REG - Artemis Resources Ld - Annual Report
29/09/2023 07:15
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RNS Number : 1468O Artemis Resources Limited 29 September 2023
This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.
29 September 2023
Artemis Resources Limited
("Artemis" or the "Company")
(ASX/AIM: ARV, FRA: ATY, US: ARTTF)
Annual Report for Year Ended 30 June 2023
The Directors of Artemis Resources Limited are pleased to announce the
Company's audited annual results for the year ended 30 June 2023.
An extract of the audited results are included below and the full Annual
Report is available on the Company's website
at https://artemisresources.com.au/ (https://artemisresources.com.au/) .
For further information, please contract:
Artemis Resources Limited via Camarco
Alastair Clayton
WH Ireland Limited
(Nominated Adviser and Broker)
Antonio Bossi / James Bavister / Isaac Hooper (Corporate Finance) Tel: +44 20 7220 1666
Camarco (Public Relations) Tel: +44 20 3781 9244
Gordon Poole / Emily Hall / Rebecca Waterworth Email: artemis@camarco.co.uk (mailto:artemis@camarco.co.uk)
Competent Persons Statement
The information in this announcement that relates to Exploration Results and
Exploration Targets is based on information compiled or reviewed by Mr. Steve
Boda, who is a Member of the Australasian Institute Geoscientists. Mr. Boda
is an employee of Artemis Resources Limited. Mr. Boda has sufficient
experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as
a Competent Person as defined in the 2012 Edition of the 'Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr.
Boda consents to the inclusion in the announcement of the matters based on his
information in the form and context in which it appears.
About Artemis Resources
Artemis Resources (ASX/AIM:ARV; FRA:ATY; US: ARTTF) is a Perth-based
exploration and development company, led by an experienced team that has a
singular focus on delivering shareholder value from its Pilbara gold projects
- the Greater Carlow Gold Project in the West Pilbara and the Paterson Central
exploration project in the East Pilbara.
Dear Shareholders,
On behalf of the Directors of Artemis Resources Limited, I am pleased to
report on the activities of the Group for the year ended 30 June 2023.
Artemis has a portfolio of valuable assets in the Pilbara, including the
Greater Carlow (Au-Cu-Co) project, its Osborne joint venture with GreenTech
Metals (Li), the Radio Hill processing plant (Au/Ni/Cu/Co) in the West
Pilbara, and the Paterson Central project (Au/Cu) in the East Pilbara.
A strategic review in May 2023 reaffirmed the Company's commitment to the
Pilbara, a realignment of its corporate focus and a significant reduction in
overhead costs.
At Greater Carlow the Company undertook a rapid assessment exploration
programme to identify new mineralisation within a 25km radius of the Carlow
Castle deposit. This program was successful in identifying new targets at LuLu
Creek, Europa, Marillion and Titan. Artemis calculated an Exploration target
of between 200,000 and 500,000 oz Au Eq to build on the existing 704,000 oz Au
Eq resource.
The drill program at Paterson Central, located 2km north and along strike of
Newcrest & Greatland Gold's 6.5 Moz AuEq Havieron gold-copper discovery
was a technical success, and an expensive program. Artemis is continuing to
evaluate third-party interest to fund the next stage of Paterson Central
exploration including potential financing and joint venture opportunities.
The Osborne Lithium-Nickel joint venture project where Artemis has been free
carried for over $1 million testing a nickel project, identified a significant
lithium prospect with rock chip samples of up to 3.6% Li2O. Artemis has one of
the largest West Pilbara tenement holdings (see image 1) between the joint
venture with Greentech to the west and the major Li discovery by Azure in the
east.
The Company is well capitalised with current cash balance of $1.7 million as
at 30 June 2023, a 10% interest in Greentech Metals with value over $3
million, and share options in the money with potential to raise $2.5 million.
With an efficient management structure, the Company is looking forward to a
positive year in 2023/2024 to build on its existing assets and new
opportunities identified by it and its joint venture partner.
We welcomed Vivienne Powe as a director during the year, and I take this
opportunity to thank Mark Potter, Alastair Clayton and Ed Mead for their
service to Artemis. The contribution of the Artemis team, consultants and
advisers is also appreciated.
To our shareholders, including existing and new shareholders who supported the
capital raise in February 2023, we appreciate your commitment in what has been
a challenging year for many exploration companies but a year of positive
change and opportunity for Artemis.
We look forward to building on shareholder value in the year ahead.
Guy Robertson
Chairman
29 September 2023
Operations report
Artemis Resources Limited ("Artemis" or the "Company") is pleased to outline
the progress the Company has made at its projects for the financial year ended
30 June 2023.
Artemis is a gold copper and lithium focused resource exploration company with
three major projects within the Pilbara region of Western Australia (Figure
1). The Paterson Central and the Greater Carlow projects are held 100% by the
Company while 49% interest is held over the Osborne Joint Venture (JV) with
GreenTech Minerals ("GreenTech") who hold 51%. In addition, the Company owns
100% of the strategically located Radio Hill processing plant (on care and
maintenance) and associated infrastructure, located approximately 35km south
of Karratha.
Figure 1: Artemis Resources Project Location Map
Greater Carlow Exploration Activities (Lithium)
During the June quarter the Company completed a review of the lithium
potential of its Greater Carlow project after neighbouring exploration
companies identified significant lithium pegmatite mineralisation within units
of the Andover Mafic Intrusive that also underly significant portions of
Artemis tenure.
A review of the Company's historic regional exploration soils database
indicated elevated lithium and lithium pathfinder elements within exploration
licences E47/1746 and E47/1797 (Figures 2 and 3).
Figure 2: Plot of levelled +95(th) percentile Lithium soils data with circled
anomalous trends
Figure 3: Plot of 95(th) Percentile Rubidium soils data with circled anomalous
trends
The data has defined seven distinct lithium cluster anomalies within E47/1797
and E47/1746 with elevated Lithium above the 95(th) percentile. Two of these
anomalies also correspond with two broad rubidium anomalies, and form part of
the initial reconnaissance programs in identifying potential lithium bearing
pegmatites.
First pass field reconnaissance exploration programmes have now commenced to
investigate the source of the lithium soil anomalies.
Osborne Joint Venture (Artemis 49%)
Exploration Activities (Lithium)
Two lithium bearing pegmatite trends have been identified within exploration
licence E47/3719 by JV partner GreenTech (Figure 4). The two trends consist of
a northern and southern trend, each of which has been interpreted as
traversing east-west.
The northern Kobe trend currently has approximately 1.4 km of strike within
the Osborne JV. Test work conducted by Curtin University by way of XRD
analysis on a sample from the first phase of the sampling program confirmed
that the lithium bearing mineral is spodumene. The yet unnamed southern trend
also had its lithium species classified as spodumene by XRD analysis at ALS
Metallurgy.
High tenor lithium assays received within the project area include:
· 3.6% Li(2)O from Sample 23CR038
· 2.3% Li(2)O from Sample 23CR039
· 1.8% Li(2)O from Sample 23GT11-041
· 1.7% Li(2)O from Sample 23GT11-042
· 1.58% Li(2)O from Sample 23GT11-039
Figure 4: Lithium rock sample assays and trend lines within Osborne JV
Tenement E47/3719
Further lithium exploration is planned on the Osborne JV tenement in the
forthcoming year with sampling and mapping aimed at identifying the full
extent of the mineralised pegmatite zones and the consistency of the lithium
mineralogy and grade. Preparations have commenced to enable a maiden drilling
program, subject to receiving all approvals.
Greater Carlow Project
Carlow Castle Mineral Resource Update (gold-copper-cobalt)
The Carlow Castle deposit is on granted exploration licence E47/1797 and is 35
km from Artemis resources 100% owned Radio Hill processing plant.
An updated, high-grade Inferred Mineral Resource estimate ("MRE") was released
by Artemis on 13 October 2022. The MRE, prepared in collaboration with
independent consultants Snowden Optiro was produced utilising new wireframes
and data produced by the 2022 drill program.
The new Inferred Mineral Resource was estimated to contain 704,000 oz Au Eq at
2.5 g/t Au Eq(1) from 8.74 Mt from a combined open pit and underground source.
The Mineral Resource for Carlow is presented in Tables 1 and 2 and Figures 5
and 6. All three deposits forming Carlow are open at depth, with Quod Est and
Crosscut open along strike (Figures 5 and 6).
Figure 5: Oblique view of the Carlow resource block model showing potential
continuations of known mineralisation.
Figure 6: Long Section (looking north) model showing key domains and potential
continuation of known mineralised zones.
Table 1: Carlow MRE by weathering state reported above a cut-off of 0.7 g/t
gold Eq within an optimised open pit shell and above 2 g/t gold Eq cut-off for
underground using MSO shapes. The entire resource is classified as an Inferred
Mineral Resource in accordance with the JORC Code, 2012. All tonnes are dry
metric tonnes. Figures may not compute due to rounding. Au: gold; Cu: copper;
Co: cobalt. MRE current as of 13 October 2022.
Domain Tonnes (Mt) Au Eq (g/t) Au (g/t) Cu (%) Co (%) Au (oz) Cu (t) Co (t)
Oxide 1.29 1.5 0.8 0.59 0.07 34,000 8,000 1,000
Transition 1.49 2.0 1.2 0.84 0.09 56,000 13,000 1,000
Fresh 5.96 2.8 1.5 0.73 0.10 285,000 44,000 6,000
Total 8.74 2.5 1.3 0.73 0.09 374,000 64,000 8,000
Table 2: Carlow MRE by mining method. The entire resource is classified as an
Inferred Mineral Resource in accordance with the JORC Code, 2012. All tonnes
are dry metric tonnes. Figures may not compute due to rounding. Au: gold; Cu:
copper; Co: cobalt. MRE current as of 13 October 2022.
Mining method Au Eq cut-off (g/t) Tonnes (Mt) Au Eq (g/t) Au (g/t) Cu (%) Co (%) Au (oz) Cu (t) Co (t)
Open pit 0.7 7.25 2.4 1.3 0.73 0.09 296,000 53,000 6,500
Under- 2.0 1.49 3.1 1.6 0.72 0.12 78,000 11,000 1,500
ground
Total - 8.74 2.5 1.3 0.73 0.09 374,000 64,000 8,000
Basis for metal equivalents:
1. Metallurgical factors
In 2019, ALS Metallurgy in Perth completed preliminary metallurgical testwork
on two 100 kg drill core composite samples. The metallurgical testwork
demonstrated a potential Carlow Castle ore flowsheet utilising gravity and
cyanide leach for gold, and flotation to produce copper and cobalt
concentrates. Details are:
· 48% of the gold in testwork on metallurgical samples was recovered
using gravity separation, and most of the balance of the non-gravity gold is
recoverable in sulphide concentrates as a by-product, using standard
flotation. The total recovery of gold achieved was 94.8%.
· Quick floating copper minerals produced a high-grade, premium copper
concentrate of approximately 30% copper.
· Deleterious elements, including arsenic, could be managed with a
light concentrate polishing using regrind or blend control. Recoveries
depended on mineralogy, with 77% to 85% copper recoveries achieved.
· Unrecovered copper minerals are non-floating silicates or secondary
oxide copper minerals.
· Cobalt recoveries ranged from 73% to79%. Saleable cobalt concentrate
grades ranging from 2.3% to 5.3% cobalt were produced. Cobaltite (CoAsS) is
the dominant cobalt bearing mineral, and is therefore intrinsically linked to
arsenic, affecting its sale price.
The metallurgical factors used for the Mineral Resource estimate are presented
in Table (#_bookmark2) 3.
Table 3. Metallurgical assumptions used.
Parameter Input Value
Gold Recovery Oxide: 96%
Transitional: 93.5%
Fresh:93%
Copper Recovery Oxide: 61%
Transitional: 56%
Fresh: 90.5%
Cobalt Recovery Oxide: 47%
Transitional: 43%
Fresh: 78%
NSRs (incl. payability, royalty and treatment and refining costs) Gold: 94%
Copper: 84%
Cobalt: 41%
Gold Price AU$2,600 / oz
Copper Price AU$12,699 / t
Cobalt Price AU$90,478 / t
Au Royalty (in dore) 2.5%
Au Royalty (in concentrate) 5%
Cu Royalty 5%
Co Royalty 5%
2. Gold Equivalent formula
The gold equivalent formula used in the calculation of an Au Eq. grade uses
the following parameters:
Oxide Au Eq. equation = Au (g/t) + Cu(%) x 0.86 + Co(%) x 2.31
Transitional Au Eq equation = Au (g/t) + Cu(%) x 0.81 + Co(%) x 2.17
Fresh Au Eq equation = Au (g/t) + Cu(%) x 1.31 + Co(%) x 3.96
Au: gold; Cu: copper; Co: cobalt.
It is the Competent Persons' view that all elements contributing to the gold
equivalent calculation have the potential to be extracted and sold.
Greater Carlow Exploration Activities (gold-copper-cobalt)
Most of the exploration activities conducted over the Greater Carlow project
focussed on target generation via the acquisition of geophysical and
geochemical data over exploration licence E47/1797 and E47/1746.
Commencing in July 2022, Atlas Geophysics collected 1,712 gravity stations on
a nominal 200 m by 200 m grid across the Greater Carlow project including a
small infill program (100 m by 100 m) over Carlow and a new gravity occurrence
now known as the Europa target. The data was processed by Sothern Geoscience
Consultants (SGS) who produced both 2D imagery and 3D inversion models.
The Europa Target is located approximately 1.7 km south-west along strike of
the of the Carlow deposit. It is situated within a structurally bound gravity
high on the southern side of the Regal Thrust within the prospective Roebourne
Complex (Figure 7). Its structural and gravity signature are of a similar
nature to Carlow deposit and has been identified by Artemis are requiring
additional exploration focus.
Figure 7: Image of gravity with magnetics in the background as light grey.
Note the location of the Europa gravity target which is coincident with a
structurally anomalous magnetic signature. The gravity at Europa reflects the
size and magnitude of that at the Carlow deposit.
During the December and March quarters a total of 432 Ultrafine Fraction (UFF)
soil samples were collected from three locations within the immediate vicinity
of the Carlow Castle MRE with a focus around structures and splays associated
with the Regal Thrust.
Finalised and interpreted results from the soils program defined a strong
coincident gold (Au) and arsenic (As) anomaly over an area of 750 m by 550 m
at a location named Titan. Titan is located 1.8 km north-west of Carlow
Castle, adjacent to a secondary splay thrust north of the Regal Thrust and is
associated with sheared, altered basalts, and banded cherts with ex-sulphide
voids.
Anomalous zones of copper in the order of 100 ppm were also identified by the
UFF soils program with a zone forming over the north-west margin of the Europa
target as well as a new zone immediately north of the Marillion
electromagnetic (EM) target, with a peak copper in soils value of 258 ppm.
This occurrence is situated near the tenement boundary and is likely
associated with gold-copper mineralisation identified by Novo Resources Corp.
at their Morto Largo Prospect.
A series of electrical surveys under the management of SGC also took place at
the greater Carlow project during the reporting period. These included Moving
Loop Electromagnetic (MLEM) surveys, Down Hole EM surveys and a Fixed Loop
Electromagnetic (FLEM) survey.
Two sets of MLEM surveys were completed during the financial year (Figure 8)
with one survey completed in July 2022 across an area between Chapman and the
eastern side of Carlow Castle, while the second survey completed in May and
June 2023 covered a series of prospects in the immediate vicinity of Carlow
Catle.
Figure 8: MLEM Survey Area and DHEM Drill Hole Location Map
The first survey identified a significant anomaly 450 m east of the Carlow
Keel with a conductance between 3000 to 5000S with dimensions of at least 400
m by 400 m at a depth starting from 300 m below surface.
The second MLEM surveys occurred over the Carlow Castle deposit and the
prospects Carlow North, Marillion North, Europa and Titan.
Four new EM conductor plates were identified from the survey being of low to
strong conductance as well as one historic VTEM conductor historically
referred to as Stoneham, north of the Europa gravity anomaly (Figure 9 and
Table 4). The conductors described are within highly resistive ground
conditions such that the EM anomalies should be considered prospective in
identifying sulphide mineralisation.
Figure 9: Modelled EM conductor Plates within Greater Carlow
Table 4 - MLEM Conductor details
Conductor Details Conductance (S)
CCN1 Immediately north of Carlow with an aerial size of approx. 800 m by 400 m. Dip Moderate ~ 1,500-2,000+
approx. 50 degrees to the SSW. Depth to top estimated at 50 m to 75 m.
CCN2 Immediately north Carlow Castle Quad Est mineralisation with an aerial size of Moderate to High ~3,000 - 4,000
approx. 300 m by 400 m. Dip approx. 70 degrees to SE. Depth to top of source
estimated at <50 m.
CCNE Located approx. 900 m north of the Marillion prospect with an aerial size of Moderate conductance ~700 - 900+
approx. 750 m by 500 m. Dip approx. 85 degrees south. Depth to top of source
estimated at 50 m to 75 m. Poorly constrained to steep topography.
EUR1 (Stoneham) Located north of Europa gravity anomaly with an aerial extent of 500 m by 500 Low conductance ~ 50 - 150
m. Dip approx. 45 degrees south. Depth to top at 50 m by 100 m.
TIT1 Located slightly south of the main Titan gold in soil anomaly with an aerial Low Conductance ~ 50 - 150
extent of 1,000 m by 1,000 m. Dip approx. 80 degrees north. Depth to top 75 m
to 125 m.
3D conductor plate models have been provided by SGC and they are currently
being assessed from a geological perspective and ranked for follow up
investigation. Of particular interest are conductors CCN1 and CCN2 which have
a moderate to high conductance. Both conductance plates are immediately north
of the Carlow Castle deposit and have not been previously drill tested.
Additionally, CCN1 is associated with a chargeability anomaly identified from
a dipole - dipole IP survey completed across Carlow Castle in 2021.
Four DHEM surveys were completed in August 2002 to assess the potential for
off hole conductors (Figure 8). The surveys occurred in drill holes ARC387
(Carlow Castle Cross Cut load), ARC407 (Marillion) ARC407 (Chapman) and
22CHRD001 (Chapman).
ARC387: DHEM identified a weak in hole/off hole anomalism at ~125 m to 145 m
down hole as multiple narrow sources. This corresponds well to the copper
mineralisation within the drill core. As well as this, an off-hole anomaly
with weak/moderate strength at ~115 m to 120 m down hole has been identified,
source is above and right of hole - N/NW of hole.
ARC406: DHEM identified a deep off hole conductor to the north confirming the
Marillion MLEM conductor. Modelling indicated a south dipping body of at least
400 m by 400 m aerial size 350m below surface with a conductance greater than
5,000S.
ARC407: DHEM identified weak broad off hole anomalism centred at ~60 m by 70 m
down hole. Source is above and left - south of hole.
22CHRD001 DHTEM identified weak off hole anomalism, approx. source appears
sub-parallel to hole geometry centred at ~55 m by 80 m down hole with a
localised source. Relatively weak/low conductance and limited areal size.
In October 2002 a FLTEM survey was complete over Marillion identifying a
significant >11,000S conductance with an area size of 500 m to 600 m in
strike and 250 m to 360 m down dip extent (Figures 10).
Figure 10: 3D oblique view of the Carlow resource and spatial location of the
Marillion 'plates'
Whilst >9,000s conductance is considered by the Artemis exploration team to
be of material interest and >10,0000 a strong candidate to be drilled,
11,000s of conductance is of regionally exceptional tenor. Depth to the top of
the anomaly is 350 m to 450 m and the anomaly dips at 40 to the
south-southwest.
Also of note is the potential relationship between the Marillion Target and
the eastern portion of the Carlow MRE and the Carlow Keel Zone. Spatially
there is approximately 450 m distance between the high-grade Carlow keel
drilling, which remains open in multiple directions and the Marillion Target
Greater Carlow Exploration - Gold
Lulu Creek lies 20 km to the west of Artemis's Carlow Castle deposit and forms
part of the prospective Greater Carlow area. It was previously known as
Patterson's Hut and Carlow West and was initially identified in 2018 via a
regional soils and rock chip program defining an area of interest over 4 km in
an east-northeast orientation. Subsequent mapping and rock chip sampling
identified gold associated with quartz veins and gossans, and in an
unclassified weathered unit with a light covering of transported sands and
gravels.
In 2020, Artemis completed 126 RC drill holes with an average hole depth of 20
m and a maximum hole depth of 50 m. The drill program was technically
successful identifying numerous low-grade zones of gold mineralisation
associated with disseminated sulphides and quartz veins within a 2 km
east-northeast trending quartz diorite intrusion (Figure 11).
Significant intercepts from the drill program included:
· 2 m @ 1.62 g/t gold from 34 m in CWRC006
· 1 m @ 4.89 g/t gold and 13.7 g/t silver from 24 m in CWRC011
· 1 m @ 1.15 g/t gold from 9 m in CWRC017
Figure 11: Lulu Creek Intrusion displaying 0.3 g/t gold metre gram contours.
At the time of the 2020 drill program, the significance of intrusion related
gold within the Pilbara was not fully appreciated with resources being
directed to more advanced projects within the company portfolio.
Following the conclusion of the 2022 drill season, a comprehensive exploration
focused strategic review was completed across Artemis tenure re-identifying
the potential of the Lulu Creek prospect. Drill chips from the 2020 RC program
were re-logged and assays re-processed to generate a new interpretation.
Coincidently, work completed by the GSWA identified the presence of
'Sanukitoid like' intrusive bodies around the Karratha (granitoid) Dome 2.5 km
north-west of the Lulu Creek intrusion, which indicates mantle fluid pathways
in the area.
Lulu Creek is also situated along the margin of the 90 km long Regal Thrust.
Splays and secondary structures associated with the thrust, host mineral
occurrences including the Carlow Castle deposit.
A 15-line dipole-dipole Induced Polarisation (IP) survey commenced at the end
of June 2023. This identified two chargeability anomalies within the Lulu
Creek intrusion, adjacent to a moderate-high resistive body interpreted as
representing significant alteration and veining (Figures 12 and 13). A third
IP Chargeability anomaly was identified just off the intrusion along the Regal
Thrust (Figure 12), which corresponds with outcropping gossanous BIF and
ultramafic rocks at surface.
Figure 12: IP chargeability plan view -75 m below surface against Lulu Creek
Intrusion outcrop outline in pink.
Figure 13: IP resistivity plan view -75 m below surface against Lulu Creek
Intrusion outcrop outline in pink.
Further modelling and interpretation of the IP chargeability and resistivity
bodies is required in the coming reporting period along with an additional
heritage survey across the prospect prior to any new targeted drilling.
Paterson Central Project
Exploration Activities (gold-copper)
A total of 5,135 m of diamond drilling was completed at the Apollo and Atlas
prospects during the reporting period from five completed drill holes (Table 4
and Figure 14) consisting of two holes at Atlas and three holes at Apollo. At
the Apollo prospect sulphide mineralisation associated with breccias was
identified peripheral to, and within a dolerite.
Table 4: Completed Drill Collar Details for Reporting Period
Hole ID Type Easting (MGA94) Northing (MGA94) RL (m) Dip Azi MGA EOH (m)
GDRCD006(1) DD 462,127 7,600,424 262 -65.6 80.4 1102.9
22PTMRD008 MD 464,560 7,600,420 262 -75.0 80.0 985.0
2PTMRD009 MD 464,560 7,600,420 262 -69.0 276.6 1054.9
22PTMRD010 MD 462,120 7,600,420 262 -75.0 92.9 1052.1
22PTMRD011 MD 462,360 7,600,420 262 -76.1 353.8 940.0
(1) Drill hole re-entry. Drilling Commenced from 648.80m
Figure 14: Interim Reporting Period Drill Hole locations with Havieron deposit
in the south of Image.
Drilling from GDRCD006 (extension), 22PTMRD0010 and 22PTMRD011 defined a
north-west trending splay fault intruded by a dolerite sill. Along with
reprocessed geophysics received in September 2022 (Figure 15), Artemis has
been able to determine that the Apollo target is one part of a ~1.5 km long
magnetic anomaly with a structural setting like the nearby Havieron deposit.
Figure 15: Reprocessed magnetics showing the ~1.5 km long Apollo structure
(highlighted in dashed line). Apollo location and anomaly size with respect to
Havieron resource footprint (black outline).
This is further supported by Artemis best intercept to date at the Paterson
project with drill hole 22PTMRD011 (Figure 16). intercepting mineralised
breccia, returning an intercept of:
· 2.42 m @ 0.85g/t gold and 2.86% copper from 752.58 m, including
0.87 m @ 0.36g/t gold and 4.99% copper from 752.58 m and 1 m @ 1.73g/t gold
and 2.58% copper from 754 m and 1 m @ 0.61g/t gold and 3.28% copper from
904 m.
Figure 16: Section 462,350mE looking east showing drill hole trace gold and
copper intersections on geology and magnetics highlighted in red dashed lines.
Au: gold; Cu: copper.
Assay results received to date show sporadic gold and copper occurs within a
suite of rocks that in places are like those described at the nearby Haveron
deposit(2). From examination of the exploration history at Havieron(2) it is
evident that the discovery of large intercepts of multi-sulphide endowed,
high-temperature crackle breccias and veining does not confirm the presence of
gold. Furthermore, the exploration history(2) at Havieron indicates that holes
with exceptionally large gram-metre intercepts (HAD005) can be as little as 50
m from holes that return no significant results (HAD006).
The intrusion event and timing of the quartz-carbonate breccia is still in
debate; however initial interpretations show:
· Mineralisation does not appear to be related to the dolerite;
however remobilisation of sulphides does occur along the sill margin.
· The mineralisation at Apollo is structurally controlled, i.e.
coincident with veining and later-stage brecciation.
· There are at least two phases of breccias, a hydrothermal
fluidised occurrence as noted near the contact of the dolerite and a tectonic
event, as indicated by the presence of quartz-carbonate matrix support
breccias, exhibiting angular clasts.
· The mineralisation noted in hole 22PTMRD010 occurs higher up and
not near the dolerite.
· The source of the mineralisation at Apollo appears to be deeper
to the NE and may be related to the magnetic flexure and the central
de-magnetised zone as shown in Figure 15.
An independent exploration review of the Central Paterson Project was
conducted in May and June 2023. The review was completed by Merlin Geophysics
whose principal was the Principal Geoscientist for Greatland Gold PLC from
2020 - 2021. The review focus was to assess the effectiveness of exploration
completed by Artemis since the grant of the tenure in 2020, as well as to
re-evaluate the prospectivity across the project.
The review was positive towards Artemis exploration to date in targeting for
Havieron style mineralisation with the Company being effective in:
· Acquisition of geophysical and geochemical surveys with
appropriate parameters and methodologies.
· Processing and interpretation of the datasets to a high standard.
· Targeting has considered elements of key criteria and has been
complete to a high standard.
· Drilling has effectively tested Apollo, Atlas, and Nimitz target
areas.
The review also identified the use of electrical geophysical methods to
improve targeting including IP/EM in areas with shallower cover and
Audiomagnetotellurics (AMT) and Magnetotellurics (MT) in areas with deeper
cover.
Merlin Geophysics also identified exploration potential in other
mineralisation models including orogenic and strata-bound copper-gold
mineralisation across the project but noted the difficulty in conducting
exploration given the depths of Permian cover over the basement.
Artemis will seek a partner to advance the project, which may include JV,
earn-in or outright sale.
(2) Ackerman, B., Finn, D., Baxter, C., Harris, A., Switzer, C., MacCoruodale,
F., Wilson, A., Lisowiec, N., William, S, J., 2021. Havieron Gold-Copper
Deposit: Next Generation of Undercover Discoveries. NewGen Gold Conference
Proceedings 2021, p.145 - 159
Competent Person's Statement
Exploration Results
The information in this report that relates to exploration results is based
on, and fairly represents information supporting documentation prepared by Mr
Luke Meter, a Competent Person who is a member of the Australasian Institute
of Geoscientists (AIG) and Australian Institute of Mining and Metallurgy
(AusIMM). Mr Meter is employed by Artemis Resources Limited as Exploration
Manager. Mr Meter has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Mr Meter Consents to the inclusion in
this report of the matters based on his information in the form and context in
which it appears.
Mineral Resource Reporting
The information in this report that relates to the Carlow Mineral Resource is
based on information compiled by Ms Janice Graham, MAusIMM MAIG, and Dr Simon
Dominy, FAusIMM (CPGeo) FAIG (RPGeo) FGS (CGeol). Ms Graham is a full-time
Principal Consultant of Snowden Optiro. Dr Dominy is a Technical Director of
Artemis Resources Limited. Ms Graham and Dr Dominy have sufficient experience
relevant to the styles of mineralisation and type of deposits under
consideration and to the activity being undertaken to individually qualify as
a Competent Person as defined in the 2012 Edition of the "Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ms
Graham and Dr Dominy consent to the inclusion in the report of the matters
based on this information in the form and context in which it appears.
Corporate
Board and management changes
Ms Vivienne Powe was appointed to the Board on 4 July 2022. Ms Powe is
currently Executive General Manager, Business Development with Lynas Rare
Earths Ltd (ASX:LYC) and was previously the Chief Executive Officer
Investments for Perenti Group (ASX: PRN). Ms Powe has served in senior
executive and leadership roles in private and listed organisations which have
included Global Advanced Metals and BHP as well as having worked at Iluka
Resources, Woodside Energy and Renison Goldfields Consolidated.
Vivienne holds a Bachelor of Engineering degree (Metallurgical Engineering,
with Distinction) from the Royal Melbourne Institute of Technology, a Graduate
Diploma in Applied Finance & Investment from FINSIA and a Master of
Business Administration (Technology Management) from Deakin University.
Mr Alastair Clayton and Mr Edward Mead resigned from the Board on 21 November
2022. Mr Mark Potter resigned from the Board on 31 March 2023.
Capital Raising
In February 2023 the Company raised $2.55 million, before costs, through the
issue of 170,000,000 new shares at $0.015 per share with one free attaching
option for every two new shares (85,000,000 options) exerciseable at $0.025
cents per share before 9 March 2026. The Company issued a further 17,000,000
options on the same terms to the broker to the raise.
Dr Simon Dominy
Executive Director
Schedule of tenements holdings (All tenements are in Western Australia)
Tenement Project Holder Holding Status Area (km(2))
E47/1797 Greater Carlow KML No 2 Pty Ltd 100% Live 28
E47/1746 Cherratta KML No 2 Pty Ltd 100% Live 117.6
E47/3719 Osborne KML No 2 Pty Ltd 49% Live 44.8
P47/1972 Cherratta KML No 2 Pty Ltd 100% Live 1.5
M47/337 Radio Hill Fox Radio Hill Pty Ltd 100% Live 1.8
M47/161 Radio Hill Fox Radio Hill Pty Ltd 100% Live 9.9
E47/3361 Radio Hill Elysian Resources Pty Ltd 100% Live 15.6
L47/93 Radio Hill Fox Radio Hill Pty Ltd 100% Live 0.07
E45/5276 Central Paterson Armada Mining Pty Ltd 100% Live 529.2
Consolidated Statement of Profit or Loss and other Comprehensive income for
the year ended 30 June 2023
Consolidated
30 June 2023 30 June 2022
Notes $ $
Revenue 3 80,169 33,389
Fair value loss on financial assets 8 (337,666) (165,883)
Gain on disposal of exploration projects 12 - 1,734,962
Personnel costs - (313,386)
Occupancy costs (49,504) (94,142)
Legal fees (31,542) (31,638)
Consultancy costs (951,660) (626,247)
Compliance and regulatory expenses 4 (282,204) (1,482,494)
Directors' fees (587,038) (616,804)
Travel costs (52,996) (53,842)
Marketing expenses (69,106) (103,295)
Borrowing costs (13,544) -
Other expenses (427,202) (461,931)
Project and exploration expenditure write off 12 (735,768) (4,696,301)
Impairment expense 13 (12,969,852) -
Share-based payments 24 (475,300) (112,200)
Foreign exchange loss (20,330) (539,533)
LOSS BEFORE INCOME TAX (16,923,543) (7,529,345)
Income tax expense/benefit 5 - -
LOSS FOR THE YEAR (16,923,543) (7,529,345)
Other comprehensive income, net of tax - -
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (16,923,543) (7,529,345)
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent entity (16,923,543) (7,529,345)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent entity (16,923,543) (7,529,345)
Basic loss per share - cents 22 (1.17) (0.58)
Diluted loss per share - cents 22 (1.17) (0.58)
The consolidated statement of profit or loss and other comprehensive income is
to be read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Consolidated
30 June 2023 30 June 2022
Notes $ $
CURRENT ASSETS
Cash and cash equivalents 6 1,703,016 6,106,222
Other receivables 7 123,104 282,701
Other financial assets 8 3,746,250 6,283,560
TOTAL CURRENT ASSETS 5,572,370 12,672,483
NON-CURRENT ASSETS
Plant and equipment 9 57,266 95,741
Intangible assets 10 - 3,523
Right-of-use assets 11 150,781 153,980
Exploration and evaluation expenditure 12 32,054,704 27,323,626
Development expenditure 13 14,950,070 27,420,924
TOTAL NON-CURRENT ASSETS 47,212,821 54,997,794
TOTAL ASSETS 52,785,191 67,670,277
CURRENT LIABILITIES
Trade and other payables 14 1,529,181 2,931,542
Current lease liabilities 11 103,382 44,140
Employee benefits obligation 15 14,734 39,473
TOTAL CURRENT LIABILITIES 1,647,297 3,015,155
NON-CURRENT LIABILITIES
Lease liabilities 11 49,577 109,311
Provisions 16 5,723,259 5,223,259
TOTAL NON-CURRENT LIABILITIES 5,772,836 5,332,570
TOTAL LIABILITIES 7,420,133 8,347,725
NET ASSETS 45,365,058 59,322,552
EQUITY
Share capital 17 117,396,554 114,927,239
Reserves 18 389,358 2,725,913
Accumulated losses (72,420,854) (58,330,600)
TOTAL EQUITY 45,365,058 59,322,552
The consolidated statement of financial position should be read in conjunction
with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Consolidated Issued Accumulated Losses Total
Capital Reserves Equity
$ $ $ $
Balance at 1 July 2022 114,927,239 2,725,913 (58,330,600) 59,322,552
Loss for the year - - (16,923,543) (16,923,543)
Total comprehensive loss for the year - - (16,923,543) (16,923,543)
Issue of shares 2,631,485 - - 2,631,485
Cost of share issue (140,736) - - (140,736)
Lapse of options - (2,833,289) 2,833,289 -
Share-based payments cost of share issue
(123,434) 123,434 - -
Share-based payments 102,000 373,300 - 475,300
Balance at 30 June 2023 117,396,554 389,358 (72,420,854) 45,365,058
Consolidated Issued Accumulated Losses Total
Capital Reserves Equity
$ $ $ $
Balance at 1 July 2021 105,855,802 3,376,640 (51,564,182) 57,668,260
Loss for the year - - (7,529,345) (7,529,345)
Total comprehensive loss for the year - - (7,529,345) (7,529,345)
Issue of shares 9,508,026 - - 9,508,026
Cost of share issue (436,589) - - (436,589)
Lapse of options - (762,927) 762,927 -
Share-based payments - 112,200 - 112,200
Balance at 30 June 2022 114,927,239 2,725,913 (58,330,600) 59,322,552
The consolidated statement of changes in equity should be read in conjunction
with the accompanying notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
Consolidated
30 June 30 June
2023 2022
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers - 19,989
Payments to suppliers and employees (2,861,804) (3,893,173)
Interest received 107 1,216
Finance costs paid (10,292) -
Receipts from government assistance - 7,146
NET CASH USED IN OPERATING ACTIVITIES 25 (2,871,989) (3,864,822)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments 2,209,711 308,598
Payments for purchase of plant and equipment (11,128) (62,021)
Payments for exploration and evaluation (5,997,831) (7,950,756)
Payment for development expenditure (6,088) (136,869)
Payments for purchase of investments - (224,499)
Proceeds on sale of project - 500,000
Proceeds on sale of plant and equipment 1,497 -
NET CASH USED IN INVESTING ACTIVITIES (3,803,839) (7,565,547)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares 2,548,102 9,443,279
Cost of share issue (166,986) (436,589)
Repayment of lease liabilities 11 (98,542) (13,120)
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,282,574 8,993,570
Net decrease in cash held (4,393,254) (2,436,799)
Cash at the beginning of the period 6,106,222 9,082,554
Effects of exchange rate changes on the balance of cash held in foreign (9,952) (539,533)
currencies
CASH AT THE END OF THE YEAR 6 1,703,016 6,106,222
FOR THE YEAR ENDED 30 JUNE 2023
The consolidated statement of cash flows is to be read in conjunction with the
accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS
1. Statement of significant accounting policies
Basis of Preparation
The financial statements are general purpose financial statements prepared in
accordance with Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements of the Australian
Standards Board, International Financial Reporting Standards as issued by the
International Accounting Standards Board and the requirements of the
Corporations Act 2001. The Group is a for profit entity for financial
reporting purposes under Australian Accounting Standards.
Australian Accounting Standards set out accounting policies that the AASB has
concluded would result in a financial report containing relevant and reliable
information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and
notes also comply with International Financial Reporting Standards. Material
accounting policies adopted in the preparation of this financial report are
presented below and have been consistently applied unless otherwise stated.
The consolidated financial statements have been prepared on the basis of
historical costs, except for the revaluation of certain non-current assets and
financial instruments. Cost is based on the fair value of the consideration
given in exchange for assets. All amounts are presented in Australian dollars,
unless otherwise stated.
The financial statements are presented in Australian dollars which is Artemis
Resources Limited's functional and presentation currency.
These financial statements were authorised for issue on 29 September 2023.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of
the Company and entities controlled by the Company and its subsidiaries.
Control is achieved when the Company:
· has power over the investee;
· is exposed, or has rights, to variable returns from its
involvement in with the investee; and
· has the ability to its power to affect its returns.
The Company reassess whether or not it controls an investee if facts and
circumstances indicate that there are changes to one or more of the three
elements listed above.
When the Company has less than a majority of the voting rights if an investee,
it has the power over the investee when the voting rights are sufficient to
give it the practical ability to direct the relevant activities of the
investee unilaterally. The Company considers all relevant facts and
circumstances in assessing whether or not the Company's voting rights are
sufficient to give it power, including:
· the size of the Company's holding of voting rights relative to
the size and dispersion of holdings of the other vote holders;
1. Statement of significant accounting policies (CONTINUED)
· potential voting rights held by the Company, other vote holders
or other parties; rights arising from other contractual arrangements; and
· any additional facts and circumstances that indicate that the
Company has, or does not have, the current ability to direct the relevant
activities at the time that decisions need to be made, including voting
patterns at previous shareholder meetings.
Consolidation of a subsidiary begins when the Company obtains control over the
subsidiary and ceases when the Company loses control of the subsidiary.
Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss
and comprehensive income from the date the Company gains control until the
date when the Company ceases to control the subsidiary.
Changes in the Group's ownership interest in subsidiaries that do not result
in the Group losing control over the subsidiaries are accounted for as equity
transactions. The carrying amounts of the Group's interests and the
non-controlling interests are adjusted to reflect the changes in their
relative interests in subsidiaries. Any difference between the amount paid by
which the non-controlling interests are adjusted, and the fair value of the
consideration paid or received is recognised directly in equity and attributed
to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in
profit or loss and is calculated as the difference between:
· The aggregate of the fair value of the consideration received and
the fair value of any retained interest; and
· The previous carrying amount of the assets (including goodwill),
and liabilities of the subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to
that subsidiary are accounted for as if the Group had directly disposed of the
related assets or liabilities of the subsidiary (i.e. reclassified to profit
or loss or transferred to another category of equity as specified/permitted by
the applicable AASBs). The fair value of any investment retained in the former
subsidiary at the date when control is lost is regarded as the fair value on
initial recognition for subsequent accounting under AASB 9, when applicable,
the cost on initial recognition of an investment in an associate or a joint
venture.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more
businesses.
A business combination is accounted for by applying the acquisition method,
unless it is a combination involving entities or businesses under common
control. The business combination will be accounted for from the date that
control is attained, whereby the fair value of the identifiable assets
acquired, and liabilities (including contingent liabilities) assumed is
recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any
asset or liability resulting from a contingent consideration arrangement is
also included. Subsequent to initial recognition, contingent consideration
classified as equity is not remeasured and its subsequent settlement is
accounted for within equity.
1. Statement of significant accounting policies (CONTINUED)
Contingent consideration classified as an asset or liability is remeasured
each reporting period to fair value, recognising any change to fair value in
profit or loss, unless the change in value can be identified as existing at
acquisition date.
All transaction costs incurred in relation to the business combination are
expensed to the consolidated statement of comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a
gain from a bargain purchase.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease
(i.e., the date the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised,
initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Unless the Group is
reasonably certain to obtain ownership of the leased asset at the end of the
lease term, the recognised right-of-use assets are depreciated on a
straight-line basis over the shorter of its estimated useful life and the
lease term. Right-of-use assets are subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities
measured at the present value of lease payments to be made over the lease
term. The lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be paid under residual
value guarantees. The lease payments also include the exercise price of a
purchase option reasonably certain to be exercised by the Group and payments
of penalties for terminating a lease, if the lease term reflects the Group
exercising the option to terminate. The variable lease payments that do not
depend on an index or a rate are recognised as expense in the period on which
the event or condition that triggers the payment occurs. In calculating the
present value of lease payments, the Group uses the incremental borrowing rate
at the lease commencement date if the interest rate implicit in the lease is
not readily determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in the assessment to
purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term
leases of machinery and equipment (i.e., those leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition exemption
to leases of office equipment that are considered of low value (i.e., below
$5,000). Lease payments on short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis over the lease term.
1. Statement of significant accounting policies (CONTINUED)
Adoption of New a Revised Accounting Standards or Interpretations
In the year ended 30 June 2023, the Directors have reviewed all of the new and
revised Standards and Interpretations issued by the AASB that are relevant to
the Company and effective for the current reporting period. As a result of
this review, the Directors have determined that there is no material impact of
the new and revised Standards and Interpretations on the Group and therefore,
no material change is necessary to Group accounting policies.
Any new, revised or amending Accounting Standards or Interpretations that are
yet to be mandatory have not been early adopted.
The Directors have also reviewed all the new and revised Standards and
Interpretations in issue not yet adopted for the year ended 30 June 2023. As
a result of this review the Directors have determined that there is no
material impact of the Standards and Interpretations in issue not yet adopted
by the Company.
Going Concern
For the year ended 30 June 2023, the Group recorded a loss of $16,923,543
(2022: Loss of $7,529,345) and had net cash outflows from operating activities
of $2,871,989 (2022: $3,864,822) and has a net working capital surplus of
$3,925,073 as at 30 June 2023 (2022: $9,657,328).
The Directors believe that it is reasonably foreseeable that the Company and
Group will continue as a going concern and that it is appropriate to adopt the
going concern basis in the preparation of the financial report after
consideration of the following factors:
· The Group has cash at bank of $1,703,016 and net assets of
$45,365,058 as at 30 June 2023;
· The Group has approximately $3.75 million in liquid investments.
· The Company has raised approximately $2.5 million, before costs,
in new capital during the year and Directors are of the view that should the
Company require additional capital it has the ability to raise further capital
to enable the Group to meet scheduled exploration expenditure requirements and
future plans on the development assets;
· The ability of the Group to scale back certain parts of their
activities that are non-essential so as to conserve cash; and
· The Group retains the ability, if required, to wholly or in part
dispose of interests in mineral exploration and development assets, and liquid
investments.
However, should the Company be unable to raise capital in a sufficiently
timely basis and/or reduce expenditure to the extent required there may exist
a material uncertainty which may cast significant doubt as to whether the
Company and Group will continue as a going concern and therefore whether they
will realise their assets and extinguish their liabilities in the normal
course of business and at the amounts stated in the financial report.
1. Statement of significant accounting policies (CONTINUED)
Income taxes
The income tax expense (benefit) for the year comprises current income tax
expense (income) and deferred tax expense (income). Current income tax
expense charged to the statement of profit or loss and other comprehensive
income is the tax payable on taxable income calculated using applicable income
tax rates enacted, or substantially enacted, as at reporting date. Current
tax liabilities (assets) are therefore measured at the amounts expected to be
paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and
deferred tax liability balances during the year as well unused tax losses.
Current and deferred income tax expense (income) is charged or credited
directly to equity instead of the profit or loss when the tax relates to items
that are credited or charged directly to equity. Deferred tax assets and
liabilities are ascertained based on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the
financial statements. Deferred tax assets also result where amounts have
been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or
liability, excluding a business combination, where there is no effect on
accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are
expected to apply to the period when the asset is realised or the liability is
settled, based on tax rates enacted or substantively enacted at reporting
date. Their measurement also reflects the manner in which management expects
to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses
are recognised only to the extent that it is probable that future taxable
profit will be available against which the benefits of the deferred tax asset
can be utilised. Where temporary differences exist in relation to
investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the
reversal of the temporary difference can be controlled and it is not probable
that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable
right of set-off exists and it is intended that net settlement or simultaneous
realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable
right of set-off exists, the deferred tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the same taxable
entity or different taxable entities where it is intended that net settlement
or simultaneous realisation and settlement of the respective asset and
liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
1. Statement of significant accounting policies (CONTINUED)
Exploration and evaluation costs
Exploration and evaluation expenditures in relation to each separate area of
interest are recognised as an exploration and evaluation asset in the year in
which they are incurred where the following conditions are satisfied:
· the rights to tenure of the area of interest are current; and
· at least one of the following conditions is also met:
Ø the exploration and evaluation expenditures are expected to be recouped
through successful development and exploitation of the area of interest, or
alternatively, by its sale; or
Ø exploration and evaluation activities in the area of interest have not at
the balance date reached a stage which permits a reasonable assessment of the
existence or otherwise of economically recoverable reserves, and active and
significant operations in, or in relation to, the area of interest are
continuing.
Exploration and evaluation assets are initially measured at cost and include
acquisition of rights to explore, studies, exploratory drilling, trenching and
sampling and associated activities and an allocation of depreciation and
amortised of assets used in exploration and evaluation activities. General and
administrative costs are only included in the measurement of exploration and
evaluation costs where they are related directly to operational activities in
a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and
circumstances suggest that the carrying amount of an exploration and
evaluation asset may exceed its recoverable amount. The recoverable amount of
the exploration and evaluation asset (for the cash generating unit(s) to which
it has been allocated being no larger than the relevant area of interest) is
estimated to determine the extent of the impairment loss (if any). Where an
impairment loss subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognised for the
asset in previous years.
Where a decision has been made to proceed with development in respect of a
particular area of interest, the relevant exploration and evaluation asset is
tested for impairment and the balance is then reclassified to development.
In determining the costs of site restoration, there is uncertainty regarding
the nature and extent of the restoration due to community expectations and
future legislation. Accordingly, the costs have been determined on the basis
that the restoration will be completed within one year of abandoning the site.
1. Statement of significant accounting policies (CONTINUED)
Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the Group
becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash
flows from the financial asset expire, or when the financial asset and
substantially all the risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged,
cancelled or expires.
Classification and subsequent measurement
All financial assets are initially measured at fair value adjusted for
transaction costs (where applicable). For the purpose of subsequent
measurement, all the financial assets, are classified as amortised cost.
All income and expenses relating to financial assets that are recognised in
profit or loss are presented within finance costs, finance income or other
financial items, except for impairment of other receivables which is presented
within other expenses.
(i) Financial assets at fair value through profit or loss
Financial assets designated at fair value through profit or loss ('FVTPL') are
carried at fair value and any subsequent gains or losses are recognised in the
Statement of Profit or Loss and Other Comprehensive Income.
(ii) Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the
following conditions (and are not designated as FVTPL):
• they are held within a business model whose objective is to hold
the financial assets to collect its contractual cash flows
• the contractual terms of the financial assets give rise to cash
flows that are solely payments of principal and interest on the principal
amount outstanding.
After initial recognition, these are measured at amortised cost using the
effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The
Group's cash and cash equivalents, and most other receivables fall into this
category of financial instruments.
Other receivables
The Group makes use of a simplified approach in accounting for other
receivables as well as contract assets and records the loss allowance as
lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point
during the life of the financial instrument. In calculating, the Group uses
its historical experience, external indicators and forward-looking information
to calculate the expected credit losses using a provision matrix.
The Group assess impairment of other receivables on a collective basis as they
possess shared credit risk characteristics they have been grouped based on the
days past due.
1. Statement of significant accounting policies (CONTINUED)
Classification and measurement of financial liabilities
The Group's financial liabilities include borrowings, trade and other payables
and derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where
applicable, adjusted for transaction costs unless the Group designated a
financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the
effective interest method except for derivatives and financial liabilities
designated at FVTPL, which are carried subsequently at fair value with gains
or losses recognised in profit or loss (other than derivative financial
instruments that are designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument's
fair value that are reported in profit or loss are included within finance
costs or finance income.
Plant and equipment
Each class of plant and equipment is carried at cost or fair value as
indicated less, where applicable, any accumulated depreciation and impairment
losses. Plant and equipment are measured on the cost basis.
Subsequent costs are included in the asset's carrying amount or recognised as
a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the company and the
cost of the item can be measured reliably. All other repairs and maintenance
are charged to the income statement during the financial period in which they
are incurred.
Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no
further future economic benefits are expected from its use or disposal. Any
gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the
asset) is included in profit or loss in the year the asset is derecognised.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful
life of the assets as follows:
Plant and Equipment - ranging from 2 to 20 years
The assets' residual values, useful lives and amortisation methods are
reviewed, and adjusted if appropriate, at each financial year end.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each
balance date, with recoverable amount being estimated when events or changes
in circumstances indicate that the carrying value may be impaired.
1. Statement of significant accounting policies (CONTINUED)
The recoverable amount of plant and equipment is the higher of fair value less
costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows,
recoverable amount is determined for the cash-generating unit to which the
asset belongs, unless the asset's value in use can be estimated to approximate
fair value.
An impairment exists when the carrying value of an asset or cash-generating
unit exceeds its estimated recoverable amount. The asset or cash-generating
unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of
profit or loss and other comprehensive income in the cost of sales line item.
Intangible assets
Intangible assets acquired separately are recorded at cost less accumulated
amortisation and impairment. Amortisation is charged on a straight-line basis
over their estimated useful lives. The estimated useful life and amortisation
method is reviewed at the end of each annual reporting period, with any
changes in these accounting estimates being accounted for on a prospective
basis.
Impairment of intangible assets other than goodwill
The Group assesses at each balance date whether there is an indication that an
asset may be impaired. If any such indication exists, or when annual
impairment testing for an asset is required, the Group makes an estimate of
the asset's recoverable amount. An asset's recoverable amount is the higher of
its fair value less costs to sell and its value in use and is determined for
an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets and the
asset's value in use cannot be estimated to be close to its fair value. In
such cases the asset is tested for impairment as part of the cash-generating
unit to which it belongs. When the carrying amount of an asset or
cash-generating unit exceeds its recoverable amount, the asset or
cash-generating unit is considered impaired and is written down to its
recoverable amount.
Development expenditure
Development expenditures represent the accumulation of all exploration,
evaluation and other expenditure incurred in respect of areas of interest in
which mining is in the process of commencing. When further development
expenditure is incurred after the commencement of production, such expenditure
is carried forward as part of the mine property only when substantial future
economic benefits are thereby established, otherwise such expenditure is
classified as part of the cost of production.
1. Statement of significant accounting policies (CONTINUED)
Restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a
present obligation as a result of development activities undertaken, it is
probable that an outflow of economic benefits will be required to settle the
obligation, and the amount of the provision can be measured reliably. The
estimated future obligations include the costs of abandoning sites, removing
facilities and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present
value of the expenditure required to settle the restoration obligation at the
balance date. Future restoration costs are reviewed annually and any changes
in the estimate are reflected in the present value of the restoration
provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is
capitalised into the cost of the related asset and amortised on the same basis
as the related asset, unless the present obligation arises from the production
of inventory in the period, in which case the amount is included in the cost
of production for the period. Changes in the estimate of the provision for
restoration and rehabilitation are treated in the same manner, except that the
unwinding of the effect of discounting on the provision is recognised as a
finance cost rather than being capitalised into the cost of the related asset.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with
banks, other short-term highly liquid investments with original maturities of
3 months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the consolidated statement of
financial position.
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent
liabilities for goods and services provided to the Group prior to the end of
the financial year that are unpaid and arise when the Group becomes obliged to
make future payments in respect of the purchase of these goods and services.
Trade and other payables are presented as current liabilities unless payment
is not due within 12 months.
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual
leave, long service leave and sick leave expected to be settled within 12
months of the balance date are recognised in other payables in respect of
employees' services up to the balance date. They are measured at the amounts
expected to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and are
measured at the rates paid or payable.
1. Statement of significant accounting policies (CONTINUED)
Liabilities accruing to employees in respect of wages and salaries, annual
leave, long service leave, and sick leave not expected to be settled within 12
months of the balance date are recognised in non-current other payables in
respect of employees' services up to the balance date. They are measured as
the present value of the estimated future outflows to be made by the Group.
Provisions
Provisions are recognised when the Group has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are not recognised for future operating losses.
Provisions are measured at the present value or management's best estimate of
the expenditure required to settle the present obligation at the end of the
reporting period. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the risks
specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as an interest expense.
Revenue recognition
Interest revenue is recognised using the effective interest method. It
includes the amortisation of any discount or premium.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are
incurred except borrowing costs that are directly attributable to the
acquisition, construction or production of an asset that necessarily takes a
substantial period to get ready for its intended use or sale. In this case
the borrowing costs are capitalised as part of the cost of such a qualifying
asset.
The amount of borrowing costs relating to funds borrowed generally and used
for the acquisition of qualifying assets has been determined by applying a
capitalisation rate to the expenditures on those assets. The capitalisation
rate comprises the weighted average of borrowing costs incurred during the
period.
Equity settled compensation
Share-based payments to employees are measured at the fair value of the
instruments issued and amortised over the vesting periods. Share-based
payments to non-employees are measured at the fair value of goods or services
received or the fair value of the equity instruments issued, if it is
determined the fair value of the goods or services cannot be reliably measured
and are recorded at the date the goods or services are received. The
corresponding amount is recorded to the option reserve. The fair value of
options is determined using the Black-Scholes pricing model. The number of
shares and options expected to vest is reviewed and adjusted at the end of
each reporting period such that the amount recognised for services received as
consideration for the equity instruments granted is based on the number of
equity instruments that eventually vest.
1. Statement of significant accounting policies (CONTINUED)
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except
where the amount of GST incurred is not recoverable from the Australian Tax
Office. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and
payables in the consolidated statement of financial position are shown
inclusive of GST. Cash flows are presented in the consolidated statement of
cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
Parent entity disclosures
The financial information for the parent entity, Artemis Resources Limited,
has been prepared on the same basis as the consolidated financial statements.
Assets and Liabilities Held for Sale
Non-current assets (or disposal groups) are classified as held for sale if
their carrying amount will be recovered principally through a sale transaction
rather than through continuing use. This condition is regarded as met only
when the asset (or disposal group) is available for immediate sale in its
present condition subject only to terms that are usual and customary for sales
for such asset (or disposal groups) and the sale is highly probable.
Management must be committed to the sale, which should be expected to qualify
for recognition as a complete sale within one year from the date of
classification.
When the Group is committed to a sale plan involving loss of control of a
subsidiary, all of the assets and liabilities of that subsidiary are
classified as held for sale when the criteria described above are met,
regardless of whether the Group will retain a non-controlling interest in it
former subsidiary, after the sale.
Leases
The group's leasing activities and how these are accounted for:
The group leases various offices with varying lengths from 1 to 3 years, some
with extension options.
Contracts may contain both lease and non-lease components. The Group allocates
the consideration in the contract to the lease and non-lease components based
on their relative stand-alone prices. Lease terms are negotiated on an
individual basis and contain a wide range of different terms and conditions.
The lease agreements do not impose any covenants other than the security
interests in the leased assets. Leased assets may not be used as security for
borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at
the date at which the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of fixed
payments, less any lease incentives receivable.
1. Statement of significant accounting policies (CONTINUED)
Leases (continued)
Lease payments to be made under reasonably certain extension options are also
included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which is generally the case
for leases in the Group, the lessee's incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to borrow the
funds necessary to obtain an asset of similar value to the right-of-use asset
in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
· where possible, uses recent third-party financing received by the
individual lessee as a starting point, adjusted to reflect changes in
financing conditions since third party financing was received;
· uses a build-up approach that starts with a risk-free interest rate
adjusted for credit risk for leases held by the Group; which does not have
recent third-party financing; and
· makes adjustments specific to the lease, e.g. term, country,
currency and security.
The Group is exposed to potential future increases in variable lease payments
based on an index or rate, which are not included in the lease liability until
they take effect. When adjustments to lease payments based on an index or rate
take effect, the lease liability is reassessed and adjusted against the
right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance
cost is charged to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability
for each period.
Right-of-use assets are measured at cost comprising the following:
· the amount of the initial measurement of lease liability;
· any lease payments made at or before the commencement date less any
lease incentives received;
· any initial direct costs; and
· restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's
useful life and the lease term on a straight-line basis. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset's useful life.
Payments associated with short-term leases are recognised on a straight-line
basis as an expense in profit or loss (unless capitalised as a component of
Plant Construction in Progress). Short-term leases are leases with a lease
term of 12 months or less.
Use of estimates and judgements
The preparation of financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income
and expenses.
1. Statement of significant accounting policies (CONTINUED)
Use of estimates and judgements (continued)
Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in
any future periods affected.
Exploration and evaluation, and development expenditure carried forward
The Group capitalises expenditure relating to exploration and evaluation, and
development, where it is considered likely to be recoverable or where the
activities have not reached a stage which permits a reasonable assessment of
the existence of reserves. While there are certain areas of interest from
which no reserves have been determined, the Directors are of the continued
belief that such expenditure should not be written off since feasibility
studies in such areas have not yet concluded.
The recoverability of the carrying amount of mine development expenditure
carried forward has been reviewed by the Directors. In conducting the
review, the recoverable amount has been assessed by reference to the higher of
"fair value less costs of disposal" and "value in use". In determining value
in use, future cash flows are based on:
• Estimates of ore reserves and mineral resources for which there is a
high degree of confidence of economic extraction;
• Estimated production and sales levels;
• Estimate future commodity prices;
• Future costs of production;
• Future capital expenditure; and/or
• Future exchange rates.
Variations to expected future cash flows, and timing thereof, could result in
significant changes to the impairment test results, which in turn could impact
future financial results.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by
reference to the fair value of the equity instruments at the date at which
they are granted. The fair value is determined by an external valuer using a
Black-Scholes model, using the assumptions detailed in Note 24.
Fair value of financial instruments
Management uses valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with how
market participants would price the instrument.
Provision for restoration and rehabilitation
The provision for restoration and rehabilitation has been estimated based on
quotes provided by third parties. The provision represents the best estimate
of the present value of the expenditure required to settle the restoration
obligation at the reporting date.
2. SEGMENT INFORMATION
AASB 8 Operating Segments requires operating segments to be identified on the
basis of internal reports about components of the Group that are regularly
reviewed by the Chief Operating Decision Maker in order to allocate resources
to the segment and to assess its performance.
The Group's operating segments have been determined with reference to the
monthly management accounts used by the Chief Operating Decision Maker to make
decisions regarding the Group's operations and allocation of working capital.
Due to the size and nature of the Group, the Board as a whole has been
determined as the Chief Operating Decision Maker.
a. Description of segments
The Board has determined that the Group has two reportable segments, being
mineral exploration activities and development expenditure. The Board monitors
the Group based on actual versus budgeted expenditure incurred by area of
interest.
The internal reporting framework is the most relevant to assist the Board with
making decisions regard the Group and its ongoing exploration activities.
2. SEGMENT INFORMATION (Continued)
b. Segment information provided to the Board:
Exploration Activities Development Activities Unallocated Total
West Pilbara East Pilbara Other Projects Radio Hill Corporate
$ $ $ $ $ $
30 June 2023
Segment revenue - - - - 80,169 80,169
Fair value loss on financial assets (337,666) (337,666)
- - - -
Segment expenses - - - - (2,960,426) (2,960,426)
Impairment - - - (12,969,852) - (12,969,852)
Project and exploration expenditure write off - (735,768)
(36,954) - (698,814) -
Reportable segment loss (36,954) - (698,814) (12,969,852) (3,217,923) (16,923,543)
Reportable segment assets 22,739,991 7,933,069 1,381,644 14,950,070 5,780,417 52,785,191
Reportable segment liabilities - - - 5,723,259 1,696,874 7,420,133
Additions to non-current assets 2,375,082 3,017,119 74,645 500,000 223,995 6,190,841
30 June 2022
Segment revenue - - - - 33,389 33,389
Fair value loss on financial assets - - - - (165,883) (165,883)
Segment expenses - - - - (2,700,550) (2,700,550)
Project and exploration expenditure write off - (4,696,301)
(4,696,301) - - -
Reportable segment loss (4,696,301) - - - (2,833,044) (7,529,345)
Reportable segment assets 20,328,519 4,915,951 2,079,156 27,420,924 12,925,727 67,670,277
Reportable segment liabilities - - - 5,223,259 3,124,466 8,347,725
Additions to non-current assets 5,285,613 2,248,774 1,046,962 3,947,005 215,988 12,744,342
3. REVENUE
Consolidated
30 June 2023 30 June 2022
$ $
Other revenue
Other sundry income 80,062 32,173
Interest received 107 1,216
80,169 33,389
4. COMPLIANCE AND REGULATORY EXPENSES
Consolidated
30 June 2023 30 June 2022
$ $
AIM listing expenses¹ - 1,239,575
Other regulatory costs 282,204 242,919
282,204 1,482,494
¹The Company dual listed on the London AIM exchange on 7 February 2022.
5. income taxes
(a) Income tax expense
Consolidated
30 June 2023 30 June 2022
$ $
Current tax - -
Deferred tax - -
Income tax expense - -
(b) Income tax recognised in the statement of profit or loss and other
comprehensive income
Consolidated
30 June 2023 30 June 2022
$ $
Loss before tax (16,923,543) (7,529,345)
Tax at 30% (2021: 30%) (5,077,063) (2,258,804)
Tax effect of non-deductible expenses 243,890 83,425
Exploration expenditure and impairment 4,090,370 1,408,891
Timing differences not brought to account 742,803 766,488
Income tax expense - -
Income Taxes (continued)
(c) Deferred tax balances
Consolidated
30 June 2023 30 June 2022
$ $
Deferred tax assets comprise:
Tax losses carried forward 10,363,482 15,886,778
Employee benefits obligation 4,420 11,842
Provisions 1,716,977 1,566,977
12,084,879 17,465,597
Deferred tax liabilities comprise:
Capitalised exploration costs 9,616,411 8,197,088
9,616,411 8,197,088
Net deferred tax asset unrecognised 2,468,468 9,268,509
(d) Analysis of deferred tax assets
Potential deferred tax assets attributable to tax losses and exploration
expenditure carried forward have not been brought to account at 30 June 2023
because the directors do not believe it is appropriate to regard realisation
of the deferred tax assets as probable at this point in time. These benefits
will only be obtained if:
· the Group derives future assessable income of a nature and of an
amount sufficient to enable the benefit from the deductions for the loss and
exploration expenditure to be realised;
· the Group continues to comply with conditions for deductibility
imposed by law; and
· no changes in tax legislation adversely affect the company in
realising the benefit from the deductions for the loss and exploration
expenditure.
The applicable tax rate is the national tax rate in Australia for companies,
which is 30% at the reporting date.
6. cash and cash equivalents
Cash and cash equivalents consist of cash on hand and account balances with
banks and investments in money market instruments, net of outstanding bank
overdrafts. Cash and cash equivalents included in the consolidated statement
of cash flows comprise the following amounts:
Consolidated
30 June 2023 30 June 2022
$ $
Cash and cash equivalents 1,703,016 6,106,222
7. other receivables
Consolidated
30 June 2023 30 June 2022
$ $
Other receivables 1,761 93,694
GST receivables 52,320 10,982
Prepayments 69,023 178,025
123,104 282,701
The value of trade and other receivables considered by the Directors to be
past due or impaired is nil (2022: Nil).
8. other financial assets
Consolidated
30 June 2023 30 June 2022
$ $
Current
Fair Value Through Profit or Loss
Shares in listed equity securities (Level 1) 3,746,250 6,283,560
Movement in other financial assets
Consolidated
30 June 2023 30 June 2022
$ $
Opening balance 6,283,560 533,542
Additions - cash - 224,499
Additions - non-cash(1) - 6,000,000
Disposals - fair value loss(2) (4,596,060) (308,598)
Fair value gain/(loss) 2,058,750 (165,883)
Closing balance 3,746,250 6,283,560
¹ The Company sold Artemis' 70% joint venture interest in the Munni Munni
platinum group metals project to Alien Metals Limited (LON:UFO) (Alien) a
company incorporated in the United Kingdom and listed on the London Stock
Exchange (LSE), for 358,617,818 shares in UFO at GBP0.08 per share for an
amount of $4,650,000. The sale realised a profit of $2,263,931 in the year
ended 30 June 2022. The shares were then sold in the year ended 30 June 2023
realising a loss of $2,294,797.
During the financial year ended 30 June 2022 the Company sold non-core
tenements to GreenTech Metals Limited (ASX:GRE) for 6,750,000 shares in GRE at
$0.20 for an amount of $1,350,000 and a recovery of exploration expenditure in
the amount of $250,000. The shares were marked to market at 30 June 2023 and
now have a carrying value of $3,746,250.
The Company sold its remaining investment in Thor Mining Limited during the
year realising a loss of $91,552.
(2)The Company made the following disposals during the year ended 30 June
2023:
$
Sale of shares in Thor Mining 209,508
Loss on sale of shares in Thor Mining 91,552
Sale of shares in Alien Metals Plc 2,000,203
Loss on sale of share in Alien Metals Plc 2,294,797
Disposals - fair value loss 4,596,060
Proceeds from sale of investments 2,209,711
9. PLANT AND EQUIPMENT
Consolidated
30 June 2023 30 June 2022
$ $
Computer equipment - at cost 92,905 81,814
Less: Accumulated depreciation (66,026) (54,705)
Total computer equipment at net book value 26,879 27,109
Furniture and fittings - at cost 54,135 115,319
Less: Accumulated depreciation (53,779) (88,815)
Total furniture and equipment at net book value 356 26,504
Motor vehicles - at cost 50,656 52,855
Less: Accumulated depreciation (20,625) (10,727)
Total motor vehicles at net book value 30,031 42,128
Total plant and equipment 57,266 95,741
Reconciliation of movement during the year
Reconciliations of the carrying amounts for each class of plant and equipment
are set out below:
Consolidated
30 June 2023 30 June 2022
$ $
Computer equipment:
Carrying amount at the beginning of the year 27,109 36,756
- Addition 11,128 8,532
- Disposals (37) -
- Depreciation (11,321) (18,179)
Carrying amount at the end of the year 26,879 27,109
Furniture and fittings
Carrying amount at the beginning of the year 26,504 51,551
- Addition - 2,820
- Disposal (770) (1,585)
- Depreciation (25,378) (26,282)
Carrying amount at the end of the year 356 26,504
Motor vehicles
Carrying amount at the beginning of the year 42,128 2,200
- Additions - 50,655
- Disposal (2,200) -
- Depreciation (9,897) (10,727)
Carrying amount at the end of the year 30,031 42,128
10. intangible assets
Consolidated
30 June 2023 30 June 2022
$ $
Computer Software - at cost 150,214 151,262
Less: Accumulated amortisation (150,214) (147,739)
Total computer software at net book value - 3,523
Reconciliation of movement during the year:
Consolidated
30 June 2023 30 June 2022
$ $
Computer Software:
Carrying amount at the beginning of the year 3,523 33,732
- Disposal (67) -
- Amortisation (3,456) (30,209)
Carrying amount at the end of the year - 3,523
11. LEASES
Amounts recognised in the balance sheet: Consolidated
30 June 2023 30 June 2022
$ $
Right-of-use assets
Offices 150,781 153,980
Total right-of-use assets 150,781 153,980
Lease liabilities
Current 103,382 44,140
Non-current 49,577 109,311
Total right-of-use liabilities 152,959 153,451
Movement in right-of-use assets
Consolidated
30 June 2023 30 June 2022
$ $
Right-of-use assets opening balance 153,980 -
Add: New leases 212,867 166,571
Less: Amortisation (124,239) (12,591)
Less: Lease surrender (91,827) -
Right-of-use assets closing balance 150,781 153,980
11. LEASES (CONTINUED)
Movement in lease liabilities
Consolidated
30 June 2023 30 June 2022
$ $
Lease liability recognised at start of year 153,451 -
New lease 212,867 166,571
Add: Interest Expense 10,292 2,999
Less: Lease surrender (125,109) -
Less: Principal repayment (98,542) (16,119)
Closing balance 152,959 153,451
a) Amounts recognised in the statement of profit or loss:
30 June 2023 30 June 2022
$ $
Depreciation charge of right-of-use assets 124,239 12,591
Interest expense (included in finance cost) 10,292 2,999
Expenses relating to short-term leases (included in administrative expenses) 31,953 69,716
The total cash outflow for leases during the year ended 30 June 2023 was
$108,834 (2022: $13,120).
12. exploration and evaluation expenditure
Consolidated
30 June 2023 30 June 2022
$ $
Exploration and evaluation expenditure 32,054,704 27,323,626
Exploration and Evaluation Phase Costs
Costs capitalised on areas of interest have been reviewed for impairment
factors, such as resource prices, ability to meet expenditure going forward
and potential resource downgrades. The Group has ownership or title to the
areas of interest in respect of which it has capitalised expenditure and has
reasonable expectations that its activities are ongoing.
Reconciliation of movement during the year:
Consolidated
30 June 2023 30 June 2022
$ $
Opening balance 27,323,626 26,603,617
Expenditure capitalised in current period 5,466,846 8,581,348
Carrying value of projects sold(1) - (3,165,038)
Exploration expenditure written off(2) (735,768) (4,696,301)
Closing balance 32,054,704 27,323,626
¹ In the 2022 financial year the Company sold its 70% joint venture interest
in the Munni Munni platinum group metals project to Alien Metals Limited
(LON:UFO) (Alien) a company incorporated in the United Kingdom and listed on
the London Stock Exchange (LSE), for 358,617,818 shares in UFO at GBP0.08 per
share for an amount of $4,650,000 and $250,000 in cash. The sale realised a
profit of $2,263,931. The shares were then sold in the year ended 30 June 2023
realising a loss of $2,294,797.
In addition, in the 2022 financial year the Company sold non-core tenements to
GreenTech Metals Limited (ASX:GRE) for 6,750,000 shares in GRE at $0.20 for an
amount of $1,350,000, and recovery of expenditure in the amount of $250,000.
The shares had a value as at 30 June 2023 of $3,746,250.
(2)The Group has rationalised the tenement/project portfolio during the year
and has impaired the carrying value of those tenements/projects disposed of
and impaired the carrying value of projects in excess of that deemed
recoverable by the Directors.
Exploration expenditure has been carried forward as that expenditure is
expected to be recouped through successful development and exploration of the
areas of interest.
13. DEVELOPMENT EXPENDITURE
Consolidated
30 June 2023 30 June 2022
$ $
Development expenditure 14,950,070 27,420,924
Reconciliation of movement during the year:
Consolidated
30 June 2023 30 June 2022
$ $
Opening balance 27,420,924 23,473,919
Additions 136,869
Disposals (1,002) -
Impairment(1) (12,969,852) -
Increase in rehabilitation provision(2) (Note 16) 500,000 3,810,136
Closing balance 14,950,070 27,420,924
(1) The Company announced a resource upgrade at the Greater Carlow Project in
October 2022 (See ASX Announcement 13 October 2022 "High-grade Gold Copper
Cobalt Inferred Mineral Resource Lays Foundation for a robust Greater Carlow
Project".)
While the resource, 704,000 oz Au Eq at 2.5 g/t Au Eq, was encouraging, the
resource does not at present fully support the value in use model underlying
the carrying value of the Fox Radio Hill Processing Plant (approximately $27.5
million which includes a rehabilitation provision of $5.7 million) as at 30
June 2023. This represents an indicator of impairment and as a consequence the
Company is required under accounting standards to test for impairment by
comparing its recoverable value to its' carrying value.
The Company determined the recoverable value based on fair value less costs of
disposal. The estimate of fair value is a level 3 on the fair value hierarchy.
Management engaged a third party to value the plant as at 30 June 2023, the
expert valued the plant at $24.923 million on a replacement cost basis.
Management adjusted the expert's valuation to reflect the most likely use of
the plant and what management believe would be achieved in a market scenario,
and determined the recoverable value is approximately $14.95 million.
Accordingly, the Company has booked an impairment provision of $12,969,852 for
the year.
(2) The increase in the provision in 2022 and 2023 results from a revision in
the discount rate used in the calculation of the present value of the future
rehabilitation cost estimates and an adjustment to reflect a higher inflation
rate.
14. trade and other payables
Consolidated
30 June 2023 30 June 2022
$ $
1,529,181 2,931,542
Trade and other payables
15. EMPLOYEE benefits obligationS
Consolidated
30 June 2023 30 June 2022
$ $
Opening balance 39,473 2,170
Provision for the year - 57,994
Benefits used or paid (24,739) (20,691)
Closing balance 14,734 39,473
16. Provisions
Consolidated
30 June 2023 30 June 2022
$ $
Provision for restoration and rehabilitation 5,723,259 5,223,259
Reconciliation of movement for the year
Opening balance 5,223,259 1,413,123
Increase in rehabilitation provision 500,000 3,810,136
Closing balance 5,723,259 5,223,259
During the year the Group revised its provision for restoration and
rehabilitation to account for changes in inflation and discount rates. This
resulted in an increase in the provision. The increase has been capitalised in
the development asset.
17. SHARE CAPITAL
Consolidated Consolidated
30 June 2023 30 June 2022 30 June 2023 30 June 2022
No. of Shares No. of Shares $ $
Issued and Paid-up Capital
Ordinary shares, fully paid 1,569,918,371 1,388,330,984 117,396,554 114,927,239
Reconciliation of movement during the year:
2023 2023 2022 2022
Shares $ Shares $
Opening balance 1,388,330,984 114,927,239 1,254,997,651 105,855,802
Shares issued for services rendered
11,587,387 185,359 - -
Shares issued to investors for Placement
170,000,000 2,548,102 133,333,333 9,508,026
Share issue costs - (140,776) - (436,589)
Share issue costs - options - (123,370) - -
Closing balance 1,569,918,371 117,396,554 1,388,330,984 114,927,239
Term of Issue:
Ordinary Shares
Ordinary shares participate in dividends and are entitled to one vote per
share at shareholders meetings. In the event of winding up the Company,
ordinary shareholders rank after creditors and are entitled to any proceeds of
liquidation in proportion to the number of shares held.
18. RESERVES
Consolidated Consolidated
30 June 2023 30 June 2022 30 June 2023 30 June 2022
No. of options/rights No. of options/rights $ $
Share based payments
Options 116,500,000 138,729,195 389,359 2,695,313
Performance rights - 6,000,000 - 30,600
116,500,000 144,729,195 389,359 2,725,913
Options movement
Number $
Opening balance 144,729,195 2,725,913
Free attaching options to share issue(1) 85,000,000 -
Options issued to brokers 17,000,000 123,434
Director options 25,000,000 373,300
Options lapsed (149,229,195) (2,802,688)
Performance rights lapsed (6,000,000) (30,600)
116,500,000 389,359
( )
(1)The Company issued 85,000,000 free attaching options to a share issue
during the year on the basis of one option for every two new shares issued.
The options have an exercise price of $0.025 and an expiry date of 9 March
2026.
No options were exercised during the year.
Refer to Note 24 for details on share-based payments.
19. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Board of Directors takes responsibility for managing financial risk
exposures of the Group. The Board monitors the Group's financial risk
management policies and exposures and approves financial transactions. It
also reviews the effectiveness of internal controls relating to commodity
price risk, counterparty credit risk, currency risk, liquidity risk and
interest rate risk. The Board meets approximately bi-monthly at which these
matters are reviewed.
The Board's overall risk management strategy seeks to assist the Group in
meeting its financial targets, while minimising potential adverse effects on
financial performance. Its review includes the use of hedging derivative
instruments, credit risk policies and future cash flow requirements.
The Company's principal financial instruments comprise cash, short term
deposits and securities in Australian or International listed companies. The
main purpose of the financial instruments is to earn the maximum amount of
interest at a low risk to the company. The Company also has other financial
instruments such as trade debtors and creditors which arise directly from its
operations.
The main risks arising from the Company's financial instruments are interest
rate risk, credit risk, foreign exchange risk, commodity risk and liquidity
risk. The Board reviews and agrees policies for managing each of these risks
and they are summarised below:
19. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(i) Interest Rate Risk
The Company's exposure to interest rate risk is the risk that a financial
instrument's value will fluctuate as a result of changes in market interest
rates and the effective weighted average interest rate for each class of
financial assets and financial liabilities.
The following table demonstrates the sensitivity to a reasonably possible
change in interest rates on the following financial assets and liabilities:
FY2023 Carrying Effect on loss before tax Effect on pre-tax equity
Amount
+1% -1% +1% -1%
Financial Assets
Cash and cash equivalents(1)
1,703,016 17,030 (17,030) 17,030 (17,030)
Trade and other receivables(2)
123,104 - - - -
Other financial assets(5)
3,746,250 - - - -
5,572,370 17,030 (17,030) 17,030 (17,030)
Financial liabilities
Trade and other payables(3) 1,529,181 - - - -
Financial Liabilities(4) 152,959 (1,530) 1,530 (1,530) 1,530
1,682,140 (1,530) 1,530 (1,530) 1,530
Total increase/(decrease) 15,500 (15,500) 15,500 (15,500)
FY2022 Carrying Effect on loss before tax Effect on pre-tax equity
Amount
+1% -1% +1% -1%
Financial Assets
Cash and cash equivalents(1)
6,106,222 61,062 (61,062) 61,062 (61,062)
Trade and other receivables(2)
282,701 - - - -
Other financial assets(5)
6,283,560 - - - -
12,672,483 61,062 (61,062) 61,062 (61,062)
Financial liabilities
Trade and other payables(3) 2,931,542 - - - -
Financial Liabilities(4) 153,451 (1,535) 1,535 (1,535) 1,535
2,084,993 (1,535) 1,535 (1,535) 1,535
Total increase/(decrease) 59,527 (59,527) 59,527 (59,527)
( )
( )
19. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
( )
(1) Cash and cash equivalents are denominated in both AUD and GBP. The
weighted average interest rate for the year ended 30 June 2023 was 0.00%
(2022: 0.00%). No other financial assets or liabilities are interest bearing.
(2) Trade and other receivables are denominated in AUD and are not interest
bearing.
(3) Trade and other payables at balance date are denominated mainly in AUD and
are not interest bearing.
(4) Financial liabilities are lease liabilities with an implicit interest
rate.
(5) Other financial assets are designated in AUD and are non-interest bearing.
(ii) Credit Risk
Credit risk refers to the risk that a counter-party will default on its
contractual obligations resulting in financial loss to the Company. The
Company has adopted the policy of only dealing with credit worthy
counterparties and obtaining sufficient collateral or other security where
appropriate, as a means of mitigating the risk of financial loss from
defaults.
The Company does not have any significant credit risk exposure to any single
counterparty or any group of counterparties having similar characteristics.
The carrying amount of financial assets recorded in the financial statements,
net of any provisions for losses, represents the Company's maximum exposure to
credit risk.
(iii) Foreign Exchange Risk
The Company had the following British Pound and United States Dollar
denominated assets and liabilities at year end.
Consolidated
30 June 2022 30 June 2022
Cash
Cash and cash equivalents British Pound 42,195 2,593,744
2,593,744
7,116 -
United State Dollars
The following tables demonstrate the sensitivity to a reasonably possible
change in USD exchange rate, with other variables held constant.
Net impact of strengthening/(weakening) of AUD on GBP/USD assets/liabilities Change in GBP rate Effect on loss before tax Effect on pre-tax equity
outlined above
FY2023 (GBP& USD) +5% 2,466 2,466
-5% (2,466) (2,466)
FY2022 (GBP only) +5% 129,687 129,687
-5% (129,687) (129,687)
(iv) Market Risk
The Company's listed investments are affected by market price volatility. The
following table shows the effect of market price changes.
19.FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
Change in year end price Effect on loss before tax Effect on pre-tax equity
$ $
FY2023 +5% 187,312 187,312
-5% (187,312) (187,312)
FY2022 +5% 314,178 314,178
-5% (314,178) (314,178
(v) Liquidity Risk
The Group's objective is to maintain a balance between continuity of funding
and flexibility through the use of bank loans, convertible notes and finance
leases. Cash flows from financial assets reflect management's expectation as
to the timing of realisation. Actual timing may therefore differ from that
disclosed. The timing of cash flows presented in the table to settle
financial liabilities reflects the earliest contractual settlement dates and
does not reflect management's expectations that banking facilities will roll
forward.
The following tables below reflect an undiscounted contractual maturity
analysis for financial liabilities.
FY2023 Within 1 year 1 to 5 Over 5 Total
years years
Financial liabilities due for payment
Trade and other payables 1,529,181 - - 1,529,181
Lease liabilities 103,382 49,577 - 152,959
Total contractual outflows 1,632,563 49,577 - 1,682,140
Cash and cash equivalents 1,703,016 - - 1,703,016
Trade and other receivables 123,104 - - 123,104
Other financial assets 3,746,250 - - 3,746,250
Total anticipated inflows 5,572,370 - - 5,572,370
Net inflow/(outflow) on financial instruments
3,939,807 (49,577) - 3,890,230
FY2022 Within 1 year 1 to 5 Over 5 Total
years years
Financial liabilities due for payment
Trade and other payables 2,931,542 - - 2,931,542
Financial liabilities 44,140 109,311 - 153,451
Total contractual outflows 2,975,682 109,311 - 3,084,993
Cash and cash equivalents 6,106,222 - - 6,106,222
Trade and other receivables 282,701 - - 282,701
Other financial assets 6,283,560 - - 6,283,560
Total anticipated inflows 12,672,483 - - 12,672,483
Net inflow/(outflow) on financial instruments
9,696,801 (109,311) - 9,587,490
19. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
Management and the Board monitor the Group's liquidity reserve on the basis of
expected cash flow. The information that is prepared by senior management
and reviewed by the Board includes:
(i) Annual cash flow budgets;
(ii) Monthly rolling cash flow forecasts.
(vi) Net Fair Value
The carrying amount of financial assets and financial liabilities recorded in
the financial statements represents their respective net fair values,
determined in accordance with the accounting policies disclosed in Note 1.
20. commitmentS for expenditure
The Group currently has commitments for expenditure at 30 June 2023 on its
Australian exploration tenements as follows:
Consolidated
30 June 2023 30 June 2022
$ $
Not later than 12 months 662,940 656,820
Between 12 months and 5 years 1,656,720 2,776,060
Greater than 5 years 117,400 400,900
2,437,060 3,833,780
The Company evaluates its tenements and exploration program on an annual basis
and may elect not to renew tenement licences if it deems appropriate.
21. related party disclosures
(a) Refer to the Remuneration Report contained in the Directors' Report for
details of the remuneration paid or payable to each member of the Group's Key
Management Personnel for the year ended 30 June 2023. Key Management
Personnel for the year ended 30 June 2023 comprised the Directors and the
Exploration Manager.
(b) The total remuneration paid to Key Management Personnel of the Company and
the Group during the year are as follows:
Consolidated
30 June 2023 30 June 2022
$ $
Short term employee benefits 842,357 1,182,804
Share based payment 373,300 89,250
Superannuation 26,257 24,042
Termination payments 221,151 -
1,463,065 1,296,096
(c) Remuneration options and performance rights: As at 30 June 2023, the
outstanding options and performance rights that were granted to Key Management
Personnel in previous and current reporting periods comprised of 5,000,000
options. 20,000,000 options issued to directors that resigned during the year
lapsed unexercised.
(d) Share and option holdings: All equity dealings with directors have been
entered into with terms and conditions no more favourable than those that the
entity would have adopted if dealing at arm's length.
(e) Related party transactions
Consolidated
30 June 2023 30 June 2022
$ $
Doraleda Pty Ltd(1) 30,833 48,336
Integrated CFO Solutions(2) 120,000 108,000
Minerva Corporate Pty Ltd(3) 60,000 97,711
210,833 254,047
(
1) Director fees and consulting fees paid to Doraleda Pty Ltd, a company in
which Mr Edward Mead has an interest.
(2) Company secretary fees $108,000 and director fees $12,000 paid to
Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest.
(3) Director fees $60,000 (2022: $53,961) and accounting fees in 2022 of
$43,750 paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith
has an interest.
22. earnings per share
The calculation of basic earnings and diluted earnings per share at 30 June
2023 was based on the loss attributable to shareholders of the parent company
of $16,923,543 (2022: Loss $7,529,345):
Consolidated
30 June 2023 30 June 2022
$ $
Basic loss per share (1.17) (0.58)
Diluted loss per share (1.17) (0.58)
No of Shares No of Shares
Weighted average number of ordinary shares:
Used in calculating basic earnings per ordinary share 1,444,629,567 1,307,235,094
Dilutive potential ordinary shares - -
Used in calculating diluted earnings per share 1,444,629,567 1,307,235,094
23. auditor's remuneration
Consolidated
30 June 2023 30 June 2022
$ $
Auditor of parent entity
Audit fees - HLB Mann Judd 62,363 58,464
Taxation services 32,500 19,750
94,863 78,214
24. share-based paymentS
Goods or services received or acquired in a share-based payment transaction
are recognised as an increase in equity if the goods or services were received
in an equity-settled share-based payment transaction or as a liability if the
goods and services were acquired in a cash settled share-based payment
transaction.
For equity-settled share-based transactions, goods or services received are
measured directly at the fair value of the goods or services received provided
this can be estimated reliably. If a reliable estimate cannot be made the
value of the goods or services is determined indirectly by reference to the
fair value of the equity instrument granted.
Transactions with employees and others providing similar services are measured
by reference to the fair value at grant date of the equity instrument granted.
24. share-based paymentS (continued)
The following share-based payment arrangements were in place during the prior
and current financial year:
Instruments Date granted Expiry date Exercise price No. of instruments No. of instruments Fair value at grant date
2023 2022
Options 24 May 2019 31 July 2022 0.08 13,729,195 13,729,195 0.0165
Options 22 July 2019 31 July 2022 0.08 10,000,000 10,000,000 0.0121
Options 1 May 2020 1 May 2023 0.04 - 1,000,000 0.0181
Options 1 May 2020 31 July 2022 0.05 - 43,500,000 0.0130
Options 1 May 2020 31 January 2023 0.07 - 43,500,000 0.0151
Options 1 May 2020 31 July 2022 0.05 - 7,500,000 0.0130
Options 1 May 2020 31 July 2023 0.05 7,500,000 7,500,000 0.0151
Options 2 December 2020 2 December 2023 0.18 - 5,000,000 0.0812
Options 2 December 2020 2 December 2025 0.25 - 5,000,000 0.0935
Options 20 December 2021 20 December 2023 0.15 2,000,000 2,000,000 0.0408
Performance rights A 30 December 2021 31 December 2022 0.000 3,000,000 3,000,000 0.0204
Performance rights B 30 December 2021 31 December 2022 0.000 3,000,000 3,000,000 0.0810
Options 1 July 2022 31 July 2025 0.05 2,000,000 - 0.014
Options 5 September 2022 31 July 2025 0.05 23,000,000 - 0.0151
Options 8 March 2023 9 March 2026 0.025 17,000,000 - 0.0073
The Performance rights were issued to employees of the Company. Tranche A of
Performance Rights vest on the Company achieving a 30-day VWAP of 25 cents.
Tranche B of Performance Rights vest on the Company achieving a Carlow Castle
resource achieving 1 Moz Au. The Performance rights lapsed unvested on
resignation of the relevant employees.
Options issued to Key Management Personnel during the year are outlined in the
remuneration report.
For the year ended 30 June 2023, the Group has recognised a share-based
payment expense in the statement of profit or loss and other comprehensive
income of $373,300 (2022: $81,600) in relation to share options, $Nil (2022:
$30,600) in relation to performance rights, and $102,000 (2022: $Nil) in
relation to ordinary shares. For the year ended 30 June 2023, the Group issued
options with a fair value of $123,434 (2022: $Nil) for share issue costs, and
ordinary shares with a fair value of $83,359 (2022: $Nil) was capitalised as
deferred exploration and evaluation expenditure.
24. share-based paymentS (CONTINUED)
Consolidated
30 June 2023 30 June 2022
$ $
Options - directors 373,300 81,600
Performance rights - employees and consultants - 30,600
Shares - service providers 102,000 -
Share-based payment expense 475,300 112,200
Options - share issue costs 123,434 -
Shares - service provider accrued in prior year 83,359 -
The ordinary shares issued to service providers were valued at $0.012 a share
being the share price the service was provided. The ordinary shares issued to
the Vendors of the Munni-Munni were valued at $0.027 a share being the share
price the tenement was acquired.
The unlisted options issued during the year or the prior year were valued
using the Black-Scholes model. The options outstanding as at 30 June 2023 were
determined on the date of grant using the following assumptions:
Class B Class G Director Directors ARVOPT18
Broker Director Broker
Grant date 01/05/2020 20/12/2021 1/7/2022 5/9/2022 8/3/2023
Exercise price ($) 0.07 0.15 0.05 0.05 0.025
Expected volatility (%) 103 95 100 94 95
Risk-free interest rate (%) 0.63 0.391 3.13 2.985 3.48
Expected life (years) 3.2 3 3.08 3.08 3.00
Share price at this date ($) 0.031 0.086 0.027 0.03 0.014
Fair value per option ($) 0.0154 0.0408 0.014 0.0151 $0.0073
Number of options 7,500,000 2,000,000 2,000,000 23,000,000* 17,000,000
*20,000,000 of the director options lapsed on resignation of Directors Mark
Potter and Alastair Clayton.
25. reconciliation of net cash used in operating activities to loss after
income tax
Consolidated
30 June 2023 30 June 2022
$ $
Loss after income tax (16,923,543) (7,529,345)
Depreciation and amortisation 201,769 97,988
Exploration and project expenditure written off 735,768 4,696,301
Impairment 12,969,852 -
Share based payments 475,300 112,200
(Loss)/profit on sale of exploration assets - (1,734,962)
Fair value loss on financial assets 337,666 165,883
Changes in current assets and liabilities during the financial period:
Decrease in receivables 159,597 26,844
Increase in provisions 500,000 -
Increase in trade and other payables (1,328,398) 300,269
Net cash outflow from operating activities (2,871,989) (3,864,822)
26. PARENT ENTITY DISCLOSURE
30 June 2023 30 June 2022
$ $
(a) Financial position
Total current assets 5,548,975 12,371,950
Total Non-Current Assets 2,840,076 2,558,801
Total Assets 8,389,051 14,930,751
Total current liabilities 1,529,147 2,632,467
Total non-current liabilities 49,577 109,311
Total Liabilities 1,578,724 2,474,778
Net Assets 6,810,327 12,188,973
Equity
Share capital 117,396,554 114,927,239
Reserves 389,358 2,725,913
Accumulated Losses (110,975,585) (105,464,179)
6,810,327 12,188,973
Loss for the year (8,344,696) (6,978,488)
Other comprehensive income
Total comprehensive loss (8,344,696) (6,978,488)
(b) Commitments
Exploration commitments
Not later than 12 months - -
Between 12 months and 5 years - -
- -
27. SUBSIDIARIES
Country of Incorporation Ownership
%
30 June 2023 30 June 2022
Parent Entity:
Artemis Resources Limited Australia - -
Subsidiaries:
Fox Radio Hill Pty Limited Australia 100 100
Karratha Metals Limited Australia 100 100
KML No 2 Pty Limited Australia 100 100
Armada Mining Pty Limited Australia 100 100
Elysian Resources Pty Limited Australia 100 100
Hard Rock Resources Pty Limited Australia 100 100
Artemis Graphite Pty Ltd Australia 100 100
Artemis Management Services Pty Ltd Australia 100 100
Consolidated
The parent entity with the Group is Artemis Resources Limited which is the
ultimate parent entity in Australia.
Transactions with subsidiaries
Balances and transactions between the Company and its subsidiaries, which are
related parties of the Company, have been eliminated on consolidation.
28. FINANCIAL INSTRUMENTS
The Directors consider that the carrying amounts of current receivables and
current payables are a reasonable approximation of their fair values.
29. contingent liabilities and contingent assets
There are no contingent liabilities or contingent assets since the last annual
reporting period.
30.events subsequent to 30 june 2023
There are currently no matters or circumstances that have arisen since the end
of the financial year that have significantly affected or may significantly
affect the operations the Group, the results of those operations, or the state
of affairs of the Group in the future financial years.
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. END FR FIFEEAAIAFIVRecent news on Artemis Resources
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