Financial Report for the year ended 30 June 23

Aura Energy Limited
26 September 2023
 

 

0

 

Aura Energy Limited                                                                                      0

 

 

                                                                                                                       26 September 2023

Aura Energy Limited

("Aura" or the "Company")

 

 

Audited Financial Report for the year ended 30 June 2023

 

 

Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company") is pleased to announce that it has released its Audited Financial Report for the year ended 30 June 2023 ("Financial Report").

A full version of the Financial Report can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/7109N_1-2023-9-26.pdf

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018.  Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

 

For Further Information, please contact:

 

David Woodall

Managing Director and CEO

Aura Energy Limited

info@auraenergy.com.au

 

Paul Ryan

Citadel-MAGNUS

Investor & Media Relations

Pryan@citadelmagnus.com

+61 409 296 511

SP Angel Corporate Finance LLP

(Nominated Advisor and Joint Broker)

David Hignell

Kasia Brzozowska

+44 (0) 203 470 0470

 

WH Ireland Limited

(Joint Broker)

James Bavister

Andrew de Andrade

+44 (0) 207 220 1666

 

 

About Aura Energy (ASX:AEE, AIM:AURA)

 


Aura Energy is an Australian-based minerals company that has major uranium and polymetallic projects with large resources in Africa and Europe. The Company is now focused on uranium production from the Tiris Project, a major greenfield uranium discovery in Mauritania.

 

A recent Enhanced Feasibility Study has increased the project NPV significantly which reconfirms Tiris as one of the lowest capex, lowest operating cost uranium projects that remain undeveloped in the world.

 

In October 2021, the Company entered a US$10m Offtake Financing Agreement with Curzon, which includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.

 

In 2023, Aura will continue to transition from a uranium explorer to a uranium producer, to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy sector.


 
 


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Aura Energy Limited

ABN 62 115 927 681

Audited Financial Report

for the year ended 30 June 2023


 

Aura Energy Limited                                                                                      0

 

 

 

 

 

 

AURA ENERGY LIMITED

Audited Financial Report - 30 June 2023 TABLE OF CONTENTS

 

Directors' report                                                                                                                  1

Directors and company secretary                                                                                1

Principal activities                                                                                                      1

Dividends - Aura Energy Limited                                                                               1

Review of operations                                                                                                 1

Material business risks                                                                                               1

Significant changes in the state of affairs                                                                                      3

Events since the end of the financial year                                                                                     3

Environmental regulation                                                                                           3

Information on directors                                                                                            4

Company secretary                                                                                                     7

Meetings of directors                                                                                                 7

Remuneration report                                                                                                  8

Proceedings on behalf of the company                                                                                          14

Non-audit services                                                                                                    14

Auditor's independence declaration                                                                         14

Shares under option                                                                                                                                14

Financial statements                                                                                                        17

Independent auditor's report to the members                                                                                      52


 

 

Your directors present their report on the consolidated entity consisting of Aura Energy Limited and the entities it controlled at the end of, or during, the year ended 30 June 2023. Throughout the report, the consolidated entity is referred to as the Group.

DIRECTORS AND COMPANY SECRETARY

The following persons held office as directors of Aura Energy Limited during the financial year:

Mr Philip Mitchell Dr Warren Mundine Mr Bryan Dixon

Mr Patrick Mutz

Mr David Woodall (appointed 17 October 2022)

The following persons held office as company secretary of Aura Energy Limited during the financial year:

Mr Phillip Hains

PRINCIPAL ACTIVITIES

The principal activities of the Group during the financial year were exploration and evaluation of uranium, vanadium and gold and base metals in Mauritania and Sweden. There was no significant change in the nature of these activities during the year.

DIVIDENDS - AURA ENERGY LIMITED

No dividends were declared or paid to members for the year ended 30 June 2023. The directors do not recommend that a

dividend be paid in respect of the financial year.

REVIEW OF OPERATIONS

The Group's consolidated net loss for the year ended 30 June 2023 after providing for income tax amounted to $6,795,514 (2022: $3,403,791).

The loss for the period is primarily driven by:

•     General and administration expenses of $2,808,555 (2022: $1,470,842);

•     Employee benefits expenses of $913,929 (2022: $505,389);

•     Share-based payments of $2,472,578 (2022: $1,187,254), offset by

•     Interest income of $62,892 (2022: $1,676)

Included in the result for the financial year is a loss from disposal group of $674,420 (2022: $275,696).

Cash and cash equivalents at 30 June 2023 was $11,238,716 (2022: $9,950,777). Capitalised exploration and evaluation assets was $27,248,300 (2022: $22,323,176).

MATERIAL BUSINESS RISKS

Management of the business and the execution of the Board's strategy are subject to a number of key risks and uncertainties, our approach to managing these is detailed below:

Health and safety

Exploration and mining include safety risks from both internal and external factors and require necessary precautions to be put in place to minimise adverse outcomes. The most prominent risk, due to the geological spread of exploration activities,

is associated with the transportation of personnel to and from project sites, particularly the risk of road injuries and fatalities. The Company has in place an OH&S policy that is required to be adhered to at all times by its employees and contractors and will implement additional policies and protocols as activity ramps up, including transportation standards policies, vehicle safety checks and establishing emergency response protocols.

Exploration and Development Risks

Mineral exploration and development activities are inherently risky. There is a risk that the feasibility study and associated technical work may not achieve the expected results and that a failure to develop and operate projects in accordance with expectations could negatively impact results of operations and the company's financial position. Risks to the Company's development projects include the ability to acquire and/or obtain appropriate access to property, regulatory approvals, supply chain risks, construction and commissioning risks.


 



 

 


MATERIAL BUSINESS RISKS (CONTINUED)

Aura is continuing the FEED (Front End Engineering Design) studies for the Tiris Development Project, including optimisation strategies and incorporating outcomes from the Enhanced Feasibility Study released in the March 2023 Quarter. These studies aim to enhance the recovery of U3O8 within the leaching, ion exchange, and precipitation circuits to optimize the production profile. The FEED work remains on schedule for completion in Q4 2023, with long-lead items already identified to ensure timely delivery for the Tiris Project's construction.

 

Community/Social Risk

The Group's operations take place amidst varying cultural practices. The evolving expectations of these communities are managed through active community engagement, development and implementation of community relations strategies based on stakeholder concerns and maintaining strong relationships with communities and delivering on its commitments.

Regulatory and Compliance Risk

The company faces challenges related to new or evolving regulations and standards that are beyond its control. These regulations are often complex and challenging to predict. Opportunities for growth and development may be at risk due to changes to fiscal or regulatory frameworks, adverse changes in tax or other law, differences in sustainability standards and practices, or shifts in existing political, judicial, or administrative policies, as well as evolving community expectations.

Anti-Bribery and Corruption Risk

Aura has a clear policy alongside internal controls and procedures aimed at mitigating risks associated with Anti-Bribery

and Corruption, includes providing training and compliance programs to both employees and contractors. These programs address various risks and associated scenarios, including unauthorised payments or offers of payments involving employees, agents, or distributors, which could potentially violate relevant anti-corruption laws.

Operations in Foreign Jurisdictions

The Company operates in foreign jurisdictions, specifically in Mauritania and Sweden, where its projects are located. These projects are exposed to various risks, including the potential for unfavourable political and economic changes, fluctuations and controls related to foreign currency, civil unrest, political upheavals, or conflicts. Furthermore, unforeseen events can curtail or interrupt operations on these properties, restrict capital movement, or lead to increased taxation. The Company remains proactive and closely monitors the political and economic landscapes of the jurisdictions in which it operates.

Market Risk

The Company is developing mineral projects with the intention to produce commodities for sale across a variety of markets. Forecast of supply and demand dynamics and the pricing that may be received for those products is inherently complex and subject to factors outside of the Company's control. There is a risk that factors outside of the Company's control may negatively affect markets. These factors could include geopolitical events, over supply or reduced demand. The Company mitigates this risk through efforts to engage offtake contracts to ensure consistency in pricing and through diversification of products.

Funding Risk

The Company will require additional funding to bring the Tiris Uranium Project into production and advance the Häggån Polymetallic Project. There is a risk that funding may not be available on acceptable terms for these projects. The Company seeks to mitigate this risk by diversifying potential funding sources between debt, equity and other options. Additional work to derisk technical, social, environmental and permitting will increase the availability of funding options.


 

 

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the directors there were no significant changes in the state of affairs of the Group that occurred during the

year.

EVENTS SINCE THE END OF THE FINANCIAL YEAR

Subsequent to the end of the financial year, the Company released the Scoping Study for its Häggån Project in Sweden which confirmed the scale and optionality of the Company's Critical Minerals Project in Sweden. Please refer to the announcement dated 5 September 2023 for more details.

 

No other matter or circumstance has arisen since 30 June 2023 that has significantly affected the Group's operations, results or state of affairs, or may do so in future years.

ENVIRONMENTAL REGULATION

The Group is commencing exploration and evaluation activities in Mauritania and Sweden. Both countries have environmental regulation for the conduct of exploration activities. The Company has complied with these environmental regulations in the conduct of all field activities.

 

The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act has no effect on the Company for the current, nor subsequent, financial year. The directors will reassess this position as and when the need arises.


 

INFORMATION ON DIRECTORS

The following information is current as at the date of this report.

 

MR PHILIP MITCHELL NON-EXECUTIVE CHAIRMAN

 

Experience and expertise

Mr Mitchell has significant experience in mining M&A having held former roles as Head of Business Development and Strategy at Rio Tinto, CFO of Rio Tinto Iron Ore, member of the Executive Committee at Anglo American and also headed acquisitions for billionaire Robert Friedland's company, High Power Exploration.

 

As Head of Business Development and Strategy at Rio Tinto, Mr Mitchell was responsible for managing all aspects of the company's asset and commodity portfolio, including the Ranger uranium mine in addition to the strategic positioning of the company. Mr Mitchell was also accountable for portfolio M&A acquisitions and divestments, in addition to the daily management of the BHP takeover proposal.

As the Chief Financial Officer of Rio Tinto's iron ore business, one the largest Australian business units, he oversaw all commercial aspects of the business including relationships with all JV partners and with government. Mr Mitchell was also responsible for developing the strategic plan that saw Rio Tinto Iron Ore dominate profitable expansion to support China's growth. In 2021, Mr Mitchell lead the acquisition of the Nimba Iron Ore project for Robert Friedland's HPX including the purchase arrangements with BHP, Newmont and Orano and the negotiation of the agreements with the Governments of Guinea and Liberia.

Mr Mitchell holds a Bachelor of Economics Degree at the Australian National University

Date of appointment

21 December 2021

Other current public directorships

None

Former public directorships in last 3 years

None

Interests in shares and

options

Shares

10,199,566

Options

-


 

MR WARREN MUNDINE NON-EXECUTIVE DIRECTOR

 

Experience and expertise

Mr Nyunggai Warren Mundine AO is a member of the Bundjalung Indigenous Nation of Australia and a descendant of the Gumbaynggirr and Yuin Indigenous Nations of Australia. He is from Grafton, NSW.

 

Mr Mundine is a highly respected and influential businessman, political strategist and advocate for empowering the Indigenous people of Australia to build businesses and sustainable economies. He has more than 40 years' experience working in the public, private and community sectors. He has advised successive Australian governments since 2004 and his appointment as Chairman of the Prime Minister's Indigenous Advisory Council from 2013 to 2017 follows a long career in the public, business, policy, arts and community sectors.

He is currently Chairman and Managing Director of Nyungga Black Group, Chairman of the Australian Indigenous Education Foundation and a Governor for the Committee for the Economic Development of Australia, Chairman of Fuse Minerals and Aura Energy, Director - Indigenous Forum at the Centre for Independent Studies and was previously Chairman of Real Futures, RISE Ventures, NAISDA College, NAISDA Foundation and the Australian Indigenous Chamber of Commerce, among others.

Date of appointment

21 December 2021

Other current public directorships

None

Former public directorships in last 3 years

None

Interests in shares and

options

Shares

3,000,000

Options

-

 

MR BRYAN DIXON NON-EXECUTIVE DIRECTOR

 

Experience and expertise

Mr Dixon has extensive experience in the mining sector and the management of publicly listed companies. Mr Dixon has held a numerous executive and director roles with emerging resource companies. He was a joint winner of the Mines and Money Asia-Pacific Mining Executive of the Year in 2017.

 

Mr Dixon has held numerous director and management roles with emerging resource companies, and was the founding Managing Director of Blackham Resources (ASX:BLK), now Wiluna Mining Corporation (ASX: WMC).

 

Previously, Mr Dixon was employed by an international accounting firm, Resolute Limited and Archipelago Resources, and specialises in project acquisition, exploration, feasibility, financing, development and operations of mining projects to production.

 

Mr Dixon holds Bachelor of Commerce Degree at the University of Western Australia. He is an Associate Member of Chartered Accountants Australia and New Zealand, and an Associate Member of Governance Institute of Australia.

Date of appointment

21 December 2021

Other current public directorships

Burley Minerals Ltd (ASX: BUR)

Former public directorships in last 3 years

Lithium Australia NL (ASX: LIT), until 27 January 2021

Interests in shares and

options

Shares

3,108,108

Options

-


 

MR PATRICK MUTZ NON-EXECUTIVE DIRECTOR

 

Experience and expertise

Specialising in uranium projects in the USA, Australia and Africa, Mr Mutz holds over 40 years, of international mining experience across technical, managerial, consulting, executive and director roles, across all aspects of the mining industry from exploration through to project development, mining and mine rehabilitation. He also has uranium operational experience in open cut, underground, and in-situ mining and related processing.

He formerly held the roles of Managing Director & CEO of African focussed uranium company, Deep Yellow (ASX: DYL), and Alliance Resources (ASX: AGS). Mr Mutz also held the roles of General Manager and Managing Director of General Atomics Technology Co in California, USA, a company specialising in research and technology development, including physics research in support of nuclear fission and nuclear fusion technology.

Mr Mutz also previously served as Managing Director and CEO of a number of private mining companies based in Australia, primarily involved with project development and transitioning companies from exploration to production.

Mr Mutz is currently Managing Director & CEO of Image Resources (ASX: IMA) ("Image"),

a Western Australian mineral sands mining company, where he led Image through the successful transition from advanced explorer to profitable mining company, including feasibility study, capital raising, construction, rapid commissioning and full production that led to early repayment of all debt and payment of annual dividends after only the second and third years of operation. Mr Mutz holds a Bachelor of Science with Honours and an MBA, both from the University of Phoenix, and is a Fellow of AusIMM.

Date of appointment

18 May 2022

Other current public directorships

Image Resources NL (ASX: IMA)

Former public directorships in last 3 years

None

Interests in shares and

options

Shares

2,000,000

Options

-


 

MR DAVID WOODALL MANAGING DIRECTOR & CEO

 

Experience and expertise

Mr Woodall is a senior, corporate executive with a mining engineering qualification and 30 years' experience across exploration, operations, project development, community alignment and engagement in the mineral resources industry including rare earths, critical minerals, gold, copper, iron ore and nickel.

 

He has broad international experience across the value chain (operations, asset management, technical, exploration, financial, marketing, project development, business development, strategy and investor engagement) at operational, corporate and board levels to maximise shareholder value.

 

Mr Woodall has overseen transformation and change management in complex and difficult operating environments, driving and linking strategic, operational and transformational change strategies in organisations. His experience in managing large, geographically distant teams across multiple locations and different cultures.

 

He is a member of the Australian Institute of Mining and Metallurgy (AusIMM) and a member of the Australian Institute of Company Directors (AICD).

Date of appointment

17 October 2022

Other current public directorships

None

Former public directorships in last 3 years

Australian Strategic Minerals Ltd (ASX: ASM), until 15 July 2022 Grange Resources Limited (ASX: GRR), until 30 April 2021

Interests in shares and

options

Shares

16,162,162

Options

-

COMPANY SECRETARY

The Company secretary is Mr Ross Kennedy (appointed 12 September 2023).

Ross is a Fellow, Australian Institute of Company Directors, Fellow, Governance Institute of Australia and a Chartered Accountant. He has over 30 year's experience in providing businesses with company secretarial, compliance and general management services.

 

MEETINGS OF DIRECTORS

The numbers of meetings of the Company's board of directors and of each board committee held during the year ended 30 June 2023, and the numbers of meetings attended by each director were:

 


Full meetings of directors

Meetings of committees

Audit

Remuneration

A

B

A

B

A

B








 

Mr Philip Mitchell

8

8

-

-

-

-

Dr Warren Mundine

6

8

1

2

1

1

Mr Bryan Dixon

8

8

2

2

1

1

Mr Patrick Mutz

8

8

2

2

1

1

Mr David Woodall

6

6

-

-

-

-

A = Number of meetings attended

B = Number of meetings held during the time the director held office or was a member of the Audit & Risk Committee or the Remuneration & Nomination Committee during the year.


 

REMUNERATION REPORT

The directors present the Aura Energy Limited 2023 remuneration report, outlining key aspects of our remuneration policy and framework, and remuneration awarded this year.

The report is structured as follows:

(a)         Key management personnel (KMP) covered in this report

(b)        Remuneration policy and link to performance

(c)         Remuneration expenses

(d)        Link between remuneration and performance

(e)         Share-based compensation

(f)         Other transactions with KMP

 

(A) KEY MANAGEMENT PERSONNEL COVERED IN THIS REPORT

Non-executive and executive directors (see pages 4 to 7 for details about each director) Mr Philip Mitchell, Non-Executive Chairman

Dr Warren Mundine, Non-Executive Director

Mr Bryan Dixon, Non-Executive Director

Mr Patrick Mutz, Non-Executive Director

Mr David Woodall, Managing Director & CEO (appointed 17 October 2022)

 

Other key management personnel

Dr Will Goodall, Chief Development Officer

(Acting Chief Executive Officer from 13 January 2022 to 16 October 2022)

 

(B) REMUNERATION POLICY AND LINK TO PERFORMANCE

Our remuneration committee is made up of independent non-executive directors. The committee reviews and determines our remuneration policy and structure annually to ensure it remains aligned to business needs, and meets our remuneration principles. In particular, the board aims to ensure that remuneration practices are:

•     competitive and reasonable, enabling the Company to attract and retain key talent

•     aligned to the Company's strategic and business objectives and the creation of shareholder value

•     transparent and easily understood, and

•     acceptable to shareholders.


(C)  REMUNERATION EXPENSES

The following table shows details of the remuneration expense recognised for the Group's executive key management personnel for the current and previous financial year measured in accordance with the requirements of the accounting standards.

The following table shows details of remuneration expenses of each director or other key management personnel recognised

for the year ended 30 June 2023.

 

2023

Short-term benefits

Post-        Long-

employment         term

benefits  benefits

Share-based

payments

Cash

salary       Cash  Annual

and fees     bonus       leave    Other

$              $               $             $

Long

Super-     service

annuation         leave

$                 $

Loan funded

shares           Total

$                   $

 

Non-executive directors


Mr Philip Mitchell

60,000

-

-

-

-

-

776,394

836,394

Dr Warren Mundine

36,199

-

-

-

3,801

-

209,734

249,734

Mr Bryan Dixon

40,000

-

-

30,500

-

-

209,734

280,234

Mr Patrick Mutz

36,199

-

-

-

3,801

-

62,540

102,540

Non-executive directors









Mr David Woodall

310,764

-

27,007

-

25,208

175

500,323

863,477

Other KMP









Dr Will Goodall

364,800

50,000

19,997

-

-

351

178,463

613,611










Total KMP compensation

847,962

50,000

47,004

30,500

32,810

526

1,937,188

2,945,990

 

Notes

•     During the year ended 30 June 2023, the Group engaged Mr Bryan Dixon for consulting services. These services amounted to $30,500.

•     Cash bonus includes the amount paid or accrued in the year ended 30 June 2023 in relation to FY 2023 performance.


(C)  REMUNERATION EXPENSES (CONTINUED)

The following table shows details of remuneration expenses of each director or other key management personnel recognised

for the year ended 30 June 2022.

 

2023

Short-term benefits

Post- employment

benefits

Long-                          Share-based

term                            payments

benefits

Cash

salary     Annual

and fees       leave

$              $

 

Super- Other           annuation

$                $

Long                Loan

service                     funded

leave              shares

$                      $

 

 

Total

$

 

Non-executive directors


Mr Philip Mitchell

31,774

-

-

-

-             474,902

506,676

Dr Warren Mundine

19,257

-

-

1,926

-             118,725

139,908

Mr Bryan Dixon

21,183

-

17,000

-

-             118,725

156,908

Mr Patrick Mutz

4,301

-

-

430

-                      -

4,731

Mr Martin Rogers

75,000

-


-

-

75,000

Mr Peter Ward

40,000

-


-

-

40,000

Executive directors







Mr Peter Reeve

94,203

-

-

9,420

-                      -

103,623

Other KMP







Dr Will Goodall

137,500

11,437

-

-

-             104,429

253,366








Total KMP compensation

423,218

11,437

17,000

11,776

-             816,781

1,280,212

 

Notes

•     During the year ended 30 June 2022, the Group also engaged Mr Bryan Dixon, Mr Patrick Mutz and Dr Will Goodall for consulting services prior to their appointments as KMP. These services amounted to $2,151, $12,563 and $47,700, respectively.

•     On 21 December 2021, the Group issued loan funded shares to Dr Will Goodall as an eligible consultant prior to his appointment as KMP. During the year ended 30 June 2022, $14,297 has been recognised as a share-based payment to Dr Goodall as a consultant.

•     Similarly, on 21 December 2021, the Group issued loan funded shares to Mr Peter Reeve as an eligible employee after his resignation as KMP. During the year ended 30 June 2022, $118,725 has been recognised as a share-based payment to Mr Reeve.


(D)  LINK BETWEEN REMUNERATION AND PERFORMANCE

 

(i) Relative proportions of fixed vs variable remuneration expense

 

The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed, based on the amounts disclosed as statutory remuneration expense on page 10 above:

 

Name                                                   Fixed remuneration                              STI                                             LTI


2023

%

2022

%

2023

%

2022

%

2023

%

2022

%

Non-executive directors







Mr Philip Mitchell

7

6

-

-

93

94

Dr Warren Mundine

16

15

-

-

84

85

Mr Bryan Dixon

25

24

-

-

75

76

Mr Patrick Mutz

39

100

-

-

61

-

Mr Martin Rogers

-

100

-

-

-

-

Mr Peter Ward*

-

100

-

-

-

-

Executive directors







Mr David Woodall

42

-

-

-

58

-

Mr Peter Reeve*

-

100

-

-

-

-

Other KMP







Dr Will Goodall

63

59

8

-

29

41

 

Notes

*Mr Peter Ward and Peter Reeve resigned on 21 December 2021

(E)  SHARE-BASED COMPENSATION

(i)     Terms and conditions of the share-based payment arrangements

Options

Aura Energy Limited operates an ownership-based scheme for directors and executives of the Group. In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors and executives may be granted options to purchase parcels of ordinary shares at an exercise price as determined at the time options are granted.

 

Each option converts into one ordinary share of the Group on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.

 

The number of options granted is approved by shareholders at a previous annual general meeting. The scheme rewards directors and executives against the extent of the Group's and individual's achievement against criteria from the following measures:

•     improvement in share price

•     improvement in return to shareholders


(i) Terms and conditions of the share-based payment arrangements (continued)

Loan funded securities

Aura Energy Limited operates a loan funded equity scheme for directors, executives and senior consultants of the Group.

In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors,

executives and senior consultants may be granted loan funded securities.

Each loan funded share converts into one ordinary share of the Group on issue. The loan funded shares rank equally with all

other fully paid ordinary shares on issue in the capital of the Group.

The number of loan funded shares granted is approved by shareholders at the annual general meeting of the Group.

For detailed disclosures please refer to Note 8(b).

(ii) Reconciliation of options, performance rights and ordinary shares held by KMP

Option holdings

 

2023

Balance at start

of the year1

Granted as remuneration

Exercised

Other changes2

Balance at end

of the year3

Vested and exercisable

Options







Mr Philip Mitchell

-

-

-

-

-

-

Dr Warren Mundine

-

-

-

-

-

-

Mr Bryan Dixon

-

-

-

-

-

-

Mr Patrick Mutz

-

-

-

-

-

-

Mr David Woodall

-

-

-

-

-

-

Dr Will Goodall

1,317,678

-

-

-

1,317,678

1,317,678


1,317,678

-

-

-

1,317,678

1,317,678

 

Notes

1         Balance may include shares held prior to individuals becoming KMP. For individuals who became KMP during the period,

the balance is as at the date they became KMP.

2         Other changes incorporates changes resulting from the issue of options pursuant to rights issue.

3         For former KMP, the balance is as at the date they ceased being KMP.


(ii) Reconciliation of options, performance rights and ordinary shares held by KMP (continued)

Share holdings

 

2023

Balance at start

of the year1

Granted as remuneration

Other changes2

Balance at end

of the year3

Ordinary shares





Mr Philip Mitchell

8,000,000

2,000,000

199,566

10,199,566

Dr Warren Mundine

2,000,000

1,000,000

-

3,000,000

Mr Bryan Dixon

2,000,000

1,000,000

108,108

3,108,108

Mr Patrick Mutz

-

2,000,000

-

2,000,000

Mr David Woodall

-

16,000,000

162,162

16,162,162

Dr Will Goodall

2,953,034

-

-

2,953,034


14,953,034

22,000,000

469,836

37,422,870

 

Notes

1 .  Balance may include shares held prior to individuals becoming KMP and exclude shares held by individuals who resigned

as KMP in prior year. For individuals who became KMP during the year, the balance is as at the date they became KMP.

2         Other changes incorporates changes resulting from the acquisition or disposal of shares.

3          For former KMP, the balance is as at the date they cease being KMP.

(F)  OTHER TRANSACTIONS WITH KMP

There are no other transactions with key management personnel of Aura Energy Limited

(G)  VOTING OF SHAREHOLDERS AT LAST YEAR'S ANNUAL GENERAL MEETING

Aura Energy Limited received more than 75% of favourable votes on its remuneration report for the 2022 financial year.

The Group did not receive any specific feedback at the 2022 annual general meeting or throughout the year on its

remuneration practices.

[This concludes the remuneration report, which has been audited]


 

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the

Corporations Act 2001.

NON-AUDIT SERVICES

During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, its

related practices and non-related audit firms:

 


2022

$

2021

$

Taxation services



Hall Chadwick WA Audit Pty Ltd: Tax compliance services

14,101

2,971

Total remuneration for taxation services

14,101

2,971

 




 

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 16.

SHARES UNDER OPTION

(a)   Unissued ordinary shares

Unissued ordinary shares of Aura Energy Limited under option at the date of this report are as follows:

 

Date options issued

Expiry date

Issue price of

Shares

Number under

option

2021-05-28 (AEEAAB)

2024-06-30

$0.052

384,616

2021-11-15 (AEEO)

2024-06-30

$0.052

89,221,366




89,605,982

 

No option holder has any right under the options to participate in any other share issue of the Company or any other entity.

(b)   Shares issued on the exercise of options

The following ordinary shares of Aura Energy Limited were issued during and after the year ended 30 June 2023 on the exercise

of options. No amounts are unpaid on any of the shares.

 

 

Date options issued

Date options

expire

Issue price of

Shares

Number under

option

2021-11-15

2024-06-30

$0.052

21,548,313

2021-03-17

2024-06-30

$0.052

2,384,615

2021-03-17

2024-06-30

$0.052

5,653,846

2021-03-17

2023-04-31

$0.104

1,923,076




31,509,850


 

This report is made in accordance with a resolution of directors.

 




Mr David Woodall

Managing Director & CEO

 

26 September 2023


 

 


 

 

 

 

 

 

 

 

 

 

 

 

AURA ENERGY LIMITED

Audited Financial Report

- 30 June 2023

ABN 62 115 927 681

 

 

 

FINANCIAL STATEMENTS

Consolidated statement of profit or loss and other comprehensive income                                              18

Consolidated statement of financial position                                                                                                           19

Consolidated statement of changes in equity                                                                               20

Consolidated statement of cash flows (direct method)                                                                                       22

Notes to the financial statements                                                                                                                                 23

DIRECTORS' DECLARATION                                                                                                               51
INDEPENDENT AUDIT REPORT TO MEMBERS                                                                                                                   52


 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2023

 


Notes

2023

$

2022

$

Continuing operations




Other income

2(a)

-

92,496

Other gains/(losses)

2(b)

11,076

(58,782)

Employee benefits


(913,929)

(505,389)

General and administration expenses

2(c)

(2,808,555)

(1,470,842)

Share-based payments

8

(2,472,578)

(1,187,254)

Operating loss


(6,183,986)

(3,129,771)

 

Finance income

 

2(d)

 

62,892

 

1,676

Loss before income tax


(6,121,094)

(3,128,095)

Income tax benefit

3

-

-

Profit from continuing operations


(6,121,094)

(3,128,095)

Loss from disposal group

11(b)

(674,420)

(275,696)

Loss for the year


(6,795,514)

(3,403,791)

Attributable to:




Owners of Aura Energy Limited


(6,492,350)

(3,573,298)

Non-controlling interests


(303,164)

169,507



(6,795,514)

(3,403,791)

 

Other comprehensive income




Exchange differences on translation of foreign operations


(1,371,500)

333,919

Other comprehensive income for the year


(1,371,500)

333,919

 

Total comprehensive loss for the year


 

(8,167,014)

 

(3,069,872)

Attributable to:


(7,855,170)

(3,245,917)

Owners of Aura Energy Limited


(311,844)

176,045

Non-controlling interests


(8,167,014)

(3,069,872)






Notes

Cents

Cents

Basic and diluted loss per share for loss attributable to the ordinary equity holders of the Company:




From continuing operations attributable to the ordinary equity holders of the company

18

(1.07)

(0.73)

From continuing operations and disposal group attributable to the ordinary equity holders of the company


(1.19)

(0.79)

 

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the

accompanying notes.


 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023

 


Notes

2023

$

2022

$

ASSETS

Current Assets




Cash at banks

4(a)

11,238,716

9,950,777

Trade receivables

4(b)

63,203

21,501

Other current assets


80,112

155,246

Assets classified as disposal group

11

2,735,650

2,453,620

Total current assets


14,117,681

12,581,144

 

Plant and equipment


 

5,158

 

4,557

Exploration and evaluation

5(a)

27,248,300

22,323,176

Total non-current assets


27,253,458

22,327,733

 

Total assets


 

41,371,139

 

34,908,877

 

LIABILITIES

Current liabilities




Trade and other payables

4(c)

1,310,087

1,201,706

Employee benefit obligations

5(b)

87,110

14,947

Other current liabilities


667

1,067

Liabilities directly associated with assets classified as disposal group

11

170,980

76,707

Total current liabilities


1,568,844

1,294,427

 

Net assets


 

1,568,844

 

1,294,427

 

EQUITY


 

39,802,295

 

33,614,450

 

Share capital

 

6(a)

 

81,832,301

 

69,357,543

Other equity


314,346

314,346

Other reserves

6(b)

4,464,106

3,946,825

Accumulated losses


(46,733,187)

(40,240,837)

Capital and reserves attributable to owners of Aura Energy Limited


39,877,566

33,377,877

Non-controlling interests


(75,271)

236,573

 

Total equity


 

39,802,295

 

33,614,450

 

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

 


 



 

Attributable to owners of Aura Energy Limited


 

Share

 

Other

 

Other

 

Accumulated


Non- controlling

 

Total


capital

equity

reserves

losses

Total

interests

equity


$

$

$

$

$

$

$

Balance at 1 July 2021

56,227,736

314,346

2,065,843

(36,607,011)

22,000,914

-

22,000,914

(Loss)/profit for the year

-

-

-

(3,573,298)

(3,573,298)

169,507

(3,403,791)

Other comprehensive loss

-

-

327,381

-

327,381

6,538

333,919

Total comprehensive income/(loss) for the year

-

-

327,381

(3,573,298)

(3,245,917)

176,045

(3,069,872)

 

Transactions with owners in their capacity as owners:








Contributions of equity, net of transaction costs and tax

7,787,082

-

-

-

7,787,082

-

7,787,082

Transfer to non-controlling interests

-

-

-

(60,528)

(60,528)

60,528

-

Options issued

-

-

2,030,390

-

2,030,390

-

2,030,390

Options exercised

5,167,725

-

(1,489,043)

-

3,678,682

-

3,678,682

Performance shares converted

175,000

-

(175,000)

-

-

-

-

Loan funded securities

-

-

1,187,254

-

1,187,254

-

1,187,254


13,129,807

-

1,553,601

(60,528)

14,622,880

60,528

14,683,408

Balance at 30 June 2022

69,357,543

314,346

3,946,825

(40,240,837)

33,377,877

236,573

33,614,450

 

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

 

 






Aura Energy Limited

 


20

 

 

 


 


                                 

 


 



 

Attributable to owners of Aura Energy Limited


 

Share

 

Other

 

Other

 

Accumulated


Non- controlling

 

Total


capital

equity

reserves

losses

Total

interests

equity


$

$

$

$

$

$

$

Balance at 1 July 2022

69,357,543

314,346

3,946,825

(40,240,837)

33,377,877

236,573

33,614,450

Loss for the year

-

-

-

(6,492,350)

(6,492,350)

(303,164)

(6,795,514)

Other comprehensive loss

-

-

(1,362,820)

-

(1,362,820)

(8,680)

(1,371,500)

Total comprehensive loss for the year

-

-

(1,362,820)

(6,492,350)

(7,855,170)

(311,844)

(8,167,014)

 

Transactions with owners in their capacity as owners:








Contributions of equity, net of transaction costs and tax

69,357,543

-

-

-

9,936,597

-

9,936,597

Options exercised

1,702,684

-

-

-

1,702,684

-

1,702,684

Transfer from reserves on exercise of options

592,477

-

(592,477)

-

-

-

-

Loan funded securities

-

-

2,472,578

-

2,472,578

-

2,472,578

Shares issued in lieu of payment

243,000

-

-

-

243,000

-

243,000


12,474,758

-

1,880,101

-

14,354,859

-

14,354,859

Balance at 30 June 2023

81,832,301

314,346

4,464,106

(46,733,187)

39,877,566

(75,271)

39,802,295

 

 

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

 

 






Aura Energy Limited

 


21

 

 

 


                                     

 


CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR

ENDED 30 JUNE 2023

 


Notes

2023

$

2022

$

Cash flows from operating activities

Payments to suppliers and employees (inclusive of GST)


 

(3,583,705)

 

(2,692,262)

Interest received


62,892

1,676

Net cash (outflow) from operating activities

9(a)

(3,520,813)

(2,690,586)

 

Cash flows from investing activities

Payments for property, plant and equipment


 

(2,457)

 

(5,753)

Payments for exploration and evaluation


(7,259,757)

(2,723,064)

Net cash (outflow) from investing activities


(7,262,214)

(2,728,817)

 

Cash flows from financing activities

Proceeds from issues of shares and other listed securities


 

10,670,490

 

10,805,390

Share issue transaction costs


(733,894)

(1,216,818)

Repayment of borrowings


-

(312,500)

Exercise of options


1,702,284

3,679,749

Net cash inflow from financing activities


11,638,880

12,955,821

 

Net increase in cash and cash equivalents


 

855,853

 

7,536,418

Cash and cash equivalents at the beginning of the financial period


10,706,700

3,206,855

Effects of exchange rate changes on cash and cash equivalents


(286,246)

(36,573)

Cash and cash equivalents at end of year

4(a)

11,276,307

10,706,700

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

 

1 SEGMENT INFORMATION

(A)   DESCRIPTION OF SEGMENTS AND PRINCIPAL ACTIVITIES

The Group operates predominately in the mining industry. This comprises exploration and evaluation of uranium projects.

Inter-segment transactions are priced at cost to the consolidated Group.

The Group has identified its operating segments based on the internal reports that are provided to the board of directors on a monthly basis. Management has identified the operating segments based on the three principal project - uranium, vanadium and gold and base metals. The Group also maintains a corporate function primarily responsible for overall management of the operating segments, raising capital and distributing funds to operating segments.

Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.

Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements. Financial assets including cash and cash equivalents, and investments in financial assets, are reported in the Treasury segment.

(B)   FINANCIAL BREAKDOWN

The segment information for the reportable segments for the year ended 30 June 2023 is as follows:

 

2023

Uranium

$

Vanadium

$

Gold and

base metals

$

Corporate

$

Total

$

Other gains

-

-

-

11,076

11,076

Total income

-

-

-

11,076

11,076

Employee benefits

-

-

-

(913,929)

(913,929)

General & administration expenses

(687)

(88,411)

-

(2,719,457)

(2,808,555)

Share-based payments

-

-

-

(2,472,578)

(2,472,578)

Finance costs - net

(763,833)

(544,760)

-

1,371,485

62,892

Loss from disposal group

-

-

(368,840)

(305,580)

(674,420)

Loss for the year

(764,520)

(633,171)

(368,840)

(5,028,983)

(6,795,514)

 

Assets Segment assets

 

20,155,913

 

7,092,387

 

2,698,059

 

11,424,780

 

41,371,139

Total assets

20,155,913

7,092,387

2,698,059

11,424,780

41,371,139

 

Liabilities

Trade and other payables

 

-

 

-

 

-

 

1,310,087

 

1,310,087

Provisions

-

-

-

258,090

258,090

Financial liabilities

-

-

-

667

667

Total liabilities

-

-

-

1,568,844

1,568,844


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

1 SEGMENT INFORMATION (CONTINUED)

(B) FINANCIAL BREAKDOWN (CONTINUED)

The segment information for the reportable segments for the year ended 30 June 2022 is as follows:

 

2022

Uranium

$

Vanadium

$

Gold and

base metals

$

Corporate

$

Total

$

Segment income

-

-

-

92,496

92,496

Other gains/(losses)

920,600

(957,403)

-

(21,979)

(58,782)

Total income

920,600

(957,403)

-

70,517

33,714

 

Employee benefits

 

-

 

-

 

-

 

(505,389)

 

(505,389)

General & administration expenses

(299)

(26,512)

-

(1,444,031)

(1,470,842)

Share-based payments

-

-

-

(1,187,254)

(1,187,254)

Finance costs - net

(495,429)

(239,749)

-

736,854

1,676

Loss from disposal group

-

-

17,905

(293,601)

(275,696)

Loss for the year

424,872

(1,223,664)

17,905

(2,622,904)

(3,403,791)

 

Assets

Segment assets

 

15,680,668

 

6,642,508

 

1,694,213

 

10,891,488

 

34,908,877

Total assets

15,680,668

6,642,508

1,694,213

10,891,488

34,908,877

 

Liabilities

Trade and other payables

 

-

 

-

 

-

 

1,201,706

 

1,201,706

Provisions

-

-

-

91,654

91,654

Financial liabilities

-

-

-

1,067

1,067

Total liabilities

-

-

-

1,294,427

1,294,427

 

2 OTHER INCOME AND EXPENSE ITEMS

(A)   OTHER INCOME

 

2023

$

2022

$

Other income                                                                                                         -

92,496

-

92,496

 

(B)   OTHER GAINS/(LOSSES)

 

2023

$

2022

$

Net gain/(loss) on foreign currency                                                                11,076

(58,782)

11,076

(58,782)


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

2 OTHER INCOME AND EXPENSE ITEMS (CONTINUED)

(C)   BREAKDOWN OF EXPENSES BY NATURE

 


2023

$

2022

$

General and administration expenses



Accounting and audit

(433,602)

(419,511)

Computers and communication

(110,207)

(41,429)

Consulting

(930,247)

(345,378)

Depreciation

(1,856)

(1,196)

Insurance

(185,809)

2,610

Investor relations

(177,576)

(144,841)

Legal

(70,508)

(116,693)

Listing and share registry

(216,448)

(274,895)

Occupancy

(38,561)

(24,796)

Travel and entertainment

(484,014)

(96,176)

Other

(159,727)

(8,537)


(2,808,555)

(1,470,842)

 

(D)   FINANCE INCOME

 


2023

$

2022

$

Finance income



Interest from financial assets not at fair value through profit or loss

62,892

1,676


62,892

1,676

 

3 INCOME TAX EXPENSE



(A) INCOME TAX EXPENSE




2023

$

2022

$

Income tax expense

-

-

 





NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

3 INCOME TAX EXPENSE (CONTINUED)

(B)   NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE

 


2023

$

2022

$

Loss from continuing operations before income tax expense

(6,121,094)

(3,128,095)

(Loss)/profit from disposal group before income tax expense

(674,420)

(275,696)


(6,795,514)

(3,403,791)

Tax at the Australian tax rate of 25% (2022: 25%)

Tax effect of amounts which are not deductible (taxable)

in calculating taxable income: Share-based payments

(1,698,879)

 

 

618,145

(850,948)

 

 

296,814

Other

76,383

140,703

Unrealised currency (gains)/losses

330,730

(42,562)

Superannuation liability

284

(12,999)

Employee leave obligations

24,295

(42,745)

Subtotal

(649,042)

(511,737)

Difference in overseas tax rates

7,410

11,091

Tax losses and other timing differences for which no deferred

tax asset is recognised

 

641,632

 

500,646

Income tax expense/(benefit)

-

-

 

(C)   TAX LOSSES

 


2023

$

2022

$

Unused tax losses for which no deferred tax asset has been recognised

24,929,202

22,362,674

Potential tax benefit @ 25% (2022: 25%)

6,232,301

5,590,669

 

The unused tax losses were incurred by a dormant subsidiary that is not likely to generate taxable income in the foreseeable future. They can be carried forward indefinitely.

 

 

4 FINANCIAL ASSETS AND FINANCIAL LIABILITIES

(A)   CASH AND CASH EQUIVALENTS

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise the following at 30 June:

 

 


2023

$

2022

$

Current assets Cash at banks

 

11,238,716

 

9,950,777

Cash at banks attributable to disposal group

37,591

755,923

Cash and cash equivalents

11,276,307

10,706,700


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

4 FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)

(A)   CASH AND CASH EQUIVALENTS (CONTINUED)

(i)       Classification as cash equivalents

Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours notice with no loss of interest. See Note 20(f) for the Group's other accounting policies on cash and cash equivalents.

(B)   TRADE AND OTHER RECEIVABLES

 

2023

2022


Current

Non-

Total

Current

Non-

Total


$

current

$

$

$

current

$

$

Other receivables

63,203

-

63,203

21,501

-

21,501

 

 

(i)       Fair value of trade and other receivables

Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.

(C)   TRADE AND OTHER PAYABLES

 

2023

2022


Current

Non-

Total

Current

Non-

Total


$

current

$

$

$

current

$

$

Trade payables

125,694

-

125,694

251,814

-

251,814

Accrued expenses

1,158,818

-

1,158,818

938,297

-

938,297

Payroll tax and other statutory

24,101

-

24,101

7,926

-

7,926

liabilities

1,474

-

1,474

3,669

-

3,669

Other payables

1,310,087

-

1,310,087

1,201,706

-

1,201,706


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

5 NON-FINANCIAL ASSETS AND LIABILITIES

(A)   EXPLORATION AND EVALUATION

 


Opening net book amount

Expenditure capitalised during the financial period Exchange differences


22,323,176

7,116,545

(1,187,576)


20,396,634

3,237,264

383,491


Assets transferred to disposal group                                                                 (1,003,846)  (1,694,213)


Closing net book value


27,248,300


22,323,176


 

 

The value of the Group's interest in exploration expenditure is dependent upon:

•     The continuance of the Group's right to tenure of the areas of interest;

•     The result of future exploration; and

•     The recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by

their sale.

The Group'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 Sweden and Mauritania.

 

As a result, exploration properties or areas within the tenements may be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify whether such claims exist, or the quantum of such claims.

 

As of 30 June 2023, the Company was awaiting the granting of the exploitation permit for the Oum Ferkik tenement for the Tiris Project and exploration renewal permits for Hadeibet Bellaa and Touerig Taet tenements, held by TIMCO. The Company has received confirmation from the Ministry of Petroleum, Mines, and Energy (MPME) that the tenements have been registered for renewal and that all fees have been paid in accordance with the regulatory provisions. The renewal permits

are expected to follow normal route and will be issued following the reopening of the Mining Cadastre in Q4 2023.

The consolidated entity has fulfilled its exploration obligation relating to the Nderk tenement, thereby earning a 70% equity interest in Nomads Mining sarl. It is currently in the process of completing the necessary documentation to formalise this arrangement. Similar to the tenement status for the Hadeibet Bellaa and Touerig Taet permits, a renewal application for the exploration permit for the Nderk tenement is pending as at 30 June 2023. The Company has received confirmation from the MPME that the Nderk tenement has been registered for renewal and that all fees have been paid in accordance with the regulatory provisions and that the renewal permit will follow normal route and will be issued following the reopening of the Mining Cadastre in Q4 2023.

As of 30 June 2023, the carrying value of the exploration and evaluation assets for the Oum Ferkik tenement was $120,721, and the Tasiast South Gold Project (Hadeibet Bellaa, Touerig Taet and Nderk tenements) was $2,698,059. The Group's Tasiast South Gold Project has been classified as part of the Group's held for sale assets. Please refer to note 11 for more details.


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

5 NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)

(B)   EMPLOYEE BENEFIT OBLIGATIONS

 

2023

2022


Current

Non-

Total

Current

Non-

Total


$

current

$

$

$

current

$

$

Leave obligations (i)

87,110

-

87,110

14,947

-

14,947

 

(i)       Leave obligations

The leave obligations cover the Group's liabilities for long service leave and annual leave which are classified as either other long-term benefits or short-term benefits, as explained in Note 20(i).

 

The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees have completed the required year of service and also for those employees that are entitled to pro-rata payments in certain circumstances. The entire amount of the provision of $87,110 (2022: $14,947) is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

6 EQUITY

(A) SHARE CAPITAL

 


Ordinary shares Fully paid


 

616,484,204


 

503,825,028


 

81,832,301


 

69,357,543


Total share capital                                                          616,484,204 503,825,028  81,832,301    69,357,543


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

6 EQUITY (CONTINUED)

(A)   SHARE CAPITAL (CONTINUED)

(i) Movements in ordinary shares:

 

Details

Number of

shares

Total

$

Balance at 1 July 2021

395,962,187

56,227,736

Shares issued on conversion of performance rights, valued at $0.273 (3 Aug 2021)

641,025

175,000

Shares issued at $0.104 on exercise of options (23 Sep 2021)

2,553,420

265,556

Shares issued at $0.052 on exercise of options (15 Oct 2021)

5,384,614

280,000

Shares issued at $0.098 on exercise of options (18 Oct 2021)

1,538,461

150,769

Shares issued at $0.104 on exercise of options (19 Nov 2021)

384,615

40,000

Shares issued at $0.052 on exercise of options (7 Dec 2021)

10,083,251

524,329

Shares issued at $0.052 on exercise of options (21 Dec 2021)

4,178,812

217,298

Shares issued at $0.052 on exercise of options (5 Jan 2022)

149,353

7,766

Shares issued at $0.052 on exercise of options (18 Jan 2022)

1,754,252

91,221

Shares issued at $0.052 on exercise of options (1 Feb 2022)

416,238

21,644

Shares issued at $0.052 on exercise of options (17 Feb 2022)

929,407

48,329

Shares issued at $0.052 on exercise of options (3 Mar 2022)

465,294

24,195

Shares issued at $0.250 pursuant to placement (17 Mar 2022)

35,200,000

8,800,000

Shares issued at $0.052 on exercise of options (23 Mar 2022)

2,237,476

116,349

Shares issued at $0.208 on exercise of options (23 Mar 2022)

2,000,000

416,000

Directors and consultants loan funded shares issued (1 Apr 2022)

20,000,000

-

Shares issued at $0.052 on exercise of options (6 Apr 2022)

7,056,673

366,947

Shares issued at $0.052 on exercise of options (21 Apr 2022)

8,027,502

417,430

Shares issued at $0.208 on exercise of options (3 May 2022)

2,807,692

584,000

Shares issued at $0.052 on exercise of options (20 May 2022)

2,054,756

106,847

Transfer from reserves on exercise of options during the period

-

1,489,045

Less: Transaction costs arising on share issues

-

(1,012,918)

Balance at 30 June 2022

503,825,028

69,357,543





Number of

shares

Total

$

Shares issued at $0.052 on exercise of options (19 Jul 2022)

7,692

400

Shares issued at $0.052 in lieu payment of services (19 Jul 2022)

1,500,000

78,000

Shares issued at $0.052 in lieu payment of services (19 Jul 2022)

660,000

165,000

Shares issued at $0.052 on exercise of options (12 Sep 2022)

385,865

20,065

Shares issued at $0.052 on exercise of options (30 Sep 2022)

5,600,583

291,230

Shares issued at $0.052 on exercise of options (4 Oct 2022)

6,999,930

363,996

Shares issued at $0.052 on exercise of options (14 Oct 2022)

11,569,585

601,618

Shares issued at $0.052 on exercise of options (4 Nov 2022)

869,563

45,217

Shares issued at $0.052 on exercise of options (18 Nov 2022)

505,000

26,260

Directors loan funded shares issued (21 Dec 2022)

22,000,000

-

Shares issued at $0.052 on exercise of options (7 Dec 2022)

707,641

36,797

Shares issued at $0.052 on exercise of options (13 Jan 2023)

247,594

12,875

Shares issued at $0.104 on exercise of options (13 Jan 2023)

1,923,076

200,000

Shares issued at $0.052 on exercise of options (3 Feb 2023)

466,823

24,275

Shares issued at $0.052 on exercise of options (20 Feb 2023)

1,183,128

61,523

Shares issued at $0.052 on exercise of options (6 Mar 2023)

13,332

693

Shares issued at $0.052 on exercise of options (20 Mar 2023)

332,692

17,300

Shares issued pursuant to Private Placement (10 May 2023)

54,054,055

10,000,000


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

6 EQUITY (CONTINUED)

(A)   SHARE CAPITAL (CONTINUED)

 


Number of

shares

Total

$

Shares issued at $0.052 on exercise of options (25 May 2023)

847

44

Shares issued at $0.052 on exercise of options (2 Jun 2023)

7,499

390

Shares issued pursuant to Share Purchase Plan (SPP) (20 Jun 2023)

3,624,271

670,490

Transfer from reserves on exercise of options during the period

-

592,478

Less: Transaction costs arising on share issues

-

(733,894)

Balance at 30 June 2023

616,484,204

81,832,301

(B)   OTHER RESERVES

The following table shows a breakdown of the consolidated statement of financial position line item 'other reserves' and the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the table.

 


Share-based

payments

$

Foreign currency translation

$

Total other

reserves

$

At 1 July 2021

1,593,238

472,605

2,065,843

Currency translation differences

-

327,381

327,381

Other comprehensive income

-

327,381

327,381

Transactions with owners in their capacity as owners Issue of options

 

2,030,390

 

-

 

2,030,390

Options exercised

(1,489,043)

-

(1,489,043)

Conversation of performance shares

(175,000)

-

(175,000)

Loan funded securities

1,187,254

-

1,187,254

At 30 June 2022

3,146,839

799,986

3,946,825

 

At 1 July 2022

 

3,146,839

 

799,986

 

3,946,825

Currency translation differences

-

(1,362,820)

(1,362,820)

Other comprehensive income

-

(1,362,820)

(1,362,820)

Transactions with owners in their capacity as owners Transfer from reserves on exercise of options

 

(592,477)

 

-

 

(592,477)

Loan funded securities

2,472,578

-

2,472,578

At 30 June 2023

5,026,940

(562,834)

4,464,106

(i) Nature and purpose of other reserves Foreign currency translation

Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in Note 20(d) and accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is disposed of.


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

7 OPTIONS

Set out below are summaries of all listed and unlisted options:

 

2023

2022


Average exercise

price per option

Number of options

Average exercise

price per option

Number of

options

As at 1 July

$0.05

122,584,284

$0.08

40,249,998

Granted during the year

-

-

$0.05

135,359,309

Expired during the year

$0.10

(1,116,452)

$0.29

(1,003,206)

Exercised during the year

$0.06

 (30,820,850)

$0.07

 (52,021,817)

As at 30 June

$0.05

90,646,982

$0.05

122,584,284

                                                                           

Share options outstanding at the end of the year have the following expiry date and exercise prices:

 


17 March 2021

17 March 2021

28 May 2021


31 March 2023

30 June 2024

30 June 2024


0.104

0.052

0.052


-

- 384,616


3,039,528

384,616

8,038,461


15 November 2021


30 June 2024


0.052


       90,262,366     111,121,679


 

Weighted average remaining contractual life of options outstanding at 30 June


90,646,982

1.00


122,584,284

1.97


 

8 SHARE-BASED PAYMENTS

(A)   PERFORMANCE RIGHTS

On 17 June 2018 the Group approved the award of 15,000,000 performance rights (pre consolidation) to Messrs Neil Clifford, John Madden and Dr Will Goodall with the board of directors ratifying the award on 4 September 2018. The performance rights were awarded under the Employee Share Plan.

The following tranches set out the vesting periods for the award of performance rights to the above-mentioned management

of the Company. Each tranche consists of 5,000,000 (pre consolidation) or 384,615 (post consolidation), vested as follows:

•     Tranche 1 on 17 June 2019

•     Tranche 2 on 17 June 2020

•     Tranche 3 on 17 June 2021

John Madden resigned on 22 December 2020 and is not entitled to his share of Tranche 3 performance rights.

On 3 August 2021, the Group converted the remaining Tranche 2 and Tranche 3 performance right into 641,025 ordinary shares

of the Group.

(B)   LOAN FUNDED SHARES

During the financial year ended 30 June 2023, $2,472,578 (30 June 2022: $1,187,254) has been recognised as a share-based payment expense incurred from 20 million and 22 million loan funded shares which were granted in December 2021 and November 2022, respectively.


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

8 SHARE-BASED PAYMENTS (CONTINUED)

(B) LOAN FUNDED SHARES (CONTINUED)

At the AGM on 21 December 2021, the shareholders approved the issue of loan funded shares to directors, executives and senior consultants (2021 Loan Funded Shares). The 2021 Loan Funded Shares were issued at $0.25 and have the following vesting conditions:

•     Tranches 1, 2 and 3:

•     Continuous employment/engagement with the Group; and

•     Tranche 1:

•     when the daily volume weighted average price (VWAP) of the Group's Shares meets the share price performance hurdle of $0.50 on 10 days on any 20 sequential trading days; and

•     eligible to vest 12 months after grant date;

•     Tranche 2:

•     when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and

•     eligible to vest 24 months after grant date;

•     Tranche 3:

•     when the daily VWAP of the Group's shares meets the share price performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and

•     eligible to vest 36 months after grant date.

The loan funded shares granted have been valued using a Monte Carlo Simulation, taking into account the terms and conditions upon which the loan funded shares were granted. The valuation of 2021 Loan Funded Shares for Key Management Personnel and consultants is summarised as follows:

2021 Loan Funded Shares

 

Key Management Personnel

Tranche 1

Tranche 2

Tranche 3

Share price hurdle

$0.50

$0.75

$1.00

Share price at grant date

$0.245

$0.245

$0.245

Grant date

21 December 2021

21 December 2021

21 December 2021

Expected volatility

145.6%

145.6%

145.6%

Expiry date

21 December 2026

21 December 2026

21 December 2026

Expected dividends

-

-

-

Risk Free interest rate

1.35%

1.35%

1.35%

Value per loan share

$0.2313

$0.2273

$0.1987

Number of loan shares

2,800,000

4,200,000

7,000,000

 

 

Consultants

Tranche 1

Tranche 2

Tranche 3

Share price hurdle

$0.50

$0.75

$1.00

Share price at grant date

$0.245

$0.245

$0.245

Grant date

21 December 2021

21 December 2021

21 December 2021

Expected volatility

145.6%

145.6%

145.6%

Expiry date

21 December 2026

21 December 2026

21 December 2026

Expected dividends

-

-

-

Risk Free interest rate

1.35%

1.35%

1.35%

Value per loan share

$0.2313

$0.2273

$0.1987

Number of loan shares

1,200,000

1,800,000

3,000,000


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

8 SHARE-BASED PAYMENTS (CONTINUED)

(B) LOAN FUNDED SHARES (CONTINUED)

At the AGM on 29 November 2022 the shareholders approved the issue of loan funded shares to directors (2022 Loan Funded Shares). The 2022 Loan Funded Shares were issued at $0.30 and have the following vesting conditions:

•     Tranches 1, 2 and 3:

•     Continuous employment/engagement with the Group; and

•     Tranche 1:

•     when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.50 on 10 days on any 20 sequential trading days; and

•     eligible to vest 12 months after grant date;

•     Tranche 2:

•     when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and

•     eligible to vest 24 months after grant date;

•     Tranche 3:

•     when the daily VWAP of the Group's shares meets the share price performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and

•     eligible to vest 36 months after grant date.

The loan funded shares granted have been valued using a Monte Carlo Simulation, taking into account the terms and conditions upon which the loan funded shares were granted. The valuation of 2022 Loan Funded Shares is summarised as follows:

2022 Loan Funded Shares

 

Key Management Personnel

Tranche 1

Tranche 2

Tranche 3

Share price hurdle

$0.50

$0.75

$1.00

Share price at grant date

$0.25

$0.25

$0.25

Grant date

29 November 2022

29 November 2022

29 November 2022

Expected volatility

82%

82%

82%

Expiry date

29 November 2027

29 November 2027

29 November 2027

Expected dividends

-

-

-

Risk Free interest rate

3.18%

3.18%

3.24%

Value per loan share

$0.0765

$0.0874

$0.0991

Number of loan shares

8,800,000

6,600,000

6,600,000


NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023

(CONTINUED)

9 CASH FLOW INFORMATION

(A)   RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES

 


Notes

2023

$

2022

$

Loss for the year


(6,795,514)

(3,403,791)

Adjustments for




Depreciation and amortisation

2(c)

1,856

1,196

Exchange fluctuation


(15,470)

25,720

Share-based payments


2,472,578

1,187,254