REG - Aura Energy Limited - Audited Financial Report
27/09/2024 13:30
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RNS Number : 0602G Aura Energy Limited 27 September 2024
27 September 2024
Aura Energy Limited
("Aura" or the "Company")
Audited Financial Report for the Year ended 30 June 2024
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura", the "Company") is pleased to announce that it has released its Audited Financial Report for the year ended 30 June 2024 (the "Financial Report").
A full version of the Financial Report can be viewed at:
http://www.rns-pdf.londonstockexchange.com/rns/0602G_1-2024-9-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0602G_1-2024-9-27.pdf)
The Financial Report is also available on the Company's website at:
https://auraenergy.com.au/investor-centre/financial-reports/
Information regarding the Company's forthcoming Annual General Meeting will be
announced shortly.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.
For Further Information, please contact:
Andrew Grove Paul Ryan SP Angel Corporate Finance LLP
Managing Director and CEO Sodali & Co Nominated Advisor and Broker
Aura Energy Limited Investor & Media Relations David Hignell
agrove@auraee.com (mailto:Agrove@auraee.com) paul.ryan@sodali.com (mailto:paul.ryan@sodali.com) Adam Cowl
+61 414 011 383 +61 409 296 511 Devik Mehta
Grant Barker
+44 203 470 0470
About Aura Energy (ASX: AEE, AIM: AURA)
Aura Energy is an Australian-based mineral company with major uranium and
polymetallic projects in Africa and Europe.
The Company is focused on developing a uranium mine at the Tiris Uranium
Project, a major greenfield uranium discovery in Mauritania. The February 2024
FEED study demonstrated Tiris to be a near-term low-cost 2Mlbs U3O8 pa near
term uranium mine with a 17-year mine life with excellent economics and
optionality to expand to accommodate future resource growth. In mid-June
2024, Aura announced the Tiris' global mineral resources increased by 55% to
91.3Mlbs U3O8, up from 58.9Mlbs U3O8.
Aura plans to transition from a uranium explorer to a uranium producer to
capitalise on the rapidly growing demand for nuclear power as the world shifts
towards a decarbonised energy sector.
Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden.
Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash ("SOP")
and uranium resource. Utilising only 3% of the resource, a 2023 Scoping Study
outlined a 27-year mine life based on mining 3.5Mtpa.
Disclaimer Regarding Forward-Looking Statements
This announcement contains various forward-looking statements. All statements
other than statements of historical fact are forward-looking statements.
Forward-looking statements are inherently subject to uncertainties in that
they may be affected by a variety of known and unknown risks, variables and
factors which could cause actual values or results, performance or
achievements to differ materially from the expectations described in such
forward-looking statements. The Company does not give any assurance or
guarantee that the anticipated results, performance or achievements
expressed or implied in those forward-looking statements will be achieved.
IMPORTANT NOTICE
These Financial Statements are an extract from the full published Aura Energy
Limited Annual Report dated 27 September 2024.
Copies of the full report, including the Chairman's Letter, Directors Report,
signed Directors Declaration and the Independent Auditor's Report can be
viewed in the PDF version of the Annual Report.
Letter from the Chairman
Dear Fellow Shareholder
Thank you for your ongoing support as our Company continues to advance its key
projects.
Aura Energy Ltd ("Aura" or the "Company") is in a great position to catch the
new wave of clean energy demand. The Company is now uniquely positioned with a
near term, low-cost uranium development at Tiris Project ("Tiris") in
Mauritania, and a Tier One polymetallic resource in Europe's leading mining
jurisdiction at Häggån Project ("Häggån") in Sweden - in a market that
is increasingly hungry for cleaner energy solutions.
This year we made substantial progress at both Tiris and Häggån, and we
are focussed on moving Tiris into construction and production by the end of
2026.
Demand for uranium continues to grow
Globally, 152 nuclear reactors are currently either under construction or
planned to be constructed. During the year, key government decisions were
taken to support the production of nuclear energy, uranium mining and uranium
conversion.
These include developments in Sweden, the United Kingdom's plans to quadruple
its nuclear energy capacity by 2050, and the US, Canada, Japan and France
collectively investing in new uranium enrichment and conversion capacity.
Of course, China's development of its nuclear energy capacity continues apace.
These developments underpinned uranium prices, which have stabilised at around
US$85/lb. It is clear that global uranium stocks continue to be drawn down and
demand is growing as the world brings more nuclear power online to provide
reliable, baseload energy to complement renewables and phase out fossil fuels.
We are not alone in our optimism about the long-term direction of uranium
markets. The World Nuclear Association's Nuclear Fuel Report projects a 28%
increase in demand for uranium by 2030 and a further 51% increase in demand
between 2031 and 2040.
Tiris Uranium Project
The Tiris Uranium Project is fully permitted and construction ready following
the Mauritanian Government's granting of its final material permit for the
construction and operation of the project. The Front End Engineering and
Design ("FEED") study for Tiris, completed during the year and production
target updated in September 2024, demonstrating the outstanding economics of
Tiris with an NPV of US$499 million, an internal rate of return ("IRR") of 39
per cent, and a 2.25 year payback period.
In June, Aura appointed Orimco Pty Ltd to arrange debt funding for Tiris, and
also appointed Macquarie Capital (Australia) Limited to identify and engage
with strategic investors for a potential investment in Tiris and Aura. We are
pleased to have secured these high-quality advisors to manage the significant
interest we have received to date, and look forward to finalising these
arrangements prior to Financial Investment Decision ('FID") which we are
targeting to achieve by early 2025.
We are now in the process of procuring funding for Tiris, with production
intended to commence late in 2026.
This year, we also conducted a successful exploration campaign which led to a
55% increase in Tiris' global Mineral Resources by 91.3 Mlbs U3O8, up from
58.9Mlbs U3O8. Our exploration efforts in Mauritania are very cost effective,
delivered at a discovery cost of only US$0.14 per lb U3O8. We are highly
confident that there is room for significant further growth in Tiris' resource
base.
Häggån Project
In Sweden, where our substantial Häggån resource is located, we continued
our engagement with local communities, and the national Government as it works
through the process of implementing its policy to roll back the ban on uranium
mining. Sweden, like the rest of Europe, sees nuclear energy as critical to
providing energy security with zero carbon emissions.
We released a Scoping Study on Häggån that confirmed the significant
strength of the project, with an NPV in the range of US$380 million to
US$1,231 million and a post-tax of IRR estimated at between 26 and 47 per
cent.
The Scoping Study was based on less than 3% of Häggån's 2 billion tonnes
mineral resource and excluded uranium - which underlines why we are so excited
about Häggån's long-term potential.
Exploitation Permit Application and Exploration Permit Application were
applied for in August 2024.
Our Company
Aura ended the year in a strong financial position, following a A$16.2 million
(gross) placement and an oversubscribed Share Purchase Plan that raised an
additional A$2 million. As part of the placement, we welcomed a number of
highly credentialled investors to Aura's register.
The funding is helping us accelerate the Tiris Uranium Project towards FID,
whilst unlocking the very significant value within Tiris along with future
expansion opportunities in both the resource potential and project scale.
Furthermore, Aura and Curzon Uranium Limited ("Curzon") agreed to restructure
the historical uranium offtake agreement, materially increasing the price
receivable for planned uranium production and releasing significant value for
Tiris.
Essentially, our average fixed contract price pursuant to the Curzon offtake
arrangements increases 70% to US$74.75/lb from US$44.09/lb subject to FID by
early 2025, and total contracted volumes reduce from 2.6Mlbs to 2.1Mlbs over
same 7-year term, delivering US$41 million of additional potential revenue to
Tiris at a uranium price of US$80/lb.
This year, we were excited to welcome Andrew Grove who joined Aura as Managing
Director and CEO. For over 30 years, Andrew has been responsible for the
financing, development and successful operation of numerous West African
projects. Andrew was most recently Managing Director of Senegal-focussed
Chesser Resources Limited until the successful acquisition by Fortuna Mines.
Andrew has the leadership skills and technical and financial experience to see
our Company through this exciting phase of our development, and we are
delighted to have him on board.
The capacity of the team to develop Tiris has been further strengthened with a
number of key appointments. These include Mark Somlyay, CFO with extensive
experience in West Africa, Jan Booyse and Project EQ who will undertake the
pre-development planning and owners team function for Tiris development.
Further appointments are underway to ensure the team has the capacity to
successfully bring Tiris into production in late 2026.
In late January, Aura also announced the resignation of David Woodall as
Managing Director and CEO. On behalf of the Board, I want to express our
sincere thanks to David for his contributions, particularly in advancing the
Tiris Enhanced Definitive Feasibility Study and the Häggån Scoping Study.
Board
I wish to thank my fellow Directors for their active and important
participation throughout the year in Board meetings, Board committees and
strategy workshops.
During 2024, we have significantly increased the oversight that the board has
provided through our committees.
Bryan has led the Audit and Risk Committee, and reviewed the Committee Charter
to ensure it remains relevant to the company's needs. The Committee has
focussed its efforts on the company's formal accounting records, including
regular engagement with the auditor, the Company's access to cash, compliance
systems and has undertaken a comprehensive risk review and reviewed the same.
The Remuneration and Nomination Committee has responded to the 2023
Remuneration Report "first strike" with vigour. Working closely with our
independent advisor, the Remuneration and Nomination Committee has developed a
comprehensive approach which we understand both conforms with industry best
practice and appropriately encourages and incentivises our leadership team to
push the company forward to delivery of strong returns for shareholders.
Outlook
Next year will be a defining year for Aura as we ready ourselves for a final
investment decision for the Tiris Project. With compelling economics, a stable
and supportive Government and local community in Mauritania, Tiris is poised
to be a near term producer
coming into a uranium market that is being driven by the convergence of
growing global energy demand and the global push to meet Net Zero targets. Our
focus in the coming months will be to finalise Tiris' funding requirements as
we approach FID.
In Sweden, we are building relationships with key stakeholders as we move
through the required approval processes to continue the development of the
Häggån Project. At the same time, we are closely watching developments as
the national Government moves through its legislative processes to rescind the
country's ban on uranium mining.
Conclusion
Tiris is a low-cost, near-term uranium project that is development-ready, with
the necessary stakeholder support, and opportunities for further resource
upside. In Sweden, we have one of the world's great polymetallic resources in
the heart of a huge energy and resource-hungry market.
The dedicated team at Aura continues to deliver results. I would like to thank
Andrew and his executive team, and our people in Australia, Mauritania and
Sweden for their continued professionalism and commitment to improving and
delivering our projects.
Thank you again for your support of Aura in 2024. I look forward to reporting
to you during the new financial year as we move from planning and developing
to building of the world's next major uranium projects.
Philip Mitchell
Non-Executive Chair
Consolidated Statement of Profit or Loss & Other Comprehensive Income for the Year Ended 30 June 2024
Notes 30 Jun 2024 30 Jun 2023
$ *restated
$
Expenses
FX gains (losses) (61,786) 41,333
Employee benefits (2,324,134) (1,244,278)
Corporate and administrative expenses 5(a) (3,533,257) (3,184,224)
Share based payment expenses 9 (585,368) (2,472,578)
Operating loss (6,504,545) (6,859,747)
Finance income 5(b) 274,711 64,233
Finance expense 5(b) (380,185) -
Net finance income/(expenses) (105,474) 64,233
Loss before income tax benefit (6,610,019) (6,795,514)
Income tax benefit 6 - -
Loss after income tax benefit for the year attributable to the
owners of Aura Energy Limited (6,610,019) (6,795,514)
Loss is attributable to:
Owners of Aura Energy Limited (6,589,231) (6,492,350)
Non-controlling interests (20,788) (303,164)
(6,610,019) (6,795,514)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations (77,014) (1,371,500)
Total comprehensive loss for the year, net of tax (77,014) (1,371,500)
Loss after income tax for the year attributable to equity holders
of the Company (6,687,033) (8,167,014)
Total comprehensive income for the year is attributable to:
Owners of Aura Energy Limited (6,656,994) (7,855,170)
Non-controlling interests (30,039) (311,844)
(6,687,033) (8,167,014)
Cents Cents
From continuing operations attributable to the ordinary equity
holders of the company
Basic and diluted loss per share 7 (1.01) (1.19)
*During this period, the Company determined that the Tasiast Group no longer
met the criteria for a disposal group under AASB 5 and was reclassified
accordingly. Refer to note 21 for more details.
The above Consolidated statement of profit or loss and other comprehensive
income should be read in conjunction with the notes to the consolidated
financial statements.
Consolidated Statement of Financial Position As at 30 June 2024
Notes 30 Jun 2024 30 Jun 2023
$ *restated
$
Assets
Current assets
Cash and cash equivalents 10 16,470,818 11,276,307
Receivables 11 88,196 63,203
Other current assets 11 134,445 29,732
Total current assets 16,693,459 11,369,242
Non-current assets
Security deposits 11 57,401 50,380
Plant and equipment 10,412 5,158
Right of use assets 12 218,421 -
Exploration and evaluation 13 41,894,715 29,946,359
Total non-current assets 42,180,949 30,001,897
Total assets 58,874,408 41,371,139
Liabilities
Current liabilities
Trade and other payables 14 2,163,578 1,443,562
Provision for employee benefits 8 166,841 121,021
Other current liabilities 5,960 667
Short term loans 15 1,202,004 -
Lease liabilities 12 111,018 -
Total current liabilities 3,649,401 1,565,250
Non-current liabilities
Provision for employee benefits 8 5,870 3,594
Lease liabilities 12 150,717 -
Total non-current liabilities 156,587 3,594
Total liabilities 3,805,988 1,568,844
Net assets 55,068,420 39,802,295
Equity
Share capital 16 104,536,636 81,832,301
Other equity 314,346 314,346
Other reserves 17 3,645,166 4,464,106
Accumulated losses (53,322,418) (46,733,187)
Capital and reserves attributable to owners of parent 55,173,730 39,877,566
Non-controlling interests (105,310) (75,271)
Total equity 55,068,420 39,802,295
*During this period, the Company determined that the Tasiast Group no longer
met the criteria for a disposal group under AASB 5 and was reclassified
accordingly. Refer to note 21 for more details.
The above Consolidated statement of financial position should be read in
conjunction with the notes to the consolidated financial statements.
Attributable to owners of Aura Energy Limited
Non-
Share capital
Other
Other
Accumulated
controlling Total
Notes
$
equity reserves
losses Total
interests equity
$
$
$
$
$ $
Balance at 1 July 2023 81,832,301 314,346 4,464,106 (46,733,187) 39,877,566 (75,271) 39,802,295
Loss after income tax expense for the half year - - - (6,589,231) (6,589,231) (20,788) (6,610,019)
Other comprehensive income for the half year, net of tax - - (67,763) - (67,763) (9,251) (77,014)
Total comprehensive loss for the year - - (67,763) (6,589,231) (6,656,994) (30,039) (6,687,033)
Transactions with owners in their capacity
as owners
Contributions of equity, net of transaction costs and tax 16 16,734,430 - - 16,734,430 - 16,734,430
Options exercised 16 4,633,360 - - - 4,633,360 - 4,633,360
Transfer from reserves on exercise of options 17 1,336,545 (1,336,545) - - - -
Loan funded securities 9 - - 585,368 - 585,368 - 585,368
Balance at 30 June 2024 104,536,636 314,346 3,645,166 (53,322,418) 55,173,730 (105,310) 55,068,420
The above Consolidated statement of changes in equity should be read in
conjunction with the notes to the consolidated financial statements.
Attributable to owners of Aura Energy Limited
Notes
Non-
Share
Other
Other
Accumul
ated
control
ling
Total
capital
equity
reserve
s
losses
Total
interes
ts
equity
$
$
$
$
$
$
$
Balance at 1 July 2022 69,357,543 314,346 3,946,825 (40,240,837) 33,377,877 236,573 33,614,450
Loss after income tax expense for the half year - - - (6,492,350) (6,492,350) (303,164) (6,795,514)
Other comprehensive income for the half year, net of tax - - (1,362,820) - (1,362,820) (8,680) (1,371,500)
Total comprehensive loss for the half year - - (1,362,820) (6,492,350) (7,855,170) (311,844) (8,167,014)
Transactions with owners in their capacity
as owners
Contributions of equity, net of transaction costs and tax 16 9,936,597 - - - 9,936,597 - 9,936,597
Options exercised 16 1,702,684 - - - 1,702,684 - 1,702,684
Transfer from reserves on exercise of options 17 592,477 - (592,477) - - - -
Loan funded securities 9 - - 2,472,578 - 2,472,578 - 2,472,578
Shares issued in lieu of payment 243,000 - - - 243,000 - 243,000
Balance at 30 June 2023 81,832,301 314,346 4,464,106 (46,733,187) 39,877,566 (75,271) 39,802,295
The above Consolidated statement of changes in equity should be read in
conjunction with the Notes to the consolidated financial statements.
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Notes 30 Jun
2024
2022
$
$
Operating activities
Loss after income tax expense for the year (6,610,019) (6,795,514)
Adjustments for:
Depreciation expense 148,131 1,856
Exchange fluctuations (28,405) 249,017
Share based payments 9 585,368 2,715,579
Finance costs 12,15 380,185 -
Change in operating assets and liabilities:
Decrease/(increase) in other receivables (24,993) (36,030)
Decrease/(increase) in other operating assets (59,877) 69,462
Increase/(decrease) in trade and other payables 720,018 168,743
Increase/(decrease) in employee benefits 48,096 106,074
Increase/(decrease) in other operating liabilities 5,293 -
Net cash flows used in operating activities (4,836,203) (3,520,813)
Investing activities
Payments for plant and equipment (67,229) (2,457)
Payments for exploration and evaluation (11,990,026) (7,259,757)
Payments for security deposits (10,998) -
Net cash used in investing activities (12,068,253) (7,262,214)
Financing activities
Proceeds from issue of shares from placement,
net of capital raising costs 16 16,874,476 9,936,596
Net proceeds from options funding agreement 16 3,691,070 -
Repayment of options funding agreement 15 (1,952,365) -
Exercise of options 16 3,551,098 1,702,284
Finance leases 12 (48,475) -
Net cash from financing activities 22,115,804 11,638,880
Net decrease in cash and cash equivalents 5,211,348 855,853
Cash and cash equivalents, beginning of year 11,276,307 10,706,700
Effects of exchange rate changes on cash
and cash equivalents (16,837) (286,246)
Cash and cash equivalents, end of the year 10 16,470,818 11,276,307
The above Consolidated statement of cash flows should be read in conjunction
with the Notes to the consolidated financial statements.
Basis of Preparation
This section of the financial report sets out the Group's (being Aura Energy
Limited and its controlled entities) accounting policies that relate to the
financial statements as a whole. Where an accounting policy is specific to one
Note, the policy is described in the Note to which it relates.
The Notes include information which is required to understand the financial
statements and is material and relevant to the operations and the financial
position and performance of the Group.
Information is considered relevant and material if:
• The amount is significant due to its size or nature.
• The amount is important in understanding the results of the
Group.
• It helps to explain the impact of significant changes in the
Group's business.
• It relates to an aspect of the Group's operations that is
important to its future performance.
1. Corporate Information
The financial statements of Aura Energy Limited for the year ended 30 June
2024 was authorised for issue, in accordance with a resolution of directors,
on 27 September 2024. The directors have the power to amend and reissue the
financial statements.
Aura Energy Limited is a public company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business
is:
Level 30
35 Collins Street
Melbourne VIC 3000 AUSTRALIA
All press releases, financial reports and other information are available at
our Shareholders' Centre on our website: www.auraenergy.com.au
(http://www.auraenergy.com.au/)
The nature of the operations and principal activities are disclosed in the
Directors' Report
2. Reporting Entity
The financial statements are for the Group consisting of Aura Energy Limited
and its subsidiaries. A list of the Group's subsidiaries is provided at note
18.
3. Basis of preparation
These general purpose financial statements have been prepared in accordance
with the Corporations Act 2001 and Australian Accounting Standards, which
include Australian equivalents to International Financial Reporting Standards
('AIFRS'). Compliance with AIFRS ensures that the financial report, comprising
the financial statements and notes thereto, complies with International
Financial Reporting Standards ('IFRS').
The financial statements have been prepared under the historical cost
convention, except for, where applicable, the initial recognition of financial
instruments at fair value.
(a) Basis of consolidation
Subsidiaries are all entities over which the Group has control. The Group
controls an entity when the Group is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is
transferred to the Group. They are deconsolidated from the date that control
ceases.
The acquisition method of accounting is used to account for business
combinations by the Group.
Intercompany transactions, balances and unrealised gains on transactions
between Group companies are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the transferred
asset. Accounting policies of the subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
(b) Key estimates and judgements
Critical accounting estimates
In the process of applying the Group's accounting policies, management has
made a number of judgements and applied estimates of future events. The areas
involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are
disclosed in the following notes:
• Note 6: Income tax
• Note 9: Share-based payments
• Note 12: Right-of-use assets and lease liabilities
• Note 13: Exploration and evaluation assets
(c) Foreign currency translation
The financial statements are presented in Australian dollars, which is the
functional currency of the entities in the Group.
Foreign currency transactions
Foreign currency transactions are translated into the functional currency
using the exchange rates at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are generally recognised in profit or
loss.
Functional operations
The assets and liabilities of foreign operations are translated into
Australian dollars using the exchange rates at the reporting date. The
revenues and expenses of foreign operations are translated into Australian
dollars using the average exchange rates, which approximate the rates at the
dates of the transactions, for the period. All resulting foreign exchange
differences are recognised in other comprehensive income through the foreign
currency reserve in equity.
The foreign currency reserve is recognised in profit or loss when the foreign
operation or net investment is disposed of.
(d) Going concern
The financial statements have been prepared on a going concern basis, which
contemplates the continuity of normal business activity and the realisation of
assets and the settlement of liabilities in the ordinary course of business.
The Group incurred a loss for the year of $6,610,019 (2023: $6,795,514) and a
net cash outflow from operating activities of $4,836,203 (2023: $3,520,813)
and investing activities of $12,068,253 (2023: $7,262,214).
As at 30 June 2024, the Group had surplus working capital of $13,044,058
(2023: $9,803,992).
Based upon cash flow forecasts and other factors referred to above, the
directors are satisfied that the going concern basis of preparation is
appropriate, including the meeting of exploration commitments. In addition,
given the Group's history of raising funds to date, the directors are
confident of the Group's ability to raise additional funds as and when they
are required.
Performance for the Year
This section provides additional information about those individual line items
in the Statement of Comprehensive Income that the directors consider most
relevant in the context of the operations of the entity
4. Segment Information
Operating segments are reported in a manner consistent with the internal
reporting provided to the chief operating decision maker (CODM). The CODM is
responsible for allocating resources and assessing performance of the
operating segments and has been identified as the Board.
The Group's operating segments are as follows:
• Uranium - Project consists of the Tiris Uranium Project located
in Mauritania of which Aura holds an 85% interest in the Project.
• Vanadium - Project consists of the Häggån Polymetallic Project
is located in Berg municipality in the province of Jämtland in central
Sweden. Aura holds a 100% direct interest in the deposit.
• Gold and Base Metals - Project consists of the Tasiast South
Gold and Base Metals Project located in Mauritania. The Project comprises of
three tenements, including the Nomads Joint Venture, where Aura has a right to
earn a 70% interest.
• Corporate - corporate expenses and share-based payments are
examples of items that are not allocated to operating segments as they are not
considered part of the core operation of any segment.
The segment information for the reportable segments for the year ended 30 June
2024 and 30 June 2023 is as follows:
Uranium Vanadium Gold
and Corporate
Total
$
$
base
$ $ metals
$
30 June 2024
Total income - - - 224,009 224,009
Operating expenses (113,576) (115,969) (510,977) (5,052,814) (5,793,336)
Share based payments - - - (585,368) (585,368)
Finance costs (19,505) - - (360,107) (379,612)
Other expenses (11,656) (687) (63,369) - (75,712)
Loss for the year (144,737) (116,656) (574,346) (5,774,280) (6,610,019)
30 June 2024
30,257,419 9,386,889 2,623,463 16,606,634 58,874,405
Total segment assets
Total current liabilities 401,952 342,730 33,967 3,027,339 3,805,988
30 June 2023
Total income - - - 11,076 11,076
Operating expenses (687) (88,411) (368,840) (3,938,966) (4,396,904)
Finance (costs) income (763,833) (544,760) - 1,371,485 62,892
Share based payments - - - (2,472,578) (2,472,578)
Loss for the year (764,520) (633,171) (368,840) (5,028,983) (6,795,514)
30 June 2023
Total segment assets 20,155,913 7,092,387 2,698,059 11,424,780 41,371,139
Total current liabilities - - - 1,568,844 1,568,844
5. Other Income and Expenses
(a) Corporate and administrative expenses
30 Jun 2024 30 Jun 2023
$
$
Accounting and audit (62,534) (591,372)
Computers and communication (134,073) (110,207)
Consultants & Advisors (960,718) (1,096,284)
Depreciation (148,131) (1,856)
General & Administrative (164,012) (219,647)
Insurance (132,704) (185,809)
Investor relations (413,693) (181,515)
Legal (744,826) (70,508)
Listing and share registry (212,945) (216,448)
Travel and marketing (559,621) (510,578)
Total Corporate and administrative expenses (3,533,257) (3,184,224)
(b) Net finance income/(expenses)
30 Jun 2024 30 Jun 2023
$
$
Interest income 274,141 64,233
Interest expense - lease liabilities (19,505) -
Amortisation of options funding loan agreements (360,110) -
Net finance income/(expenses) (105,474) 64,233
6. Income tax
(a) Numerical reconciliation of income tax expense and tax at the statutory
rate
30 Jun 2024 30 Jun 2023
$
$
Loss before tax (6,610,019) (6,795,514)
Income tax benefit using the statutory tax rate of 25% (2023:25%) (1,652,505) (1,698,879)
Tax effect of amounts which are not deductible (taxable) in
calculating taxable income:
Share-based payments 146,342 618,145
Unrealised currency (gains)/losses 10,688 330,730
Superannuation liability 11,212 284
Employee leave obligations 3,437 24,295
Other 12,922 76,383
Subtotal (1,467,904) (649,042)
Difference in overseas tax rates 2,767 7,410
Current and deferred tax expense not recognised 1,465,137 641,632
Income tax benefit - -
(b) Tax losses
30 Jun 2024 30 Jun 2023
$
$
Unrecognised tax losses 30,011,869 24,929,202
Potential tax benefit @ 25% (2023: 25%)
7,502,967 6,232,301
The potential tax benefit for tax losses has not been recognised in the
statement of financial position. These tax losses can only be utilised in the
future if the continuity of ownership test is passed, or failing that, the
same business test is passed.
Accounting Policy
The income tax expense or benefit for the period is the tax payable or
receivable on the current period's taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and to unused tax
losses.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantially enacted at the end of the reporting period in the
country where the company's subsidiaries operate and generate taxable income.
Provisions are established where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Current tax liabilities for the current period and prior periods are measured
at the amount expected to be recovered from or paid to taxation authorities.
The tax rates and tax laws used to compute the amount are those that are
enacted or substantially enacted by the balance date.
Deferred income tax is provided on all temporary differences at reporting date
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Income taxes relating to items recognised directly in equity are recognised in
equity and not profit or loss. Deferred tax assets and deferred tax
liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes
relate to the same taxable entity and the same taxation authority.
Significant Judgements and Estimates
Deferred tax assets are recognised for deductible temporary differences and
carry forward losses only if the Group considers it is probable that future
taxable amounts will be available to utilise those temporary differences and
losses.
Balances disclosed in the financial statements and the notes thereto, related
to taxation, are based on the best estimates of directors. These estimates
take into account both the financial performance and position of the Group as
they pertain to current income taxation legislation, and the directors
understanding thereof. No adjustment has been made for pending or future
taxation legislation. The current income tax position represents the
directors' best estimate, pending an assessment by tax authorities in relevant
jurisdictions.
7. Loss per share
The calculation of basic and diluted loss per share at 30 June 2024 was based
on the loss attributable to ordinary shareholders of $6,589,231 (2023:
$6,492,350).
The weighted average number of ordinary shares outstanding during the
financial year comprised the following:
30 Jun 2024 30 Jun 2023
$
$
Ordinary shares on issue at beginning of year Effect of share issues 545,890,060 428,181,481
Weighted average number of ordinary shares on issue at the end of the year 107,305,924 117,708,579
Basic and diluted loss per share (cents) (1)
653,195,984 545,890,060
(1.01) (1.19)
(1) Due to the fact that the Group made a loss, potential ordinary shares from
the exercise of options and performance rights have been excluded due to their
anti-dilutive effect.
Employee Benefits
This section of the Notes includes information that must be disclosed to
comply with accounting standards and other pronouncements relating to the
remuneration of employees and consultants of the Group, but that is not
immediately related to individual line items in the Financial Statements.
8. Provision for employee benefits
30 Jun 2024 30 Jun 2023
$
$
Annual leave 166,841 121,021
Long service leave 5,870 3,594
172,711 124,615
9. Share based payment expenses
30 Jun 2024 30 Jun 2023
$
$
Loan funded shares - vesting 1,209,397 2,472,578
Loan funded shares - lapsed (624,029) -
585,368 2,472,578
(a) Loan Funded Shares
Aura Energy Limited operates a loan funded equity scheme for directors,
executives and senior consultants of the Group. In accordance with the
provisions of the plan, as approved by shareholders at a previous annual
general meeting, directors, executives and senior consultants may be granted
loan funded securities.
Each loan funded share converts into one ordinary share of the Group on issue.
The loan funded shares rank equally with all other fully paid ordinary shares
on issue in the capital of the Group. The number of loan funded shares granted
is approved by shareholders at the annual general meeting of the Group.
No Loan Funded Shares were granted during the year ended 30 June 2024.
2021 Loan Funded Shares
At the AGM on 21 December 2021, the shareholders approved the issue of loan
funded shares to directors, executives and senior consultants (2021 Loan
Funded Shares). The 2021 Loan Funded Shares were issued at
$0.25 and have the following vesting conditions:
Tranche
Vesting conditions
Tranches 1, 2 and 3 • Continuous employment/engagement with the Group
Tranche 1 • when the daily volume weighted average price (VWAP) of the
Group's Shares meets the share price performance hurdle of $0.50 on 10 days on
any 20 sequential trading days; and
• eligible to vest 12 months after grant date;
Tranche 2 • when the daily VWAP of the Group's shares meets the share price
performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and
• eligible to vest 24 months after grant date
Tranche 3 • when the daily VWAP of the Group's shares meets the share price
performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and
• eligible to vest 36 months after grant date.
The loan funded shares granted have been valued using a Monte Carlo
Simulation, taking into account the terms and conditions upon which the loan
funded shares were granted. The valuation of 2021 Loan Funded Shares for Key
Management Personnel and consultants is summarised as follows:
Key Management Personnel Tranche 1 Tranche 2 Tranche 3
Share price hurdle $0.50 $0.75 $1.00
Share price at grant date $0.245 $0.245 $0.245
Grant date 21 December 2021 21 December 2021 21 December 2021
Expected volatility 145.6% 145.6% 145.6%
Expiry date 21 December 2026 21 December 2026 21 December 2026
Expected dividends - - -
Risk Free interest rate 1.35% 1.35% 1.35%
Value per loan share $0.2313 $0.2273 $0.1987
Number of loan shares 2,800,000 4,200,000 7,000,000
Consultants Tranche 1 Tranche 2 Tranche 3
Share price hurdle $0.50 $0.75 $1.00
Share price at grant date $0.245 $0.245 $0.245
Grant date 21 December 2021 21 December 2021 21 December 2021
Expected volatility 145.6% 145.6% 145.6%
Expiry date 21 December 2026 21 December 2026 21 December 2026
Expected dividends - - -
Risk Free interest rate 1.35% 1.35% 1.35%
Value per loan share $0.2313 $0.2273 $0.1987
Number of loan shares 1,200,000 1,800,000 3,000,000
As of 30 June 2024, the conditional rights to securities associated with
4,000,000 of the 2021 Loan Funded Shares lapsed, as the conditions have not
been met or can no longer be fulfilled.
2022 Loan Funded Shares
At the AGM on 29 November 2022 the shareholders approved the issue of loan
funded shares to directors (2022 Loan Funded Shares). The 2022 Loan Funded
Shares were issued at $0.30 and have the following vesting conditions:
Tranche
Vesting conditions
Tranches 1, 2 and 3 • Continuous employment/engagement with the Group
Tranche 1 • when the daily volume weighted average price (VWAP) of the
Group's Shares meets the share price performance hurdle of $0.50 on 10 days on
any 20 sequential trading days; and
• eligible to vest 12 months after grant date;
Tranche 2 • when the daily VWAP of the Group's shares meets the share price
performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and
• eligible to vest 24 months after grant date
Tranche 3 • when the daily VWAP of the Group's shares meets the share price
performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and
• eligible to vest 36 months after grant date.
The loan funded shares granted have been valued using a Monte Carlo
Simulation, taking into account the terms and conditions upon which the loan
funded shares were granted. The valuation of 2022 Loan Funded Shares is
summarised as follows:
Tranche 1 Tranche 2 Tranche 3
Share price hurdle $0.50 $0.75 $1.00
Share price at grant date $0.25 $0.25 $0.25
Grant date 29 November 2022 29 November 2022 29 November 2022
Expected volatility 82% 82% 82%
Expiry date 29 November 2027 29 November 2027 29 November 2027
Expected dividends - - -
Risk Free interest rate 3.18% 3.18% 3.24%
Value per loan share $0.0765 $0.0874 $0.0991
Number of loan shares 8,800,000 6,600,000 6,600,000
As of 30 June 2024, the conditional rights to securities associated with
16,000,000 of the 2022 Loan Funded Shares lapsed, as the conditions have not
been met or can no longer be fulfilled.
Assets
This section provides additional information about those individual line items
in the Statement of Financial Position that the directors consider most
relevant in the context of the operations of the entity.
10. Cash and cash equivalents
30 Jun 2024 30 Jun 2023
$
$
Cash and cash equivalents 16,470,818 11,276,307
16,470,818 11,276,307
11. Trade and other receivables
30 Jun 2024 30 Jun 2023
$
$
Current
Value Added Tax receivables 88,196 63,203
Sundry debtors Prepayments Rental deposit 56,543 - 28,340
Total other receivables 76,486 1,392
1,416
Non-current
Security deposits
134,445 29,732
57,401 50,380
12. Right of use assets and lease liabilities
30 Jun 2024 30 Jun 2023
$
$
Right of use assets Opening balance Additions Depreciation Exchange
differences Closing balance
- 302,429 -
(86,154) -
Lease liabilities Opening balance Initial recognition Interest
2,145 -
Principal
-
Exchange differences
Disclosed as:
Current liability Non-current liability
Amounts recognised in the statement of comprehensive loss
Depreciation charge of right-in-use assets Interest expense
218,421 -
- 302,429 -
19,505 -
(48,471) -
(11,728) -
-
261,735 -
111,018 -
150,717 -
261,735 -
86,154
19,505 -
105,659 -
The Group entered into an office lease in Mauritania on 14 September 2023 with
a 3 year term.
Accounting Policy
Right of use assets
A right-of-use asset is recognised at the commencement date of a lease. The
right-of-use asset is measured at cost, which comprises the initial amount of
the lease liability, adjusted for, as applicable, any lease payments made at
or before the commencement date net of any lease incentives received, any
initial direct costs incurred.
Right-of-use assets are depreciated on a straight-line basis over the
unexpired period of the lease or the estimated useful life of the asset,
whichever is the shorter. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
Leases
With the exception of short-term leases and leases of low value underlying
assets, each lease is reflected on the statement of financial position as a
right-of-use asset and a lease liability.
Where a lease has an extension option the Group has used its judgement to
determine whether or not an option would be reasonably certain to be
exercised. The Group considers all facts and circumstances including any
significant improvements, current stage of projects, location, and their past
practice to help them determine the lease term. The Group have included all
current extension options in determining the lease term. The lease has a term
of 3 years.
Lease liabilities were measured at the present value of the remaining lease
payments, discounted using the lessee's incremental borrowing rate at
commencement date of the lease.
The weighted average incremental borrowing rate applied to lease liabilities
was 8%
In the consolidated statement of cash flows, the Group has recognised cash
payments for the principal portion of the lease liability within financing
activities, cash payments for the interest portion of the lease liability as
interest paid within operating activities and short-term lease payments and
payments for lease of low-value assets within operating activities
Short-term leases
The Group has elected not to recognise a right-of-use asset and corresponding
lease liability for short-term leases with terms of 12 months or less and
leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
13. Exploration and evaluation assets
30 Jun 2024 30 Jun 2023
$
$
Opening net book value 29,946,359 24,020,873
Expenditure capitalised during the half year 11,990,025 7,113,062
Exchange differences (41,669) (1,187,576)
Closing net book value 41,894,715 29,946,359
The expenditure above relates principally to exploration and evaluation
activities. The carrying value as at 30 June 2024 represents the Directors'
view of the recoverable value of these assets. The recoverability of the
carrying amount is dependent on successful development and commercial
exploitation (or alternatively, through sale of the respective interest).
The Group's exploration properties may be subjected to claim(s) under Native
Title (or jurisdictional equivalent), or contain sacred sites, or sites of
significance to the Indigenous people of Sweden and Mauritania. As a result,
exploration properties or areas within the tenements may be subject to
exploration restrictions, mining restrictions and/or claims for compensation.
At this time, it is not possible to quantify whether such claims exist, or the
quantum of such claims.
Significant Judgements and Estimates
Exploration and evaluation costs are carried forward 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
extracted, 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 Group assesses impairment at each reporting date by evaluating conditions
specific to the Group that may lead to impairment of assets. Where an
impairment trigger exists, the recoverable amount of the asset is determined.
Oum Ferkik - exploitation application
The Company has lodged and is awaiting granting of an exploitation application
for its Oum Ferkik tenement. It has received confirmation from the Ministry of
Petroleum, Mines and Energy that the tenement application has been registered,
that all fees due have been paid and in good standing and that the application
is expected to be issued in due course. On this basis, the Directors consider
that the exploration and evaluation costs relating to tenement not impaired.
As of 30 June 2024, the carrying value of the exploration and evaluation
assets for the Oum Ferkik tenement was $277,779 (30 June 2023:
$120,721).
Häggån K no 1 - exploitation application
On 5 September 2024, the Company announced that it had lodged the Exploitation
permit application for Häggån K no 1 and a new exploration application
lodged for Häggån no 2, covering the areas of the original Häggån no 1
concession, with the Swedish Mining Inspectorate. If granted, the Exploitation
Permit will secure the tenure over the Häggån Project and be valid for 25
years, pending approval from the Swedish government. While the Swedish Mining
Inspectorate considers the Häggån K no 1 Exploitation Permit application the
Häggån no 1 exploration license will remain valid and after the
determination the Häggån no 2 exploration license application may be
considered. Refer to note 26 for more details.
Environment issues
Balances disclosed in the financial statements and notes thereto are not
adjusted for any pending or enacted environmental legislation, and the
directors understanding thereof. At the current stage of the Group's
development and its current environmental impact, the directors believe such
treatment is reasonable and appropriate.
Equity and Liabilities
This section provides additional information about those individual line items
in the Statement of Financial Position that the directors consider most
relevant in the context of the operations of the entity.
14. Trade and other payables
30 Jun 2024 30 Jun 2023
$
$
Trade payables 1,174,682 120,574
Accrued expenses 906,347 1,279,152
Payroll tax and other statutory liabilities 82,549 42,362
Other payables - 1,474
2,163,578 1,443,562
15. Short term loans
30 Jun 2024 30 Jun 2023
$
$
Options funding loans at amortised cost, net of borrowing costs 1,202,004 -
Options funding loans
On 25 January 2024, the Company announced that it had entered into Option
Funding Agreements with certain investors, who prepaid $4.3 million,
equivalent to the exercise monies for all remaining options expiring on 30
June 2024. The loan maturity date was 31 July 2024 and was secured over
proceeds from the exercise of the outstanding options.
The funds were repaid with proceeds from option exercise monies from current
Option holders. The Options were listed and had an expiry date of 30 June 2024
and an exercise price of $0.052 each, and on issue converted into ordinary
fully paid shares in the Company.
Additionally, the Company entered into an underwriting agreement with PAC
Partners Securities Pty Limited for 20 million options. The Underwriter will
receive shares equal to the number of unexercised Underwritten Options by the
Expiry Date "Shortfall Shares".
As of 30 June 2024, 1,543,958 options remained unexercised, with an options
funding loan balance of approximately A$80,000. On 10 July 2024, the Company
issued the shortfall shares to the underwriter at the option exercise price of
A$0.052 each. The options funding loans were fully repaid with proceeds
received from options holders and the issue of shortfall shares to the
underwriters.
16. Issued capital
30 Jun 2024 30 Jun 2023 30 Jun 2024 30 Jun 2023
No. of shares No. of shares $
$
Ordinary shares - fully paid 787,089,409 616,484,204 104,536,636 81,832,301
(a) Movement in ordinary shares on issue:
Date No. of shares $
Opening balance 1 Jul 2022 503,825,028 69,357,543
Shares issued at $0.052 on exercise of options 19-Jul-22 7,692 400
Shares issued at $0.052 in lieu payment of services 19-Jul-22 1,500,000 78,000
Shares issued at $0.052 in lieu payment of services 19-Jul-22 660,000 165,000
Shares issued at $0.052 on exercise of options 12-Sep-22 385,865 20,065
Shares issued at $0.052 on exercise of options 30-Sep-22 5,600,583 291,230
Shares issued at $0.052 on exercise of options 04-Oct-22 6,999,930 363,996
Shares issued at $0.052 on exercise of options 14-Oct-22 11,569,585 601,618
Shares issued at $0.052 on exercise of options 04-Nov-22 869,563 45,217
Shares issued at $0.052 on exercise of options 18-Nov-22 505,000 26,260
Directors loan funded shares issued 21-Dec-22 22,000,000 -
Shares issued at $0.052 on exercise of options 07-Dec-22 707,641 36,797
Shares issued at $0.052 on exercise of options 13-Jan-23 247,594 12,875
Shares issued at $0.052 on exercise of options 13-Jan-23 1,923,076 200,000
Shares issued at $0.052 on exercise of options 03-Feb-23 466,823 24,275
Shares issued at $0.052 on exercise of options 20-Feb-23 1,183,128 61,523
Shares issued at $0.052 on exercise of options 06-Mar-23 13,332 693
Shares issued at $0.052 on exercise of options 20-Mar-23 332,692 17,300
Shares issued pursuant to Private Placement 10-May-23 54,054,055 10,000,000
Shares issued at $0.052 on exercise of options 25-May-23 847 45
Shares issued at $0.052 on exercise of options 02-Jun-23 7,499 390
Shares issued pursuant to Share Purchase Plan (SPP) 20-Jun-23 3,624,271 670,490
Transfer from reserves on exercise of options - 592,478
Transaction costs arising on share issues - (733,894)
Balance at 30 June 2023 616,484,204 81,832,301
Date No. of shares $
Opening balance 1 Jul 2023 616,484,204 81,832,301
Shares issued at $0.052 on exercise of options 27-Jul-23 352,000 18,304
Shares issued at $0.052 on exercise of options 17-Aug-23 302,000 15,704
Shares issued at $0.052 on exercise of options 31-Aug-23 387,000 20,124
Shares issued at $0.052 on exercise of options 18-Sep-23 249,687 12,984
Shares issued at $0.052 on exercise of options 19-Sep-23 100,000 5,200
Shares issued at $0.052 on exercise of options 19-Sep-23 300,000 15,600
Shares issued at $0.052 on exercise of options 26-Sep-23 421,153 21,900
Date No. of shares $
Shares issued at $0.052 on exercise of options 10-Oct-23 70,010 3,641
Shares issued at $0.052 on exercise of options 10-Oct-23 2,476 129
Shares issued at $0.052 on exercise of options 10-Oct-23 274,000 14,248
Shares issued at $0.052 on exercise of options 13-Oct-23 100,000 5,200
Shares issued at $0.052 on exercise of options 30-Oct-23 40,000 2,080
Shares issued at $0.052 on exercise of options 30-Oct-23 318,000 16,536
Shares issued at $0.052 on exercise of options 30-Oct-23 46,733 2,430
Shares issued at $0.052 on exercise of options 08-Nov-23 26,666 1,387
Shares issued at $0.052 on exercise of options 08-Nov-23 30,000 1,560
Shares issued at $0.052 on exercise of options 16-Nov-23 1,163,034 60,478
Shares issued at $0.052 on exercise of options 16-Nov-23 116,666 6,067
Shares issued at $0.052 on exercise of options 21-Nov-23 275,000 14,300
Shares issued at $0.052 on exercise of options 21-Nov-23 8,461 440
Shares issued at $0.052 on exercise of options 13-Dec-23 250,000 13,000
Shares issued at $0.052 on exercise of options 13-Dec-23 2,166 113
Shares issued at $0.052 on exercise of options 15-Dec-23 1,465,098 76,185
Shares issued at $0.052 on exercise of options 21-Dec-23 360,000 18,720
Shares issued at $0.052 on exercise of options 03-Jan-24 46,153 2,400
Shares issued at $0.052 on exercise of options 09-Jan-24 250,000 13,000
Cancellation of Loan Funded Shares 09-Jan-24 (2,000,000) -
Shares issued at $0.052 on exercise of options 09-Jan-24 16,666 867
Shares issued at $0.052 on exercise of options 12-Jan-24 200,000 10,400
Shares issued at $0.052 on exercise of options 22-Jan-24 265,000 13,780
Shares issued at $0.052 on exercise of options 22-Jan-24 286,647 14,906
Shares issued at $0.052 on exercise of options 22-Jan-24 445 23
Shares issued at $0.052 on exercise of options 05-Feb-24 123,498 6,422
Shares issued at $0.052 on exercise of options 05-Feb-24 43,300 2,252
Shares issued at $0.052 on exercise of options 09-Feb-24 285,000 14,820
Shares issued at $0.052 on exercise of options 09-Feb-24 3,409 177
Shares issued at $0.052 on exercise of options 09-Feb-24 615 32
Shares issued at $0.052 on exercise of options 09-Feb-24 10,000 520
Shares issued at $0.052 on exercise of options 09-Feb-24 6,666 347
Shares issued at $0.052 on exercise of options 19-Feb-24 4,688,893 243,822
Shares issued at $0.052 on exercise of options 01-Mar-24 1,923,077 100,000
Cancellation of Loan Funded Shares 01-Mar-24 (2,000,000) -
Shares issued at $0.052 on exercise of options 06-Mar-24 3,190,946 165,929
Shares issued at $0.052 on exercise of options 20-Mar-24 668,624 34,768
Placement of shares 26-Mar-24 89,668,896 16,140,401
Shares issued at $0.052 on exercise of options 08-Apr-24 322,392 16,764
Shares issued at $0.052 on exercise of options 09-Apr-24 6,000,000 312,000
Shares issued at $0.052 on exercise of options 17-Apr-24 371,896 19,339
Shares issued at $0.052 on exercise of options 30-Apr-24 1,019,401 53,009
Shares issued at $0.052 on exercise of options 09-May-24 11,615,666 604,015
Shares issued at $0.052 on exercise of options 22-May-24 614,109 31,934
Shares issued at $0.052 on exercise of options 29-May-24 384,616 20,000
Shares issued at $0.052 on exercise of options 29-May-24 1,696,112 88,198
Issue of SPP Shares 30-May-24 11,111,063 1,999,991
Issue of Placement Tranche 2 Shares 31-May-24 722,222 130,000
Date No. of shares $
Shares issued at $0.052 on exercise of options 13-Jun-24 5,334,080 277,372
Shares issued at $0.052 on exercise of options 17-Jun-24 3,929,096 204,313
Shares issued at $0.052 on exercise of options 21-Jun-24 6,871,103 357,297
Shares issued at $0.052 on exercise of options 24-Jun-24 8,944,850 465,132
Shares issued at $0.052 on exercise of options 27-Jun-24 16,174,721 841,085
Cancellation of Loan Funded Shares 30-Jun-24 (16,000,000) -
Shares issued at $0.052 on exercise of options 30-Jun-24 7,155,893 372,106
Transfer from reserves on exercise of options 1,336,545
Transaction costs arising on share issues (1,535,961)
Closing balance 30 June 2024 787,089,409 104,536,636
Ordinary shares are classified as equity and incremental costs directly
attributable to the issue of new shares are shown in equity as a deduction,
net of tax, from the proceeds.
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the
proceeds on the winding up of the Company in proportion to the number of and
amounts paid on the shares held. The ordinary shares have no par value and the
Company does not have a limited amount of authorised capital. On a show of
hands every member present at a meeting in person or by proxy shall have one
vote and upon a poll each share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
(b) Options
Information relating to options issued, exercised, lapsed and outstanding
during and at the end of the current and comparative financial year is set out
below:
Vested and exercisable at the end of the
Granted during the period (1) Expired during the Exercised during the Balance at the end of the period
Grant date Expiry Balance at start of year year period period
date
Exercise price
30 June 2024
28-May-21 30-Jun-24 $0.052 384,616 - - (384,616) - -
15-Nov-21 30-Jun-24 $0.052 90,262,366 - (1,543,958) (88,718,408) - -
30-May-24 30-May-26 $0.300 - 76,126,478 - - 76,126,478 76,126,478
90,646,982 76,126,478 (1,543,958) (89,103,024) 76,126,478 76,126,478
Weighted average exercise price $ 0.05 $ 0.30 $ 0.30
Weighted average remaining contractual life: 1.9 years
30 June 2023
17-Mar-21 31-Mar-23 $0.104 3,039,528 - (1,116,452) (1,923,076) - -
17-Mar-21 30-Jun-24 $0.052 384,616 - - - 384,616 384,616
28-May-21 30-Jun-24 $0.052 8,038,461 - - (8,038,461) - -
15-Nov-21 30-Jun-24 $0.052
122,584,284 - (1,116,452) (30,820,850) 90,646,982 90,646,982
Weighted average exercise price $ 0.05 $ 0.05 $ 0.05
Weighted average remaining contractual life: 1.0 years
1. These options were exercisable immediately on grant date.
17. Other Reserves
Share based Foreign currency Total other reserves
payments translation
$
$
$
At 1 July 2022 3,146,839 799,986 3,946,825
Currency translation differences - (1,362,820) (1,362,820)
Other comprehensive income - (1,362,820) (1,362,820)
Transactions with owners in their capacity as owners
Transfer from reserves on exercise of options (592,477) - (592,477)
Share based payments 2,472,578 - 2,472,578
At 30 June 2023 5,026,940 (562,834) 4,464,106
At 1 July 2023 5,026,940 (562,834) 4,464,106
Currency translation differences - (67,763) (67,763)
Other comprehensive income - (67,763) (67,763)
Transactions with owners in their capacity as owners
Transfer from reserves on exercise of options (1,336,545) - (1,336,545)
Share based payments 585,368 - 585,368
At 30 June 2024 4,275,763 (630,597) 3,645,166
Share-based payments
The share-based payment reserve records items recognised as expenses on
valuation of share options and loan funded shares issued to key management
personnel, other employees and eligible contractors. Refer to note 9 for more
details.
Foreign currency translation
Exchange differences arising on translation of the foreign controlled entity
are recognised in other comprehensive income as described in note and
accumulated in a separate reserve within equity. The cumulative amount is
reclassified to profit or loss when the net investment is disposed of.
Financial Instruments
This section of the Notes discusses the Group's exposure to various risks and
shows how these could affect the Group's financial position and performance.
(a) Capital risk management
The Board policy is to maintain a capital base to maintain investor, creditor
and market confidence and to sustain future development of the business.
Capital consists of ordinary shares and retained earnings (or accumulated
losses) as disclosed in notes 16 and 17. The Board manages the capital of the
Group to ensure that the Group can fund its operations and continue as a going
concern.
There are no externally imposed capital requirements
(b) Market risk
Market risk is the risk that changes in market prices such as foreign exchange
rates, equity prices and interest rates will affect the Group's income or
value of its holdings of financial instruments.
(c) Foreign exchange risk
The Group is exposed to the financial risk related to the fluctuation of
foreign exchange rates against the Group's functional currency, which is the
Australian dollar ("AUD"). The Group operates internationally and is exposed
to foreign exchange risk arising from various currency exposures, primarily
with respect to the Mauritanian Ouguiya ("MRU"), Swedish Krona ("SEK"), Euro
("EUR") and Great British Pounds ("GBP").
Foreign exchange risk arises from commercial transactions and recognised
assets and liabilities denominated in a currency that is not the entity's
functional currency.
The risk is measured using sensitivity analysis and cash flow forecasting. The
Group is also exposed to foreign exchange risk arising from the translation of
its foreign operations.
The Group's exposure to foreign currency risk at the end of the reporting
year, expressed in Australian dollar, was as follows:
USD MRU
GBP
SEK
EUR CAD
$
$
$
$
$ $
At 30 June 2024
Cash and cash equivalents 30,987 40,548 179,562 29,030 458,117 10,965
Trade payables 215,709 125,005 129,712 192,926 - -
At 30 June 2023
Cash and cash equivalents 50,135 49,785 8,552 79,905 60,554 -
Trade payables 6,021 - - 11,130 - -
The Group has conducted a sensitivity analysis of its exposure to foreign
currency risk. The sensitivity analysis is conducted on a currency-by-currency
basis using the sensitivity analysis variable, which has been set as 10%
change in the respective exchange rates for the year ended 30 June 2024,
keeping all the other variables constant.
30 Jun 2024 30 Jun 2023
Estimated impact on profit before tax for the year ending $
$
USD/AUD exchange rate - increase 10%* (18,472) 4,411
MRU/AUD exchange rate - increase 10%* (8,446) 4,979
GBP/AUD exchange rate - increase 10%* 4,985 855
SEK/AUD exchange rate - increase 10%* (16,390) 6,878
EUR/AUD exchange rate - increase 10%* 45,812 6,055
CAD/AUD exchange rate - increase 10%* (1,096) -
(d) Interest rate risk
Exposure to interest rate risk arises on cash and term deposits recognised at
reporting date whereby a future change in interest rates will affect future
cash flows or the fair value of fixed rate financial instruments.
The Group's exposure to interest rates primarily relates to its cash and cash
equivalents. The Group has no interest bearing loans or borrowings.
At reporting date, the Group had the following exposure to variable interest
rate risk:
30 Jun 2024 30 Jun 2023
$
$
Cash and cash equivalents 2,970,818 11,238,716
The following sensitivity analysis is based on the interest rate risk exposure
in existence at the reporting date. The 1% sensitivity (2023: 1%) is based on
reasonably possible changes over a financial year, using the observed range of
actual historical rates for the preceding five year period.
At 30 June 2024, an increase/(decrease) of 100 basis points in interest rates
on cash and cash equivalents over the reporting period would have
increased/(decreased) the Group's loss and equity by $2,971 (2023: $11,239).
The analysis assumes that all other variables remain constant.
(e) Credit risk
Credit risk is the risk of potential loss to the Group if a counterparty to a
financial instrument fails to meet its contractual obligations. The Group's
credit risk is primarily attributable to its liquid financial assets,
including cash, receivables, and balances receivable from the government.
The group limits its exposure to credit risk in relation to cash and cash
equivalents and other financial assets by investing surplus funds in banks and
financial institutions with high credit ratings.
(f) Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter
difficulty in settling its debts or otherwise meeting its obligations related
to financial liabilities.
The Group manages liquidity risk by monitoring forecast cash flows, only
investing surplus cash with major financial institutions; and comparing the
maturity profile of financial liabilities with the realisation profile of
financial assets.
The Board meets on a regular basis to analyse financial risk exposure and
evaluate treasury management strategies in the context of the most recent
economic conditions and forecasts. The Board's overall risk management
strategy seeks to assist the Group in managing its cash flows.
Financial liabilities are expected to be settled on the following basis:
Weighted Less than
Between
Between
Over Total Carrying
average 1
year 1 and 2 2 and
5 5 years contractual amount of interest
rate
$
years
years
$
flows
liabilities
%
$
$
$ $
As at 30 June 2024
Payables - 2,163,578 - - - 2,163,578 2,163,578
Short term loans - 1,202,004 - - - 1,202,004 1,202,004
Lease liabilities 8.0% 127,499 157,499 - - 284,998 261,735
3,493,081 157,499 - - 3,650,580 3,627,317
As at 30 June 2023
Trade and other payables - 1,310,087 - - - 1,310,087 1,310,087
Lease liabilities - - - - - - -
1,310,087 - - - 1,310,087 1,310,087
The directors have assessed that the fair value of cash and short-term
deposits, trade receivables, trade payables and other current liabilities
approximate their carrying amounts largely due to the short-term maturities of
these instruments.
Group Composition
This section of the Notes includes information that must be disclosed to
comply with accounting standards and other pronouncements relating to the
structure of the Group, but that is not immediately related to individual line
items in the Financial Statements.
18. List of subsidiaries
Ownership interest held
Place of business/country of incorporation 30 Jun 2024 30 Jun 2024
Name of entity %
%
Vanadis Battery Metals AB Sweden 100 100
Aura Energy Mauritania Pty Ltd Australia 100 100
Tiris Ressources SA Mauritania 85 85
Tiris International Mining Company Sarl Mauritania 100 100
Archaean Greenstone Gold Limited Australia 100 100
Tiris Zemmour Resources Pty Ltd Australia 100 100
North-East Resources Pty Ltd Australia 100 100
Mauritanian Services Suarl * Mauritania 100 -
*Mauritanian Services Suarl was incorporated on 13 September 2023.
19. Parent entity information
The financial information for the parent entity, Aura Energy Limited, has been
prepared on the same basis as the consolidated financial statements, except as
set out below.
(a) Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries, associates and joint venture entities are
accounted for at cost in the parent entity's financial statements.
(b) Guarantees entered into by the parent entity in relation to the debts of
its subsidiaries
There are cross guarantees given by Aura Energy Limited, Archaean Greenstone
Gold Limited, Aura Energy Mauritania Pty Ltd, Tiris Zemmour Resources Pty Ltd
and North East Resources Pty Ltd as described in note 20. No deficiencies of
assets exists in any of these companies.
(c) Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2024 (2023: nil)
other than those disclosed in note 24.
(d) Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment
as at 30 June 2024 (2023: nil).
30 Jun 2024 30 Jun 2023
$
$
Results of the parent entity
Loss after income tax (6,687,033) (8,167,014)
Total comprehensive loss (6,687,037) (8,167,014)
Statement of Financial Position
Current assets 16,541,346 11,178,873
Non-current assets 41,554,414 30,021,283
Total assets 58,095,760 41,200,156
Current liabilities 3,021,470 1,396,014
Non-current liabilities 5,870 1,847
Total Liabilities 3,027,340 1,397,861
Net assets 55,068,420 39,802,295
Equity
Contributed equity 104,536,636 81,832,301
Other equity 314,346 314,346
Reserves 4,275,762 5,026,940
Accumulated losses (54,058,324) (47,371,292)
Total equity 55,068,420 39,802,295
The accounting policies of the parent entity are consistent with those of the
Group.
20. Deed of cross guarantee
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016/785,
relief has been granted to these controlled entities of Aura Energy Limited
from the Corporations Act 2001 requirements for preparation, audit and
publication of accounts.
As a condition of the Class Order, Aura Energy Limited and the controlled
entities subject to the Class Order, entered into a deed of indemnity on 28
June 2024. The effect of the deed is that Aura Energy Limited has guaranteed
to pay any deficiency in the event of winding up of these controlled entities.
The controlled entities have also given a similar guarantee in the event that
Aura Energy Limited is wound up. By entering into the deed, these specific
wholly-owned entities have been relieved from the requirement to prepare a
financial report and directors' report under Class Order 2016/785 (as amended)
issued by the Australian Securities and Investments Commission.
The consolidated income statement of the entities that are members of the
'Deed' are as follows:
30 Jun 2024 30 Jun 2023
$
$
Consolidated Income Statement and Comprehensive Income
Expenses
FX gains (losses) (50,130) 35,260
Employee benefits (2,324,098) (1,244,278)
Corporate & administrative expenses (3,253,379) (3,153,203)
Other expenses (968,429) (3,433,936)
Share based payment expenses (585,368) (2,472,578)
Operating loss (7,181,404) (10,268,735)
Finance income 274,141 1,393,722
Finance expense (360,107) -
Net finance income/(expenses) (85,966) 1,393,722
Loss before income tax expense (7,267,370) (8,875,013)
Summary of movement in accumulated losses
Accumulated losses at beginning of year (48,393,586) (39,518,569)
Net profit (7,267,370) (8,875,017)
Accumulated losses at end of year (55,660,956) (48,393,586)
The consolidated statement of financial position of the entities that are
members of the 'Deed' are as follows:
30 Jun 2024 30 Jun 2023
$
$
Assets
Current assets
Cash and cash equivalents 16,376,303 11,115,217
Receivables 32,573 59,634
Other current assets 133,029 28,340
Total current assets 16,541,905 11,203,191
Non-current assets
Security deposits 54,878 11,983
Plant and equipment 10,410 5,158
Other financial assets 7,995,048 7,099,157
Exploration and evaluation 31,915,886 22,031,456
Total non-current assets 39,976,222 29,147,754
Total assets 56,518,127 40,350,945
Liabilities
Current liabilities
Trade and other payables 1,671,665 1,445,661
Employee benefits 166,841 121,021
Other current liabilities 5,960 667
Short term loans 1,202,004 -
Total current liabilities 3,046,470 1,567,349
Non-current liabilities
Employee benefits 5,869 3,594
Total non-current liabilities 5,869 3,594
Total liabilities 3,052,339 1,570,943
Net assets 53,465,788 38,780,002
Equity
Share capital 104,536,636 81,832,301
Other equity 314,346 314,346
Other reserves 4,275,762 5,026,940
Accumulated losses (55,660,956) (48,393,585)
Total equity 53,465,788 38,780,002
21. Reclassification of Tasiast South Project from disposal Group
During the financial year, the Board and Management assessed its near term
options for Archaean Greenstone Gold Limited ("Archaean"), Tiris International
Mining Company SARL ("TIMCO") and the Nomads Joint Venture ("Tasiast South
Project") in relation to maximising the commercial outcomes for its Tasiast
South Project in Mauritania. The Tasiast South Project was reclassified from a
held for sale and disposal group as it was determined that the criteria for
classification as a disposal group was no longer met. Exploration works on the
properties are ongoing.
Other Information
This section of the Notes includes other information that must be disclosed to
comply with accounting standards and other pronouncements, but that is not
immediately related to individual line items in the Financial Statements.
22. Commitments
Minimum exploration commitments
In order to maintain current rights of tenure to exploration tenements, the
Group is required to perform exploration work to meet the minimum expenditure
requirements specified by various governments. These amounts are subject to
negotiation when application for a lease application and renewal is made and
at other times. These amounts are not provided for in the financial report and
are payable.
30 Jun 2024 30 Jun 2023
$
$
Within one year 338,063 73,146
One to five years 676,126 -
Total exploration commitments 1,014,189 73,146
To the extent that expenditure commitments are not met, tenement areas may be
reduced and other arrangements made in negotiation with the relevant
government departments on renewal of tenements to defer expenditure
commitments or partially exempt the Company. Where the group decides to
relinquish a tenement, the commitment will be reduced accordingly.
23. Remuneration of auditors
30 Jun 2024 30 Jun 2023
$
$
Audit services - Hall Chadwick WA Audit Pty Ltd
Audit and review of the financial statements 56,943 54,763
Taxation services
Tax compliance services 2,695 14,101
Total remuneration of Hall Chadwick WA Audit Pty Ltd 59,638 68,864
24. Contingent liabilities
Tiris International Mining Company sarl
On 25 June 2016, the Group, Tiris International Mining Company sarl ("TIMCO")
and Sid Ahmed Mohamed Lemine Sidi Reyoug executed the Tasiast South sale and
purchase agreement. TIMCO holds tenements 2457 (Hadeibet Bellaa) and 2458
(Touerig Taet), granted by the Ministry of Petroleum, Energy and Mines.
Under the terms and conditions of the agreement, if the Group proves up an
'Indicated Resource' greater than one million ounces of gold, it will be
required to pay Sid Ahmed Mohamed US$250,000 and, on commencement of
production, US$5/ounce of gold and a 0.4% net sales revenue royalty on other
commodities with total royalty payments capped to a maximum of US$5 million.
25. Related party transactions
(a) KMP disclosures
The following were key management personnel of the Group at any time during
the reporting period and unless otherwise indicated were key management
personnel for the entire period:
Mr Philip Mitchell Mr Warren Mundine Mr Bryan Dixon
Mr Patrick Mutz
Mr Andrew Grove (appointed 30 January 2024)
Mr David Woodall (resigned 30 January 2024)
Mr Will Goodall
Mr Mark Somlyay (appointed 22 April 2024)
The key management personnel compensation is as follows:
30 Jun 2024 30 Jun 2023
$
$
Short term employee benefits 1,242,351 944,966
Consulting fees 95,875 30,500
Post employment benefits 78,970 32,810
Long-term benefits - 526
Termination benefits 85,000 -
Share based payments 895,834 1,937,188
Total 2,398,030 2,945,990
Information regarding individual directors and executive's compensation and
some equity instruments disclosures as required by Corporations Regulations
2M.3.03 is provided in the Remuneration Report section of the Directors'
Report on pages 31 to 43.
Apart from the details disclosed in this note and in the Remuneration Report,
no director has entered into a material contract with the Company since the
end of the previous financial year and there were no material contracts
involving directors' interests existing at the end of the current period.
(b) Receivable from and payable to related parties
The outstanding balance due to Philip Mitchell for Director fees as at 30 June
2024 was $15,000 (2023: $nil).
(c) Terms and conditions with related parties
Transactions with related parties are made on terms equivalent to those that
prevail in arm's length transactions. Outstanding balances at year-end are
unsecured and interest-free and settlement occurs in cash and are presented as
part of trade payables.
26. Events after the reporting period
Quotation of securities
On 10 July 2024, the Company issued 1,543,958 Shares to the Underwriter at the
option exercise price of 5.2c each. The Options Funding Loans were fully
repaid with proceeds received from options holders and the issue of Shortfall
Shares to the Underwriter.
Authorisation to develop, mine and produce Uranium Oxide Concentrate ("UOC")
for Tiris Uranium Project
On 15 July 2024, the Company announced that it had received from the
Mauritanian Government the last outstanding material permit to allow the
construction and operation of the Tiris Uranium Project. The authorisation to
develop, mine and produce UOC was issued by the National Authority for
Radiation Protection, Safety and Nuclear Security (L'Autorité Nationale de
Radioprotection de Sûreté et de Sécurité Nucléaire ("ARSN")) on the 12
July 2024. This is the last material license required to commence
construction, mine and produce uranium from Tiris and is a very significant
step towards achieving a Final Investment Decision ("FID") by Q1 2025.
Curzon restructure and placement
On 15 August 2024, the Company announced the restructure of its uranium
offtake agreement with Curzon Uranium Ltd ("Curzon"), significantly increasing
the price receivable for planned uranium production at the Tiris Uranium
Project and unlocking substantial value for the Project. As part of this,
Curzon received a restructuring fee of US$3.5M (A$5.4M) in 29,914,530 shares,
priced at A$0.18 per share, issued on 16 August 2024. These shares will be
escrowed until the first production from the Project.
Additionally, on 19 August 2024 the Company completed a private placement to
Curzon, issuing 29,914,530 shares valued at US$3.5M (A$5.4M) at A$0.18 per
share. Half of these shares will be escrowed until the earlier of 30 June 2025
or the Final Investment Decision on the Project. The Company also issued
5,982,906 unlisted options to Curzon, priced at A$0.20 per option and expiring
on 1 September 2025.
Häggån Project exploitation permit submission
On 5 September 2024, the Company announced that it had lodged the Exploitation
permit application for Häggån K no 1 and a new exploration application
lodged for Häggån no 2, covering the areas of the original Häggån no 1
concession, with the Swedish Mining Inspectorate. If granted, the Exploitation
Permit will secure the tenure over the Häggån Project and be valid for 25
years, pending approval from the Swedish government.
Additionally, the Company has applied for a new exploration license, Häggån
no 2, covering some of the areas of the original Häggån no 1 exploration
license. The application also includes a request for an exception to the
prohibition year, which where normally no parties may apply for the expired
tenure for a period of 12 months. Given the substantial work undertaken on the
Project to date, the Company believes that these applications are likely to be
considered favourably.
While the Swedish Mining Inspectorate considers the Häggån K no 1
Exploitation Permit application the Häggån no 1 exploration license will
remain valid and after the determination the Häggån no 2 exploration license
application may be considered. However, there is no guarantee either
application with be granted.
There were no other matters or circumstances which have occurred subsequent to
balance date that have or may significantly affect the operations or state of
affairs of the Group in subsequent financial years.
Accounting Policies
This section of the Notes includes information that must be disclosed to
comply with accounting standards and other pronouncements relating to new and
revised accounting standards and their impact.
27. Changes in Accounting Policies
In the year ended 30 June 2024, the directors have reviewed all of the new and
revised Standards and Interpretations issued by the Australian Accounting
Standards Board that are relevant to the Group and effective for the current
annual reporting period.
The directors have determined that there is no material impact of the new and
revised Standards and Interpretations on the Group and therefore no change is
necessary to the Group's accounting policies.
28. New Accounting Standards and Interpretations
Australian Accounting Standards and Interpretations most relevant to the Group
that have recently been issued or amended but are not yet effective and have
not been adopted by the Group for the year ended 30 June 2024 are outlined
below.
There are no standards that are not yet effective and that would be expected
to have a material impact on the entity in the current or future reporting
periods and on foreseeable future transactions.
29. Other material accounting policies
(a) Current and non-current classification
Assets and liabilities are presented in the statement of financial position
based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised
or intended to be sold or consumed in the Group's normal operating cycle; it
is held primarily for the purpose of trading; it is expected to be realised
within 12 months after the reporting period; or the asset is cash or cash
equivalent unless restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting period. All other assets
are classified as non-current.
A liability is classified as current when: it is either expected to be settled
in the Group's normal operating cycle; it is held primarily for the purpose of
trading; it is due to be settled within 12 months after the reporting period;
or there is no unconditional right to defer the settlement of the liability
for at least 12 months after the reporting period. All other liabilities are
classified as non-current.
(b) Investments and other financial assets
Investments and other financial assets are initially measured at fair value.
Transaction costs are included as part of the initial measurement, except for
financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on
their classification. Classification is determined based on both the business
model within which such assets are held and the contractual cash flow
characteristics of the financial asset unless an accounting mismatch is being
avoided.
Financial assets are derecognised when the rights to receive cash flows have
expired or have been transferred and the Group has transferred substantially
all the risks and rewards of ownership. When there is no reasonable
expectation of recovering part or all of a financial asset, its carrying value
is written off.
Financial assets at amortised cost
A financial asset is measured at amortised cost only if both of the following
conditions are met: (i) it is held within a business model whose objective is
to hold assets in order to collect contractual cash flows; and (ii) the
contractual terms of the financial asset represent contractual cash flows that
are solely payments of principal and interest.
Impairment of financial assets
The carrying amounts of the Group's non-financial assets, other than deferred
tax assets (Note 3 Income tax expense) and exploration and evaluation assets
(Note 5(a) Exploration and evaluation) are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such
indication exists, then the asset's recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount.
A cash-generating unit is the smallest identifiable asset group that generates
cash flows that largely are independent from other assets and groups.
Impairment losses are recognised in the income statement, unless the asset has
previously been revalued, in which case the impairment loss is recognised as a
reversal to the extent of that previous revaluation with any excess recognised
through the income statement. Impairment losses recognised in respect of
cash-generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit on a pro rata basis. The recoverable amount of an
asset or cash-generating unit is the greater of its 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, the recoverable amount is determined for the cash-generating
unit to which the asset belongs.
Impairment losses recognised in prior periods are assessed at each reporting
date for any indications that the loss has decreased or no longer exists. An
impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset's carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation and amortisation,
if no impairment loss had been recognised.
(c) Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset's carrying
amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of
disposal and value-in-use. The value-in-use is the present value of the
estimated future cash flows relating to the asset using a pre-tax discount
rate specific to the asset or cash-generating unit to which the asset belongs.
Assets that do not have independent cash flows are grouped together to form a
cash-generating unit.
(d) Plant and equipment
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated
depreciation and impairment losses. Costs include expenditures that are
directly attributable to the acquisition of the asset.
Subsequent Costs
Subsequent expenditure is only capitalised when it is probable that the future
economic benefits associated with the expenditure will flow to the Group.
Ongoing repairs and maintenance are expensed as incurred.
Depreciation
Depreciation is recognised in profit or loss on a straight-line basis over the
estimated useful lives of each part of an item of property, plant and
equipment. The expected useful lives in the current and comparative period are
as follows:
• IT equipment 2 - 3 years
• Plant and equipment 2 - 3 years
• Motor vehicle 5 years
The estimated useful lives, depreciation methods and residual values are
reviewed at the end of each reporting period.
Name of entity Type of entity Trustee, partner or participant in JV % of share capital Place of Incorporation Australian resident or foreign resident (3) Foreign jurisdiction(s) of foreign residents
Aura Energy Limited (1) Body Corporate - n/a Australia Australian n/a *
Vanadis Battery Metals AB Body Corporate - 100 Sweden Foreign Sweden
Aura Energy Mauritania Pty Ltd Body Corporate - 100 Australia Australia n/a
Tiris Ressources SA Body Corporate - 85 Mauritania Foreign Mauritania
Tiris International Mining Company Sarl Body Corporate - 100 Mauritania Foreign Mauritania
Archaean Greenstone Gold Limited Body Corporate - 100 Australia Australia n/a
Tiris Zemmour Resources Pty Ltd Body Corporate - 100 Australia Australia n/a
North-East Resources Pty Ltd Body Corporate - 100 Australia Australia n/a
Mauritanian Services Suarl (2) Body Corporate - 100 Mauritania Australia n/a
(1) Aura Energy Ltd has a branch in Mauritania which is subject to tax in
Mauritania.
(2) On the basis Mauritanian Services Suarl has limited activity for the
period up to and including 30 June 2024, the directors and officers of Aura
Energy Ltd do not have sufficient evidence or a basis to represent to the
required true and correct standard that this entity has not carried on
business in Australia through the exercise of central management and control
in Australia.
(3) The proposed disclosure is made solely for the purposes of the 30 June
2024 CEDS disclosures and are not representative, conclusive or determinative
of the residency of these entities for Australian tax purposes.
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared in
accordance with the Corporations Act 2001 and includes information for each
entity that was part of the consolidated entity as at the end of the financial
year in accordance with AASB 10 Consolidated Financial Statements.
Determination of tax residency
Section 295 (3A)(vi) of the Corporation Act 2001 defines tax residency as
having the meaning in the Income Tax Assessment Act 1997. The determination of
tax residency involves judgement as there are different interpretations that
could be adopted, and which could give rise to a different conclusion on
residency.
In determining tax residency, the consolidated entity has applied the
following interpretations:
• Australian tax residency
The consolidated entity has applied current legislation and judicial
precedent, including having regard to the Tax Commissioner's public guidance
in Tax Ruling TR 2018/5.
• Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in
foreign jurisdictions to assist in its determination of tax residency to
ensure applicable foreign tax legislation has been complied with (see section
295(3A)(vii) of the Corporations Act 2001).
Partnerships and trusts
Australian tax law generally does not contain corresponding residency tests
for partnerships and trusts and these entities are typically taxed on a
flow-through basis.
Additional disclosures on the tax status of partnerships and trusts have been
provided where relevant.
Directors' Declaration
In the directors' opinion:
(a) the financial statements and notes set out on pages 48 to 86 are in
accordance with the Corporations Act 2001, including:
(i) complying with Accounting Standards, the Corporations Regulations 2001
and other mandatory professional reporting requirements, and
(ii) (ii) giving a true and fair view of the consolidated entity's financial
position as at 30 June 2024 and of its performance for the financial year
ended on that date, and
(b) there are reasonable grounds to believe that the company will be able to
pay its debts as and when they become due and payable
(c) the consolidated entity disclosure statement on page 87 is true and
correct, and
(d) at the date of this declaration, there are reasonable grounds to believe
that the members of the closed group identified in note 20 will be able to
meet any obligations or liabilities to which they are or may become subject
to, by virtue of the Deed of Cross Guarantee.
Note 3 confirms that the financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting
Standards Board.
The directors have been given the declarations by the chief executive officer
and chief financial officer required by section 295A of the Corporations Act
2001.
This declaration is made in accordance with a resolution of the directors.
Andrew Grove
Managing Director & CEO
27 September 2024
Melbourne
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