Tribune Resources Limited
Annual Report 2022

Plain-text annual report

ANNUAL R E P O R T 2 0 2 2 Tribune Resources Limited Contents 30 June 2022 Corporate directory Directors' report Auditor's independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's report to the members of Tribune Resources Limited Shareholder information 2 3 24 25 26 27 28 29 63 64 68 1 Tribune Resources Limited Corporate directory 30 June 2022 Directors Otakar Demis - Non-Executive Chairman Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director Company secretaries Otakar Demis Stephen Buckley Notice of annual general meeting The annual general meeting of Tribune Resources Limited will be held at: The Plaza Hotel 45 Egan Street Kalgoorlie WA 6430 on 25 November 2022 at 9.00am Registered office Principal place of business Share register Auditor Bankers Suite G1, 49 Melville Parade South Perth WA 6151 Tel: +61 (8) 9474 2113 Fax: +61 (8) 9367 9386 Suite G1, 49 Melville Parade South Perth WA 6151 Correspondence address: PO Box 307 West Perth WA 6872 Advanced Share Registry Services Limited 110 Stirling Highway Nedlands WA 6009 Tel: +61 (8) 9389 8033 Fax: +61 (8) 9262 3723 RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 Australia and New Zealand Banking Group Limited ('ANZ') 77 St George's Terrace Perth WA 6000 Stock exchange listing Tribune Resources Limited shares are listed on the Australian Securities Exchange (ASX code: TBR) Website www.tribune.com.au Corporate Governance Statement The Company’s directors and management are committed to conducting the Group’s business in an ethical manner and in accordance with the highest standards of corporate governance. The Company has adopted and substantially complies with the ASX Corporate Governance Principles and Recommendations (Fourth Edition) (‘Recommendations’) to the extent appropriate to the size and nature of the Group’s operations. The Company has prepared a Corporate Governance Statement which sets out the corporate governance practices that were in operation throughout the financial year for the Company, identifies any Recommendations that have not been followed, and provides reasons for not following such Recommendations. The Company’s Corporate Governance Statement and policies, approved at the same time as the Annual Report, can be found on the Company's website: http://www.tribune.com.au/Corporate-Governance 2 Tribune Resources Limited Directors' report 30 June 2022 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Tribune Resources Limited (referred to hereafter as the 'Company', 'parent entity' or 'Tribune') and the entities it controlled at the end of, or during, the year ended 30 June 2022. Directors The following persons were directors of Tribune Resources Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Otakar Demis Anthony Billis Gordon Sklenka Non-Executive Chairman Executive Director, Managing Director and Chief Executive Officer Non-Executive Director Principal activities The principal activities of the Group during the year were exploration, development and production activities at the Group’s East Kundana Joint Venture tenements ('EKJV'). Exploration projects that were advanced during the year include the Diwalwal Gold Project, Philippines and Japa Gold Project, Ghana. Dividends Dividends paid during the financial year were as follows: 2022 $ 2021 $ A dividend of 20 cents per ordinary share was paid to shareholders on 5 November 2021 (30 June 2021: dividend of 20 cents per ordinary share paid on 24 November 2020). 10,493,615 10,493,615 Other than the above, there were no further dividends recommended or declared during the current financial year. Review of operations The profit for the Group after providing for income tax and non-controlling interest amounted to $1,797,673 (30 June 2021: $50,745,314). East Kundana Joint Venture The East Kundana Joint Venture ('EKJV') is located 25km west north west of Kalgoorlie and 47km north east of Coolgardie. The EKJV is between Rand Mining Limited ('Rand') (12.25%), Tribune Resources Limited ('Tribune') (36.75%) and Gilt-Edged Mining Pty. Limited ('GEM') (51%). On 18 August 2021, Gilt-Edged Mining became a wholly owned subsidiary of Evolution Mining Limited. 3 Tribune Resources Limited Directors' report 30 June 2022 KUNDANA PROJECT Deposit Locations Note: The Joint Venture deposits are located within the red shaded area. Other deposits as indicated on this map do not belong to either Tribune Resources or the Joint Venture. Mining Raleigh Raleigh Underground Mine was put onto care and maintenance due to seismic activity in April 2020. A full review of the mine plan was initiated by the JV manager and will result in a rescheduling of mining the remaining reserves at a later date. There was no capital or operating development for the year. The depth of the decline is approximately 743 metres below the surface. The top of the Sadler incline remains at 356 metres below the surface and the bottom of the Sadler Decline is approximately 401 metres below the surface. There was no mine production from Raleigh during the year. 4 Tribune Resources Limited Directors' report 30 June 2022 Rubicon/Hornet/Pegasus During the year ended 30 June 2022, a total of 455,288 tonnes of ore at 3.93 g/t containing 57,540 oz of gold were mined from the Rubicon, Hornet and Pegasus ('RHP') ore bodies. Tribune’s entitlement to the ore extracted was 168,715 tonnes and 20,922 ounces of gold, compared to 326,526 tonnes and 39,059 ounces of gold the previous year. Year on year RHP Mine production is summarised in the following table: Mine Claimed Production Year 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Tribune's entitlement Mined (t) 78,229 266,113 314,685 605,988 761,483 843,340 996,445 1,072,429 954,188 888,507 455,288 167,318 Rubicon/Hornet/Pegasus Gold (oz) Grade (g/t) 9.6 10.3 11.3 9.5 7.3 7.1 6.2 6.0 5.1 3.7 3.9 3.9 24,103 88,666 114,454 184,302 178,931 192,487 198,276 208,264 156,158 106,283 57,540 21,146 Ore Stockpiles As of 30 June 2022, Tribune had 12,598 tonnes of ore stockpiled at a grade of 4.18 g/t which contained 1,614 oz of gold. The breakdown of Tribune's high and low grade ore stockpiles is tabulated below: Tribune Ore Stockpiles ROM Pad Ore Source Rubicon ROM Rubicon ROM Mungari ROM Mungari ROM EKJV RHP Ore EKJV RPH Low grade EKJV RPH Ore EKJV RPH Crushed Ore EKJV Stockpiles Ore Tonnes 26,401 1,104 5,138 1,636 12,598 Grade g/t Ounces Au Tribune Entitlement 4.27 0.46 3.32 3.85 4.18 3,626 16 548 202 1,614 36.75 36.75 36.75 36.75 100.00 Processing Tribune share of ore processed in FY2022 was 239,216 tonnes at 3.88 g/t with 93.90% gold recovery for production of 28,029 fine oz. During the 2022 financial year, Evolution Mining Limited joined Rand and Tribune as manager and joint venture partners in the EKJV. Most ore mined from the EKJV mines was processed at Evolution Mining Limited’s Mungari processing plant. Early in the year, ore processing included, 1 campaign at Kanowna Belle processing plant and 2 campaigns at GMM’s Lakewood Mill. Tribune share of ore processed is outlined in the table below: Tribune Share of Ore Processed Campaign Location GMM Lakewood EVN Mungari NST Kanowna Belle Total Tonnes Milled Head Grade Au (g/t) Recovery (%) 104,071 120,482 14,662 239,215 3.82 3.88 4.34 3.88 94.18 94.01 91.32 93.90 Fine Au Produced (Oz) 12,044 14,118 1,867 28,029 5 Tribune Resources Limited Directors' report 30 June 2022 Historical gold production from the EKJV is summarised below: Rand and Tribune Gold Bullion To FY2022 FY2021 FY2020 FY2019 FY2018 FY2017 FY2016 FY2015 FY2014 FY2013 FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 Total Exploration Gold (oz) 37,372 83,630 56,352 119,834 94,751 109,451 103,747 97,420 79,907 95,554 61,864 64,716 77,624 32,478 59,638 49,335 25,599 1,249,272 Silver (oz) Tribune Share Gold (oz) 6,286 3,039 8,335 20,567 14,690 20,728 20,647 21,027 18,854 17,248 15,841 8,639 12,019 4,649 8,048 6,640 3,951 211,208 28,029 62,726 42,264 89,875 71,063 82,088 77,810 73,065 59,930 71,665 46,398 48,537 58,218 24,358 44,728 37,001 19,199 936,954 EKJV Drilling focused on confirming grade continuity on the main mineralised K2 structure below current development at Rubicon and between the declines in the area connecting Rubicon and Pegasus. Drilling continued to define ore body continuity and delineate extensions of mineralisation at Pode and Hera which are each situated in the hanging wall of the K2 structure. Several holes intercepted mineralisation outside the Pode and Hera wireframes keeping open the possibility of modest resource expansion downdip on both structures. Mineralisation intersected by drilling in the Mary Fault at the Rubicon/Hornet/Pegasus (RHP) underground is hosted by a 0.5 to 4.0m wide quartz- breccia. Other drilling targeted Nugget, with results received for holes targeting Nugget down-dip and potential repeat structures at depth, intercepting mineralisation proximal to K2A lithological contact. Raleigh Underground exploration drilling at EKJV targeted the Sadler RMV from the Sadler decline to infill areas and increase geological confidence in the Raleigh Main Vein down dip where historic drilling was never followed up on. Startrek Exploration The Startrek mineralisation occurs in the footwall of the K2 structure and consists of several stacked mineralised lodes delineated in wide-spaced drilling. Drilling has intersected mineralisation at various locations in the footwall of Rubicon-Hornet-Pegasus over a strike length of approximately 1 kilometre. Holes targeting Startrek mineralisation returned results showing significant gold mineralisation including a well laminated quartz vein and the Mary Fault zone, which returned significant results, including 1.40 m @ 37.9 g/t. Geological work on the Startrek and Mary Fault Zone will continue to assist with understanding the continuity of the mineralised horizon, as drilling assay results are returned. 6 Tribune Resources Limited Directors' report 30 June 2022 Overview of EKJV Projects showing main mineralisation corridors Full details of all EKJV exploration activities including significant intersections from results received are contained the Quarterly EKJV Exploration Reports available on the ASX. West Kundana Joint Venture (Tribune’s Interest 24.5%) There has been minimal activity as the bulk of the Exploration Budget is committed to approved and proposed EKJV exploration programmes. Seven Mile Hill (Tribune’s Interest 50%) A drilling program was conducted at Seven Mile Hill during the period including RC and diamond drill holes. A total of 60 RC holes for 6,426 m were completed. Many of these were pre-collars for the diamond holes. A diamond drilling program was conducted with a single hold drilled at White Lake, and 7 holes completed at Kopai Ridge. The total diamond drill meters drilled during the period was 828.5 m. Geological logging of drill core from the diamond drilling campaign is in partially completed identifying variety of rock-types, with sulphide alteration and quartz veining relatively common. 4m composite assays were received for the RC drilling program. Three holes intersected significant (+0.5g/t Au) values. These are shown in the table below. Anomalous (+0.5g/t Au) values from RC and RC precollar holes at 7MH – 4m composites Hole N E RL RC M DD M Total Depth Dip Az From To m TBRC086 TBRD089 TBRD090 348854 349151 349085 6582858 6582961 6582963 340 340 340 143.0 89.5 97.6 - 91.9 111.5 143.0 181.5 209.1 (60) (60) (60) 90 90 90 56 28 56 60 32 60 4 4 4 AU (g/t) 1.06 3.66 0.55 7 Tribune Resources Limited Directors' report 30 June 2022 Individual 1m samples for the RC holes with anomalous values have been submitted to the lab and results for approximately half have been received with the results in the table below. Anomalous (+1g/t Au) values from RC holes at 7MH – 1m splits. Hole MGA N MGA E RL Depth TBRC081 TBRC082 and and and TBRC084 and 6583146 6583053 348602 348799 6582959 348769 341 341 - - - 341 - 198 173 - - - 184 - Dip (60) (60) - - - (60) - Az From To m 90 90 - - - 90 - 63 66 144 160 170 124 135 64 68 145 161 172 125 136 1 2 1 1 2 1 1 AU (g/t) 1.29 1.11 1.54 1.36 2.12 1.42 1.41 Further geological logging of the drill core is to be continued and the potential for additional drill hole targets is being considered. A number of the planned holes in the previous drilling campaign were not completed and are being reviewed for continuation of future drilling. Tribune Resources Ghana Limited (Tribune’s Interest 100%) The Japa Mining Lease is in the Western Region of Ghana, approximately 110 km South West of Kumasi and 50 km North of Tarkwa, centred in the village of Japa in the Wassa Amenfi East District. The lease covers a 26.20 square kilometre area within the Akropong Belt, an offshoot of the Ashanti Belt, developed within the Birimian Supergroup that hosts the most important multi-million-ounce Ashanti type lode-gold deposits of West Africa. The gold potential of the Japa Mining Lease has been demonstrated by the success of Tribune’s exploration work over a 14-year period whereby Tribune has defined significant gold mineralisation at several prospects within the mining Lease area. Activities undertaken by Tribune during the year included infill resource drilling to bring the indicated resources to measured resource and the inferred to indicated resource for the advancement of the project, database clean up and auditing, by Tribune Resources Limited and MaxGeo (Database Consultant), and further resources drillhole planning by Mining Plus (Resource Estimation Consultant) for the upgrading of the Mineral Resources. No mining activities nor mineral production were undertaken by the Company during the fiscal year ending June 2022. Resource Estimation Mining Plus Pty Ltd of Australia was contracted by Tribune Resources to undertake the resource estimation of all the drilling activities undertaken by Tribune on its Mining Lease. A highlight of the report prepared by Mining Plus is presented in the table below: Mineral Resource Estimate for the Adiembra Deposit - July 2020 Type Open Pit Total Adiembra Classification Indicated Inferred Cut Off Grade g/t Tonnes* Gold Grade g/t Gold Ounces* 0.5 0.5 0.5 4,640,000 16,350,000 20,990,000 2.6 2.7 2.7 390,000 1,420,000 1,810,000 * Dry metric tonnes rounded to nearest 10,000. Ounces rounded to nearest 10,000. Discrepancies may occur due to rounding. The principal focus during the year was to continue with the infill resource drilling definition to bring the indicated resources to measured resource and the inferred to indicated resource for the advancement of the project. During the year, drill holes which could not get to the required depth, were completed with diamond tails, drilling of two diamond cores from surface and reverse circulation drilling for extension of zones of mineralisation. This work included drilling of reverse circulation (RC) and diamond core drilling (DD) by Africa Mining Services (AMS), geological work by GeoXpert, survey by CBM, and sample analysis with Intertek Laboratory. Other activities undertaken by Tribune during this period included database clean up by Tribune Resources Limited, and MaxGeo (Database Consultant) who also brought in external database auditors for a comprehensive database auditing of historical and all other data for the Japa project. Drilling of planned resource holes and further infill drillhole planning by Mining Plus (Resource Estimation Consultant) for the upgrading of the Mineral Resources. 8 Tribune Resources Limited Directors' report 30 June 2022 Infill Resource Drilling Activities The Adiembra Infill Resource Definition Drilling Program began on the 16th of November 2020 and has continued to date. For the year in review, a total of 4,871.76m of diamond core (DD) were drilled, which includes diamond core tails from 49 pre-collared RC drill holes and 2 diamond core holes drilled from the collar of the hole. For the Reverse Circulation Percussion (RC), 10 drill holes at a total depth of 1,206m were drilled as part of extensions of zones of mineralisation during the period. These were done with two DD drill rigs and one RC drill rig. The DD cores were cut after geological, structural, and geotechnical logging were done and sampled. The RCs were riffle split and all the samples were taken to the Intertek laboratory in Tarkwa for analysis. A total of 5,634 samples including certified quality control standards, duplicates and blanks were submitted to the Intertek Laboratory for analysis during the year. Details of drillhole co-ordinates positions and results received can be found below: Adiembra infill drilling conducted showing Plan view of Drillhole Sections Plan of Adiembra infill and sterilisation drilling. Showing Resource model pit shell limit with Indicated and Inferred Resource blocks and unclassified mineralisation blocks coloured by block grade. 9 Tribune Resources Limited Directors' report 30 June 2022 Upcoming work in the coming year is to include the following; ● ● Undertake an UAV Aerial Topographic detailing and ground truth of surface topographic details of the Japa Project Area. Plan and execute infill DD and RC drilling program of around 8,322m for further infill and extension of areas of mineralisation to upgrade its resource to bring it to measured status. Plan and drill Metallurgical, Sterilization and Hydrological holes for plant, infrastructural, water, and tailings dam management. Plan and commenced mine development around Adiembra portion of the concession. ● ● Diwalwal Gold Project (Philippines) The Diwalwal Gold Project is located approximately 120 km northeast of Davao City on Mindanao Island in the Philippines. Tribune has relevant interest in the 729 Area and Upper Ulip subdivisions of the Diwalwal Mineral Reservation. The region is located east of the Philippine fault system in the Southern Pacific Cordillera, which hosts a north striking band of epithermal gold deposits. The Diwalwal Project area geology is dominated by Cretaceous to Paleogene volcanics consisting of andesitic to basaltic lavas, pyroclastics and volcaniclastics. The volcanic units have been intruded by Miocene diorite. These units are unconformably overlain by a series of younger sediments. The gold mineralisation at Diwalwal is classified as low-sulphidation epithermal type with gold-bearing quartz veins hosted in extensional fractures developed predominantly within the lava sequences. The 729 Area and Upper Ulip contain mineralised veins with the most significant located to date being Balite and Buenas Tinago, located within 729 Area. Both of these veins have been exploited by small-scale mine operations via numerous access tunnels and adits for several decades. Topographic map of Diwalwal Mineral Reservation. Tribune has relevant interest in the 729 Area and Upper Ulip subdivisions. Tribune has the rights to the Balite mineralisation within 729 Area below an elevation of 600 metres above sea level. Access to Balite is by the Victory Tunnel and refurbishment of the tunnel to establish diamond drill positions and explore the vein system further has been the principal focus of activities since acquiring the project. Refurbishment of Victory Tunnel was complete in August 2020 and completion of a 36 hole diamond drilling campaign in July 2021. 10 Tribune Resources Limited Directors' report 30 June 2022 Long projection view of Victory Tunnel looking north showing all holes completed to date and highlighting holes UBADH-032, UBADH-034 to UBADH-036 assay results. Drill hole traces are coloured by geology and mineralised intersections. Underground mapping and sampling returned appreciable results in West Drift and L-585 areas. Continuous 1m average channel cut rock chip sampling returned 5.07, 9.53, 4.12, 6.89, 5.83 ppm Au in West Drift and 5.26 and 3.77 ppm Au in L-585. Gold-silver ratios are indicative of mineralised horizon together with the other tracer elements. Plan view of Victory Tunnel showing coverage of recent underground mapping and sampling. Surface exploration in Simulao prospect completed a regional campaign over an area of 1,300 hectares composed of stream sediment sampling of first to second order streams, ridge-and-spur soil sampling (B-Horizon) at 100m interval, and 15 line-kilometre geologic mapping and rock. Underground face mapping of small-scale mines (SSM) in Lantawan reveal an uneroded epithermal system evidenced by pinching out veins and gold-base metals geochemistry. Most veins trend NW, perpendicular to the NE-trending Lantawan ridge topographic anomaly, more than 1km in length. With over a decade of local mining operations and increasing local investments despite high operational cost, gold appears to increase with depth. Rock samples from several SSM returned encouraging gold results with copper and zinc anomalies. Silver is present even in samples with <0.5 ppm gold. Together with previous results, geochemistry and geology strongly indicate a potential sizeable epithermal gold vein open at depth sampling. Initial geochemical results define a few faint to moderate gold-silver ridge-and-spur soil anomalies and weak gold rock geochemistry to the north. 11 Tribune Resources Limited Directors' report 30 June 2022 Geology and ridge-and-spur soil gold geochemistry of eastern areas Geochemical Sampling Results Encouraging results of underground mapping and sampling underground indicate additional gold mineralisation below West Drift subject to drilling confirmation, extending nearest grade shells to more than 50m. Section looking North showing potential additional mineralisation Environment Tree nursery operations carried on with the collection and propagation of endemic wildlings and rearing of selected hardwood and fruit-bearing trees. A Materials Recovery Facility is also maintained in Mabatas Camp where waste is segregated for proper disposal. To date, a total of 9,599 seedlings have been released from the nursery with 2,379 seedlings (Narra, Molave and Mahogany) remaining, including 151 wildings collected during the quarter. 12 Tribune Resources Limited Directors' report 30 June 2022 Corporate Seedlings at the Mabatas Nursery Share Buy-Back During the year, the Company extended the current on market share buy-back to 21 February 2023. No shares were bought back during the period. Dividends A fully franked dividend of 20 cents per share was paid to the shareholders of Tribune Resources Ltd on 5 November 2021. A fully franked dividend of 10 cents per ordinary share was paid to the shareholders of Rand Mining Limited on 5 November 2021. Proceedings against Northern Star Resources Ltd The EKJV litigation, as previously announced by the Company, remains ongoing. The matter was heard in the Supreme Court in mid-October 2020. The Company is still awaiting the Court’s decision. Resources and Reserves At 30 June 2022, Tribune’s Mineral Resources amounted to 24.3 million tonnes grading 3.1g/t gold for 2.4 million ounces of gold. Comparison with the Mineral Resources as of 30 June 2021, a decrease in of 1.16m tonnes and a decrease of 149,000 ounces reflected by the following variations: ● Design changes due to revised costs and design parameters during the transition of joint venture partners to Evolution Mining Limited from Northern Star Resources Revised gold price assumptions Mining depletion at Rubicon, Hornet and Pegasus. Stockpile adjustments reclassifying mineralised waste as potentially economic The omission of Falcon and Falcon North from the resource calculation ● ● ● ● The previously reported Mineral Resource for the Falcon and Falcon North deposits by Northern Star Resources has been removed from the 31 December 2021 Mineral Resource reported by Evolution. Evolution has commenced a technical review of the Falcon and Falcon North deposits and will look to report Mineral Resources for these deposits once additional drilling and an updated geological interpretation is completed. Mineral Resources Comparison Deposit EKJV and Stockpiles Adiembra Total 30 June 2022 (Mt) 30 June 2022 Au (g/t) 30 June 2022 Au (Moz) 30 June 2021 (Mt) 30 June 2021 Au (g/t) 30 June 2021 Au (Moz) 3.27 20.99 24.26 5.5 2.7 3.1 0.58 1.81 2.39 4.32 20.99 25.31 5.1 2.7 3.1 0.72 1.81 2.54 At 30 June 2022, Tribune’s Ore Reserves amounted to 1.3 million tonnes grading 4.8g/t gold for 204,000 ounces of gold. 13 Tribune Resources Limited Directors' report 30 June 2022 Comparison with the Ore Reserves as at 30 June 2021 shows a decrease of approximately 8,000 ounces in Ore Reserves reflected by the following variations: ● Ore reserves were evaluated using a AU$1,450/oz gold price assumption in line with Evolution Mining planning standards whereas Northern Star used a AU$1,750/oz gold price for the March 2021 Ore Reserve calculation Reduced haulage and processing costs due to ore being treated at Mungari Mill A review of mining methodology, ground support and other mining costs Sustaining capital and haulage costs excluded ● ● ● Ore Reserves Comparison Deposit EKJV and Stockpiles 30 June 2022 (Mt) 30 June 2022 Au (g/t) 30 June 2022 Au (Moz) 30 June 2021 (Mt) 30 June 2021 Au (g/t) 30 June 2021 Au (Moz) 1.31 4.8 0.20 1.32 5.0 0.21 14 Mineral Resources 30 June 2022 MEASURED INDICATED INFERRED TOTAL RESOURCES Tonnes (000's) Grade (g/t) Ounces (000's) Tonnes (000's) Grade (g/t) Ounces (000's) Tonnes (000's) Grade (g/t) Ounces (000's) Tonnes (000's) Grade (g/t) Ounces (000's) Surface Underground Stockpiles RHP Sub-Total East Kundana JV Adiembra, Japa Project, Ghana - 623 - 623 - 6.6 6.6 - 133 - 133 TOTAL 623 6.6 133 92 1,685 13 1,789 4,640 6,429 5.8 5.6 4.0 5.6 2.6 3.4 17 302 2 321 390 711 15 838 - 853 16,350 17,203 3.9 4.5 - 4.5 2.7 2.8 2 123 - 124 1,420 1,544 107 3,146 13 3,266 20,990 24,256 5.6 5.5 4.0 5.5 2.7 3.1 19 558 2 578 1,810 2,388 3 0 J u n e 2 0 2 2 D i r e c t o r s ' r e p o r t T r i b u n e R e s o u r c e s L i m i t e d Ore Reserves 30 June 2022 1 5 Surface Underground Stockpile RHP Sub-Total East Kundana JV TOTAL Notes to tables: Tonnes (000's) - 449 - 449 449 PROVED Grade (g/t) - 4.9 - 4.9 4.9 Ounces (000's) Tonnes (000's) - 71 - 71 71 39 809 13 861 861 PROBABLE Grade (g/t) 5.0 4.8 4.0 4.8 4.8 TOTAL RESERVES Ounces (000's) Tonnes (000's) Grade (g/t) Ounces (000's) 6 125 2 132 132 39 1,259 13 1,310 1,310 5.0 4.8 4.0 4.8 4.8 6 196 2 204 204  EKJV Resources and Reserves are estimated by Evolution Mining Limited for period ending 31 December 2022 and were reported on 16 February 2022 in Evolution Mining Limited ASX Announcement “Annual Mineral Resources and Ore Reserves Statement” included in the Mungari results.  Stockpiles are reported as at 30 June 2022  Resources and Reserves as reported are 100% Tribune Resources Limited  Resources are inclusive of Reserves.  Gold price used for the EKJV Resource Estimation is AUD$2,000/oz.  Gold price used for the EKJV Reserve Estimation is AUD$1,450/oz.  Data is reported to significant figures to reflect appropriate precision and may not sum precisely due to rounding  Tribune Resources Ltd holds a 36.75% interest in the EKJV Mineral Resource, with the exception of Raleigh which is 37.50%. Tribune Resources Limited Directors' report 30 June 2022 Mineral Resource and Ore Reserve Governance and Internal Controls The Manager of the EKJV prepares the EKJV Mineral Resources and Ore Reserves on an annual basis in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Competent Persons named by the EKJV Manager are Members or Fellows of the Australasian Institute of Mining and Metallurgy and/or the Australian Institute of Geoscientists and qualify as Competent Persons as defined in the JORC Code. The Company is represented on the EKJV Technical Committee which reviews the Mineral Resource and Ore Reserve estimates and procedures undertaken. The Company’s Competent Persons and consultants audit internal reviews by the EKJV Manager and external reviews by independent consultants of Mineral Resource and Ore Reserve estimates and procedures. These audits have not identified any material issues. Tribune Resources engaged independent mining consultancy Mining Plus Pty Ltd to conduct the Mineral Resource estimation for the Adiembra Gold Deposit. This estimate has been reviewed by the Company’s Competent Person. Competent Person Statements The information in the Company’s 2022 Annual Report that relates to Mineral Resources and Ore Reserves is based on information and supporting documentation prepared by the Competent Persons referred to in the ASX announcements detailed in the footnotes to the Minerals Resources and Ore Reserves Tables (Tables) and fairly and accurately represents that information. The Mineral Resources and Ore Reserves statement included in this Annual Report, as well as the information provided by the Competent Persons referred to in the relevant ASX announcements detailed in the footnotes to the Tables, have been reviewed and approved by Mr Gregory Barnes. Exploration results presented in this report have been prepared in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) by Mr Gregory Barnes. Mr Barnes is a Member of the Australasian Institute of Mining and Metallurgy, is a self-employed consulting geologist to Tribune Resources and has sufficient relevant experience in the activities undertaken and styles of mineralisation being reported to qualify as a Competent Person under the JORC Code. Mr Barnes consents to the inclusion in this report of the information compiled by him in the form and context in which it appears. Significant changes in the state of affairs The legal proceeding against the Northern Star Resources Group of Companies previously announced by the Company was heard in the Supreme Court of Western Australia in October 2020. The Company is awaiting the Court’s decision. On 18 August 2021, Evolution Mining Ltd (ASX:EVN) acquired Northern Star Resources Ltd's (ASX:NST) 51% interest in the East Kundana Joint Venture. As a result of this transaction, the 51% joint venture ownership and joint venture management is now owned by Evolution Mining Ltd. The Group announced an extension to the on market buy-back on 1 February 2022. The buy-back up to a maximum of 5,246,807 shares was extended to 21 February 2023. There were no other significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to date, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations The Group intends to continue its exploration, development and production activities on its existing projects and to acquire further suitable projects for exploration as opportunities arise. Environmental regulation The Group is subject to and compliant with all aspects of environmental regulation of its exploration and mining activities. The directors are not aware of any environmental law that is not being complied with. Greenhouse gas and energy data reporting requirements The Group is subject to the reporting requirements of both the Energy Efficiency Opportunities Act 2006 and the National Greenhouse and Energy Reporting Act 2007. The Energy Efficiency Opportunities Act 2006 requires the Group to assess its energy usages, including the identification, investigation and evaluation of energy saving opportunities, and to report publicly on the assessments undertaken, including what action the Group intends to take as a result. Due to this Act, the Group, via its participation in the EKJV has registered with the Department of Resources, Energy and Tourism as a participant entity and reports the results from its assessments. 16 Tribune Resources Limited Directors' report 30 June 2022 The National Greenhouse and Energy Reporting Act 2007 require the Group, via its participation in the EKJV, to report its annual greenhouse gas emissions and energy use. The Group has previously implemented systems and processes for the collection and calculation of data. Information on directors Name: Title: Experience and expertise: Other current directorships: Former directorships (last 3 years): Interests in shares: Interests in options: Name: Title: Experience and expertise: Other current directorships: Former directorships (last 3 years): Interests in shares: Interests in options: Name: Title: Qualifications: Experience and expertise: Other current directorships: Former directorships (last 3 years): Interests in shares: Interests in options: Otakar Demis Non-Executive Chairman and Joint Company Secretary Otakar is a private investor and businessman with several years’ experience as a director of the Company. Non-Executive Chairman and Joint Company Secretary of Rand Mining Limited (ASX: RND) None 12,000 ordinary shares held directly None Anthony Billis Executive Director and Managing Director Anthony has over 30 years’ experience in gold exploration within the mining industry in Western Australia. He has been involved in the exploration and development of the Kundana project for over 25 years. Executive Director of Rand Mining Limited (ASX: RND) None 17,151,136 ordinary shares (17,351 held directly and 17,133,785 held indirectly) None Gordon Sklenka Non-Executive Director B.Comm Gordon has worked in Chartered Accounting, Stockbroking and Corporate Advisory in Perth, Sydney and Toronto and has in excess of 25 years’ experience in corporate finance in the resources and technology industries predominantly focusing on capital raisings, initial public offerings ('IPOs'), acquisitions and project finance. Non-Executive Director of Rand Mining Limited (ASX: RND) None None None 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships in all other types of entities, unless otherwise stated. 'Former directorships (in the last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships in all other types of entities, unless otherwise stated. Company secretaries Details of Mr Otakar Demis as company secretary can be found in the ‘Information of directors’ section above. Stephen Buckley (GAICD) is joint company secretary. Stephen has 37 years’ experience in financial markets having worked in both Australia and New Zealand. He is the Managing Director of Company Secretary Solutions Pty Ltd, a company specialising in providing company secretarial, corporate governance and corporate advisory services. Meetings of directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2022, and the number of meetings attended by each director were: Attended Full Board Held 2 2 2 2 2 2 O Demis A Billis G Sklenka Held: represents the number of meetings held during the time the director held office. The function of the Nomination and Remuneration Committee was undertaken by the Full Board. 17 Tribune Resources Limited Directors' report 30 June 2022 Remuneration report (audited) The remuneration report, which has been audited, outlines the director and key management personnel remuneration arrangements for the Group and the Company, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● ● ● ● ● ● Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share-based compensation Additional information Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the Group and Company's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and conforms with the market best practice for delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices: ● ● ● ● competitiveness and reasonableness; acceptability to shareholders; performance linkage / alignment of executive compensation; and transparency. The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The performance of the Group and Company depends on the quality of its directors and executives. The remuneration philosophy is to attract, motivate and retain high performance and high quality personnel. The Board has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the Group and Company. The reward framework is designed to align executive reward to shareholders' interests. The Board has considered that it should seek to enhance shareholders' interests by: ● ● having economic profit as a core component of plan design; and attracting and retaining high calibre executives. Additionally, the reward framework should seek to enhance executives' interests by: ● ● ● rewarding capability and experience; reflecting competitive reward for contribution to growth in shareholder wealth; and providing a clear structure for earning rewards. In accordance with best practice corporate governance, the structure of non-executive directors and executive directors remuneration are separate. Non-executive directors' remuneration Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non-executive directors' fees and payments are reviewed annually by the Board. The Board may seek the advice of independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market (refer ‘use of remuneration consultants’ below). There are no termination or retirement benefits for non-executive directors other than statutory superannuation. ASX listing rules requires that the aggregate non-executive directors remuneration shall be determined periodically by a general meeting. The most recent determination was at the Annual General Meeting held on 30 November 2005, where the shareholders approved an aggregate remuneration of $320,000 for Tribune Resources Limited and Rand Mining Limited. Executive remuneration The Group and Company aims to reward executives with a level and mix of remuneration based on their position and responsibility, which is both fixed and variable. The executive remuneration and reward framework has four components: ● ● ● ● base pay and non-monetary benefits; short-term performance incentives; share-based payments; and other remuneration such as superannuation and long service leave. The combination of these comprises the executive's total remuneration. 18 Tribune Resources Limited Directors' report 30 June 2022 Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the Board, based on individual and business unit performance, the overall performance of the Group and comparable market remunerations. Executives can receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Group and adds additional value for the executive. The short-term incentives ('STI') program is designed to align the targets of the business units with the targets of those executives in charge of meeting those targets. STI payments are granted to executives based on specific annual targets and key performance indicators ('KPI') being achieved. KPI’s include profit contribution, customer satisfaction, leadership contribution and product management. The long-term incentives ('LTI') currently consists of long service leave. Group performance and link to remuneration The directors' remuneration levels are not directly dependent upon the Group and Company's performance or any other performance conditions. However, practically, whether shareholders vote for or against an increase in the aggregate director remuneration will depend upon, amongst other things, how the Group and Company have performed. Use of remuneration consultants During the financial year ended 30 June 2022, the Company did not engage remuneration consultants, to review its existing remuneration policies and provide recommendations on how to improve both the STI and LTI program. Voting and comments made at the Company's 2021 Annual General Meeting ('AGM') At the last AGM 96.86% of the shareholders voted to adopt the remuneration report for the year ended 30 June 2021. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. Details of remuneration The key management personnel of the Group consisted of the following directors of Tribune Resources Limited: ● ● ● Otakar Demis - Non-Executive Chairman Anthony Billis - Executive Director, Managing Director and Chief Executive Officer Gordon Sklenka - Non-Executive Director Amounts of remuneration Details of the remuneration of the directors and other key management personnel (defined as those who have the authority and responsibility for planning, directing and controlling the major activities of the Group) of Tribune Resources Limited are set out in the following tables. Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary and fees $ Non- Bonus monetary* $ $ Super- annuation $ Leave benefits $ Equity- settled $ 80,000 60,000 183,375 323,375 - - - - - - 8,000 - 4,878 4,878 18,337 26,337 - - - - - - - - Total $ 88,000 60,000 206,590 354,590 2022 Non-Executive Directors: O Demis G Sklenka Executive Directors: A Billis* * Includes car and housing plus applicable fringe benefits tax payable on benefits 19 Tribune Resources Limited Directors' report 30 June 2022 2021 Non-Executive Directors: O Demis G Sklenka Executive Directors: A Billis* Other Key Management Personnel: R Johns** Short-term benefits Post- employment benefits Long-term benefits Share-based payments Cash salary and fees $ Non- Bonus monetary* $ $ Super- annuation $ Leave benefits $ Equity- settled $ 80,000 60,000 183,375 354,249 677,624 - - - - - - - 7,600 - 78,610 17,421 - 78,610 - 25,021 - - - - - - - - - - Total $ 87,600 60,000 279,406 354,249 781,255 * ** Includes car and housing plus applicable fringe benefits tax payable on benefits Remuneration is from 1 July 2020 to 25 May 2021, being the date of cessation as a member of key management personnel The proportion of remuneration linked to performance and the fixed proportion are as follows: Name Non-Executive Directors: O Demis G Sklenka Executive Directors: A Billis Fixed remuneration 2021 2022 2022 At risk - STI 2021 2022 At risk - LTI 2021 100% 100% 100% 100% 100% 100% - - - - - - - - - - - - - - - - Other Key Management Personnel: R Johns - 100% Service agreements Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Term of agreement: Details: Anthony Billis Executive Director, Managing Director and Chief Executive Officer Ongoing Base salary, inclusive of superannuation, for the year ended 30 June 2022 of $201,712 to be reviewed annually by the Board. During the year Mr Billis received an additional $4,878 in fringe benefits which was approved by the Board. Key management personnel have no entitlement to termination payments in the event of removal for misconduct. There is no provision for any other termination payments. Share-based compensation Issue of shares There were no shares issued to directors and other key management personnel as part of compensation during the year ended 30 June 2022. Options There were no options over ordinary shares issued to directors and other key management personnel as part of compensation that were outstanding as at 30 June 2022. There were no options over ordinary shares granted to or vested by directors and other key management personnel as part of compensation during the year ended 30 June 2022. 20 Tribune Resources Limited Directors' report 30 June 2022 Additional information The earnings of the Group for the five years to 30 June 2022 are summarised below: Sales revenue EBITDA EBIT Profit after income tax 2022 $ 2021 $ 2020 $ 2019 $ 2018 $ 124,064,015 26,873,283 13,745,691 7,475,592 177,568,700 110,865,948 93,002,792 58,843,526 179,367,328 94,031,327 75,107,334 47,353,849 364,248,049 155,490,176 135,000,505 72,264,057 179,690,800 95,640,396 79,691,440 54,424,492 The factors that are considered to affect total shareholders return ('TSR') are summarised below: Share price at financial year end ($) Total dividends declared (cents per share) Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Additional disclosures relating to key management personnel 2022 3.85 30.00 3.43 3.36 2021 4.60 30.00 96.72 96.72 2020 7.29 30.00 87.19 87.19 2019 5.45 505.00 65.23 65.23 2018 6.35 - 84.17 84.17 Shareholding The number of shares in the Company held during the financial year by each director and other members of key management personnel of the Group, including their personally related parties, is set out below: Ordinary shares O Demis A Billis G Sklenka Balance at the start of the year Received as part of remuneration Additions Disposals/ other 12,000 17,151,136 - 17,163,136 - - - - - - - - - - - - Balance at the end of the year 12,000 17,151,136 - 17,163,136 Option holding There were no options over ordinary shares in the Company held during the financial year by any director and other members of key management personnel of the Group, including their personally related parties. Loans to key management personnel and their related parties There were no loans to or from key management personnel and their related parties at the current reporting date. Other transactions with key management personnel and their related parties The following transactions occurred with related parties: 2022 $ 6,275 186,851 446,326 Payment for other expenses: Payment of exploration related expenses for Lake Grace Exploration Pty Ltd * Payment of rent, rates and levies to Melville Parade Pty Ltd * Reimbursement of operating expenses to Iron Resources Liberia Ltd * * An entity in which Anthony Billis is a director All transactions were made on normal commercial terms and conditions and at market rates. This concludes the remuneration report, which has been audited. 21 Tribune Resources Limited Directors' report 30 June 2022 Shares under option Unissued ordinary shares of Tribune Resources Limited under option at the date of this report are as follows: Grant date 31 May 2022 Expiry date 31 May 2025 Exercise price Number under option $6.00 1,000,000 No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate. Shares issued on the exercise of options There were no ordinary shares of Tribune Resources Limited issued on the exercise of options during the year ended 30 June 2022 and up to the date of this report. Indemnity and insurance of officers The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against liabilities that may arise from an officers’ position with the exception of insolvency, conduct involving a wilful breach in relation to the Company, or a contravention of section 182 or 183 of the Corporations Act 2001, an entity that is involved in any joint venture or, partnership or enterprise carried on in common with the Company, outside directorships, any outside entity or non-profit outside entity or any vehicle or entity established to conduct such joint venture partnership or enterprise. The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium. Indemnity and insurance of auditor The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Proceedings on behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings. Non-audit services Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 28 to the financial statements. The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are of the opinion that the services as disclosed in note 28 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: ● ● all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Company, acting as advocate for the Company or jointly sharing economic risks and rewards. Officers of the Company who are former partners of RSM Australia Partners There are no officers of the Company who are former partners of RSM Australia Partners. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. 22 Tribune Resources Limited Directors' report 30 June 2022 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Anthony Billis Director 29 September 2022 Perth 23 RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the financial report of Tribune Resources Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) (ii) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. RSM AUSTRALIA PARTNERS Perth, WA Dated: 29 September 2022 AIK KONG TING Partner THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation 24Tribune Resources Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2022 Revenue Other income Interest revenue calculated using the effective interest method Expenses Changes in inventories Employee benefits expense Management fees Depreciation and amortisation expense Impairment of assets Net loss on disposal of property, plant and equipment Administration expenses Exploration and evaluation expense Mining expenses Processing expenses Royalty expenses Foreign currency losses Finance costs Profit before income tax expense Income tax expense Profit after income tax expense for the year Other comprehensive income Items that will not be reclassified subsequently to profit or loss Gain/(loss) on revaluation of land and buildings, net of tax Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income for the year, net of tax Total comprehensive income for the year Profit for the year is attributable to: Non-controlling interest Owners of Tribune Resources Limited Total comprehensive income for the year is attributable to: Non-controlling interest Owners of Tribune Resources Limited Basic earnings per share Diluted earnings per share Note 2022 $ 2021 $ 5 6 7 7 7 8 124,064,629 177,707,786 80,544 17,942 - 56,999 (30,596,314) (2,073,111) (1,735,891) (13,127,592) (70,376) - (4,413,239) (7,136,553) (34,295,281) (14,496,394) (2,267,383) (187,348) (142,634) 63,192,100 (2,328,282) (1,388,853) (17,863,156) (4,628,861) (543,309) (5,056,736) (16,286,496) (57,283,993) (37,178,775) (5,122,340) (216,293) (169,315) 13,620,999 92,890,476 (6,145,407) (34,046,950) 7,475,592 58,843,526 - 455,467 (655,654) (10,390) (655,654) 445,077 6,819,938 59,288,603 5,677,919 1,797,673 8,098,212 50,745,314 22 7,475,592 58,843,526 5,677,919 1,142,019 8,098,212 51,190,391 6,819,938 59,288,603 Cents 3.43 3.36 Cents 96.72 96.72 37 37 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 25 Tribune Resources Limited Consolidated statement of financial position As at 30 June 2022 Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Income tax refund due Total current assets Non-current assets Financial assets at fair value through profit or loss Property, plant and equipment Right-of-use assets Exploration and evaluation Mine development Deferred tax asset Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Income tax Provisions Total current liabilities Non-current liabilities Lease liabilities Deferred tax liability Provisions Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Retained profits Equity attributable to the owners of Tribune Resources Limited Non-controlling interest Total equity Note 2022 $ 2021 $ 9 10 11 8 12 13 14 15 16 8 17 18 8 19 18 8 19 20 21 22 23 6,840,897 1,050,390 202,317,174 8,804,914 219,013,375 4,162,752 2,057,391 233,051,352 - 239,271,495 751,559 7,354,169 3,559,611 8,791,986 80,168,923 10,453,060 111,079,308 790,250 49,537,345 5,954,818 7,476,542 40,550,645 10,143,100 114,452,700 330,092,683 353,724,195 9,718,686 819,640 - 356,973 10,895,299 14,426,014 2,452,104 11,465,891 263,681 28,607,690 45,928 18,403,763 1,834,582 20,284,273 863,219 16,817,145 1,833,405 19,513,769 31,179,572 48,121,459 298,913,111 305,602,736 58,200,026 (1,294,973) 191,315,381 248,220,434 50,692,677 58,200,026 (653,291) 200,011,323 257,558,058 48,044,678 298,913,111 305,602,736 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 26 Tribune Resources Limited Consolidated statement of changes in equity For the year ended 30 June 2022 Contributed equity $ Reserves $ Retained Non-controlling interest $ profits $ Total equity $ Balance at 1 July 2020 58,200,026 (954,065) 159,912,541 47,993,568 265,152,070 Profit after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Share buy-back (note 20) Change in ownership interest Dividends - - - - - - - 445,077 50,745,314 - 8,098,212 - 58,843,526 445,077 445,077 50,745,314 8,098,212 59,288,603 - (144,303) - - - (10,646,532) (3,081,194) (1,761,653) (3,204,255) (3,081,194) (1,905,956) (13,850,787) Balance at 30 June 2021 58,200,026 (653,291) 200,011,323 48,044,678 305,602,736 Contributed equity $ Reserves $ Retained Non-controlling interest $ profits $ Total equity $ Balance at 1 July 2021 58,200,026 (653,291) 200,011,323 48,044,678 305,602,736 Profit after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Share-based payments (note 38) Dividends - - - - - - (655,654) 1,797,673 - 5,677,919 - 7,475,592 (655,654) (655,654) 1,797,673 5,677,919 6,819,938 13,972 - - (10,493,615) - (3,029,920) 13,972 (13,523,535) Balance at 30 June 2022 58,200,026 (1,294,973) 191,315,381 50,692,677 298,913,111 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 27 Tribune Resources Limited Consolidated statement of cash flows For the year ended 30 June 2022 Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest and other finance costs paid Income taxes paid Net cash from operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for exploration and evaluation Payments for mine development Proceeds from disposal of property, plant and equipment Net cash used in investing activities Cash flows from financing activities Net dividends paid Repayment of lease liabilities Payments for share buy-backs Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents Note 2022 $ 2021 $ 124,064,015 (59,556,303) 16,266 (135,522) (26,573,034) 177,693,381 (108,738,116) 31,326 (163,690) (24,445,869) 36 37,815,422 44,377,032 (1,812,954) (10,606,817) (6,955,061) 136,041 (5,195,806) (17,519,657) (8,845,644) 614,821 (19,238,791) (30,946,286) (13,523,535) (2,364,448) - (13,850,787) (4,453,439) (4,987,152) (15,887,983) (23,291,378) 2,688,648 4,162,752 (10,503) (9,860,632) 14,022,938 446 Cash and cash equivalents at the end of the financial year 9 6,840,897 4,162,752 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 28 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 1. General information The financial statements cover Tribune Resources Limited as a Group consisting of Tribune Resources Limited ('Company', 'parent entity' or 'Tribune') and the entities it controlled at the end of, or during, the year (referred to in these financial statements as the 'Group'). The financial statements are presented in Australian dollars, which is Tribune Resources Limited's functional and presentation currency. Tribune Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Suite G1, 49 Melville Parade South Perth WA 6151 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 29 September 2022. The directors have the power to amend and reissue the financial statements. Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial year ended 30 June 2022. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets at fair value through profit or loss and certain classes of property, plant and equipment. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 32. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Tribune as at 30 June 2022 and the results of all subsidiaries for the year then ended. Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. 29 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the Group. Losses incurred by the Group are attributed to the non- controlling interest in full, even if that results in a deficit balance. Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Foreign currency translation The financial statements are presented in Australian dollars, which is Tribune Resources Limited's functional and presentation currency. Foreign currency transactions Foreign currency transactions are translated into the Group's functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. Revenue recognition The Group recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Group is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Group: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised. Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability. Sale of gold Sale of gold revenue is recognised at the point of sale, which is where the customer has taken delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales contract. Interest Interest revenue is recognised as interest accrues using the effective interest method. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Income tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. 30 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. ● Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Inventories Gold bullion, gold in transit and ore stockpiles are physically measured or estimated and valued at the lower of cost and net realisable value. Net realisable value is the estimated future sales price of the product the Group expects to realise when the product is processed and sold, less costs to complete production. The costs of producing silver are not separately identifiable and are allocated between the products on a rational and consistent basis based on the relative sales value at the completion of production. Cost is determined using the average method and comprises direct purchase costs and an appropriate portion of fixed and variable costs including depreciation and amortisation, incurred in converting materials into finished goods. Consumables are valued at the lower of cost or net realisable value. Any provision for obsolescence is determined by reference to specific items of stock. A regular review is undertaken to determine the extent of any provision or obsolescence. Associates Associates are entities over which the Group has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the Group's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment. 31 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The Group discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss. Other entities Interest in entities that do not meet the classification as a joint venture or joint operations but has similar characteristics to a joint operation are recognised by the Group by bringing to account its share of the entity’s assets, liabilities, revenues and expenses under the relevant accounting standards for those assets, liabilities, revenues and expenses. Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off. Financial assets at fair value through profit or loss ('FVTPL') Listed shares held by the Group that are traded in an active market are measured at FVTPL. The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices. Gains and losses arising from changes in fair value are recognised in profit or loss. Dividends are recognised in profit or loss when the Group’s right to receive the dividends is established. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition. Financial assets at amortised cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Impairment of financial assets The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss. Property, plant and equipment Land and buildings are shown at fair value, based on periodic valuations conducted by external independent valuers at least every three years, less subsequent depreciation and impairment for buildings. The valuations are undertaken more frequently if there is a material change in the fair value relative to the carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amounts arising on revaluation of land and buildings are credited to the revaluation surplus reserve in equity. Any revaluation decrements are initially taken to the revaluation surplus reserve to the extent of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or loss. Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. 32 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Plant and equipment Motor vehicles Mining plant and equipment 11 years 3 - 5 years 8 years 3 - 10 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits. Mining plant and equipment and construction work in progress Mining plant and equipment and construction work in progress is carried at cost which includes acquisition, transportation, installation, and commissioning costs. Costs also include present value of decommissioning costs and finance charges capitalised during the construction period where such expenditure is financed by borrowings. Costs are not depreciated until such time as the asset has been completed ready for use. Subsequent costs are included in the asset’s carrying amount only when it is probable that future economic benefits associated with the item will flow to the Group, and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. Intangible assets Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made. Exploration and evaluation Exploration and evaluation expenditures are typically expensed, unless it can be demonstrated that the related expenditures will generate a future economic benefit, in which case these costs are capitalised. Examples of common exploration and evaluation activities include, but are not limited to: Exploration activities which primarily consist of expenditures relating to drilling programs and include, but are not limited to: ● ● ● Researching and analysing existing exploration data; Conducting geological mapping studies; and Exploratory drilling and sampling including: • Taking core samples for analysis (assay work); • Sinking exploratory shafts; • Opening shallow pits; and • Drilling to determine volume and grade of deposits in an area known to contain mineral resources, or for the purpose of converting mineral resources into proven and probable reserves. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of the asset exceeds its recoverable amount. Where the carrying amount is assessed as exceeding recoverable amount, the excess is recognised as an impairment expense in the profit or loss. 33 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Mine development assets Capitalised mine development costs include expenditures incurred to develop new ore bodies to define further mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain production. Mining development also includes costs transferred from the exploration and evaluation phase once production commences in the area of interest. Amortisation of mine development is computed by the units of production basis over the estimated proved and probable reserves and a predetermined percentage of the recoverable measured, indicated and inferred resource. The percentage is reviewed annually. Proved and probable mineral reserves reflect estimated quantities of economically recoverable reserves which can be recovered in the future from known mineral deposits. These reserves are amortised from the date on which production commences. The amortisation is calculated from recoverable proven and probable reserves and a predetermined percentage of the recoverable measured, indicated and inferred resource. This percentage is reviewed annually. Restoration costs expected to be incurred are provided for as part of the development phase that give rise to the need for restoration. Impairment of non-financial assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. Provisions Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Site rehabilitation Rehabilitation costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with the requirements of the mining permits. Such costs are determined using estimates of future costs, current legal requirements and technology. Rehabilitation costs are recognised at present value as a non-current liability. An equivalent amount is capitalised as part of the cost of the asset when an obligation arises to decommission or restore a site to certain condition after abandonment as a result of bringing the assets to its present location. The capitalised cost is amortised over the life of the project and the provision is accreted periodically as the discounting of the liability unwinds. The unwinding of the discount is recorded as a finance cost. Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. 34 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high-quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. Share-based payments Equity-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair value measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on 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; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques used to measure fair value are those that are appropriate in the circumstances and which maximise the use of relevant observable inputs and minimise the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. Contributed capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Dividends Dividends are recognised when declared during the financial year and no longer at the discretion of the Company. 35 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 2. Significant accounting policies (continued) Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Tribune Resources Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional ordinary shares that would have been outstanding assuming conversion of all dilutive potential ordinary shares. Goods and Services Tax ('GST') and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting year ended 30 June 2022. The directors have reviewed all new Standards and Interpretations that have been issued but are not yet effective and have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Group and, therefore, no change is necessary to Group accounting policies. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Coronavirus (COVID-19) pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Inventories Ore stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained gold ounces based on assay data, and the estimated processing plant metal recovery percentage. Stockpile tonnages are verified by periodic surveys. Fair value measurement hierarchy The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective. The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs. 36 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 3. Critical accounting judgements, estimates and assumptions (continued) Income tax The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Lease term The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the Group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The Group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances. Exploration and evaluation costs Exploration and evaluation costs have been capitalised on the basis that the Group will commence commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which this determination is made. Carrying value of mine development assets Mine development assets are amortised using the unit of production ('UOP') method where the mine operating plan calls for production from well- defined mineral reserves. The calculation of the UOP rate of amortisation could be impacted to the extent that actual production in the future is different from the current forecast production based on proved and probable mineral reserves. This would generally result to the extent that there are significant changes in any of the factors or assumptions used in estimating mineral reserves. These factors could include: ● ● ● ● ● ● Change in proved and probable reserves; The grade of mineral reserves may vary significantly from time to time; Differences between actual commodity prices and commodity prices assumption; Unforeseen operational issues at mine site; Changes in capital, operating, mining, processing and reclamation costs, discount rates; and Changes in mineral reserves could similarly impact the useful lives of the assets depreciated on a straight line basis, where those lives are limited to the life of the mine. The Group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared for future cash flows the mining assets. Expected future cash flows used to determine the value-in-use of tangible assets are inherently uncertain and could materially change over time. They are significantly affected by a number of factors including reserves and production estimates, together with economic factors such as spot gold prices, discount rates, estimates of costs to produce reserves and future capital expenditure. In the opinion of the directors, there are no indicators of impairment at the reporting date. Note 4. Operating segments Identification of reportable operating segments The Group is organised into one operating segment, being mining and exploration operations. This operating segment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. Types of products and services The principal products and services of this operating segment are the mining and exploration operations in Australia, including the East Kundana and West Kundana Joint Ventures with Northern Star Resources Ltd, West Africa and Philippines. Major customers During the year ended 30 June 2022 approximately 100% (30 June 2021: 100%) of the Group's external revenue was derived from sales to one customer. 37 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 4. Operating segments (continued) Operating segment information As noted above, the Board only considers one segment to be a reportable segment for its reporting purposes. As such, the reportable information the CODM reviews is detailed throughout the financial statements. Note 5. Revenue Revenue from contracts with customers Sales of gold Sales of ore Other revenue Other revenue Revenue Disaggregation of revenue All sales of gold were made in Australia and recognised as point in time revenue. Note 6. Other income Net gain on disposal of property, plant and equipment 2022 $ 2021 $ 121,685,775 2,378,240 124,064,015 177,568,700 - 177,568,700 614 139,086 124,064,629 177,707,786 2022 $ 80,544 2021 $ - 38 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 7. Expenses Profit before income tax includes the following specific expenses: Depreciation Buildings Plant and equipment Motor vehicles Mining plant and equipment Plant and equipment - right-of-use assets Total depreciation Amortisation Mine development Total depreciation and amortisation Impairment of assets Trade and other receivables Loss/(gain) on financial assets measured at fair value through profit or loss Mine development Total impairment of assets Finance costs Interest and finance charges paid/payable on borrowings Interest and finance charges paid/payable on lease liabilities Finance costs expensed Superannuation expense Defined contribution superannuation expense 2022 $ 2021 $ 224,504 43,241 49,972 3,115,884 2,395,207 201,936 49,328 45,963 3,515,183 3,152,094 5,828,808 6,964,504 7,298,784 10,898,652 13,127,592 17,863,156 - 38,691 31,685 70,376 135,521 7,113 142,634 (462,344) (119,291) 5,210,496 4,628,861 163,690 5,625 169,315 124,319 100,477 39 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 8. Income tax Income tax expense Current tax Deferred tax - origination and reversal of temporary differences Current tax relating to prior periods Deferred tax relating to prior periods Aggregate income tax expense Deferred tax included in income tax expense comprises: Increase in deferred tax assets Increase in deferred tax liabilities Deferred tax - origination and reversal of temporary differences Numerical reconciliation of income tax expense and tax at the statutory rate Profit before income tax expense Tax at the statutory tax rate of 30% Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Entertainment expenses Tax offset for franked dividends Non-taxable dividends Consulting fees Net foreign exchange losses Impairment Other - non-deductible Sundry items Adjustment recognised for prior periods Tax benefit not brought to account Difference in foreign tax rate Income tax expense Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit at statutory tax rates 2022 $ 2021 $ 4,822,738 1,276,658 46,011 - 31,647,815 2,496,182 (65,135) (31,912) 6,145,407 34,046,950 (309,960) 1,586,618 (2,093,105) 4,589,287 1,276,658 2,496,182 13,620,999 92,890,476 4,086,300 27,867,143 1,241 (1,139,004) 1,139,004 20,490 (2,900,171) - 137,208 5,920 1,350,988 46,011 5,219,362 (470,954) 212 (1,139,004) 1,139,004 55,786 (794,585) (138,608) 122,317 3,558 27,115,823 (20,890) 6,854,740 97,277 6,145,407 34,046,950 2022 $ 2021 $ 11,555,528 12,801,628 4,044,435 4,480,570 At 30 June 2022, the Group had a potential deferred tax asset of Ghanaian Cedi ('₵') ₵63,596,744 (AUD $11,555,528) (30 June 2021: ₵56,594,289 (AUD $12,801,628)). The above potential tax benefit for tax losses have not been recognised in the statement of financial position. 40 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 8. Income tax (continued) Deferred tax asset Deferred tax asset comprises temporary differences attributable to: Amounts recognised in profit or loss: Property, plant and equipment Leases Rehabilitation provisions Capitalised mine development costs Blackhole expenditure Sundry accruals and provisions for leave Deferred tax asset Movements: Opening balance Credited to profit or loss Closing balance Deferred tax liability Deferred tax liability comprises temporary differences attributable to: Amounts recognised in profit or loss: Right-of-use assets Capitalised exploration and mine development Consumables Trading stock Other Deferred tax liability Movements: Opening balance Charged to profit or loss Closing balance Income tax refund due Income tax refund due Provision for income tax Provision for income tax 41 2022 $ 2021 $ 636,154 40,395 544,929 9,055,830 26,159 149,593 317 65,986 548,930 9,370,329 38,163 119,375 10,453,060 10,143,100 10,143,100 309,960 8,049,995 2,093,105 10,453,060 10,143,100 2022 $ 2021 $ 142,141 14,806,871 686,584 1,639,829 1,128,338 164,147 13,728,975 482,516 1,841,533 599,974 18,403,763 16,817,145 16,817,145 1,586,618 12,227,858 4,589,287 18,403,763 16,817,145 2022 $ 8,804,914 2022 $ 2021 $ - 2021 $ - 11,465,891 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 9. Cash and cash equivalents Current assets Cash on hand Cash at bank Cash on deposit 2022 $ 2021 $ 6,936 6,783,961 50,000 10,448 4,102,304 50,000 6,840,897 4,162,752 Cash at bank bears fixed interest at 1.60% (30 June 2021: 0.39%) and cash on hand is non-interest bearing. Cash on deposit bears floating interest rates of 0.49% (30 June 2021: 0.12%). These deposits have an average maturity of 180 days. Note 10. Trade and other receivables Current assets Trade receivables Other receivables Prepayments 2022 $ 2021 $ - 908,234 142,156 1,583 1,967,626 88,182 1,050,390 2,057,391 Allowance for expected credit losses The ageing of the receivables and allowance for expected credit losses provided for above are as follows: Expected credit loss rate 2021 % 2022 % Carrying amount 2021 $ 2022 $ Allowance for expected credit losses 2021 $ 2022 $ Not overdue - - - 1,583 - - Movements in the allowance for expected credit losses are as follows: Opening balance Receivables paid during the year Closing balance 2022 $ - - - 2021 $ 462,344 (462,344) - 42 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 11. Inventories Current assets Ore stockpiles - at cost Gold in transit - at cost Gold on hand - at cost Silver on hand - at net realisable value Consumables - at cost Note 12. Financial assets at fair value through profit or loss Non-current assets Listed securities - at fair value through profit or loss Reconciliation Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Opening carrying amount Gain/(loss) on revaluation through profit or loss Closing carrying amount Note 13. Property, plant and equipment Non-current assets Land and buildings - at independent valuation Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Motor vehicles - at cost Less: Accumulated depreciation Mining plant and equipment - at cost* Less: Accumulated depreciation Construction work in progress - at cost 43 2022 $ 2021 $ 6,609,377 - 187,760,299 5,466,096 2,481,402 25,651,730 4,401,921 195,058,531 6,138,440 1,800,730 202,317,174 233,051,352 2022 $ 2021 $ 751,559 790,250 790,250 (38,691) 751,559 670,958 119,292 790,250 2022 $ 2021 $ 2,143,879 (210,897) 1,932,982 510,047 (407,929) 102,118 364,238 (303,214) 61,024 2,668,934 (19,942) 2,648,992 475,537 (395,400) 80,137 416,752 (288,495) 128,257 45,670,134 (40,462,388) 5,207,746 85,296,843 (38,717,539) 46,579,304 50,299 100,655 7,354,169 49,537,345 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 13. Property, plant and equipment (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Land and buildings $ 2,648,603 - - 455,467 (253,142) - - (201,936) Plant and equipment $ 77,046 59,689 (5,878) - (1,392) - - (49,328) Mining plant and equipment* $ Motor vehicles $ Construction work in progress** $ 65,216 117,898 (3,495) - (5,399) - - (45,963) 45,019,007 3,562,049 (1,022,459) - (317) 60,700 2,505,702 (3,515,183) 352,188 2,254,169 - - - - (2,505,702) - Total $ 48,162,060 5,993,805 (1,031,832) 455,467 (260,250) 60,700 - (3,812,410) - - - (30,195) - (30,195) 2,648,992 - - (491,506) - (224,504) 80,137 70,912 (3,211) (2,479) - (43,241) 128,257 - - (17,261) - (49,972) 46,579,304 2,277,851 (52,288) (921) 83,933 (3,115,884) 100,655 33,577 - - (83,933) - 49,537,345 2,382,340 (55,499) (512,167) - (3,433,601) - - - (40,564,249) - (40,564,249) Balance at 1 July 2020 Additions Disposals Revaluations Exchange differences Transfers from exploration and evaluation (note 15) Transfers in/(out) Depreciation expense Reclassified to plant and equipment - right-of-use - current year (note 14) Balance at 30 June 2021 Additions Disposals Exchange differences Transfers in/(out) Depreciation expense Reclassified capitalised drilling to mine development (note 16) Balance at 30 June 2022 1,932,982 102,118 61,024 5,207,746 50,299 7,354,169 * ** In 2022, a reclassification of $40,564,249 (30 June 2021: $38,286,704) of resource extension relating to drilling expenditure on Raleigh, Rubicon/Hornet and Pegasus from mining property, plant and equipment to mine development. Construction work in progress related to Rubicon/Hornet and Pegasus mines. Valuations of land and buildings On 31 May 2021, the Company revalued its office building in East Legon. The fair value used represents the amount for which the asset could be exchanged between knowledgeable parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition. The valuation was performed by an independent valuation company which is also a member of the Ghana Institute of Surveyors. The directors do not believe that there has been a material movement in fair value since the revaluation date. Refer to note 26 for further information on fair value measurement. Note 14. Right-of-use assets Non-current assets Plant and equipment - right-of-use Less: Accumulated depreciation The Group leases plant and equipment under agreements of between one to three years. 2022 $ 2021 $ 12,719,836 (9,160,225) 12,719,836 (6,765,018) 3,559,611 5,954,818 44 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 14. Right-of-use assets (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Balance at 1 July 2020 Additions Disposals Depreciation expense Reclassified from mining plant and equipment - current year (note 13) Balance at 30 June 2021 Depreciation expense Balance at 30 June 2022 For other AASB 16 and lease related disclosures, refer to the following: ● ● ● ● note 7 for details of interest on lease liabilities and other lease payments; note 18 for lease liabilities at 30 June 2022; note 25 for maturity analysis at 30 June 2022; and consolidated statement of cash flows for repayment of lease liabilities. Note 15. Exploration and evaluation Non-current assets Exploration and evaluation - at cost Plant and equipment - right-of-use $ 9,748,226 261,164 (932,673) (3,152,094) 30,195 5,954,818 (2,395,207) 3,559,611 2022 $ 2021 $ 8,791,986 7,476,542 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Balance at 1 July 2020 Additions Transferred to exploration and evaluation expenses Transferred to mining plant and equipment (note 13) Balance at 30 June 2021 Additions Transferred to exploration and evaluation expenses Balance at 30 June 2022 Exploration and evaluation $ 4,159,222 19,664,516 (16,286,496) (60,700) 7,476,542 8,451,997 (7,136,553) 8,791,986 For the EKJV, full year 2022 drilling focused on resource infill and resource targeting work at Rubicon-Hornet-Pegasus ('RHP') main vein structure, Pode, Hera, as well as resource targeting work for Startrek and Mary Fault (adjacent to RHP). The drilling is to continue converting and replacing Mineral Resource. Underground drilling was also completed at Raleigh UG (Saddler orebody) for resource conversion of the Mineral Resource in line with the LOM schedule. Other exploration and evaluation costs related to infill resource definition drilling at Japa, a diamond hole drilling campaign at Diwalwal and a drilling program at Seven Mile Hill. 45 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 15. Exploration and evaluation (continued) Impairment At each reporting date the Group and the EKJV Manager (where appropriate) undertakes an assessment of the carrying amount of its exploration and evaluation assets. During the year the Group identified indicators of impairment on certain exploration and evaluation assets under AASB 6 'Exploration for and Evaluation of Mineral Resources'. As a result of this review, an impairment loss of $7,136,553 (30 June 2021: $16,286,496) has been recognised in profit or loss in relation to areas of interest where no future exploration and evaluation activities are expected. At 30 June 2022, the EKJV Manager determined that no exploration impairment be recognised and that the capitalised exploration and evaluation balance was considered appropriate. Note 16. Mine development Non-current assets Mine development - at cost Less: Accumulated amortisation 2022 $ 2021 $ 269,860,137 (189,691,214) 217,700,895 (177,150,250) 80,168,923 40,550,645 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Balance at 1 July 2020 Additions Rehabilitation adjustment Impairment of assets Amortisation expense Balance at 30 June 2021 Additions Impairment of assets Amortisation expense Reclassified capitalised drilling from plant and equipment (note 13) Balance at 30 June 2022 Mine development $ 47,824,345 8,184,241 651,207 (5,210,496) (10,898,652) 40,550,645 6,384,498 (31,685) (7,298,784) 40,564,249 80,168,923 Mine development relates to Raleigh underground development, Rubicon development and Pegasus developments and includes $262,343 in mine under construction costs relating to Hornet and Golden Hind open pit permitting compliance and modelling to allow mining to commence. Operations are expected to commence in the 2022 financial year but now have been pushed back to beyond 30 June 2022. Note 17. Trade and other payables Current liabilities Trade payables Accrued expenses Other payables Refer to note 25 for further information on financial instruments. 46 2022 $ 2021 $ 8,879,914 769,051 69,721 12,894,256 1,529,358 2,400 9,718,686 14,426,014 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 18. Lease liabilities Current liabilities Lease liability Non-current liabilities Lease liability Refer to note 25 for further information on financial instruments. Note 19. Provisions Current liabilities Employee benefits Non-current liabilities Rehabilitation 2022 $ 2021 $ 819,640 2,452,104 45,928 863,219 2022 $ 2021 $ 356,973 263,681 1,834,582 1,833,405 Rehabilitation The provision for rehabilitation covers the following East Kundana joint venture ('EKJV') tenements - M15/993, M16/308, M16/309, M16/428 and M24/924. The provision for rehabilitation also covers the following key long-lived assets: ● ● ● ● ● ● ● Pope John - pit abandonment bund; Raleigh - part of pit, waste rock dump, access roads, laydown areas, paste backfill plant and dam, paste sand/tailings stockpile; Rubicon - pit and abandonment bund, waste rock dump, ROM pad, infrastructure (e.g. offices, workshop, fuel facilities), roads; White Foil - evaporation ponds; Kundana water discharge pipeline corridor; Section 4 of Kundana haul road; and Kundana/Moonbeam access road. During the financial year, EKJV management reassessed the rehabilitation cost estimate. No significant adjustments to the underlying cost estimate at 30 June 2022. At 30 June 2022 an adjustment of $651,206 was recognised. Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: 2022 Carrying amount at the start of the year Impact of revision to expected cash flows (net of accretion) Carrying amount at the end of the year Note 20. Contributed equity Rehabilitation $ 1,833,405 1,177 1,834,582 Ordinary shares - fully paid 52,468,077 52,468,077 58,200,026 58,200,026 2022 Shares 2021 Shares 2022 $ 2021 $ 47 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 20. Contributed equity (continued) Ordinary shares Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should the company be wound up in proportions that consider both the number of shares held and the extent to which those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Options The Company has 1,000,000 options on issue. Share buy-back On 15 February 2021, the Company announced it would undertake an on-market buy-back of ordinary shares up to a maximum of 5,246,807 ordinary fully paid shares. The issued capital at the end of the year was 52,468,077 ordinary fully paid shares. Capital risk management The Group's objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated as total borrowings less cash and cash equivalents. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to the current parent entity's share price at the time of the investment. The Group is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies. The capital risk management policy remains unchanged from the 30 June 2021 Annual Report. Note 21. Reserves Revaluation surplus reserve Foreign currency reserve Share-based payments reserve Change in ownership interest reserve 2022 $ 4,548,151 (2,544,412) 13,972 (3,312,684) 2021 $ 4,548,151 (1,888,758) - (3,312,684) (1,294,973) (653,291) Revaluation surplus reserve The reserve is used to recognise increments and decrements in the fair value of land and buildings, excluding investment properties. Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in foreign operations. Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services. Changes in ownership interest reserve This reserve is used to recognise the change in the share of the non-controlling interest. 48 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 21. Reserves (continued) Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below: Balance at 1 July 2020 Revaluation - gross Foreign currency translation Change in ownership interest Balance at 30 June 2021 Foreign currency translation Share-based payments Balance at 30 June 2022 Note 22. Retained profits Retained profits at the beginning of the financial year Profit after income tax expense for the year Dividends paid (note 24) Retained profits at the end of the financial year Note 23. Non-controlling interest Contributed equity Retained profits Note 24. Dividends Dividends Dividends paid during the financial year were as follows: Revaluation surplus $ Foreign currency $ Share-based payments $ 4,092,684 455,467 - - 4,548,151 - - (1,878,368) - (10,390) - (1,888,758) (655,654) - - - - - - - 13,972 Change in ownership interest $ (3,168,381) - - (144,303) (3,312,684) - - Total $ (954,065) 455,467 (10,390) (144,303) (653,291) (655,654) 13,972 4,548,151 (2,544,412) 13,972 (3,312,684) (1,294,973) 2022 $ 2021 $ 200,011,323 1,797,673 (10,493,615) 159,912,541 50,745,314 (10,646,532) 191,315,381 200,011,323 2022 $ 2021 $ 6,236,621 44,456,056 6,236,621 41,808,057 50,692,677 48,044,678 2022 $ 2021 $ A dividend of 20 cents per ordinary share was paid to shareholders on 5 November 2021 (30 June 2021: dividend of 20 cents per ordinary share paid on 24 November 2020). 10,493,615 10,493,615 Other than the above, there were no further dividends recommended or declared during the current financial year. 49 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 24. Dividends (continued) Franking credits Franking credits available for subsequent financial years based on a tax rate of 30% 2022 $ 2021 $ 166,481,971 147,060,105 The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for: ● ● ● franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date franking debits that will arise from the payment of dividends recognised as a liability at the reporting date franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date Note 25. Financial instruments Financial risk management objectives The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk and interest rate risk), credit risk and liquidity risk. The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and other price risks, and ageing analysis for credit risk. Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the Group's operating units. Finance reports to the Board on a monthly basis. Market risk Foreign currency risk The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity's functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. The average exchange rates and reporting date exchange rates applied were as follows: Average exchange rates Reporting date exchange rates 2022 2021 2022 2021 Australian dollars Ghanaian New Cedi 0.2093 0.2305 0.1817 0.2262 The carrying amount of the Group's foreign currency denominated financial assets and financial liabilities at the reporting date were as follows: 2022 $ Assets 2021 $ 2022 $ Liabilities 2021 $ Ghanaian New Cedi 2,180,226 3,123,028 153,504 166,271 The Group had net assets denominated in foreign currencies of $2,026,722 (assets $2,180,226 less liabilities $153,504) as at 30 June 2022 (30 June 2021: $2,956,757 (assets $3,123,028 less liabilities $166,271)). Had the Australian dollar weakened by 60%/strengthened by 60% (30 June 2021: weakened by 60%/strengthened by 60%) against this foreign currency with all other variables held constant, the Group's profit before tax for the year would have been as follows: 2022 Effect on profit before tax AUD strengthened Effect on equity % change Effect on profit before tax % change AUD weakened Effect on equity Ghanaian New Cedi 60% 1,216,033 1,216,033 60% (1,216,033) (1,216,033) 50 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 25. Financial instruments (continued) 2021 Effect on profit before tax AUD strengthened Effect on equity % change Effect on profit before tax % change AUD weakened Effect on equity Ghanaian New Cedi 60% 1,774,054 1,774,054 60% (1,774,054) (1,774,054) The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last year and the spot rate at each reporting date. The actual foreign exchange loss for the year ended 30 June 2022 was $23,060 (30 June 2021: $34,704). Price risk The Group is exposed to equity securities price risks and bullion price risk. This arises from investments held by the Group and classified in the statement of financial position as financial assets at fair value through profit or loss and bullion held as inventory. The policy of the Group is to sell gold at the spot price and has not entered into any hedging contracts. The Group's revenues were exposed to fluctuation in the price of gold. If the average selling price of gold of $2,528.13 (30 June 2021: $2,558.62) for the financial year had increased/decreased by 10% the change in the profit before income tax for the Group would have been an increase /decrease of $1,226,141 (30 June 2021: $625,582). Interest rate risk The Group is not exposed to any significant interest rate risk. The Group's main interest rate risk arises from cash equivalents and loans with variable interest rates. As at the reporting date, the Group had the following amounts outstanding: Cash at bank Deposits at call Net exposure to cash flow interest rate risk Weighted average interest rate % 1.60% 0.49% 2022 Balance $ 6,769,388 50,000 6,819,388 Weighted average interest rate % 0.39% 0.12% 2021 Balance $ 4,102,304 50,000 4,152,304 An official increase/decrease in interest rates of one hundred (30 June 2021: one hundred) basis point would have a favourable/adverse effect on profit before tax of $681,939 (30 June 2021: favourable/adverse effect $415,230) per annum. The basis point change is based on the expected volatility of interest rates using market data and analysts forecasts. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold any collateral. The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning. These provisions are considered representative across all customers of the Group based on recent sales experience, historical collection rates and forward-looking information that is available. The Group has a credit risk exposure with the carrying amount of trade receivables. For some receivables the Group obtains agreements which can be called upon if the counterparty is in default under the terms of the agreement. The credit rating of cash required to obtain credit is AA. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. Liquidity risk Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable. 51 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 25. Financial instruments (continued) The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Remaining contractual maturities The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. Weighted average interest rate % 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ - - 8,879,914 69,721 - - 2.79% 827,760 9,777,395 46,458 46,458 - - - - - - - - Weighted average interest rate % 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ Remaining contractual maturities $ 8,879,914 69,721 874,218 9,823,853 Remaining contractual maturities $ - - 12,894,256 2,400 - - - - 2.79% 2,510,974 15,407,630 825,415 825,415 46,458 46,458 - - - - 12,894,256 2,400 3,382,847 16,279,503 2022 Non-derivatives Non-interest bearing Trade payables Other payables Interest-bearing - fixed rate Lease liability Total non-derivatives 2021 Non-derivatives Non-interest bearing Trade payables Other payables Interest-bearing - fixed rate Lease liability Total non-derivatives Note 26. Fair value measurement Fair value hierarchy The following tables detail the Group's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability 2022 Assets Listed securities - equity Land and buildings Total assets Level 1 $ Level 2 $ Level 3 $ Total $ 751,559 - 751,559 - - - - 1,932,982 1,932,982 751,559 1,932,982 2,684,541 52 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 26. Fair value measurement (continued) 2021 Assets Listed securities - equity Land and buildings Total assets Level 1 $ Level 2 $ Level 3 $ Total $ 790,250 - 790,250 - - - - 2,648,992 2,648,992 790,250 2,648,992 3,439,242 There were no transfers between levels during the financial year. Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments. Valuation techniques for fair value measurements categorised within level 2 and level 3 On 31 May 2021, the Company revalued its office building in East Legon. The fair value used represents the amount for which the asset could be exchanged between knowledgeable parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition. The valuation was performed by an independent valuation company which is also a member of the Ghana Institute of Surveyors. The directors do not believe that there has been a material movement in fair value since the revaluation date. Level 3 assets and liabilities Movements in level 3 assets and liabilities during the current and previous financial year are set out below: Balance at 1 July 2020 Gains recognised in other comprehensive income Exchange differences Depreciation Balance at 30 June 2021 Exchange differences Depreciation Balance at 30 June 2022 Note 27. Key management personnel disclosures Land and buildings $ 2,648,603 455,467 (253,142) (201,936) 2,648,992 (491,506) (224,504) 1,932,982 Compensation The aggregate compensation made to directors and other members of key management personnel of the Group is set out below: Short-term employee benefits Post-employment benefits 2022 $ 328,253 26,337 354,590 2021 $ 756,234 25,021 781,255 53 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 28. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by RSM Australia Partners, the auditor of the Company, and unrelated firms: Audit services - RSM Australia Partners Audit or review of the financial statements Other services - RSM Australia Partners Tax compliance services Other compliance services Other services - unrelated firms Audit or review of the financial statements - PKF Audit or review of the financial statements - SCG Audits Audit or review of the financial statements (EKJV) - Deloitte Audit or review of the financial statements (EKJV) - PricewaterhouseCoopers Tax compliance services - SGC Ghana Tax compliance services - PricewaterhouseCoopers Ghana 2022 $ 2021 $ 149,500 143,500 110,723 - 110,723 260,223 75,500 22,689 - 24,255 - 120,697 243,141 126,921 23,000 149,921 293,421 80,000 26,477 18,865 - 33,075 240,717 399,134 Note 29. Contingent liabilities Native title claims have been made with respect to areas which include tenements in which the Group has interests. The Group is unable to determine the prospects for success or otherwise of the claims and, in any event, whether or not and to what extent the claims may significantly affect the Group or its projects. Note 30. Commitments 2022 $ 2021 $ 166,983 - 9,213 12,636,339 1,086,857 4,096,218 1,048,853 3,146,656 5,183,075 4,195,509 Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment Payments under the Pacominco Investment Agreement Lease commitments - tenements rent and rates Committed at the reporting date but not recognised as liabilities, payable: Within one year One to five years Capital commitments relate to mining capital expenditure commitments relating to the East Kundana joint venture. Note 31. Related party transactions Parent entity Tribune Resources Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 33. 54 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 31. Related party transactions (continued) Associates Interests in associates are set out in note 34. Joint operations Interests in joint operations are set out in note 35. Key management personnel Disclosures relating to key management personnel are set out in note 27 and the remuneration report included in the directors' report. Transactions with related parties The following transactions occurred with related parties: Payment for other expenses: Payment for exploration expenses for Lake Grace Exploration Pty Ltd * Payment of rent, rates and levies to Melville Parade Pty Ltd* Reimbursement of operating expenses to Iron Resources Liberia Ltd* * An entity in which Anthony Billis is a director Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Amounts to/from related parties There were no loans to or from related parties at the current and previous reporting date. Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates. Note 32. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Profit/(loss) after income tax Total comprehensive income 2022 $ 2021 $ 6,275 186,851 446,326 - 40,897 394,233 2022 $ Parent 2021 $ (325,250) 47,535,551 (325,250) 47,535,551 55 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 32. Parent entity information (continued) Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Contributed equity Share-based payments reserve Retained profits Total equity 2022 $ Parent 2021 $ 143,210,911 165,408,301 259,572,685 283,788,753 7,981,682 21,980,643 23,199,229 36,610,404 17,469,165 13,972 218,890,319 17,469,165 - 229,709,184 236,373,456 247,178,349 Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2022 and 30 June 2021. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021. other than what is disclosed in note 29. Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Property, plant and equipment, as budgeted by the EKJV and payable in the next 5 years 2022 $ Parent 2021 $ 125,237 6,910 Significant accounting policies The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note 2, except for the following: ● ● ● Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. Investments in associates are accounted for at cost, less any impairment, in the parent entity. Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment. 56 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 33. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Name Rand Mining Limited Rand Exploration N.L. (ii) Mount Manning Resources Pty Ltd (iii) Tribune Resources (Ghana) Limited Fort Accra Ltd (iv) West African Drilling Ghana Ltd (iv) (v) Prometheus Management Corporation (i) Prometheus Developments Pte Ltd Tribune Resources Ghana Gold Ltd (iv) (vi) Principal place of business / Country of incorporation Australia Australia Australia Ghana Ghana Ghana Philippines Singapore British Virgin Isiands Ownership interest 2021 % 2022 % 46.73% 46.73% 100.00% 100.00% 100.00% - 100.00% 100.00% 100.00% 46.73% 46.73% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% - 100% owned subsidiary of Prometheus Developments Pte Ltd (i) 100% owned subsidiary of Rand Mining Limited (ii) (iii) 50% owned subsidiary of Rand Mining Limited (iv) 100% owned subsidiary of Tribune Resources (Ghana) Limited (v) (vi) Entity incorporated on 14 April 2022 Entity de-registered on 12 January 2022 57 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 33. Interests in subsidiaries (continued) Summarised financial information Summarised financial information of the subsidiary with non-controlling interests that are material to the Group are set out below: Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets Summarised statement of profit or loss and other comprehensive income Revenue Expenses Profit before income tax expense Income tax expense Profit after income tax expense Other comprehensive income Total comprehensive income Statement of cash flows Net cash from operating activities Net cash used in investing activities Net cash used in financing activities Net increase/(decrease) in cash and cash equivalents Other financial information Profit attributable to non-controlling interests Note 34. Interests in associates Rand Mining Limited 2022 2021 $ $ 77,301,774 27,365,926 73,489,828 27,965,573 104,667,700 101,455,401 4,443,495 5,066,725 6,384,588 4,884,009 9,510,220 11,268,597 95,157,480 90,186,804 32,088,399 (16,661,442) 43,320,962 (21,170,504) 15,426,957 (4,768,685) 22,150,458 (6,948,946) 10,658,272 15,201,512 - - 10,658,272 15,201,512 11,105,176 (4,018,131) (6,278,708) 12,639,094 (4,801,566) (12,115,381) 808,337 (4,277,853) 5,677,919 8,098,212 Interests in associates are accounted for using the equity method of accounting. Information relating to associates that are material to the Group are set out below: Name Principal place of business / Country of incorporation Paraiso Consolidated Mining Corporation Philippines Ownership interest 2021 % 2022 % 40.00% 40.00% 58 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 34. Interests in associates (continued) Summarised financial information Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net liabilities Summarised statement of profit or loss and other comprehensive income Revenue Expenses Loss before income tax Other comprehensive income Total comprehensive income Note 35. Interests in joint operations Paraiso Consolidated Mining Corporation 2021 $ 2022 $ 76,465 74,317 183,045 142,801 150,782 325,846 149,861 20,636,079 163,011 19,611,395 20,785,940 19,774,406 (20,635,158) (19,448,560) 8 (1,325,764) 8,141 (4,734,903) (1,325,756) (4,726,762) (539,596) (1,213,724) (1,865,352) (5,940,486) The Group has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial statements under the appropriate classifications. Information relating to joint operations that are material to the Group are set out below: Name Principal place of business / Country of incorporation East Kundana Joint Venture Australia Ownership interest 2021 % 2022 % 49.00% 49.00% 59 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 36. Cash flow information Reconciliation of profit after income tax to net cash from operating activities Profit after income tax expense for the year Adjustments for: Depreciation and amortisation Net loss/(gain) on disposal of property, plant and equipment Share-based payments Foreign exchange differences Non-operating right-of-use Non-operating payables Unwind of discount Gain on financial assets Impairment of mine development Impairment of financial assets Impairment of exploration and evaluation Other Change in operating assets and liabilities: Decrease in trade and other receivables Decrease/(increase) in inventories Decrease/(increase) in deferred tax assets Decrease in trade and other payables Increase/(decrease) in provision for income tax Increase/(decrease) in deferred tax liabilities Increase in employee benefits Increase in other provisions Net cash from operating activities Non-cash investing and financing activities Additions to the right-of-use assets Changes in liabilities arising from financing activities Balance at 1 July 2020 Net cash used in financing activities Acquisition of leases Other changes Balance at 30 June 2021 Net cash used in financing activities Balance at 30 June 2022 60 2022 $ 2021 $ 7,475,592 58,843,526 13,127,596 (80,544) 13,972 - (85,307) - 1,176 - 31,683 38,691 7,136,553 (132,980) 1,061,102 30,734,178 2,239,958 (2,606,611) (20,270,805) (963,300) 93,292 1,176 17,863,156 543,309 - 10,390 (108,716) (459,656) 10,196 (119,291) 5,210,496 - 16,286,496 699,866 159,329 (63,192,099) (2,093,105) (275,528) 5,666,002 4,589,287 81,971 661,403 37,815,422 44,377,032 2022 $ - 2021 $ 261,164 Lease liability $ 7,560,117 (4,562,155) 261,164 56,197 3,315,323 (2,449,755) 865,568 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 37. Earnings per share Profit after income tax Non-controlling interest Profit after income tax attributable to the owners of Tribune Resources Limited Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings per share Diluted earnings per share Note 38. Share-based payments 2022 $ 2021 $ 7,475,592 (5,677,919) 58,843,526 (8,098,212) 1,797,673 50,745,314 Number Number 52,468,077 52,468,077 1,000,000 - 53,468,077 52,468,077 Cents 3.43 3.36 Cents 96.72 96.72 Employee Incentive Plan A share option plan ('Plan') has been established by the Group and approved by shareholders at the 26 November 2021 annual general meeting, whereby the Group may, at the discretion of the Board, grant options over ordinary shares in the parent entity to certain eligible personnel of the Group. The options are issued for nil consideration and are granted in accordance with performance guidelines established by the Board. Set out below are summaries of options granted under the plan: 2022 Grant date Expiry date 31/05/2022 31/05/2025 Exercise price $6.00 Balance at the start of the year Granted Exercised Expired/ forfeited/ other Balance at the end of the year - - 1,000,000 1,000,000 - - - - 1,000,000 1,000,000 Weighted average exercise price $0.00 $6.00 $0.00 $0.00 $6.00 The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.92 years. For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: Grant date Expiry date Share price at grant date Exercise price Expected volatility Dividend yield Risk-free interest rate Fair value at grant date 31/05/2022 31/05/2025 $4.10 $6.00 40.00% 4.88% 2.78% $0.478 Share-based payments expense recognised in profit or loss Share-based payments expense 2022 $ 13,972 2021 $ - 61 Tribune Resources Limited Notes to the consolidated financial statements 30 June 2022 Note 39. Events after the reporting period The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the Group up to date, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. 62 Tribune Resources Limited Directors' declaration 30 June 2022 In the directors' opinion: ● ● ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements; the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2022 and of its performance for the financial year ended on that date; and ● there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Anthony Billis Director 29 September 2022 Perth 63 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TRIBUNE RESOURCES LIMITED Opinion We have audited the financial report of Tribune Resources Limited (the Company) and its subsidiaries (the Group), which comprises the statement of financial position as at 30 June 2022, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group's financial position as at 30 June 2022 and of its financial performance for the year then ended; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 64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 Mine Development Refer to Note 16 in the financial statements How our audit addressed this matter The Group has mine development assets with a carrying value of $80,168,923 as at 30 June 2022. Our audit procedures included: We considered this to be a key audit matter due to significant to determine the appropriate carrying value at the reporting date. The significant judgements include: judgments made by management • Application of the units of production method in determining the amortisation charge for the year. This included determining the appropriate ore reserve estimate and the cost allocation attributable to each mine development asset; and • Assessing whether any impairment indicators existed at the reporting date in relation to the mine development. Inventories Refer to Note 11 in the financial statements As at 30 June 2022, the Group’s inventories are mainly comprised of: - - - gold bullion of $187,760,299; silver of $5,466,096; and ore stockpiles of $6,609,377. We considered this to be a key audit matter as it is the most significant item on statement of financial position to and determine the appropriate carrying value at the reporting date. The significant judgements include: judgments made by management the to key inputs testing • Assessing the Group’s accounting policy for compliance with Australian Accounting Standards; • Assessing management’s amortisation models supporting and documentation. This included an assessment of the work performed by the management’s expert in respect of the ore reserve estimate, including the competency and objectivity of the expert; • Testing a sample of additions to supporting documentation and ensuring the amounts capitalised during the year are in compliance with the Group’s accounting policy; • Critically assessing and evaluating management’s indicators and impairment assessment of conclusion reached; • Testing the mathematical accuracy of the rates applied for amortisation; and • Assessing the appropriateness of disclosure in the financial statements. Our audit procedures included: • Assessing the Group’s accounting policy for compliance with Australian Accounting Standards; • Assessing the methodology and key assumptions in the Group’s inventory costing model and agreeing key inputs to supporting documentation. This the work performed by management’s expert in respect of the ore stockpiles quantity, the competency and objectivity of the expert; included an assessment of including • Valuation of inventories is based on an inventory costing model developed by management, which considers the direct costs (cash and non-cash) incurred at each stage of the production process; • Estimation of the quantity of ore stockpiles based on survey reports produced by a management expert; • Estimation of the processing costs of the ore stockpiles; and • Estimation of the gold quantity contained in the ore stockpiles. • Obtaining third party confirmation on existence of gold bullion and silver on hand; • Critically assessing and evaluating management’s assessment of net realisable value; • Performing analytical review on cost per ton and obtaining an explanation from management for any significant variance; and • Assessing the appropriateness of disclosure in the financial statements. 65Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2022, but does not include the financial report and the auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our auditor's report. 66Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors' report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Tribune Resources Limited, for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. RSM AUSTRALIA PARTNERS Perth, WA Dated: 29 September 2022 AIK KONG TING Partner 67Tribune Resources Limited Shareholder information 30 June 2022 The shareholder information set out below was applicable as at 14 September 2022. Distribution of equitable securities Analysis of number of equitable security holders by size of holding: 1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over Holding less than a marketable parcel Equity security holders Twenty largest quoted equity security holders The names of the twenty largest security holders of quoted equity securities are listed below: EVOLUTION MINING LIMITED TRANS GLOBAL CAPITAL LTD SIERRA GOLD LTD MARFORD GROUP PTY LTD HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMS PTY LTD (DRP) BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM HAVANNAH INVESTMENTS PTY LTD RAYPOINT PTY LTD CITICORP NOMINEES PTY LIMITED CARSTOWE HOLDINGS PTE LTD BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT DRP) HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 BOND STREET CUSTODIANS LIMITED (GARYHA - D81497 A/C) NERO RESOURCE FUND PTY LTD (NERO RESOURCE FUND A/C) MR MARK DAVID DELROY DALY SF PTY LTD (DALY SUPER A/C) MR SHANE COLIN MARDON MRS JASMINE FRANCES GREEN HALKIN PTY LTD (WYNNE SUPER FUND A/C) Unquoted equity securities Options over ordinary shares issued 68 Ordinary shares % of total shares issued Number of holders 364 402 105 163 44 0.27 1.98 1.55 8.83 87.37 1,078 100.00 118 0.01 Ordinary shares % of total shares issued Number held 11,045,101 8,454,000 8,020,000 2,267,781 1,886,621 1,686,717 1,551,241 942,261 850,000 840,805 790,057 763,502 763,027 480,000 350,875 324,173 300,000 300,000 300,000 255,290 42,171,451 21.05 16.11 15.29 4.32 3.60 3.21 2.96 1.80 1.62 1.60 1.51 1.46 1.45 0.91 0.67 0.62 0.57 0.57 0.57 0.49 80.38 Number on issue Number of holders 1,000,000 6 Tribune Resources Limited Shareholder information 30 June 2022 Substantial holders The names of the substantial shareholders disclosed to the Company as substantial shareholders at 14 September 2022 are: Anton Billis and Related Parties Sierra Gold Ltd Evolution Mining Limited Trans Global Capital Limited Ordinary shares % of total shares issued Number held 17,091,136 17,091,136 11,045,101 8,454,000 32.57 32.57 21.05 16.11 On-market buy-back On 15 February 2021, the Company announced it would undertake an on-market buy-back of ordinary shares up to a maximum of 5,246,807 ordinary fully paid shares. The Group announced an extension to the on market buy-back on 1 February 2022. The buy-back up to a maximum of 5,246,807 shares was extended to 21 February 2023. During the year, no shares were bought-back. Voting rights The voting rights attached to ordinary shares are set out below: Ordinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. There are no other classes of equity securities. 69 Tribune Resources Limited Shareholder information 30 June 2022 Tenements Description Western Australia, Australia Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana Kundana West Kundana West Kundana West Kundana West Kundana Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill Seven Mile Hill West Kimberly*** Red Lake 1*** Red Lake 2*** Red Lake 3*** Blue Dam*** Yikari*** Yikari*** Ghana, West Africa Japa Concession. Mindanao, Philippines Diwalwal Gold Project Diwalwal Gold Project Diwalwal Gold Project Tenement number Interest owned* % M15/1413 M15/993 M16/181 M16/182 M16/308 M16/309 M16/325 M16/326 M16/421 M16/924 M16/428 M24/924 M16/213 M16/214 M16/218 M16/310 M26/563 M15/1233 M15/1234 M15/1291 M15/1388 M15/1394 M15/1409 M15/1743 P26/4173 P15/6370 P15/6433 P15/6434 E15/1664 E04/2548 P15/6398 P15/6399 P15/6400 P15/6401 P26/4476 P26/4477 729 Area*** 452 Area*** Upper Ulip Area*** 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00 24.50 24.50 24.50 24.50 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 40.00 40.00 40.00 Includes Rand Mining Ltd’s, Rand Exploration NL’s and Prometheus Developments Pte Ltd where applicable. Under application. * ** *** Prometheus has entered an Investment Agreement with Paraiso Consolidated Mining Corporation ('Pacominco') and a Joint Venture agreement with JB Management Mining Corporation ('JB Management' or 'JBMMC'). These agreements allow Prometheus to acquire an 80% economic interest and 40% legal interest in three mining tenements covering the Diwalwal Gold Project. Through the JB Management Joint Venture Agreement, Tribune Resources Ltd (via its 100% owned subsidiary Prometheus Developments Pte Ltd) is earning a 40% legal interest and 80% economic interest in the 452 Area. To date Prometheus Developments is yet to earn any legal or economic interest in this JV as the JV company is yet to be incorporated. 70 

Continue reading text version or see original annual report in PDF format above