m
Annual Report
For the year ended 30 June 2023
The information contained in this report is to be read
in conjunction with Zeus Resources Limited's 2023
half year report and announcements to the market
Zeus Resources released during the period.
WWW.ZEUSRESOURCES.COM ABN 70 139 183 190
1
CORPORATE DIRECTORY
Directors
Mr Ding Xu – Non-Executive Chairperson
Mr Sitong Wu – Executive Director and Acting CEO
Mr Colin Mackay- Non-Executive Director (resigned 7 July 2023)
Mr Yicheng Zhang - Non-Executive Director
Mr Jian Liu – Executive Director and General Manager Geology and Exploration
Company Secretary
Mr Jian Liu
Principal registered office
Suite 107 Level 1
25-27 Berry Street
North Sydney
Telephone: +61 2 8488 3270
Email: info@zeusresources.com
Auditor
William Buck
29/66 Goulburn St
Sydney NSW 2000
Share Registry
Boardroom Pty Ltd
Level 8, 210 George Street
Sydney NSW 2000
Australian Securities Exchange
ASX Code – ZEU
Website: www.zeusresources.com
2
CONTENTS
CORPORATE DIRECTORY
CHAIRPERSON’S REPORT
REVIEW OF OPERATIONS REPORT
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
STATEMENT OF FINANCIAL POSITION
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR'S REPORT
TENEMENT SCHEDULE
GOVERNANCE STATEMENT
SHAREHOLDER INFORMATION
2
4
6
24
36
38
39
40
41
42
59
60
64
65
66
3
CHAIRPERSON’S REPORT
Dear Fellow Shareholders,
On behalf of your Board of Directors it is with great pleasure that I write to you and present the Zeus
Resources Ltd (“Zeus”, “ZEU” or “the Company”) Annual Report for the year ended 30 June 2023.
We are excited about the Company getting reinstated on ASX in February 2023 after an oversubscribed fund
raising of A$2,191,500.
We have been actively carrying out exploration on our tenements during this year and have applied for several
new tenements to build a more diversified asset portfolio after the reinstatement. The drilling program at our
highly prospective Mortimer Hills lithium project has returned encouraging results and the Company will
continue with further exploration at Mortimer Hills next financial year.
The successful Rights Issue has improved our financial position, thus providing sufficient funds for Zeus to
conduct more exploration work, keep the existing tenements in good order, look for new potential projects
and maintain a suitable working capital position.
Exploration
Exploration effort during the year has remained focused on the Company’s highly prospective Mortimer Hills
Project (E09/2147) and Wiluna Project (E53/1603).
During September 2022 a Drone Aerial Survey was carried out at Mortimer Hills. This survey covered
prospective areas for lithium, manganese and base metals with high-resolution photogrammetry received
covering Pegmatite Creek. Results of the survey indicate this method is highly effective in locating
outcropping pegmatites.
During May 2023 the Company completed the Phase 1 drilling program of 19 holes for a total of 948m. This
drilling intersected multiple thick pegmatites at Pegmatite Creek, Alpha, and Beta Prospects after which the
assay results were found to be un-mineralised. A further 11 holes for a total of 1,260m were then drilled
during July 2023 testing new targets that intersected more thick pegmatites at Alpha and Creek. Assays
results for this most recent drilling are still pending.
The Company completed two air-core drill holes at the Wiluna Lake Way (E53/1603) focussing on a sulphate of
potash (SOP) prospect during September 2022 for a total of 150m. Potassium and sulphate mineralisation was
confirmed by assays in the palaeochannel basal sand up to 8.5 km north of the Salt Lake Potash Ltd (ASX: SO4)
Lake Way SOP deposit.
The Company made 12 further tenement applications in Western Australia to expand our tenement portfolio.
4
CHAIRPERSON’S REPORT
Financial Position
The capital pressure faced by Zeus has been greatly eased by the placement in December 2022 and by
exercising of options in the second of the year ended 30th June 2023. As a result, the Company had $2,346,863
(2022: $976,127) cash in its bank accounts at the end of June with no debt.
We are delighted that investors have strongly supported our strategy. I look forward to sharing with you the
achievements of Zeus during the year ahead.
Mr. Ding Xu
Chairperson
Dated this 11th day of September, 2023
5
REVIEW OF OPERATIONS
Tenement Status
The company currently has a portfolio of fourteen tenements with two of the tenements granted, one in the
Mortimer Hills Project and one in the Wiluna Project, and the rest being pending applications. The twelve
tenement applications include seven surrounding the existing Mortimer Hills Project, one extending the
existing Wiluna Project, two for the new Blue Hill Project and two for the new Musgrave Project. Eight of the
tenement applications (E09/2791, E09/2798, E59/2806, E09/2865, E09/2874, E09/2886, E09/2891 and
E09/4148) are subject to the ballot. Tenement locations are shown in Figure 1 and detailed in Table 1.
Figure 1: Zeus project locations.
6
REVIEW OF OPERATIONS
Region Project Tenement Status
Holder
Comments
E 09/2147 Granted
Zeus Resources
Ltd
E09/2791
Application
Zeus Resources
Ltd
Applied on 27/02/2023. Subject to
ballot.
E09/2798
Application
Zeus Resources
Ltd
Applied on 27/02/2023. Subject to
ballot.
E09/2865
Application
Zeus Resources
Ltd
Applied on 18/06/2023. Subject to
ballot.
E09/2874
Application
Zeus Resources
Ltd
Applied on 18/06/2023. Subject to
ballot.
E09/2886
Application
Zeus Resources
Ltd
Applied on 18/06/2023. Subject to
ballot.
E09/2891
Application
Zeus Resources
Ltd
Applied on 18/06/2023. Subject to
ballot.
E09/2880
Application
Zeus Resources
Ltd
Applied on 18/06/2023. Subject to
ballot.
E 53/1603 Granted
E53/2197
Application
E59/2804
Application
Zeus Resources
Ltd
Zeus Resources
Ltd
Zeus Resources
Ltd
Applied on 27/10/2021.
Applied on 20/03/2023.
E59/2806
Application
Zeus Resources
Ltd
Applied on 20/03/2023. Subject to
ballot
E69/4147
Application
E69/4148
Application
Zeus Resources
Ltd
Zeus Resources
Ltd
Applied on 03/04/2023
Applied on 03/04/2023
Table 1. Zeus Resources Tenement Details
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7
REVIEW OF OPERATIONS
EXPLORATION
The Company completed two air-core drill holes at the Wiluna sulphate of potash (SOP) prospect in
September 2022.
During June 2023 the Company carried out the first phase of its drilling program at Mortimer Hills Project
along with reconnaissance geochemical sampling and field mapping. The second follow-up phase of
reconnaissance drilling with further reconnaissance geochemical sampling and field mapping was completed
in July 2023.
No other fieldwork was carried out during the year on the other tenements managed by Zeus Resources Ltd.
The Board continues to review all the Company’s projects and updating exploration plans accordingly.
Mortimer Hills Project (E09/2147, E09/2791, E09/2798, E09/2865, E09/2874, E09/2886, E09/2891 and
E09/4148)
The main Mortimer Hills Project comprises one granted exploration licence, E09/2147 and seven EL
applications, located 5 km east southeast along strike from DLI’s Yinnietharra Lithium Prospect (Figure 2).
As required by the WA Mines Department, the area covered by the Mortimer Hills tenement E09/2147 was
reduced by 40% from 15 graticular blocks to 9 graticular blocks in September 2022. Zeus believes that
relinquishing this area will not substantially reduce the prospectivity of the Project.
An Aerial Drone photogrammetry survey was carried out at Mortimer Hills by Pegasus Airborne Systems in late
September 2022. Further data processing in March 2023 produced a high-resolution map for future mapping
of possible pegmatite outcrops.
During March 2023 Company geologists carried out a field trip to the Mortimer Hills Project to confirm earlier
mapping of pegmatites, take selected rock chip, soil and stream sediment samples for chemical analysis and to
plan access for the first phase of the planned RC drilling program.
Figure 2: Zeus tenement locations at Mortimer Hills.
8
REVIEW OF OPERATIONS
Drilling Program
The Phase 1 RC drilling program was designed to be a reconnaissance program in which the Company
completed shallow RC drill holes to partially test mapped pegmatites that sporadically extend from the
western side of our Mortimer Hills tenement to the southeast with a potential strike length of up to 5 kms.
The Phase 1 drilling tested several outcropping pegmatites at the Alpha Prospect (Figure 3) on the western
boundary of the tenement, potentially along strike from the expanding resource of DLI’s Yinnietharra Lithium
Project (Figure 3). A geochemical anomaly from the March field visit was also drill-tested in the central Beta
Prospect area along with outcropping pegmatites further to the southeast at Pegmatite Creek (Figure 3).
Pegmatites were encountered in the drilling at all three prospect areas.
In total the Phase 1 drill program consisted of 19 shallow RC holes for a total of 948 m drilled at a declination
of 50-600 to depths of between 30-70 m with most holes drilled to 50 m. Ten of the holes encountered
pegmatites with some encountering several pegmatites in the same drill hole.
The Company has received all the assay results from this first phase drilling program with none of the
pegmatites logged in the drilling producing anomalous lithium (Li), tin (Sn) or tantalum (Ta) grades indicating
that these pegmatites were not derived from the nearby Thirty Three Supersuite granite intrusion but rather a
result of shearing of the host schists.
A second phase of drilling of 11 holes for a total depth of 1,260 m was completed during July 2023. This
drilling progressively tested new targets closer to the Thirty Three Supersuite granitic intrusives and the
Pooranoo Metamorphics contact not drilled in the first phase at the Alpha and Creek prospects that were
identified during field mapping. The holes were also drilled deeper than the earlier drilling to determine if the
grade improved with depth.
This second phase of drilling also intersected multiple thick pegmatites at Alpha and Creek prospects,
reconfirming the prospectivity of the Mortimer Hills tenement.
Intercepts include:
MHC004: 108 m in three pegmatites intercepted from 11 m and open at end of hole at Creek Prospect.
MHA011: 43 m in four pegmatites intercepted from 10 m at Alpha Prospect.
MHA010: 36.5 m in eight pegmatites intercepted from 4 m at Alpha Prospect.
MHC005: 30 m in one pegmatite intercepted from 4 m at Creek Prospect.
MHA013: 25 m in five pegmatites intercepted from 4 m at Alpha Prospect.
The Company advises that all the drill intersection widths pertaining to the above intercepts are apparent
only. As the orientation of the pegmatites is unknown so the true widths of the pegmatites will probably
be less than these apparent widths.
The Company notes that the presence of pegmatite rock does not necessarily indicate the presence of
lithium, cesium, tantalum (LCT) mineralisation. Laboratory chemical assays are required to determine the
grade of mineralisation.
All the samples have been despatched to ALS Global laboratory in Perth for chemical analysis with assay
results expected in September.
9
REVIEW OF OPERATIONS
Figure 3: Drill hole locations at Mortimer Hills.
10
REVIEW OF OPERATIONS
Field Mapping And Soil Geochemical Sampling
The Company collected a total of 187 surface geochemical samples during July across key regional structures
mapped by the Geological Survey of Western Australia (GSWA) to better target future drilling programs.
The pegmatites at the adjacent Yinnietharra Lithium project follow shears that potentially extend into the
Mortimer Hills tenement (Figure 4). Zeus’ soil geochemical sampling followed traverses across the interpreted
extension of these shears and other GSWA regional shears at approximately 50 m intervals. Encouragingly,
several substantial pegmatites were identified along these traverses at about the interpreted shears.
Depending on the assay results for these samples, further soil sampling is planned to in-fill the existing sample
lines and to test other structural targets within the Mortimer Hills tenement.
Figure 4: Soil geochemical sample locations on regional geology (after GSWA).
11
REVIEW OF OPERATIONS
New Tenement Applications – Gascoyne
The Company applied for two new Exploration Licences (E09/2791 and E09/2798) in February 2023. These
tenement applications cover approximately 18.69 km2 and 24.92 km2. The Company applied for another five
new Exploration Licences (E09/2865, E09/2874, E09/2886, E09/2891 and E09/4148) in June 2023 with a total
area of 59.5 km2 (Figure 5).
This tenement package covers Durlacher and Thirty-Three Supersuite granitic rocks that are regionally
associated with lithium and REE bearing pegmatites (Figure 5).
All these tenement applications will be subject to ballots to determine the successful applicants.
Region Project
Tenement ID Area (blocks) Area (km2) Date of lodgement Comments
E09/2791
E09/2798
6
8
18.69
27-02-2023
Subject to ballot
24.92
27-02-2023
Subject to ballot
E09/2865
10
31.3
19/06/2023
Subject to ballot
E09/2874
E09/2886
E09/2891
E09/2880
4
2
2
1
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m
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r
o
M
12.509
19/06/2023
Subject to ballot
6.257
19/06/2023
Subject to ballot
6.258
19/06/2023
Subject to ballot
3.13
19/06/2023
Subject to ballot
33
103.064
Table 2. Gascoyne tenement applications.
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G
Total
12
REVIEW OF OPERATIONS
Figure 5: Gascoyne tenement locations (geology after GSWA).
13
REVIEW OF OPERATIONS
Wiluna Project (E53/1603 & E53/2197)
Geological exploration is continuing at the Wiluna Project, near the township of Wiluna approximately 540 km
north of Kalgoorlie. The Zeus project is next to the Lake Way Project (previously owned by Salt Lake Potash
Limited (ASX: SO4)) (https://so4.com.au/projects/lake-way/ ) and recently acquired by Czech Investment
Company Seven Global Investments.
The Company completed two air core drill holes at the Wiluna Lake Way sulphate of potash (SOP) prospect
during September 2022 for a total of 150m. Up to 7m of basal sand aquifer was encountered, with flowing
brine sampled from the rig discharge cyclone. The air core rig reached refusal in silcrete whilst still in the basal
sand sequence. Seven samples were analysed for K, SO4, Mg, Na and Cl with drill hole LWP002 returning
assay results of up to 3,340 mg/L potassium and 24,000 mg/L sulphate (equivalent to 7.4 kg/m3 SOP). These
assay results confirm potassium and sulphate mineralisation in the palaeochannel basal sand up to 8.5 km
north of the Salt Lake Potash Ltd (ASX: SO4) Lake Way SOP deposit.
An objection was lodged by a third party in 2021 in relation to application E53/2197. The matter has been
heard in the Warden’s Court (Meekatharra) on 23 August 2023, and has been adjourned to 18 October 2023.
Further exploration and activities including a detailed gravity survey and drilling are subject to the granting of
the E53/2197.
Blue Hill Project (E59/2804 & E59/2806)
The Company applied for two new tenements (E59/2804 and E59/2806) approximately 60 km west of Paynes
Find (Figure 6). The tenements cover approximately 75 km2 and 15 km2 respectively of the Warriedar Fold Belt
greenstones and granitic rocks that are highly prospective for lithium and REE bearing pegmatites, gold, and
base metals.
E59/2806 application is subject to a ballot to determine the successful applicant.
Figure 6: Blue Hill tenement locations (geology after GSWA).
An objection to the application was lodged by a third party in April 2023, and the matter has been listed for
Mention Hearing on 23 November 2023 at the Mount Magnet Wardens Court.
14
REVIEW OF OPERATIONS
Musgrave Project (E69/4147 & E69/4148)
The Company has applied for two Exploration Licences (E69/4147 and E69/4148) in the Musgrave region of
Western Australia, approximately 1,000 km northwest of Kalgoorlie and 1,600 km northwest from Perth (Figure
7). The tenements cover approximately 281 km2 and 120 km2 respectively of the West Musgrave greenstones
and granitic rocks that are highly prospective for nickel, gold, REEs and base metals.
Figure 7: Musgrave tenements (geology after GSWA)
Narnoo Project
The Narnoo Project comprising a single Exploration Licence, E28/2097, was relinquished in May 2023 as the
Company will no longer actively explore for uranium.
15
REVIEW OF OPERATIONS
Appendix 1: Phase 1 and Phase 2 Drilling Summary - Mortimer Hills Project
Hole ID
East (m)
North
(m)
RL (m)
Dip
(0)
Azimuth
(0)
EOH
Depth
(m)
Prospect Phase
MH001
431557
7286308
322
MH002
431582
7286305
322
MH003
431608
7286300
322
MH004
431632
7286294
322
MH005
431651
7286293
322
MH006
431675
7286289
322
MH007
431376
7286412
322
MH008
431350
7286412
322
MH009
431326
7286411
322
MH010
431398
7286409
322
MHA001
429598
7287643
335
MHA002
429601
7287623
335
MHA003
429607
7287605
335
MHA004
429610
7287583
335
MHA005
429613
7287561
335
MHA006
429595
7287669
335
MHA007
429549
7287630
335
MHA008
429444
7287376
330
MHA009
429443
7287470
330
MHA010
429443
7287423
331
MHA011
429448
7287521
331
MHA012
429444
7287328
332
MHA013
429449
7287574
333
MHA014
429444
7287630
334
MHA015
429559
7287329
335
MHC001
432251
7285215
315
MHC002
432261
7285222
313
MHC003
432250
7285239
315
MHC004
432255
7285210
315
MHC005
432249
7285213
315
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-60
-75
-75
-75
-75
-75
-75
-75
-75
-60
-60
-50
-50
-60
-60
270
270
270
270
270
270
270
270
270
270
345
345
345
345
345
345
180
180
180
180
180
180
180
180
180
88
112
143
150
215
50
50
55
52
50
52
47
50
20
50
49
50
60
50
50
50
150
80
128
109
105
112
106
112
106
43
70
30
121
115
2,172
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
1
1
1
2
2
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B
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16
REVIEW OF OPERATIONS
Appendix 2: Best pegmatite intersections Phase 2 Drilling - Mortimer Hills Project
Hole ID
From
MHA010
4
34
47
50
60.5
71
75
90
MHA011
10
24
66.5
72
MHA013
4
55
61
86
94
MHC004
11
95
104
To
20
37
49
52
70
73
76
91
12.5
35
68
100
10
60
70
90
95
94
103
121
MHC005
4
34
Length
Dip
Azimuth
16.0
-70
180
3.0
2.0
2.0
9.5
2.0
1.0
1.0
36.5
2.5
11.0
1.5
28.0
43.0
6.0
5.0
9.0
4.0
1.0
25.0
83.0
8.0
17.0
108.0
30.0
30.0
-70
180
-70
180
-60
150
EOH*
-60
215
*EOH – End of Hole
1.
2.
The Company advises that all the drill intersection widths pertaining to the above intercepts are apparent only. As
the orientation of the pegmatites is unknown, the true widths of the pegmatites may be less than these apparent
widths.
The Company notes that the presence of pegmatite rock does not necessarily indicate the presence of lithium,
cesium, tantalum (LCT) mineralisation. Laboratory chemical assays are required to determine the grade of
mineralisation.
17
REVIEW OF OPERATIONS
JORC Code, 2012 Edition – Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria
Sampling
techniques
Drilling
techniques
Drill sample
recovery
Logging
JORC Code explanation
Commentary
• All drilling at Mortimer Hills was Reverse
Circulation (RC) used to obtain 1 m samples
from which approximately 2 kg was pulverised
to produce an aliquot for ICP assay carried out
to industry standard.
This annual report discusses the completion of
two recent drilling programs. No significant
anomalous results were obtained in the first
phase of drilling and assays are pending for the
second phase of drilling so this report does not
include grades of samples that have been
collected for chemical or physical testing for the
second phase drilling.
Pegmatites were identified in outcrop and in drill
cuttings.
•
•
• All drilling was face-sampling RC.
• Nature and quality of sampling (eg cut
channels, random chips, or specific
specialised industry standard
measurement tools appropriate to the
minerals under investigation, such as
down hole gamma sondes, or handheld
XRF instruments, etc). These examples
should not be taken as limiting the broad
meaning of sampling.
Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any
measurement tools or systems used.
•
• Aspects of the determination of
•
mineralisation that are Material to the
Public Report.
In cases where ‘industry standard’ work
has been done this would be relatively
simple (eg ‘reverse circulation drilling was
used to obtain 1 m samples from which 3
kg was pulverised to produce a 30 g
charge for fire assay’). In other cases more
explanation may be required, such as
where there is coarse gold that has
inherent sampling problems. Unusual
commodities or mineralisation types (eg
submarine nodules) may warrant
disclosure of detailed information.
• Drill type (eg core, reverse circulation,
open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc) and details (eg core
diameter, triple or standard tube, depth of
diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by
what method, etc).
• Method of recording and assessing core
• All the drill cuttings were logged by a geologist
and chip sample recoveries and results
assessed.
• Measures taken to maximise sample
recovery and ensure representative nature
of the samples.
• Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
• Whether core and chip samples have been
geologically and geotechnically logged to
a level of detail to support appropriate
Mineral Resource estimation, mining
studies and metallurgical studies.
•
to be stored as Excel spreadsheets.
Sample recoveries, by visual inspection, were
excellent.
• All the drill cuttings were visually quantitatively
logged by a site geologist. These logs are
stored as Excel spreadsheets.
In relation to the disclosure of visual
mineralisation, the Company cautions that visual
estimates of mineral abundance should never be
•
18
REVIEW OF OPERATIONS
Criteria
JORC Code explanation
Commentary
• Whether logging is qualitative or
quantitative in nature. Core (or costean,
channel, etc) photography.
• The total length and percentage of the
relevant intersections logged.
Sub-sampling
techniques and
sample
preparation
Quality of assay
data and
laboratory tests
Verification of
sampling and
assaying
Location of
data points
•
•
If core, whether cut or sawn and whether
quarter, half or all core taken.
If non-core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet
or dry.
• For all sample types, the nature, quality
and appropriateness of the sample
preparation technique.
• Quality control procedures adopted for all
sub-sampling stages to maximise
representivity of samples.
• Measures taken to ensure that the
sampling is representative of the in situ
material collected, including for instance
results for field duplicate/second-half
sampling.
• Whether sample sizes are appropriate to
the grain size of the material being
sampled.
• The nature, quality and appropriateness of
the assaying and laboratory procedures
used and whether the technique is
considered partial or total.
• For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations factors
applied and their derivation, etc.
• Nature of quality control procedures
adopted (eg standards, blanks, duplicates,
external laboratory checks) and whether
acceptable levels of accuracy (ie lack of
bias) and precision have been established.
• The verification of significant intersections
by either independent or alternative
company personnel.
• The use of twinned holes.
• Documentation of primary data, data
entry procedures, data verification, data
storage (physical and electronic)
protocols.
• Discuss any adjustment to assay data.
• Accuracy and quality of surveys used to
locate drill holes (collar and down-hole
considered a proxy or substitute for laboratory
analyses where concentrations or grades are the
factor of principal economic interest. Visual
estimates also potentially provide no
information regarding impurities or deleterious
physical properties relevant to valuations.
Laboratory assay results are required to
determine the widths and grade of the visible
mineralisation (if reported) in preliminary
geological logging. The Company will update
the market when laboratory analytical results
become available.
Samples were split at rig mounted cyclone.
The sample size is appropriate for the material
being sampled.
•
•
• Not applicable
• Not applicable
•
The drill collars were recorded using a handheld
GPS using GDA94 datum.
19
REVIEW OF OPERATIONS
Criteria
JORC Code explanation
Commentary
Data spacing
and
distribution
Orientation of
data in relation
to geological
structure
surveys), trenches, mine workings and
other locations used in Mineral Resource
estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic
control.
• Data spacing for reporting of Exploration
•
Results.
• Whether the data spacing and distribution
is sufficient to establish the degree of
geological and grade continuity
appropriate for the Mineral Resource and
Ore Reserve estimation procedure(s) and
classifications applied.
• Whether sample compositing has been
applied.
• Whether the orientation of sampling
•
achieves unbiased sampling of possible
structures and the extent to which this is
known, considering the deposit type.
If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
This drilling was reconnaissance only at widely
spaced locations.
• All the drill intersection widths pertaining to the
above intercepts are apparent only. As the
orientation of the pegmatites is unknown, the
true widths of the pegmatites will probably be
less than the apparent widths.
Sample security
• The measures taken to ensure sample
•
security.
The samples were delivered to the laboratory by
the site geologist for the first phase drilling
program and by couriers for the second phase
drilling.
Audits or
reviews
• The results of any audits or reviews of
• Not applicable
sampling techniques and data.
20
REVIEW OF OPERATIONS
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
JORC Code explanation
Commentary
Criteria
Mineral
tenement and
land tenure
status
• Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint
ventures, partnerships, overriding royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
• The security of the tenure held at the time
of reporting along with any known
impediments to obtaining a licence to
operate in the area.
Exploration
done by other
parties
• Acknowledgment and appraisal of
exploration by other parties.
Geology
• Deposit type, geological setting and style of
Drill hole
Information
Data
aggregation
methods
mineralisation.
• A summary of all information material to the
understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:
o easting and northing of the drill
hole collar
o elevation or RL (Reduced Level –
elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o hole length.
•
•
If the exclusion of this information is
justified on the basis that the information is
not Material and this exclusion does not
detract from the understanding of the
report, the Competent Person should clearly
explain why this is the case.
In reporting Exploration Results, weighting
averaging techniques, maximum and/or
minimum grade truncations (eg cutting of
high grades) and cut-off grades are usually
Material and should be stated.
• Where aggregate intercepts incorporate
short lengths of high grade results and
longer lengths of low grade results, the
procedure used for such aggregation should
be stated and some typical examples of
•
•
The company currently has a portfolio of
fourteen tenements with two of the
tenements granted, one in the Mortimer
Hills Project and one in the Wiluna Project,
and the rest being pending applications.
The twelve tenement applications include
seven surrounding the existing Mortimer
Hills Project, one extending the existing
Wiluna Project, two for the new Blue Hill
Project and two for the new Musgrave
Project.
Eight of the tenement applications
(E09/2791, E09/2798, E59/2806, E09/2865,
E09/2874, E09/2886, E09/2891 and
E09/4148) are subject to the ballot.
• Numerous exploration parties have
•
previously held portions of the areas
covered by the current Zeus tenure. None
of this exploration is recorded as being for
pegmatite hosted lithium and REE minerals,
the main focus of Zeus on the tenements.
• No other exploration companies generated
•
•
data that was used in this release.
Zeus is focussing on exploring for
pegmatites in its various tenements.
The Mortimer Hills drill hole data is
provided as a table at the end of the
announcement.
• Not applicable
21
REVIEW OF OPERATIONS
Criteria
JORC Code explanation
Commentary
such aggregations should be shown in
detail.
• The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
Relationship
between
mineralisation
widths and
intercept
lengths
Diagrams
Balanced
reporting
Other
substantive
exploration
data
• These relationships are particularly
• All the drill intersection widths pertaining
to the above intercepts are apparent only.
As the orientation of the pegmatites is
unknown, the true widths of the
pegmatites may be less than the apparent
widths.
• All the appropriate maps are provided in
the body of this announcement.
•
This annual report discusses the
completion of a recent reconnaissance
drilling programs and further planned
drilling and does not discuss selected assay
results.
• All the meaningful exploration data has
been included in the body of this report.
•
•
important in the reporting of Exploration
Results.
If the geometry of the mineralisation with
respect to the drill hole angle is known, its
nature should be reported.
If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole
length, true width not known’).
• Appropriate maps and sections (with scales)
and tabulations of intercepts should be
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
• Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low and
high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
• Other exploration data, if meaningful and
material, should be reported including (but
not limited to): geological observations;
geophysical survey results; geochemical
survey results; bulk samples – size and
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
Further work
• The nature and scale of planned further
• Once the tenement applications have been
work (eg tests for lateral extensions or
depth extensions or large-scale step-out
drilling).
• Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
granted, Zeus intend to carry out detailed
mapping and geochemical sampling to
locate any pegmatite outcrops.
• Another RC drilling program is planned to
further test mapped pegmatites along the
greenstone/granite contact at Mortimer
Hills.
22
REVIEW OF OPERATIONS
Competent Person Statement:
The information in this announcement that relates to the Exploration Results is based on information compiled
by Mr Phil Jones, who is a Member of the Australian Institute of Geologists (AIG) and Australian Institute of
Mining and Metallurgy (AusIMM). Mr Jones is an independent geological consultancy. Mr Jones does not nor
has had previously, any material interest in Zeus or the mineral properties in which Zeus has an interest. Phil
Jones’s relationship with Zeus is solely one of professional association between client and independent
consultant. Mr Jones has experience in exploration, prospect evaluation, project development, open pit and
underground mining and management roles. Mr Jones has worked in a wide variety of commodities including
gold, lithium, iron ore, phosphate, copper, lead, zinc, silver, nickel and silica in Australia, China, Kyrgyzstan,
Indonesia, New Zealand, Malaysia, Papua New Guinea, and Africa. Mr Jones 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’. Mr Jones consents to the inclusion in
this release of the matters based on his information in the form and context in which it appears.
23
DIRECTORS’ REPORT
Your Directors present their report together with the financial statements of the Company for the financial year
ended 30 June 2023.
Review of operations
During the past financial year, the Company focused on both geological exploration of current tenements and
prospective tenements by making 12 new tenement applications.
During the year, the Company committed to a number of drilling and surveying projects. The drilling occurred
in phases on the Mortimer Hill project and also there was drilling program completed at Wiluna Lake Way
project.
After the initial Mortimer Hill drone survey the Company has engaged in a program of works with Phase 1
completed in May 2023 and phase 2 completed in July 2023. The project costs were within budget and
efficiently executed. The project met with WA government tenement expenditure commitment requirements
and environmental and heritage guidelines.
Wiluna Project has been re-positioned as a Muriate of Potash project, and the Company will conduct more
exploration activities to test prospectivity of the tenement. The project met with WA government tenement
expenditure commitment requirements and environmental and heritage guidelines.
We anticipate that tenement E53/2197 will be granted in the next financial year and will be included in any
further exploration program of this area.
Results of Operations
For the year ended 30 June 2023 the Company recorded a loss of $888,383 (2022: Loss $437,302). There were
impairments made to tenement assets of $479,510 (2022: nil).
Total exploration expenditure for the year was $584,722 (2022: $601,718) of which $495,278 was capitalised to
exploration assets (2022: $498,825).
For the year ended 30 June 2023 the ASX share price of the Company decreased from opening at $0.089 per
share to close at $0.034 per share. The Company succeeded in having its listing reinstated on 7th Feb 2023.
Shares Registry
During the year ended 30 June 2023 the Company issued 219,150,000 (Rights Issue) shares at a price of $0.01
raising $2,191,500 in cash for the Company (2022: nil). The Company also granted 219,150,000 Rights Issue
Options at a price of $0.02. 18,981,000 options were exercised raising $379,620 in cash for the Company (2022:
$360,000).
Total number of shares on issue 30 June 2023 was 457,281,000 (2022: 219,150,000). The Company did not make
any payments for shares in the Company at a discount or premium to the traded price. (2022: Nil)
Options
During the year ended 30 June 2023 the Company issued 219,150,000 options at a price of $0.02 with an expiry
date of 7 February 2025 (Rights Issue Options). As at the end of the financial year ended 30 June 2023
18,981,000 had been exercised.
As at the date of this report:
• 2,000,000 Rights Issue Options were exercised subsequent to the year-end raising a further $40,000.
•
Total Rights Issue Options granted but not exercised was 198,169,000.
24
DIRECTORS’ REPORT
Significant changes in state of affairs
No significant changes were made to the structure and composition of the Board and management to 30 June
2023.
Principal activities
The principal activity of the Company during the year was the exploration for Lithium, Potash and other metal
resources and the assessment of options for investment in multi-commodity mining assets. The Company has
implemented changes to its exploration program to meet with the changing legislative environment for mining
uranium in Western Australia in the short term (mining uranium remains under a moratorium by the WA
Government unless an exemption has been granted). The Company operates as a for profit entity. No change in
the principal activity occurred during this period.
Likely developments and expected results of operations
The Company intends to continue its exploration activities on its existing projects and to acquire further suitable
projects for exploration as opportunities arise.
DIRECTORS
The Directors in office as at 30th June 2023:
Director
Mr. Jian Liu
Appointment Date
22 December 2020
Mr Yicheng Zhang
28 October 2021
Mr Colin Robert Mackay
22 December 2021
Mr Ding Xu
Mr Sitong Wu
4 April 2022
4 April 2022
Years Appointed
2
1
1
1
1
25
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS
Name: Mr Ding Xu
Title: Non-Executive Chairperson (appointed 4 April 2022)
Qualifications: MA Public Relations Management, Tongji University, China
Mr Xu has extensive experience in strategic mining investment as the Manager of the Department of Strategic
Development at China Metallurgical Geology Bureau (CMGB). Mr Xu was previously Chairperson of Guangxi
Xubao Mining Investment Co Ltd where he developed and managed various projects such as the multi-million
dollar Shuijingshan Mountain Mine. Mr Ding Wu is currently the Vice General Manager of Zhengyuan
International Mining Company Ltd.
Other current Directorships: none
Former Directorships (last 3 years): none
Interest in shares: 57,650,000 indirect held jointly with Mr Sitong Wu on behalf of Zhengyuan International
Mining Co. Ltd.
Interest in options: none
Contractual rights to shares: none
Special responsibilities: none
Name: Mr Sitong Wu
Title: Executive Director and Acting CEO (appointed 4 April 2022)
Qualifications: BSc Resource Exploration Engineering, Jilin University, China
Mr Sitong Wu holds a Bachelor of Science, with a major in Resource Exploration Engineering, and gained his
degree at Jilin University, China.
Mr Wu is an expert at prospecting for minerals. He successfully helped identify several high-value orebodies
including copper and gold, for Altay Zhengyuan International Mining Co., Ltd.
Mr Wu is the expert technician in the Department of Geology and Technology in Zhengyuan International
Mining Co Ltd (ZIMC), where he has identified and participated in developing several successful mines. He is in
charge of evaluating the economic value of different mining projects for ZIMC and Zeus resources Limited.
Other current Directorships: none
Former Directorships (last 3 years): none
Interest in shares: 57,650,000 indirect held jointly with Mr Ding Xu on behalf of Zhengyuan International Mining
Co. Ltd.
Interest in options: none
Contractual rights to shares: none
Special responsibilities: none
Name: Mr Colin Mackay
Title: Independent Non-Executive Director (appointed 6 December 2021, resigned 7 July 2023)
Qualifications: MA Economic history from Edinburgh University, Edinburgh, UK
Mr Mackay began his career in Hong Kong as a financial journalist, (SCMP and Asian Wall Street Journal), a
commodities trader (Bear Stearns Bank) and a stockbroker (Berisford Cresvale) specialising in resource stocks.
During the 1990s, Mr Mackay became Managing Director of Westminster Fund Management Gmbh, a German
company investing European capital into start-ups and small companies particularly in the mining sector. Mr
Mackay has successfully arranged or assisted with vital funding to acquire prospective projects for several ASX-
listed companies.
Other current Directorships: none
Former Directorships (last 3 years): none
Interest in shares: 19,600,000
Interest in options: 12,000,000
Contractual rights to shares: none
Special responsibilities: none
26
DIRECTORS’ REPORT
INFORMATION ON DIRECTORS continued.
Name: Mr Yicheng Zhang
Title: Non-Executive Director (appointed 28 October 2021)
Qualifications: BA Business Management and Information Technology, UTS, Sydney, Australia
Mr Zhang gained experience in the mining industry when he worked in Western Australia and successfully
facilitated the deal to acquire VDM Group, a mining service provider in trade and construction. As the General
Manager of Geolord Investment Group, the family enterprise, Mr Zhang has invested in and developed multiple
large property projects in Sydney, Auckland, and Christchurch. Meanwhile, as the General Manager of Chonwin
International business department, he is in charge of all business development and investment for the group in
Australia, New Zealand, and PNG.
Other current Directorships: Geolord Investment Group, Chonwin International NZ Ltd.
Former Directorships (last 3 years): none
Interest in shares: 57,534,500 on behalf of Vast Honour Global Ltd
Interest in options: none
Contractual rights to shares: none
Special responsibilities: none
Name: Mr Jian Liu
Title: Executive Director and Company Secretary (appointed 22 December 2022) (Company Secretary appointed
13 September 2021)
Qualifications: BSc Geology Ocean University, China. MSC Science and Project Management, Lancaster
University, Lancaster, UK
Mr Liu has a Bachelor of Science in Geology from the Ocean University of China and a Master of Science in
Project Management from Lancaster University, UK.
Mr Liu has been involved in exploration and development projects in China, Australia, Africa, and Southeast Asia
for over 10 years. Before joining Zeus, Mr Liu worked as Managing Director for Zhonghe Resources (Namibia)
Development Pty Ltd, a subsidiary of China National Nuclear Corporation (CNNC). CNNC is one of the largest
Uranium miners in the world. Mr Liu directed the uranium exploration programme in Namibia and discovered
12-million-pound uranium resources adjacent to Rossing mine of CNNC (previously owned by Rio Tinto).
Other current Directorships: none
Former Directorships (last 3 years): none
Interest in shares: 200,000
Interest in options: none
Contractual rights to shares: none
Special responsibilities: none
27
DIRECTORS’ REPORT
Environmental Regulations
The Company is subject to significant environmental regulations under legislation of the Commonwealth of
Australia. The Company aims to ensure that it complies with the identified regulatory requirements in each
jurisdiction in which it operates.
The Company is aware of its responsibility to have as little impact as possible on the environment and, if/when
there is any disturbance, to rehabilitate disturbed sites. During the period under review, there was field and
exploration work conducted in Western Australia with subsequent rehabilitation of the site completed. When
the Company does complete field and exploration work, the work follows procedures and pursues objectives in
line with guidelines published by the WA State Government and granting of exploration license application
conditions.
These guidelines are quite detailed and encompass the impact on owners and land users, heritage, health and
safety and proper restoration practices. The Company supports this approach and is confident that it properly
monitors and adheres to these objectives and any local conditions applicable.
During the financial year ended 30 June 2023 there have been no known material breaches of the
environmental obligations of the Company’s contracts or licenses (2022: None).
Dividends
No dividends have been declared in respect of the year ended 30 June 2023 (2022: Nil)
Events subsequent to the end of the reporting period:
Mr Colin MacKay, Non-executive director, resigned from his position on 7th July 2023. Mr MacKay is yet to be
replaced.
The Directors are not aware of any other matter or circumstance not otherwise dealt with in the report or in the
financial statements that has significantly or may significantly affect the operations of the Company, the results
of those operations or the state of affairs of the Company in subsequent financial years.
Directors' interest
The Directors' beneficial interest in shares and options as at the date of this report are:
Mr Sitong Wu 1 Mr Ding Xu2
Mr Yicheng Zhang 3
Mr Colin McKay 4
Mr Jian Liu
Total
Shares
Direct
Indirect
Total
Options
-
-
57,650,000
57,650,000
57,534,500
57,534,500
-
-
19,600,000
200,000
-
-
19,600,000
12,000,000
200,000
-
19,800,000
115,184,500
134,984,500
12,000,000
1. Mr Sitong Wu is a Director of Zhengyuan International Mining Company Ltd, which holds the relevant interest in Zeus Resources. Shares held jointly with
Mr Ding Xu.
2. Mr Ding Xu is a nominee Director appointed to Zhengyuan International Mining Company Ltd and has power and control to exercise
the voting rights attached to the securities in Zeus Resources. Shares held jointly with Mr Sitong Wu.
3. Mr Yicheng Zhang is a Director of and controls Vast Honour Global Limited, which holds a direct relevant interest in Zeus Resources.
4. Mr Colin McKay Rights Issue Options expire 7 February 2025
28
DIRECTORS’ REPORT
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for key management personnel (KMP) of the
Company which includes Directors and senior executives. KMP are those individuals that have the authority and
responsibility for planning, directing and controlling the activities of the Company.
Remuneration Policy
The Board’s policy for determining the nature and amount of remuneration for Board members and senior
executives of the Company is as follows:
The remuneration policy, setting the terms and conditions for the Executive Directors and other senior
executives, was developed and approved by the Board. All executives are to receive remuneration based on
factors such as length of service and experience.
The Board reviews executive packages annually by reference to the Company’s performance, executive
performance and comparable information from industry sectors and other listed companies in similar industries.
The objective of this policy is to secure and retain the services of suitable individuals capable of contributing to
the entity’s strategic objectives.
The remuneration framework the Board established has three components:
-
-
-
Fixed remuneration consisting of base pay and benefits, including superannuation,
Short-term performance incentives and bonuses and
Long-term incentives through issuances of share options.
The combination of these comprises the executive's total remuneration.
Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed
annually by the Board, based on individual and business unit performance, the overall performance of the entity
and comparable market remunerations. Executives may receive their fixed remuneration in the form of cash or
other fringe benefits (for example motor vehicle benefits), where it does not create any additional costs to the
entity and provides additional value to the executive.
The short-term incentives ('STI') program is designed to align the targets of the business units with the targets
of those executives responsible for meeting those targets. STI payments are granted to executives based on
specific annual targets and key performance indicators ('KPIs') being achieved. KPIs include increasing
shareholders’ value, completion of target projects, management of tenements and overall management of the
operations of Company.
The long-term incentives ('LTI') program is comprised of share-based payments. Shares are awarded to
executives over a period of three years based on long-term incentive measures. These include increase in
shareholders’ value relative to the entire market and the increase compared to the entity's direct competitors.
At issue date of this report there are no Key Management personnel that have received “STI” or “LTI” benefits.
The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time,
commitment and responsibilities. The Board determines payments to the Non-Executive Directors and reviews
their remuneration annually, based on market practice, duties and accountability. Board members are appointed
at the General Meeting at which they nominated. Board members do not receive a specific service engagement
contract. Executives are engaged using a service agreement contract which will specify annual targets and KPIs.
29
DIRECTORS’ REPORT
Remuneration Policy continued
The Board does not currently link KMP or Director’s remuneration to specific market-based goals or targets due
to the stage of development of the Company’s projects or overall Company performance. Individual
performance-based goals are set by the Company to ensure that exploration, project evaluation and
administration tasks are performed efficiently and to the benefit of stakeholders.
The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by
shareholders at the Annual General Meeting. The maximum aggregate amount for the financial year ending 30
June 2023 was $5,000, with $5,000 per annum to be paid to Mr Jian Liu. The other members of the Board have
adopted a policy decision made by the Board not to receive remuneration during the financial year ended 30
June 2023. A review of the Board remuneration was not undertaken during the financial year end 2023, except
for the remuneration to Mr Jian Liu.
Voting and comments made at the Company's 2022 Annual General Meeting ('AGM')
At the 2022 AGM, held 15th November 2022, adoption of the remuneration report for the year ended 30 June
2022 was approved by the shareholders. Results of the meeting are tabled below:
Additional Benefits
There are no additional benefits provided to Key Management Personnel as at the date of issue of this report.
30
Resolution details Resolution Result If s250U applies Resolution Resolution Type Carried / Not Carried 1. Adoption of the Remuneration Report (non- binding resolution) Ordinary Carried No 2. Re-Election of Director - Mr Jian Liu Ordinary Carried NA 3. Re-Election of Director - Mr Yicheng Zhang Ordinary Carried NA 4. Re-Election of Director - Mr Sitong Wu Ordinary Carried NA 5. Re-Election of Director - Mr Ding Xu Ordinary Carried NA
DIRECTORS’ REPORT
Key Management Personnel (KMP) Payments & Benefits
Your Directors, Company Secretary and key management personnel received the following payments/benefits
for services for the year ended 30 June 2023 as indicated below:
Short-term bene-
fits
Cash Salary and
Fees
$
Bo-
nuses
$
Long-term ben-
efits
Share option ben-
efits
Superannua-
tion
Termination pay-
ments
Long service
leave
Options
$
$
$
$
Total
$
Senior Officers
Mr Jonathan Higgins
(Exploration Manager)
Andrew Rust
(Exploration Manager)
Phil Jones
(Geologist)
Total 2022
Total 2023
2022
2023
2022
2023
2022
2023
57,834
10,375
3,160
8,560
-
55,163
60,994
74,098
Non-Executive Directors and Executive Direc-
tors
Short-term bene-
fits
Cash Salary and
Fees
$
Bo-
nuses
$
Gregory Clifton Hall1
(Non-Executive Director)
Mr Jian Liu2
(Executive Director and Company Secretary)
Total 2022
Total 2023
2022
2023
2022
2023
6,250
-
203,620
217,022
209,870
217,022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57,834
10,375
3,160
8,560
-
55,163
60,994
74,098
Long-term ben-
efits
Share option ben-
efits
Superannua-
tion
Termination pay-
ments
Long service
leave
Options
$
$
$
$
Total
$
-
-
19,002
21,002
19,002
21,002
-
-
-
-
-
-
-
-
29,268
32,267
29,268
32,267
-
-
-
-
-
-
6,250
-
251,890
270,291
258,140
270,291
1 Mr Hall issued invoices from Golden Phoenix International Pty Ltd ATF Golden Phoenix International Unit Trust until Mr Hall’s resignation in December 2021. Amounts shown are ex-GST.
2.Mr Jian Liu’s Salary, Long Service Leave entitlement and superannuation payments are paid as employee of the Company. For Director fees and Company Secretarial fees payments are
made to Mr Liu as a Sole Trader. Amounts shown are ex-GST.
The total of remuneration paid to the KMP of the Company during the year are as follows:
Short-term employee benefits/Fees
Long-term employee benefits/Fees
Total KMP compensations
Remuneration and Earnings additional information
Year Ended
30-Jun-2023
$
Year Ended
30-Jun-2022
$
312,122
32,267
344,389
289,866
29,268
319,134
31
DIRECTORS’ REPORT
The Board does not currently link KMP or Director’s remuneration to specific market-based goals or targets due
to the stage of development of the Company’s projects or over-all Company performance.
However, to conserve cash the Company has reduced payments to Key Management Personnel (KMP) over the
preceding five-year period. The Board did not review the remuneration of the CEO during the financial year for
the role performed by Mr Sitong Wu. The Company has not awarded any short-term or long-term incentives to
KMP as of the date of this report or over the preceding five-year period. The reduction of fixed remuneration
payments made to KMP, instigated by the Board, is indicated by the table below:
Key Management Payments & Benefits and Company Results
KMP
30-Jun-23
30-Jun-22
30-Jun-21
30-Jun-20
30-Jun-19
$
$
$
$
$
Mr Ding Xu
Mr Sitong Wu
Mr Yicheng Zhang
Mr Colin Mackay
Mr Jonathan Higgins
Mr Gregory Clifton Hall - Non-Executive Director
Mr Andrew Rust - Exploration Manager
Mr Phil Jones - Geologist
-
-
-
-
-
-
-
-
10,375
57,834
-
8,560
55,163
6,250
3,160
-
-
-
-
-
-
15,000
3,280
-
Mr Jian Liu1 – Executive Director and General Manager Geology
and Exploration
270,291
251,890
99,244
-
-
-
-
-
15,000
4,250
-
-
-
-
-
-
-
15,000
3,560
-
-
Total
344,389
319,134
117,524
19,250
18,560
Additional Information
The earnings of the Company for the five years to 30 June 2023 are as follows:
Earnings of the Company
Interest Income
EBITDA
EBIT
30-Jun-23
30-Jun-22
30-Jun-21
30-Jun-20
30-Jun-19
$
$
$
$
$
13,138
(405,633)
850
(410,150)
2,843
(198,379)
15,866
(812,720)
36,572
(257,214)
(888,383)
(436,930)
(241,214)
(833,161)
(257,214)
Loss after income tax
(888,383)
(437,302)
(243,359)
(834,620)
(261,510)
The factors that are considered to affect total shareholders’ returns are as
follows:
Factor
Share Price at financial year end (cents)
Total Dividends Declared (cents)
Basic Earnings per share (cents)
Diluted Earnings per share (cents)
30-Jun-23
30-Jun-22
30-Jun-21
30-Jun-20
30-Jun-19
$
$
$
3.4
-
(0.29)
(0.29)
8.92
-
(0.20)
(0.20)
9.9
-
(0.13)
(0.13)
$
0.8
-
(0.46)
(0.46)
$
0.8
-
(0.15)
(0.15)
1. Includes Mr Jian Liu’s salary and benefits as an employee of the Company in his role of General Manager Geology and Exploration
2. Last traded price on 3rd September 2021 before involuntary suspension from listing by the ASX.
32
DIRECTORS’ REPORT
Key Management Personnel Interests as at 30 June 2023:
The number of ordinary shares held by KMP with current roles in the Company at the end of the reporting
period is as follows:
Name
Mr Ding Xu
& Mr Sitong Wu 1,2
Mr Yicheng Zhang 3
Mr Colin Mackay
Mr Jian Liu
Total
Shares held
Direct
Indirect
Balance at
start of Year
Received as
part of
Remuneration
Additions Disposals Balance at end
of Year
-
-
57,650,000
57,650,000
57,534,500
57,534,500
19,600,000
200,000
-
-
6,937,145
-
19,800,000 115,184,500
122,121,645
-
-
-
-
- 12,662,855
-
200,000
12,862,855
-
-
-
-
-
57,650,000
57,534,500
19,600,000
200,000
134,984,500
1. Mr Ding Xu holds shares as a nominee Director appointed by Zhengyuan International Mining Company and has power to exercise or control
the voting rights attached to the securities in Zeus – shares are held jointly with Mr Jiangang Zhao.
2. Mr Sitong Wu holds shares as a nominee Director appointed by Zhengyuan International Mining Company Ltd and has power to exercise or
control the voting rights attached to the securities in Zeus – shares are held jointly with Dr Dongfeng Zhang.
3. Mr Yicheng Zhang is a Director of and controls Vast Honour Global Limited, which holds a direct relevant interest in Zeus.
The number of options held by KMP with current roles in the Company at the end of the reporting period is as
follows:
Name
Balance
at start of
Year
Granted
Additions
Exercised
Expired/Forfeited
/other
Balance at end of Year
Mr Colin Mackay
1,411,112
11,537,145
462,855
Total
1,411,112
11,537,145
462,855
-
-
1,411,112
1,411,112
12,000,000
12,000,000
Other transactions with key management personnel and their related parties:
During the financial year, Mr Jian Liu was paid $5,000 in relation to Director’s fees (2022: $5,000) and $12,000 for
Company Secretarial fees (2022: $8,600). As at 30 June 2023 there was nil payable to Mr Jian Liu for the
aforementioned fees (2022: nil).
During the financial year no payments were made to Golden Phoenix International Unit Trust (2022: $6,250) in
relation to the Director’s fees or any other fees of former Director, Mr Greg Hall. As at 30 June 2023 there was
nil payable and due to Golden Phoenix International Unit Trust for the aforementioned fees (2022: nil).
This is the end of the audited remuneration report.
33
DIRECTORS’ REPORT
Directors’ meetings
The number of Directors’ meetings of Zeus Resources Limited (including by way of circular resolution) held
during the year ended the 30 June 2023 and the numbers of meetings attended by each Director are as follows:
Director
Mr Jian Liu
Mr Yicheng Zhang
Mr Colin Robert Mackay
Mr Ding Xu
Mr Sitong Wu
Directors' Meetings
Eligible to attend
Attended
3
3
3
3
3
3
1
2
2
3
Indemnity and insurance of officers
During the financial period, the Company did not insure all Directors and officers of the Company due to the
cost of the policy.
Indemnity and insurance of auditors
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.
Non-audit services
Our appointed auditors, William Buck, provided non-audit services during the year ended 30 June 2023
associated with the 7th December Capital Raise amounting to $7,500 (ex-GST) (2022: Nil).
Proceedings on behalf of The Company
No person has applied to the Court for leave to bring proceedings on behalf of the Company or 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 any of those proceedings. The Company was not a party to any such proceedings during the
year.
34
DIRECTORS’ REPORT
Auditor independence declaration
The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for
the year ended 30 June 2023 has been received by the Company and can be found on page 36 of this annual
report.
Signed in accordance with a resolution of the Board of Directors.
Mr. Sitong Wu
Executive Director and Acting CEO
Dated this 11th day of September, 2023
35
36
This page intentionally left blank.
37
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Interest Income
Less expenses:
Corporate and administration costs
Accounting and audit fees
Board of Directors Fees and Meeting Expenses
Company secretarial and compliance
Computers and communications
Employee salaries and benefits
Insurance
Legal and consultants' fees
Rent and utilities
Share registry maintenance and listing fees
Exploration and evaluation costs
Project expenditure (net of capitalised expenditure)
Impairment of projects
Business development
Salaries and benefits
Travel and accommodation
Other expenses from ordinary activities
Depreciation
Finance costs
Other expenses
Total Expenses
Loss before income tax
Income tax expense
Loss for the year attributable to the Company
Year ended
Year ended
Notes
30-Jun-23
30-Jun-22
$
$
13,139
850
92,701
38,457
41,051
5,959
(3,574)
2,570
8,248
25,570
38,069
89,444
479,510
75,164
364
3,241
-
4,748
901,522
71,170
39,197
44,355
8,267
7,188
2,534
38,861
13,073
30,487
102,893
-
44,000
2,585
26,781
371
6,390
438,152
(888,383)
(437,302)
-
-
(888,383)
(437,302)
6
2
Other comprehensive income
-
-
Total comprehensive loss for the year attributable to the Company
(888,383)
(437,302)
Loss per share
Basic - $ per share
Diluted - $ per share
(0.0029)
(0.0029)
(0.0020)
(0.0020)
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
38
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
CURRENT ASSETS
Cash and cash equivalents
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Exploration and evaluation assets
Property, plant and equipment
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
TOTAL CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Accumulated losses
TOTAL EQUITY
As at
As at
Notes
30-Jun-23
30-Jun-22
$
$
3
4
5
6
7
8
9
2,346,863
10,333
2,357,196
966,301
2,165
968,466
976,127
6,063
982,190
950,533
4,316
954,849
3,325,662
1,937,039
177,370
177,370
120,916
120,916
177,370
120,916
3,148,292
1,816,123
20,716,771
18,496,219
(17,568,479)
(16,680,096)
3,148,292
1,816,123
The above statement of financial position should be read in conjunction with the accompanying notes.
39
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Contributed
Equity
$
Accumulated
Losses
$
Total
$
Balance at 1 July 2021
18,136,219
(16,242,794)
1,893,425
Options exercised 13 Aug 2021
360,000
-
360,000
Comprehensive loss for the year
-
(437,302)
(437,302)
Balance at 30 June 2022
18,496,219
(16,680,096)
1,816,123
Balance at 1 July 2022
18,496,219
(16,680,096)
1,816,123
Rights issue 7 Dec 2022 (Net of costs)
1,840,932
Options exercised Rights Issue 7 Dec
2022 Offer
379,620
-
-
1,840,932
379,620
Comprehensive loss for the year
-
(888,383)
(888,383)
Balance at 30 June 2023
20,716,771
(17,568,479)
3,148,292
The above statement of changes in equity should be read in conjunction with the accompanying notes.
40
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Notes
Year ended
30-Jun-23
$
Year ended
30-Jun-22
$
CASH FLOW FROM OPERATING ACTIVITIES
Payments to suppliers and employees
(288,833)
(276,343)
Receipts for taxes
Interest received
Interest paid
Net cash used in Operating Activi-
ties
-
12,489
-
186
848
(371)
10
(276,344)
(275,680)
CASH FLOW FROM INVESTING ACTIVITIES
Payments for exploration and evaluation – capitalized
Payments for exploration and evaluation – expenses
Payments for plant and equipment
Net cash used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES
Share Issue 7 Dec 2022 (Net of transaction costs)
Rights Issue Options exercised Offer 7 Dec 2022
Payments for lease
Net cash provided by financing activities
Net decrease in cash and cash equivalents held
Cash at beginning of financial year
Cash and Cash Equivalents at end of financial year
(495,278)
(77,104)
(1,090)
(573,472)
1,840,932
379,620
-
2,220,552
1,370,736
976,127
2,346,863
(498,825)
(102,893)
(1,381)
(603,099)
-
360,000
(23,979)
336,021
542,758
1,518,885
976,127
The above statement of cash flow should be read in conjunction with the accompanying notes.
41
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies
have been consistently applied to all the years presented, unless otherwise stated. The Board has approved these financial
statements on the date of signing.
The principal activity of the Company during the year was the exploration for uranium and other base metals. The
Company operates as a for-profit entity.
A. Basis of accounting
This general-purpose financial report has been prepared in accordance with the requirements of the Corporations Act 2001
and Australian Accounting Standards and Interpretations issued by the Accounting Standards Board.
(i) Compliance with IFRS:
The financial statements also comply with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
(ii) Historical Cost Convention:
These financial reports are prepared under the historical cost convention.
(iii) Critical Accounting Estimates:
The presentation of financial statements requires the use certain critical accounting estimates. The Company also
requires management to exercise its judgement in the process of applying the accounting policies. The areas
involving a high degree or judgement or complexity or areas where assumptions and estimates are significant to the
financial statements is disclosed later. See part G.
(iv) Foreign currency transactions and balances:
Items included in the financial statements are measured using Australian Dollars (functional currency of Zeus
Resources Ltd).
Changes in Accounting Policies
The Company has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (AASB) that were relevant to the Company’s operations and effective for the current year.
B.
Income tax
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted at the end of the
reporting period.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised
from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in the statement of statement of profit or loss and other comprehensive income except
where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against
equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences can be used.
The amount of benefits brought to account or which may be realised in the future assumes that no adverse change will
occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income
to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
42
NOTES TO THE FINANCIAL STATEMENTS
C. Financial instruments
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid
investments with original maturities of three months or less.
Payables
Payables represent liabilities for goods and services provided to the Company prior to the end of the financial year which
are unpaid. The amounts are unsecured and are generally settled between 7 days and 30 days terms.
D. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and
it is probable that the Company will be required to settle the obligation and a reliable estimate can be made of the
amount. If the effect of time value of money is material, provisions are discounted at a rate that reflects the risks specific to
the liability.
E. Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of the item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to
the taxation authority, are presented as operating cash flows. Cash flows are presented in the statement of cash flows on a
gross basis.
F. Exploration and evaluation expenditure policy
Exploration and evaluation expenditure comprise of costs that are directly attributable to:
• researching and analysing existing exploration data;
• conducting geological studies, exploratory drilling and sampling;
• construction of access roads where necessary for exploration drilling;
• examining and testing extraction and treatment methods; and
• compiling pre-feasibility and feasibility studies.
Exploration and evaluation expenditure also include the costs incurred in acquiring mineral rights, the entry premiums paid
to gain access to areas of interest and amounts payable to third parties to acquire interests in existing projects.
Capitalisation of exploration expenditure commences when there is a reasonable level of confidence in the project’s
viability and hence it is probable that future economic benefits will flow to the Company. Capitalised exploration
expenditure is reviewed for impairment at the end of the reporting period. Subsequent recovery of the resulting carrying
value depends on successful development of the area of interest or sale of the project. If a project does not prove viable, all
unrecoverable costs associated with the project and the related impairment provisions are written off.
Undeveloped properties are mineral concessions where the intention is to develop and go into production in due course.
The carrying values of assets are reviewed annually by management and the results of these reviews are reported to the
Board and is assessed based on a status report regarding Zeus Resources intentions for development of the undeveloped
property. Reviews are performed using the fair value less costs of disposal method.
43
NOTES TO THE FINANCIAL STATEMENTS
G. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, income and expenses. Management bases its judgements,
estimates and assumptions on historical experience and on other various factors, including expectations of future
events, management believes to be reasonable under the circumstances. The resulting accounting judgements and
estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective
notes) within the next financial year are discussed below.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Company considers it is probable
that future taxable amounts will be available to use those temporary differences and losses.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the Company will commence commercial
production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral
resources. Key judgements are applied in considering costs to be capitalised which includes determining expenditures
directly related to these activities and allocating overheads between those that are expensed and capitalised. In
addition, costs are only capitalised that are expected to be recovered either through successful development or sale of
the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of
reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and
changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future,
they will be written off in the period in which this determination is made.
H. Income Recognition
(i) Interest earned
Income from interest earned on investments is recognised on a time proportion using the effective interest rate
method.
(ii) Net gains on disposal of assets
Net gains on disposal of assets is recognised as at the date the control of the asset passes from the Company.
I. Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in the equity division of the statement of financial position as a deduction net of any tax, from the proceeds.
Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not
included in the cost of acquisition as part of the purchase consideration and are expensed as incurred.
J. Property, plant and equipment
(i)
Acquisition
Items of property, plant and equipment are recorded at historical cost and, are depreciated as outlined below.
Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are
included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be
measured reliably. Repairs and maintenance are charged to the statement of profit or loss and other comprehensive
income during the period in which they are incurred.
44
NOTES TO THE FINANCIAL STATEMENTS
Property, plant and equipment continued:
(ii)
Depreciation and amortisation
The following indicates the depreciation method for plant and equipment on which the depreciation charges are
based:
- straight-line basis over their useful operating life
- Plant and equipment other than computers – five years
- Plant and equipment - computers – three years
- Furniture & fittings – ten years
- Leasehold Improvements – term of lease.
K. Earnings per share
(i) Basic earnings per share
Basic earnings per share is determined by dividing net loss after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of
ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued
during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to consider
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares
and share options and the weighted average number of shares and share options assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares and share options.
L.
Impairment of Non-Financial Assets
At the end of each reporting period, the Company reviews the carrying values of its tangible and intangible assets to
determine whether there is any indication that those assets have been impaired. If such an indication exists the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in uses, is compared to the asset’s
carrying value. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risk specific to the asset for
which the estimates of future cash flows have not been adjusted.
Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit and loss and
other comprehensive income. Impairment testing is performed annually for goodwill and other intangible assets not yet
available for use. Where it is not possible to estimate the recoverable amount of an individual asset the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs.
M. Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up to
the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date,
when it arises, will be recognised in non-current liabilities, provided there is an unconditional right to defer settlement of
the liability. The liability is measured as the present value of expected future payments to be made in respect of services
provided by employees.
N. Farm-out arrangements
The Company does not record any expenditure made by the farmee on its account. It also does not recognise any gain or
loss on its exploration and evaluation farm-out arrangements but designates any costs previously capitalised in relation to
the whole interest as relating to the partial interest retained. Any cash consideration received from a farmee is credited
directly against previously capitalised purchase values in relation to the whole interest previously and with any excess
account for by the farmor as a gain on disposal.
45
NOTES TO THE FINANCIAL STATEMENTS
O. Right-of-use Assets
Initial Measurement - A right-of-use asset is initially measured at cost comprising the initial measurement of the lease
liability adjusted for any lease payments made before the commencement date (reduced by lease incentives received),
plus initial direct costs incurred in obtaining the lease and an estimate of costs to be incurred in dismantling and
removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease. .
Subsequent Measurement - A right-of-use asset is subsequently measured at cost less any accumulated depreciation
and adjusted for any remeasurement of the corresponding lease liability. Depreciation: Right-of-use assets are
depreciated over the shorter of the lease term and the useful life of the asset. The estimated useful lives are as follows:
-
-
Equipment Leases: Term of Lease
Premises Leases: Term of Lease
P. Lease Liabilities
Initial Measurement - A lease liability is initially recognised at the commencement day and measured at an amount
equal to the present value of the lease payments during the lease term that are not yet paid. The provision for any
restoration costs or make good is recognised as a separate liability.
Subsequent Measurement – A Lease liability is subsequently measured at initial measurement less any subsequent
lease payments and adjusted for any remeasurement of the corresponding right-of-use asset.
Payments: - lease payments are classified consistently with payments on other financial liabilities:
-
The part of the lease payment that represents cash payments for the principal portion of the lease liability is
presented as a cash flow resulting from financing activities.
The part of the lease payment that represents interest portion of the lease liability is presented as an operating
cash flow.
-
The duration of the lease liability shall be equivalent to the term of the lease at initial recognition.
Q. Accounting Standards and Interpretations for application in future periods
Australian Accounting Standards and Interpretations that have recently been issued or amended, but are not
yet mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June
2023. The Company's assessment of the impact of these new or amended Accounting Standards and
Interpretations most relevant to the Company is that these do not have a material impact on the financial
statements.
46
NOTES TO THE FINANCIAL STATEMENTS
R. Going Concern
For the financial year ended 30 June 2023 the Company recorded a loss of $888,383 (2022: $437,302), net cash
outflows from operating activities amounted to $276,344 (2022: $275,680) and the Company maintained net assets
of $3,148,292 (2022: $1,816,123) mainly represented by cash and tenement assets. Since listing the Company is
yet to report profitable operations.
The Board of Directors note the successful raising of $1,840,932 net of transactions costs, via a share placement in
early December 2022, followed by an issue of listed share options some of which were subsequently exercised by
30th June 2023 yielding an additional capital inflow of net $379,620; increasing the net asset position by $2,220,552
and providing the Company with the ability of to continue its exploration activities.
The financial statements have been prepared on the basis that the Company is a going concern which predicates
ongoing normal business activity, realisation of assets and settlement of liabilities in the normal course of business
over the next 12 months’ period as a result of the Board of Directors having:
-
-
prepared detailed cash flow forecasts to assess and control the Company’s ability to incur costs and
subsequently settle and pay debts as and when they fall due,
closely monitoring the ongoing exploration of its tenements and having the ability to fully control related cash
outflows and operational activities.
This financial report does not include any adjustments relating to the recoverability and the classification of
recorded asset amounts or liabilities that might be necessary should the Company not continue as a going
concern.
47
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2: INCOME TAX EXPENSE
(a) Income Tax Benefit/(Expense)
Current Income Tax
Current Income tax benefit/(expense)
(b) Deferred income tax
Deferred tax assets not brought to account (gross)
Tax losses for the year not recognised
Tax losses (foregone)/prior year not recognised
Temporary differences
Total deferred tax assets not brought to account
(c) Amounts Charged or Credited Directly to Equity
Share Issue Costs
Share based payments expense
Total deferred tax assets Charged or Credited Directly to Equity
(d) Numerical Reconciliation of Income Tax Benefit to Prima facie
Tax Payable
Loss Before Income Tax
Prima facie income tax credit on loss at 25%
Tax effect of:
Non-allowable expenditure for tax purposes
Net Project expenses
Provisions and prepayments brought to account
Share issue costs
Current year tax losses not brought to account
30-Jun-23
30-Jun-22
$
$
-
-
-
-
3,765,474
236,197
118,676
-
4,120,347
21,134
-
4,817,218
107,453
(1,159,197)
-
3,765,474
-
21,134
-
(888,383)
(437,302)
222,096
109,326
(810)
4,192
(10,415)
21,134
236,197
-
-
(5,478)
3,605
107,453
The tax losses and deferred tax assets do not expire under current tax legislation. Deferred tax assets have not been
recognised in respect of these items because it is not yet probable that future taxable profit will be available against which
the Company can use the benefits. The benefit of these tax losses will only be obtained if:
-
-
The Company continues to comply with the conditions for deductibility imposed by tax legislation;
The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the deductions for the losses to be realised; and
- No changes in tax legislation adversely affects the Company realising the benefit from the deductions for the
losses.
48
NOTES TO THE FINANCIAL STATEMENTS
NOTE 3: CASH AND CASH EQUIVALENTS
Cash Transaction Account
Cash Management Account
Term deposits 30-90 days
Total
NOTE 4: OTHER ASSETS
Current
Bond paid for lease
Interest receivable
Trade Debtors
Total Other assets
30-Jun-2023
30-Jun-2022
$
917,049
1,149,823
279,991
2,346,863
$
186
202,276
773,665
976,127
30-Jun-2023
30-Jun-2022
$
$
6,000
713
3,620
10,333
6,000
63
-
6,063
49
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5: EXPLORATION AND EVALUATION ASSETS –
NON-CURRENT
Area of Interest:
Wiluna (Lakes Way)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
Gascoyne (Mortimer Hills)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
Narnoo (North and South)
Opening Balance
Capitalised Costs
Impairment
Closing Balance
Total Exploration and Evaluation Assets
30-Jun-2023
30-Jun-2022
$
$
220,256
225,627
-
445,883
504,749
235,329
(219,660)
520,418
225,528
34,322
(259,850)
-
966,301
131,348
88,908
-
220,256
134,550
370,199
-
504,749
185,811
39,717
-
225,528
950,533
Valuation
The value of the Company’s interest in exploration expenditures is dependent upon:
the continuance of the Company’s rights to tenure of the areas of interest;
the results of future exploration; and
the recoupment of costs through successful development and exploitation of the areas of interest, or by their sale.
-
-
-
The Company’s exploration properties may be subjected to claim(s) under Native Title (or jurisdictional
equivalent) or contain sacred sites or sites of significance to the indigenous people of Australia.
As a result, exploration properties or areas within the tenements may be subject to exploration restrictions, mining
restrictions and/or claims for compensation. As of the date of this Annual Report it was not possible to quantify whether
such claims exist, or the quantum of such claims.
Impairment Losses
There were impairment losses recognised for the year of $479,510 against tenements that the Company holds (2022: nil).
The list of tenements in which the Company has an interest is disclosed on page 64.
50
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6: PLANT, EQUIPMENT, FURNITURE & FIT-
TINGS
30-Jun-23
30-Jun-22
$
$
Plant & Equipment – at cost
Accumulated depreciation
Total Plant and Equipment
Movements during the year:
Opening Balance
Additions during the year
Disposals during the year
Closing Balance
Depreciation
Opening balance
Charge during the year
Charge Back during the year
Closing depreciation
Net book value
Furniture & Fittings – at cost
Accumulated depreciation
Total Furniture and Fittings
Movements during the year:
Opening Balance
Disposals during the year
Closing Balance
Depreciation
Opening balance
Charge during the year
Closing depreciation
Net Book Value
Total Net Book Value
57,571
(55,406)
2,165
56,481
1,090
-
57,571
(52,650)
(2,756)
-
(55,406)
2,165
15,821
(15,821)
-
15,821
-
15,821
(15,336)
(485)
(15,821)
-
2,165
56,481
(52,650)
3,831
55,100
1,381
-
56,481
(49,790)
(2,860)
-
(52,650)
3,831
15,821
(15,336)
485
15,821
-
15,821
(13,821)
(1,515)
(15,336)
485
4,316
51
NOTES TO THE FINANCIAL STATEMENTS
NOTE 7: TRADE AND OTHER PAYABLES
Trade creditors
Other payables
- Audit, ASIC and tax reporting fees
- Legal expenses
- Annual and long service leave accruals
- Board, company secretarial and meeting expenses
Total trade and other payables
30-Jun-2023
$
36,429
28,250
5,142
69,673
37,876
177,370
30-Jun-2022
$
21,634
13,000
-
75,619
10,663
120,916
NOTE 8: CONTRIBUTED EQUITY
2023
(a) Ordinary Shares Number
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the financial year
(b) Ordinary Shares Value
Balance at the beginning of the year
Shares issued during the year
Share issue costs
Balance at the end of the financial year
2022
(a) Ordinary Shares Number
Balance at the beginning of the year
Shares issued during the year
Balance at the end of the financial year
(b) Ordinary Shares Value
Balance at the beginning of the year
Shares issued during the year
Share issue costs
Balance at the end of the financial year
Number on Issue
219,150,000
238,131,000
457,281,000
Value ($)
18,496,219
2,571,120
(350,568)
20,716,771
Number on Issue
207,150,000
12,000,000
219,150,000
Value ($)
18,136,219
360,000
-
18,496,219
Ordinary Shares entitle the holder to participate in dividends and to share in the proceeds of winding up the Company in
proportion to the number of and amounts paid on the shares held. Ordinary shares have no par value and the Company
does not have a limited amount of authorized Capital.
52
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9: ACCUMULATED LOSSES
30-Jun-2023
30-Jun-2022
$
$
Accumulated losses at the beginning of the financial year
(16,680,096)
(16,242,794)
Net loss attributable to members of the entity
Accumulated losses at the end of the financial year
(888,383)
(437,302)
(17,568,479)
(16,680,096)
NOTE 10: STATEMENT OF CASH FLOW INFORMATION
Loss from ordinary activities after income tax
Add: Adjustment for non-cash or non-operating items
- depreciation and impairment
- Investing items and interest
- leave entitlement accrual
Add: Changes in working capital
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in other assets
(Decrease)/Increase in trade payables
(Decrease)/Increase in other liabilities
(Decrease)/Increase in other payables
Cash outflow from operations
30-Jun-2023
30-Jun-2022
$
$
(888,383)
(437,302)
482,751
77,104
4,623
559,855
(3,620)
(650)
14,794
(5,946)
47,606
52,184
(276,344)
26,781
136,940
4,623
163,721
5,841
2,957
1,844
(791)
(11,950)
(2,099)
(275,680)
NOTE 11: AUDITORS REMUNERATION
Auditing or reviewing the financial reports by William Buck NSW
Non-audit Services
Total Auditors Remuneration
30-Jun-2023
30-Jun-2022
$
$
38,014
7,500
45,514
32,500
-
32,500
53
NOTES TO THE FINANCIAL STATEMENTS
NOTE 12: SEGMENT INFORMATION
The Company’s operations are in one reportable business segment being the exploration of uranium, gold, metals and other
minerals.
The Company currently operates in one geographical segment being Australia.
NOTE 13: RELATED PARTY TRANSACTIONS
30-Jun-2023
30-Jun-2022
Key Management Personnel
Refer to the remuneration report contained in the Directors’ report for details of the remuneration paid or payable to each
member of the Company’s key management personnel (KMP) for the year ended 30 June 2023. The totals of remuneration
paid to the KMP of the Company during the year are as follows:
Short-term employee benefits/fees
Long-term employee benefits/fees
Total KMP compensations
Other transactions with related parties
$
312,122
32,267
344,389
$
289,866
29,268
319,134
During the financial year no payments were made to Golden Phoenix International Unit Trust (2022: $6,250) in relation to
the Director’s fees or any other fees of Mr Greg Hall. As at 30 June 2023 there was nil payable and due to Golden Phoenix
International Unit Trust for the aforementioned fees (2022: nil).
During the financial year, Mr Jian Liu was paid $5,000 in relation to Director’s fees (2022: $5,000) and $12,000 for Company
Secretarial fees. (2022: $8,600) As at 30 June 2023 there was nil was payable to Mr Jian Liu (2022: nil).
54
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14: COMMITMENTS AND CONTINGENCIES
30-Jun-2023
30-Jun-2022
a) Commitments
The Company is required to meet minimum committed expenditure amounts to maintain current rights of
tenure to exploration licences. The minimum commitment of expenditure on each tenement is determined by
the Department of Mining and Petroleum. These obligations may be subject to re-negotiation, may be farmed-
out or may be relinquished and have not been provided for in the statement of financial position. A summary
of aggregate commitments is as follows:
Exploration Projects in Western Australia
Within 1 year
More than 1 year but not later than five years
More than five years
Total
$
$
209,945
969,890
-
189,781
969,890
-
1,179,835
1,159,671
The Company leased a small office in North Sydney for 12 months – lease expired 10th February 2023.
Lease is now on a month to month basis.
Within 1 year
Total
b) Contingent assets and liabilities
-
-
14,795
14,795
Contingent liabilities
There are no contingent liabilities as at end of reporting period 30 June 2023 (2022: Nil).
Contingent assets
There are no contingent assets as at end of reporting period 30 June 2023 (2022: Nil).
55
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15: FINANCIAL RISK MANAGEMENT
The below table summarises interest rate receivable or payable for the Company:
Effective
Interest Rate
Floating interest
rate amount
$
Non-
Interest
Bearing
$
Total
$
3.0%
5.0%
2.0%
5.0%
2,346,863
-
2,346,863
-
(107,697)
$
(107,697)
$
$
976,127
-
976,127
-
(45,297)
(45,297)
2023
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
2022
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
a) Credit risk
The Company has no significant concentrations of credit risk with debtors as the Company has not issued any sales for
services or products during the period ending 30 June 2023 hence the Company does not insure any outstanding debts.
(b) Interest rate risk
Potential impact on post-tax loss:
Effective Interest rate -1%
Effective Interest rate +1%
30-Jun-2023
$
30-Jun-2022
$
(23,469)
23,469
(9,761)
9,761
The Company places surplus cash with the bank in term deposit of up to 180 days. The rate can vary from rollover period
to rollover period. Exposure to variances in interest rates is not controlled by the Company and returns are subject to
current interest rates offered by the banks at the time of rollover of the term deposit(s).
(c) Liquidity risk
The Company’s principal financial assets are cash and short-term deposits. The Company has taken steps to reduce risk
of significant exposure to its cash holdings. Excess cash funds have been invested in low risk Term Deposits with Bank of
China (Australia) Ltd (account located in Australia and funds in Australian dollars). The Company at the end of the
financial year held 1 Term Deposits with Bank of China for a total of $279,991 (2022: $773,665). These funds are
accessible without penalty with 30 days’ notice.
The Company’s principal financial liabilities are comprised of accounts payable. The maximum risk for the period ending
30 June 2023 extended to trade creditors, other expenses and employee related expenses amounting to $177,370 (2022:
$120,916); with trade creditors ($36,429) due to be paid within the next 30 days at a maximum (2022: $21,634), other
expenses ($71,268) (2022: $23,663) and employee related expenses ($69,673) (2022: $75,619) categorised as due within 1
year. The Company has sufficient funds to meet these requirements.
56
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15: FINANCIAL RISK MANAGEMENT continued
(d) Management of Capital
The Company’s main objective when managing capital is to safeguard the Company’s ability to continue as a going
concern with the ultimate goal of providing returns for shareholders. The Company’s capital consists of ordinary shares
issued.
The Company currently has no loans or other borrowings that form part of the capital structure and therefore is not
exposed to any financial covenants.
This year the Company made changes to the capital structure by issuing an additional 238,131,000 shares.
(e) Fair values
The financial assets and liabilities of the Company are recognised in the statement of financial position at their carrying
amount, which is a reasonable approximation of fair value in accordance with the accounting policies in note 1.
(f) Risk Exposures and responses
The Company manages its exposure to financial risks in accordance with its management policy. The Policy aims to protect
the financial assets of the Company by ensuring that control of funds is not compromised. Senior management is
responsible for reducing risk-taking activities by introducing and maintaining policies and risk management strategies.
The Company seeks to have minimum exposure to market forces by maintaining low-risk investment strategies of cash
reserves. The Company currently has no foreign exchange exposure and does not foresee having any in the near future
and therefore does not have a policy to address foreign exchange risk.
NOTE 16: EARNINGS PER SHARE
Total comprehensive (loss) for the year
Number of shares on issue
Weighted average number of shares on issue
Earnings per share
Basic – $ per share
Diluted – $ per share
30-Jun-202 3
30-Jun-2022
$
(888,383)
457,281,000
305,803,176
$
(437,302)
219,150,000
217,736,301
(0.0029)
(0.0029)
(0.0020)
(0.0020)
57
NOTES TO THE FINANCIAL STATEMENTS
NOTE 17: EVENTS AFTER THE END OF THE REPORTING PERIOD
Mr Colin MacKay, Non-executive director, resigned from his position on 7th July 2023. Mr MacKay is
yet to be replaced.
The Directors are not aware of any other matter or circumstance not otherwise dealt with in the report
or in the financial statements that has significantly or may significantly affect the operations of the
Company, the results of those operations or the state of affairs of the Company in subsequent
financial years.
NOTE 18: COMPANY DETAILS
The registered office of the Company is:
Level 1 Suite 107
25-29 Berry Street
North Sydney NSW 2060
The principal place of business of the Company is:
Level 1 Suite 107
25-29 Berry Street
North Sydney NSW 2060
58
DIRECTORS’ DECLARATION
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 of the financial
statements;
the attached financial statements and notes give a true and fair view of the Company’s financial
position as at 30 June 2023 and of its performance for the financial year ended on that date; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due.
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.
Mr. Sitong Wu
Executive Director and Acting CEO
Dated this 11th day of September, 2023
59
60
61
62
63
Region Project Tenement Status
Holder
% Interest
Comments
E 09/2147 Granted
Zeus
Resources Ltd
100%
E09/2791 Application
E09/2798 Application
E09/2865 Application
E09/2874 Application
E09/2886 Application
E09/2891 Application
E09/2880 Application
E 53/1603 Granted
E53/2197 Application
E59/2804 Application
E59/2806 Application
s
l
l
i
H
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t
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o
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l
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H
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E69/4147 Application
e
v
a
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s
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M
E69/4148 Application
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
Zeus
Resources Ltd
100%
Applied on 27/02/2023. Subject to
ballot.
Applied on 27/02/2023. Subject to
ballot.
Applied on 18/06/2023. Subject to
ballot.
Applied on 18/06/2023. Subject to
ballot.
Applied on 18/06/2023. Subject to
ballot.
Applied on 18/06/2023. Subject to
ballot.
Applied on 18/06/2023. Subject to
ballot.
Applied on 27/10/2021.
Applied on 20/03/2023.
Applied on 20/03/2023. Subject to
ballot
Applied on 03/04/2023
Applied on 03/04/2023
e
n
y
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M
64
CORPORATE GOVERNANCE STATEMENT
The Board is committed to achieving and demonstrating the highest standards of corporate governance. As
such, Zeus Resources Limited have adopted a corporate governance framework and practices to ensure they
meet the interests of shareholders.
The ASX Corporate Governance Council has published the Corporate Governance Principles and
Recommendations – 4th edition which takes effect for a listed entity’s first full financial year commencing on
or after 1 January 2020.
The Company has chosen to publish its Corporate Governance Statement on its website rather than in this
Annual Report. The Corporate Governance Statement and governance policies and practices can be found in
the corporate governance section of the Company’s website at:
https://www.zeusresources.com/wp-content/uploads/2023/09/Corporate-Governance-Statement-2023.pdf
65
SHAREHOLDER INFORMATION
Shareholder information is set out below:
(a) Distribution of quoted securities:
(b) The names of the twenty largest holders of quoted securities are listed below:
(c) Substantial Shareholders:
(d) There are 353 holders holding less than a marketable parcel of fully paid ordinary shares (ASX: ZEU) based on the closing
market price at 8 September 2023.
There are 63 holders holding less than a marketable parcel of option expiring 07-Feb-2025 (ASX: ZEUO) based on the
closing market price at 8 September 2023.
(e) There is no current on-market buy-back.
(f) The Company does not currently have any class of unquoted equity securities set up on the ASX.
(g) Voting Rights
The voting rights attaching to each class of equity security are set out below:
Ordinary Shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
66
Top 20 Holdings as at 08-09-2023Zeus Resources Ltd Options $0.02 Exp 7.02.2025Name/Address 1Balance as at 08-09-2023%MS CHUNYAN NIU13,542,8096.83%MR COLIN MACKAY7,000,0003.53%M & K KORKIDAS PTY LTD 6,718,0193.39%MR YONGLU YU6,552,6543.31%DR SHANE LANGSFORD6,300,0003.18%MRS ANLAN CHEN5,000,0002.52%MR ANDREW EDWIN YOUNG4,896,7872.47%CITICORP NOMINEES PTY LIMITED4,840,9972.44%MR SCOTT ARTHUR CLUFF 4,237,2132.14%MR WILSON TED SIN CHEE & MISS PATTAMA KITTITHIRAPORNCHAI 4,200,0002.12%ANNBROOK CAPITAL PTY LTD4,051,6062.04%MR DEAN ANDREW KENT 4,000,0002.02%FRANGIPANI INVESTMENTS PTY LTD 4,000,0002.02%MR RAYMOND ALFRED JACKSON 3,900,0001.97%FLUE HOLDINGS PTY LTD3,750,0001.89%MR PAUL HARTLEY WATTS3,100,0001.56%MR MICHAEL HUGH RENWICK3,000,0001.51%I AND J CONSULTING PTY LTD2,961,5381.49%ASE INVESTMENTS PTY LTD 2,831,3701.43%MR NICK CHRIS ANTONIADES2,613,3261.32%Total Securities of Top 20 Holdings97,496,31949.20%Other Holders100,672,68150.80%Total of Securities198,169,000100.00%Top 20 Holdings as at 08-09-2023Zeus Resources Ltd Fully Paid OrdinaryName/Address 1Balance as at 08-09-2023%BNP PARIBAS NOMINEES PTY LTD (ZIMC)57,650,00012.55%VAST HONOUR GLOBAL LIMITED57,534,50012.53%MS CHUNYAN NIU22,781,4854.96%BNP PARIBAS NOMINEES PTY LTD 20,918,9404.55%MR PETER GEOFFREY BINET20,540,5404.47%MRS ANLAN CHEN17,531,6133.82%MR COLIN MACKAY12,500,0002.72%MR HOANG HUY HUYNH11,923,7962.60%MR DEAN ANDREW KENT 7,400,0001.61%M & K KORKIDAS PTY LTD 5,250,0001.14%BNP PARIBAS NOMS PTY LTD 5,015,0001.09%MR BHUMIT KANU BHAI THUMAR4,791,6541.04%MR YONGLU YU4,583,0081.00%BARBARY COAST INVESTMENTS PTY LTD 4,511,3090.98%FRANGIPANI INVESTMENTS PTY LTD 4,000,0000.87%MR RICHARD ELKINGTON & MRS CHRISTINE ELKINGTON 3,958,6830.86%MR NICK CHRIS ANTONIADES3,426,6520.75%MR WILSON TED SIN CHEE & MISS PATTAMA KITTITHIRAPORNCHAI 3,300,0000.72%CITICORP NOMINEES PTY LIMITED2,779,2960.61%VERMAR PTY LTD 2,700,0000.59%Total Securities of Top 20 Holdings321,600,19170.02%Other holders137,680,80929.98%Total of Securities459,281,000100.00%Zeus Resources LtdAnalysis of Holdings as at 08-09-2023SecuritiesOptions $0.02 Exp 7.02.2025Holdings RangesHoldersTotal Units%1-1,00021,0010.001,001-5,000513,9180.015,001-10,000646,9170.0210,001-100,0001055,496,9912.77100,001-9,999,999,999172192,610,17397.19Totals290198,169,000100.00Zeus Resources LtdAnalysis of Holdings as at 08-09-2023SecuritiesFully Paid OrdinaryHoldings RangesHoldersTotal Units%1-1,000202,7220.001,001-5,0001235,9430.015,001-10,0002021,924,8430.4210,001-100,00042519,911,8174.34100,001-9,999,999,999373437,405,67595.24Totals1,032459,281,000100.00 Fully Paid OrdinaryOptions $0.02 Exp 7.02.2025Name/Address 1Balance as at 08-09-2023%Balance as at 08-09-2023%BNP PARIBAS NOMINEES PTY LTD (ZIMC)57,650,00012.55%00.00%VAST HONOUR GLOBAL LIMITED57,534,50012.53%00.00%Total Holders with > 5% FPO115,184,50025.08%00.00%Total of Securities459,281,000100.00%198,169,000100.00%