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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Aura Energy Limited | LSE:AURA | London | Ordinary Share | AU000000AEE7 | ORD NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.125 | 1.92% | 6.625 | 6.25 | 7.00 | 6.625 | 6.625 | 6.625 | 33,396 | 08:00:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Uranium-radium-vanadium Ores | 0 | -6.59M | -0.0119 | -10.92 | 36.05M |
From Feb 2023 to Feb 2025
TIDMAURA
RNS Number : 7109N
Aura Energy Limited
26 September 2023
0 Aura Energy Limited 0
26 September 2023
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Aura Energy Limited
("Aura" or the "Company")
Audited Financial Report for the year ended 30 June 2023
==========================================================
Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company") is pleased to announce that it has released its Audited Financial Report for the year ended 30 June 2023 ("Financial Report").
A full version of the Financial Report can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/7109N_1-2023-9-26.pdf
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
For Further Information, please contact:
David Woodall Paul Ryan
Managing Director and CEO Citadel-MAGNUS
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au Pryan@citadelmagnus.com
+61 409 296 511
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) James Bavister
David Hignell Andrew de Andrade
Kasia Brzozowska +44 (0) 207 220 1666
+44 (0) 203 470 0470
------------------------------
About Aura Energy (ASX:AEE, AIM:AURA)
Aura Energy is an Australian-based minerals company that
has major uranium and polymetallic projects with large resources
in Africa and Europe. The Company is now focused on uranium
production from the Tiris Project, a major greenfield uranium
discovery in Mauritania.
A recent Enhanced Feasibility Study has increased the project
NPV significantly which reconfirms Tiris as one of the lowest
capex, lowest operating cost uranium projects that remain
undeveloped in the world.
In October 2021, the Company entered a US$10m Offtake Financing
Agreement with Curzon, which includes an additional up to
US$10m facility, bringing the maximum available under the
agreement to US$20m.
In 2023, Aura will continue to transition from a uranium
explorer to a uranium producer, to capitalise on the rapidly
growing demand for nuclear power as the world continues to
shift towards a decarbonised energy sector.
@AuraEnergyAEE
https://www.linkedin.com/company/aura-energy-limited
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Aura Energy Limited
ABN 62 115 927 681
Audited Financial Report
for the year ended 30 June 2023
Aura Energy Limited 0
AURA ENERGY LIMITED
Audited Financial Report - 30 June 2023 TABLE OF CONTENTS
Directors' report 1
Directors and company secretary 1
Principal activities 1
Dividends - Aura Energy Limited 1
Review of operations 1
Material business risks 1
Signi cant changes in the state of a airs 3
Events since the end of the nancial year 3
Environmental regulation 3
Information on directors 4
Company secretary 7
Meetings of directors 7
Remuneration report 8
Proceedings on behalf of the company 14
Non-audit services 14
Auditor's independence declaration 14
Shares under option 14
Financial statements 17
Independent auditor's report to the members 52
Your directors present their report on the consolidated entity consisting of Aura Energy Limited and the entities it controlled at the end of, or during, the year ended 30 June 2023. Throughout the report, the consolidated entity is referred to as the Group.
DIRECTORS AND COMPANY SECRETARY
The following persons held o ce as directors of Aura Energy Limited during the nancial year:
Mr Philip Mitchell Dr Warren Mundine Mr Bryan Dixon
Mr Patrick Mutz
Mr David Woodall (appointed 17 October 2022)
The following persons held o ce as company secretary of Aura Energy Limited during the nancial year:
Mr Phillip Hains
PRINCIPAL ACTIVITIES
The principal activities of the Group during the nancial year were exploration and evaluation of uranium, vanadium and gold and base metals in Mauritania and Sweden. There was no signi cant change in the nature of these activities during the year.
DIVIDS - AURA ENERGY LIMITED
No dividends were declared or paid to members for the year ended 30 June 2023. The directors do not recommend that a
dividend be paid in respect of the nancial year.
REVIEW OF OPERATIONS
The Group's consolidated net loss for the year ended 30 June 2023 after providing for income tax amounted to $6,795,514 (2022: $3,403,791).
The loss for the period is primarily driven by:
-- General and administration expenses of $2,808,555 (2022: $1,470,842); -- Employee bene ts expenses of $913,929 (2022: $505,389); -- Share-based payments of $2,472,578 (2022: $1,187,254), o set by -- Interest income of $62,892 (2022: $1,676)
Included in the result for the nancial year is a loss from disposal group of $674,420 (2022: $275,696).
Cash and cash equivalents at 30 June 2023 was $11,238,716 (2022: $9,950,777). Capitalised exploration and evaluation assets was $27,248,300 (2022: $22,323,176).
MATERIAL BUSINESS RISKS
Management of the business and the execution of the Board's strategy are subject to a number of key risks and uncertainties, our approach to managing these is detailed below:
Health and safety
Exploration and mining include safety risks from both internal and external factors and require necessary precautions to be put in place to minimise adverse outcomes. The most prominent risk, due to the geological spread of exploration activities,
is associated with the transportation of personnel to and from project sites, particularly the risk of road injuries and fatalities. The Company has in place an OH&S policy that is required to be adhered to at all times by its employees and contractors and will implement additional policies and protocols as activity ramps up, including transportation standards policies, vehicle safety checks and establishing emergency response protocols.
Exploration and Development Risks
Mineral exploration and development activities are inherently risky. There is a risk that the feasibility study and associated technical work may not achieve the expected results and that a failure to develop and operate projects in accordance with expectations could negatively impact results of operations and the company's nancial position. Risks to the Company's development projects include the ability to acquire and/or obtain appropriate access to property, regulatory approvals, supply chain risks, construction and commissioning risks.
MATERIAL BUSINESS RISKS (CONTINUED)
Aura is continuing the FEED (Front End Engineering Design) studies for the Tiris Development Project, including optimisation strategies and incorporating outcomes from the Enhanced Feasibility Study released in the March 2023 Quarter. These studies aim to enhance the recovery of U3O8 within the leaching, ion exchange, and precipitation circuits to optimize the production pro le. The FEED work remains on schedule for completion in Q4 2023, with long-lead items already identi ed to ensure timely delivery for the Tiris Project's construction.
Community/Social Risk
The Group's operations take place amidst varying cultural practices. The evolving expectations of these communities are managed through active community engagement, development and implementation of community relations strategies based on stakeholder concerns and maintaining strong relationships with communities and delivering on its commitments.
Regulatory and Compliance Risk
The company faces challenges related to new or evolving regulations and standards that are beyond its control. These regulations are often complex and challenging to predict. Opportunities for growth and development may be at risk due to changes to scal or regulatory frameworks, adverse changes in tax or other law, di erences in sustainability standards and practices, or shifts in existing political, judicial, or administrative policies, as well as evolving community expectations.
Anti-Bribery and Corruption Risk
Aura has a clear policy alongside internal controls and procedures aimed at mitigating risks associated with Anti-Bribery
and Corruption, includes providing training and compliance programs to both employees and contractors. These programs address various risks and associated scenarios, including unauthorised payments or o ers of payments involving employees, agents, or distributors, which could potentially violate relevant anti-corruption laws.
Operations in Foreign Jurisdictions
The Company operates in foreign jurisdictions, speci cally in Mauritania and Sweden, where its projects are located. These projects are exposed to various risks, including the potential for unfavourable political and economic changes, uctuations and controls related to foreign currency, civil unrest, political upheavals, or con icts. Furthermore, unforeseen events can curtail or interrupt operations on these properties, restrict capital movement, or lead to increased taxation. The Company remains proactive and closely monitors the political and economic landscapes of the jurisdictions in which it operates.
Market Risk
The Company is developing mineral projects with the intention to produce commodities for sale across a variety of markets. Forecast of supply and demand dynamics and the pricing that may be received for those products is inherently complex and subject to factors outside of the Company's control. There is a risk that factors outside of the Company's control may negatively a ect markets. These factors could include geopolitical events, over supply or reduced demand. The Company mitigates this risk through e orts to engage o take contracts to ensure consistency in pricing and through diversi cation of products.
Funding Risk
The Company will require additional funding to bring the Tiris Uranium Project into production and advance the Häggån Polymetallic Project. There is a risk that funding may not be available on acceptable terms for these projects. The Company seeks to mitigate this risk by diversifying potential funding sources between debt, equity and other options. Additional work to derisk technical, social, environmental and permitting will increase the availability of funding options.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the directors there were no signi cant changes in the state of a airs of the Group that occurred during the
year.
EVENTS SINCE THE OF THE FINANCIAL YEAR
Subsequent to the end of the nancial year, the Company released the Scoping Study for its Häggån Project in Sweden which con rmed the scale and optionality of the Company's Critical Minerals Project in Sweden. Please refer to the announcement dated 5 September 2023 for more details.
No other matter or circumstance has arisen since 30 June 2023 that has signi cantly a ected the Group's operations, results or state of a airs, or may do so in future years.
ENVIRONMENTAL REGULATION
The Group is commencing exploration and evaluation activities in Mauritania and Sweden. Both countries have environmental regulation for the conduct of exploration activities. The Company has complied with these environmental regulations in the conduct of all eld activities.
The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER Act) which introduced a single national reporting framework for the reporting and dissemination of information about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of corporations. At the current stage of development, the directors have determined that the NGER Act has no e ect on the Company for the current, nor subsequent, nancial year. The directors will reassess this position as and when the need arises.
INFORMATION ON DIRECTORS
The following information is current as at the date of this report.
MR PHILIP MITCHELL NON-EXECUTIVE CHAIRMAN
Experience and Mr Mitchell has signi cant experience in mining
expertise M&A having held former roles as Head of Business
Development and Strategy at Rio Tinto, CFO of Rio
Tinto Iron Ore, member of the Executive Committee
at Anglo American and also headed acquisitions for
billionaire Robert Friedland's company, High Power
Exploration.
As Head of Business Development and Strategy at
Rio Tinto, Mr Mitchell was responsible for managing
all aspects of the company's asset and commodity
portfolio, including the Ranger uranium mine in
addition to the strategic positioning of the company.
Mr Mitchell was also accountable for portfolio M&A
acquisitions and divestments, in addition to the
daily management of the BHP takeover proposal.
As the Chief Financial O cer of Rio Tinto's iron
ore business, one the largest Australian business
units, he oversaw all commercial aspects of the
business including relationships with all JV partners
and with government. Mr Mitchell was also responsible
for developing the strategic plan that saw Rio Tinto
Iron Ore dominate pro table expansion to support
China's growth. In 2021, Mr Mitchell lead the acquisition
of the Nimba Iron Ore project for Robert Friedland's
HPX including the purchase arrangements with BHP,
Newmont and Orano and the negotiation of the agreements
with the Governments of Guinea and Liberia.
Mr Mitchell holds a Bachelor of Economics Degree
at the Australian National University
----------------------- ---------------------------------------------------------------
Date of appointment 21 December 2021
----------------------- ---------------------------------------------------------------
Other current None
public directorships
----------------------- ---------------------------------------------------------------
Former public None
directorships
in last 3 years
----------------------- ---------------------------------------------------------------
Interests in
shares and
options Shares 10,199,566
----------------------- ------------------------------ -------------------------------
Options -
------------------------------------------------------ -------------------------------
MR WARREN MUNDINE NON-EXECUTIVE DIRECTOR
Experience and Mr Nyunggai Warren Mundine AO is a member of the
expertise Bundjalung Indigenous Nation of Australia and a
descendant of the Gumbaynggirr and Yuin Indigenous
Nations of Australia. He is from Grafton, NSW.
Mr Mundine is a highly respected and in uential
businessman, political strategist and advocate for
empowering the Indigenous people of Australia to
build businesses and sustainable economies. He has
more than 40 years' experience working in the public,
private and community sectors. He has advised successive
Australian governments since 2004 and his appointment
as Chairman of the Prime Minister's Indigenous Advisory
Council from 2013 to 2017 follows a long career
in the public, business, policy, arts and community
sectors.
He is currently Chairman and Managing Director
of Nyungga Black Group, Chairman of the Australian
Indigenous Education Foundation and a Governor for
the Committee for the Economic Development of Australia,
Chairman of Fuse Minerals and Aura Energy, Director
- Indigenous Forum at the Centre for Independent
Studies and was previously Chairman of Real Futures,
RISE Ventures, NAISDA College, NAISDA Foundation
and the Australian Indigenous Chamber of Commerce,
among others.
----------------------- --------------------------------------------------------------
Date of appointment 21 December 2021
----------------------- -------------------------------------------------------------- Other current None public directorships ----------------------- -------------------------------------------------------------- Former public None directorships in last 3 years ----------------------- -------------------------------------------------------------- Interests in shares and options Shares 3,000,000 ----------------------- ------------------------------- ----------------------------- Options - ------------------------------------------------------- -----------------------------
MR BRYAN DIXON NON-EXECUTIVE DIRECTOR
Experience and Mr Dixon has extensive experience in the mining
expertise sector and the management of publicly listed companies.
Mr Dixon has held a numerous executive and director
roles with emerging resource companies. He was a
joint winner of the Mines and Money Asia-Paci c
Mining Executive of the Year in 2017.
Mr Dixon has held numerous director and management
roles with emerging resource companies, and was
the founding Managing Director of Blackham Resources
(ASX:BLK), now Wiluna Mining Corporation (ASX: WMC).
Previously, Mr Dixon was employed by an international
accounting rm, Resolute Limited and Archipelago
Resources, and specialises in project acquisition,
exploration, feasibility, nancing, development and
operations of mining projects to production.
Mr Dixon holds Bachelor of Commerce Degree at the
University of Western Australia. He is an Associate
Member of Chartered Accountants Australia and New
Zealand, and an Associate Member of Governance Institute
of Australia.
----------------------- --------------------------------------------------------------
Date of appointment 21 December 2021
----------------------- --------------------------------------------------------------
Other current Burley Minerals Ltd (ASX: BUR)
public directorships
----------------------- --------------------------------------------------------------
Former public Lithium Australia NL (ASX: LIT), until 27 January
directorships 2021
in last 3 years
----------------------- --------------------------------------------------------------
Interests in
shares and
options Shares 3,108,108
----------------------- ------------------------------- -----------------------------
Options -
------------------------------------------------------- -----------------------------
MR PATRICK MUTZ NON-EXECUTIVE DIRECTOR
Experience and Specialising in uranium projects in the USA, Australia
expertise and Africa, Mr Mutz holds over 40 years, of international
mining experience across technical, managerial,
consulting, executive and director roles, across
all aspects of the mining industry from exploration
through to project development, mining and mine
rehabilitation. He also has uranium operational
experience in open cut, underground, and in-situ
mining and related processing.
He formerly held the roles of Managing Director
& CEO of African focussed uranium company, Deep
Yellow (ASX: DYL), and Alliance Resources (ASX:
AGS). Mr Mutz also held the roles of General Manager
and Managing Director of General Atomics Technology
Co in California, USA, a company specialising in
research and technology development, including physics
research in support of nuclear ssion and nuclear
fusion technology.
Mr Mutz also previously served as Managing Director
and CEO of a number of private mining companies
based in Australia, primarily involved with project
development and transitioning companies from exploration
to production.
Mr Mutz is currently Managing Director & CEO of
Image Resources (ASX: IMA) ("Image"),
a Western Australian mineral sands mining company,
where he led Image through the successful transition
from advanced explorer to pro table mining company,
including feasibility study, capital raising, construction,
rapid commissioning and full production that led
to early repayment of all debt and payment of annual
dividends after only the second and third years
of operation. Mr Mutz holds a Bachelor of Science
with Honours and an MBA, both from the University
of Phoenix, and is a Fellow of AusIMM.
----------------------- -----------------------------------------------------------------
Date of appointment 18 May 2022
----------------------- -----------------------------------------------------------------
Other current Image Resources NL (ASX: IMA)
public directorships
----------------------- -----------------------------------------------------------------
Former public None
directorships
in last 3 years
----------------------- -----------------------------------------------------------------
Interests in
shares and
options Shares 2,000,000
----------------------- -------------------------------- -------------------------------
Options -
-------------------------------------------------------- -------------------------------
MR DAVID WOODALL MANAGING DIRECTOR & CEO
Experience and Mr Woodall is a senior, corporate executive with
expertise a mining engineering quali cation and 30 years'
experience across exploration, operations, project
development, community alignment and engagement
in the mineral resources industry including rare
earths, critical minerals, gold, copper, iron ore
and nickel.
He has broad international experience across the
value chain (operations, asset management, technical,
exploration, nancial, marketing, project development,
business development, strategy and investor engagement)
at operational, corporate and board levels to maximise
shareholder value.
Mr Woodall has overseen transformation and change
management in complex and di cult operating environments,
driving and linking strategic, operational and transformational
change strategies in organisations. His experience
in managing large, geographically distant teams
across multiple locations and di erent cultures.
He is a member of the Australian Institute of Mining
and Metallurgy (AusIMM) and a member of the Australian
Institute of Company Directors (AICD).
----------------------- ---------------------------------------------------------------------
Date of appointment 17 October 2022
----------------------- ---------------------------------------------------------------------
Other current None
public directorships
----------------------- ---------------------------------------------------------------------
Former public Australian Strategic Minerals Ltd (ASX: ASM), until
directorships 15 July 2022 Grange Resources Limited (ASX: GRR),
in last 3 years until 30 April 2021
----------------------- ---------------------------------------------------------------------
Interests in
shares and
options Shares 16,162,162
----------------------- --------------------------------- ----------------------------------
Options -
--------------------------------------------------------- ----------------------------------
COMPANY SECRETARY
The Company secretary is Mr Ross Kennedy (appointed 12 September 2023).
Ross is a Fellow, Australian Institute of Company Directors, Fellow, Governance Institute of Australia and a Chartered Accountant. He has over 30 year's experience in providing businesses with company secretarial, compliance and general management services.
MEETINGS OF DIRECTORS
The numbers of meetings of the Company's board of directors and of each board committee held during the year ended 30 June 2023, and the numbers of meetings attended by each director were:
Full meetings Meetings of committees
of directors
--------------------- ------------------------------------------------------------
Audit Remuneration
---------- --------- ------------------------------------- ---------------------
A B A B A B
Mr Philip Mitchell 8 8 - - - -
------------------- ---------
Dr Warren Mundine 6 8 1 2 1 1
------------------- ---------
Mr Bryan Dixon 8 8 2 2 1 1
------------------- ---------
Mr Patrick Mutz 8 8 2 2 1 1
------------------- ---------
Mr David Woodall 6 6 - - - -
------------------- ---------
A = Number of meetings attended
B = Number of meetings held during the time the director held o ce or was a member of the Audit & Risk Committee or the Remuneration & Nomination Committee during the year.
REMUNERATION REPORT
The directors present the Aura Energy Limited 2023 remuneration report, outlining key aspects of our remuneration policy and framework, and remuneration awarded this year.
The report is structured as follows:
(a) Key management personnel (KMP) covered in this report (b) Remuneration policy and link to performance (c) Remuneration expenses (d) Link between remuneration and performance (e) Share-based compensation (f) Other transactions with KMP
(A) KEY MANAGEMENT PERSONNEL COVERED IN THIS REPORT
Non-executive and executive directors (see pages 4 to 7 for details about each director) Mr Philip Mitchell , Non-Executive Chairman
Dr Warren Mundine , Non-Executive Director
Mr Bryan Dixon , Non-Executive Director
Mr Patrick Mutz , Non-Executive Director
Mr David Woodall , Managing Director & CEO (appointed 17 October 2022)
Other key management personnel
Dr Will Goodall , Chief Development O cer
(Acting Chief Executive O cer from 13 January 2022 to 16 October 2022)
(B) REMUNERATION POLICY AND LINK TO PERFORMANCE
Our remuneration committee is made up of independent non-executive directors. The committee reviews and determines our remuneration policy and structure annually to ensure it remains aligned to business needs, and meets our remuneration principles. In particular, the board aims to ensure that remuneration practices are:
-- competitive and reasonable, enabling the Company to attract and retain key talent
-- aligned to the Company's strategic and business objectives and the creation of shareholder value
-- transparent and easily understood, and -- acceptable to shareholders.
(C) REMUNERATION EXPENSES
The following table shows details of the remuneration expense recognised for the Group's executive key management personnel for the current and previous nancial year measured in accordance with the requirements of the accounting standards.
The following table shows details of remuneration expenses of each director or other key management personnel recognised
for the year ended 30 June 2023.
2023 Short-term bene ts Post- Long- Share-based
employment term payments
bene ts bene
ts
---------- ----------------------------------------------------------- ---------------- -------------------
Cash Long Loan funded
salary Cash Annual Super- service shares Total
and fees bonus leave Other annuation leave $ $
$ $ $ $ $ $
Non-executive
directors
------------------------ --------------------------------------------------------------------
Mr Philip Mitchell 60,000 - - - - - 776,394 836,394
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Dr Warren Mundine 36,199 - - - 3,801 - 209,734 249,734
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Mr Bryan Dixon 40,000 - - 30,500 - - 209,734 280,234
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Mr Patrick Mutz 36,199 - - - 3,801 - 62,540 102,540
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Non-executive
directors
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Mr David Woodall 310,764 - 27,007 - 25,208 175 500,323 863,477
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Other KMP
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Dr Will Goodall 364,800 50,000 19,997 - - 351 178,463 613,611
------------------------ --------- ------ ------ ------ ------ --- --------- ---------
Total KMP compensation 847,962 50,000 47,004 30,500 32,810 526 1,937,188 2,945,990
Notes
-- During the year ended 30 June 2023, the Group engaged Mr Bryan Dixon for consulting services. These services amounted to $30,500.
-- Cash bonus includes the amount paid or accrued in the year ended 30 June 2023 in relation to FY 2023 performance.
(C) REMUNERATION EXPENSES (CONTINUED)
The following table shows details of remuneration expenses of each director or other key management personnel recognised
for the year ended 30 June 2022.
2023 Short-term bene ts Post- employment Long- Share-based
bene ts term payments
bene ts
-------- -------------------------------------------- ------------------------------------ ------------------------
Cash Long Loan
salary Super- Other service funded
Annual annuation leave shares Total
and fees $ $ $ $ $
leave
$ $
Non-executive
directors
------------------------ -----------------------------------------------------
Mr Philip Mitchell 31,774 - - - - 474,902 506,676
------------------------ ------- ------ ------ ------ --------- ---------
Dr Warren Mundine 19,257 - - 1,926 - 118,725 139,908
------------------------ ------- ------ ------ ------ --------- ---------
Mr Bryan Dixon 21,183 - 17,000 - - 118,725 156,908
------------------------ ------- ------ ------ ------ --------- ---------
Mr Patrick Mutz 4,301 - - 430 - - 4,731
------------------------ ------- ------ ------ ------ --------- ---------
Mr Martin Rogers 75,000 - - - 75,000
------------------------ ------- ------ ------ ------ --------- ---------
Mr Peter Ward 40,000 - - - 40,000
------------------------ ------- ------ ------ ------ --------- ---------
Executive directors
------------------------ ------- ------ ------ ------ --------- ---------
Mr Peter Reeve 94,203 - - 9,420 - - 103,623
------------------------ ------- ------ ------ ------ --------- ---------
Other KMP
------------------------ ------- ------ ------ ------ --------- ---------
Dr Will Goodall 137,500 11,437 - - - 104,429 253,366
------------------------ ------- ------ ------ ------ --------- ---------
Total KMP compensation 423,218 11,437 17,000 11,776 - 816,781 1,280,212
Notes
-- During the year ended 30 June 2022, the Group also engaged Mr Bryan Dixon, Mr Patrick Mutz and Dr Will Goodall for consulting services prior to their appointments as KMP. These services amounted to $2,151, $12,563 and $47,700, respectively.
-- On 21 December 2021, the Group issued loan funded shares to Dr Will Goodall as an eligible consultant prior to his appointment as KMP. During the year ended 30 June 2022, $14,297 has been recognised as a share-based payment to Dr Goodall as a consultant.
-- Similarly, on 21 December 2021, the Group issued loan funded shares to Mr Peter Reeve as an eligible employee after his resignation as KMP. During the year ended 30 June 2022, $118,725 has been recognised as a share-based payment to Mr Reeve.
(D) LINK BETWEEN REMUNERATION AND PERFORMANCE
(i) Relative proportions of xed vs variable remuneration expense
The following table shows the relative proportions of remuneration that are linked to performance and those that are xed, based on the amounts disclosed as statutory remuneration expense on page 10 above:
Name Fixed remuneration STI LTI
--------------------------------------------------------------------------------------------
2023 2022 2023 2022 2023 2022
% % % % % %
Non-executive directors
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Philip Mitchell 7 6 - - 93 94
------------------------- ----------- -------- ---------- -------- ---------- --------
Dr Warren Mundine 16 15 - - 84 85
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Bryan Dixon 25 24 - - 75 76
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Patrick Mutz 39 100 - - 61 -
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Martin Rogers - 100 - - - -
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Peter Ward* - 100 - - - -
------------------------- ----------- -------- ---------- -------- ---------- --------
Executive directors
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr David Woodall 42 - - - 58 -
------------------------- ----------- -------- ---------- -------- ---------- --------
Mr Peter Reeve* - 100 - - - -
------------------------- ----------- -------- ---------- -------- ---------- --------
Other KMP
------------------------- ----------- -------- ---------- -------- ---------- --------
Dr Will Goodall 63 59 8 - 29 41
------------------------- ----------- -------- ---------- -------- ---------- --------
Notes
*Mr Peter Ward and Peter Reeve resigned on 21 December 2021
(E) SHARE-BASED COMPENSATION
(i) Terms and conditions of the share-based payment arrangements
Options
Aura Energy Limited operates an ownership-based scheme for directors and executives of the Group. In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors and executives may be granted options to purchase parcels of ordinary shares at an exercise price as determined at the time options are granted.
Each option converts into one ordinary share of the Group on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry.
The number of options granted is approved by shareholders at a previous annual general meeting. The scheme rewards directors and executives against the extent of the Group's and individual's achievement against criteria from the following measures:
-- improvement in share price -- improvement in return to shareholders
(i) Terms and conditions of the share-based payment arrangements (continued)
Loan funded securities
Aura Energy Limited operates a loan funded equity scheme for directors, executives and senior consultants of the Group.
In accordance with the provisions of the plan, as approved by shareholders at a previous annual general meeting, directors,
executives and senior consultants may be granted loan funded securities.
Each loan funded share converts into one ordinary share of the Group on issue. The loan funded shares rank equally with all
other fully paid ordinary shares on issue in the capital of the Group.
The number of loan funded shares granted is approved by shareholders at the annual general meeting of the Group.
For detailed disclosures please refer to Note 8(b).
(ii) Reconciliation of options, performance rights and ordinary shares held by KMP
Option holdings
2023 Balance at Granted Exercised Other Balance Vested
start as remuneration changes at end and exercisable
of the year 2 of the year
1 3
Options
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Mr Philip Mitchell - - - - - -
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Dr Warren Mundine - - - - - -
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Mr Bryan Dixon - - - - - -
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Mr Patrick - - - - - -
Mutz
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Mr David Woodall - - - - - -
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Dr Will Goodall 1,317,678 - - - 1,317,678 1,317,678
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
1,317,678 - - - 1,317,678 1,317,678
-------------------- ------------ ---------------------- --------- ------------ ------------ ------------------
Notes
1 Balance may include shares held prior to individuals becoming KMP. For individuals who became KMP during the period,
the balance is as at the date they became KMP.
2 Other changes incorporates changes resulting from the issue of options pursuant to rights issue.
3 For former KMP, the balance is as at the date they ceased being KMP.
(ii) Reconciliation of options, performance rights and ordinary shares held by KMP (continued)
Share holdings
2023 Balance at start Granted Other Balance
of the year 1 as remuneration changes at end
2 of the year
3
Ordinary shares
-------------------- ---------------- ---------------------- -------------- ------------
Mr Philip Mitchell 8,000,000 2,000,000 199,566 10,199,566
-------------------- ---------------- ---------------------- -------------- ------------
Dr Warren Mundine 2,000,000 1,000,000 - 3,000,000
-------------------- ---------------- ---------------------- -------------- ------------
Mr Bryan Dixon 2,000,000 1,000,000 108,108 3,108,108
-------------------- ---------------- ---------------------- -------------- ------------
Mr Patrick Mutz - 2,000,000 - 2,000,000
-------------------- ---------------- ---------------------- -------------- ------------
Mr David Woodall - 16,000,000 162,162 16,162,162
-------------------- ---------------- ---------------------- -------------- ------------
Dr Will Goodall 2,953,034 - - 2,953,034
-------------------- ---------------- ---------------------- -------------- ------------
14,953,034 22,000,000 469,836 37,422,870
-------------------- ---------------- ---------------------- -------------- ------------
Notes
1 . Balance may include shares held prior to individuals becoming KMP and exclude shares held by individuals who resigned
as KMP in prior year. For individuals who became KMP during the year, the balance is as at the date they became KMP.
2 Other changes incorporates changes resulting from the acquisition or disposal of shares. 3 For former KMP, the balance is as at the date they cease being KMP.
(F) OTHER TRANSACTIONS WITH KMP
There are no other transactions with key management personnel of Aura Energy Limited
(G) VOTING OF SHAREHOLDERS AT LAST YEAR'S ANNUAL GENERAL MEETING
Aura Energy Limited received more than 75% of favourable votes on its remuneration report for the 2022 nancial year.
The Group did not receive any speci c feedback at the 2022 annual general meeting or throughout the year on its
remuneration practices.
[This concludes the remuneration report, which has been audited]
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
NON-AUDIT SERVICES
During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity, its
related practices and non-related audit rms:
2022 2021
$ $
Taxation services
------------------------------------------ ------ -----
Hall Chadwick WA Audit Pty Ltd: Tax
compliance services 14,101 2,971
------------------------------------------ ------ -----
Total remuneration for taxation services 14,101 2,971
AUDITOR'S INDEPENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 16.
SHARES UNDER OPTION
(a) Unissued ordinary shares
Unissued ordinary shares of Aura Energy Limited under option at the date of this report are as follows:
Date options issued Expiry date Issue price Number under
of option
Shares
2021-05-28 (AEEAAB) 2024-06-30 $0.052 384,616
--------------------- ----------- ----------- ------------
2021-11-15 (AEEO) 2024-06-30 $0.052 89,221,366
--------------------- ----------- ----------- ------------
89,605,982
No option holder has any right under the options to participate in any other share issue of the Company or any other entity.
(b) Shares issued on the exercise of options
The following ordinary shares of Aura Energy Limited were issued during and after the year ended 30 June 2023 on the exercise
of options. No amounts are unpaid on any of the shares.
Date options issued Date options Issue price Number under
expire of option
Shares
2021-11-15 2024-06-30 $0.052 21,548,313
2021-03-17 2024-06-30 $0.052 2,384,615
2021-03-17 2024-06-30 $0.052 5,653,846
2021-03-17 2023-04-31 $0.104 1,923,076
-------------------- ------------ ----------- ------------
31,509,850
This report is made in accordance with a resolution of directors.
Mr David Woodall
Managing Director & CEO
26 September 2023
AURA ENERGY LIMITED
Audited Financial Report
- 30 June 2023
ABN 62 115 927 681
FINANCIAL STATEMENTS
Consolidated statement of pro t or loss and other comprehensive income
18
Consolidated statement of nancial position 19
Consolidated statement of changes in equity 2 0
Consolidated statement of cash ows (direct method) 22
Notes to the nancial statements 23
DIRECTORS' DECLARATION 51
INDEPENT AUDIT REPORT TO MEMBERS 5 2
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARED 30 JUNE 2023
Notes 2023 2022
$ $
Continuing operations
Other income 2(a) - 92,496
Other gains/(losses) 2(b) 11,076 (58,782)
------------- -------------
Employee bene ts (913,929) (505,389)
General and administration expenses 2(c) (2,808,555) (1,470,842)
Share-based payments 8 (2,472,578) (1,187,254)
------------- -------------
Operating loss (6,183,986) (3,129,771)
------------- -------------
Finance income 2(d) 62,892 1,676
------------- -------------
Loss before income tax (6,121,094) (3,128,095)
Income tax bene t 3 - -
------------- -------------
Pro t from continuing operations (6,121,094) (3,128,095)
Loss from disposal group 11(b) (674,420) (275,696)
------------- -------------
Loss for the year (6,795,514) (3,403,791)
Attributable to:
Owners of Aura Energy Limited (6,492,350) (3,573,298)
Non-controlling interests (303,164) 169,507
------------- -------------
(6,795,514) (3,403,791)
------------- -------------
Other comprehensive income
Exchange di erences on translation
of foreign operations (1,371,500) 333,919
------------- -------------
Other comprehensive income for the
year (1,371,500) 333,919
------------- -------------
Total comprehensive loss for the
year (8,167,014) (3,069,872)
------------- -------------
Attributable to: (7,855,170) (3,245,917)
Owners of Aura Energy Limited (311,844) 176,045
------------- -------------
Non-controlling interests (8,167,014) (3,069,872)
------------- -------------
Notes Cents Cents
Basic and diluted loss per share
for loss attributable to the ordinary
equity holders of the Company:
----------------------------------------- ------------ ------------- -------------
From continuing operations attributable
to the ordinary equity holders of
the company 18 (1.07) (0.73)
----------------------------------------- ------------ ------------- -------------
From continuing operations and disposal
group attributable to the ordinary
equity holders of the company (1.19) (0.79)
The above consolidated statement of pro t or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2023
Notes 2023 2022
$ $
ASSETS
Current Assets
Cash at banks 4(a) 11,238,716 9,950,777
Trade receivables 4(b) 63,203 21,501
Other current assets 80,112 155,246
Assets classi ed as disposal group 11 2,735,650 2,453,620
------------ ------------
Total current assets 14,117,681 12,581,144
------------ ------------
Plant and equipment 5,158 4,557
Exploration and evaluation 5(a) 27,248,300 22,323,176
------------ ------------
Total non-current assets 27,253,458 22,327,733
------------ ------------
Total assets 41,371,139 34,908,877
------------ ------------
LIABILITIES
Current liabilities
Trade and other payables 4(c) 1,310,087 1,201,706
Employee bene t obligations 5(b) 87,110 14,947
Other current liabilities 667 1,067
Liabilities directly associated with
assets classi ed as disposal group 11 170,980 76,707
------------ ------------
Total current liabilities 1,568,844 1,294,427
------------ ------------
Net assets 1,568,844 1,294,427
------------ ------------
EQUITY 39,802,295 33,614,450
------------ ------------
Share capital 6(a) 81,832,301 69,357,543
Other equity 314,346 314,346
Other reserves 6(b) 4,464,106 3,946,825
Accumulated losses (46,733,187) (40,240,837)
------------ ------------
Capital and reserves attributable to
owners of Aura Energy Limited 39,877,566 33,377,877
Non-controlling interests (75,271) 236,573
------------ ------------
Total equity 39,802,295 33,614,450
------------ ------------
The above consolidated statement of nancial position should be read in conjunction with the accompanying notes.
Attributable to owners of
Aura Energy Limited
Non-
Share Other Other Accumulated controlling Total
capital equity reserves losses Total interests equity
$ $ $ $ $ $ $
Balance at 1 July
2021 56,227,736 314,346 2,065,843 (36,607,011) 22,000,914 - 22,000,914
----------- -------- ------------ ------------- ------------ --------------------------- -----------
(Loss)/pro t for
the year - - - (3,573,298) (3,573,298) 169,507 (3,403,791)
Other
comprehensive
loss - - 327,381 - 327,381 6,538 333,919
----------- -------- ------------ ------------- ------------ --------------------------- -----------
Total
comprehensive
income/(loss)
for the year - - 327,381 (3,573,298) (3,245,917) 176,045 (3,069,872)
----------- -------- ------------ ------------- ------------ --------------------------- -----------
Transactions
with owners in
their
capacity as
owners:
Contributions of
equity, net of
transaction
costs and tax 7,787,082 - - - 7,787,082 - 7,787,082
Transfer to
non-controlling
interests - - - (60,528) (60,528) 60,528 -
Options issued - - 2,030,390 - 2,030,390 - 2,030,390
Options exercised 5,167,725 - (1,489,043) - 3,678,682 - 3,678,682
Performance
shares converted 175,000 - (175,000) - - - -
Loan funded
securities - - 1,187,254 - 1,187,254 - 1,187,254
----------- -------- ------------ ------------- ------------ --------------------------- -----------
13,129,807 - 1,553,601 (60,528) 14,622,880 60,528 14,683,408
----------- -------- ------------ ------------- ------------ --------------------------- -----------
Balance at 30
June 2022 69,357,543 314,346 3,946,825 (40,240,837) 33,377,877 236,573 33,614,450
----------- -------- ------------ ------------- ------------ --------------------------- -----------
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Aura Energy Limited 20
Attributable to owners of
Aura Energy Limited
Non-
Share Other Other Accumulated controlling Total
capital equity reserves losses Total interests equity
$ $ $ $ $ $ $
Balance at 1
July 2022 69,357,543 314,346 3,946,825 (40,240,837) 33,377,877 236,573 33,614,450
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
Loss for the
year - - - (6,492,350) (6,492,350) (303,164) (6,795,514)
Other
comprehensive
loss - - (1,362,820) - (1,362,820) (8,680) (1,371,500)
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
Total
comprehensive
loss for the
year - - (1,362,820) (6,492,350) (7,855,170) (311,844) (8,167,014)
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
Transactions
with owners in
their
capacity as
owners:
Contributions
of equity, net
of
transaction
costs and tax 69,357,543 - - - 9,936,597 - 9,936,597
Options
exercised 1,702,684 - - - 1,702,684 - 1,702,684
Transfer from
reserves on
exercise
of options 592,477 - (592,477) - - - -
Loan funded
securities - - 2,472,578 - 2,472,578 - 2,472,578
Shares issued
in lieu of
payment 243,000 - - - 243,000 - 243,000
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
12,474,758 - 1,880,101 - 14,354,859 - 14,354,859
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
Balance at 30
June 2023 81,832,301 314,346 4,464,106 (46,733,187) 39,877,566 (75,271) 39,802,295
----------- -------- ------------ ------------- ------------ ---------------------------- ------------
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Aura Energy Limited 21
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR
ED 30 JUNE 2023
Notes 2023 2022
$ $
Cash ows from operating activities
Payments to suppliers and employees
(inclusive of GST) (3,583,705) (2,692,262)
Interest received 62,892 1,676
------------- -------------
Net cash (out ow) from operating activities 9(a) (3,520,813) (2,690,586)
------------- -------------
Cash ows from investing activities
Payments for property, plant and equipment (2,457) (5,753)
Payments for exploration and evaluation (7,259,757) (2,723,064)
------------- -------------
Net cash (out ow) from investing activities (7,262,214) (2,728,817)
------------- -------------
Cash ows from nancing activities
Proceeds from issues of shares and other
listed securities 10,670,490 10,805,390
Share issue transaction costs (733,894) (1,216,818)
Repayment of borrowings - (312,500)
Exercise of options 1,702,284 3,679,749
------------- -------------
Net cash in ow from nancing activities 11,638,880 12,955,821
------------- -------------
Net increase in cash and cash equivalents 855,853 7,536,418
Cash and cash equivalents at the beginning
of the nancial period 10,706,700 3,206,855
E ects of exchange rate changes on cash
and cash equivalents (286,246) (36,573)
------------- -------------
Cash and cash equivalents at end of
year 4(a) 11,276,307 10,706,700
------------- -------------
The above consolidated statement of cash ows should be read in conjunction with the accompanying notes.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
1 SEGMENT INFORMATION
(A) DESCRIPTION OF SEGMENTS AND PRINCIPAL ACTIVITIES
The Group operates predominately in the mining industry. This comprises exploration and evaluation of uranium projects.
Inter-segment transactions are priced at cost to the consolidated Group.
The Group has identi ed its operating segments based on the internal reports that are provided to the board of directors on a monthly basis. Management has identi ed the operating segments based on the three principal project - uranium, vanadium and gold and base metals. The Group also maintains a corporate function primarily responsible for overall management of the operating segments, raising capital and distributing funds to operating segments.
Corporate expenses include administration and regulatory expenses arising from operating an ASX listed entity.
Segment assets include the costs to acquire tenements and the capitalised exploration costs of those tenements. Financial assets including cash and cash equivalents, and investments in nancial assets, are reported in the Treasury segment.
(B) FINANCIAL BREAKDOWN
The segment information for the reportable segments for the year ended 30 June 2023 is as follows:
2023 Uranium Vanadium Gold Corporate Total
$ $ and $ $
base
metals
$
Other gains - - - 11,076 11,076
------------ ----------- --------------- ------------ ------------
Total income - - - 11,076 11,076
Employee bene ts - - - (913,929) (913,929)
General & administration
expenses (687) (88,411) - (2,719,457) (2,808,555)
Share-based payments - - - (2,472,578) (2,472,578)
Finance costs - net (763,833) (544,760) - 1,371,485 62,892
Loss from disposal group - - (368,840) (305,580) (674,420)
------------ ----------- --------------- ------------ ------------
Loss for the year (764,520) (633,171) (368,840) (5,028,983) (6,795,514)
------------ ----------- --------------- ------------ ------------
Assets Segment assets 20,155,913 7,092,387 2,698,059 11,424,780 41,371,139
------------ ----------- --------------- ------------ ------------
Total assets 20,155,913 7,092,387 2,698,059 11,424,780 41,371,139
------------ ----------- --------------- ------------ ------------
Liabilities
Trade and other payables - - - 1,310,087 1,310,087
Provisions - - - 258,090 258,090
Financial liabilities - - - 667 667
------------ ----------- --------------- ------------ ------------
Total liabilities - - - 1,568,844 1,568,844
------------ ----------- --------------- ------------ ------------
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
1 SEGMENT INFORMATION (CONTINUED)
(B) FINANCIAL BREAKDOWN (CONTINUED)
The segment information for the reportable segments for the year ended 30 June 2022 is as follows:
2022 Uranium Vanadium Gold Corporate Total
$ $ and $ $
base
metals
$
Segment income - - - 92,496 92,496
Other gains/(losses) 920,600 (957,403) - (21,979) (58,782)
------------ ----------- --------------- ------------ ------------
Total income 920,600 (957,403) - 70,517 33,714
------------ ----------- --------------- ------------ ------------
Employee bene ts - - - (505,389) (505,389)
General & administration
expenses (299) (26,512) - (1,444,031) (1,470,842)
Share-based payments - - - (1,187,254) (1,187,254)
Finance costs - net (495,429) (239,749) - 736,854 1,676
Loss from disposal group - - 17,905 (293,601) (275,696)
------------ ----------- --------------- ------------ ------------
Loss for the year 424,872 (1,223,664) 17,905 (2,622,904) (3,403,791)
------------ ----------- --------------- ------------ ------------
Assets
Segment assets 15,680,668 6,642,508 1,694,213 10,891,488 34,908,877
------------ ----------- --------------- ------------ ------------
Total assets 15,680,668 6,642,508 1,694,213 10,891,488 34,908,877
------------ ----------- --------------- ------------ ------------
Liabilities
Trade and other payables - - - 1,201,706 1,201,706
Provisions - - - 91,654 91,654
Financial liabilities - - - 1,067 1,067
------------ ----------- --------------- ------------ ------------
Total liabilities - - - 1,294,427 1,294,427
------------ ----------- --------------- ------------ ------------
2 OTHER INCOME AND EXPENSE ITEMS
(A) OTHER INCOME
2023 2022
$ $
Other income - 92,496
-------------- ------
- 92,496
-------------- ------
(B) OTHER GAINS/(LOSSES)
2023 2022
$ $
Net gain/(loss) on foreign currency 11,076 (58,782)
--------
11,076 (58,782)
--------
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
2 OTHER INCOME AND EXPENSE ITEMS (CONTINUED)
(C) BREAKDOWN OF EXPENSES BY NATURE
2023 2022
$ $
General and administration expenses
Accounting and audit (433,602) (419,511)
Computers and communication (110,207) (41,429)
Consulting (930,247) (345,378)
Depreciation (1,856) (1,196)
Insurance (185,809) 2,610
Investor relations (177,576) (144,841)
Legal (70,508) (116,693)
Listing and share registry (216,448) (274,895)
Occupancy (38,561) (24,796)
Travel and entertainment (484,014) (96,176)
Other (159,727) (8,537)
----------- -----------
(2,808,555) (1,470,842)
----------- -----------
(D) FINANCE INCOME
2023 2022
$ $
Finance income
Interest from nancial assets not at fair value
through pro t or loss 62,892 1,676
------ -----
62,892 1,676
------ -----
3 INCOME TAX EXPENSE
(A) INCOME TAX EXPENSE
2023 2022
$ $
Income tax expense - -
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
3 INCOME TAX EXPENSE (CONTINUED)
(B) NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE
2023 2022
$ $
Loss from continuing operations before income
tax expense (6,121,094) (3,128,095)
(Loss)/pro t from disposal group before income
tax expense (674,420) (275,696)
------------------- ------------------
(6,795,514) (3,403,791)
Tax at the Australian tax rate of 25% (2022:
25%)
Tax e ect of amounts which are not deductible (1,698,879) (850,948)
(taxable)
in calculating taxable income: Share-based
payments 618,145 296,814
Other 76,383 140,703
Unrealised currency (gains)/losses 330,730 (42,562)
Superannuation liability 284 (12,999)
Employee leave obligations 24,295 (42,745)
------------------- ------------------
Subtotal (649,042) (511,737)
Di erence in overseas tax rates 7,410 11,091
Tax losses and other timing di erences for
which no deferred
tax asset is recognised 641,632 500,646
------------------- ------------------
Income tax expense/(bene t) - -
------------------- ------------------
(C) TAX LOSSES
2023 2022
$ $
Unused tax losses for which no deferred tax
asset has been recognised 24,929,202 22,362,674
---------- ----------
Potential tax bene t @ 25% (2022: 25%) 6,232,301 5,590,669
---------- ----------
The unused tax losses were incurred by a dormant subsidiary that is not likely to generate taxable income in the foreseeable future. They can be carried forward inde nitely.
4 FINANCIAL ASSETS AND FINANCIAL LIABILITIES
(A) CASH AND CASH EQUIVALENTS
For the purpose of the consolidated statement of cash ows, cash and cash equivalents comprise the following at 30 June:
2023 2022
$ $
Current assets Cash at banks 11,238,716 9,950,777
Cash at banks attributable to disposal group 37,591 755,923
------------ -----------
Cash and cash equivalents 11,276,307 10,706,700
------------ -----------
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
4 FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
(A) CASH AND CASH EQUIVALENTS (CONTINUED) (i) Classi cation as cash equivalents
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are repayable with 24 hours notice with no loss of interest. See Note 20(f) for the Group's other accounting policies on cash and cash equivalents.
(B) TRADE AND OTHER RECEIVABLES
2023 2022
Current Non- Total Current Non- Total
$ current $ $ current $
$ $
Other receivables 63,203 - 63,203 21,501 - 21,501
------- ------- ------ ------- ------- ------
(i) Fair value of trade and other receivables
Due to the short-term nature of the current receivables, their carrying amount is considered to be the same as their fair value.
(C) TRADE AND OTHER PAYABLES
2023 2022
Current Non- Total Current Non- Total
$ current $ $ current $
$ $
Trade payables 125,694 - 125,694 251,814 - 251,814
Accrued expenses 1,158,818 - 1,158,818 938,297 - 938,297
Payroll tax and other
statutory 24,101 - 24,101 7,926 - 7,926
liabilities 1,474 - 1,474 3,669 - 3,669
--------- ------- --------- --------- ------- ---------
Other payables 1,310,087 - 1,310,087 1,201,706 - 1,201,706
--------- ------- --------- --------- ------- ---------
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
5 NON-FINANCIAL ASSETS AND LIABILITIES
(A) EXPLORATION AND EVALUATION
Opening net book amount
Expenditure capitalised during the nancial period Exchange di erences
22,323,176
7,116,545
(1,187,576)
20,396,634
3,237,264
383,491
Assets transferred to disposal group (1,003,846) (1,694,213)
Closing net book value
27,248,300
22,323,176
The value of the Group's interest in exploration expenditure is dependent upon:
-- The continuance of the Group's right to tenure of the areas of interest; -- The result of future exploration; and
-- The recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by
their sale.
The Group's exploration properties may be subjected to claim(s) under Native Title (or jurisdictional equivalent), or contain sacred sites, or sites of signi cance to the indigenous people of Sweden and Mauritania.
As a result, exploration properties or areas within the tenements may be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify whether such claims exist, or the quantum of such claims.
As of 30 June 2023, the Company was awaiting the granting of the exploitation permit for the Oum Ferkik tenement for the Tiris Project and exploration renewal permits for Hadeibet Bellaa and Touerig Taet tenements, held by TIMCO. The Company has received con rmation from the Ministry of Petroleum, Mines, and Energy (MPME) that the tenements have been registered for renewal and that all fees have been paid in accordance with the regulatory provisions. The renewal permits
are expected to follow normal route and will be issued following the reopening of the Mining Cadastre in Q4 2023.
The consolidated entity has ful lled its exploration obligation relating to the Nderk tenement, thereby earning a 70% equity interest in Nomads Mining sarl. It is currently in the process of completing the necessary documentation to formalise this arrangement. Similar to the tenement status for the Hadeibet Bellaa and Touerig Taet permits, a renewal application for the exploration permit for the Nderk tenement is pending as at 30 June 2023. The Company has received con rmation from the MPME that the Nderk tenement has been registered for renewal and that all fees have been paid in accordance with the regulatory provisions and that the renewal permit will follow normal route and will be issued following the reopening of the Mining Cadastre in Q4 2023.
As of 30 June 2023, the carrying value of the exploration and evaluation assets for the Oum Ferkik tenement was $120,721, and the Tasiast South Gold Project (Hadeibet Bellaa, Touerig Taet and Nderk tenements) was $2,698,059. The Group's Tasiast South Gold Project has been classi ed as part of the Group's held for sale assets. Please refer to note 11 for more details.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
5 NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
(B) EMPLOYEE BENEFIT OBLIGATIONS
2023 2022
Current Non- Total Current Non- Total
$ current $ $ current $
$ $
Leave obligations (i) 87,110 - 87,110 14,947 - 14,947
------- ------- ------ ------- ------- ------
(i) Leave obligations
The leave obligations cover the Group's liabilities for long service leave and annual leave which are classi ed as either other long-term bene ts or short-term bene ts, as explained in Note 20(i).
The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service leave where employees have completed the required year of service and also for those employees that are entitled to pro-rata payments in certain circumstances. The entire amount of the provision of $87,110 (2022: $14,947) is presented as current, since the Group does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.
6 EQUITY
(A) SHARE CAPITAL
Ordinary shares Fully paid
616,484,204
503,825,028
81,832,301
69,357,543
Total share capital 616,484,204 503,825,028 81,832,301
69,357,543
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
6 EQUITY (CONTINUED)
(A) SHARE CAPITAL (CONTINUED)
(i) Movements in ordinary shares:
Details Number of Total
shares $
Balance at 1 July 2021 395,962,187 56,227,736
------------------------------------------------ ----------- -----------
Shares issued on conversion of performance
rights, valued at $0.273 (3 Aug 2021) 641,025 175,000
Shares issued at $0.104 on exercise of options
(23 Sep 2021) 2,553,420 265,556
Shares issued at $0.052 on exercise of options
(15 Oct 2021) 5,384,614 280,000
Shares issued at $0.098 on exercise of options
(18 Oct 2021) 1,538,461 150,769
Shares issued at $0.104 on exercise of options
(19 Nov 2021) 384,615 40,000
Shares issued at $0.052 on exercise of options
(7 Dec 2021) 10,083,251 524,329
Shares issued at $0.052 on exercise of options
(21 Dec 2021) 4,178,812 217,298
Shares issued at $0.052 on exercise of options
(5 Jan 2022) 149,353 7,766
Shares issued at $0.052 on exercise of options
(18 Jan 2022) 1,754,252 91,221
Shares issued at $0.052 on exercise of options
(1 Feb 2022) 416,238 21,644
Shares issued at $0.052 on exercise of options
(17 Feb 2022) 929,407 48,329
Shares issued at $0.052 on exercise of options
(3 Mar 2022) 465,294 24,195
Shares issued at $0.250 pursuant to placement
(17 Mar 2022) 35,200,000 8,800,000
Shares issued at $0.052 on exercise of options
(23 Mar 2022) 2,237,476 116,349
Shares issued at $0.208 on exercise of options
(23 Mar 2022) 2,000,000 416,000
Directors and consultants loan funded shares 20,000,000 -
issued (1 Apr 2022)
Shares issued at $0.052 on exercise of options
(6 Apr 2022) 7,056,673 366,947
Shares issued at $0.052 on exercise of options
(21 Apr 2022) 8,027,502 417,430
Shares issued at $0.208 on exercise of options
(3 May 2022) 2,807,692 584,000
Shares issued at $0.052 on exercise of options
(20 May 2022) 2,054,756 106,847
Transfer from reserves on exercise of options
during the period - 1,489,045
Less: Transaction costs arising on share issues - (1,012,918)
------------------------------------------------ ----------- -----------
Balance at 30 June 2022 503,825,028 69,357,543
------------------------------------------------ ----------- -----------
Number of Total
shares $
Shares issued at $0.052 on exercise of options
(19 Jul 2022) 7,692 400
Shares issued at $0.052 in lieu payment of
services (19 Jul 2022) 1,500,000 78,000
Shares issued at $0.052 in lieu payment of
services (19 Jul 2022) 660,000 165,000
Shares issued at $0.052 on exercise of options
(12 Sep 2022) 385,865 20,065
Shares issued at $0.052 on exercise of options
(30 Sep 2022) 5,600,583 291,230
Shares issued at $0.052 on exercise of options
(4 Oct 2022) 6,999,930 363,996
Shares issued at $0.052 on exercise of options
(14 Oct 2022) 11,569,585 601,618
Shares issued at $0.052 on exercise of options
(4 Nov 2022) 869,563 45,217
Shares issued at $0.052 on exercise of options
(18 Nov 2022) 505,000 26,260
Directors loan funded shares issued (21 Dec 22,000,000 -
2022)
Shares issued at $0.052 on exercise of options
(7 Dec 2022) 707,641 36,797
Shares issued at $0.052 on exercise of options
(13 Jan 2023) 247,594 12,875
Shares issued at $0.104 on exercise of options
(13 Jan 2023) 1,923,076 200,000
Shares issued at $0.052 on exercise of options
(3 Feb 2023) 466,823 24,275
Shares issued at $0.052 on exercise of options
(20 Feb 2023) 1,183,128 61,523
Shares issued at $0.052 on exercise of options
(6 Mar 2023) 13,332 693
Shares issued at $0.052 on exercise of options
(20 Mar 2023) 332,692 17,300
Shares issued pursuant to Private Placement
(10 May 2023) 54,054,055 10,000,000
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
6 EQUITY (CONTINUED)
(A) SHARE CAPITAL (CONTINUED)
Number of Total
shares $
Shares issued at $0.052 on exercise of options
(25 May 2023) 847 44
Shares issued at $0.052 on exercise of options
(2 Jun 2023) 7,499 390
Shares issued pursuant to Share Purchase
Plan (SPP) (20 Jun 2023) 3,624,271 670,490
Transfer from reserves on exercise of options
during the period - 592,478
Less: Transaction costs arising on share
issues - (733,894)
Balance at 30 June 2023 616,484,204 81,832,301
(B) OTHER RESERVES
The following table shows a breakdown of the consolidated statement of nancial position line item 'other reserves' and the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
Share-based Foreign Total
payments currency other
$ translation reserves
$ $
At 1 July 2021 1,593,238 472,605 2,065,843
Currency translation di erences - 327,381 327,381
Other comprehensive income - 327,381 327,381
Transactions with owners in their capacity
as owners Issue of options 2,030,390 - 2,030,390
Options exercised (1,489,043) - (1,489,043)
Conversation of performance shares (175,000) - (175,000)
Loan funded securities 1,187,254 - 1,187,254
At 30 June 2022 3,146,839 799,986 3,946,825
At 1 July 2022 3,146,839 799,986 3,946,825
Currency translation di erences - (1,362,820) (1,362,820)
Other comprehensive income - (1,362,820) (1,362,820)
Transactions with owners in their capacity
as owners Transfer from reserves on exercise
of options (592,477) - (592,477)
Loan funded securities 2,472,578 - 2,472,578
At 30 June 2023 5,026,940 (562,834) 4,464,106
(i) Nature and purpose of other reserves Foreign currency translation
Exchange di erences arising on translation of the foreign controlled entity are recognised in other comprehensive income as described in Note 20(d) and accumulated in a separate reserve within equity. The cumulative amount is reclassi ed to pro t or loss when the net investment is disposed of.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
7 OPTIONS
Set out below are summaries of all listed and unlisted options:
2023 2022
Average exercise Number Average Number
price per option of options exercise of
price options
per option
As at 1 July $0.05 122,584,284 $0.08 40,249,998
Granted during the year - - $0.05 135,359,309
Expired during the year $0.10 (1,116,452) $0.29 (1,003,206)
Exercised during the year $0.06 (30,820,850) $0.07 (52,021,817)
As at 30 June $0.05 90,646,982 $0.05 122,584,284
Share options outstanding at the end of the year have the following expiry date and exercise prices:
17 March 2021
17 March 2021
28 May 2021
31 March 2023
30 June 2024
30 June 2024
0.104
0.052
0.052
-
- 384,616
3,039,528
384,616
8,038,461
15 November 2021
30 June 2024
0.052
90,262,366 111,121,679
Weighted average remaining contractual life of options outstanding at 30 June
90,646,982
1.00
122,584,284
1.97
8 SHARE-BASED PAYMENTS
(A) PERFORMANCE RIGHTS
On 17 June 2018 the Group approved the award of 15,000,000 performance rights (pre consolidation) to Messrs Neil Cli ord, John Madden and Dr Will Goodall with the board of directors ratifying the award on 4 September 2018. The performance rights were awarded under the Employee Share Plan.
The following tranches set out the vesting periods for the award of performance rights to the above-mentioned management
of the Company. Each tranche consists of 5,000,000 (pre consolidation) or 384,615 (post consolidation), vested as follows:
-- Tranche 1 on 17 June 2019 -- Tranche 2 on 17 June 2020 -- Tranche 3 on 17 June 2021
John Madden resigned on 22 December 2020 and is not entitled to his share of Tranche 3 performance rights.
On 3 August 2021, the Group converted the remaining Tranche 2 and Tranche 3 performance right into 641,025 ordinary shares
of the Group.
(B) LOAN FUNDED SHARES
During the nancial year ended 30 June 2023, $2,472,578 (30 June 2022: $1,187,254) has been recognised as a share-based payment expense incurred from 20 million and 22 million loan funded shares which were granted in December 2021 and November 2022, respectively.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
8 SHARE-BASED PAYMENTS (CONTINUED)
(B) LOAN FUNDED SHARES (CONTINUED)
At the AGM on 21 December 2021, the shareholders approved the issue of loan funded shares to directors, executives and senior consultants (2021 Loan Funded Shares). The 2021 Loan Funded Shares were issued at $0.25 and have the following vesting conditions:
-- Tranches 1, 2 and 3: -- Continuous employment/engagement with the Group; and -- Tranche 1:
-- when the daily volume weighted average price (VWAP) of the Group's Shares meets the share price performance hurdle of $0.50 on 10 days on any 20 sequential trading days; and
-- eligible to vest 12 months after grant date; -- Tranche 2:
-- when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and
-- eligible to vest 24 months after grant date; -- Tranche 3:
-- when the daily VWAP of the Group's shares meets the share price performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and
-- eligible to vest 36 months after grant date.
The loan funded shares granted have been valued using a Monte Carlo Simulation, taking into account the terms and conditions upon which the loan funded shares were granted. The valuation of 2021 Loan Funded Shares for Key Management Personnel and consultants is summarised as follows:
2021 Loan Funded Shares
Key Management Personnel Tranche 1 Tranche 2 Tranche 3
Share price hurdle $0.50 $0.75 $1.00
Share price at grant
date $0.245 $0.245 $0.245
Grant date 21 December 2021 21 December 21 December
2021 2021
Expected volatility 145.6% 145.6% 145.6%
Expiry date 21 December 2026 21 December 21 December
2026 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 21 December
2021 2021
Expected volatility 145.6% 145.6% 145.6%
Expiry date 21 December 2026 21 December 21 December
2026 2026
Expected dividends - - -
Risk Free interest
rate 1.35% 1.35% 1.35%
Value per loan share $0.2313 $0.2273 $0.1987
Number of loan shares 1,200,000 1,800,000 3,000,000
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
8 SHARE-BASED PAYMENTS (CONTINUED)
(B) LOAN FUNDED SHARES (CONTINUED)
At the AGM on 29 November 2022 the shareholders approved the issue of loan funded shares to directors (2022 Loan Funded Shares). The 2022 Loan Funded Shares were issued at $0.30 and have the following vesting conditions:
-- Tranches 1, 2 and 3: -- Continuous employment/engagement with the Group; and -- Tranche 1:
-- when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.50 on 10 days on any 20 sequential trading days; and
-- eligible to vest 12 months after grant date; -- Tranche 2:
-- when the daily VWAP of the Group's shares meets the share price performance hurdle of $0.75 on 10 days on any 20 sequential trading days; and
-- eligible to vest 24 months after grant date; -- Tranche 3:
-- when the daily VWAP of the Group's shares meets the share price performance hurdle of $1.00 on 10 days on any 20 sequential trading days; and
-- eligible to vest 36 months after grant date.
The loan funded shares granted have been valued using a Monte Carlo Simulation, taking into account the terms and conditions upon which the loan funded shares were granted. The valuation of 2022 Loan Funded Shares is summarised as follows:
2022 Loan Funded Shares
Key Management Personnel Tranche 1 Tranche 2 Tranche 3
Share price hurdle $0.50 $0.75 $1.00
Share price at grant
date $0.25 $0.25 $0.25
Grant date 29 November 2022 29 November 29 November
2022 2022
Expected volatility 82% 82% 82%
Expiry date 29 November 2027 29 November 29 November
2027 2027
Expected dividends - - -
Risk Free interest
rate 3.18% 3.18% 3.24%
Value per loan share $0.0765 $0.0874 $0.0991
Number of loan shares 8,800,000 6,600,000 6,600,000
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
9 CASH FLOW INFORMATION
(A) RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Notes 2023 2022
$ $
Loss for the year (6,795,514) (3,403,791)
Adjustments for
Depreciation and amortisation 2(c) 1,856 1,196
Exchange uctuation (15,470) 25,720
Share-based payments 2,472,578 1,187,254
Change in operating assets and liabilities, net of e ects from
purchase of controlled entity and sale of engineering division:
(Increase) in trade receivables (41,702) (20,703)
(Increase)/decrease in other operating assets (45,483) 23,072
Increase/(decrease) in trade creditors 134,263 (319,860)
Increase/(decrease) in other operating liabilities 768,659 (183,474)
Net cash in ow (out ow) from operating activities (3,520,813) (2,690,586)
(B) NON-CASH INVESTING AND FINANCING ACTIVITIES
Non-cash investing and nancing activities disclosed in other notes are:
-- Loan funded shares issued for no cash consideration - Note 8.
10 FINANCIAL RISK MANAGEMENT
(A) MARKET RISK
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will a ect the Group's income or the value of its holdings of nancial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
The board meets on a regular basis and considers the Group's exposure currency and interest rate risk.
(i) Foreign exchange risk
The Group has exposure to foreign currency risk in relation to US dollars for assets the Group holds in Mauritania.
The following table illustrates sensitivities to the Group's exposures to changes in the AUD/USD exchange rate. The table indicates the impact on how pro t and equity values reported at balance date would have been a ected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables.
The table below sets out the nancial impact of the strengthening or weakening of the Australian dollar against the US dollar on a pro t after tax and equity basis as at the end of the nancial year, with all other variables constant.
Exposure
The Group's exposure to foreign currency risk at the end of the reporting year, expressed in Australian dollar, was as follows:
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
10 FINANCIAL RISK MANAGEMENT (CONTINUED)
(A) MARKET RISK (CONTINUED)
2023 2022
USD MRU GBP SEK EUR USD MRU GBP SEK EUR
$ $ $ $ $ $ $ $ $ $
Cash and
cash
equivalents 50,135 49,785 8,552 79,905 60,554 310,448 19,430 285,449 854 10,785
Trade
payables 6,021 - - 11,130 - 42,467 - - 10,540 -
Sensitivity
The Group has conducted a sensitivity analysis of its exposure to foreign currency risk. The Group is currently materially exposed to the United States dollar (USD) and the Pound Sterling (GBP). 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 2023, keeping all the other variables constant.
Impact on post-tax pro t
2023 2022
$ $
USD/AUD exchange rate - increase 10%* 5,616 35,292
MRU/AUD exchange rate - increase 10%* 4,979 1,943
GBP/AUD exchange rate - increase 10%* 855 28,545
SEK/AUD exchange rate - increase 10%* 9,103 1,139
EUR/AUD exchange rate - increase 10%* 6,055 1,079
* Holding all other variables constant
(ii) Cash ow and fair value interest rate risk
The Group's main interest rate risk arises from cash and cash equivalents held, which expose the Group to cash ow interest rate risk. During 2023 and 2022, the Group's cash and cash equivalents at variable rates were denominated in Australian dollars.
The Group's exposure to interest rate risk at the end of the reporting year, expressed in Australian dollars, was as follows:
2023 2022
$ $
Financial instruments with cash ow
risk
Cash at banks 11,238,716 9,950,777
(B) CREDIT RISK
Exposure to credit risk relating to nancial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a nancial loss to the Group.
There has been an increase in the Group's exposure to credit risk in 2023 due to increased cash and cash equivalents. The Group's exposure to other classes of nancial assets with credit risk is not material.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
10 FINANCIAL RISK MANAGEMENT (CONTINUED)
(B) CREDIT RISK (CONTINUED) (i) Risk management
Risk is minimised through investing surplus funds in nancial institutions that maintain a high credit rating.
(ii) Impairment of nancial assets
While cash and cash equivalents and deposits at call are subject to the impairment requirements of AASB 9, the identi ed
impairment loss was immaterial.
(C) LIQUIDITY RISK
Liquidity risk arises from the possibility that the Group might encounter di culty in settling its debts or otherwise meeting its obligations related to nancial liabilities. The Group manages this risk through the following mechanisms:
-- preparing forward looking cash ow analyses in relation to its operating, investing and nancing activities;
-- obtaining funding from a variety of sources; -- maintaining a reputable credit pro le; -- managing credit risk related to nancial assets;
-- investing cash and cash equivalents and deposits at call with major nancial institutions; and
-- comparing the maturity pro le of nancial liabilities with the realisation pro le of nancial assets.
(i) Maturities of nancial liabilities
The tables below analyse the Group's nancial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash ows.
Contractual maturities 6 - 12 Between Over 5 Total Carrying
Less than
of nancial liabilities months 1 and 5 years contractual amount
6 months
$ $ years $ cash liabilities
$ ows $
$
At 30 June 2023
Trade and other payables
1,310,087 - - - 1,310,087 1,310,087
Total 1,310,087 - - - 1,310,087 1,310,087
At 30 June 2022
Trade and other
payables 1,201,706 - - - 1,201,706 1,201,706
Total 1,201,706 - - - 1,201,706 1,201,706
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
11 DISPOSAL GROUP
(A) DESCRIPTION
The Group plans to spin out Archaean Greenstone Gold Limited ("Archaean"), Tiris International Mining Company SARL ("TIMCO") and the Nomads Joint Venture ("disposal group") by means of an Initial Public O ering of Archaean. The disposal group contains all of the Group's interest in the Tasiast South Gold project.
(B) FINANCIAL PERFORMANCE AND CASH FLOW INFORMATION
The results of the disposal group, which have been included in the loss for the year, were as follows:
2023 2022
$ $
Other gains 30,257 33,927
Expenses on disposal group (704,677) (309,623)
Loss before income tax (674,420) (275,696)
Income tax expense - -
Loss of the disposal group (674,420) (275,696)
During the nancial year, the disposal group accounted for $675,673 (2022: $240,179) to the Group's net operating cash ows, paid $940,120 (2022: $515,744) in respect of investing activities and paid no cash (2022: nil) in respect of nancing activities.
A loss of $674,420 (2022: $275,696) was incurred from the disposal group.
(C) ASSETS AND LIABILITIES OF DISPOSAL GROUP CLASSIFIED AS DISPOSAL GROUP
On 22 November 2021, the Group announced the spin out of the Tasiast South Gold project. The spin out is consistent with the Group's long-term policy to focus its activities on the Group's other businesses. These operations, which are expected to be sold within 12 months, have been classi ed as a disposal group and presented separately in the consolidated statement of nancial position. The proceeds of disposal, if any, are expected to substantially exceed the carrying amount of the related net assets and accordingly no impairment losses have been recognised on the classi cation of these operations as the disposal group.
The following assets and liabilities were classi ed as the disposal group as at 30 June 2023:
2023 2022
$ $
Assets
Cash at banks attributable to disposal group 37,591 755,923
Tasiast South Gold project exploration and
evaluation 2,698,059 1,697,697
Assets classi ed as disposal group 2,735,650 2,453,620
Liabilities
Trade and other payables 170,980 76,707
Liabilities directly associated with assets
classi ed as disposal group 170,980 76,707
Net assets directly associated with disposal
group 2,564,670 2,376,913
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
12 INTEREST IN OTHER ENTITIES
(A) SUBSIDIARIES
The Group's subsidiaries at 30 June 2023 are set out below. Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly by the Group, and the proportion of ownership interests held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place of business.
Place of business/ Ownership interest
Name of entity country of incorporation held by the group 2022
2023 %
%
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 Australia 100 -
Pty Ltd *
North-East Resources Pty Australia 100 - Ltd *
* On 26 October 2022, the Group incorporated Tiris Zemmour Resources Pty Ltd and North-East Resources Pty Ltd.
13 CONTINGENCIES
(A) CONTINGENT LIABILITIES (i) 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. On 2 April 2019, TIMCO was granted tenements 2457 (Hadeibet Bellaa) and 2458 (Touerig Taet) 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 Ahmend 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.
TIMCO forms part of the disposal group (see Note 11) that the Group plans to spin out.
14 COMMITMENTS
As at 30 June 2023, the Group had commitments of $73,146 ($73,146 <1 year). These represent renewal of exploration licenses and committed exploration expenditure.
15 EVENTS OCCURRING AFTER THE REPORTING PERIOD
Subsequent to the end of the nancial year, the Company released the Scoping Study for its Häggån Project in Sweden which con rmed the scale and optionality of the Company's Critical Minerals Project in Sweden. Please refer to the announcement dated 5 September 2023 for more details.
No other matter or circumstance has occurred subsequent to year end that has signi cantly a ected, or may signi cantly a ect, the operations of the Group, the results of those operations or the state of a airs of the Group or economic entity in subsequent nancial years.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
16 RELATED PARTY TRANSACTIONS
(A) SUBSIDIARIES
Interests in subsidiaries are set out in Note
12(a).
(B) KEY MANAGEMENT PERSONNEL COMPENSATION
2023 2022
$ $
Short-term employee bene ts 975,466 451,655
Post-employment bene ts 32,810 11,776
Long-term bene ts 526 -
Share-based payments 1,937,188 816,781
2,945,990 1,280,212
Detailed remuneration disclosures are provided in the remuneration report on pages 8 to 13.
(C) TRANSACTIONS WITH OTHER RELATED PARTIES
During the year ended 30 June 2023, the Group had no other transactions occurred with related parties.
17 REMUNERATION OF AUDITORS
During the year ended 30 June 2023, the Group had no other transactions occurred with related parties.
(A) HALL CHADWICK WA AUDIT PTY LTD
2023 2022
$ $
Audit and other assurance services
Audit and review of nancial statements 54,763 46,892
Taxation services
Tax compliance services 14,101 2,971
Total remuneration of Hall Chadwick WA Audit
Pty Ltd 68,864 49,863
18 LOSS PER SHARE
(A) LOSS USED IN CALCULATING LOSS PER SHARE
2023 2022
$ $
Basic and diluted loss per share
Loss attributable to the ordinary equity holders
of the Company used in
calculating basic loss per share:
From continuing operations 5,817,930 3,128,095
From continuing operations and disposal group 6,492,350 3,403,791
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
18 LOSS PER SHARE (CONTINUED)
(B) WEIGHTED AVERAGE NUMBER OF SHARES USED AS THE DENOMINATOR
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share
19 PARENT ENTITY FINANCIAL INFORMATION
(A) SUMMARY FINANCIAL INFORMATION
545,890,060
428,181,481
The individual nancial statements for the parent entity show the following aggregate amounts:
2023 2022
$ $
Assets and liabilities
Current assets 11,178,873 9,976,907
Non-current assets 30,021,283 24,592,325
Total assets 41,200,156 34,569,232
Current liabilities 1,396,014 954,782
Non-current liabilities 1,847 -
Total liabilities 1,397,861 954,782
Net assets 39,802,295 33,614,450
Shareholders' equity
Share capital 81,832,301 69,357,543
Other contributed equity 314,346 314,346
Reserves
Share-based payments 1,367,107 1,959,585
Loan funded shares 3,659,833 1,187,254
Retained earnings (47,371,292) (39,204,278)
Total Equity 39,802,295 33,614,450
Loss for the year (8,167,014) (3,069,872)
Total comprehensive loss (8,167,014) (3,069,872)
(B) GUARANTEES ENTERED INTO BY THE PARENT ENTITY
The parent entity has not entered into any guarantees in relation to debts of its subsidiaries in the year ended 30 June 2023
(2022: nil).
(C) CONTINGENT LIABILITIES OF THE PARENT ENTITY
The parent entity had contingent liabilities at 30 June 2023 identical to those of the Group, as outlined in note 13.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
19 PARENT ENTITY FINANCIAL INFORMATION (CONTINUED)
(D) CONTRACTUAL COMMITMENTS FOR THE ACQUISITION OF PROPERTY, PLANT OR EQUIPMENT
The parent entity has not entered into any contractual commitments for the acquisition of property, plant or equipment in the
year ended 30 June 2023 (2022: nil).
(E) DETERMINING THE PARENT ENTITY FINANCIAL INFORMATION
The nancial information for the parent entity has been prepared on the same basis as the consolidated nancial statements, except as set out below.
(i) Investments in subsidiaries, associates and joint venture entities
Investments in subsidiaries are accounted for at cost in the nancial statements of Aura Energy Limited.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This note provides a list of the signi cant accounting policies adopted in the preparation of these consolidated nancial statements to the extent they have not already been disclosed in the other notes above. These policies have been consistently applied to all the years presented, unless otherwise stated. The nancial statements are for the Group consisting of Aura Energy Limited and its subsidiaries.
(A) BASIS OF PREPARATION
These general purpose nancial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. Aura Energy Limited is a for-pro t entity for the purpose of preparing the nancial statements.
(i) Compliance with IFRS
The consolidated nancial statements of the Aura Energy Limited Group also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
(ii) Historical cost convention
The consolidated nancial statements have been prepared on a historical cost basis.
(iii) Going concern
The nancial 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 $6,795,514 (2022: $3,403,791) and a net cash out ow from operating activities of
$3,520,813 (2022: $2,690,586).
As at 30 June 2023, the Group had surplus working capital of $12,548,837 (2022: $11,286,717).
Based upon cash ow forecasts and other factors referred to above, the directors are satis ed 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 con dent of the Group's ability to raise additional funds as and when they are required.
(iv) Use of estimates and judgements
The preparation of nancial statements requires management to make judgements, estimates and assumptions that a ect the application of policies and reported amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on historical experience and various factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may di er from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods a ected.
Judgements made by management in the application of Australian Accounting Standards that have signi cant e ect on the nancial statements and estimates with a signi cant risk of material adjustment in the next year are discussed in Note 20(p) Critical accounting estimates and judgements.
(v) Comparative gures
Where required by Accounting Standards comparative gures have been adjusted to conform with changes in presentation for the current nancial year.
(vi) New standards and interpretations not yet adopted
There are no new standards and interpretations that are not yet e ective and that would be expected to have a material impact
on the Group in the current or future reporting years and on foreseeable future transactions.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(B) PRINCIPLES OF CONSOLIDATION AND EQUITY ACCOUNTING (i) Subsidiaries
Subsidiaries are all entities (including structured 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 a ect 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 subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
(C) SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. This has been identi ed as the chief executive o cer.
(D) FOREIGN CURRENCY TRANSLATION (i) Functional and presentation currency
Items included in the nancial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated nancial statements are presented in Australian dollar ($), which is Aura Energy Limited's functional and presentation currency.
(ii) Transactions and balances
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 pro t or loss.
(E) INCOME TAX
The income tax expense or credit for the year is the tax payable on the current year'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 di erences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting year in the countries where the Company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary di erences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated nancial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction a ects neither accounting nor taxable pro t or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting year and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary di erences and losses.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(E) INCOME TAX (CONTINUED)
Current and deferred tax is recognised in pro t or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity respectively.
(F) CASH AND CASH EQUIVALENTS
For the purpose of presentation in the consolidated statement of cash ows, cash and cash equivalents includes cash on hand, deposits held at call with nancial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insigni cant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the consolidated statement of nancial position.
(G) PLANT AND EQUIPMENT
Plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic bene ts associated with the item will ow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to pro t or loss during the reporting year in which they are incurred.
The depreciation methods and years used by the Group are as follows:
-- Computer equipment - 3 years -- Other plant & equipment - 2-5 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting year.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in pro t or
loss.
(H) PROVISIONS
Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an out ow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an out ow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an out ow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting year. The discount rate used to determine the present value is a pre-tax rate that re ects current market assessments of the time value of money and the risks speci c to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
(I) EMPLOYEE BENEFITS
For the year ending 30 June 2023 the Group has three types of employee bene ts.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(I) EMPLOYEE BENEFITS (CONTINUED)
(i) De ned contribution superannuation funds
A de ned contribution plan is a post-employment bene t plan under which an entity pays xed contributions onto a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to de ned contribution superannuation funds are recognised as an expense in the income statement as incurred. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
(ii) Short-term bene ts
Liabilities for employee bene ts for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date represent present obligations resulting from employees' services provided to the reporting date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay at the reporting date including related on-costs, such as workers compensation insurance and payroll tax.
Non-accumulating non-monetary bene ts, such as medical care, housing, cars and free or subsidised goods and services, are expensed based on the net marginal cost to the Group as the bene ts are taken by the employees.
(iii) Other long-term bene ts
Employee bene ts payable later than one year have been measured at the present value of the estimated future cash out ows to be made for those bene ts.
(J) EQUITY-SETTLED COMPENSATION
The Group operates an employee share ownership scheme. Share-based payments to employees are measured at the fair value of the instruments issued and amortised over the vesting periods. Share-based payments to non-employees are measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The corresponding amount is recorded to the option reserve. The fair value of options is determined using the Black-Scholes pricing model. The fair value of loan funded shares is determined using the Monte Carlo simulation.
The number of shares and options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognised for services received as consideration for the equity instruments granted is based on the number of equity instruments that eventually vest.
(K) REVENUE AND OTHER INCOME
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the nancial assets.
Management fees are recognised on portion of completion basis.
Gain on disposal of tenements, and revenue from equipment chargebacks, are recognised on receipt of compensation. All revenue is stated net of the amount of value added taxes (see Note 20(l) Value-added taxes).
(L) VALUE-ADDED TAXES
Value-added taxes (VAT) is the generic term for the broad-based consumption taxes that the Group is exposed to such as: Australia (GST); Sweden (MOMS); and Mauritania (VAT).
Revenues, expenses, and assets are recognised net of the amount of VAT, except where the amount of VAT incurred is not recoverable from the relevant country's taxation authority. In these circumstances the VAT 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 nancial position are shown inclusive of VAT.
Cash ows are presented in the statement of cash ows on a gross basis, except for the VAT component of investing and nancing activities, which are disclosed as operating cash ows.
Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable to, the taxation
authority.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(M) EARNINGS PER SHARE
(i) Basic earnings per share
Basic earnings (or loss) per share is determined by dividing the pro t or loss attributable to equity holders of the parent company, excluding any costs of service equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the nancial year, adjusted for bonus elements in ordinary shares issued during the year.
(ii) Diluted earnings per share
Diluted earnings (or loss) per share is determined by adjusting the pro t or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the e ects of all dilutive potential ordinary shares which comprise share options granted as share-based payments.
The Group does not report diluted earnings per share, as dilution is not applied to annual losses generated by the Group.
(N) IMPAIRMENT OF NON-FINANCIAL ASSETS
The carrying amounts of the Group's non- nancial 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 identi able asset group that generates cash ows 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 rst 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 ows are discounted to their present value using a pre-tax discount rate that re ects current market assessments of the time value of money and the risks speci c to the asset. For an asset that does not generate largely independent cash in ows, 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.
(O) FAIR VALUE OF ASSETS AND LIABILITIES
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e.
unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the speci c asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(O) FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs).
For non- nancial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based payment arrangements) may be valued, where there is no observable market price in relation to the transfer of such nancial instruments, by reference to observable market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and, where signi cant, are detailed in the respective note to the nancial statements.
(i) Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation techniques to measure the fair value of the asset or liability, the Group selects a valuation technique that is appropriate in the circumstances and for which su cient data is available to measure fair value. The availability of su cient and relevant data primarily depends on the speci c characteristics of the asset or liability being measured. The valuation techniques selected by the Group are consistent with one or more of the following valuation approaches:
-- Market approach: valuation techniques that use prices and other relevant information generated by market transactions
for identical or similar assets or liabilities.
-- Income approach: valuation techniques that convert estimated future cash ows or income and expenses into a single
discounted present value.
-- Cost approach: valuation techniques that re ect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that re ect the assumptions that buyers and sellers would use when pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs that are developed using market data (such as publicly available information on actual transactions) and re ect the assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable, whereas inputs for which market data is not available and therefore are developed using the best information available about such assumptions are considered unobservable
(ii) Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value measurements into one of three possible levels based on the lowest level that an input that is signi cant to the measurement can be categorised into as follows:
-- Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date.
-- Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
-- Level 3
Measurements based on unobservable inputs for the asset or liability.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(O) FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all signi cant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more signi cant inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
-- if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or
-- if signi cant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e.
transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred.
(P) CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The directors evaluate estimates and judgements incorporated into the nancial report based on historical knowledge and best
available current information.
Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Group.
(i) Key Judgements - Exploration and evaluation expenditure
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 o since feasibility studies in such areas have not yet concluded. For further details, refer to Note 5(a) Exploration and evaluation assets. The Company has lodged renewal applications for its Oum Ferkik and Tasiest Gold tenements and has received con rmation from the Ministry of Petroleum, Mines and Energy that the tenements for which exploration licences have been registered for renewal, that all fees due have been paid and in good standing.
The renewals are expected to be issued following the reopening of the Cadastre by Q4 2023. On this basis, the Company considers that the exploration and evaluation costs relating to tenements for which renewal and extension applications have been lodged with the Department of Mines are not impaired.
The carrying value of capitalised expenditure at reporting date is $27,248,300 (2022: $22,323,176).
(ii) Key Judgements - Environmental issues
Balances disclosed in the nancial 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.
(iii) Key Judgements - Taxation
Balances disclosed in the nancial statements and the notes thereto, related to taxation, are based on the best estimates of directors. These estimates take into account both the nancial performance and position of the Group as they pertain to current income taxation legislation, and the directors understanding thereof.
NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2023
(CONTINUED)
20 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(P) CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
No adjustment has been made for pending or future taxation legislation. The current income tax position represents that directors' best estimate, pending an assessment by tax authorities in relevant jurisdictions. Refer to Note 3 Income tax expense.
(iv) Key Judgements - Impairment
The Group assesses impairment at each reporting date by evaluating conditions speci c to the Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
(v) Key Judgements - Share-based payments
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 of options is determined by an internal valuation using a Black-Scholes pricing model with the assumptions and inputs detailed in Note 8 Share-based payments. The fair value of loan funded shares is determined by a Monte Carlo simulation. The assumptions and inputs to the models are detailed in Note 7 Options.
DIRECTORS' DECLARATION 30 JUNE 2023
IN THE DIRECTORS' OPINION:
(a) the nancial statements and notes set out on pages 18 to 50 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) giving a true and fair view of the consolidated entity's nancial position as at 30 June 2023 and of its performance for the nancial 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.
This declaration is made in accordance with a resolution of directors.
Mr David Woodall
Managing Director & CEO
26 September 2023
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
30 JUNE 2023
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
30 JUNE 2023 (CONTINUED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
30 JUNE 2023 (CONTINUED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
30 JUNE 2023 (CONTINUED)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
30 JUNE 2023 (CONTINUED)
aura
energy
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