REG - Castillo Copper Ltd - Final Results and Publication of Annual Report
03/10/2023 18:30
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RNS Number : 5867O Castillo Copper Limited 03 October 2023
03 October 2023
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CASTILLO COPPER LIMITED
("Castillo" or the "Company")
Final Results
Publication of Annual Report
Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily
focused on copper across Australia and Zambia, announces its financial results
for the year ended 30 June 2023.
Annual Address
Dear Shareholders,
Challenges thrown up by the external environment in FY2023 - rapid increase in
interest rates to combat inflation, ongoing war in Ukraine, pedestrian
commodity prices and subdued equity markets - forced the Board to undertake
thorough due diligence before making decisions.
The Board's core theme, which remains a constant moving forward, is to align
with strategic development partners to optimise the value creating potential
from the current asset portfolio. Further, the Board will consider any
outright offer to acquire one of the assets based on its merits.
Reflecting on FY2023, extremely weak stock market conditions in the UK
resulted in London-based Metallea Group not proceeding with plans to acquire
the Zambia Copper Projects. However, the Board has committed to further
exploratory work and re-doubled efforts to align with a new strategic
development partner.
In Australia, solid progress was made advancing the three projects, summarised
as follows:
· East Zone, BHA Project (NSW): Post defining a JORC compliant
inferred cobalt resource from legacy data (64Mt @ 318 ppm Co for 21,556t), the
Board commissioned a 2,000m drilling campaign.
The surprise upshot from this campaign was the discovery of a significant
shallow rare earth element system proximal to the Fence Gossan, Reef and Tors
Tank Prospects.
While initial metallurgy samples were inconclusive, the Board is investigating
trialling several alternate metallurgical test-work techniques to improve
extraction results.
· NWQ Copper Project (QLD): Metallurgical test-work undertaken on
samples from the Big One Deposit to produce a concentrate were encouraging,
with upgrades ranging from 5-10x copper metal. Further, combined with a JORC
compliant inferred Mineral Resource Estimate - 2.1Mt @ 1.1% Cu for 21,886kt
copper metal - and known targets to test-drill, the Big One Deposit offers
significant exploration potential.
More broadly, across the NWQ Copper Project are over 20 incremental under
explored prospects that are highly prospective for copper mineralisation which
potentially provide the foundations for developing a series of satellite
deposits.
· Cangai Copper Mine (NSW): Post the review period, the geology
team produced an updated JORC compliant inferred Mineral Resource Estimate at
4.4Mt @ 2.5% Cu and 0.2Mt @ 1.35% Cu indicated from historic stockpiles for
~114kt contained copper metal.
Ged Hall
Chairman
Dennis Jensen
Managing Director
For further information, please contact:
Castillo Copper Limited +61 8 6558 0886
Dr Dennis Jensen (Australia), Managing Director
Gerrard Hall (UK), Chairman
SI Capital Limited (Financial Adviser and Corporate Broker) +44 (0)1483 413500
Nick Emerson
Gracechurch Group (Financial PR) +44 (0)20 4582 3500
Harry Chathli, Alexis Gore, Henry Gamble
About Castillo Copper
Castillo Copper Limited is an Australian-based explorer primarily focused on
copper across Australia and Zambia. The group is embarking on a strategic
transformation to morph into a mid-tier copper group underpinned by its core
projects:
· A large footprint in the Mt Isa copper-belt district, north-west
Queensland, which delivers significant exploration upside through having
several high-grade targets and a sizeable untested anomaly within its
boundaries in a copper-rich region.
· Four high-quality prospective assets across Zambia's copper-belt
which is the second largest copper producer in Africa.
· A large tenure footprint proximal to Broken Hill's world-class
deposit that is prospective for zinc-silver-lead-copper-gold and platinoids.
· Cangai Copper Mine in northern New South Wales, which is one of
Australia's highest grading historic copper mines.
The group is listed on the LSE and ASX under the ticker "CCZ."
Annual Report and Accounts
The Company's Annual Report and Accounts is available on the Company's website
at: https://castillocopper.com/investors/
(https://castillocopper.com/investors/)
RESULTS OF OPERATIONS
The net loss of the Group for the year after income tax was $6,942,228 (2022:
$1,653,183) and the net assets of the Group at 30 June 2023 were $12,071,269
(2022: $19,012,138).
DIVIDENDS
No dividend was paid or declared by the Group during the year and up to the
date of this report.
CORPORATE STRUCTURE
Castillo Copper Limited is a company limited by shares that is incorporated
and domiciled in Australia.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the financial year, the principal activity of the Group was mineral
exploration and examination of new resource opportunities. The Group currently
holds copper projects in Queensland and New South Wales in Australia as well
as copper projects in Zambia.
EMPLOYEES
Other than the Directors, the Group had no employees at 30 June 2023 (2022:
Nil).
REVIEW OF OPERATIONS
During the financial year, the principal activity of the group was mineral
exploration primarily focused on copper, cobalt and rare earth elements
("REE") projects in Australia and Zambia.
East Zone, BHA Project, NSW
On 2 August 2022, metallurgical test-work on BH1 drill-core extracted from The
Sisters Prospect - BHA Project's East Zone - delivered excellent beneficiation
results for cobalt and, surprisingly, copper-gold - with the best outcomes:
· Cobalt: 200ppm head-grade up to 2,500ppm post-test-work; 12x
upgrade.
· Copper: 520ppm head-grade up to 16,000ppm (1.6%) post-test-work;
30x upgrade.
· Gold: 0.02g/t Au head-grade up to 3.87g/t Au post-test-work;
>190x upgrade.
Pleasingly, the metallurgical test-work showed that cobalt-copper-gold
liberated easily from BH1 drill-core samples to produce a potentially viable
concentrate. Further, the original BH1 drill-core the samples were extracted
from comprised:
24m @ 424ppm Co from 103m including 2m @ 1,120ppm Co from 107m; 1m @ 873ppm
Cofrom 120m; and 2m @ 486ppm Co from 125m (BH1)
Moving forward, the Board's primary focus for the East Zone is to increase the
confidence in the current inferred Mineral Resource Estimate which stands at
21,556t cobalt (64Mt @ 318 ppm Co) and 44,260t copper (63Mt @ 0.07% Cu).
On 9 August 2022, targets were finalised for the drilling campaign at the East
Zone which comprised one diamond core and 17 RC drill-holes for 2,100m, with
depths ranging from 100m to 160m.
Of these, two drill-holes were earmarked for The Sisters, with the balance
across Fence Gossan, Reefs & Tors Tanks Prospects.
Notably, for the Fence Gossan, Reefs & Tors Tanks Prospects, the campaign
was designed to penetrate deep enough to intersect two lower cobalt-rich zones
that were interpreted to host higher grade mineralisation than had been
modelled.
On 31 August 2022, two key contractors were appointed:
· AllState Drilling's team to perform the campaign; and
· FieldCrew to manage day-to-day aspects of the drilling campaign.
In addition, with Australia securing preferred status for the supply of
critical minerals to the USA's electric vehicle battery program, the Board
determined it necessary to deepen its understanding of the East Zone's REE
potential at two targets:
· The Sisters Prospect: both RC drill-holes were analysed for
copper-cobalt-gold and REEs; and
· Iron Blow: having already confirmed the presence of REEs, the
geology team tested additional drill- core samples from the core library to
determine if there are further extensions to known mineralisation.
On 3 October 2022, after approval was secured from the New South Wales
Resources Regulator, a four-week long drilling campaign at the East Zone
commenced across four prospects (Figure 1 & 2).
FIGURE 1: PROPOSED DRILLING CAMPAIGN BHA PROJECT EAST ZONE
Prospects # Target Commodity Depth range Type Objective
Drillholes (m)
Reefs Tank, 16 Co, Au, Ag, Cu 100-160 RC, DDH Target primary cobalt whilst assays to investigate PGE & REE potential
Tors Tank, Fence Gossan
The Sisters 2 Co, Cu, REE 120-160 RC Test known EM interpretation; drill extensions north & south
Source: CCZ geology team
FIGURE 2: DRILLING UNDERWAY AT BHA PROJECT'S EAST ZONE
Location:6460000mN, 570000mE
Source: CCZ geology team
On 12 October 2022, four drill-holes for 488m were completed at the Tors Tank
Prospect which delivered encouraging initial observations, including:
· All four drill-holes hit targeted cobalt mineralisation zones,
evidenced by intersecting sequences comprising clay, amphibolite, schist, and
gneiss;
· Qualitative logging identified multiple disseminated sulphide
layers (mostly pyrite), up to 12m thick, associated with amphibolite layers
that can potentially host cobalt mineralisation;
· Field XRF observations, subject to final assay results, indicated
the presence of cobalt mineralisation within these amphibolite zones; and
· The intersected geology was interpreted to be consistent with
observations by previous explorers, including Broken Hill North, across the
1970-80s.
In addition, proximal to the amphibolite layers, there are significant
magnetite-rich zones - associated with pegmatite up to 14m thick - that
potentially hosts REEs. Notably, this interpretation was based on recently
re-assayed diamond core from drill-hole DD90_IB3 at the Iron Blow Prospect
which returned up to 1,270ppm TREO.
On 24 October 2022, four drill-holes for a total of 516m were completed at the
Fence Gossan Prospect, with positive initial observations comparable to the
Tors Tank Prospect:
· Targeted cobalt mineralisation zones were hit across the four
drill-holes, as sequences intersected comprised clay, amphibolite, schist and
gneiss;
· Numerous disseminated sulphide layers (mostly pyrite linked to
amphibolite), up to 17m thick, were logged which could potentially host cobalt
mineralisation; and
· Interpreting the intersected geology suggests it is consistent
with observations noted by North Broken Hill in the 1970-80s, while XRF field
observations (subject to final assays) indicated cobalt mineralisation is
apparent.
Similar to the Iron Blow Prospect, there are significant magnetite-rich zones
- associated with pegmatite up to 19m thick - which potentially hosts REEs.
On 31 October 2022, after reconciling geochemical and geophysical data for the
Iron Blow Prospect, several viable targets were selected for drill-testing
with significant exploration potential. These findings were based on a re-
interpretation of geophysical campaigns from 2000, 2001 and 2017 which
identified several significant bedrock conductors that could host
mineralisation.
The primary focus is REEs since diamond core assays from drill-hole DD90_1B3
(sourced from the core library) returned positive readings - on a cumulative
basis - over 35m, with the best intersections:
· 8m @ 1,460ppm TREO from 150m
· 12m @ 297ppm TREO from 199m
· 6.4m @ 290ppm TREO from 189m
· 4.8m @ 311ppm TREO from 232m
On 15 November 2022, assays from seven drill-holes across the Fence Gossan and
Tors Tank Prospects, confirmed a significant shallow clay-hosted REE discovery
- up to 2,410ppm TREO, with high-value Magnet REOs representing up to 29.9% of
the grade - the best intercepts are highlighted in Figure 3 below:
FIGURE 3: BEST ASSAYED INTERCEPTS - FENCE GOSSAN / TORS TANK PROSPECTS
o 20m @ 1,780ppm TREO (28.9% Magnet REO) from surface including 4m @
2,410ppm TREO from 16m (FG_003RC)
o 7m @ 1,048ppm TREO (29.9% Magnet REO) from 12m (TT_002RC)
o 19m @ 847ppm TREO (29.6% Magnet REO) from surface (TT_003RC)
o 8m @ 773ppm TREO (24.0% Magnet REO) from 48m (FG_004RC)
o 4m @ 732ppm TREO (27.1% Magnet REO) from 24m (TT_001RC)
o 19m @ 661ppm TREO (28.0% Magnet REO) from surface (FG_002RC)
o 32m @ 636ppm TREO (25.7% Magnet REO) from 52m (FG_003RC)
o 28m @ 614ppm TREO (27.8% Magnet REO) from 4m (FG_004RC)
Source: CCZ geology team
Of significance, the assays for FG_002-4RC delineated an initial 800m strike
event starting near Fence Gossan's eastern boundary. Moreover, with REE
mineralisation open in all directions, and Fence Gossan circa 4km long by 1km
wide (W-E), the Board ordered follow up geological mapping, sampling and auger
drilling to target extending the known strike event to the west.
The new REE discovery has pivoted the Board's strategic focus for the current
drilling campaign and beyond to fully understanding the extent of REE
mineralisation across the East Zone.
On 23 November 2022, new assays for RT_001RC and FG_001RC were positive for
TREO, confirming REEs are more widely apparent across the East Zone than
initially envisaged - the best intercepts comprise:
· 11m @ 1,078 TREO from 8m (RT_001RC)
· 20m @ 609ppm TREO from surface incl. 4m @ 1,709ppm REO from 8m
(FG_001RC)
· 11m @ 862ppm TREO from 58m (FG_001RC)
More significantly, all the assays returned to date from Fence Gossan, Tors
Tank and Reefs Tank highlight the REE mineralisation discovered is extensive
and shallow.
On 20 December 2022, following the receipt of drill assays for the Fence
Gossan, Tors Tank and partly Reefs Tank Prospects, which confirmed that
shallow REE mineralisation is widely apparent, the Board commissioned an
extensive auger sampling campaign.
Encouragingly, the auger sampling campaign, which covered a 6.5km2area
proximal to the Fence Gossan Prospect, was designed to identify the full
extent of REE mineralisation and new targets to test-drill.
All samples were sent to the laboratory for further analysis, with subsequent
interpretation charting the next phase of REE-focused exploration across the
East Zone.
On 15 February 2023, the assay results for diamond core from TT_005DD (Figure
4) - undertaken at the Tors Tank Prospect - significantly boosted confidence
in the shallow, clay-hosted, REE discovery, with the best intercept:
· 13m @ 1,550ppm Total Rare Earth Oxides (TREO) from 5m
FIGURE 4: TORS TANK DIAMOND CORE FROM 5.3-11.8M (TT_OO5DD)
Source: CCZ geology team
Notably, high value Magnetic REO (Nd+Pr+Dy+Tb) represented an exceptional
38.9% of the TREO grade vs 25% peer average.
Re-assays of 4m composite samples at Tors Tank & Fence Gossan to 1m
provided greater clarity on the underlying geology, whilst delivering further
evidence of an extensive, shallow REE mineralisation system - the best
intercepts comprise:
· 17m @ 1,605ppm TREO from 2m and 1m @ 3,236 TREO from 19m
(FG_003RC)
· 10m @ 1,013ppm TREO from 49m (FG_001RC)
· 6m @ 1,480ppm TREO from 7m (FG_004RC)
· 5m @ 1,598ppm TREO from 14m (TT_002RC)
· 4m @ 1,342ppm TREO from 28m (FG_004RC)
· 2m @ 3,491ppm TREO from 7m (TT_003RC)
Assays for circa 70% of the recent hand auger surface sampling campaign across
Fence Gossan delineated a sizeable
4.5km2anomalous area for REE mineralisation. Notably, a preliminary
interpretation suggests there are several more prime targets to test-drill
that could potentially extend known mineralisation between the Fence Gossan
and Tors Tank Prospects.
On 13 April 2023, specialist consultant, ANSTO, was appointed to undertake
comprehensive metallurgical test-work on six samples from Fence Gossan, Reefs
and Tors Tanks Prospects to understand the potential to extract REE from
shallow clay zones.
The scope of work focused on characterising REE leachability from the six
samples which comprise fresh pegmatite to highly weathered clay, especially
with Magnetic Rare Earth Oxide (MREO) grades ranging from 362-603ppm.
This was an important step towards advancing the viability of the East Zone's
REE potential and securing interest from prospective development partners,
especially given the extent of high-value MREO (Nd+Pr+Dy+Tb) within the
system.
On 14 June 2023, specialist consultant, ANSTO, produced the following
preliminary findings from metallurgical test- work performed on six samples
from the Fence Gossan, Reefs, and Tors Tanks Prospects:
· The Total Rare Earth Element plus Yttrium (TREY) grades for the
six samples ranged from 227 to 1,632 ppm TREY;
· The proportion of high-value Magnetic Rare Earth Oxides (MREO;
Nd+Pr+Dy+Tb) to Total REO (TREO) across the six samples ranged from 22% to
27%; and
· The best TREY extraction, using a direct leach process at pH 1,
was 30%
The Board is reviewing next steps, including trialing alternate leach tests
proposed by ANSTO to improve extraction results.
NWQ Copper Project, Queensland
On 19 July 2022, preliminary metallurgical test-work on samples extracted from
drill-hole BO_318RC1 at the Big One Deposit produced a concentrate (Figure 5)
with confirmed upgrades ranging from 5x to 10x for copper metal. The best
result for copper comprised: 0.72% head-grade to 7.2% post-test-work.
Further test-work is underway on samples from the Big One Deposit to determine
the final optimal results. Notably, this is an important proof of concept and
de-risking exercise as part of the Board's strategic intent to secure a
processing agreement.
FIGURE 5: METALLURGICAL TESTING - FROTHER PRODUCT EXAMPLE
Source: ALS Metallurgy, Perth, Western Australia
On 23 January 2023, following a review of prospects at the NWQ Copper Project,
CCZ's geology team visited several prospects - including Big One, Arya and
Valparaisa - to identify new drill targets.
The initial focus was on the Big One, which has an inferred MRE of 2.1Mt @
1.1% Cu for 21,886kt copper metal post- two drilling campaigns across 2020-21.
Moreover, factoring in a large conductor north of the line of lode, plus
reconciling available geophysics and geochemical data, CCZ's geological
consultant set an Exploration Target that ranges from 2-6Mt @ 0.6-1% Cu for
12-60kt copper metal.
Cautionary Statement: It should be noted that the Exploration Target tonnage
range quoted above are conceptual in nature and there has been insufficient
exploration to define a copper resource. Although a preliminary analysis was
undertaken, insufficient data exists to confidently correlate mineralised
horizons within the Exploration Target area. It is uncertain whether further
exploration may lead to the reporting of a JORC-standard resource, however,
there is some evidence to support the current exploration tonnage
calculations, and the sufficient mineralised thicknesses interpreted from
historical drilling to warrant further investigation in some areas.
The Valparaisa Prospect comprises copper mineralisation across two horizons
over a 6km strike event, with the interaction of two intersecting faults
suggesting a structurally controlled copper system that can potentially be
drill- tested.
At the Arya Prospect, there is a significant magnetic anomaly, south of a
known graphite system (test drilled in late 2021), that shows potential to be
a primary source of copper mineralisation.
On 20 February 2023, CCZ's Board approved plans to assess optimising the Big
One Deposit via implementing the following:
· Commissioning an independent engineering contractor to conduct a
pit optimisation study on the viability of commencing copper mining
operations, utilising prospective third-party processors and effective path to
market.
· Re-formulating optimal plans for a third drilling campaign and
companion geophysical surveys to extend known mineralisation beyond the line
of lode.
Previous drilling campaigns have demonstrated the Big One Deposit remains
highly prospective for copper mineralisation, with the best intercepts
comprising:
· 40m @ 1.64% Cu from surface incl: 11m @ 4.40% Cu from 24m, 5m @
7.34% Cu from 28m & 1m @ 16.65% Cu from 29m (303RC)
· 44m @ 1.19% Cu from surface incl: 14m @ 3.55% Cu from 27m, 3m @
10.88% Cu from 37m & 1m @ 12.6% Cu from 37m (301RC)
· 34m @ 1.51% Cu from surface incl: 21m @ 2.25% Cu from surface,
12m @ 3.44% Cu from 3m, 6m @ 4.79% Cu from 3m and 1m @ 9.4% Cu from 9m (B0017)
On 28 March 2023, CCZ appointed Entech Mining to undertake a pit optimisation
and mine design study for the Big One Deposit. If the findings are positive
then next steps comprise determining the optimal path to market and effective
use of third-party processors.
Concurrently, work can focus on capitalising on Big One Deposit's exploration
potential via drill-testing known targets north of the line of lode.
On 13 July 2023 the Board received the preliminary pit optimisation study for
the Big One Deposit.
Drilling down, the study focused on the near-surface component of known
mineralisation at the Big One Deposit and provided significant confidence a
standalone mining operation could potentially be developed.
Key findings indicate an initially optimised pit shell could potentially
deliver up to 6,266t copper (head grade: 1.42% Cu), 4,362oz silver (head
grade: 0.31 g/t Ag) and 1,469t cobalt (head grade: 0.33% Co).
As known mineralisation is open south-west and down dip from the pit shell,
there is significant potential to build on the preliminary findings and
progress a mining license once a strategic development partner is secured.
Cangai Copper Mine
On 9 March 2023, following a site visit to Cangai Copper Mine by geologist and
director David Drakeley, the Board approved plans to update and enhance the
confidence in the 2017 inferred JORC MRE - 107,589t contained copper metal
(3.2Mt @ 3.35%).
Considerable drilling work post-2017, which includes 34 RC drill-holes for a
total of circa 5,000m are to be factored into the updated geological model -
the best intercepts from these campaigns comprised:
· 11m @ 5.94% Cu; 2.45% Zn & 19.13g/t Ag from 40m including:
o 3m @ 8.1% Cu; 2.84% Zn & 23.42g/t Ag from 41m
o 1m @ 10.25% Cu; 1.68% Zn & 32.50g/t Ag from 48m
o 1m @ 7.53% Cu; 6.04% Zn & 30.60g/t Ag from 50m (CC0023R)
• 5m @ 1.56% Cu, 4.43g/t Ag & 0.4% Zn from 92m
including:
o 3m @ 2.22% Cu, 6.38g/t Ag & 0.60% Zn (CC004RC)
• 4.39m @ 5.06% Cu, 2.56% Zn and 20.1 g/t Ag from 49.9m
(CC0036D)
Furthermore, the model will factor in bulk sampling done on several historic
stockpiles (which should support a higher confidence Indicated MRE), drone
topographic survey and re-positioned mine workings that are accurately
georeferenced.
On 24 July 2023 CCZ's geology team, working in conjunction with a specialist
geological consultancy, produced an updated JORC (2012) compliant MRE for
Cangai Copper Mine at:
· 4.4Mt @ 2.5% Cu inferred insitu and 0.2Mt @ 1.35% Cu indicated
from historic stockpiles for ~114kt contained copper metal; augmented further
by zinc, gold, and silver credits
At each reporting date, the Group undertakes an assessment of the carrying
amount of its exploration and evaluation assets. During the period, the Group
identified indicators of impairment on certain exploration and evaluation
assets under AASB 6 Exploration and Evaluation of Mineral Resources. As a
result of this review, an impairment charge of
$5,762,872 has been recognised in the statement of profit or loss and other
comprehensive income in relation to areas of interest where no future
exploration and evaluation activities are expected.
Zambia Copper Projects
On 7 December 2022, CCZ's Board approved incremental development work on known
key targets - focusing on the highly prospective Luanshya Project which is in
the heart of Zambia's copper belt.
Specifically, the geology team planned to roll out an Induced Polarisation
(IP) geophysics campaign to build on earlier work undertaken in 2021 which
focused on a 6km zone of copper surface anomalism that delineated up to 14
chargeable zones. A key focus of the IP campaign was to refine targets for
test drilling and enhance the confidence of finding structurally controlled
copper mineralisation.
The plans for development work follow London-based, Metallea Group's
(previously Hyperion Copper) decision to cancel plans to list on the
Alternative Investment Market (AIM) of the London Stock Exchange (LSE), due to
extremely difficult equity market conditions. As this was a key requirement to
secure funds to progress development work, Metallea has further advised it was
not exercising the option - which delivered a US$100,000 non-refundable
deposit to CCZ - to acquire the Zambia Copper Projects.
Moving forward, as CCZ's Board remains committed to aligning with a
development partner or undertaking a trade sale for the Zambia Copper
Projects, efforts will be redoubled to deliver this outcome.
CORPORATE
Board Changes
On 30 January 2023, to strengthen and diverse the Board's skill set, two new
Non-Executive Directors were appointed:
· Mr David Drakeley BSc (Hons), an experienced field geologist
who has worked as point on CCZ's drilling campaigns in Broken Hill and
Queensland, who will oversee designing and implementing all future exploratory
work across the group's portfolio.
· Mr Jack Sedgwick BEng BCom MBA (Distinction) GAICD, a hands-on
corporate strategist / business improvement specialist with blue-chip
experience across the mining / energy sectors (including working on Rio
Tinto's iron ore expansion projects), who will oversee portfolio optimisation
and the group's finances.
Note, these new additions follow the departure of Mr Geoff Reed to pursue a
new opportunity.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the Group during
the year, other than as outlined elsewhere in this report.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Other than as set out in the Review of Operations, there were no known
material significant events from the end of the financial year to the date of
this report that have significantly affected, or may significantly affect the
operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Castillo Copper remains focused on progressing its four (4) pillared strategy
which includes continued exploration efforts at NWQ Copper Project in
Queensland, Cangai Copper Mine and Broken Hill Project in New South Wales, and
its four Zambian properties.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The operations of the Group are presently subject to environmental regulation
under the laws of the Commonwealth of Australia and the States of Queensland
and New South Wales and the Republic of Zambia. The Group is, to the best of
its knowledge, at all times in full environmental compliance with the
conditions of its licenses.
SHARE OPTIONS
As at the date of this report, there were 52,000,000 unissued ordinary shares
under unlisted options. The details of the unlisted options at the date of
this report are as follows:
Number Exercise Price $ Expiry Date
19,000,000 0.05 30 September 2023
17,000,000 0.10 31 December 2023
5,000,000 0.05 31 December 2023
3,000,000 0.08 31 July 2024
8,000,000 0.08 31 January 2025
In addition to the unlisted options, there are 163,439,781 listed options
(ASX: CCZA, CCZB). The details of the listed options at the date of this
report are as follows:
Number Exercise Price $ Expiry Date
131,418,042 0.08 31 July 2024
32,021,739 £0.044 1 August 2024
No option holder has any right under the options to participate in any other
share issue of the Group or any other entity.
PERFORMANCE SHARES
As part of the Zed Copper acquisition in the 2021 financial year, the Group
issued 2 classes of performance shares to the vendors on 20 February 2021:
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on
delineation of a JORC resource of 200,000 tonnes of contained copper at a
minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion
of a preliminary feasibility study demonstrating an internal rate of return
greater than 25% within 5 years of execution of the Share Sale Agreement.
None of the above conditions were met during the 2023 financial year.
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Group has made an agreement indemnifying all the Directors and Officers of
the Group against all losses or liabilities incurred by each Director or
Officer in their capacity as Directors or Officers of the Group to the extent
permitted by the Corporation Act 2001. The indemnification specifically
excludes wilful acts of negligence. The Group paid insurance premiums in
respect of Directors' and Officers' Liability Insurance contracts for current
officers of the Group. The liabilities insured are damages and legal costs
that may be incurred in defending civil or criminal proceedings that may be
brought against the Officers in their capacity as Officers of entities in the
Group. The total amount of insurance premiums paid has not been disclosed due
to confidentiality reasons.
PROCEEDINGS ON BEHALF OF THE GROUP
No person has applied for leave of the court to bring proceedings on behalf of
the Group or intervene in any proceedings to which the Group is a party for
the purpose of taking responsibility on behalf of the Group for all or any
part of those proceedings. The Group was not a party to any such proceedings
during the year.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year,
indemnified or agreed to indemnify the auditor of the company or any related
entity against a liability incurred by the auditor.
CORPORATE GOVERNANCE
In recognising the need for the highest standards of corporate behaviour and
accountability, the Directors of Castillo Copper Limited support and have
adhered to the principles of sound corporate governance. The Board recognises
the recommendations of the Australian Securities Exchange Corporate Governance
Council and considers that Castillo Copper is in compliance with those
guidelines to the extent possible, which are of importance to the commercial
operation of a junior listed resources company. During the financial year,
shareholders continued to receive the benefit of an efficient and cost
effective corporate governance policy for the Group. The Group's Corporate
Governance Statement and disclosures can be found at
https://castillocopper.com/investors/governance/.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the year ended 30 June 2023
Notes 2023 2022
$ $
Interest received 15,615 619
Other income 4 - 144,509
15,615 145,128
Listing and public company expenses (158,585) (332,476)
Accounting and audit expenses (125,358) (126,586)
Consulting and Directors' fees (515,196) (647,641)
Exploration expenditure expensed as incurred - (25,108)
Impairment of exploration expenditure 8 (5,672,872) -
Share-based payments 20 - (85,680)
Other expenses 4 (485,832) (580,820)
LOSS BEFORE INCOME TAX (6,942,228) (1,653,183)
Income tax expense 5 - -
LOSS AFTER INCOME TAX (6,942,228) (1,653,183)
OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently to profit or loss
Foreign currency translation 1,359 1,594
TOTAL OTHER COMPREHENSIVE INCOME 1,359 1,594
TOTAL COMPREHENSIVE LOSS FOR THE YEAR (6,940,870) (1,651,589)
Basic and diluted loss per share (cents per share) 12 (0.53) (0.13)
The accompanying notes form part of these financial statements.
Consolidated Statement of Financial Position
as at 30 June 2023
Notes 2023 2022
$ $
CURRENT ASSETS
Cash and cash equivalents 6 2,897,611 5,754,049
Other assets 7 78,845 78,994
TOTAL CURRENT ASSETS 2,976,456 5,833,043
NON-CURRENT ASSETS
Other assets 7 486,961 404,961
Deferred exploration and evaluation expenditure 8 8,736,198 12,899,486
TOTAL NON-CURRENT ASSETS 9,223,159 13,304,447
TOTAL ASSETS 12,199,615 19,137,490
CURRENT LIABILITIES
Trade and other payables 9 128,346 125,352
TOTAL CURRENT LIABILITIES 128,346 125,352
TOTAL LIABILITIES 128,346 125,352
NET ASSETS 12,071,269 19,012,138
EQUITY
Issued capital 10 35,964,396 35,964,396
Reserves 11 4,081,735 4,080,376
Accumulated losses (27,974,862) (21,032,634)
TOTAL EQUITY 12,071,269 19,012,138
The accompanying notes form part of these financial statements.
Consolidated Statement of Changes in Equity
for the year ended 30 June 2023
Share Foreign
Issued based payment currency translation Accumulated
capital reserve reserve losses Total
$ $ $ $ $
Balance at 1 July 2022 35,964,396 4,230,962 (150,586) (21,032,634) 19,012,138
Loss for the year - - - (6,942,228) (6,942,228)
Other comprehensive income - - 1,359 - 1,359
Total Comprehensive Loss - - 1,359 (6,942,228) (6,940,869)
Transactions with owners in their capacity as owners
- - - - -
Balance as at 30 June 2023 35,964,396 4,230,962 (149,227) (27,974,862) 12,071,269
Balance at 1 July 2021 34,464,159 4,092,830 (152,180) (19,379,451) 19,025,358
Loss for the year - - - (1,653,183) (1,653,183)
Other comprehensive loss - - 1,594 - 1,594
Total comprehensive loss - - 1,594 (1,653,183) (1,651,589)
Transactions with owners in their capacity as owners
Shares issued to sophisticated investors 1,742,319 - - - 1,742,319
Shares issued to advisors 59,346 - - - 59,346
Share issue costs (301,428) 52,452 - - (248,976)
Share based payments - 85,680 - - 85,680
Balance as at 30 June 2022 35,964,396 4,230,962 (150,586) (21,032,634) 19,012,138
The accompanying notes form part of these financial statements.
Consolidated Statement of Cash Flows
for the year ended 30 June 2023
Notes 2023 2022
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received 15,615 619
Payments to suppliers and employees (1,115,720) (1,406,386)
NET CASH USED IN OPERATING ACTIVITIES 6 (1,100,105) (1,405,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for tenements bonds (82,000) (55,861)
Option fee received - 144,509
Exploration and evaluation
expenditure
8 (1,678,114) (5,112,153)
NET CASH USED IN INVESTING
ACTIVITIES
(1,760,114) (5,023,505)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issues 10 - 1,742,319
Share issue costs 10 - (248,976)
NET CASH FROM FINANCING ACTIVITIES - 1,493,343
Net (decrease)/increase in cash and cash equivalents (2,860,219) (4,935,929)
Cash and cash equivalents at beginning of year 5,754,049 10,854,829
Foreign exchanges variances on cash 3,781 (164,851)
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR 6 2,897,611 5,754,049
The accompanying notes form part of these financial statements.
Notes to the consolidated financial statements
for the year ended 30 June 2023
1. Corporate Information
The financial report of Castillo Copper Limited and its subsidiaries
("Castillo Copper" or "the Group") for the year ended 30 June 2023 was
authorised for issue in accordance with a resolution of the Directors on 22
September 2023.
Castillo Copper Limited is a company limited by shares incorporated in
Australia whose shares are publicly traded on the Australian Securities
Exchange and London Stock Exchange. The nature of the operations and the
principal activities of the Group are described in the Directors' Report.
2. Summary of Significant Accounting Policies
(a) Basis of Preparation
The financial report is a general-purpose financial report, which has been
prepared in accordance with Australian Accounting Standards, Australian
Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001. The Group
is a for profit entity for financial reporting purposes under Australian
Accounting Standards.
The financial report has been prepared on an accrual basis and is based on
historical costs. Material accounting policies adopted in preparation of this
financial report are presented below and have been consistently applied unless
otherwise stated.
The presentation currency is Australian dollars.
(b) Statement of Compliance
The financial report complies with 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).
(c) Adoption of new and revised standards
Standards and Interpretations applicable 30 June 2023
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 annual 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.
Standards and interpretations issued, but not yet effective
The Directors have also reviewed all Standards and Interpretations issued, but
not yet effective for the period 30 June 2023. As a result of this review the
Directors have determined that there is no material impact of the Standards
and Interpretations issued but not yet effective on the Company.
(d) Going Concern
This report has been prepared on the going concern basis, which contemplates
the continuity of normal business activity and the realisation of assets and
settlement of liabilities in the normal course of business.
The Group incurred a net loss for the year ended 30 June 2023 of $6,942,228
and net cash outflows from operating activities of $1,100,105 net cash
outflows from investing activities of $1,760,114 and net cash flows from
financing activities of $Nil. At 30 June 2023, the Group had a net asset
position of $12,071,269. The cash and cash equivalents balance at 30 June 2023
was $2,897,611.
The directors have reviewed the Group's financial position and are of the
opinion that the use of the going concern basis of accounting is appropriate.
(e) Basis of Consolidation
The consolidated financial statements comprise the financial statements of
Castillo Copper Limited and its subsidiaries as at 30 June each year ('the
Company').
Subsidiaries are all those entities (including special purpose entities) over
which the Company has control. The Company controls an entity when the company
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 Group.
The financial statements of the subsidiaries are prepared for the same
reporting period as the parent Company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances
and transactions, income and expenses and profit and losses resulting from
intra-company transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is obtained
by the Company and cease to be consolidated from the date on which control is
transferred out of the Company.
A change in the ownership interest of a subsidiary that does not result in a
loss of control, is accounted for as an equity transaction.
(f) Foreign Currency Translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Company's entities
are measured using the currency of the primary economic environment in which
the entity operates ('the functional currency'). The functional and
presentation currency of Castillo Copper Limited is Australian dollars. The
functional currency of the Chilean subsidiary is Chilean Peso. The functional
currency of the Zambian subsidiaries is United States Dollars.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions. Foreign
exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the statement
of comprehensive income.
(iii) Group entities
The results and financial position of all the Company entities (none of which
has the currency of a hyperinflationary economy) that have a functional
currency different from the presentation currency are translated into the
presentation currency as follows:
· assets and liabilities for each statement of financial
position presented are translated at the closing rate at
the date of that statement of financial position;
· income and expenses for each statement of comprehensive
income are translated at average exchange rates (unless this is not a
reasonable approximation of the rates prevailing on the transaction dates, in
which case income and expenses are translated at the dates of the
transactions); and
· all resulting exchange differences are recognised as a
separate component of equity.
On consolidation, exchange differences arising from the translation of any net
investment in foreign entities are taken to foreign currency translation
reserve.
When a foreign operation is sold or any borrowings forming part of the net
investment are repaid, a proportionate share of such exchange differences are
recognised in the statement of comprehensive income, as part of the gain or
loss on sale where applicable.
(g) Impairment of non-financial assets
The Group assesses at each reporting 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 of the Group. 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.
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.
Impairment losses relating to continuing operations are recognised in those
expense categories consistent with the function of the impaired asset unless
the asset is carried at revalued amount (in which case the impairment loss is
treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any
indication that previously recognised impairment losses may no longer exist or
may have decreased. If such indication exists, the recoverable amount is
estimated. A previously recognised impairment loss is reversed only if there
has been a change in the estimates used to determine the asset's recoverable
amount since the last impairment loss was recognised. If that is the case the
carrying amount of the asset is increased to its recoverable amount. That
increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in profit or loss unless
the asset is carried at revalued amount, in which case the reversal is treated
as a revaluation increase.
After such a reversal the depreciation charge is adjusted in future periods to
allocate the asset's revised carrying amount, less any residual value, on a
systematic basis over its remaining useful life.
(h) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred by or on behalf of the Group
is accumulated separately for each area of interest. Such expenditure
comprises net direct costs and an appropriate portion of related overhead
expenditure, but does not include general overheads or administrative
expenditure not having a specific nexus with a particular area of interest.
Each area of interest is limited to a size related to a known or probable
mineral resource capable of supporting a mining operation.
Exploration and evaluation expenditure for each area of interest is carried
forward as an asset provided that one of the following conditions is met:
· such costs are expected to be recouped through
successful development and exploitation of the area of interest or,
alternatively, by its sale; or
· exploration and evaluation activities in the area
of interest have not yet reached a stage which permits a reasonable assessment
of the existence or otherwise of economically recoverable reserves, and active
and significant operations in relation to the area are continuing.
Expenditure which fails to meet the conditions outlined above is impaired;
furthermore, the Directors regularly review the carrying value of exploration
and evaluation expenditure and make write downs if the values are not expected
to be recoverable.
Identifiable exploration assets acquired are recognised as assets at their
cost of acquisition, as determined by the requirements of AASB 6 Exploration
for and evaluation of mineral resources. Exploration assets acquired are
reassessed on a regular basis and these costs are carried forward provided
that at least one of the conditions referred to in AASB 6 is met.
Exploration and evaluation expenditure incurred subsequent to acquisition in
respect of an exploration asset acquired, is accounted for in accordance with
the policy outlined above for exploration expenditure incurred by or on behalf
of the entity.
Acquired exploration assets are not written down below acquisition cost until
such time as the acquisition cost is not expected to be recovered.
When an area of interest is abandoned, any expenditure carried forward in
respect of that area is written off.
Expenditure is not carried forward in respect of any area of interest/mineral
resource unless the Group's rights of tenure to that area of interest are
current.
(i) Trade and Other Receivables
Trade receivables, which generally have 30 - 90 day terms, are recognised and
carried at original invoice amount less an allowance for any uncollectible
amounts.
Impairment of trade receivables is continually reviewed and those that are
considered to be uncollectible are written off by reducing the carrying amount
directly. An allowance account is used when there is objective evidence that
the Group will not be able to collect all amounts due according to the
original contractual terms. Furthermore, the Group applies the simplified
approach permitted by AASB 9, which requires expected lifetime losses to be
recognised from initial recognition of the receivables. Factors considered by
the Group in making this determination include known significant financial
difficulties of the debtor, review of financial information and significant
delinquency in making contractual payments to the Group. The impairment
allowance is set equal to the difference between the carrying amount of the
receivable and the present value of estimated future cash flows, discounted at
the original effective interest rate. Where receivables are short-term,
discounting is not applied in determining the allowance.
The amount of the impairment loss is recognised in the statement of
comprehensive income within other expenses. When a trade receivable for which
an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against other
expenses in the statement of comprehensive income.
(j) Cash and Cash Equivalents
Cash and short term deposits in the statement of financial position include
cash on hand, deposits held at call with banks and other short term highly
liquid investments with original maturities of three months or less. Bank
overdrafts are shown as current liabilities in the statement of financial
position. For the purpose of the statement of cash flows, cash and cash
equivalents consist of cash and cash equivalents as described above.
(k) 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.
Where the Group expects some or all of a provision to be reimbursed, for
example under an insurance contract, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the statement of
comprehensive income net of any reimbursement.
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
determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money, and where
appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
Restoration and rehabilitation
Refer to Note 2(m) for the Group's policy in respect of restoration and
rehabilitation.
(l) Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that may
have a financial impact on the entity and that are believed to be reasonable
under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting
accounting estimates will, by definition, seldom equal the related actual
results. The estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.
Capitalised exploration and evaluation expenditure
The future recoverability of capitalised exploration and evaluation
expenditure is dependent on a number of factors, including whether the Group
decides to exploit the related lease itself or, if not, whether it
successfully recovers the related exploration and evaluation asset through
sale.
Factors which could impact the future recoverability include the level of
proved, probable and inferred mineral resources, future technological changes
which could impact the cost of mining, future legal changes (including changes
to environmental restoration obligations) and changes to commodity prices.
To the extent that capitalised exploration and evaluation expenditure is
determined not to be recoverable in the future, this will reduce profits and
net assets in the period in which this determination is made
In addition, exploration and evaluation expenditure is capitalised if
activities in the area of interest have not yet reached a stage which permits
a reasonable assessment of the existence or otherwise of economically
recoverable reserves. To the extent that it is determined in the future that
this capitalised expenditure should be written off, this will reduce profits
and net assets in the period in which this determination is made.
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 using a Black and Scholes
model, using the assumptions detailed in note 10.
Rehabilitation provision
The Group's mining and exploration activities are subject to various laws and
regulations governing the protection of the environment. The Group recognises
management's best estimate for asset retirement obligations in the period in
which they are incurred. Actual costs incurred in the future periods could
differ materially from the estimates. Additionally, future changes to
environmental laws and regulations, life of mine estimates and discount rates
could affect the carrying amount of this provision.
(m) Rehabilitation provision
A provision for rehabilitation and restoration is recognised when there is a
present obligation as a result of 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
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.
(n) Income Tax
Deferred income tax is provided for on all temporary differences at balance
date between the tax base of assets and liabilities and their carrying amounts
for financial reporting purposes.
No deferred income tax will be recognised from the initial recognition of
goodwill or of an asset or liability, excluding a business combination, where
there is no effect on accounting or taxable profit or loss. No deferred income
tax will be recognised in respect of temporary differences associated with
investments in subsidiaries if the timing of the reversal of the temporary
difference can be controlled and it is probable that the temporary differences
will not reverse in the near future.
Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realised or liability is settled. Deferred tax is
credited in the statement of comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax
is adjusted directly against equity.
Deferred income tax assets are recognised for all deductible temporary
differences, carry forward of unused tax assets and unused tax losses to the
extent that it is probable that future tax profits will be available against
which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the
future is based on tax rates (and tax laws) that have been enacted or
substantially enacted at the balance date and the anticipation that the Group
will derive sufficient future assessable income to enable the benefit to be
realised and comply with the conditions of deductibility imposed by the law.
The carrying amount of deferred tax assets is reviewed at each balance date
and only recognised to the extent that sufficient future assessable income is
expected to be obtained. Income taxes relating to items recognised directly in
equity are recognised in equity and not in the statement of comprehensive
income.
(o) Issued capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
(p) Revenue
Revenue is recognised to the extent that it is probable that the economic
benefits will flow to the Group and the revenue is capable of being reliably
measured. The following specific recognition criteria must also be met before
revenue is recognised:
Interest income
Revenue is recognised as the interest accrues (using the effective interest
method, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial instrument) to the net
carrying amount of the financial asset.
(q) Earnings / loss per share
Basic earnings / loss per share
Basic earnings / loss per share is calculated by dividing the profit/loss
attributable to equity holders of the Group, excluding any costs of servicing
equity other than dividends, by the weighted average number of ordinary
shares, adjusted for any bonus elements.
Diluted earnings / loss per share
Diluted earnings / loss per share is calculated as net profit/loss
attributable to members of the Group, adjusted for:
· costs of servicing equity (other than dividends) and preference
share dividends;
· the after tax effect of dividends and interest associated with
dilutive potential ordinary shares that have been recognised as expenses; and
· other non-discretionary changes in revenues or expenses during
the period that would result from the dilution of potential ordinary shares;
and
· divided by the weighted average number of ordinary shares and
dilutive potential ordinary shares, adjusted for any bonus elements.
(r) Goods and services tax
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 statement of financial position are shown inclusive of GST.
The net amount of GST recoverable from, or payable to, the Australian Tax
Office is included as part of receivables or payables in the statement of
financial position.
Cash flows are presented in the 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.
(s) Trade and other payables
Liabilities for trade creditors and other amounts are measured at amortised
cost, which is the fair value of the consideration to be paid in the future
for goods and services received that are unpaid, whether or not billed to the
Group.
(t) Share-based payment transactions
The Group provides benefits to individuals acting as, and providing services
similar to employees (including Directors) of the Group in the form of share
based payment transactions, whereby individuals render services in exchange
for shares or rights over shares ('equity settled transactions').
The cost of these equity settled transactions with employees is measured by
reference to the fair value at the date at which they are granted. The fair
value is determined by using the Black Scholes formula taking into account the
terms and conditions upon which the instruments were granted, as discussed in
note 10(e).
In valuing equity settled transactions, no account is taken of any performance
conditions, other than conditions linked to the price of the shares of
Castillo Copper Limited ('market conditions').
The cost of the equity settled transactions is recognised, together with a
corresponding increase in equity, over the period in which the performance
conditions are fulfilled, ending on the date on which the relevant employees
become fully entitled to the award ('vesting date').
The cumulative expense recognised for equity settled transactions at each
reporting date until vesting date reflects (i) the extent to which the vesting
period has expired and (ii) the number of awards that, in the opinion of the
Directors of the Group, will ultimately vest. This opinion is formed based on
the best available information at balance date. No adjustment is made for the
likelihood of the market performance conditions being met as the effect of
these conditions is included in the determination of fair value at grant date.
The statement of comprehensive income charge or credit for a period represents
the movement in cumulative expense recognised at the beginning and end of the
period.
No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition.
Where the terms of an equity settled award are modified, as a minimum, an
expense is recognised as if the terms had not been modified. In addition, an
expense is recognised for any increase in the value of the transaction as a
result of the modification, as measured at the date of the modification.
Where an equity settled award is cancelled, it is treated as if it had vested
on the date of the cancellation, and any expense not yet recognised for the
award is recognised immediately. However if a new award is substituted for the
cancelled award, and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a
modification of the original award, as described in the previous paragraph.
The cost of equity-settled transactions with non-employees is measured by
reference to the fair value of goods and services received unless this cannot
be measured reliably, in which case the cost is measured by reference to the
fair value of the equity instruments granted. The dilutive effect, if any, of
outstanding options is reflected in the computation of loss per share (see
note 12).
(u) Comparative information
When required by Accounting Standards, comparative information has been
reclassified to be consistent with the presentation in the current year.
(v) Operating segments
Operating segments are presented using the 'management approach', where the
information presented is on the same basis as the internal reports provided to
the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the
allocation of resources to operating segments and assessing their performance.
(w) Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair
value for recognition or disclosure purposes, fair value is based on the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date; and
assumes that the transaction will take place either: in the principle market;
or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would
use when pricing the asset or liability, assuming they act in their economic
best interest. For non-financial assets, the fair value measurement is based
on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, are used, maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three
levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a
reassessment of the lowest level input that is significant to the fair value
measurement.
For recurring and non-recurring fair value measurements, external valuers may
be used when internal expertise is either not available or when the valuation
is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken,
which includes a verification of the major inputs applied in the latest
valuation and a comparison, where applicable, with external sources of data.
(x) Parent entity financial information
The financial information for the parent entity, Castillo Copper Limited,
disclosed in Note 16 has been prepared on the same basis as the consolidated
financial statements, except as set out below.
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. Dividends
received from associates are recognised in the parent entity's profit or loss,
rather than being deducted from the carrying amount of these investments.
3. Segment Information
Management has determined the operating segments based on the reports reviewed
by the Board of Directors that are used to make strategic decisions. The
entity has four geographical segments being exploration in Northwest
Queensland (NWQ), New South Wales (Cangai), New South Wales (Broken Hill) and
Zambia. Revenue attributable to all segments is immaterial. Allocation of
asset, liabilities, income and expenses to each segment is shown below:
NWQ Cangai Broken Hill
2023 (QLD) (NSW) (NSW) Zambia Unallocated Total
Segment assets and liabilities
$ $ $ $ $ $
Current assets - - - - 2,976,456 2,976,456
Non-current assets 6,605,846 321,100 1,527,490 768,601 122 9,223,159
Current liabilities - - - - (128,346) (128,346)
Segment income and expenses
- - - - 15,615 15,615
Interest income - - - - - -
Other income - - - - - -
Other expenses - (5,322,762) - (350,110) (1,284,971) (6,957,843)
Loss before tax - (5,322,762) - (350,110) (1,269,356) (6,942,228)
NWQ (QLD) Cangai (NSW) Broken Hill (NSW)
2022 Zambia Unallocated Total
Segment assets and liabilities
$ $ $ $ $ $
Current assets - - - - 5,833,043 5,833,043
Non-current assets 6,271,129 5,454,684 544,180 1,034,333 121 13,304,447
Current liabilities - - - - (125,352) (125,352)
Segment income and expenses
Interest income - - - - 619 619
Other income - - - 144,509 - 144,509
Other expenses - - - - (1,798,311) (1,798,311)
Loss before tax - - - 144,509 (1,797,692) (1,653,183)
4. Other income and expenses
2023 2022
Other income $ $
Option fee - 144,509
Total other income - 144,509
Other expenses $ $
Travel and accommodation 6,780 252
Legal 7,860 37,678
Insurance 98,270 95,415
Foreign Exchange (Gains)/Losses (482) 164,792
Investor Relations 336,944 260,534
Other 36,460 22,149
Total other expenses 485,832 580,820
5. Income
Tax
2023 2022
$ $
(a) Income tax expense
Major component of tax expense for the year:
Current
tax
- -
Deferred
tax
- -
- -
(b) Numerical reconciliation between aggregate tax expense recognised in the
statement of comprehensive income and tax expense
calculated per the statutory income tax rate
A reconciliation between tax expense and the product of accounting result
before income tax multiplied by the Group's applicable tax rate is as follows:
Loss from continuing operations before income tax expense (6,942,228) (1,653,183)
Tax at the Australian rate of 30% (2022: 30%) (2,082,668) (495,955)
Non-allowable expenses - 25,929
Income tax benefit not bought to account 2,082,668 470,026
Income tax expense - -
(c) The following deferred tax balances have not been bought to account:
2023 2022
Assets $ $
Total losses available to offset against future taxable income 11,431,629 10,361,143
Total accrued expenses 12,461 9,867
Total share issue costs deductible over five years 285,972 483,299
Deferred tax liability on capitalised exploration costs (2,390,279) (3,549,693)
Deferred tax assets not brought to account as realisation is not regarded as
probable (9,339,783) (7,304,616)
Deferred tax asset recognised - -
2023 2022
$ $
(d) Unused tax losses
Unused tax losses 38,105,431 34,537,142
Potential tax benefit not recognised at 30% (2022: 30%) 11,431,629 10,361,143
The benefit for tax losses will only be obtained if:
(i) the Group derives future assessable income in
Australia of a nature and of an amount sufficient to enable the benefit from
the deductions for the losses to be realised;
(ii) the Group continues to comply with the
conditions for deductibility imposed by tax legislation in Australia; and
(iii) no changes in tax legislation in Australia,
adversely affect the Group in realising the benefit from the deductions for
the losses.
6. Cash and cash equivalents
Reconciliation of operating loss after tax to net the cash flows used in 2023 2022
operations $ $
Loss from ordinary activities after tax (6,942,228) (1,653,183)
Non-cash items
Share-based payments - 85,680
Consultancy and adviser fees settled in shares - 59,346
Impairment expense 5,672,872 -
Foreign exchange (gain)/loss (455) 164,792
Profit & loss items classed as investing activities
Consulting fees relating to exploration expenditure 150,000 -
Other income - option fee - (144,509)
Changes in assets and liabilities
Increase / (decrease) in trade and other payables 26,942 (60,167)
(Increase) / decrease in other receivables (7,236) 142,274
Net cash flow used in operating activities (1,100,105) (1,405,767)
(b) Reconciliation of cash
Cash balance comprises: Cash at bank
2,897,611 5,754,049
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
2023 2022
7. Other Assets $ $
Current
GST/VAT receivable 37,764 45,150
Prepayments 41,081 33,844
78,845 78,994
Non-Current
Tenement guarantees 486,961 404,961
There are no current tenement guarantees.
2023 2022
8. Deferred Exploration and Evaluation Expenditure $ $
Exploration and evaluation phase:
Opening balance 12,899,486 8,171,821
Exploration and evaluation expenditure during the period 1,509,584 4,727,665
Impairment(1) (5,672,872) -
Closing balance 8,736,198 12,899,486
The recoupment of costs carried forward in relation to areas of interest in
the exploration and evaluation phase is dependent on the successful
development and commercial exploration or sale of respective areas.
1At each reporting date, the Group undertakes an assessment of the carrying
amount of its exploration and evaluation assets. During the period, the Group
identified indicators of impairment on certain exploration and evaluation
assets under AASB 6 Exploration and Evaluation of Mineral Resources. As a
result of this review, an impairment charge of
$5,762,872 has been recognised in the statement of profit or loss and other
comprehensive income in relation to areas of interest where no future
exploration and evaluation activities are expected.
9. Trade and other payables 2023 2022
Current $ $
Trade and other payables 87,586 92,462
Accruals 40,758 32,890
128,344 125,352
Trade and other payables are non-interest bearing and payable on demand. Due
to their short-term nature, the carrying value of trade and other payables is
assumed to approximate their fair value.
10. Issued
Capital
2023 2022
(a) Issued and paid up
capital
$ $
Ordinary shares fully
paid
35,965,396 35,965,396
2023 2022
Number of Number of
shares $ shares $
(b) Movements in ordinary shares on issue
Opening balance 1,299,505,355 35,964,396 1,256,512,320 34,464,159
Shares issued to sophisticated investors - - 41,240,648 1,742,319
Shares issued to advisors - - 250,000 12,500
Shares issued to consultants - - 1,502,387 46,846
Transaction costs on share issue (301,428)
1,299,505,355 35,964,396 1,299,505,355 35,964,396
The shares issued to advisors and consultants were valued based on the fair
value of the service received.
(c) Ordinary shares
The Group does not have authorised capital nor par value in respect of its
issued capital. Ordinary shares have the right to receive dividends as
declared and, in the event of a winding up of the Company, to participate in
the proceeds from sale of all surplus assets in proportion to the number of
and amounts paid up on shares held. Ordinary shares entitle their holder to
one vote, either in person or proxy, at a meeting of the Company.
(d) Share options
At 30 June 2023 there were 132,699,971 (30 June 2022: 354,362,757) unlisted
options and 163,439,781 (30 June 2022: 224,939,782) listed options (ASX:
CCZOA, CCZOB) with various exercise prices and expiry dates.
The following share-based payment arrangements were in place during the
period:
Series Number Grant date Expiry date Exercise price Fair value at grant date Vesting date Listed/ Unlisted
$
1 17,000,000 16 May 2018 31 December 2023 $0.10 $0.018 16 May 2018 Unlisted
2 5,000,000 1 February 2019 31 December 2023 $0.05 $0.005 31 December 2018 Unlisted
3 1,582,353 2 October 2020 1 September 2023 £0.017 $0.023 2 October 2020 Unlisted
4 19,000,000 2 October 2020 30 September 2023 $0.05 $0.018 2 October 2020 Unlisted
5 14,285,714 15 June 2021 31 July 2024 $0.08 $0.022 15 June 2021 Listed
6 2,955,665 16 June 2021 1 August 2024 £0.044 $0.021 16 June 2021 Listed
7 2,418,044 5 August 2021 31 July 2024 $0.08 $0.007 5 August 2021 Listed
8 462,378 17 August 2021 1 August 2024 £0.044 $0.017 17 August 2021 Listed
9 4,000,000 27 October 2021 31 July 2024 $0.08 $0.007 27 October 2021 Listed
10 3,000,000 30 November 2021 31 July 2024 $0.08 $0.010 30 November 2021 Unlisted
11 8,000,000 1 February 2022 31 January 2025 $0.08 $0.007 1 February 2022 Unlisted
No options were exercised during the period.
221,662,786 unlisted and 61,500,000 listed options expired during the period.
Since the end of the financial year, 80,699,971 unlisted options have expired.
Options granted as equity compensation benefits to Key Management Personnel
during the year are set out in the audited remuneration report.
No listed or unlisted options have been issued since the end of the year.
Weighted remaining contractual life
(years) 0.57
Weighted average exercise
price
$0.0592
Options granted as equity compensation benefits to Key Management Personnel
during the year are set out in the audited remuneration report.
(e) Weighted average fair value
The fair value of the equity-settled unlisted options granted in prior periods
was estimated as at the date of grant using the Black and Scholes model taking
into account the terms and conditions upon which they were granted, as
follows:
Series
1 2 3 4 10 11
Expected volatility (%) 100 87 104 104 99 100
Risk-free interest rate (%) 1.90 2.00 0.18 0.18 0.87 1.21
Expected life of option (years) 5.6 4.9 2.9 3.0 2.7 3.0
Exercise price (cents/pence) 10 5 1.7p 5 8 8
Grant date share price (cents/pence) 3.9 1.6 2.6p 4.2 3.4 2.6
The expected life of the options is based on historical data and is not
necessarily indicative of exercise patterns that may occur. The expected
volatility reflects the assumption that the historical volatility is
indicative of future trends, which may also not necessarily be the actual
outcome. No other features of options granted were incorporated into the
measurement of fair value.
(f) Performance Shares
At 30 June 2023 there were 46,875,000 Class A performance shares and
46,875,000 Class B performance shares on issue in relation to the Zambian
tenements held by Zed Copper Pty Ltd.
46,875,000 Class A performance shares
Conditions precedent - converting to an equal number of CCZ shares on
delineation of a JORC resource of 200,000 tonnes of contained copper at a
minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement.
46,875,000 Class B performance shares
Conditions precedent - converting to an equal number CCZ shares on completion
of a preliminary feasibility study demonstrating an internal rate of return
greater than 25% within 5 years of execution of the Share Sale Agreement.
11. Reserves
Share based payment reserve
The share based payment reserve is used to record the value of equity benefits
provided to Directors and executives as part of their remuneration and
non-employees for their services.
Foreign currency translation reserve
The foreign exchange differences arising on translation of balances originally
denominated in a foreign currency into the functional currency are taken to
the foreign currency translation reserve. The reserve is recognised in profit
or loss when the net investment is disposed of.
12. Loss per Share
2023 2022
$ $
Loss used in calculating basic and dilutive
EPS
(6,942,228) (1,653,183)
Number of Shares
Weighted average number of ordinary shares used in
calculating basic loss per share: 1,299,505,355 1,294,183,748
Effect of dilution:
Share options - -
2023 2022
Adjusted weighted average number of ordinary shares
used in calculating diluted loss per share: 1,299,505,355 1,294,183,748
Basic and diluted loss per share (cents per share) (0.53) (0.13)
There have been no transactions involving ordinary shares or potential
ordinary shares that would significantly change the number of ordinary shares
or potential ordinary shares outstanding between the reporting date and the
date of completion of these financial statements.
There are no potential ordinary shares on issue that are considered to be
dilutive, therefore basic earnings per share also represents diluted earnings
per share.
13. Auditor's Remuneration 2023 2022
The auditor of Castillo Copper Limited is HLB Mann Judd. $ $
Amounts received or due and receivable for:
Audit or review of the financial report of the entity and any other entity in
the Group
46,358 40,851
46,358 40,851
14. Related party disclosures
a) Key management personnel
2023 2022
Compensation of key management personnel $ $
Short term employee benefits 360,553 389,221
Post-employment benefits 2,139 3,000
Share-based payments - 85,680
Total remuneration 362,692 477,901
b) Other transactions with key management personnel
Field Crew Pty Ltd, a company of which Mr Drakeley is a director, charged the
Group consulting fees of $115,135 (2022: nil). There was nil outstanding at 30
June 2023 (2022: nil).
c) Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and
results of Castillo Copper Limited and the following subsidiaries:
Name of Entity Country of Incorporation Equity Holding
2023 2022
Castillo Copper Chile SPA Chile 100% 100%
Castillo Exploration Limited Australia 100% 100%
Qld Commodities Pty Ltd Australia 100% 100%
Total Iron Pty Ltd Australia 100% 100%
Total Minerals Pty Ltd Australia 100% 100%
BHA No. 1 Pty Ltd Australia 100% 100%
Atlantica Holdings (Bermuda) Bermuda 75% 75%
Zed Copper Pty Ltd Australia 100% 100%
Chalo Mining Group Ltd Zambia 100% 100%
Luflilian Resources Zambia Ltd Zambia 100% 100%
Belmt Resources Mining Company Ltd Zambia 50% 50%
Broken Hill Alliance Ltd Australia - 100%
Castillo Copper Limited is the ultimate Australian parent entity and ultimate
parent of the Group. Balances and transactions between the Company and its
subsidiaries, which are related parties of the Company, have been eliminated
on consolidation and not disclosed in this note.
Broken Hill Alliance Ltd was incorporated during the year ended 30 June 2022
and was subsequently deregistered on 5 September 2022, after plans to spin-off
the BHA assets via an ASX listing were indefinitely deferred.
15. Financial Risk Management
Exposure to interest rate, liquidity, and credit risk arises in the normal
course of the Group's business. The Group does not hold or use derivative
financial instruments. The Group's principal financial instruments comprise
mainly of deposits with banks. The totals for each category of financial
instruments are as follows:
2023 2022
$ $
Financial Assets
Cash and cash equivalents 2,897,611 5,754,049
Other receivables (current and non-current) 524,725 450,111
3,422,336 6,204,160
Financial Liabilities
Trade and other payables 128,346 125,352
The Group uses different methods as discussed below to manage risks that arise
from these financial instruments. The objective is to support the delivery of
the financial targets while protecting future financial security.
(a) Capital Risk Management
The Group's capital comprises share capital and reserves less accumulated
losses. As at 30 June 2023, the Group has net assets of $12,071,269 (2022:
$19,012,138). The Group manages its capital to ensure its ability to continue
as a going concern and to optimise returns to its shareholders.
(b) Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting
obligations associated with financial liabilities. The Group manages liquidity
risk by maintaining sufficient cash facilities to meet the operating
requirements of the business and investing excess funds in highly liquid short
term investments. The responsibility for liquidity risk management rests with
the Board of Directors.
Alternatives for sourcing future capital needs include the cash position and
future equity raising alternatives. These alternatives are evaluated to
determine the optimal mix of capital resources for our capital needs. The
Board expects that, assuming no material adverse change in a combination of
our sources of liquidity, present levels of liquidity will be adequate to meet
expected capital needs.
Maturity analysis for financial liabilities
Financial liabilities of the Group comprise trade and other payables. As at 30
June 2023 any financial liabilities that are contractually maturing within 60
days have been disclosed as current. Trade and other payables that have a
deferred payment date of greater than 12 months have been disclosed as
non-current.
(c) Interest Rate Risk
Interest rate risk arises from the possibility that changes in interest rates
will affect future cash flows or the fair value of financial instruments. The
Group's exposure to changes to interest rate risk relates primarily to its
earnings on cash and term deposits. The Group manages the risk by investing in
short term deposits.
2023 2022
$ $
Cash and cash equivalents 2,897,611 5,754,049
Interest rate sensitivity
The following table demonstrates the sensitivity of the Group's statement of
comprehensive income to a reasonably possible change in interest rates, with
all other variables constant.
Change in Basis Points Effect on Post Tax Loss ($) Increase/(Decrease) Effect on Equity including retained earnings ($) Increase/(Decrease)
2023 2022 2023 2022
Increase 100 basis points 28,976 57,540 28,976 57,540
Decrease 100 basis points (28,976) (57,540) (28,976) (57,540)
A sensitivity of 100 basis points has been used as this is considered
reasonable given the current level of both short term and long term Australian
Dollar interest rates. This would represent two to four movements by the
Reserve Bank of Australia.
(d) Credit Risk Exposures
Credit risk represents the risk that the counterparty to the financial
instrument will fail to discharge an obligation and cause the Group to incur a
financial loss. The Group's maximum credit exposure is the carrying amounts on
the statement of financial position. The Group holds financial instruments
with credit worthy third parties.
At 30 June 2023, the Group held cash at bank. These were held with financial
institutions with a rating from Standard & Poors of AA- or above (long
term). The Group has no past due or impaired debtors as at 30 June 2023.
(e) Fair Value Measurement
There were no financial assets or liabilities at 30 June 2023 requiring fair
value estimation and disclosure as they are either not carried at fair value
or in the case for short term assets and liabilities, their carrying values
approximate fair value.
(f) Foreign Exchange
The Group undertakes certain transactions denominated in foreign currencies
hence exposures to exchange rate fluctuations arise. The Group does not manage
these exposures with foreign currency derivative products. The carrying
amounts of the Group's foreign currency denominated monetary assets and
monetary liabilities at the balance date expressed in Australian dollars are
as follows:
Chilean Peso (CLP)
2023 2022
$ $
Assets 103,800 86,432
Liabilities (12,932) (10,350)
90,868 76,082
British Pound Sterling (GBP)
2023 2022
$ $
Assets 639,899 3,542,364
Liabilities (15,432) (5,104)
624,467 3,537,260
The Group is exposed to Chilean Peso (CLP) and British Pound Sterling (GBP)
currency fluctuations.
The following table details the Group's sensitivity to a 10% increase and
decrease in the Australian dollar against the relevant foreign currencies. 10%
is the sensitivity rate used when reporting foreign currency risk internally
to key management personnel and represent management's assessment of the
possible change in foreign exchange rates. The sensitivity analysis includes
only outstanding foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates. The
sensitivity analysis includes external loans as well as loans to foreign
operations within the Group where the denomination of the loan is in a
currency other than the currency of the lender or the borrower. A positive
number indicates an increase in profit and equity where the Australian Dollar
weakens against the respective currency. For a strengthening of the Australian
Dollar against the respective currency there would be an equal and opposite
impact on the profit and equity and the balances below would be negative.
10% Increase
2023 2022
$ $
Profit/(loss) and equity - CLP 9,343 7,810
Profit/(loss) and equity - GBP 62,447 353,726
71,790 361,536
10% Decrease
2023 2022
$ $
Profit/(loss) and equity - CLP (9,343) (7,810)
Profit/(loss) and equity - GBP (62,447) (353,726)
(71,790) (361,536)
16. Parent Entity Information
The following details information related to the parent entity, Castillo
Copper Limited, at 30 June 2023. The information presented here has been
prepared using consistent accounting policies as presented in note 2.
2023 2022
$ $
Current assets 2,975,126 5,831,937
Non-current assets 8,454,557 10,479,490
Total assets 11,429,683 16,311,427
Current liabilities 115,952 115,003
Non-current liabilities - -
Total liabilities 115,952 115,003
Net assets 11,313,731 16,196,424
Issued capital 35,964,396 35,964,396
Reserves 4,230,962 4,230,962
Accumulated losses (28,881,627) (23,998,934)
Total equity 11,313,731 16,196,424
2023 2022
$ $
Loss of the parent entity 4,882,693 1,843,193
Other comprehensive income for the year - -
Total comprehensive loss of the parent entity 4,882,693 1,843,193
a) Guarantees
Castillo Copper Limited has not entered into any guarantees in relation to the
debts of its subsidiary.
b) Other Commitments and Contingencies
Castillo Copper Limited has not entered into any commitments and does not have
any known contingent liabilities at year end.
17. Contingent liabilities
The Company has entered into the following royalty agreements:
· 1% net smelter return royalty in respect of the area covered by
the tenements acquired from Qld Commodities Pty Ltd vendors (or their
nominee);
· 3% net smelter return royalty in respect of the area covered by
the tenements acquired from Total Minerals Pty Ltd vendors (or their nominee);
· 3% net smelter return royalty in respect of the area covered by
the tenements acquired from Total Iron Pty Ltd vendors (or their nominee).
· 2% net smelter return royalty in respect of the area covered by
the tenements acquired from Zed Copper Pty Ltd vendors (or their nominee).
Other than outlined above, there are no contingent liabilities.
18. Commitments
In order to maintain current contractual rights concerning its mineral
projects, the Group has certain commitments to meet minimum expenditure or
work program requirements. The current minimum commitments at balance date but
not recognised as liabilities are as follows:
2023 2022
$ $
Within one year 902,026 1,280,129
After one year but not more than five years 870,000 1,250,000
Longer than five years - -
1,772,026 2,530,129
19. Dividends
No dividend was paid or declared by the Group in the period since the end of
the financial year, and up to the date of this report. The Directors' do not
recommend that any amount be paid by way of a dividend for the financial year
ended 30 June 2023.
The balance of the franking account is Nil at 30 June 2023 (2022: Nil).
20. Share-based payments
(a) Shares issued to suppliers: There were no shares issued to suppliers
in lieu of cash payment during the year ended 30 June 2023.
(b) Reconciliation to share based payments expense in profit or loss:
2023 2022
$ $
Options issued to directors - 85,680
- 85,680
(c) Fair value of options
The fair value of all options noted above have been determined using the Black
& Scholes model taking in to account the inputs outlined in Note 11(e).
21. Subsequent events
There were no known material significant events from the end of the financial
year to the date of this report that have significantly affected, or may
significantly affect the operations of the Group, the results of those
operations, or the state of affairs of the Group in future financial periods.
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. END FR BRBDGDGGDGXXRecent news on Castillo Copper
See all newsREG - Castillo Copper Ltd - March 2024 Quarterly Activities Report
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AnnouncementREG - Castillo Copper Ltd - Board Changes
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