Coburn Resources Pty Ltd
Financial Statements
For the year ended 30 June 2024
DIRECTORY AND TABLE OF CONTENTS
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Registered and Principal Office
Tel: (61 8) 9226 3130
Fax: (61 8) 9485 2070
Email: enquiries@strandline.com.au
Postal Address
PO Box 7127
Cloisters square PO, Western Australia 6850
Parent Entity
Coburn Resources Pty Ltd is a company limited by shares. It is domiciled and incorporated in Australia and
100% owned by Strandline Resources Limited.
Table of Contents
Directors’ Report 3
Auditor Independence Declaration 12
Statement of Profit or Loss 13
Statement of Financial Position 14
Statement of Changes in Equity 15
Statement of Cash Flows 16
Notes to the Financial Statements 17
Directors’ Declaration 36
Independent Auditors Report 37
DIRECTORS’ REPORT
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The Directors of Coburn Resources Pty Ltd (Coburn or “the Company”) submit their report on the Company,
together with the financial statements, for the year ended 30 June 2024.
DIRECTORS
The following persons were directors of the Company during the financial period and until the date of this
report, unless otherwise stated.
Directors
Jozsef Patarica (appointed 25 September 2023)
Didier Marcel Murcia (resigned 23 November 2023)
Luke Edward Graham (resigned 22 September 2023)
Company Secretary
Jamie Cann (appointed 23 November 2023)
PRINCIPAL ACTIVITIES
The principal activity of the Company during the course of the financial year was the exploration and
development of heavy mineral sands resources.
BUSINESS STRATEGIES AND OBJECTIVES
The Company’s key objectives are to build a significant critical minerals business including:
• complete the commissioning and ramp up production for the Coburn Minerals Sands Project;
• commitment to a sustainable future.
REVIEW OF OPERATIONS
Financial Results
The Company reported a net loss after tax of $182.1 million (2023: loss $5.6 million). The result included sales
revenue of $86.1 million and cost of sales of $138.4 million from the sale of HMC produced. In addition, the
Company recognised an impairment charge of $110.8 million.
Financial Position
The Company had net liabilities of $32.0 million at 30 June 2024 (2023: net assets $46.8 million) and cash on
hand as at 30 June 2024 was $3.1 million (2023: $11.2 million).
On 21 December 2023, the Company’s parent, Strandline Resources Limited, announced it had entered into a
Standstill Agreement with the secured lenders which provides short term comfort to the Company as the
secured lenders have agreed to not act on any current or pending events of default under the various facility
documents. Refer to Note 3.2 (a) Going concern for further information.
In December 2023, NAIF approved the repurposing of $15 million of their senior $150 million facility as a super
senior facility with $10 million of these funds released to the Company in December 2023 and a further $2.5
million during the financial year and final $2.5 million subsequent to the end of the financial year. The
Company also agreed with its financiers (Northern Australia Infrastructure Fund (NAIF), Nordic Bondholders
and National Australia Bank (NAB) to Standstill Agreement that defers certain near-term interest payments,
repayment obligations and various covenant waivers. This agreement is the first step in an ongoing process
aimed at restructuring the Company’s finances. Subsequent to year end, the lenders have confirmed to extend
the standstill to 30 November 2024 which is subject to formalisation of the agreement.
In March 2024, in addition to the NAIF super senior facility the Nordic Bondholders also provided a $20 million
super senior facility of which $2.5 million was held in escrow at 30 June 2024, and disclosed as restricted cash
(refer note 8 for further details). The $2.5 million held in escrow was drawn subsequent to the end of the
financial year.
DIRECTORS’ REPORT
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DIVIDENDS
No dividends were paid or declared during the financial year and the Directors have not recommended the
payment of a dividend (2023: Nil).
RIGHTS AND OBLIGATIONS OF SHAREHOLDERS
Fully paid ordinary shares carry one vote per share. Ordinary shares participate in the proceeds on winding
up of the Company in proportion to the number of shares held.
A Member may, subject to rights of pre-emption held by the other Members, sell their shares.
There is no employee share scheme in place or contemplated.
The Company is not aware of any agreement in place between shareholders that would restrict the ability to
sell or exercise voting rights for shares. The Company is 100% owned by its ASX listed parent company,
Strandline Resources Limited.
As the Company is unlisted and 100% owned by its parent, it cannot be subject to an on-market takeover bid.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the opinion of the Directors, there were no significant changes in the Company’s state of affairs, other than
those noted in this financial report.
ENVIRONMENTAL REGULATIONS
The Company is subject to environmental regulation on its mineral properties. To this extent, the Company has
raised a rehabilitation provision of $17.6 million (2023: $14.7 million) in relation to the Coburn Mineral Sand
Project. The Company’s environmental obligations are regulated under both State and Federal legislation.
Performance with respect to environmental obligations is monitored by the Board of Directors and subjected
from time to time to government agency audits and site inspections. During the year there was a non-compliance
incident identified with some clearing outside of tenement boundary where exploration drilling mobile
equipment continued beyond the GDP area to meet up with an historical access track in order to manoeuvre to
the next drill line at the Coburn Project.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. In respect of the financial year
ended 30 June 2024, the Directors have assessed that there are no current reporting requirements.
PROCEEDINGS ON BEHALF OF THE COMPANY
The Company is subject to contractual arrangements as a result of the development, commissioning and
ongoing operations of the Coburn Project. Occasionally contractual disputes arise relating to commercial
contracts. The Company currently has claims in progress (both for and against the company), however it is not
possible to estimate the financial effects of these claims.
At the date of this report, the Company has assessed the possibility of any net outflow of economic benefits,
in relation to all of these matters, which have not already been provided for in this report, as being unlikely
and/or immaterial. The Directors are not aware of any other contingent liabilities as at 30 June 2024 (30 June
2023: $nil).
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Company paid an insurance premium in respect of a contract insuring the
Directors of the Company, the Company Secretary, and all Executive Officers of the Company and of any related
body corporate against a liability incurred as such as a Director, Company Secretary or Executive Officer to
the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature
of the liability and the amount of the premium.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted
by law, indemnified or agreed to indemnify an officer or auditor of the Company or of any related body
corporate against a liability incurred as such as an officer or auditor. The Company has made an agreement
to provide access, indemnity and insurance for all its directors and executive officers for any breach of duty
as a director or executive officer by the Company, for which they may be held personally liable.
DIRECTORS’ REPORT
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The agreement provides for the Company to pay insurance premiums and legal costs where:
a) the liability does not arise out of conduct involving a lack of good faith; or
b) the liability is for costs and expenses incurred by the Director or executive officer in defending
proceedings in which judgment is given in their favour or in which they are acquitted.
CORPORATE GOVERNANCE
The Board and Management of Coburn are committed to strong Corporate Governance and have adopted the
Corporate Governance Principles and Recommendations of the ASX Corporate Governance Council, as and where
applicable.
The relevant principles and recommendations are embodied in the Company policies and procedures which can
be found at the Parent company website: www.strandline.com.au.
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
The financial report of the Company is prepared by the Chief Financial Officer and reviewed by the Audit
Committee of the parent company Strandline Resources Limited. The Audit and Risk Committee provides the
Board with additional assurance regarding the reliability of the financial information included in the financial
reports of the Company and the independence of the Company’s Auditor.
The Board of Directors of the Company is currently composed of Jozsef Patarica.
Until otherwise determined by a general meeting the number of Directors will not be less than one nor more
than twenty. A Director must be a natural person. The Directors and every Director appointed under the Company
Constitution must hold office until they are removed or until their office becomes vacant pursuant to the
Company Constitution or pursuant to the Corporations Act. The Directors may at any time appoint any person to
be a Director, either to fill a casual vacancy or as an addition to the existing Directors, provided that the total
number of Directors does not at any time exceed the number determined in accordance with the Company
Constitution. The Company may by ordinary resolution:
• Remove any Director before the expiration of the Director’s term of office, and may appoint another
person in the removed Director’s stead; and/or
• Appoint a person as a Director.
Subject to Division 2 of Part 2J.1 of the Australian Corporations Act, the Company may buy back its own shares
and may, by special resolution, reduce its share capital, any capital redemption reserve fund or any paid up
share capital. The parent company, Strandline Resources Limited, has the following initiatives regarding gender
diversity across the Parent Entity Group:
• In 2022, Strandline Resources Limited (parent entity) set gender diversity targets as part of its 2022
Sustainability Report, where it committed to female representation on the Board and across the
operational group to >20 per cent. Strandline Resources Limited (parent entity) total workforce profile
is 21 percent female. All employees of the Company are employed through the parent Company.
During the financial year, the Parent Company paid an insurance premium in respect of a contract insuring the
Directors of the Company, the Company Secretary, and all Executive Officers of the Company and of any related
body corporate against a liability incurred as such as a Director, Company Secretary or Executive Officer to the
extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of
the liability and the amount of the premium.
DIRECTORS’ REPORT
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SUSTAINABILITY AND THE ENVIRONMENT
Sustainability
During the year, the parent, Strandline Resources Limited, released its third edition Sustainability Report
(2023), a copy can be accessed at www.strandline.com.au. This report highlights sustainability matters which
we believe are relevant to our stakeholders and describe what we are doing to address these matters into the
future.
Our vision is to “enrich everyday life” and grow a significant critical minerals business through responsible
operations, innovation, and ethical business practices. This vision comes with a commitment to operate our
business in line with principles of sustainable development, to deliver on the needs of the present, without
compromising the needs of future generations, and integrating environmental, social and governance
considerations into our decision making.
Collaboration and innovation are key to driving sustainability at Strandline. Across all aspects of our business,
we are thinking innovatively about how we prosper in the changing world. The technologies we deploy are
complemented by the actions we take to ensure the safety of our people, protection of the environment,
enhancing efficiencies and commercial performance. We see innovation, collaboration and culture, as the
critical ingredients for driving excellence and sustainability, as well as being at the forefront of industry
trends.
Impact on external environment
Coburn manages approximately 200km
2
of exploration and mining tenure area in Western Australia. Our
approach to managing our environment is based on the rigorous identification, assessment, and control of
material risks across all phases of our business, from exploration to construction, operation, and closure. At
each of our site locations, we are committed to preventing pollution and minimising our environmental impact
by fostering a proactive environmental management culture that is characterised by strong leadership, robust
management systems, and compliance with the requirements of the EPA and EPBC Acts as outlined in the
conditions of our environmental permits in Australia. The nature of our extraction, processing, product
handling and exporting has the potential to result in dust, noise, and pollutant emissions. We work with
specialist consultants and regulators to implement ongoing monitoring programs, surveys, and controls to
mitigate the impact to the surrounding environment and our host communities.
Working Environment
Occupational Health and Hygiene
To support the wellbeing of our Coburn team baseline health monitoring for the site operations has been
established. Health and hygiene monitoring has included a systematic assessment of potential exposure
groups, identification of potential contaminants and /or health risks and conducting air and noise monitoring
using a certified hygiene monitoring company.
Health and Wellbeing
We are committed to promoting psychosocial health and safety in the workplace, which is a fundamental
aspect of our values of trust and respect. This year, we have implemented an online training module for all
our employees to enhance their understanding of the significance of psychological health and safety, as well
as the role that each individual plays in creating a safe, inclusive, and respectful work environment.
DIRECTORS’ REPORT
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DIRECTORS’ REPORT
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Health, Safety and Wellbeing
The Company is committed to providing a sustainable workplace free from injury and harm through strong
leadership, supportive behaviours, and robust safety management systems. The safety of our people and the
communities in which we operate always comes first.
There were no lost time injuries during the financial year (2023: nil), and with no lost time injuries in the past,
Coburn has a Lost Time Injury Frequency Rate (LTIFR) of 0.0 per million hours worked.
The Company’s Total Recordable Injury Frequency Rate (TRIFR) is 3.21 per million hours worked (2023: 3.3 per
million hours worked), which included a minor medical treatment injury and restricted work injury.
The Company’s key focus during the period was on continuing to develop and implement a robust HSEC
management plan, standards, and systems to support the ongoing development of the operations.
To support Coburn’s goal of zero harm, the Company has designed and embedded a critical risk management
program that is focused on developing, communicating, and implementing a process to assist all personnel
to identify and control potentially fatal hazards. This system was developed as part of an early adoption of
the changes prescribed by the WHS Act which came into effect in early 2022.
In accordance with the requirements of Subdivision 3B – Radiation in mines of the Work Health and Safety
(Mines) Regulations 2022, Coburn Mineral Sands submitted the Occupational Radiation Monitoring Report for
2023-2024 monitoring period.
Coburn recognises that to prevent fatal and catastrophic events from occurring, critical controls must be
clearly defined, actionable and clearly understood, including regarding who is responsible for
implementation. The Company will continue to implement this program as operation activities ramp up across
our sites. It is the Board’s role, through the Technical and Sustainability Committee, to ensure an appropriate
assurance regime exists to check critical controls are effective.
Diversity, Equity, and Inclusion
Coburn recognises and promotes the importance of continuing to build a diverse and inclusive workforce. We
know that having an open, collaborative approach and a cross-section of different backgrounds, lived
experiences, qualifications, and talents in the workforce, leads to better business outcomes, such as higher
productivity, lower turnover, improved safety and environmental performance, risk management, innovation
and overall, an enhanced working culture.
We have seen that a more diverse and inclusive team can reduce blind spots and biases in our decision making
and foster a psychologically safe culture where different opinions are valued. Also, if the demographics of the
company reflect the demographics of the community within which it operates, the company may be more
attuned to the needs of the community.
Environmental - Climate change
We acknowledge the climate change challenge and address it by measuring and mitigating carbon emissions
and integrating these considerations into our business processes and everyday decisions.
At Coburn, we have a role to play in supporting our customers through the transition to a low carbon future.
One of our key contributions to address climate change is underpinned by our product suite – we produce
critical minerals that are important to a low carbon economy. End uses for our products include applications
in renewable energy production and electric mobility systems.
Furthermore, we have adopted contemporary thinking and low emission technology from the outset of mine
design to minimise our carbon footprint and implement strategies to adapt to the impacts of potentially
harsher climate conditions in the future. This is a reality now on the Coburn sand mining operation with power
generation from the solar farm producing on average 20% of the site power generation requirements per
annum.
Our planned high-grade (low impurity) zircon and titanium products use less raw materials, generate less
waste, and reduce emissions resulting in less environmental impact and a lower carbon footprint, playing an
important role in our customer’s value chain.
DIRECTORS’ REPORT
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Our decarbonisation strategy:
• We are committed to managing and reducing our Scope 1 and 2 air emissions footprints from our projects
to levels below or in line with the Australian government policy and targets. This will be achieved through
a combination of the following:
• Establishing a Project Baseline, establish a Scope 1 and 2 emissions baselines for ‘business as usual’
operations based on the estimates and actual data from each project site. For the Coburn project, the
baselining is being undertaken during 2024 with data to be collated for a 12-month period throughout
the operation steady state commercial production.
• Benchmarking and Setting Targets, the baseline data will allow us to benchmark each project site against
its industry peers and determine future emissions reduction targets and timing.
Community
Coburn sets out to build enduring relationships with the communities in which we operate that are
characterised by respect, trust, and enriching lives through our participation. Through active collaboration
we strive to implement long-term sustainable benefits for the local communities, regional and national
stakeholders, and the Company. We aim to achieve this through:
• Engaging with all stakeholders in a culturally sensitive way that enables us to identify impacts and
actively develop strategies to address concerns and implement improvement initiatives
• Empowering local communities through capability building and diversity programmes that enhance the
socio-economic benefits from our operations
• Actively participating in value-add initiatives relating to regional development, training and employment,
and small business opportunities
• Working with government and other organisations to promote sustainable mining practices that minimise
environmental and social impact
• Implementing social management principles of best practice in compliance with legislative requirements
that seek to enhance community engagement and empowerment
• Prioritising community initiatives that improve education, upskilling, and health and well-being
• Delivery of training and development programmes for our people which encourage taking personal
responsibility for community relations, health, safety and the environment.
Investments in selected social and community improvement initiatives and events is another means for
Coburn to contribute to positive social engagement. Through a collaborative approach we seek to work with
our diverse range of stakeholders to understand social needs in the region, which enables Coburn to design
voluntary investments that create meaningful outcomes and align with our broader business priorities
including improving education, upskilling, and health, and wellbeing. As a key implementation strategy, we
look to maximise benefits through partnering with government and other specialist organisations to deliver
our social investments initiatives, such as MADALAH in WA (First Nations Future Leaders program).
DIRECTORS’ REPORT
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Indigenous Peoples and Cultural Heritage
Coburn strives for a sustainable approach to our projects and operations and to work productively and in
partnership with Indigenous communities to ensure they benefit from our presence over the long term. Coburn
recognise and respect the rights of Indigenous peoples and acknowledge the connection they have with land
and water.
As part of Coburn development, the Company has developed an Indigenous Engagement Strategy (IES) that
aims to:
• Establish and maintain equitable and culturally appropriate employment and career development
opportunities for Indigenous employment
• Increase the employment rate for local Indigenous people on the project
• Raise awareness among non-Indigenous personnel of the cultural sensitivities that may affect the
employment of Indigenous personnel
• Enable employment opportunities for all Indigenous people
• Look for opportunities for the project to increase the skills base for Indigenous people to improve
access to a range of positions and levels and to improve the likelihood of local indigenous service
provider businesses forming in the region
• Embed a system of reporting and recording of Indigenous people participating in recruitment and
employment
Coburn has several mining and heritage agreements in place with Traditional Owners. These agreements
contain commitments and obligations in relation to engaging with Traditional Owners through the various
phases of Coburn project development and are subject to periodic review by the parties. The IES and
obligations contained within these agreements are managed, monitored, and reported on regularly. The
Company’s commitments to Indigenous engagement and local content are passed through to every major
contractor involved in the Coburn project as a standard contractual performance requirement.
During the year Coburn’s dedicated Indigenous and Community Liaison Representative and Operations
management team oversaw the implementation of the IES and provided a key interface for the Indigenous
community interested in the Coburn project. Also, the Company’s cross cultural awareness program was
further refined with input from Nanda elders and a specialist indigenous training consultant. The program is
crucial in educating project personnel on cultural sensitivities and recognise and respect the rights of
Indigenous peoples.
As construction concluded and operational work fronts increased during the year the employment and
procurement opportunities grew for indigenous people. Strandline finished the year with 6% indigenous
engagement for its in-house workforce and a range of contracts awarded to indigenous businesses.
Indigenous led survey teams and heritage officers for earthworks clearing and seed collecting were engaged
across the work fronts. The Company’s major contractors continued to target indigenous recruitment and
onboarding programs with roles being secured across most work scopes including, but not limited, to civil
bulk earthworks, mining and tailings management works, waste management, field piping, and environmental
monitoring.
DIRECTORS’ REPORT
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EVENTS SUBSEQUENT TO REPORTING DATE
On 20 September 2024, the parent, Strandline Resources Limited, announced that the NAIF will advance $5m
under the existing facility for construction of a new airstrip and associated infrastructure, located approximately
17 kilometres from the Coburn site.
On 30 September 2024, the parent, Strandline Resources Limited, announced it has an in principle agreement
to an extension of the existing standstill and deferral arrangement with its financiers (NAIF, National Australia
Bank and Nordic Bondholders). The existing standstill and deferral arrangement (agreed in December 2023)
will, subject to the parties formalising their principle agreement, remain in place until 30 November 2024. The
near-term interest payment obligations and principal repayment obligations have been extended until 30
November 2024. The Company continues to work with its financiers, advisors and other key stakeholders
towards agreeing a holistic recapitalisation of the Company in the quarter ending 31 December 2024.
Other than the disclosure above there has not been any matter or circumstance that has arisen since the end
of the financial year that has significantly affected, or may significantly affect, the operations of the Company,
the results of those operations, or the state of affairs of the Company in future financial years.
SHARES UNDER OPTION
There were no unissued ordinary shares of the Company under option outstanding at the date of this report.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares of the company issued on the exercise of options during the financial year
and up to the date of this report.
AUDITORS’ INDEPENDENCE DECLARATION
A copy of the Auditors’ Independence Declaration is set out separately on page 12 in this report.
This Directors’ Report is signed in accordance with a resolution of the Directors.
On behalf of the Directors
Jozsef Patarica
Director
31 October 2024
AUDITORS INDEPENDENCE DECLARATION
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DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF COBURN RESOURCES
PTY LTD
As lead auditor of Coburn Resources Pty Ltd for the year ended 30 June 2024, I declare that, to
the best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Coburn Resources Pty Ltd.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Perth, 31 October 2024
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com. au
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
STATEMENT OF PROFIT OR LOSS
FOR THE PERIOD ENDED 30 JUNE 2024
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Notes
2024
2023
$
$
Sales revenue
4
Cost of sales
5
(138,351,952 )
(55,473,317 )
Other income
Exploration and evaluation expenditure
(1,497,925 )
Corporate and administrative expenses
(9,896,805 )
(1,172,364 )
Impairment - Coburn Project - Mine Properties in Development
11
(110,787,020 )
Operating loss before income tax
(173,971,777 )
Finance income
Finance costs
(8,094,561 )
(9,791,739 )
Net finance costs
6
(8,091,024 )
(9,736,702 )
Income tax expense
7
Loss after income tax for the year
(182,062,801 )
(5,613,008 )
Total loss for the year
(182,062,801 )
(5,613,008 )
The Statement of Profit or Loss should be read in conjunction with the accompanying notes.
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
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Notes
2024
2023
$
$
Current assets
Cash and cash equivalents
8
Restricted Cash
8
Inventories
9
Trade and other receivables
10
Prepayments
Total current assets
Non-current assets
Property, plant and equipment
11
Total non-current assets
Total assets
Current liabilities
Trade and other payables
12
Borrowings
13
Total current liabilities
Non-current liabilities
Borrowings
13
Provisions
14
Total non-current liabilities
Total liabilities
Net (liabilities) / assets
(32,013,946 )
Equity
Contributed equity
15
Reserves
16
Accumulated losses
(194,294,650 )
(12,231,849 )
Total equity
(32,013,946 )
The Statement of Financial Position should be read in conjunction with the accompanying notes.
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2024
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Issued Capital
Revaluation
Reserve
Accumulated
Losses
Total
$
$
$
$
Balance at 1 July 2022
(6,618,841 )
Comprehensive income for the year
Loss for the year
(5,613,008 )
(5,613,008 )
Total comprehensive loss for the year
(5,613,008 )
(5,613,008 )
Fair value loan (note 13)
Balance at 30 June 2023
(12,231,849 )
Balance at 1 July 2023
(12,231,849 )
Comprehensive income for the year
Loss for the year
(182,062,801 )
(182,062,801 )
Total comprehensive loss for the year
(182,062,801 )
(182,062,801 )
Fair value loan (note 13)
Balance at 30 June 2024
(194,294,650 )
(32,013,946 )
The Statement of Changes in Equity should be read in conjunction with the accompanying notes.
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2024
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Notes
2024
2023
$
$
Cash flows from operating activities
Receipts from customers
Payments for exploration and evaluation
(1,497,925 )
Payments to suppliers and employees (inclusive of GST)
(142,659,402 )
(48,375,530 )
Interest received
Net cash from/(used in) operating activities
(57,663,022 )
Cash flows from investing activities
Payments for property, plant and equipment
(11,760 )
(73,676 )
Payments for mine development activities
(17,371,251 )
(121,439,054 )
Net cash used in investing activities
(17,383,011 )
(121,512,730 )
Cash flows from financing activities
Proceeds from intercompany loan
Proceeds from borrowings
Repayment of borrowings
(1,512,130 )
(1,282,849 )
Government grants received
Net cash from financing activities
Net (decrease)/increase in cash and cash equivalents
(7,886,584 )
(57,294,372 )
Cash and cash equivalents at the beginning of the year
Effects of foreign exchange movement on cash held
(200,087 )
(80,866 )
Cash and cash equivalents at the end of the year
8
The Statement of Cash Flows should be read in conjunction with the accompanying notes.
DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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1. General information
address of its registered office and principal place of business is disclosed in the Corporate Directory of the Annual
Report. The Company is primarily involved in the exploration and development of heavy mineral sands resources .
DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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DIRECTORS’ DECLARATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page | 35
DIRECTORS’ DECLARATION & RESPONSIBILITY STATEMENT
_____________________________________________________________________________________________________________________
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In the directors' opinion:
1. The attached financial statements and notes comply with the Corporations Act 2001, the Australian Accounting
Standards – General Purpose, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
2. The attached financial statements and notes give a true and fair view of the company's financial position as
at 30 June 2024 and of its performance for the financial year ended on that date; and
3. in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable having regard to matters disclosed in note 3.2 (a);
4. to the best of our knowledge, the financial statements have been prepared in accordance with applicable
accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or
loss of the issuer and the Company taken as a whole;
5. the financial statements comply with Australian Accounting Standards. The financial statements also comply
with international financial reporting standards in accordance with IAS 1 Presentation of Financial Statements;
6. the director’s report includes a fair review of the development and performance of the business and the
position of the issuer and the Company taken as a whole, together with a description of the principal risks
and uncertainties that they face; and
7. to the best of our knowledge, the payments to governments report has been prepared in accordance with the
requirements of the Norwegian Securities Trading Act section 5-5a and associated regulations (regulations
relating to country-by-country reporting of 20 December 2013 no. 1682).
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Jozsef Patarica
Director
31 October 2024
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 37
INDEPENDENT AUDITOR'S REPORT
To the members of Coburn Resources Pty Ltd
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Coburn Resources Pty Ltd (the Company), which comprises the
statement of financial position as at 30 June 2024, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the year
then ended, and notes to the financial report, including material accounting policy information and the
directors’ declaration.
In our opinion the accompanying financial report of Coburn Resources Pty Ltd, is in accordance with the
Corporations Act 2001, including:
(i) Giving a true and fair view of the Company’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Company in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com. au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 38
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 39
Material uncertainty related to going concern
We draw attention to Note 3.2(a) in the financial report which describes the events and/or conditions
which give rise to the existence of a material uncertainty that may cast significant doubt about the
entity’s ability to continue as a going concern and therefore the entity may be unable to realise its
assets and discharge its liabilities in the normal course of business. Our opinion is not modified in
respect of this matter.
Other information
The directors are responsible for the other information. The other information obtained at the date of
this auditor’s report is information included in the Directors’ report, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 40
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx
) at:
http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf
This description forms part of our auditor’s report.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 31 October 2024
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com. au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com. au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 41
INDEPENDENT ASSURANCE REPORT
To the Members of Coburn Resources Pty Ltd
Opinion
We have undertaken a reasonable assurance engagement on Coburn Resources Pty Ltd’s compliance, in
all material respects, with the compliance requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to
Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial
statements
In our opinion, the financial statements, included in the annual report, have been prepared, in all
material respects, in compliance with the ESEF Regulation.
Basis for opinion
We conducted our engagement in accordance with Standard on Assurance Engagements ASAE 3100
Compliance Engagements issued by the Auditing and Assurance Standards Board.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Coburn Resources Pty Ltd’s responsibilities
Coburn Resources Pty Ltd’s is responsible for:
a) The compliance activity undertaken to meet the requirements of the Commission Delegated
Regulation (EU) 2019/815 on the ESEF Regulation and regulation pursuant to Section 5-5 of the
Norwegian Securities Trading Act, which includes requirements related to the preparation of the
annual report in XHTML format and iXBRL tagging of the consolidated financial statements
b) Identification of risks that threaten the compliance requirements identified above being met and
controls which will mitigate those risks and monitor ongoing compliance.
Our independence and quality management
We have complied with the independence and relevant ethical requirements of APES 110 Code of Ethics
for Professional Accountants (including Independence Standards), which are founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and
professional behaviour.
The firm applies Auditing Standard ASQM 1 Quality Management for Firms that Perform Audits or
Reviews of Financial Reports and Other Financial Information, or Other Assurance or Related Services
Engagements which requires the firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com. au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
AUDITORS’ REPORT
_____________________________________________________________________________________________________________________
Page | 42
Assurance practitioner’s responsibilities
Our responsibility is to express an opinion on Coburn Resources Pty Ltd compliance, in all material
respects, with the compliance requirements as evaluated against as at 30 June 2024. ASAE 3100
requires that we plan and perform our procedures to obtain reasonable assurance about whether,
Coburn Resources Pty Ltd has complied, in all material respects, with the compliance requirements as
at 30 June 2024.
An assurance engagement to report on Coburn Resources Pty Ltd compliance with the requirements
involves performing procedures to obtain evidence about the compliance activity and controls
implemented to meet the compliance requirements. The procedures selected depend on our
judgement, including the identification and assessment of risks of material non-compliance with the
requirements.
For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF
reporting, see: https://revisorforeningen.no/revisjonsberetninger
Inherent limitations
Because of the inherent limitations of an assurance engagement, together with the internal control
structure it is possible that fraud, error, or non-compliance with compliance requirements may occur
and not be detected.
A reasonable assurance engagement throughout the specified period or as at a specified date does not
provide assurance on whether compliance with the compliance requirements will continue in the
future.
Restricted use
This report has been prepared for use by members for the purpose of assessing compliance with the
ESEF Regulation and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act. We
disclaim any assumption of responsibility for any reliance on this report to any person other than
intended users, or for any other purpose other than that for which it was prepared.
BDO Audit (WA) Pty Ltd
Dean Just
Director
Perth, 31 October 2024