Announcement PDF auricmining.com.au ASX:AWJ 2023 Annual Report 02 Auric Mining Annual Report 2023 03 Contents Click on a heading to jump to the related section or page. 2023 Overview 04 Letter from the Chair of Auric Mining 05 Letter from the Managing Director 06 Review of Activities 08 Activities Overview 09 Mineral Resources Annual Statement & Review 14 Estimation Governance Statement 15 Competent Persons Statements 15 Schedule of Tenements 16 Financial Report 18 Directors’ Report 19 Remuneration Report (Audited) 24 Auditor’s Independence Declaration 29 Consolidated Statement of Profit or Loss and Other Comprehensive Income 30 Consolidated Statement of Financial Position 31 Consolidated Statement of Changes in Equity 32 Consolidated Statement of Cash Flows 33 Notes to the Consolidated Financial Statements 34 Directors’ Declaration 52 Independent Auditors’ Report 53 Corporate Governance Statement 57 Additional ASX Information 58 Corporate Directory 61 04 Auric Mining Annual Report 2023 2023 Overview 01 2023 Overview Back to Contents 05 Letter from the Chair of Auric Mining Steven Morris Welcome to the Annual Report of our Company for the year 2023 – a year which saw us emerge as a micro-cap Rising Resource Star. Auric has become a recognised gold producer having sold almost 10,000 ounces of gold in the past year. As a gold-only focused company we are poised for considerable success in 2024 and beyond. As your Chair, I am delighted with the performance of Auric Mining. The Company listed on the ASX in February 2021 and just over three years later we find ourselves earning cash and recording profits on behalf of shareholders via our mining partnership with BML Ventures Pty Ltd of Kalgoorlie. Almost $10 million of surplus cash was generated from Stage One of mining Jeffreys Find, near Norseman in WA, of which Auric received $4.77 million. I cannot recall another junior company achieving this in such a short amount of time. Indeed the statistics for junior explorers for all commodities that ever actually achieve production is extremely small, possibly in the order of 5% or less. Our mindset is that we are no longer explorers – we are gold producers. As we know Jeffreys Find is a short-life project and with mining of Stage Two well underway in 2024 we have an expectation the joint venture can double its production compared to 2023. We continue to advance our flagship asset, the Munda Gold Project, not far from Widgiemooltha. From November 2023 to the beginning of this year a total of 361 holes were drilled in a grade control drilling program and this substantially advanced our understanding of the deposit. The intention is to mine a starter pit in late 2024 or early 2025 before expanded mining takes place. The Company is now self-funding for the immediate future. It is most encouraging to note the 99% conversion of March 2024 options which generated $2.6 million in additional capital for the Company. Being in a position of not needing to raise capital is an exceptionally good place for a junior to be, and the added capital means we can look to bring Munda forward as well as initiating drilling on our other projects. At the time of writing the world faces many uncertainties which make a lot of lives difficult, however whilst being very sympathetic to that or being hard-headed, it remains an undeniable fact that gold will continue to be accumulated as a hard asset of choice by many of the world’s smartest investors, banks and governments. Whilst gold is holding at historically high price levels, we are increasingly looking at opportunities to add quality prospective ground to our holdings too, and to examine mining opportunities so that we can continue to produce long after we have finished at Munda. I would like to thank everyone at Auric for their efforts and hard work this year. I have full faith in Mark English, John Utley and the team and their commitment is much appreciated. I also acknowledge the ongoing loyalty and support from our shareholders. Your board is fully dedicated to success and all the signs point towards exciting times ahead. Yours faithfully Steven Morris Non-Executive Chair 18 April 2024 06 Auric Mining Annual Report 2023 Letter from the Managing Director Mark English I am delighted to introduce Auric’s 2023 Annual Report. As a Shareholder you can take much satisfaction from our performance during the past year, as we accelerated our mining and exploration activities in the Goldfields of Western Australia. 2023 was a transformative year for the Company and more exciting times are now before us. Auric has tremendous assets amongst some of the most exciting mineral projects in the world. As a purely gold-focused Company we have enviable access to mining infrastructure, support services, contractors, and an experienced workforce – all within an easy distance of our projects and Kalgoorlie. The Company remained focused and stuck to our tasks during 2023. We were rewarded with the first surplus cash generated from our partnership with BML Ventures Pty Ltd of Kalgoorlie, through the mining of Jeffreys Find Gold Mine. A total of 9,741 ounces of gold production resulted from Stage One of the Project with the gold selling for an average price of $3,006 per ounce. At the conclusion of mining for the year a total of $9.53 million surplus cash was split 50:50 between Auric and BML Ventures with Auric banking $4.77 million in the December 2023 quarter. BML Ventures have proven to be skilled and proficient as mining partners. We are delighted with their performance and their mining abilities. We look forward to working with them throughout 2024 as they mine the gold resources at Jeffreys Find. We believe we can double gold production in 2024 and with a surging gold price generate substantial cash surpluses in 2024. Apart from Jeffreys Find our major activity in the second half of 2023 was a 361-hole grade control drilling program at the Munda Gold Project, near Widgiemooltha. Holes were drilled on a 10m x 10m grid as we sought to enhance our understanding of the deposit and in particular the role and distribution of high-grade gold zones within the deposit. Our next task is to further refine the resource model and re-optimise the model using recently obtained costings from reputable mining contractors, together with the benefit of a rapidly rising gold price. This will generate a revised starter pit design for mining in late 2024 or early 2025. We continue to progress the development of our main asset, with the focus on getting Munda into production. We are determined to advance our ambition to become a substantial gold producer via mining, with continued exploration activity, or by strategic acquisitions. What’s changed is Auric now has revenue from gold mining to fund our ongoing activities and development. I thank all my fellow directors and staff at Auric in continuing to work towards our objectives and adding value to the Company. In particular, I wish to acknowledge the outstanding work of our technical team, led by John Utley and Nicholas Snow, and for the ongoing support from our Joint Company Secretary, Catherine Yeo. One of the great things about a small mining company is that we now have our stars nicely lined up with a strong board and astute management. We have excellent projects with tremendous upside and proven resources. We are financially prudent with low overheads and are well managed. As a result we will realise our key ambition to become a long term gold producer sooner rather than later. The coming year will be a powerful statement on the bright future of Auric. I thank all our Shareholders, old and new, for your continuing support. I look forward to you being a participant at our Annual General Meeting on 24 May 2024. Yours faithfully Mark English Managing Director 18 April 2024 08 Auric Mining Annual Report 2023 Review of Activities 02 Review of Activities Back to Contents 09 Activities Overview Auric began the year as manager of 33 tenements, of which 25 were granted and eight in application, covering an area of 516 km2. The tenements were assigned to four projects; Jeffreys Find Project, Widgiemooltha Gold Project, Spargoville Project, and Chalice West Project. Numerous tenements were applied for over vacant ground during the year, of which six have been granted. Two of the tenements in the Chalice West Project, covering 340 km2, were managed by Auric under the terms of an option agreement with Mineral Business Development Pty Ltd. Auric withdrew from the option agreement in September 2023 such that at year’s end, the company managed 34 tenements, covering 283 km2, comprising 27 granted tenements, including six mining leases and seven tenements in application. Auric holds the rights to gold on tenements in the Widgiemooltha and Spargoville areas that were acquired from Neometals Limited in June 2021. The Company has rights to all minerals except nickel and lithium at Munda and to all minerals, including gold, nickel, lithium and REE at Jeffreys Find, Chalice West and the other Widgiemooltha and Spargoville tenements. 10 Auric Mining Annual Report 2023 Figure 1. Auric’s projects in the Widgiemooltha-Norseman area. of Activities Back to Contents Jeffreys Find net surplus cash generated by gold sales after processing the ore was then split 50:50 between Auric and BML. Auric achieved first gold production in 2023. The Jeffreys Find Project progressed from a scoping study and mine planning and permitting in 2022 to Stage One mining in 2023. An RC grade control program was completed in February 2023, providing the confidence to proceed with mining and in March 2023, a toll milling agreement for ore processing was signed with the Greenfields Mill in Coolgardie. Open pit mining was undertaken by BML Ventures Pty Ltd (BML) under the terms of an agreement between BML and Auric whereby BML incurred and paid all upfront costs in mining and transporting the ore to the Greenfields mill. The Mining began in May and processing of ore was undertaken in two campaigns. This resulted in total Stage One production of 175,865 tonnes at a reconciled head grade of 1.86g/t Au and 9,741 ounces of gold at a calculated recovery of 92.67%1. Gold sales coincided with some of the highest prices for gold bullion in Australian dollar terms received till that time, resulting in total gold revenue of $29,285,024. The net surplus revenue after total cash costs was $9,532,077 of which Auric’s 50% share was $4,766,039. Stage One – Production and Revenue Statistics Item First Campaign Second Campaign Total Stage One 36,180 139,685 175,865 Grade g/t Au 1.58 1.93 1.86 Mill Recovery % 93.04 92.58 92.67 Ounces Gold Produced 1,721 8,020 9,741 Average Sale Price $2,939 $3,021 $3,006 Total Gold Revenue $5,057,527 $24,227,127 $29,285,024 Dry Tonnes Milled Stage One – Financial Details Item Gross gold sales 1 Funds $29,285,024 Other revenue $156,564 Total revenue $29,441,588 Total cash costs $19,909,511 Net surplus revenue $9,532,077 50% share to Auric $4,766,039 (ASX: AWJ) 1 December 2023; Jeffreys Find Gold Mine – Stage One Reconciliation Total Surplus Cash to Auric $4.77million 9,741 Ounces Produced. Find Stag 12 Auric Mining Annual Report 2023 Widgiemooltha Gold Project Munda Gold Deposit Auric’s focus within the Widgiemooltha Gold Project during 2023 was on the Munda gold deposit. A scoping study for open pit mining and third-party toll treatment was reported in June 20232 highlighting a positive outcome and a requirement for further work to refine material inputs and enhance project economics. The scoping study was undertaken by Minecomp Pty Ltd, a Kalgoorlie based consulting firm with extensive experience evaluating mining projects in the Eastern Goldfields. Minecomp’s study included generating optimal pits and a Stage 1 Starter Pit design utilising Whittle and Surpac optimisation software and mine planning software. The study was based on the January 2022 FSSI MIK recoverable resource model described in an announcement to the ASX on 28 January 20223. • A single third-party processing plant operating under a toll treatment agreement was considered. This processing plant is located approximately 82km from Munda. A range of outcomes were defined based on gold price. • At gold prices from AUD$2,400 to AUD$2,800/oz, the Production Target for the Project ranges from approximately: • 1.67Mt at 2.2g/t producing 112.0koz gold, to • 2.18Mt at 1.9g/t producing 129.1koz gold. • The Production Target generates an undiscounted accumulated cash surplus after payment of all working capital costs, but excluding pre-mining capital requirements, of approximately $54.7M to $101.4M. • Mining is contemplated over an approximately 3-year period (13 calendar quarters). • Pre-mining capital and start-up costs are estimated to be approximately $0.8M to $1.7M. • Sensitivity of the Base Case scenario to gold price was assessed. Results suggest that project economics are robust for a broad range of gold prices. Figure 3. Munda optimised pit outline, starter pit and existing trial pit with proposed 10m x 10m pattern grade control drill holes. 2 3 (ASX: AWJ) 28 June 2023; Positive Scoping Study for Munda Gold Project. (ASX;AWJ) 28 January 2022; Increase in Estimated Resources at Munda and Reclassification from Inferred to Indicated. Review of Activities 13 Back to Contents Miitel South Prospect To estimate working capital requirements, an approach was taken to produce a starter pit design which was evaluated using the same cost and revenue assumptions, with the total operating costs less the processing costs allocated as working capital. This Stage 1 pit is estimated to have a mine life of less than 3 months. • Working capital requirements of approximately $3.9M to $8.1M were estimated based on a Stage 1 starter pit design. The positive results for the Munda scoping study led to a decision to grade control drill an area of shallow gold mineralization, including the starter pit defined in the scoping study. The drilling was undertaken by Kalgoorlie-based Total Drilling Services and utilised a 10m x 10m grid with average hole depths of 31m. It was acknowledged that drill spacing during mining would need to be closer spaced but that a 10m x 10m pattern would be appropriate to assess and design a starter pit. Final results from the drill campaign were announced to the market in April 2024. Three holes from a planned eight-hole RC program were completed at the Miitel South Prospect in February 20234. The holes targeted a gold mineralized trend defined by a combination of historic workings, rock chip sampling and soil sampling marginal to a substantial historic alluvial processing operation. The best intersection of 2m @ 2.84g/t Au from 39m was returned for AIRC001 (Figure 4). This interval coincided with laminated quartz veining, up to 0.5% pyrite and some magnetite alteration. Results for the 3 holes are modest, however, the mineralised trend has been defined for over 500m and the sparse drilling has intersected widespread sulphide mineralisation together with quartz veining. These features provide ample justification to continue with the initial RC program and, in particular, to access the mineralised trend from the northern side. A track-mounted RC rig is considered more appropriate considering the tight access and restrictions on the truck mounted rig used previously. Figure 4. Miitel South Prospect and 2023 RC drill holes. 4 (ASX: AWJ) 13 April 2023; Miitel South Gold Prospect RC Drilling Results 14 Auric Mining Annual Report 2023 Mineral Resources Annual Statement & Review Gold Mineral Resources estimated for Jeffreys Find and for Munda were reported in the 2022 Annual Report at 0.50 g/t Au cut off as shown in Table 1. Mineral Resource estimates based on information available as of December 2023, reported at the same 0.5 g/t Au cut off are shown in Table 2. The change in Jeffreys Find Mineral Resources reflects depletion by mining during 2023. There has been no mining at Munda and Munda Mineral Resources are unchanged from December 2022. Table 1. Gold Mineral Resource Estimates at 0.5 g/t cut off – 31 December 2022. Deposit Munda Jeffreys Find Combined Category Tonnes (Million) Au g/t Au koz Indicated 3.68 1.38 163.1 Inferred 0.80 1.39 35.6 Subtotal 4.48 1.38 198.7 Indicated 0.91 1.26 36.9 Inferred 0.30 1.08 10.3 Subtotal 1.21 1.22 47.2 Indicated 4.59 1.26 200.0 Inferred 1.10 1.41 45.9 Total 5.69 1.35 245.9 Table 2. Gold Mineral Resource Estimates at 0.5 g/t cut off – 31 December 2023. Deposit Munda Jeffreys Find Combined Category Tonnes (Million) Au g/t Au koz Indicated 3.68 1.38 163.1 Inferred 0.80 1.39 35.6 Subtotal 4.48 1.38 198.7 Indicated 0.62 1.21 24.1 Inferred 0.25 1.04 8.4 Subtotal 0.87 1.16 32.5 Indicated 4.30 1.35 187.2 Inferred 1.05 1.30 44.0 Total 5.35 1.34 231.2 NB. Figures are rounded to reflect the precision of the estimates and include rounding discrepancies. Details of the Jeffreys Find Mineral Resource estimate, prior to mining, are reported in the Company’s ASX announcement dated 2 March 2021 and titled ‘Auric Mining Limited Resources Summary and Exploration Update’ and available to view on www.auricmining.com.au. The Mineral Resources have been adjusted to account for depletion by mining. Details of the Munda Mineral Resource estimate are reported in the Company’s ASX announcement dated 28 January 2022 titled ‘Increase in Estimated Resources at Munda and Reclassification from Inferred to Indicated’ and available to view on www.auricmining.com.au. Review of Activities Back to Contents 15 Estimation Governance Statement The Company ensures that all Mineral Resource estimates are subject to appropriate levels of governance and internal controls. All data collection is conducted to industry standards including appropriate quality control and data validation procedures. It is managed by Company employees and overseen by the Company’s Technical Director. Estimation of resources is undertaken by independent consultants with many years of experience in the estimation of gold and other mineral resources. Mineral resources estimation utilised the method of Multiple Indicator Kriging (MIK) with block support adjustment reflecting selective open pit mining. Competent Persons Statements The information in the Annual Mineral Resources Statement that relates to Mineral Resource estimation for the Munda Gold Project and Jeffreys Find Gold Project is based on, and fairly represents information and supporting documentation compiled by Mr Jonathon Abbott, a Competent Person who is a Member of the Australian Institute of Geoscientists and a director of Matrix Resource Consultants Pty Ltd. Mr Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to the Open Pit Mining Scoping Study for Munda and to Production Targets derived from the Study is based on information compiled by Mr Gary McCrae, a Competent Person who is a Member or Fellow of The Australian Institute of Mining and Metallurgy and a full time employee of Minecomp Pty Ltd. Mr McCrae has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr McCrae consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to exploration results is based on and fairly represents information and supporting documentation compiled by Mr John Utley, who is a full-time employee of Auric Mining Limited. Mr Utley is a Competent Person and a member of the Australian Institute of Geoscientists. Mr Utley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Utley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 16 Auric Mining Annual Report 2023 Schedule of Tenements Table 3. Tenement Schedule as at 31 December 2023. Tenement Project Location Status Registered Holder Mineral Rights Widgiemooltha M15/74 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights M15/75 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights M15/698 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights M15/699 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights M15/87 Widgiemooltha WA Live Widgie Gold 100% All Minerals except Ni, Li E15/1553 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights E15/1576 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights E15/1583 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights P15/6092 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights P15/6387 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights P15/6570 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights P15/6612 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights P15/6362 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights E15/1749 Widgiemooltha WA Live Mt Edwards Critical Metals 100% Au Rights L15/414 Widgiemooltha WA Live Widgie Gold Infrastructure E15/1949 Widgiemooltha WA Live Widgie Gold 100% All minerals E15/1950 Widgiemooltha WA Live Widgie Gold 100% All minerals E15/2042 Widgiemooltha WA Pending Widgie Gold 100% All minerals E15/2043 Widgiemooltha WA Pending Widgie Gold 100% All minerals P15/6808 Widgiemooltha WA Live Widgie Gold 100% All minerals P15/6539 Widgiemooltha WA Pending Mt Edwards Critical Metals 100% Au Rights P15/6853 Widgiemooltha WA Pending Widgie Gold 100% All minerals Review of Activities Tenement 17 Project Location Status Registered Holder Mineral Rights M63/242 Jeffreys Find WA Live Jeffreys Find 100% All Minerals L63/97 Jeffreys Find WA Live Jeffreys Find Infrastructure E15/1689 Spargoville WA Live Spargoville Minerals 100% All Minerals E15/1688 Spargoville WA Live Spargoville Minerals 100% All Minerals E15/1665 Spargoville WA Pending Mt Edwards Critical Metals 100% Au Rights P15/5905 Spargoville WA Live Mt Edwards Critical Metals 100% Au Rights P15/5906 Spargoville WA Live Mt Edwards Critical Metals 100% Au Rights P15/6408 Spargoville WA Live Mt Edwards Critical Metals 100% Au Rights P15/6758 Spargoville WA Pending Spargoville Minerals 100% All Minerals M15/1899 Spargoville WA Pending Mt Edwards Critical Metals 100% Au Rights E15/1945 Chalice West WA Live Chalice West 100% All Minerals E15/1978 Chalice West WA Live Chalice West 100% All Minerals E15/1979 Chalice West WA Live Chalice West 100% All Minerals Jeffreys Find Spargoville Chalice West 18 Auric Mining Annual Report 2023 Financial Report 03 Financial Report Back to Contents 19 Directors’ Report General Information Operating and Financial Review The financial statements cover both Auric Mining Limited as an individual entity and the consolidated entity consisting of Auric Mining Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Auric Mining Limited’s functional and presentation currency. During the year, the Company completed further RC drilling programs at both Chalice West and Miitel South. Auric Mining Limited is a listed public company limited by shares, incorporated and domiciled in Australia. The Directors present their report, together with the financial statements, on the Consolidated Entity (referred to hereafter as the ‘Consolidated Entity’ or ‘Group’) consisting of Auric Mining Limited (referred to hereafter as “Auric’, the “Company” or “Parent Entity”) and the entities it controlled at the end of, or during, the year ended 31 December 2023. Directors The following persons were Directors of Auric Mining Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: • Steven Morris – Non-Executive Chair • Mark English – Managing Director • John Utley – Executive Director Particulars of each Director’s experience and qualifications are set out later in this report. Principal Activities The principal activities of the Group during the financial period were gold exploration, mining and development. The Company executed grade control drilling at Jeffreys Find Gold Deposit as announced to ASX on 16 January 2023. The Company executed a toll milling agreement between FMR Investments Pty Ltd and BML Ventures Pty Ltd for the Jeffreys Find Gold Deposit as announced to ASX on 31 March 2023. On 13 April 2023, the Company announced the Chalice West and Miitel South RC Drilling results. BML Ventures Pty Ltd commenced open-pit gold mining at Jeffreys Find Gold Mine as announced to ASX on 17 May 2023. The Company completed a scoping study for Munda Gold Deposit as announced to ASX on 28 June 2023. The Company announce that toll milling of the first batch of approximately 30,000 tonnes of ore from its Jeffreys Find Gold Mine has commenced as announced to ASX on 20 July 2023. On 8 August 2023, the Company announced the toll milling and processing of the first parcel of gold ore had been completed. The Company completed first stage of open pit mining at Jeffreys Find. 1,721 ounces of gold was produced and sold from the first 36,180 tonne parcel as announced to ASX on 25 August 2023. A second gold milling campaign commenced at the Greenfields Mill on 11 September 2023. Approximately 145,000 tonnes of ore was processed from the first stage pit as announced to ASX. On 1 December 2023, the Company announced a final reconciliation from Stage One mining of Jeffreys Find Gold Mine. Total 9,741 ounces of gold were produced and Auric received its share of the surplus cash of $4.77 million. 20 Auric Mining Annual Report 2023 The earnings for the Consolidated Entity after providing for income tax amounted to $1,313,644 (31 December 2022: loss of $1,106,692). Significant Changes in the State of Affairs There were no significant changes in the state of affairs aside from the matters referred to in the review of operations above of the Consolidated Entity during the financial year. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Matters Subsequent to the End of the Financial Year After the year ended 31 December 2023, the Company submitted 2 tenements applications to acquire E15/2069 and E15/2073. The Company issued 2,000,000 unquoted options expiry 31 January 2028 exercisable at $0.15 and 2,000,000 unquoted options expiry 31 January 2029 exercisable at $0.225 to Canary Capital Pty Ltd (and nominees) as part of their corporate advisory services provided to the Company. No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the Consolidated Entity’s operations, the results of those operations, or the Consolidated Entity’s state of affairs in future financial years. Likely Developments and Expected Results of Operations Information on likely developments, future prospects and business strategies of the operations of the Consolidated Entity and the expected results of operations, not otherwise disclosed in this report, have not been included in this report because the Directors believe that the inclusion of such information would be likely to result in unreasonable prejudice to the Consolidated Entity. Indemnifying Officers or Auditor During the year, the Group maintained an insurance policy which indemnifies the directors and officers in respect of any liability incurred in connection with the performance of their duties as directors and officers of the Group to the extent permitted by the Corporations Act 2001. The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Group has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity. Environmental Regulation The Consolidated Entity is not subject to any significant environmental regulation under Australian Commonwealth or State law as it is still in exploration or mining activities. Risk Statement The Consolidated Entity is committed to the effective management of risk to reduce uncertainty in the Consolidated Entity’s business outcomes and to protect and enhance shareholder value. There are various risks that could have a material impact on the achievement of the Consolidated Entity’s strategic objectives and future prospects. Key risks and mitigation activities associated with the Consolidated Entity’s obje