Financial Report for the year ended 30 June 23
|
|
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
|
Paul Ryan Citadel-MAGNUS Investor & Media Relations +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.
|
|
|||||||
Aura Energy Limited
ABN 62 115 927 681
Audited Financial Report
for the year ended 30 June 2023
|
AURA ENERGY LIMITED
Audited Financial Report - 30 June 2023 TABLE OF CONTENTS
Directors' report 1
Directors and company secretary 1
Dividends - Aura Energy Limited 1
Significant changes in the state of affairs 3
Events since the end of the financial year 3
Proceedings on behalf of the company 14
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.
|
|||
|
|||
 |
|
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.
|
|||
|
|||
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 |
|