704,166
Effects of exchange rate changes on the
balance of cash held in foreign currencies
-
Cash and cash equivalents at the end of
year
9
1,697,383
5,552,999
Notes forming part of these financial statements are included on pages 34 to 69.
TREK METALS LIMITED | ANNUAL REPORT 2025
34
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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 2025 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 $3,422,863 (2024: loss of $1,705,090) and cash
outflows from operating activities of $1,020,218 (2024: $1,280,463).
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 2025
35
NOTE 2: ADOPTION OF NEW AND REVISED STANDARDS
Certain new accounting standards and interpretations have been published that are not
mandatory for 31 December 2024 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 2025
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(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 2025
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(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 2025
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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.
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39
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.
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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 2025
41
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 2025
42
The following is an analysis of the Group’s results by reportable operating segment for the
period:
SEGMENT LOSS
31 MAR 2025
$
31 MAR 2024
$
Continuing operations
Exploration and evaluation
(2,786,604)
(75,945)
Corporate
(636,259)
(1,629,145)
Consolidated segment loss for the year from all
operations
(3,422,863)
(1,705,090)
The following is an analysis of the Group’s assets by reportable operating segment:
SEGMENT ASSETS
31 MAR 2025
$
31 MAR 2024
$
Continuing operations
Exploration and evaluation
12,758,006
12,778,531
Corporate assets
2,163,840
5,795,233
Consolidated segment assets
14,921,846
18,573,764
The following is an analysis of the Group’s liabilities by reportable operating segment:
SEGMENT LIABILITIES
31 MAR 2025
$
31 MAR 2024
$
Continuing operations
Exploration and evaluation
175,346
887,301
Corporate liabilities
228,319
197,547
Consolidated segment liabilities
403,665
1,084,848
TREK METALS LIMITED | ANNUAL REPORT 2025
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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 2025
$
31 MAR 2024
$
Investment Revenue & Other Income
Interest revenue
99,175
160,699
Fair value movement in deferred
consideration liability
368,750
-
Rental income
15,402
14,319
Option fees
450,000
50,000
Profit on sale of PPE
278
20,463
Research & Development rebate
-
35,303
Government funding grants
29,989
-
Total Investment Revenue & Other Income
963,594
280,784
Other Operating Expenses
Auditor’s remuneration
(40,819)
(37,208)
Communications costs
(7,257)
(6,199)
Consulting expenses
(103,278)
(158,310)
Wages, oncosts and recruitment costs
(288,674)
(292,228)
Directors’ salaries and consultant fees
(325,250)
(391,675)
Insurance
(57,700)
(57,296)
Rental costs
(15,152)
(4,258)
Legal
(35,569)
(26,915)
Corporate & statutory costs
(111,726)
(105,213)
Travel
(29,097)
(50,117)
Software expenses
(19,950)
(24,278)
Business development/conferences
(45,280)
(37,961)
Depreciation
(92,366)
(94,922)
Stamp duty
(5,760)
(8,075)
Other costs
(56,634)
(54,034)
Total Other Operating Expenses
(1,234,512)
(1,348,689)
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NOTE 7: EARNINGS PER SHARE
The calculation of the basic and diluted (loss) /earnings per share is based on the following
information:
31 MAR 2025
$
31 MAR 2024
$
Earnings
Loss attributable to the ordinary equity holders of
the Company used in calculating basic and
diluted loss per share:
From continuing operations
(3,422,863)
(1,705,090)
(3,422,863)
(1,705,090)
Shares
Weighted average number of ordinary shares
used as the denominator in calculating basic loss
per share
516,005,465
468,986,569
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
516,005,465
468,986,569
Basic Loss per Share
Cents/share
Cents/share
Total basic loss per share attributable to the
ordinary equity holders of the Company
(0.663)
(0.364)
Total diluted loss per share attributable to the
ordinary equity holders of the Company
(0.663)
(0.364)
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 2025:
31 MAR 2025
31 MAR 2024
Share Options
41,666,618
43,166,618
Performance Rights
37,770,000
30,395,000
79,436,618
73,561,618
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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 2025 are as follows:
31 MAR 2025
$
31 MAR 2024
$
Current income
Current income tax (benefit) expense
1,280,076
1,327,050
Derecognition of current income tax expense (benefit)
(1,280,076)
(1,327,050)
Deferred income tax
Relating to origination and reversal of temporary
difference
(181,978)
(1,055,555)
Derecognition of current income tax benefit (expense)
237,310
(53,085)
Adjustment in respect of prior year tax losses/STA
(55,332)
1,108,640
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 2025
46
31 MAR 2025
$
31 MAR 2024
$
Loss from operating activities before income tax
(3,422,863)
(1,705,090)
Prima facie tax benefit on loss from ordinary activities
at 30% (2024: 30%)
(1,026,859)
(511,527)
Tax effect of amounts which are not deductible
(taxable) in calculating taxable income
-
Non-deductible expenses (non-assessable
income)
(121,642)
141,315
-
Tax loss not brought to account as a deferred
tax asset
1,280,076
1,327,050
-
Temporary differences not brought to account
(131,575)
(956,838)
At effective income tax rate of 0% (31 March 2024: 0%)
-
-
Income tax expensed reported in income statement
-
-
Unrecognised deferred tax balances relate to the following:
31 MAR 2025
$
31 MAR 2024
$
Deferred tax assets at 30% (2024: 30%)
Provisions
19,489
14,728
Receivables
(1,100)
-
Other assets
(12,756)
(7,364)
Capitalised Expenses
4,761
4,761
Capitalised Exploration costs
17,601
13,294
Trade and other payables
14,358
24,240
Property, plant & equipment
(71,160)
(94,637)
Exploration & evaluation expenditure
(2,060,315)
(2,091,121)
Right of use assets / Lease liability
11,534
-
Business related costs
134,889
238,641
Net Deferred Tax Assets/(Liabilities)
(1,942,699)
(1,897,458)
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 2025 because the directors are of
the opinion that it is not appropriate to regard full realisation of the deferred tax assets as
probable.
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47
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 2025
$
31 MAR 2024
$
Opening unused tax losses
27,798,743
19,622,017
Add: losses for the year
4,266,923
4,423,500
Add: loss transferred in upon acquisition of Archer X Pty
Ltd
-
57,760
Add: Prior year adjustment
(184,440)
3,695,466
Unused tax losses
31,881,226
27,798,743
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 2025
31 MAR 2024
$
$
Bank balances and cash management accounts
924,172
2,472,745
Term deposit (1)
773,211
3,080,254
1,697,383
5,552,999
(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 2025
48
(a)
Reconciliation of profit or loss after income tax to net cash flow from operating
activities
31 MAR 2025
31 MAR 2024
$
$
Loss for the year
(3,422,863)
(1,705,090)
Share-based payment expense
359,798
543,125
Fair value movement in deferred consideration
liability
(368,750)
-
(Profit)/loss on sale of plant & equipment
(278)
(20,463)
Finance cost
5,543
18,115
Exploration reclassified as operating
100,483
-
Impairment of exploration expenditure
2,568,235
-
Depreciation
92,366
94,922
Change in operating assets and liabilities, net of
effects from sale of subsidiary:
(Increase)/decrease
in
trade
and
other
receivables
100,985
(104,198)
(Increase)/decrease in other assets – current &
non-current
(267,974)
54,000
(Decrease)/increase in trade and other payables
(203,632)
(174,856)
Increase in provisions
15,869
13,982
Net cash outflow from operating activities
(1,020,218)
(1,280,463)
(b) Non-cash investing and financing activities
31 MAR 2025
31 MAR 2024
$
$
Acquisition of Archer X Pty Ltd via the issue of shares
(refer Note 11)
-
577,014
Deferred consideration - shares issued 1 December
2024 (refer Note 11)
(131,250)
500,000
Acquisition of Tenement via issue of shares
-
160,000
TREK METALS LIMITED | ANNUAL REPORT 2025
49
NOTE 10: TRADE AND OTHER RECEIVABLES
31 MAR 2025
31 MAR 2024
$
$
Current
GST receivable
28,763
30,178
Prepayments
42,521
24,545
Bond deposit
11,000
11,000
Interest receivable
3,667
14,984
Other receivables
140
106,369
86,091
187,076
Trade and other receivables are non-interest bearing, have no security held against them
and are, on average, on terms of 15 days.
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.
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 2025
31 MAR 2024
$
$
Exploration and Evaluation Expenditure
Opening balance
12,432,208
8,125,997
Additions for the period
2,566,811
2,804,632
Impairments
(2,568,235)
(46,043)
Acquisition of Archer X Pty Ltd
-
1,387,622
Acquisition of tenement interest – Christmas Creek
-
160,000
Closing balance at balance date
12,430,784
12,432,208
TREK METALS LIMITED | ANNUAL REPORT 2025
50
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
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. Included in the acquisition was a
deferred consideration of $500,000 worth of shares to be issued that included a floor price
of $0.08 which were subsequently issued on 1 December 2024 shown below.
Fair value
Purchase consideration
$
Issue of fully paid ordinary shares on 1 December 2023
(11,775,789 @ $0.049)
577,014
Cash consideration
250,000
Deferred consideration shares (6,250,000 @ $0.08 floor price
per share)
500,000
Net liabilities acquired
60,608
Total consideration / Exploration assets at acquisition
1,387,622
Shares Payable
$
Deferred consideration shares ($500,000 @ $0.08 floor price
per share)
500,000
Issue of fully paid ordinary shares for Deferred consideration on
1 December 2024 @$0.021
(131,250)
Fair value movement in deferred consideration liability
(368,750)
Total
-
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 milestone consideration due to being considered less than remote.
TREK METALS LIMITED | ANNUAL REPORT 2025
51
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 2025
31 MAR 2024
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
Bellpiper Pty Ltd
Australia
Ordinary
100
100
Archer X Pty Ltd
Australia
Ordinary
100
100
Tambourah Lithium Group Pty Ltd
Australia
Ordinary
33.33
33.33
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 2025. The investment in this
associate is carried at $Nil (2024: nil). Cape Resources Limited was liquidated on 24 April
2025 with no financial impact to Trek Metals.
NOTE 14: TRADE AND OTHER PAYABLES
31 MAR 2025
31 MAR 2024
$
$
Current
Trade and other payables
68,383
121,281
Accrued expenses
231,874
350,029
300,257
471,310
Trade payables and accruals are non-interest bearing and have repayment terms within 30 days.
TREK METALS LIMITED | ANNUAL REPORT 2025
52
NOTE 15: LEASES
31 MAR 2025
31 MAR 2024
$
$
Leases
(a) Amounts recognised in the balance sheet
Rights-of-use asset
Opening balance
59,489
84,257
Right-of-use assets recognised as at 22 August 2022
-
-
Less: Depreciation
(24,768)
(24,768)
Closing balance
34,721
59,489
Lease liabilities
Opening balance – Total
64,444
88,136
Lease liabilities recognised as at 22 August 2022
-
Add: Interest
5,543
4,648
Less: Payments
(31,542)
(28,340)
Closing balance - Total
38,445
64,444
Closing balance - Current
26,427
28,844
Closing balance – Non-Current
12,018
35,600
(b) Amounts recognised in the consolidated statement of profit or loss
Depreciation of right-of-use asset
24,768
24,768
Interest expense on lease liabilities
23,658
18,115
(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 two by
one year extensions 32expiring 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 2025
53
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 2025
31 MAR 2024
$
$
Current
Provision for Annual Leave
64,963
49,094
64,963
49,094
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 2025
Issued and fully paid ordinary shares
As at 1 April 2024
513,472,862
38,281,358
60,694,802
Allotments
30/07/2024 Exercise of performance rights
400,000
7,851
18,091
1/12/2024 Issue of shares for Archer X Pty Ltd
(Deferred consideration) at $0.021 per share
6,250,000
122,138
9,112
11/02/2025 Exercise of performance rights
1,600,000
31,573
87,246
Share Issue costs
(6,894)
Balances as at 31 March 2025
521,722,862
38,436,026
60,809,251
TREK METALS LIMITED | ANNUAL REPORT 2025
54
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 $0.0479 per
share
3,340,990
62,995
97,005
26/03/2024 Exercise of performance rights
396,000
7,651
24,351
Share Issue costs
-
(463,442)
-
Balances as at 31 March 2024
513,472,862
38,281,358
60,694,802
Performance Rights
At 31 March 2025, the number of Performance Rights of the Company on issue are:
Performance Rights
Issued
No of rights
Fair value at
Grant Date
($)
Grant date
Expiry
Vested
#
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
1,470,000
0.0869
29/11/22
29/11/25
1,470,000
Class M
2,900,000
0.0825
29/11/22
29/11/26
1,400,000
Class O
800,000
0.0429
1/05/23
1/05/27
-
Class P
1,200,000
0.0254
16/01/24
16/01/27
600,000
Class Q
1,500,000
0.0248
16/01/24
16/01/28
-
Class R
1,000,000
0.0206
5/07/24
5/07/28
-
Class R
1,000,000
0.0182
5/07/24
5/07/28
-
Class R
1,000,000
0.0162
5/07/24
5/07/28
-
Class S
10,000,000
0.0158
4/10/24
4/10/27
-
Class T
10,000,000
0.0157
4/10/24
4/10/28
-
37,770,000
3,470,000
TREK METALS LIMITED | ANNUAL REPORT 2025
55
Options on Issue
Unissued ordinary shares of the Company under option at 31 March 2025 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 17 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 2024
1,500,000
69,887
Options lapsed 30 June 2024
(1,500,000)
(69,887)
Balance at 31 March 2025
-
-
Movement in performance rights
Number
$
Balance at 1 April 2024
30,395,000
1,590,867
Issue of Classes R (5 July 2024)
3,000,000
30,135
Issue of Classes S - T (4 October 2024)
20,000,000
155,860
Rights exercised
(2,000,000)
(144,761)
Rights expired
(13,625,000)
(635,411)
Existing Rights expensed to profit and loss
-
173,803
Balance at 31 March 2025
37,770,000
1,170,493
(c) Asset Revaluation Reserve
Movement in asset revaluation
$
Balance at 1 April 2024
(54,000)
Revaluation of financial assets
(32,026)
Balance at 31 March 2025
(86,026)
Options issued
No of
options
Exercise
price
($)
Fair
value at
Grant
Date ($)
Grant
date
Expiry
Exercisable
#
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 2025
41,666,618
41,666,618
TREK METALS LIMITED | ANNUAL REPORT 2025
56
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 2025, 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 2025
57
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 2025
31 MAR 2024
$
$
Financial assets
Cash and term deposits
1,697,383
5,552,999
Trade and other receivables
86,091
187,076
*Shares in listed companies-at fair value through
other comprehensive income
54,000
86,026
*Shares in unlisted companies-at fair value
through profit and loss
300,000
-
Financial liabilities
Trade and other payables
300,257
471,310
*The Group has shares in Apollo Minerals (listed) and Advanced Energy Fuels (unlisted)
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 2025
58
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 2025
Weighted
Ave
Effective
Int Rate
%
Less than
1 month
$
1 month
– 1 year
$
1 – 5
years
$
5+
years
$
Total
$
Financial Assets
Non-interest bearing
-
86,091
-
-
-
86,091
Fixed interest rate
instruments
4.33%
-
773,211
-
-
773,211
Variable interest rate
instruments
0.70
924,172
-
-
-
924,172
Total Financial
Assets
2.35%
1,010,263
773,211
-
-
1,783,474
Financial Liabilities
Non-interest bearing
-
300,257
-
-
-
300,257
Total Financial
Liabilities
-
300,257
-
-
-
300,257
Financial assets are classified based upon their expected maturity whilst financial liabilities
are classified based upon their contractual maturity.
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
-
187,076
-
-
-
187,076
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
5,740,075
-
-
- 5,740,075
Financial Liabilities
Non-interest bearing
-
471,310
-
-
-
471,310
Total Financial
Liabilities
-
471,310
-
-
-
471,310
TREK METALS LIMITED | ANNUAL REPORT 2025
59
(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 2025
31 MAR 2024
HIERARCHY
$
$
Financial Assets
Trade and other receivables
Level 2
86,091
187,076
Shares in listed companies-at fair value
through other comprehensive income
Level 1
54,000
86,026
Shares in unlisted companies-at fair
value through profit and loss
Level 2
300,000
-
Financial Liabilities
Trade and other payables
Level 2
300,257
471,310
TREK METALS LIMITED | ANNUAL REPORT 2025
60
NOTE 20: COMMITMENTS
The Group has committed to the following minimum expenditure in relation to its
tenements.
31 MAR 2025
31 MAR 2024
$
$
Not later than 1 year
1,843,251
1,496,500
Later than 1 year and not later than 5 years
2,840,903
2,589,888
Later than 5 years
-
-
4,684,154
4,086,388
NOTE 21: CONTINGENCIES
TM RESOURCES ACQUISITION
On 16 September 2016, the Company acquired TM Resources Pty Ltd (TM) which also
included contingent consideration (“contingent obligations”) of :-
1.
Trek Metals Limited (TML) shares to the value of $50,000 within 7 days of the grant of the
tenements that TM has applied for (EL31260 and EL 31261);
2.
$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
3.
$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.
During June 2024, Trek signed an Earn-in Agreements with GE Resources Pty Ltd (“GER”) a
subsidiary of DevEx Resources Limited (ASX: DEV) to progress the tenement applications
(EL31260 and EL 31261). Following grant of the tenements, GER has the right to earn a 80%
interest in all minerals associated with the Tenement applications, by spending $2 million
on Exploration expenditure in the four years from the grant of all tenements, after which time,
TKM will be free-carried to completion of a Bankable Feasibility Study. In addition, if GER
exercises it right it will assume 100% of the existing contingent obligations to the prior owners
of EL31260 and EL 31261 as detailed above.
ARCHER X PTY LTD ACQUISITION
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 milestone
consideration due to being considered less than remote.
TREK METALS LIMITED | ANNUAL REPORT 2025
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 (resigned 2 December 2024)
(c)
Related party transactions (other than director salaries and fees)
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 2025
31 MAR 2024
$
$
Short term benefits
684,587
700,674
Share based payments
145,763
262,335
830,350
963,009
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 accrued and payable to KMPs:
•
$40,000 (2024: $Nil) payable to Mr Leibowitz
•
$25,000 (2024: $6,906) payable to Mr Young
•
$25,000 (2024: $Nil) payable to Mr Biddle
The Company is seeking approval from shareholders at the 2025 AGM to issue ordinary
shares in lieu of the cash fees accrued above for the period (Dec 2024 -Mar 2025).
There were no other balances outstanding from/to related parties.
TREK METALS LIMITED | ANNUAL REPORT 2025
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 Annual General Meeting of shareholders on 4 July 2024.
(a)
Options issued
There were no options issued during the year ended 31 March 2025 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 2025
Class
Grant
date
Expiry Date
Opening
Balance 1
April 2024
Granted
during the
year
Expired/
Exercised
during the
year
Vested
during
the year
Rights
Vested
at 31
March
2025
Rights
Unvested
at 31 March
2025
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)
-
-
-
F
5/03/2021
5/03/2025
750,000
-
(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
450,000
-
-
-
-
450,000
K
21/01/2022 28/01/2026
450,000
-
-
-
-
450,000
L
29/11/2022
29/11/2025
2,220,000
-
(750,000)
-
1,470,000
-
M
29/11/2022
29/11/2026
3,750,000
-
(850,000)
1,500,000
1,400,000
1,500,000
N
1/05/2023
1/05/2026
400,000
-
(400,000)
-
-
-
O
1/05/2023
1/05/2027
1,000,000
-
(200,000)
-
-
800,000
P
16/01/2024
16/01/2027
1,500,000
-
(300,000)
-
600,000
600,000
Q
16/01/2024
16/01/2028
1,500,000
-
-
-
-
1,500,000
R
5/07/2024
5/07/2028
-
3,000,000
-
-
-
3,000,000
S
4/10/2024
4/10/2027
-
10,000,000
-
-
-
10,000,000
T
4/10/2024
4/10/2028
-
10,000,000
-
-
-
10,000,000
Total
30,395,000
23,000,000
(15,625,000)
1,500,000
3,470,000
34,300,000
TREK METALS LIMITED | ANNUAL REPORT 2025
63
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
-
(700,000)
-
-
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
(6,180,000)
5,486,000
2,970,000
27,425,000
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
(expired)
5/3/2025
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
(expired)
5/3/2025
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
(expired)
5/3/2025
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.
TREK METALS LIMITED | ANNUAL REPORT 2025
64
Performance Rights (cont.)
Class
Grant Date
Period
(years)
Valuation
per right $
Probability
Vesting Conditions
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.
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 2025
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%)
R
(Tranche 1)
5/07/2024
4
$0.0206
100%
20-day VWAP of shares being greater than
A$0.15 per share
R
(Tranche 2)
5/07/2024
4
$0.0182
100%
20-day VWAP of shares being greater than
A$0.20 per share
R
(Tranche 3)
5/07/2024
4
$0.0162
100%
20-day VWAP of shares being greater than
A$0.25 per share
S
4/10/2024
3
$0.0158
95%
20-day VWAP of shares being greater than
A$0.15 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%)
T
4/10/2024
4
$0.0157
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%)
TREK METALS LIMITED | ANNUAL REPORT 2025
66
At the Annual General meeting held on 4 July 2024, shareholders approved the issue of
3,000,000 Class R Performance Rights to Director Valerie Hodgins. The tables below show the
key inputs used for calculating the value of the rights and the vesting conditions.
On the 4th October 2024, the Board approved the issue of 10,000,000 Class S and 10,000,000
Class T Performance Rights to employees. The tables below show the key inputs used for
calculating the value of the rights and the vesting conditions.
Class R
Tranche 1
Tranche 2
Tranche 3
Number of Rights
1,000,000
1,000,000
1,00,000
Fair values at measurement date per
right
$0.0206
$0.0182
$0.0162
Grant date spot price
$0.032
$0.032
$0.032
Exercise price
nil
nil
Nil
Expected volatility
89%
89%
89%
Life in years
4
4
4
Dividend yield
nil
nil
nil
Risk-free interest rate
4.07%
4.07%
4.07%
Class S
Class T
Number of Rights
10,000,000
10,000,000
Fair values at measurement date per right
$0.0158
$0.0157
Grant date spot price
$0.03
$0.03
Exercise price
nil
Nil
Expected volatility
93%
93%
Life in years
3
4
Dividend yield
nil
nil
Risk-free interest rate
3.55%
3.59%
TREK METALS LIMITED | ANNUAL REPORT 2025
67
Performance Rights
Grant Date
Expiry Date
Class
Total
Valuation
$
Expense
recorded to 31
March 2025
$
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
$306,087
1 May 2023
1 May 2026
Class N
$54,566
$54,566
1 May 2023
1 May 2027
Class O
$52,831
$50,591
16 Jan 2024
16 Jan 2027
Class P
$47,501
$47,501
16 Jan 2024
16 Jan 2028
Class Q
$47,141
$23,079
5 July 2024
5 July 2028
Class R
$55,000
$30,135
4 Oct 2024
4 Oct 2027
Class S
$213,200
$103,972
4 Oct 2024
4 Oct 2028
Class T
$212,800
$51,888
Expenses arising from share-based payment transactions:
Total expenses arising from share-based payment transactions recognised during the
period as follows:
31 MAR 2025
$
31 MAR 2024
$
Expensed to Statement of Profit or Loss
Performance Rights issued to key management personnel
145,763
264,552
Performance Rights issued to staff and consultants
214,035
278,573
359,798
543,125
TREK METALS LIMITED | ANNUAL REPORT 2025
68
NOTE 24: POST-BALANCE SHEET EVENTS
Subsequent to the end of the reporting period, the Company completed a strongly
supported capital raising of $3.5 million (before costs) to accelerate exploration at the
Christmas Creek Project and for general working capital. On 2 May 2025, the Company
issued 65 million fully-paid ordinary shares in the capital of the Company at an issue price
of $0.05 per Share to existing and new professional and sophisticated investors, to raise a
total of $3.25 million.. In addition, Directors Tony Leibowitz and John Young have committed
to participate for a total of $0.25 million on the same terms which are subject to shareholder
approval at the Annual General meeting to be held in July 2025.
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 2025
$
31 MAR 2024
$
Audit or review of the financial report
40,819
37,208
Other Non-audit services
-
-
40,819
37,208
The auditor of Trek Metals Limited is Hall Chadwick WA Audit Pty Ltd. The auditor provided
no non-audit services during the year.
CONSOLIDATED ENTITY DISCLOSURE
STATEMENT
Name of entity
Type of
entity
Trustee,
partner or
participant in
joint venture
% of share
capital
held
Country of
incorporation
Australian
resident or
foreign
resident
Foreign tax
jurisdiction
of foreign
residents
Trek Metals Ltd
Body
Corporate
-
Bermuda
Australian
N/A
TM Resources Pty
Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Trek Management
Pty Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Elm Resources Pty
Ltd
Body
Corporate
-
100
Australia
Australian
N/A
ACME Pilbara Pty
Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Anaheim Pty Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Edge Minerals Pty
Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Bellpiper Pty Ltd
Body
Corporate
-
100
Australia
Australian
N/A
TREK METALS LIMITED | ANNUAL REPORT 2025
69
Name of entity
Type of
entity
Trustee,
partner or
participant in
joint venture
% of share
capital
held
Country of
incorporation
Australian
resident or
foreign
resident
Foreign tax
jurisdiction
of foreign
residents
Archer X Pty Ltd
Body
Corporate
-
100
Australia
Australian
N/A
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance
with the Corporations Act 2001. It includes certain information for each entity that was part
of the consolidated entity at the end of the financial year.
Determination of Tax Residency
Section 295 (3A) of the Corporation Acts 2001 defines tax residency as having the meaning
in the Income Tax Assessment Act 1997. The determination of tax residency involves
judgement as there are currently several different interpretations that could be adopted,
and which could give rise to a different conclusion on residency. It should be noted that the
definitions of ‘Australian resident’ and ‘foreign resident’ in the Income Tax Assessment Act
1997 are mutually exclusive. This means that if an entity is an ‘Australian resident’ it cannot
be a ‘foreign resident’ for the purposes of disclosure in the CEDS.
In determining tax residency, the consolidated entity has applied the following
interpretations:
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including
having regard to the Tax Commissioner's public guidance in Tax Ruling TR 2018/5.
Foreign tax residency
As the definition of ’foreign resident’ under the Income Tax Assessment Act 1997 is an entity
that is not an ‘Australian resident’ as defined under that Act, there are no entities that are
disclosed as foreign tax residents.
TREK METALS LIMITED | ANNUAL REPORT 2025
70
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 31 MARCH 2025
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;
d)
the information disclosed in the consolidated entity disclosure statement is true and
correct; 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
5 June 2025
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 2025,
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 material accounting policy information, the consolidated entity disclosure
statement and the director’s declaration.
In our opinion, the financial report of Trek Metals Limited presents fairly, in all material respects the
consolidated entity’s financial position as at 31 March 2025 and its financial performance for the year then
ended in accordance with Australian Accounting Standards.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Consolidated Entity in accordance with the auditor independence
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of
the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the
Code.
We 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
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 2025,
the
Consolidated
Entity’s
capitalised
exploration and evaluation costs are carried at
$12,430,784.
The recognition and recoverability of the
capitalised exploration and evaluation costs
was considered a key audit matter due to:
•
The significance of the balance to the
Consolidated
Entity’s
financial
position;
•
The level of judgement required in
evaluating management’s application
of the requirements of AASB 6
Exploration for and Evaluation of
Mineral Resources (“AASB 6”). AASB
6 is an industry specific accounting
standard requiring the application of
significant judgements, estimates and
industry knowledge. This includes
specific requirements for expenditure
to be capitalised as an asset and
subsequent requirements which must
be complied with for capitalised
expenditure to continue to be carried
as an asset; and
•
The assessment of impairment of
mineral exploration expenditure being
inherently difficult.
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 circumstances that
may indicate impairment of the capitalised exploration costs:
o
The licenses for the rights to explore expiring in the
near future or are not expected to be renewed;
o
Substantive expenditure for further exploration in the
area of interest is not budgeted or planned;
o
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
o
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 2025, 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, with the exception of the remuneration report and our related
assurance opinion.
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, and the consolidated entity disclosure
statement that is true and correct and is free of misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the 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 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 this 5th day of June 2025
Perth, Western Australia
TREK METALS LIMITED | ANNUAL REPORT 2025
75
ADDITIONAL SECURITIES EXCHANGE
INFORMATION AS AT 28 MAY 2025
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). As at the date of this report, the below holder had lodged a substantial holder
notice.
Holder
%
Kalonda Pty Ltd , Floreat Investments Pty Ltd and Anthony Leibowitz
5.013
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement is set out at
https://trekmetals.com.au/corporate-governance
CLASS OF SHARES AND VOTING RIGHTS
There are 2,899 holders of 587,722,862 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 114 holders of 41,666.618 listed share options @$0.085 expiring 14/08/2025.
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 2025
76
SECURITIES SUBJECT TO VOLUNTARY ESCROW
The Company has 6,250,000 shares held by three holders that are subject to voluntary
escrow until 1 June 2025.
DISTRIBUTION OF SECURITY HOLDERS - SHARES
Number of Shares Held
Number of Shareholders
%
1 – 1,000
571
0.02
1,001 – 5,000
174
0.09
5,001 – 10,000
302
0.42
10,001 – 100,000
1,206
8.07
100,001 and over
646
91.40
Total
2,899
100.00
The number of shareholders holding less than a marketable parcel is 849 based on the
closing price of the Company’s shares of $0.066.
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
1
0.01
5,001 – 10,000
0
0.00
10,001 – 100,000
46
6.35
100,001 and over
66
93.64
Total
114
100.00
TREK METALS LIMITED | ANNUAL REPORT 2025
77
LISTING OF 20 LARGEST SHAREHOLDERS
Name of Ordinary Shareholder
Number of
shares
held
% Shares
Held
1
KALONDA PTY LTD
24,475,592
4.16%
2
JORDAN GROUP HOLDINGS PTY LTD
21,983,167
3.74%
3
BIDDLE PARTNERS PTY LTD
17,666,441
3.01%
4
CHURCH STREET TRUSTEES LIMITED
12,842,966
2.19%
5
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
12,237,280
2.08%
6
TIFORP PTY LTD
10,188,302
1.73%
7
PATRONUS INVEST PTY LTD
10,000,000
1.70%
8
FREIGHT SHOW PTY LTD
9,666,667
1.64%
9
MUSEUM INVESTMENTS LIMITED
9,336,231
1.59%
10
MR PETER ANTHONY BUTTIGIEG & MRS JENNIFER LYNN
BUTTIGIEG
7,361,655
1.25%
11
BNP PARIBAS NOMS PTY LTD
7,228,635
1.23%
12
BNP PARIBAS NOMINEES PTY LTD
7,179,079
1.22%
13
MR SCOTT DOUGLAS AMOS & MRS KAREN ELIZABETH AMOS
6,000,000
1.02%
14
D J CHERRY PTY LTD
5,184,524
0.88%
15
MS DANIELLE SHARON TUDEHOPE
5,100,000
0.87%
16
MR VAUGHAN THALES KENT
5,000,000
0.85%
17
PILBARA MINERALS LIMITED
4,792,332
0.82%
18
MR JOHN ALEXANDER YOUNG & MRS CHERYL KAYE YOUNG
4,760,869
0.81%
19
LESAMOURAI PTY LTD
4,500,000
0.77%
20
FREELIGHT NOMINEES PTY LTD
4,375,000
0.74%
Total
189,878,740
32.30
TREK METALS LIMITED | ANNUAL REPORT 2025
78
LISTING OF 20 LARGEST LISTED OPTION HOLDERS
Name of Option holder
Number of
shares held
% Shares
Held
1
FREIGHT SHOW PTY LTD
5,331,889
12.80%
2
STARCHASER NOMINEES PTY LTD
4,800,000
11.52%
3
MR JOHN YACOUB
3,199,199
7.68%
4
TIFORP PTY LTD
1,666,666
4.00%
5
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1,499,999
3.60%
6
KALONDA PTY LTD
1,383,333
3.32%
7
CITICORP NOMINEES PTY LIMITED
1,361,111
3.27%
8
MR PETER ANTHONY BUTTIGIEG & MRS JENNIFER LYNN BUTTIGIEG
1,111,111
2.67%
8
BIDDLE PARTNERS PTY LTD
1,111,111
2.67%
9
LESAMOURAI PTY LTD
1,000,000
2.40%
10
RIYA INVESTMENTS PTY LTD
937,933
2.25%
11
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY LIMITED
777,776
1.87%
12
JULIDA PTY LIMITED
706,436
1.70%
13
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
583,333
1.40%
14
J YACOUB INVESTMENTS PTY LTD
568,889
1.37%
15
MUSEUM INVESTMENTS LIMITED
555,555
1.33%
15
NOHUNI PTY LTD
555,555
1.33%
16
ONMELL PTY LTD
527,777
1.27%
17
MR SCOTT LINDSAY RAUSCHENBERGER
500,000
1.20%
18
SUBURBAN HOLDINGS PTY LTD
499,999
1.20%
19
AMBERGATE PTY LTD
416,666
1.00%
19
BEARAY PTY LIMITED
416,666
1.00%
19
MR BENJAMIN ISAAC HOAD
416,666
1.00%
20
BNP PARIBAS NOMINEES PTY LTD
399,999
0.96%
Total
30,327,669
72.81%
TREK METALS LIMITED | ANNUAL REPORT 2025
79
DISTRIBUTION OF SECURITY HOLDERS – UNQUOTED SECURITIES
Performance Rights
Class
Number of Rights
Number of holders
Expiry Date
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
1,470,000
2
29 November 2025
M
2,900,000
3
29 November 2026
O
400,000
1
1 May 2027
P
600,000
1
16 January 2027
Q
1,500,000
1
16 January 2028
R
3,000,000
1
5 July 2028
S
10,000,000
4
4 October 2027
T
10,000,000
4
4 October 2028
Total
36,770,000
Holders greater than 20% - Not applicable – Issued under Employee Incentive Scheme
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
Automic
Level 5, 191 St Georges Terrace
Perth NSW 6000
T 1300 288 664
TREK METALS LIMITED | ANNUAL REPORT 2025
80
SCHEDULE OF TENEMENTS
Tenement
Location
Registered Holder
Interest
E45/4909
Western Australia
ACME Pilbara Pty Ltd
100%
E45/4917
Western Australia
ACME Pilbara Pty Ltd
100%
E45/4640
Western Australia
ACME Pilbara Pty Ltd
100%
E45/6240 (application)
Western Australia
ACME Pilbara Pty Ltd
100%
E45/6664
Western Australia
ACME Pilbara Pty Ltd
100%
E45/5484
Western Australia
ACME Pilbara Pty Ltd
100%
E45/5839
Western Australia
ACME Pilbara Pty Ltd
100%
E52/3605*
Western Australia
ACME Pilbara Pty Ltd
100%
E52/3672*
Western Australia
ACME Pilbara Pty Ltd
100%
E52/3983*
Western Australia
ACME Pilbara Pty Ltd
100%
E52/4051*
Western Australia
ACME Pilbara Pty Ltd
100%
E70/6000
Western Australia
ANAHEIM Pty Ltd
100%
E70/6001
Western Australia
ANAHEIM Pty Ltd
100%
E70/6004
Western Australia
ANAHEIM Pty Ltd
100%
E70/6072
Western Australia
ANAHEIM Pty Ltd
100%
E70/6690 (application)
Western Australia
ANAHEIM Pty Ltd
100%
E80/4975
Western Australia
Archer X Pty Ltd
100%
E80/5082
Western Australia
Archer X Pty Ltd
100%
E80/5083
Western Australia
Archer X Pty Ltd
100%
E80/5427
Western Australia
Archer X Pty Ltd
100%
E80/5914
Western Australia
Archer X Pty Ltd
100%
E80/6007 (application)
Western Australia
Archer X Pty Ltd
100%
E80/6010 (application)
Western Australia
Archer X Pty Ltd
100%
E80/6011
Western Australia
Archer X Pty Ltd
100%
E80/6012
Western Australia
Archer X Pty Ltd
100%
EL31260* (application)
Northen Territory
TM Resources Pty Ltd
100%
EL31261* (application)
Northen Territory
TM Resources Pty Ltd
100%
EL31751* (application)
Northen Territory
TM Resources Pty Ltd
100%
EL31752* (application)
Northen Territory
TM Resources Pty Ltd
100%
E46/616
Western Australia
Edge Minerals Pty Ltd
80%
E46/787
Western Australia
Edge Minerals Pty Ltd
100%
E46/835
Western Australia
Bellpiper Pty Ltd
100%
E46/1159
Western Australia
Edge Minerals Pty Ltd
100%
E46/1160
Western Australia
Edge Minerals Pty Ltd
100%
TREK METALS LIMITED | ANNUAL REPORT 2025
81
SCHEDULE OF TENEMENTS (CONT.)
Tenement
Location
Registered Holder
Interest
E46/1282
Western Australia
Edge Minerals Pty Ltd
100%
E46/1304
Western Australia
Edge Minerals Pty Ltd
100%
E46/1387
Western Australia
Edge Minerals Pty Ltd
100%
E46/1521
Western Australia
Edge Minerals Pty Ltd
100%
E46/1542
Western Australia
Edge Minerals Pty Ltd
100%
R46/002
Western Australia
Edge Minerals Pty Ltd
80%
E46/1580 (application)
Westen Australia
Edge Minerals Pty Ltd
100%
EL 33191 (application)
Northern Territory
ELM Resources Pty Ltd
80%
Note: ACME Pilbara Pty Ltd, TM Resources Pty Ltd, Edge Minerals Pty Ltd, Archer X Pty Ltd,
Bellpiper Pty Ltd, ELM Resources Pty Ltd are all 100% subsidiaries of Trek Metals Limited.
*Subject to Earn-in agreements
During the September 2024 Quarter, Trek signed an Option and Acquisition agreement
covering the following tenements – (E46/616, E46/787, E46/835, E46/1159, E46/1160, E46/1282,
E46/1304, E46/1387, E46/1521, E46/1542 & R46/2). For full details refer to the ASX Release dated
10 September 2024.