More annual reports from Viking Mines Limited:
2023 ReportPeers and competitors of Viking Mines Limited:
Guyana Goldfields Inc.2023
Annual Report
Year ending 30 June 2023
ASX:VKA
ABN 38 126 200 280
Corporate
Directory
Directors
Auditor
Mr Charles Thomas - Non-Executive Chairman
BDO Audit (WA) Pty Ltd
Mr Julian Woodcock - Managing Director and CEO
Mr Michael Cox - Non-Executive Director
Level 9, Mia Yellagonga Tower 2, 5 Spring Street, Perth
WA 6000
Registered Office and Principal
Place of Business
Solicitors
Hamilton Locke
15-17 Old Aberdeen Place, West Perth WA 6005
Level 48 152-158 St Georges Terrace, Perth WA 6000
Telephone: +61 8 6245 0870
Share Register
Automic Pty Ltd
Stock Exchange Listing
Viking Mines Limited shares are listed on the Australian
Securities Exchange (ASX: VKA)
Level 5, 191 St Georges Terrace, Perth WA 6000
Telephone: 1300 288 664 (within Australia)
Telephone: +61 2 9698 5414 (outside Australia)
Website
www.vikingmines.com
Email: hello@automic.com.au
Corporate Governance Statement
The Corporate Governance Statement can be found on
the Company's website:
www.vikingmines.com/corporate-governance
Contents
Chairman’s Letter
Review of Operations
Directors' Report
Auditor's Independence Declaration
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors Declaration
Independent Auditor's Report to the
Members of Viking Mines Limited
Annual Mineral Resource and Ore Reserves Statement
Shareholder Information
Tenement Schedule
2
3
17
29
31
32
33
34
35
52
53
57
58
61
Chairman’s
Letter
Dear Viking Mines shareholders,
It is with great pleasure that I present the 2023 Annual Report for Viking Mines
Limited (ASX: VKA) (Viking or the Company).
The Company had a successful year following
the signing of a binding agreement to earn
up to 99% of the Canegrass Battery Minerals
Project (Canegrass or the Project) located in
the Murchison Region of Western Australia. The
Project represents a value accretive transaction
for the Company and its shareholders to invest
in an established project with a substantial
Mineral Resource Estimate already defined.
Following the announcement of the Farm-
in agreement in November of last year, the
Company has spent the remainder of the year
advancing exploration activities to verify the
current Inferred Mineral Resource Estimate of
79Mt at 0.64% V2O5, 29.7% Fe and 6.0% TiO2 and
to test for extensions.
Viking completed a number of predrilling
exploration activities, which included multiple
field visits to map the outcropping Vanadiferous
Titanomagnetite and to take rock chip samples
for analysis. The Company also completed a
ground magnetic survey, which covered the 9km
strike length of VTM horizon. The purpose of
these exploration activities was to determine an
Exploration Target Estimate in the lead up to the
drilling campaign.
Once heritage survey clearance was completed
Viking commenced an extensive 7,500m drilling
campaign which, subsequent to the reporting,
period has returned shallow, thick and high-
grade vanadium mineralisation across the
project area. Importantly, results from the Kinks
South target sit outside of the current Mineral
Resource Estimate, providing an excellent
opportunity to grow this already substantial
Resource.
It has been extremely pleasing as Chairman
to witness the Company’s progress over the
year. Your continued support throughout the
2023 Financial Year is greatly appreciated, and
I strongly believe the Company will be able to
increase value for its shareholders in the year
ahead. I would also like to thank my fellow
Directors for their contribution during the
past year.
Yours Sincerely,
Charles Thomas
Non-Executive Chairman
2 | VIKING MI NE S LTD
Review of
Operations
The 2023 Financial Year was a
significant year for the Company as
it refocussed its strategy and entered
into a binding agreement to earn up to
99% of the Canegrass Battery Minerals
Project (Canegrass or the Project), with
a primary commodity of vanadium.
The Project already has a defined inferred JORC
(2012) Inferred Mineral Resource Estimate (MRE)
of 79Mt at 0.64% V2O5, 29.7% Fe and 6.0% TiO2.
Following a thorough due diligence process,
it was determined that there is a substantial
exploration potential to discover and define
additional resources outside the current limits
of the estimated MRE.
The focus for the Company for the remainder
for the second half of the financial year was
to advance exploration activities across the
Canegrass Battery Minerals Project.
2023 ANNUAL RE P ORT | 3
Canegrass Battery
Minerals Project
The Company announced on 30 November 2022
the successful signing of a binding agreement
between Viking Critical Minerals Pty Ltd, a
wholly owned subsidiary of Viking Mines Ltd,
and Flinders Canegrass Pty Ltd, a wholly owned
subsidiary of Red Hawk Mining Ltd (ASX:RHK)
(formerly Flinders Mines Ltd (ASX:FMS)).
Under the terms of the agreement, Viking
can earn up to 99% of the Canegrass Battery
Minerals Project (“Canegrass Project”) via a
Farm-In Arrangement (“FIA“), with the remaining
1% attainable with milestone and production
related payments. The Project is located in
the Murchison Region, 620km north-east of
Perth, Western Australia and 60km SE from the
township of Mt Magnet.
The Canegrass Projects’ primary commodity
is Vanadium (as Vanadium Pentoxide – V2O5)
and contains a substantial JORC (2012) Inferred
Resource of 79Mt at 0.64% V2O5 (Table 1). Nickel,
Copper and Cobalt are reported within the
drilling data which has not previously been
estimated into the MRE and will be assessed
and investigated by Viking for its potential.
Table 1 – Canegrass Project Vanadium Mineral Resource estimate, 0.5% V2O5 cut-off grade, >210m RL (due to the
effects of rounding, the total may not represent the sum of all components
Deposit
JORC
Classification
Tonnage
(Mt)
V2O5 %
Fe %
TiO2 % Al2O3 %
P %
SiO2 % LOI %
Fold Nose
Inferred
Kinks
Inferred
Total
59
20
79
0.66
30.5
6.5
11.9
0.006
22.9
2.9
0.57
27.4
5.5
13.0
0.009
25.9
3.1
0.64
29.7
6.0
12.2
0.007
23.6
3.0
Field Visit – Farm-In Due Diligence
The Company announced on 5 January 2023, that it had successfully completed the 30-day Due
Diligence to its satisfaction, a condition precedent to the FIA2.
As part of the Due Diligence process, Viking undertook a 5-day field visit to the Project.
The field visit identified outcropping VTM units at the locations with historical rock chip samples over
a strike length of 8km (Figure 1) at the Project which have been shown to contain high grade V2O5 up to
1.7%3. These results indicated that only a small portion of the prospective horizon had been effectively
explored and that substantial upside remains to grow the Resource.
1 ASX Announcement Viking Mines (ASX: VKA) 30 November 2022 – Viking to Farm-in to Substantial Battery Mineral Resource
2 ASX Announcement Viking Mines (ASX: VKA ) 5 January 2023 – VKA Confirms 8km Trend of VTM Outcrop & Commences Farm-In
4 | VIKING M INE S LT D
4 | VIKING M INE S LT D
Initial Drilling Campaign
The Company successfully and safely completed an initial Reverse Circulation (RC) drill program
totalling 6 holes for 543m at Canegrass. Significantly, 17m of massive magnetite VTM mineralisation
was intersected at the estimated target depth in hole VCRC0006 along with multiple magnetite
bearing horizons in hole VCRC00053.
Assays received by the Company confirmed thick, high grade Vanadium rich zones at the interpreted
target depths in hole VCRC00063
•
•
17m at 0.98% V2O5 from 89m, including 12m at 1.06% V 2O5 from 91m
19m at 0.61% V2O5 from 52m, including 6m at 0.88% V 2O5 from 65m
Furthermore, substantial elevated copper, nickel and cobalt values were identified within the hole.
Significant intercepts of these additional battery metals include:
•
•
17m at 590ppm Cu, 814ppm Ni and 190ppm Co from 89m
12m at 1281ppm Cu, 766ppm Ni and 122ppm Co from 65m including;
• 6m at 0.20% Cu from 70m with a Peak copper value of 0.31% Cu
Figure 1 – Cross section through Kinks South target showing drilling results in hole VCRC0006 and projected target
zones.
Ground Magnetics Survey
The Company engaged geophysical consultants, Planetary Geophysics Pty Ltd, to undertake a 16km2
ground magnetic survey at Canegrass.
Significant improvements in the resolution of the magnetic anomaly maps has been achieved when
comparing the previous airborne data to the new ground magnetics data. This improvement is due
to the higher sampling frequency occurring along the lines walked during the data collection and the
magnetic sensor being closer to the ground, as opposed to the older open-source data, which was
collected using an airborne survey flying ~20m above the surface.
Subsequent processing of the data was completed to produce a magnetic inversion model which was
utilised in the planning and targeting the magnetite horizons at Canegrass4.
3 ASX Announcement Viking Mines (ASX: VKA) 20 March 2023 – Viking Drills 17m of Massive Vanadiferous Titanomagnetite
4 ASX Announcement Viking Mines (ASX:VKA) 21 February 2023 – Viking Commences Ground Magnetics Survey at Canegrass
2023 ANNUAL REP ORT | 5
Review of Operations Figure 2: Comparison images showing improvement in resolution of magnetics data achieved through collection
of Ground Magnetics at the Canegrass Project. Top image (A) is composite image of opensource magnetics data
collected at 40m spacings and 20m fly height. Bottom image (B) is ground magnetics data collected on variable 20m
and 40m line spacings and ~3m collection height, merged with opensource data. Both images are presented as Total
Magnetic Intensity, Reduced to Pole (TMI-RTP) (ASX Announcement 5 April 2023).
6 | VIKING M INE S LT D
Review of Operations Exploration Target Estimate:
The Company completed an Exploration Target Estimate (“ETE”) for the Canegrass Project
by consolidating the data obtained through field mapping, geophysical modelling and drilling
observations. The ETE has been completed across six contiguous target areas across the Project as
shown in Figure 3. The ETE is located outside of the existing extent of the Mineral Resource Estimate
(refer to Figure 3). A summary of the respective targets is given below in Table 1. The total ETE is
calculated to be in the range of:
144Mt to 192Mt at 0.45% to 0.99% V2O5 for 1.44 to 4.19 Billion Pounds V2O5
5
The potential quantity and grade of mineralisation of the ETE at the Canegrass
Project is conceptual in nature, there has been insufficient exploration to
estimate a Mineral Resource and it is uncertain if further exploration will
confirm the target ranges.
The ETE has been generated by following a process to determine potential ranges of tonnes and
grades at a series of exploration targets, with the calculations used by the Company to direct
the strategy to drill test targets at the Project. The following sections outline the process used to
derive the ETE.
Table 2 – Summary of Exploration Target Estimate by Target Area
Exploration Target
Estimate Area
Million Tonnes
Grade V2O5 %
Billion Pounds V2O5
Lower
(SG 3)
Upper
(SG4)
Lower
Upper
Lower
Upper
Fold Nose South Extension
52.8
Fold Nose North Extension
11.2
Fold Nose to Kinks South
Kinks South
Kinks West Extension
26.9
23.1
1.7
70.3
15.0
0.43%
1.07%
0.50
1.66
0.43%
1.07%
0.11
0.35
35.8
0.45%
1.06%
0.26
0.83
30.8
0.46%
1.04%
0.24
0.71
2.2
0.57%
0.88%
0.02
0.04
Kinks North Extension
28.4
37.8
0.50%
0.71%
0.32
0.59
Total
144.0
192.0
0.45%
0.99%
1.44
4.19
5 ASX Announcement Viking Mines (ASX:VKA) 14 June 2023 – VKA Defines Substantial Upside Growth Potential at Canegrass
2023 ANNUAL REP ORT | 7
Review of Operations Figure 3 – Map showing the targets which comprise the Exploration Target Estimate and the respective
estimate ranges. Note planned drilling which is underway at the project is shown as white triangles and all
historical drilling as indicated by the legend (refer ASX announcement 14 June 2023).
Major 7,500m Drilling Programme
At the end of the financial year, the Company commenced with and subsequently completed a major
drill programme at the Canegrass Battery Minerals Project, comprised of ~44 Reverse Circulation (RC)
drillholes, totalling ~7,500m. The drill programme had two main objectives.
1. To improve the confidence in the current Mineral Resource Estimate (MRE) by drill testing within the
existing Inferred (JORC 2012) MRE limits of 79Mt at 0.64% V2O5
geological interpretation.
1 to validate and improve the existing
2. To grow the Mineral Resource base through discovery of new Vanadiferous Titanomagnetite (VTM)
mineralisation by drill testing targets outside of the limits of the current MRE.
Subsequent to the reporting period the Company received results from the Kinks south target and the
Kinks deposit confirming substantial zones of high-grade vanadium mineralisation.
8 | VIKING M INE S LTD
Review of Operations Figure 4 – Drill Rig at the Canegrass
Battery Minerals Project
Kinks South Target
Drilling at the Kinks South target has returned multiple and consistent, thick zones of vanadium
mineralisation (reported as V2O5) along a 1.5km strike length.
The Kinks South target does not form part of the current MRE and presents a substantial opportunity
for the Company to grow the mineral resource base, specifically targeting a high-grade component
>30Mt >0.9% V2O5. Significant intercepts include:6
• VCRC0011:
38m at 0.76% V2O5 (>0.5%) from
114m, including:
15m at 0.95% V2O5 (>0.8%) from
118m &
7m at 0.98% V2O5 (>0.8%) from
145m
15m at 0.72% V2O5 (>0.5%) from
160m, including:
10m at 0.92% V2O5 (>0.8%) from
165m
• VCRC0007: 46m at 0.55% V2O5 (>0.5%) from
68m, including:
12m at 0.82% V2O5 (>0.8%) from
88m
• VCRC0008: 16m at 0.57% V2O5 (>0.5%) from
110m, including:
12m at 1.02% V2O5 (>0.8%) from
110m
• VCRC0010: 34m at 0.57% V2O5 (>0.5%) from
43m, including:
12m at 0.96% V2O5 (>0.8%) from
61m
6 ASX Announcement Viking Mines (ASX: VKA) 21 August 2023 – Viking Discovers Extensive Vanadium System at Kinks South
2023 ANNUAL REP ORT | 9
Figure 5 – Map of the Kinks South target area showing V2O5 assay results from Vikings 2023 drilling programmes.
Intercepts are reported above a 0.5% V2O5 cut-off, with included intercepts (where reported) >0.8% V2O5 cut-
off. Composite intercepts have been derived for zones>6m width, reporting above minimum cut-off grade and
a maximum of 6m consecutive internal waste zones. Intervals reported are downhole lengths and the true
widths are not known. VCRC0006 previously reported in ASX release 18 April 2023.
Elevated values of Cu, Ni and Co have been
intersected, with Cu being the most significant
throughout the results received. Copper
mineralisation is directly associated with the
VTM mineralisation, but also extends below
and above the target horizons.
Further work is required to understand the
significance of the Copper mineralisation
and association with the VTM mineralisation,
however the Company is encouraged as the
presence of these highly anomalous values
indicates significant copper is present in the
mineralised system and leads to the potential
for further enriched zones to be identified.
Whilst not the primary commodity of focus for
the Project, if sufficient Cu, Ni and Co reports
to the tail in the magnetic concentrate process,
a sulphide flotation could potentially be
undertaken to recover these additional minerals
to the benefit of the Project. This process route
will be further investigated by the Company.
• VCRC0010: 56m at 0.14% Cu, 640ppm Ni &
123ppm Co from 52m
• VCRC0012: 37m at 0.10% Cu, 827ppm Ni &
162ppm Co from 99m
• VCRC0018: 18m at 0.12% Cu, 812ppm Ni &
178ppm Co from 12m
Kinks South Target
The completed drilling included seven holes at
the Kinks MRE target area for 1,099m, testing the
higher-grade western and lower-grade eastern
blocks within the Kinks MRE target area. The
drilling had two primary objectives:
1. Test for continuity of the target Vanadiferous
Titanomagnetite (VTM) horizon in the >0.6km
long western block of the MRE, identified
in outcrop mapping and seen in historical
high-grade drillholes (not yet used to update
the MRE) with the objective of extending the
mineralised horizons to surface and to the
west of the current MRE limits into the Kinks
West Extension Exploration Target Estimate
(ETE) area.
10 | VIKING M INE S LTD
Review of Operations 2. Test the continuity of the VTM in the
>0.8km strike lower grade eastern block
and determine the style and grade of
mineralisation to the east of the interpreted
fault that bisects the deposit and identify
any marker horizons that may assist in
the interpretation of the geology and
mineralised offsets as a result of the
faulting observed.
Significant Vanadium Pentoxide (V2O5)
intercepts from the program include:7
• VCRC0021:
• VCRC0019:
• VCRC0020:
40m at 0.75% V2O5 (>0.5%) from
202m, including:
27m at 0.83% V2O5 (>0.8%) from
203m
38m at 0.70% V2O5 (>0.5%) from
96m, including:
15m at 0.86% V2O5 (>0.8%) from
101m
12m at 0.66% V2O5 (>0.5%) from
51m, including:
6m at 0.86% V2O5 (>0.8%) from
54m
Elevated values of Cu, Ni and Co have been
intersected, with Cu being the most significant
throughout the results received. Copper
mineralisation is directly associated with the
VTM mineralisation and tends to occur within
approximately the same intervals as the V2O5.
Consistent elevated values for copper have
been seen throughout the drilling and ranges
between 0.06% to 0.1%.
Further work is required to understand the
significance of these results and association
with the VTM mineralisation, however the
Company is encouraged as the presence
of these highly anomalous values indicates
significant copper is present in the mineralised
system and leads to the potential for further
enriched zones to be identified
• VCRC0019: 42m at 0.08% Cu, 573ppm Ni &
162ppm Co from 97m
• VCRC0021: 35m at 0.07% Cu, 609ppm Ni &
188ppm Co from 202m
• VCRC0018: 13m at 0.10% Cu, 602ppm Ni &
138ppm Co from 51m
Figure 6 – Map of the Kinks Deposit and the Kinks West Extension ETE target area showing V2O5 assay results
from Vikings 2023 drilling programmes. Intercepts are reported above a 0.5% V2O5 cut-off, with included
intercepts (where reported) >0.8% V2O5 cut-off. Composite intercepts have been derived for zones>6m width,
reporting above minimum cut-off grade and a maximum of 6m consecutive internal waste zones. Intervals
reported are downhole lengths and the true widths are not known. Note historical drillhole results which have
not yet been incorporated into the MRE for the Kinks deposit (orange callouts) and results currently informing
the MRE (white callouts).
7 ASX Announcement Viking Mines (ASX:VKA) 24 August 2023 – Viking Hits High-Grade at Kinks – 40m at 0.75% V2O5
2023 ANNUAL REP ORT | 11
Review of Operations Figure 7 – Map of the Fold Nose Deposit showing V2O5 assay results from Vikings 2023 drilling programmes.
Intercepts are reported above a 0.5% V2O5 cut-off, with included intercepts (where reported) >0.8% V2O5 cut-
off. Composite intercepts have been derived for zones>6m width, reporting above minimum cut-off grade and
a maximum of 6m consecutive internal waste zones. Intervals reported are downhole lengths and the true
widths are not known. Note historical drillhole results which have not yet been incorporated into the MRE for
the Fold Nose deposit (orange callouts) and results currently informing the MRE (white callouts).
Fold Nose Deposit
The Company drilled eight target areas
focused on extending and growing the already
substantial Inferred Mineral Resource Estimate
(MRE) of 79Mt at 0.64% V2O5 estimated at the
Fold Nose and Kinks deposits.
Drilling at the Fold Nose MRE target area has
returned thick high-grade zones of vanadium
mineralisation (reported as V2O5) both within
and external to the current MRE limits. In
addition, the results correlate with historical
drilling, which has occurred since the last
MRE update and has not yet been included
into the Mineral Resource (Figure 1). Further,
mineralisation remains open to the West.
Selected significant V2O5 intercepts from the
recent program and located within the current
Fold Nose MRE limits include.
• VCRC0027: 42m at 0.74% V2O5 (>0.5%) from
79m, including:
17m at 0.80% V2O5 (>0.8%) from
83m &
8m at 0.99% V2O5 (>0.8%) from
108m
• VCRC0026: 38m at 0.72% V2O5 (>0.5%) from
138m, including:
26m at 0.82% V2O5 (>0.8%) from
140m
• VCRC0031: 24m at 0.81% V2O5 (>0.5%) from
96m
Additional significant Vanadium Pentoxide
(V2O5) intercepts from the recent program and
located outside the current Fold Nose MRE limits
include:
12 | VIKING MI NE S LTD
Review of Operations • VCRC0035: 20m at 0.52% V2O5 (>0.5%) from
21m &
24m at 0.71% V2O5 (>0.5%) from
201m, including:
14m at 0.87% V2O5 (>0.8%) from
202m
• VCRC0036: 22m at 0.53% V2O5 (>0.5%) from
21m, including:
6m at 0.91% V2O5 (>0.8%) from
35m
• VCRC0038: 14m at 0.58% V2O5 (>0.5%) from
4m
In addition to the substantial Vanadium grades
received, there has also been an associated
increase in the Iron and Titanium grades above
the MRE average grade of 30.5% Fe and 6.5%
TiO2 seen within the high-grade vanadium
intercepts (>0.8% V2O5). Key intersections
include:
• VCRC0035: 14m at 39.2% Fe & 8.7% TiO2 from
202m
• VCRC0026: 26m at 37.2% Fe & 8.0% TiO2 from
140m
• VCRC0031: 23m at 35.1% Fe & 7.3% TiO2 from
97m
• VCRC0026: 8m at 42.5% Fe & 8.7% TiO2 from
108m
The elevated Fe and TiO2 grades are associated
with the massive magnetite bands observed in
the drilling and there is the opportunity to see
an increase in the average grade when correctly
domaining these zones within the MRE update.
Elevated values of Cu, Ni and Co have been
intersected through the drilling at Fold Nose,
FNE and FSE, with Cu being the most significant
throughout the results received. Copper
mineralisation is both directly associated with
the VTM mineralisation and tends to occur
within approximately the same intervals as the
V2O5 and in separate horizons outside of the
massive VTM mineralisation.
• VCRC0035: 23m at 0.07% Cu, 531ppm Ni &
149ppm Co from 21m &
12m at 0.07% Cu, 688ppm Ni &
196ppm Co from 201m, &
17m at 0.15% Cu, 622ppm Ni &
106ppm Co from 275m
• VCRC0032: 15m at 0.08% Cu, 504ppm Ni &
97ppm Co from 53m &
12m at 0.14% Cu, 702ppm Ni &
138ppm Co from 138m
Metallurgical Testwork
Testwork Summary
36 samples were collected from hole VCRC0006
and submitted to ALS metallurgy for Davis
Tube Wash (DTW) testwork with a target
P80 75-micron grind to ascertain recovery of
Vanadium by magnetic separation methods.
High recoveries of 90.9% were achieved for the
main interval of 17m at 0.98% V2O5, with the
concentrate grading 1.44% V2O5, 60.3% Fe, 10.6%
TiO2, 1.13% SiO2 and 1.72% Al2O3 and a high mass
recovery of 59.6%.9
Mass recoveries for all samples averaged 45.7%
by weight which is significantly higher than
typical titaniferous magnetite deposits (30%
Wt). This will lead to improved economics when
processing this ore compared to other ores
where the yield is typically 30% by weight.
• The DTW testwork has demonstrated that a
high-quality magnetic concentrate can be
produced from the VTM mineralisation at the
Canegrass Project.
• Low levels of Al2O3 and SiO2 provide a
positive indication that a suitable feed for
roasting can be produced to produce a V2O5
flake with further testwork required.
• High-grade iron values in the concentrate
demonstrate the opportunity to investigate
producing an iron/magnetite concentrate for
direct shipping.
• The confirmation of Cu, Ni and Co reporting
at various recoveries to the non-magnetic
tail confirms future potential to recover this
additional battery mineral and that more
testwork is required.
• The mass yields were typically 45% by weight
indicating the samples were fresh. Oxidised
or weathered samples would produce much
lower yields.
• Vanadium recovery remains consistent
throughout hole VCRC0006 in zones of
massive magnetite.
9 ASX Announcement Viking Mines (ASX: VKA) 4 August 2023 – Viking Achieves Exceptional Vanadium Recoveries up to 99.3%
2023 ANNUAL REP ORT | 13
2023 ANNUAL REP ORT | 13
Review of Operations Farm-In Agreement Status
Table 3 below outlines the schedule of the Farm-In Agreement (FIA), as announced on 30 November
2022, and Table 4 details the production and milestone related payments for consideration of the
remaining 1% of the Project.
As of 31 July 2023, Viking has spent a total of $1.28 million on the Project and initiated completion of the
1st stage of the farm-in and now holds 25% of the Project. The spend in excess of $1 million required for
Stage 1 contributes directly towards Stage 2 of the FIA.
As such Viking are required to spend $0.72M over the next 12 months to achieve completion of Stage 2
to acquire a further 24% interest in the Project.
Table 3 – Farm-In Agreement terms for Viking to acquire up to 99% of the Canegrass Battery Minerals Project.
Item
Signing of
agreement
Stage 1
earn-in
Stage 2
earn-in
Stage 3
earn-in
Stage 4
earn-in
Cash Payment at
completion of each
stafe
Exploration
Spend
Duration
(months)
Stage Equity
Earned
(VKA)
Cumulative
Equity
Earned (VKA)
Status
$50,000
$0
1
0%
0%
Complete
$225,000
$1,000,000
18
25%
25%
Complete
$275,000
$1,000,000
$325,000
$1,000,000
$375,000
$1,000,000
12
12
12
24%
49%
In Progress
26%
75%
24%
99%
Total
$1,250,000
$4,000,000
54
-
-
Table 4 – Production and milestone related payments in consideration for the remaining 1% of the Canegrass Battery
Minerals Project after Viking complete stages 1-4 of the JV Farm-In Agreement.
Period
$ payment on annual anniversary of 1st production
$ Total
Grant of Mining Lease
$100,000
Years 1-3
Years 4-6
Years 7-9
Years 10
Total
$50,000
$75,000
$90,000
$100,000
$100,000
$150,000
$225,000
$270,000
$100,000
$845,000
10 ASX Announcement Viking Miens (ASX:VKA) 16 August 2023 – Viking Proceeds to Stage 2 of Canegrass Project Farm-In
14 | VIKING M INE S LT D
Review of Operations Ghana
Akoase Gold Project
At the court hearing held on 24 January 2023,
the High Court of Ghana (Commercial Division)
made a judgement which determined that
the purchasers of the Akoase Project, namely
Akoase Resources Limited, BXC Company
Ghana Limited and Cheng Yi (Defendants) are
liable to pay the full royalty on 50,000 ounces
of gold produced at a rate of US$40/oz, totalling
US$2M. In addition, costs of Ghana Cedis
(GHS) 1.2M were awarded to Vikings subsidiary
Resolute Amansie Limited (RAL)11.
Interest at a rate of 5% APR was also determined
to be calculated on the royalty at the dates
which the court ascertained the royalty was
due. The dates stipulated by the court are 1
June 2022 for 33,000oz of gold produced (date
of the site visit by the independent expert) and
24 January 2023 for 17,000oz of gold produced
(date of the ruling of the Court). An entry of
judgement received from the Court on 13 March
2023 recorded the Defendants were liable to
pay US$2.78M (AUD4.2M) plus costs of GHS 1.2M
(AUD160K).
RAL received payment of US$713k (AUD1.051M)
and GHS1.2M (AUD160K) before the end of the
reporting period12. The payments are considered
by the Company to be respectively towards the
outstanding overdue payments and interest
from the sale of the Akoase Gold Project, and
the court ruled costs of GHS1.2M (AUD160K). The
Company continued to pursue the remaining
balance of the monies owed using our legal
team in Ghana.
A settlement payment of US$2.12M (A$3.25M)
was received after the end of the reporting
period which the company has accepted as full
and final payment.13
Figure 8 – Map showing Viking 100% tenure and
tenement under option with Encounter Resources at
the First Hit Project.
First Hit Gold Project
The Company’s First Hit Project (First Hit Project)
is located 50km west of Menzies in the Western
Australia Goldfields. Limited exploration activity
was undertaken on the First Hit Project during
the reporting period with the primary focus
being on the Canegrass Project.
The Company continued with its assessment
of the results from the three phases of drilling,
totalling 15,000m that had been undertaken at
the First Hit Project. As the Company continues
with its identification of exploration targets and
its review of gold and potential lithium targets,
it maintains the tenement in good standing with
all statutory reporting being completed and
lodged.
After the end of the reporting period, a small
drill programme was completed on the Emerald
Prospect tenement E30/1137. 5 drillholes for
307 metres were drilled targeting northern
extensions from the Emerald Gold Mine. No
significant intersections were received, however
low-level gold anomalism was identified,
possibly indicating the northern continuation of
the structure.
The company is currently planning an
exploration programme for the First Hit project
tenements which is scheduled to take place in
H1 FY24.
11 ASX Announcement Viking Mines (ASX:VKA) 30 January 2023 – VKA Succeeds in Ghana Legal Claim with greater than A$4M Due
12 ASX Announcement Viking Mines (ASX:VKA) 26 April 2023 – Viking Receives $1.14M from Ghana with $3.19M Debt Remaining
13 ASX Announcement Viking Mines (ASX:VKA) 25 September 2023 - Viking Receives $3.3m Final Settlement in Ghana Litigation.
2023 ANNUAL REP O RT | 15
Review of Operations Ore Reserves (JORC Code). The Company is
not aware of any new information or data that
materially affects the information included
in the original market announce-ments and
that all material assumptions and technical
parameters underpinning the estimates in the
relevant market an-nouncement continue to
apply and have not materially changed. The
Company confirms that the form and context
in which the Competent Person’s findings are
presented have not been materially modified
from the original market announcements on 30
November 2022.
The information contained in this report,
relating to metallurgical results, is based
on, and fairly and accurately represent the
information and supporting documentation
prepared by Mr Damian Connelly. Mr Connelly
is a full-time employee of METS Engineering
who are a Contractor to Viking Mines Ltd,
and a Fellow of The Australasian Institute
of Mining and Metallurgy. Mr Connelly has
sufficient experience which is relevant to the
style of mineralisation and type of deposit
under consideration, and to the activity being
undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the Australasian
Code for Reporting of Exploration Results,
Exploration Targets, Mineral Resources and
Ore Reserves. The Company is not aware of
any new information or data that materially
affects the information included in the original
market announcements and that all material
assumptions and technical parameters
underpinning the estimates in the relevant
market announcement continue to apply and
have not materially changed. The Company
confirms that the form and context in which
the Competent Person’s findings are presented
have not been materially modified from the
original market announcements.
Business
Development
The Company entered into a significant
transaction in the year to acquire the Canegrass
Battery Minerals Project. This is a product of
ongoing business development activities where
the Company seeks to identify, review and
assess opportunities through an active process
of project identification.
The Company will continue to review projects
based on their technical merits and strategic fit
with the current portfolio of projects
Competent Persons
Statements
Information in this release that relates to
Exploration Results and exploration target is
based on information compiled by Mr Julian
Woodcock, who is a Member and of the
Australian Institute of Mining and Metallurgy
(MAusIMM(CP) – 305446). Mr Woodcock is a full-
time employee of Viking Mines Ltd. Mr Woodcock
has sufficient experience which is relevant to
the style of mineralisation and type of deposit
under consideration and to the activity being
undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’. The
Company confirms that the form and context
in which the Competent Person’s findings are
presented have not been materially modified
from the original market announcements.
The information in this report that relates
to Mineral Resources is based on, and fairly
reflects, information compiled by Mr Aaron
Meakin, a Competent Person who is a Member
of the Australasian Institute of Mining and
Metallurgy. Mr Meakin is a consultant to
Red Hawk Mining Ltd and Viking Mines Ltd,
employed by CSA Global Pty Ltd, independent
mining industry consultants. Mr Meakin has
sufficient experience relevant to the style
of mineralisation and type of deposit under
considera-tion and to the activity which
he is undertaking to qualify as Competent
Person as defined in the 2012 edition of the
Aus-tralasian Code for the Reporting of
Exploration Results, Mineral Resources, and
16 | VIKING M INE S LT D
Review of Operations Directors' Report
30 June 2023
2023 ANNUAL REP O RT | 17
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter
as the 'consolidated entity') consisting of Viking Mines Limited (referred to hereafter as the 'Company' or 'parent
entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023.
Directors
The following persons held office as Directors of Viking Mines Limited from the start of the financial year and up to the date
of this report.
Charles Thomas - Non-Executive Chairman
Julian Woodcock - Managing Director and CEO
Michael Cox - Non-Executive Director
Principal Activities
The principal activity of the consolidated entity during the financial year was investment in mineral exploration projects.
Dividends
No dividends have been paid, recommended or declared during the current or previous financial year.
Review of Operations
The profit for the consolidated entity after providing for income tax amounted to $1,212,405 (30 June 2022: profit
$1,379,400). A more detailed review of operations is included in the Operations Report accompanying this annual
report.
Material Business Risks
The Group considers the following to be the key material business risks:
i)
ii)
iii)
Funding for operational activities and capital availability
Exploration & discovery risk
Environmental and heritage risk
Risk associated with future capital requirements
Mineral exploration and resource companies without an operating mine (including the Company) do not generate cashflow
via sale of a commodity or product.
Financing of future operating costs and expenditure commitments will ultimately at some point in the future exceed the
current cash reserves. To meet future expenses, the company may be required to either secure debt funding or raise new
equity via capital raisings through the issue of new shares in the Company.
The extent of funding required will depend on the level of activity being undertaken at that time and at this time cannot be
determined. There are no assurances that the amount of any potential future financing can be met on terms acceptable to
the Company, however the current cash reserves of the company are sufficient to meet the planned operating and
exploration expenses for FY24 and as such the Board of Directors deems this a low risk for the coming financial year.
In the event funding is required and the Company is unable to secure sufficient finance either through debt or equity, the
Company may be required to reduce the scope of its operations and exploration activity to ensure solvency.
18 | VIKING M INE S LT D
Directors' Report 30 June 2023
Risk of failure in exploration, discovery, development or production
The nature of exploration for commodities carries the risk of being unsuccessful in the discovery of the commodities. When
resources are discovered, significant ongoing expenditure is required to advance the discovered commodities to sufficient
level and understanding to be able to determine and estimate Resources & Reserves.
By the nature of the activity and exploring for commodities, there is no guarantee of success in defining economic deposits.
In exploration, the probability of discovery is inherently low, however with effective strategies and systematic exploration,
projects can be tested and assessed to minimise the expenditure required to determine the likelihood of success.
For this reason and to mitigate the risk as effectively as possible, the Company adopts a staged exploration approach with
exploration programmes planned to meet key objectives before committing to further expenditure.
All exploration programmes are expensed until they reach a level of confidence which the Company feels confident that a
future economic return can be made from the Project being evaluated. This has the effect of not overstating the balance
sheet of the company for expenses which may not in future generate returns for the Company through either divestment
or development.
The Company further mitigates this risk by focusing on more mature and advanced projects which inherently have a higher
probability of success as opposed to early stage grass roots or Greenfields projects which have a lower probability of
success.
Environmental & Heritage
The Company recognises the environmental risks associated with both exploration activity and any future production
related activity. The risks relate to meeting legal requirements associated with the activity, social risks associated with the
perception of the activity being undertaken and the physical risks associated with undertaking the activity. The
consequences of not managing these risks can be in the form of penalties/fines, loss of social licence to operate and
damaging the natural environment.
The Company manages the Environmental risk by ensuring that all work is completed to a high standard and to all legal
requirements as determined in the jurisdictions within which we operate. Experienced, skilled and professional contractors
are engaged in the exploration activity when fieldwork is undertaken, minimizing the environmental impact of our
operations. All required permits and approvals are obtained, and external parties are engaged to assist and manage the
submission of required environmental reports. The effect of these controls is to reduce and mitigate the risk of liability
from a legal perspective and limit the impact of our exploration programmes on the natural environment.
Heritage is managed through the engagement of external parties and the completion of heritage surveys to identify any
areas of potential concern. In the event heritage sites are located, the Company ensures that sites are avoided and excluded
from ground disturbing activity.
Given the stage that the Company’s projects are at, no baseline environmental studies have yet been completed. As the
Company’s projects advance, it will be necessary to conduct these studies. If any endangered or rare species of flora or
fauna are identified, this could have an impact on further advancement of the projects.
Canegrass Farm-In Agreement
On 30 November 2022 the Company its wholly owned subsidiary, Viking Critical Minerals Pty Ltd, entered into a Farm-
In Agreement with Flinders Canegrass Pty Ltd, a wholly owned subsidiary of Red Hawk Mining Pty Ltd (formerly Flinders
Mines Ltd) to acquire an equity stake in the Canegrass Battery Minerals Project.
Under the terms of the Farm-In Agreement, the Company can earn up to 99% of the six Project tenements for all
minerals via a Farm-In Arrangement, by spending $4m on exploration over 54 months and making staged cash
payments for a total consideration of $1.25m to Flinders Mines Ltd. The remaining 1% can be acquired by the Company
for future production related payments in the project advances to mining.
2023 ANNUAL REP O RT | 19
Directors' Report 30 June 2023
The Canegrass Battery Minerals Project hosts substantial Vanadium inferred JORC (2012) resource of 79Mt at 0.66% V205.
The Company has significantly advanced the project throughout the year, with further details of activity outlined in the
Operations Report.
First Hit Project, Western Australia
The Company continued to progress the activity on its First Hit Project during the reporting period. Refer to the detailed
Operations Report for further details.
Ghana
Ghana litigation from sale of the Akoase Project
During the reporting period, the Company continued to pursue the unpaid proceeds of the sale of the Akoase Gold
Project through the High Court in Ghana (commercial division). As successful judgement was received from the High Court,
awarding the Company's subsidiary, Resolute Amansie Limited, the full extent of the claim plus costs and interest.
Payments of USD713K (AUD1.051M) and GHS1.2M (AUD160K) were received from the Defendants within the reporting
period, with the balance of ~USD2m (AUD3M) plus interest owing at the end of the reporting period.
A settlement payment of US$2.12M (AUD3.25M) was received subsequent to the end of the reporting period which the
Company has accepted as full and final payment.
Tumentu Gold Project, Ghana
In September 2022, the Tumentu licence expired at the end of its 3-year term. The Company did not seek to extend it for a
subsequent term.
Butre Gold Project, Ghana
In December 2022, the Butre licence expired at the end of its 3-year term. The Company did not seek to extend it for a
subsequent term.
Likely developments and expected results of operations
The Company continues to identify and evaluate new value-creating opportunities in the mining and resources sector.
The Company continues its review of mineral project farm-in/acquisition opportunities with the objective of acquiring
resource assets that have the potential of being world class.
Events subsequent to the end of the reporting period
As stated above, a settlement payment of US$2.12M (AUD3.25M) was received subsequent to the end of the reporting
period which the Company has accepted as full and final payment against unpaid proceeds of the sale of the Akoase Gold
Project.
On 16 August 2023 the Company completed the first stage of its Farm-In Agreement (FIA) with Red Hawk Mining Limited
(formerly Flinders Mines Limited) and earnt a 25% equity stake in the Canegrass Battery Minerals Project (Canegrass).
The Company’s decision to proceed with Stage 2 of the FIA follows the satisfactory completion of the Stage 1 commitment
of $1 million exploration expenditure, which required completion within 18 months of commencement of the FIA. The
Company has undertaken a rapid and aggressive period of exploration activity since entering into the FIA comprising
field mapping, geophysical surveys and modelling, Exploration Target Estimate, Metallurgical testwork and drilling
programmes encompassing 50 Reverse Circulation (RC) drillholes for 7,687m.
The results from the work completed to date have yielded excellent outcomes which support the Directors’ decision to
proceed to Stage 2. Stage 2 of the FIA will give the Company the right to earn a further 24% interest in the Project once
total exploration expenditure reaches $2 million on the Project and is to be completed over the next 12 months.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Environmental regulation
The consolidated entity is subject to significant environmental legal regulations in respect to its exploration and evaluation
activities in the countries where it holds tenements. Subject to ongoing rehabilitation, the Company has complied with all
environmental obligations.
Information on Directors
Name:
Title:
20 | VIKING M INE S LT D
Experience and expertise:
Charles Thomas
Non-Executive Chairman
Mr Thomas holds a Bachelor of Commerce from UWA majoring in Corporate
Finance. Mr Thomas is an Executive Director and Founding Partner of GTT a
leading boutique corporate advisory firm based in Australia.
Mr Thomas has worked in the financial service industry for more than 15
years and has extensive experience in capital markets as well as the
structuring of corporate transactions. Mr Thomas has significant experience
sitting on numerous ASX boards spanning the mining, resources and technology
space.
Mr Thomas’s previous directorships include among others AVZ Minerals Ltd
(ASX:AVZ), Liberty Resources Ltd (ASX:LBY), Force Commodities Limited
(ASX:4CE) and Applabs Technologies Ltd (ASX:ALA) where he was responsible
for the sourcing and funding of numerous projects. Mr Thomas is currently
the Executive Chairman of Marquee Resources Limited (ASX:MQR) and Non-
Executive Director of Chase Mining Corporation Limited (ASX:CML).
Other current ASX Listed
Directorships:
Executive Chair of Marquee Resources Limited (ASX: MQR) since 2016
Non-Executive Director of Chase Mining Corporation Limited (ASX:CML) since
Former Directorships (last 3 years): Nil
Interests in shares:
Interests in unquoted
securities:
2018
20,000,000
Nil
Name:
Title:
Julian Woodcock
Managing Director and CEO
Experience and expertise:
Mr Woodcock joined the Company as CEO on 4 January 2021 and became
the Managing Director in July 2021.
Mr Woodcock is a Geologist and has over 20 years’ experience in all aspects
of the extractive and mineral exploration industry and has been directly
associated with notable multimillion once gold discoveries.
In his former role as Exploration Manager for Gold Road Resources he led a
large exploration team to discover new orebodies and define 300 k oz of new
Indicated Resources and converted 1.3 M oz from Inferred to Indicated
Resources at the Gruyere gold mine. Previous appointments include
Directors' Report 30 June 2023
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect
the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future
financial years.
Environmental regulation
The consolidated entity is subject to significant environmental legal regulations in respect to its exploration and evaluation
activities in the countries where it holds tenements. Subject to ongoing rehabilitation, the Company has complied with all
environmental obligations.
Information on Directors
Name:
Title:
Experience and expertise:
Charles Thomas
Non-Executive Chairman
Mr Thomas holds a Bachelor of Commerce from UWA majoring in Corporate
Finance. Mr Thomas is an Executive Director and Founding Partner of GTT a
leading boutique corporate advisory firm based in Australia.
Mr Thomas has worked in the financial service industry for more than 15
years and has extensive experience in capital markets as well as the
structuring of corporate transactions. Mr Thomas has significant experience
sitting on numerous ASX boards spanning the mining, resources and technology
space.
Mr Thomas’s previous directorships include among others AVZ Minerals Ltd
(ASX:AVZ), Liberty Resources Ltd (ASX:LBY), Force Commodities Limited
(ASX:4CE) and Applabs Technologies Ltd (ASX:ALA) where he was responsible
for the sourcing and funding of numerous projects. Mr Thomas is currently
the Executive Chairman of Marquee Resources Limited (ASX:MQR) and Non-
Executive Director of Chase Mining Corporation Limited (ASX:CML).
Other current ASX Listed
Directorships:
Executive Chair of Marquee Resources Limited (ASX: MQR) since 2016
Non-Executive Director of Chase Mining Corporation Limited (ASX:CML) since
2018
Former Directorships (last 3 years): Nil
Interests in shares:
Interests in unquoted
securities:
20,000,000
Nil
Name:
Title:
Experience and expertise:
Julian Woodcock
Managing Director and CEO
Mr Woodcock joined the Company as CEO on 4 January 2021 and became
the Managing Director in July 2021.
Mr Woodcock is a Geologist and has over 20 years’ experience in all aspects
of the extractive and mineral exploration industry and has been directly
associated with notable multimillion once gold discoveries.
In his former role as Exploration Manager for Gold Road Resources he led a
large exploration team to discover new orebodies and define 300 k oz of new
Indicated Resources and converted 1.3 M oz from Inferred to Indicated
Resources at the Gruyere gold mine. Previous appointments include
Exploration Manager for Evolution Mining Mungari Operations and for Gold
Fields Australia at the St Ives Gold Mine as well as various international
positions for Gold Fields Ltd and Kinross Gold.
Other current ASX Listed
Directorships:
Nil
Former Directorships (last 3 years): Nil
Interests in shares:
14,000,000
Interests in unquoted securities:
20,000,000 Performance Rights
Name:
Title:
Experience and expertise:
Michael Cox
Non-Executive Director
Mr Cox holds both a Bachelor of Science (Geology) degree from the
University of Sydney and a Bachelor of Laws degree from University of
Technology, Sydney. He has run a private corporate advisory services firm
since 2008.
2023 ANNUAL REP O RT | 21
He commenced his career as a mining analyst for stockbroking firms
followed by a role being responsible for the delineation and grade control
of a developing bentonite deposit. He then moved into various board
positions and corporate development roles with a number of listed and
unlisted public companies including NSX Ltd, CEAL Ltd, Syngas Ltd,
Benitec Ltd, Queensland Opals NL and Multi-E-Media Ltd.
Other current ASX Listed
Nil
Directorships:
Former Directorships (last 3 years): Nil
Interests in shares:
Interests in unquoted securities:
Nil
Nil
Company Secretary
Sarah Wilson
Ms Wilson is an experienced company secretary with more than 10 years’ experience in governance and compliance.
She is an Executive Director of national corporate advisory firm, Source Governance, and is currently company secretary
to a number of ASX listed companies with a strong focus on resources.
Directors' Report 30 June 2023
Exploration Manager for Evolution Mining Mungari Operations and for Gold
Fields Australia at the St Ives Gold Mine as well as various international
positions for Gold Fields Ltd and Kinross Gold.
Other current ASX Listed
Directorships:
Nil
Former Directorships (last 3 years): Nil
Interests in shares:
14,000,000
Interests in unquoted securities:
20,000,000 Performance Rights
Name:
Title:
Experience and expertise:
Michael Cox
Non-Executive Director
Mr Cox holds both a Bachelor of Science (Geology) degree from the
University of Sydney and a Bachelor of Laws degree from University of
Technology, Sydney. He has run a private corporate advisory services firm
since 2008.
He commenced his career as a mining analyst for stockbroking firms
followed by a role being responsible for the delineation and grade control
of a developing bentonite deposit. He then moved into various board
positions and corporate development roles with a number of listed and
unlisted public companies including NSX Ltd, CEAL Ltd, Syngas Ltd,
Benitec Ltd, Queensland Opals NL and Multi-E-Media Ltd.
Other current ASX Listed
Directorships:
Nil
Former Directorships (last 3 years): Nil
Interests in shares:
Interests in unquoted securities:
Nil
Nil
Company Secretary
Sarah Wilson
Ms Wilson is an experienced company secretary with more than 10 years’ experience in governance and compliance.
She is an Executive Director of national corporate advisory firm, Source Governance, and is currently company secretary
to a number of ASX listed companies with a strong focus on resources.
22 | VIKING M INE S LT D
Directors' Report 30 June 2023
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2023, and
the number of meetings attended by each Director were:
Directors Meetings - Held
Directors Meetings - Attended
Charles Thomas
Julian Woodcock
Michael Cox
7
7
7
7
7
7
Held: represents the number of meetings held during the time the Director held office.
Audited remuneration report
This report outlines the remuneration arrangements in place for the Key Management Personnel of Viking Mines Limited
(the “Company”) for the financial year ended 30 June 2023. The information provided in this remuneration report in relation
to the current financial year has been audited as required by Section 308(3C) of the Corporations Act 2001.
The remuneration report details the remuneration arrangements for Key Management Personnel (“KMP”) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major activities
of the Company, directly or indirectly, including any Director (whether Executive or otherwise) of the Company, and
includes all Executives of the Company and the consolidated entity.
The remuneration report is set out under the following main headings:
•
•
•
•
•
•
Principles used to determine the nature and amount of remuneration
Details of remuneration
Employment contracts/Consultancy 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 Company’s Executive reward framework is to ensure reward for performance is competitive and
appropriate for the results delivered. The framework aims to align executive reward with the creation of value for
shareholders. The key criteria for good reward governance practices adopted by the Board are:
•
•
•
•
•
Competitiveness and reasonableness
Acceptability to shareholders
Performance incentives
Transparency
Capital Management
The framework provides a mix of fixed salary, consultancy agreement-based remuneration, and share based incentives.
The broad remuneration policy for determining the nature and amount of emoluments of Board members and senior
Executives of the Company is governed by the full Board. Although there is no separate remuneration committee the
Board’s aim is to ensure the remuneration packages properly reflect Directors and Executives duties and responsibilities.
The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis
by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder
benefit from the retention and motivation of a high-quality Board and Executive team.
2023 ANNUAL REP O RT | 23
Directors' Report 30 June 2023
The current remuneration policy adopted is that no element of any Director/Executive package be directly related to
the Company’s financial performance. There are no elements of any Director or Executive remuneration that are
dependent upon the satisfaction of any specific condition. The overall remuneration policy framework however is
structured in an endeavor to advance/create shareholder wealth.
Non-Executive Directors
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 and are intended to be in line
with the market.
Directors’ fees
Non-Executive Directors receive a separate fixed fee for their services as Directors. The current Directors' fee pool is
$500,000 per annum to be allocated at the discretion of the Board.
Retirement allowances for Directors
Apart from superannuation payments paid on salaries, there are no retirement allowances for Directors.
Executive pay
The Executive pay and reward framework has the following components:
• Base pay and benefits such as superannuation.
• Long term incentives through participation in employee equity issues.
Base pay
All Executives are either full time employees or consultants that are paid on an agreed basis that have been formalised in
consultancy agreements.
Benefits
Apart from superannuation paid on Executive salaries there are no additional benefits paid to Executives.
Short-term incentives
There are no current short-term incentive remuneration arrangements.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables.
The key management personnel of the consolidated entity consisted of the following Directors of Viking Mines Limited:
- Charles Thomas
- Julian Woodcock
- Michael Cox
24 | VIKING M INE S LTD
Directors' Report 30 June 2023
Short-term
benefits
Salary/Fees
Post
employment
benefits
Superannuation
Long-term
benefits
Share-based payments
Total
Long Service
Equity based
2023
$
Non-Executive Directors:
Charles
Thomas
Michael Cox
Executive Director:
Julian
Woodcock^
Total
48,000
36,000
265,000
349,000
$
5,040
3,780
27,825
36,645
$
-
-
13,781
13,781
$
-
-
-
-
Performance
Rights
$
-
-
$
53,040
39,780
27,146
333,752
27,146
426,572
^ Cash salary and fees include the movement in annual leave provision and long-service leave provision for all KMPs
excluding Non-Executive Directors.
Short-term
benefits
Salary/Fees
Post
employment
benefits
Superannuation
10,257
57,717
50,965
2022
$
Non-Executive Directors:
Charles
Thomas
Michael Cox
David Hall
Executive Director:
Julian
Woodcock^
Raymond
Whitten
Total
44,797
245,000
408,736
$
1,026
5,772
5,303
24,500
4,480
41,081
Long-term
benefits
Share-based payments
Total
Long Service
Equity based
$
-
-
-
$
-
-
25,000
Performance
Rights
$
-
-
-
$
11,283
63,489
81,268
6,566
72,000***
33,200*^
381,266
-
-
-
49,277
6,566
97,000
33,200
586,583
* David Hall (appointed 22 July 2021, resigned 18 May 2022). Options granted under service agreement.
** Raymond Whitten (resigned 2 August 2021)
*** Mr Woodcock's $72,000 total equity-settled shares relate to the value of 4,000,000 shares issued, upon completion of his
continuous employment on 30 November 2021, as approved by Shareholders on 25 November 2021.
*^ Mr Woodcock's performance rights relate to the amortisation of the expected value of Tranche A and Tranche B. The
conditions of the performance rights have not been met and shares have not been issued.
^ Cash salary and fees include the movement in annual leave provision and long-service leave provision for all KMPs excluding
Non-Executive Directors.
2023 ANNUAL REP ORT | 25
Directors' Report 30 June 2023
Employment contracts/Consultancy 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:
Agreement
commenced:
Julian Woodcock
Managing Director and CEO
4 January 2021
Term of agreement: (a) Remuneration: fixed annual salary $300,000 (effective 1 June 2023) plus employer
superannuation guarantee contribution;
(b) Termination: the Company and Mr Woodcock may terminate the employment at any time
by giving 3 months notice in writing. The Company may terminate Mr Woodcock's
employment at any time by giving 6 months notice in writing.
Share-based compensation
Issue of shares
No shares were issued to the Directors in year to 30 June 2023.
Options
No options were granted over ordinary shares affecting remuneration of Directors and other Key Management Personnel
in this financial year.
Values of options over ordinary shares granted, exercised and lapsed for Directors and other Key Management Personnel
as part of compensation during the year ended 30 June 2023 are set out below:
Name
Value of options
granted during the
year
Value of options
exercised during the
year
Value of options
lapsed during the
year
Remuneration
consisting of options
for the year
Charles Thomas
Michael Cox
-
-
-
-
121,273
121,273
-
-
Details of options over ordinary shares granted, vested and lapsed for Directors and other Key Management Personnel
as part of compensation during the year ended 30 June 2023 are set out below:
Name
Grant date
Vesting date
Charles Thomas
15 December 2020
6 December 2022
Michael Cox
15 December 2020
6 December 2022
Number of options
lapsed
Value of options
lapsed
5,000,000
5,000,000
121,273
121,273
26 | VIKING M INE S LTD
Directors' Report 30 June 2023
Additional information
Option holding
The number of options over ordinary shares in the Company held during the financial year by each Director and other
members of Key Management Personnel of the consolidated entity, including their personally related parties, is set out
below:
Options over
ordinary shares
Balance at the start
of the year
Granted
Exercised
Expired/ forfeited/
Other
Balance at the end
of the year
Charles Thomas
Michael Cox
5,000,000
5,000,000
10,000,000
-
-
-
-
-
-
5,000,000
5,000,000
10,000,000
-
-
-
The earnings of the consolidated entity for the five years to 30 June 2023 are summarised below:
2023
$
2022
$
2021
$
2020
$
2019
$
Profit/(loss) after income tax
1,212,405
1,389,400
(4,650,715)
(710,959)
(496,472)
Share price at financial year end
Basic earnings per share (cents per
share)
Diluted earnings per share (cents per
share)
$0.01
0.12
$0.006
0.14
$0.029
(0.78)
$0.007
(0.23)
$0.01
(0.16)
0.11
0.12
(0.78)
(0.23)
(0.16)
This concludes the remuneration report, which has been audited.
Shares under option
Outstanding share options at the date of this report are as follows:
Grant date
Expiry date
Exercise price
Number under option
30 Nov 2021
Exercisable on or before 15 December 2023
$0.030
5,000,000
Shares issued on the exercise of options
During the current financial year there were no shares issued upon the exercise of options.
Indemnity and insurance of officers
During the financial period the Company has paid premiums in respect of a contract insuring all Directors and officers of
the Company and its controlled entities against liabilities incurred as Directors or officers to the extent permitted by the
Corporations Act 2001. Due to a confidentiality clause in the contract the amount of the premium has not been disclosed.
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.
2023 ANNUAL REP ORT | 27
Directors' Report 30 June 2023
Directors' Report
30 June 2023
Auditor
On 13 September 2022 Rothsay Audit & Assurance Pty Ltd were appointed the Company’s Auditor, following resignation of
the firm of “Rothsay Auditing” and receipt of ASIC’s consent to that resignation13.
Rothsay Auditing completed the review of Viking Mines Limited for the half-year ended 31 December 2021. Rothsay Audit
& Assurance Pty Ltd completed the audit of Viking Mines Limited for the financial year ended 30 June 2022.
On 15 November 2022 BDO Audit (WA) Pty Ltd were appointed as the Company's Auditor, following the resignation of
Auditor
Rothsay Audit & Assurance Pty Ltd and receipt of ASICs consent to that resignation14.
On 13 September 2022 Rothsay Audit & Assurance Pty Ltd were appointed the Company’s Auditor, following resignation of
BDO Audit (WA) Pty Ltd completed the review of Viking Mines Limited for the half-year ended 31 December 2022.
the firm of “Rothsay Auditing” and receipt of ASIC’s consent to that resignation13.
Indemnity and insurance of auditor
Rothsay Auditing completed the review of Viking Mines Limited for the half-year ended 31 December 2021. Rothsay Audit
& Assurance Pty Ltd completed the audit of Viking Mines Limited for the financial year ended 30 June 2022.
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.
On 15 November 2022 BDO Audit (WA) Pty Ltd were appointed as the Company's Auditor, following the resignation of
Rothsay Audit & Assurance Pty Ltd and receipt of ASICs consent to that resignation14.
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.
BDO Audit (WA) Pty Ltd completed the review of Viking Mines Limited for the half-year ended 31 December 2022.
Auditor's independence and non-audit services
Indemnity and insurance of auditor
No non-audit services were provided during the financial year by the 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.
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
on the following page.
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.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations
Act 2001.
Auditor's independence and non-audit services
On behalf of the Directors
No non-audit services were provided during the financial year by the auditor.
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
on the following page.
This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations
Charles Thomas
Act 2001.
Non-Executive Chairman
On behalf of the Directors
Charles Thomas
Non-Executive Chairman
13 Refer VKA ASX Announcement dated 13 September 2022: Change of Auditors
14 Refer VKA ASX Announcement dated 15 November 2022: Change of Auditors
13 Refer VKA ASX Announcement dated 13 September 2022: Change of Auditors
14 Refer VKA ASX Announcement dated 15 November 2022: Change of Auditors
28 | VIKING M INE S LT D
Auditor's Independence Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF VIKING MINES
LIMITED
As lead auditor of Viking Mines Limited for the year ended 30 June 2023, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Viking Mines Limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth
27 September 2023
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
2023 ANNUAL REP ORT | 29
Annual Financial Statements - Contents
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 Financial Statements
Directors Declaration
31
32
33
34
35
52
Independent Auditor's Report to the Members of Viking Mines Limited 53
Shareholder Information
Tenement Schedule
58
61
30 | VIKING M INE S LT D
Ann
Ann
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
30 June 2023
30 June 2023
Consolidated Statement of Profit or Loss and Other
Revenue
Other income
Comprehensive Income
Expenses
30 June 2023
5
4,425,886
Note
2023
$
22
Note
5
10
22
10
7
(34,646)
2023
(347,908)
$
(380,028)
(36,645)
4,425,886
(75,346)
(1,111,933)
(34,646)
(5,297)
(347,908)
(208,831)
(380,028)
(2,200,634)
(36,645)
(75,346)
2,225,252
(1,111,933)
(1,012,847)
(5,297)
(208,831)
1,212,405
(2,200,634)
135,569
2022
$
4,155,806
(24,000)
2022
(199,127)
$
(851,173)
(63,642)
4,155,806
(62,619)
(1,188,755)
(24,000)
(8,472)
(199,127)
(368,618)
(851,173)
(2,766,406)
(63,642)
(62,619)
1,389,400
(1,188,755)
-
(8,472)
(368,618)
1,389,400
(2,766,406)
90,252
Revenue
Expenses
Audit fees
Consultancy costs
Employee benefits expense
Superannuation expense
Other income
Depreciation and amortisation expense
Expenses relating to exploration and evaluation15
Audit fees
Finance expenses
Consultancy costs
Other expenses
Employee benefits expense
Total Expenses
Superannuation expense
Depreciation and amortisation expense
Expenses relating to exploration and evaluation15
Income tax expense
Finance expenses
Other expenses
Total Expenses
Profit before income tax expense
Foreign currency translation
Profit after income tax expense for the year attributable to the owners of
Viking Mines Limited
Profit before income tax expense
Total comprehensive income for the year attributable to the owners of Viking
Mines Limited
Income tax expense
2,225,252
1,347,974
(1,012,847)
7
1,389,400
1,389,400
-
Profit after income tax expense for the year attributable to the owners of
Viking Mines Limited
Foreign currency translation
Basic earnings per share
Total comprehensive income for the year attributable to the owners of Viking
Diluted earnings per share
Mines Limited
Basic earnings per share
Diluted earnings per share
1,212,405
1,389,400
Cents
135,569
0.12
1,347,974
0.11
Cents
90,252
0.14
1,389,400
0.12
Cents
0.12
0.11
Cents
0.14
0.12
6
6
6
6
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
15 This expenditure relates mostly to the Farm-In Agreement with Red Hawk Mining Ltd (formerly Flinders Mines Limited) to acquire an equity interest in
the Canegrasss BaYery Minerals Project (details in the Opera]ons, Directors’ Report and note 29)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
15 This expenditure relates mostly to the Farm-In Agreement with Red Hawk Mining Ltd (formerly Flinders Mines Limited) to acquire an equity interest in
the Canegrasss BaYery Minerals Project (details in the Opera]ons, Directors’ Report and note 29)
2023 ANNUAL REP O RT | 31
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
30 June 2023
30 June 2023
Note
30 JUN 2023
30 JUN 2022
Assets
Current assets
Cash and cash equivalents
Consolidated Statement of Financial Position
30 June 2023
Other receivables
Other receivable – Proceeds from sale
Total current assets
Note
Assets
Non-current assets
Right of use assets
Exploration and evaluation
Current assets
Cash and cash equivalents
Plant & equipment
Canegrass Farm-In
Other receivables
Total non-current assets
Other receivable – Proceeds from sale
Total current assets
Total assets
Liabilities
Current liabilities
Non-current assets
Right of use assets
Exploration and evaluation
Trade and other payables
Plant & equipment
Employee benefits
Canegrass Farm-In
Total non-current assets
Lease liabilities
Deferred tax liabilities
Total current liabilities
Total assets
Liabilities
Non-current liabilities
Employee benefits
Current liabilities
Lease liabilities
Trade and other payables
Total non-current liabilities
Employee benefits
Lease liabilities
Deferred tax liabilities
Total current liabilities
Total liabilities
Net assets
Equity
Non-current liabilities
Issued capital
Employee benefits
Reserves
Lease liabilities
Total non-current liabilities
Accumulated Losses
Total equity
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated Losses
Total equity
8
9
29
4,132,137
122,020
3,167,421
7,421,578
30 JUN 2023
4,445,411
66,013
-
4,511,424
30 JUN 2022
10
11
8
9
29
10
11
12
13
14
13
14
12
13
14
60,389
4,100,000
3,736
4,132,137
105,491
122,020
4,269,616
3,167,421
7,421,578
11,691,194
60,389
4,100,000
1,024,567
3,736
31,628
105,491
4,269,616
69,489
1,012,847
11,691,194
2,138,531
13,781
-
1,024,567
13,781
31,628
69,489
2,152,312
1,012,847
9,538,882
2,138,531
123,008
4,100,000
12,727
4,445,411
-
66,013
4,235,735
-
4,511,424
8,747,159
123,008
4,100,000
383,425
12,727
29,463
-
4,235,735
66,812
-
8,747,159
479,700
7,245
69,306
383,425
76,551
29,463
66,812
556,251
-
8,190,908
479,700
15 31,902,027
13,781
13
(588,290)
16
-
14
13,781
(21,774,855)
17
9,538,882
2,152,312
31,902,027
7,245
(723,859)
69,306
76,551
(22,987,260)
8,190,908
556,251
9,538,882
8,190,908
15 31,902,027
(588,290)
16
(21,774,855)
17
9,538,882
31,902,027
(723,859)
(22,987,260)
8,190,908
The above statement of financial position should be read in conjunction with the accompanying notes
The above statement of financial position should be read in conjunction with the accompanying notes
32 | VIKING MI NE S LTD
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity
30 June 2023
30 June 2023
Issued capital Reserves
Accumulated
losses
Non-controlling
interest
Total equity
Consolidated
$
$
$
$
Balance at 1 July 2021
31,830,027
(359,387)
(23,999,255)
(741,225)
Profit after income tax
expense for the year
Other comprehensive
income for the year, net
of tax
Total comprehensive
income for the year
-
-
-
-
1,389,400
(90,252)
-
(90,252)
1,389,400
Transactions with owners in their capacity as owners:
Shares issued
72,000
-
Performance Rights
Non-controlling interest
Options lapsed
Options issued
-
-
-
-
64,600
-
-
-
-
(363,820)
363,820
25,000
-
Balance at 30 June 2022
31,902,027
(723,859)
(22,987,260)
Issued
capital
Reserves
Consolidated
Balance at 1 July 2022
$
31,902,027
$
(723,859)
Accumulated
losses
$
(22,987,260)
Profit after income tax
expense for the year
Other comprehensive
income for the year, net
of tax
Total comprehensive
income for the year
-
-
-
-
1,212,405
135,569
-
135,569
1,212,405
Transactions with owners in their capacity as owners:
Options lapsed
Balance at 30 June 2023
31,902,027
(588,290)
(21,774,855)
-
-
-
-
-
741,225
-
-
-
Non-controlling
interest
$
-
-
-
-
-
$
6,370,160
1,389,400
(90,252)
1,299,148
72,000
64,600
741,225
-
25,000
8,190,908
Total
equity
$
8,190,908
1,212,405
135,569
1,347,974
9,538,882
2023 ANNUAL REP O RT | 33
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
30 June 2023
30 June 2023
Cash flows from operating activities
30 JUN 2023
30 JUN 2022
Payments to suppliers and employees
Consolidated Statement of Cash Flows
Interest received
Interest paid
30 June 2023
Receipts of grants
Other income
Proceeds from legal dispute
Cash flows from operating activities
Net cash flows from operating activities
Payments to suppliers and employees
Cash flows from investing activities
Interest received
Payment for plant and equipment
Interest paid
Payments for security deposits
Receipts of grants
Payment for expenses relating to Farm-In
Other income
Proceeds from legal dispute
Net cash flows from investing activities
Net cash flows from operating activities
Cash flows from financing activities
Repayment of lease liabilities
Cash flows from investing activities
Net cash flows from financing activities
Payment for plant and equipment
Payments for security deposits
Payment for expenses relating to Farm-In
Net cash flows
Cash and cash equivalents
Net cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at beginning of period
Net change in cash for period
Repayment of lease liabilities
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the financial year
Net cash flows from financing activities
Net cash flows
Cash and cash equivalents
Cash and cash equivalents at beginning of period
Net change in cash for period
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of the financial year
(1,623,390)
37,553
(5,297)
-
30 JUN 2023
-
1,220,912
(370,222)
(1,623,390)
37,553
(3,736)
(5,297)
(744)
-
(105,491)
-
(109,971)
1,220,912
(370,222)
(66,628)
(66,628)
(3,736)
(744)
(546,821)
(105,491)
(109,971)
4,445,411
(546,821)
(66,628)
233,547
(66,628)
4,132,137
(546,821)
4,445,411
(546,821)
233,547
4,132,137
(2,997,664)
336
(8,472)
25,850
30 JUN 2022
450
4,017,140
1,037,640
(2,997,664)
336
(12,727)
(8,472)
96,311
25,850
-
450
83,584
4,017,140
1,037,640
(58,381)
(58,381)
(12,727)
96,311
1,062,844
-
83,584
3,076,877
1,062,844
(58,381)
(305,690)
(58,381)
4,445,411
1,062,844
3,076,877
1,062,844
(305,690)
4,445,411
The above statement of consolidated statement of cash flows should be read in conjunction with the accompanying notes
The above statement of consolidated statement of cash flows should be read in conjunction with the accompanying notes
34 | VIKING MI NE S LT D
Notes to the Financial Statements
30 June 2023
1. General information
Viking Mines Limited ('the Company') as a consolidated entity consisting of Viking Mines Limited and the entities it
controlled at the end of, or during, the year ('the consolidated entity'). Viking Mines Limited is a listed public
Company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of
business is 15-17 Old Aberdeen Place, West Perth, Western Australia 6005.
A description of the nature of the consolidated entity'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 22 September 2023.
The Directors have the power to amend and reissue the financial statements.
1.1 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').
The accounting policies have been consistently applied by all entities included in the Group and are consistent with
those applied in the prior year. Discussion of the Group’s significant accounting policies are located within the applicable
notes to the financial statements.
Historical cost convention
The financial statements have been prepared under the historical cost convention.
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 consolidated entity'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 4.
2. Operating segment
The consolidated entity is organised into one operating segment, being the exploration in Western Australia. 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. Accordingly, under the management approach outlined only one operating segment has been identified
and no further disclosures are required.
The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies
adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.
The information reported to the CODM is on a monthly basis.
3. Summary of significant accounting policies
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 wholly within 12 months of the reporting date are measured at the amounts expected to be paid when
the liabilities are settled.
2023 ANNUAL REP ORT | 35
Notes to the Financial Statements 30 June 2023
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
are measured at the present value of expected future payments to be made in respect of services provided by
employees up to the reporting date using the projected unit credit method. Consideration is given to expected future
wage and salary levels, experience of employee departures and periods of service. Expected future payments are
discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
Share-based payments
Share-based compensation benefits are provided to employees via the employee performance rights plan and
options approved by the Board from time to time.
The fair value of options and performance rights granted is recognised as an employee benefit expense with a
corresponding increase in equity. The fair value is measured at grant date and recognised over the period during
which the Directors or employees become unconditionally entitled to the options or performance rights. The fair
value at grant is independently valued using Monte Carlo pricing model.
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.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Viking Mines 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 shares assumed to have been issued for no consideration in relation to
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.
Application of new or revised Accounting Standards
New and revised AASBs affecting amounts reported and/or disclosures in the financial statements
In the current year, the Company has applied a number of new and revised AASBs issued by the Australian Accounting
Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 July 2022.
The amendments did not have a significant impact on the Group’s financial statements.
36 | VIKING M INE S LT D
Notes to the Financial Statements 30 June 2023
New Accounting Standards issued but not yet effective.
There are no accounting standards that are not yet effective and that are expected to have a material impact to the
Company in the current or future reporting periods and on foreseeable future transactions.
Principles of consolidation
The consolidated financial statements comprise the financial statements of Viking Mines Limited and its controlled
entities as at 30 June 2023 (the consolidated entity).
The financial statements of the controlled entities are prepared for the same reporting period as the Parent, using
consistent accounting policies.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Viking Mines Limited's functional and
presentation currency. The functional currencies of the Company's foreign subsidiaries are United States Dollars
('USD').
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars 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 consolidated entity recognises revenue as follows:
Interest income
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using
the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Government grant income 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.
2023 ANNUAL REP ORT | 37
Notes to the Financial Statements 30 June 2023
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.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, short-term deposits 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
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Accounting policy for 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 consolidated entity 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 consolidated entity 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.
Exploration and evaluation assets
Exploration and evaluation assets acquired
Exploration and evaluation assets comprise of acquisition of mineral rights (such as joint ventures) and fair value (at
acquisition date) of exploration and expenditure assets from other entities. As the assets are not yet ready for use
they are not depreciated. Exploration and evaluation assets are assessed for impairment if:
•
•
the period for which the Group has the right to explore in the specific area has expired during the period or
will expire in the near future, and is not expected to be renewed; or
substantive expenditure on further exploration for and evaluation of mineral resources in the specific area
is neither budgeted nor planned; or
• exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resources and the entity has decided to discontinue such activities
in the specific area; or
•
sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the
carrying amount of the exploration and evaluation asset is unlikely to be recovered in full, from successful
development or by sale; or
38 | VIKING M INE S LT D
Notes to the Financial Statements 30 June 2023
• other facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation costs
Exploration and evaluation costs for an area of interest in the early stages of the project life are expensed as they are
incurred except for acquisition costs, until they satisfy the requirements that are stated below.
Exploration and evaluation costs are capitalised in an identifiable area of interest upon announcement of a JORC
2012 compliant resource and costs will be amortised in proportion to the depletion of the mineral resources at the
commencement of production. Costas are only capitalised that are expected to be recovered either through
successful development or sale of the relevant mining interest. 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.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the consolidated entity prior to the end of the financial period that are unpaid and arise when the
consolidated entity becomes obliged to make future payments in respect of the purchase of these goods and
services.
4. Critical accounting judgements, estimates and assumptions
Exploration and evaluation costs have been expensed on the basis that the Company has not achieved a probable
mineral resource that is capable of supporting a mining operation.
Note 5. Other income
ATO fuel rebate
Interest revenue
Proceeds from sale and legal cost reimbursement
Other revenue
Total Other income
Note 6. Earnings per share
2023
$
-
(37,553)
(4,388,333)
-
(4,425,886)
2022
$
(21,650)
(336)
(4,133,370)
(450)
(4,155,806)
2023
$
2022
$
Profit after income tax attributable to the owners of Viking Mines Limited
1,212,405
1,389,400
Basic earnings per share - cents
Diluted earnings per share - cents
Weighted average number of ordinary shares used in calculating basic
earnings per share
Weighted average number of ordinary shares used in calculating diluted
earnings per share
0.12
0.11
0.14
0.12
1,025,258,431
1,027,592,678
161,130,258,431
171,124,263,910
16 20,000,000 options (convertible to 20,000,000 ordinary shares) were not included in the calculation of diluted earnings per share because they
are antidilutive for the period presented. 5,000,000 options could potentially dilute basic earnings per shares in the future.
17 35,000,000 options (convertible to 35,000,000 ordinary shares) were not included in the calculation of diluted earnings per share because they
are antidilutive for the period presented. 20,000,000 options could potentially dilute basic earnings per shares in the future.
2023 ANNUAL REP ORT | 39
Notes to the Financial Statements 30 June 2023
Note 7. Income tax expense
2023
$
2022
$
Profit before income tax attributable to the owners of Viking Mines Limited
2,225,252
1,389,400
Tax at statutory tax rate of 25%
556,313
347,350
Tax effect of amounts which are not deductible/ (taxable) in calculating taxable
income:
Impairment of assets
Share-based payments
Forex movement
Other net expenses (deductible)/not deductible
Sub Total
Difference in overseas tax rates
Profits covered by losses
Adjustment in respect of deferred tax liability
Income tax expense
Tax losses not recognised
15,655
-
45,433
(16,681)
600,720
222,525
15,655
40,400
(98,040)
(25,726)
279,639
-
(823,245)
(279,639)
1,012,847
1,012,847
2023
$
-
-
2022
$
Unused tax losses (Australia) for which no deferred tax asset has been
recognised
Potential tax benefit @ 25% (2022: 25%)
5,243,105
5,843,825
1,310,776
1,460,956
The above potential tax benefit for the tax losses has not been recognised in the statement of financial position as it is
not considered probable that sufficient taxable amounts will be available in future periods with which to be offset.
Deferred tax assets not recognised
2023
$
2022
$
Deferred tax assets not recognised comprises temporary differences attributable
to:
Employee benefits
11,352
9,177
The above potential tax benefit, which excludes tax losses, for deductible temporary differences has not been
recognised in the statement of financial position as the recovery of this benefit is uncertain.
The Group’s accounting policy for taxation requires management’s judgment in assessing whether deferred tax assets
and certain deferred tax liabilities are recognised on the Statement of Financial Position. Judgement is required in
accounting for income taxes due to the complexity of legislation and the jurisdiction to which it relates. Deferred tax
assets related to carried forward tax losses are recognised on the basis that the Group will satisfy applicable tax
legislation requirements at the time of proposed recoupment of those tax losses.
These judgments and assumptions are subject to risk and uncertainty, hence there is a possibility that changes in
circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities
recognised in the Consolidated Statement of Financial Position and the amount of other tax losses and temporary
differences not yet recognised. In such circumstances, some or all of the carrying amounts of recognised deferred tax
assets and liabilities may require adjustment, resulting in a corresponding credit or charge to the Consolidated
Statement of Comprehensive Income.
40 | VIKING MI NE S LTD
Notes to the Financial Statements 30 June 2023
Where it has been determined that the availability of tax losses is uncertain, the Group recognises tax liabilities until
such time as a determination has been made or the uncertainty removed.
Note 8. Cash and cash equivalents
Cash at bank
Note 9. Other receivables
Current assets
Prepayments
GST
Security deposits
Total current assets
Note 10. Right of use assets
Non-current assets
Lease Contract – right of use asset
Less: Accumulated depreciation
Total Non-current assets
The lease contract relates to the Perth office principal place of business.
Note 11. Exploration and evaluation
2023
$
2022
$
4,132,137
4,445,411
2023
$
9,335
76,210
36,475
122,020
2023
$
2022
$
8,000
22,282
35,781
66,063
2022
$
187,857
(127,468)
60,389
187,857
(62,619)
123,008
2023
$
2022
$
Exploration and evaluation acquired WA tenement assets
4,100,000
4,100,000
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are
set out below:
Western Australia
Total
Gold Project
$
$
Balance at 30 June 2022
4,100,000
4,100,000
Additions through purchase of WA tenement assets
-
-
Balance at 30 June 2023
4,100,000
4,100,000
Note 12. Trade and other payables
Trade payables
Accrued expenses
Other payables
Total
2023
$
679,984
332,436
12,147
1,024,567
2022
$
14,963
341,316
27,146
383,425
2023 ANNUAL REP ORT | 41
Notes to the Financial Statements 30 June 2023
Note 13. Employee benefits
Current liabilities
Non-current liabilities
Total employee benefits
2023
$
31,628
13,781
45,409
2022
$
29,463
7,245
36,708
Provision for employee benefits represents amounts accrued for annual leave and long service leave.
The current portion of this provision includes the total amount accrued for annual leave entitlements; the amounts
accrued for long service leave entitlements that have vested due to employees having completed the required
period of service; and also those where employees are entitled to long service leave pro-rata payments in certain
circumstances.
Provision for non-current employee benefits represents amounts accrued for long service leave entitlements that have
not vested due to employees not having completed the required period of service.
Based on past experience, the consolidated entity does not expect the full amount of annual leave or long service leave
balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be
classified as current liabilities since the consolidated entity does not have an unconditional right to defer the
settlement of these amounts in the event employees wish to use their leave entitlement.
Note 14. Lease liabilities
Current liabilities
Non-current liabilities
Total lease liabilities
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and
previous financial year are set out below
Opening balance
Repayment of lease liabilities
Closing balance
The lease liability relates to the Perth office principal place of business.
Refer to note 20 for further information on financial instruments.
2023
$
69,489
-
69,489
2023
$
136,118
(66,629)
69,489
2022
$
66,812
69,306
136,118
2022
$
194,498
(58,380)
136,118
Note 15. Issued capital
2023
Shares
2022
Shares
2023
$
2022
$
Ordinary shares – fully paid
1,025,258,431
1,025,258,431
31,902,027
31,902,027
Ordinary shares
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at shareholders’ meetings. In the event of winding up of the parent entity, ordinary shareholders rank after
all creditors and are fully entitled to any proceeds on liquidation.
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.
42 | VIKING M INE S LTD
Notes to the Financial Statements 30 June 2023
Share buy-back
There is no current on-market share buy-back.
Options
15,000,000 Unlisted Options issued and vesting immediately on issue date 27 November 2020, to current and former
Directors, each with an exercise price of $0.0300 per option, expired on 15 December 2022.
No options were issued in the financial year.
Movements in options:
Details
Balance
Expired
Balance
Performance shares
Date
1 July 2022
15 December 2022
30 June 2023
Number of options
20,000,000
(15,000,000)
5,000,000
85,000,000 Performance Shares were issued to the vendors of Red Dirt Mining Pty Ltd (RDM) on 1 February 2021 as
consideration for 100% of the issued shares of RDM. These are convertible into one share at nil consideration, subject
to satisfaction of any one of the following vesting conditions:
•
•
•
•
200koz inferred resource (gold) at above 4g/t underground or 2g/t open pit combined calculated (for both
underground or open pit combined) at a cut-off of 0.5g/t;
undertaking 5,000 metres of drilling on the project with 6 holes of more than 8g/t over 3 metres each;
establishment of a toll treatment or ore production agreement with a mill within 180km of project; and
completion of a feasibility study with a net present value of not less than $50 million using a discount rate of
10%.
The milestone must be achieved by 1 February 2026. On conversion, each of the Shares will rank equally in all aspects
with all existing Shares previously issued by the Company.
Movements in performance shares:
Details
Balance
Issue
Balance
Movements in performance rights:
Date
1 July 2022
30 June 2023
Number of performance shares
85,000,000
-
85,000,000
These performance rights are in relation to Julian Woodcock’s service agreement. Further details can be found in note
19.
Details
Balance
Issue
Balance
Capital risk management
Date
1 July 2022
30 June 2023
Number of performance rights
20,000,000
-
20,000,000
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going
concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an
optimum capital structure to reduce the cost of capital.
2023 ANNUAL REP O RT | 43
Notes to the Financial Statements 30 June 2023
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 consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or Company was seen
as value adding relative to the current Company's share price at the time of the investment. The consolidated entity
is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing
businesses to maximise synergies.
Note 16. Reserves
Foreign currency reserve
Share-based payments reserve
Total reserves
Foreign currency reserve
2023
$
(847,114)
258,824
(588,290)
2022
$
(982,683)
258,824
(723,859)
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.
Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:
Consolidated
Foreign currency
reserve
Share-based payments
reserve
Balance at 1 July 2022
Foreign currency
translation
$
(982,683)
135,569
Balance at 30 June 2023
(847,114)
$
258,824
-
258,824
Total
$
(723,859)
135,569
588,290
Note 17. Accumulated losses
Accumulated losses at the beginning of the financial year
Profit after income tax expense for the year
Adjustments for:
Share-based payment
Non-controlling interest
Accumulated losses at the end of the financial year
2023
$
2022
$
(22,987,260)
1,212,405
(23,999,255)
1,389,400
-
-
(21,774,855)
363,820
(741,225)
(22,987,260)
Note 18. Dividends
There were no dividends paid, recommended or declared during the current or previous financial year.
44 | VIKING M INE S LT D
Notes to the Financial Statements 30 June 2023
Note 19. Share-based payments
Options
Options
Unlisted Director Options, issued
as part of share-based
compensation for remuneration
Share-based Payments
Class
Exercise price
Number under
option
Vested on 15 December 2021
$0.0300
5,000,000
Expiring on 15 December 2023
Please see report titled Shareholder Accounts for a breakdown of shareholder account activity.
Performance Rights
Per Julian Woodcock's service agreement as Chief Executive Officer commencing 4 January 2021, the following
performance right tranches are available subject to achievement of the milestones:
(a) 4,000,000 performance rights upon achievement of performance milestone - resource target - attainment of 200koz;
(b) 4,000,000 performance rights - upon achievement of performance milestone - project acquisition - delivery M&A to
achieve one of the hurdles: 1. >50koz ; 2. >$2m acq costs; 3. >$2m JV earn in spend;
(c) 4,000,000 performance rights - upon achievement of performance milestone - share price tranche 1 $0.10;
(d) 4,000,000 performance rights - upon achievement of performance milestone - share price tranche 2 $0.15; and
(e) 4,000,000 performance rights - upon achievement of performance milestone - share price tranche 3 $0.20
Note 20. Financial instruments
Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk,
price risk and interest rate risk) and liquidity risk. The consolidated entity's overall risk management program
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial
performance of the consolidated entity. The consolidated entity 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, ageing
analysis for credit risk and beta analysis in respect of investment portfolios to determine market 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 consolidated
entity and appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks
within the consolidated entity's operating units. Finance reports to the Board on a monthly basis.
Market risk
Foreign currency risk
The consolidated entity 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. As each of the individual entity within the group
primarily transact in their own respective functional currency, foreign currency risk is deemed to be minimal.
Price risk
The consolidated entity is not exposed to any significant price risk.
Interest rate risk
2023 ANNUAL REP O RT | 4 5
Notes to the Financial Statements 30 June 2023
Interest rate risk is deemed to be minimal as the consolidated entity exposure on interest risk mainly on its cash at
bank.
Liquidity risk
The consolidated entity is not exposed to any significant liquidity risk. The consolidated entity 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 consolidated entity's remaining contractual maturity for its financial instrument
liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal
cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying
amount in the statement of financial position.
2023
Weighted average
interest rate
1 year or less
Between 1 and 2
years
Non-derivatives
Non-interesting bearing
Trade payables
Other payables
Interest bearing - variable
Lease liability
Total derivatives
-
-
5%
1,012,420
12,147
69,489
1,094,056
-
-
-
-
2022
Weighted average
interest rate
1 year or less
Between 1 and 2
years
Non-derivatives
Non-interesting bearing
Trade payables
Other payables
Interest bearing - variable
Lease liability
Total derivatives
-
-
5%
356,279
27,147
66,811
450,236
-
-
72,100
72,100
Remaining
contractual
maturities
1,012,420
12,147
69,489
1,094,056
Remaining
contractual
maturities
356,279
27,147
138,911
522,336
Note 21. Key Management Personal disclosures
The following persons were Directors of Viking Mines Limited during the financial year:
Charles Thomas - Non-Executive Chairman
Julian Woodcock - Managing Director and CEO
Michael Cox - Non-Executive Director Compensation
46 | VIKING M INE S LT D
Notes to the Financial Statements 30 June 2023
The aggregate compensation made to Directors and other members of Key Management Personnel of the
consolidated entity is set out below:
Short term employee benefits
Post employment benefits
Long-term benefits
Share-based payments
Total
Note 22. Remuneration of Auditors
2023
2022
$
$
349,000
408,736
36,645
13,781
41,081
6,566
27,146
130,200
426,572
586,583
2023
$
2022
$
During the financial year the following fees were paid or payable for services provided by the audit firms listed
below:
-
-
34,646
34,646
9,000
15,000
-
24,000
Audit services – Rothsay Auditing
Audit services – Rothsay Audit & Assurance Pty Ltd
Audit services – BDO (Audit) WA Pty Ltd
Total Remuneration of auditors
Note 23. Contingent assets
The Company had no contingent assets as at 30 June 2023.
Note 24. Contingent liabilities
The Company had no contingent liabilities as at 30 June 2023.
Note 25. Commitments
The Company is required to spend $720K over the next 12 months to achieve completion of Stage 2 to acquire
a further 24% interest in the Canegrass Battery Minerals Project (further details provided in the Review of
Operations Report and the Directors’ Report). The Company had no capital commitments as at 30 June 2022.
Note 26. Related party transactions
Parent entity
Viking Mines Limited is the Parent Entity.
Subsidiaries
Interests in subsidiaries are set out in note 28.
Key Management Personnel
Disclosures relating to Key Management Personnel are set out in note 21 and the remuneration report included in the
Directors' report.
2023 ANNUAL REP ORT | 47
Notes to the Financial Statements 30 June 2023
Transactions with related parties
The following transactions occurred with related parties:
Consulting fees paid to GTT Ventures Pty Ltd, a company related to Charles
Thomas, for professional and consulting fees relating to capital raising services
2023
$
-
2022
$
50,000
Wages paid to administration staff, an employee related to Julian Woodcock
460
586
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.
Loans 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 27. Parent information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
2023
$
2022
$
318,547
(2,289,902)
Parent
2023
$
Parent
2022
$
4,137,029
4,466,386
21,185,012
20,341,629
(975,051)
(455,666)
(1,058,321)
(533,485)
31,902,027
31,902,027
258,824
258,824
(12,034,160)
(12,352,707)
20,126,691
19,808,144
Profit/(loss) after income tax
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity:
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
48 | VIKING M INE S LTD
Notes to the Financial Statements 30 June 2023
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 2023 and 30 June 2022.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1,
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.
Note 28. 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 1:
Name
Principal place of
business/country of
incorporation
Ownership interest
Associated Gold Fields Pty Ltd
Australia
Resolute Amansie Ltd*
Abore Mining Company Ltd*
Kiwi Goldfields Ltd*
Red Dirt Mining Pty Ltd
Viking Critical Minerals Pty Ltd^
Ghana
Ghana
Ghana
Australia
Australia
* 100% of rights to profits
^ Incorporation date of 5 October 2022
2023
100%
90%
90%
90%
100%
100%
2022
100%
90%
90%
90%
100%
0%
The only transactions between Viking Mines Limited and its controlled entities during this financial year consisted of
loans between Viking Mines Limited and its controlled entities.
Note 29. Events after the reporting period
On 16 August 2023 the Company completed the first stage of its Farm-In Agreement (FIA) with Red Hawk Mining Limited
(formerly Flinders Mines Limited) and earnt a 25% equity stake in the Canegrass Battery Minerals Project (Canegrass).
The Company’s decision to proceed with Stage 2 of the FIA follows the satisfactory completion of the Stage 1
commitment of $1 million exploration expenditure, which required completion within 18 months of commencement of
the FIA. The Company has undertaken a rapid and aggressive period of exploration activity since entering into the
FIA comprising field mapping, geophysical surveys and modelling, Exploration Target Estimate, Metallurgical testwork
and drilling programmes encompassing 50 Reverse Circulation (RC) drillholes for 7,687m.
The results from the work completed to date have yielded excellent outcomes which support the Directors’ decision to
proceed to Stage 2. Stage 2 of the FIA will give the Company the right to earn a further 24% interest in the Project once
2023 ANNUAL REP O RT | 4 9
Notes to the Financial Statements 30 June 2023
total exploration expenditure reaches $2 million on the Project and is to be completed over the next 12 months.
A settlement payment of US$2.12M (AUD3.2M) was received subsequent to the end of the reporting period which the
Company has accepted as full and final payment against unpaid proceeds of the sale of the Akoase Gold Project.
No other matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly
affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs
in future financial years.
Note 30. Reconciliation of loss after income tax to net cash used in operating
activities
2023
2022
$
$
Profit/(loss) after income tax expense for the year
1,212,405
1,389,400
Adjustments for:
Depreciation and amortisation
Share-based payments
Foreign exchange differences
Other non-cash items
Change in operating assets and liabilities:
Decrease/(increase) in other receivables
Increase in prepayments
Increase/(decrease) in trade and other payables
Increase/(decrease) in employee benefits
Net cash used in operating activities
Note 31. Options
75,346
62,619
-
161,600
(97,979)
(279,712)
2,154,574
(116,230)
(53,928)
198,799
(1,335)
301
641,142
(369,089)
8,701
(10,048)
370,222
1,037,640
Options outstanding at the end of the financial period have the following expiry date and exercise prices:
Option
Class
Unlisted Director Options, issued as
part of share-based compensation for
remuneration
Vested on 6 Dec 2021
Expiring on 6 Dec 2023
Exercise
price
$0.0300
Number under
option
5,000,000
A share option plan has been established by the consolidated entity and approved by shareholders at a general
meeting, whereby the consolidated entity may, at the discretion of the Nomination and Remuneration Committee,
grant options over ordinary shares in the Company to certain key management personnel of the consolidated entity.
The options are issued for nil consideration and are granted in accordance with performance guidelines established
by the Nomination and Remuneration Committee.
Set out below are summaries of options granted under the plan:
50 | VIKING M INE S LT D
Notes to the Financial Statements 30 June 2023
Number of options Weighted average
exercise price
2023
20,000,000
-
15,000,000
5,0000,000
2023
$0.030
$0.030
$0.030
$0.030
Number of
options
2022
Weighted
average exercise
price
2022
30,000,000
$0.030
5,000,000
15,000,000
20,000,000
$0.030
$0.030
$0.030
Outstanding at beginning of
the period
Granted
Expired
Outstanding at end of the
period
2023
Grant date Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
27/11/2020
15/12/2022
$0.030
15,000,000
30/11/2021
15/12/2023
$0.030
5,000,000
Total
20,000,000
-
-
-
-
-
-
Expired/
forfeited/
other
(15,000,000)
-
Balance at
the end of
the year
-
5,000,000
(15,000,000)
5,000,000
Weighted average exercise price = $0.030
2022
Grant date Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/other
06/12/2018 06/12/2021
$0.030
15,000,000
27/11/2020 06/12/2021
$0.030
30/11/2021 15/12/2023
$0.030
15,000,000
-
-
-
5,000,000
Total
30,000,000
5,000,000
-
-
-
-
Weighted average exercise price = $0.030
Set out below are the options exercisable at the end of the financial year:
Grant date
Expiry date
27 November 2020
15 December 2022
30 November 2021
15 December 2023
Total
2023
Number
-
5,000,000
5,000,000
Balance at
the end of
the year
-
15,000,000
5,000,000
(15,000,000)
-
-
(15,000,000)
20,000,000
2022
Number
15,000,000
5,000,000
20,000,000
2023 ANNUAL REP O RT | 51
Notes to the Financial Statements 30 June 2023
Directors’ Declaration
Directors’ Declaration
30 June 2023
30 June 2023
In the Directors' opinion:
•
•
•
•
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards,
the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the consolidated entity's financial position
as at 30 June 2023 and of its performance for the financial year ended on that date;
at the date of declaration, 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
Charles Thomas
Non-Executive Chairman
27 September 2023
52 | VIKING M INE S LT D
Independent Auditor's Report to the Members of
Viking Mines Limited
30 June 2023
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Viking Mines Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Viking Mines Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2023, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
(ii)
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its
financial performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
2023 ANNUAL REP ORT | 53
Independent Auditor's Report to the Members of
Viking Mines Limited
30 June 2023
Carrying value of exploration and evaluation assets
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 11 to the Financial Report, the
Our procedures included, but were not limited to the
carrying value of capitalised exploration and evaluation
following:
expenditure represents a significant asset of the
Group.
•
Obtaining a schedule of the areas of interest
held by the Group and assessing whether the
Refer to Note 3 of the Financial Report for a
rights to tenure of those areas of interest
description of the accounting policy and significant
remained current at balance date, which
judgments applied to capitalised exploration and
included obtaining and assessing supporting
evaluation expenditure.
documentation such as license status
In accordance with AASB 6 Exploration for and
records;
Evaluation of Mineral Resources (“AASB 6”), the
•
Considering the Group’s intention to carry
recoverability of exploration and evaluation
out significant ongoing exploration
expenditure requires significant judgment by
programmes in the respective areas of
management in determining whether there are any
interest by holding discussions with
facts or circumstances that exist to suggest that the
management, and reviewing the Group’s
carrying amount of this asset may exceed its
exploration budgets, ASX announcements and
recoverable amount. As a result, this is considered a
directors’ minutes;
key audit matter.
•
Considering whether any such areas of
interest had reached a stage where a
reasonable assessment of economically
recoverable reserves existed;
•
Considering whether any facts or
circumstances existed to suggest impairment
testing was required; and
•
Assessing the adequacy of the related
disclosures in Notes 3, 4 and 11 to the
Financial Report.
54 | VIKING M INE S LT D
Independent Auditor's Report to the Members of
Viking Mines Limited
30 June 2023
Other Matter
The financial report of Viking Mines Limited, for the year ended 30 June 2022 was audited by another
auditor who expressed an unmodified opinion on that report on 30 September 2022.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2023, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
2023 ANNUAL REP O RT | 55
Independent Auditor's Report to the Members of
Viking Mines Limited
30 June 2023
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 25 to 29 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Viking Mines Limited, for the year ended 30 June 2023,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth,
27 September 2023
56 | VIKING M INE S LT D
Annual Mineral Resource and Ore
Reserves Statement
Annual Mineral Resource and Ore Reserves Statement
30 June 2023
30 June 2023
The Company entered into binding agreements to acquire 99% of the Canegrass Battery Minerals Project on 30 November
2022. At that time, an Inferred Mineral Resource had been estimated over the Fold Nose and Kinks deposits for 79Mt at
0.64% Vanadium Pentoxide (V2O5) for 1.1 billion pounds of contained V2O5.
The Mineral Resource estimate released on 30 November 2022 was prepared and disclosed under the JORC Code 2012
Edition. The Company confirms that it is not aware of any new information or data that materially affects the Mineral
Resource as reported on 30 November 2022 and all material assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue to apply and have not materially changed.
The Company carried out an annual review of its Mineral Resources and Ore Reserves, as required by the ASX Listing Rules.
The review was carried out as at 30 June 2023.
Canegrass Battery Minerals Project Inferred Mineral Resources as at 30 June 2023
Deposit
Fold Nose
JORC
Classification
Inferred
Tonnage
(Mt)
59
Kinks
Inferred
TOTAL
20
79
V2O5 %
Fe %
TiO2 %
0.66
0.57
0.64
30.5
27.4
29.7
6.5
5.5
6.0
Al2O3
%
11.9
13.0
12.2
P
%
0.006
0.009
0.007
SiO2 %
22.9
25.9
23.6
LOI
%
2.9
3.1
3.0
Table 1; Canegrass Project Vanadium Mineral Resource estimate, 0.5% V2O5 cut-off grade, >210m RL (due to the effects of
rounding, the total may not represent the sum of all components).
Estimation Governance Statement
The Company ensures that all Mineral Resource and Ore Reserves estimations are subject to appropriate levels of
governance and internal controls.
Exploration results are collected and managed by an independent competent qualified geologist. All data collection
activities are conducted to industry standards based on a framework of quality assurance and quality control protocols
covering all aspects of sample collection, topographical and geophysical surveys, drilling, sample preparation, physical and
chemical analysis and data and sample management.
Mineral Resource and Ore Reserves estimates are prepared by appropriately qualified, independent Competent Persons.
If there is a material change in the estimate of a Mineral Resource or Ore Reserves, the estimate and supporting
documentation in question is reviewed by a suitable qualified independent Competent Persons and announced to the ASX
in accordance with the Listing Rules.
The Company reports its Mineral Resources and Ore Reserves on an annual basis in accordance with JORC Code 2012.
Competent Person’s Statement
The information in this report that relates to Mineral Resources is based on, and fairly reflects, information compiled by Mr
Aaron Meakin, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Meakin is
a consultant to Red Hawk Mining Ltd and Viking Mines Ltd, employed by CSA Global Pty Ltd, independent mining industry
consultants. Mr Meakin has sufficient experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 edition of
the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr
Meakin approves of, and consents to, the inclusion of the information in this Annual Mineral Resource Statement and the
Annual Mineral Resource Statement as a whole, in the form and context in which it appears.
2023 ANNUAL REP O RT | 57
Shareholder Information
Shareholder Information
30 June 2023
30 June 2023
The following additional information is required by the Australian Securities Exchange in respect of ASX listed public
companies and is current as at 1 September 2023.
Fully Paid Ordinary Shares
The Company has 1,025,258,431 ordinary fully paid shares on issue, held by 1,451 shareholders. Each ordinary share is
entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a
show of hands.
Distribution of Shareholders
Category (size of holding)
Total Holders
Number
Ordinary
10,011
52,372
482,017
32,038,220
992,675,811
43
14
53
669
636
1,415
1,025,258,431
% Held of
Issued
Ordinary
Capital
0.00
0.01
0.05
3.12
96.82
100.00
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Unmarketable Parcels
Number of Shares
14,566,770
Holders
565
As at 1 September 2023, there were 565 shareholders holding less than a marketable parcel of shares.
Performance Shares
The Company has 85,000,000 Performance Shares on issue. Performance Shares do not entitle the holders to vote in respect
of that Performance Share, nor participate in dividends, when declared, until such time as the Performance Shares vest and
are subsequently registered as ordinary shares.
Performance Shares (expiring on 1 February 2026)
Category (size of holding)
Total Holders
Units
% Held
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
-
-
-
-
81
8
-
-
-
-
-
-
-
-
85,000,000
100.00
85,000,000
100.00
1. Vanguard Superannuation Pty Ltd
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