CCZ Castillo Copper Limited

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2024

 

	NOTES	2024 $	2023 $
Interest received		35,661	15,615
Other income	4	415,922	-
TOTAL		451,583	15,615
Listing and public company expenses		(169,688)	(158,585)
Accounting and audit expenses		(163,150)	(125,358)
Consulting and Directors' fees		(544,718)	(515,196)
Impairment of exploration expenditure	9	(419,369)	(5,672,872)
Other expenses	4	(616,507)	(485,832)
LOSS BEFORE INCOME TAX		(1,461,849)	(6,942,228)
Income tax benefit	5	-	-
LOSS AFTER INCOME TAX		(1,461,849)	(6,942,228)
OTHER COMPREHENSIVE INCOME
Item that may be reclassified subsequently to profit or loss
Foreign currency translation		1,154	1,359
TOTAL OTHER COMPREHENSIVE INCOME		1,154	1,359
TOTAL COMPREHENSIVE LOSS FOR THE YEAR		(1,460,695)	(6,940,869)
Basic and diluted loss per share (cents per share)	13	(0.11)	(0.53)

 

The accompanying notes form part of these financial statements.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2024

 

	NOTES	2024 $	2023 $
CURRENT ASSETS
Cash and cash equivalents	6	1,118,294	2,897,611
Financial assets at fair value through profit or loss	7	376,344	-
Other assets	8	420,707	78,845
TOTAL CURRENT ASSETS		1,915,345	2,976,456
NON-CURRENT ASSETS
Other assets	8	314,361	486,961
Deferred exploration and evaluation expenditure	9	8,493,010	8,736,198
TOTAL NON-CURRENT ASSETS		8,807,371	9,223,159
TOTAL ASSETS		10,722,716	12,199,615
CURRENT LIABILITIES
Trade and other payables		112,142	128,346
TOTAL CURRENT LIABILITIES		112,142	128,346
TOTAL LIABILITIES		112,142	128,346
NET ASSETS		10,610,574	12,071,269
EQUITY
Issued capital	11	35,964,396	35,964,396
Reserves	12	4,082,889	4,081,735
Accumulated losses		(29,436,711)	(27,974,862)
TOTAL EQUITY		10,610,574	12,071,269

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2024

	ISSUED CAPITAL     $	SHARE BASED PAYMENT RESERVE $	FOREIGN CURRENCY TRANSLATION RESERVE $	ACCUMULATED LOSSES     $	TOTAL       $
Balance at 1 July 2023	35,964,396	4,230,962	(149,227)	(27,974,862)	12,071,269
Loss for the year	-	-	-	(1,461,849)	(1,461,849)
Other comprehensive income	-	-	1,154	-	1,154
Total Comprehensive Loss	-	-	1,154	(1,461,849)	(1,460,695)
Transactions with owners in their capacity as owners	-	-	-	-	-
Balance as at 30 June 2024	35,964,396	4,230,962	(148,073)	(29,436,711)	10,610,574

 

 

	ISSUED CAPITAL     $	SHARE BASED PAYMENT RESERVE $	FOREIGN CURRENCY TRANSLATION RESERVE $	ACCUMULATED LOSSES     $	TOTAL         $
Balance at 1 July 2022	35,964,396	4,230,962	(150,586)	(21,032,634)	19,012,138
Loss for the year				(6,942,228)	(6,942,228)
Other comprehensive income			1,359		1,359
Total Comprehensive Loss			1,359	(6,942,228)	(6,940,869)
Transactions with owners in their capacity as owners	-	-	-	-	-
Balance as at 30 June 2024	35,964,396	4,230,962	(149,227)	(27,974,862)	12,071,269

 

The accompanying notes form part of these financial statements.

 

 

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2024

 

	NOTES	2024 $	2023 $
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received		32,261	15,615
Payments to suppliers and employees		(1,193,574)	(1,115,720)
NET CASH USED IN OPERATING ACTIVITIES	6	(1,161,313)	(1,100,105)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for tenements bonds		-	(82,000)
Exploration and evaluation expenditure	9	(617,285)	(1,678,114)
NET CASH USED IN INVESTING ACTIVITIES		(617,285)	(1,760,114)
CASH FLOWS FROM FINANCING ACTIVITIES		-	-
NET CASH FROM FINANCING ACTIVITIES		-	-
NET (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,778,598)	(2,860,219)
Cash and cash equivalents at beginning of year		2,897,611	5,754,049
Foreign exchanges variances on cash		(719)	3,781
CASH AND CASH EQUIVALENTS AT END OF FINANCIAL YEAR	6	1,118,294	2,897,611

 

The accompanying notes form part of these financial statements.

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 FOR THE YEAR ENDED 30 JUNE 2024

 

1.    CORPORATE INFORMATION

 

The financial report of Castillo Copper Limited and its subsidiaries ("Castillo Copper" or "the Group") for the year ended 30 June 2024 was authorised for issue in accordance with a resolution of the Directors on 26 September 2024.

 

Castillo Copper Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the Australian Securities Exchange and London Stock Exchange. The nature of the operations and the principal activities of the Group are described in the Directors' Report.

 

2.    SUMMARY OF MATERIAL ACCOUNTING POLICIES

 

(A)           BASIS OF PREPARATION

 

The financial report is a general-purpose financial report, which has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards. The financial report has been prepared on an accrual basis and is based on historical costs. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

 

The presentation currency is Australian dollars.

 

(B)          STATEMENT OF COMPLIANCE

 

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

 

(C)          ADOPTION OF NEW AND REVISED STANDARDS

 

Standards and Interpretations applicable 30 June 2024.

 

In the year ended 30 June 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and therefore, no material change is necessary to Group accounting policies.

 

Standards and interpretations issued, but not yet effective.The Directors have also reviewed all Standards and Interpretations issued, but not yet effective for the period 30 June 2024. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations issued but not yet effective on the Company.

 

(D)          GOING CONCERN

This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business.

 

The Group incurred a net loss for the year ended 30 June 2024 of of $1,461,849 and net cash outflows from operating activities of $1,161,313 net cash outflows from investing activities of $617,285 and net cash flows from financing activities of $Nil. At 30 June 2024, the Group had a net asset position of $10,610,574. The cash and cash equivalents balance at 30 June 2024 was $1,118,294.

 

Notwithstanding these results, the Directors believe that the Company will be able to continue as a going concern and as a result the financial statements have been prepared on a going concern basis. The financial report has been prepared on the assumption that the Group is a going concern for the following reasons:

 

·    the ability of the Group to scale back parts of its operations and reduce costs if required;

 

·    the Board is of the opinion that the Group has, or shall have access to, sufficient funds to meet the planned corporate activities and working capital requirements; and

 

·    as the Group is an ASX-listed entity, the Group has the ability to raise additional funds, if required.

 

In the event that the Group is unable to achieve the actions noted above, there is a material uncertainty that may cast significant doubt as to the Group's ability to continue as a going concern, and it may be required to realise its assets at amounts different to those currently recognised, settle liabilities other than in the ordinary course of business and make provisions for other costs which may arise as a result of cessation or curtailment of normal business operations.

 

The directors have reviewed the Group's financial position and are of the opinion that the use of the going concern basis of accounting is appropriate.

 

(E)          BASIS OF CONSOLIDATION

 

The consolidated financial statements comprise the financial statements of Castillo Copper Limited and its subsidiaries as at 30 June

each year ('the Company').

 

Subsidiaries are all those entities (including special purpose entities) over which the Company has control. The Company controls an entity when the company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the Group.

 

The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies.

 

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-company transactions have been eliminated in full.

 

Subsidiaries are fully consolidated from the date on which control is obtained by the Company and cease to be consolidated from the date on which control is transferred out of the Company.

A change in the ownership interest of a subsidiary that does not result in a loss of control, is accounted for as an equity transaction.

 

(F)          FOREIGN CURRENCY TRANSLATION

 

(I)           FUNCTIONAL AND PRESENTATION CURRENCY

 

Items included in the financial statements of each of the Company's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The functional and presentation currency of Castillo Copper Limited is Australian Dollars. The functional currency of the Chilean subsidiary is Chilean Peso. The functional currency of the Zambian subsidiaries is United States Dollars.

 

(II)          TRANSACTIONS AND BALANCES

 

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

 

(III)         GROUP ENTITIES

 

The results and financial position of all the Company entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

 

·    assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

 

·    income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and

 

·    all resulting exchange differences are recognised as a separate component of equity.

 

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to foreign currency translation reserve. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of comprehensive income, as part of the gain or loss on sale where applicable.

 

(G)         IMPAIRMENT OF NON-FINANCIAL ASSETS

 

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets of the Group. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

 

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

 

Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

 

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to

its recoverable amount. That increased amount cannot exceed the carrying amount that would

have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

 

(H)          EXPLORATION AND EVALUATION EXPENDITURE

 

Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest. Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation.

 

Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the following conditions is met:

 

·    such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or

 

·    exploration and evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

 

Expenditure which fails to meet the conditions outlined above is impaired; furthermore,

the Directors regularly review the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be recoverable.

 

Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the requirements of AASB 6 Exploration for and evaluation of mineral resources. Exploration assets acquired are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is met.

 

Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired, is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity.

 

Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to be recovered. When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.

 

Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group's rights of tenure to that area

of interest are current.

 

(I)           CASH AND CASH EQUIVALENTS

 

Cash and short term deposits in the statement of financial position include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as current liabilities in the statement of financial position. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as described above.

 

(J)           INVESTMENTS AND OTHER FINANCIAL ASSETS

 

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided.

 

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, its carrying value is written off.

 

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

 

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

 

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

 

Financial assets at fair value through other comprehensive income include equity investments which the consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.

 

IMPAIRMENT OF FINANCIAL ASSETS

 

The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

 

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months.

 

Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

 

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss.

 

(K)          CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

 

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future.

 

The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE

 

The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale.

 

Factors which could impact the future recoverability include the level of proved, probable and inferred mineral resources, future technological changes which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices.

 

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, this will reduce profits and net assets in the period in which this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made.

 

SHARE-BASED PAYMENT TRANSACTIONS

 

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using a Black and Scholes model, using the assumptions detailed in note 11.

 

REHABILITATION PROVISION

 

The Group's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Group recognises management's best estimate for asset retirement obligations in the period in which they are incurred. Actual costs incurred in the future periods could differ materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and discount rates could affect the carrying amount of this provision.

 

(L)           REHABILITATION PROVISION

 

A provision for rehabilitation and restoration is recognised when there is a present obligation as a result of activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of abandoning sites, removing facilities and restoring the affected areas.

 

The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the balance date.

 

Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each balance date.

 

The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision for rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset.

 

(M)        INCOME TAX

 

Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the near future.

 

Deferred tax is calculated at the tax rates that are expected to apply to the period

 

when the asset is realised or liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

 

The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is expected to be obtained. Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive income.

 

(N)         ISSUED CAPITAL

 

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

 

(O)         REVENUE

 

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following specific recognition criteria must also be met before revenue is recognised:

 

INTEREST INCOME

 

Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset.

 

(P)          EARNINGS / LOSS PER SHARE

 

BASIC EARNINGS / LOSS PER SHARE

 

Basic earnings / loss per share is calculated by dividing the profit/loss attributable to equity holders of the Group, excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus elements.

 

DILUTED EARNINGS / LOSS PER SHARE

 

Diluted earnings / loss per share is calculated as net profit/loss attributable to members of the Group, adjusted for:

·    costs of servicing equity (other than dividends) and preference share dividends;

·    the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

·    other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; and

·    divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus elements.

 

(Q)         GOODS AND SERVICES TAX

 

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

 

Receivables and payables in the statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

 

(R)          TRADE AND OTHER PAYABLES

 

Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the Group.

 

(S)          SHARE-BASED PAYMENT TRANSACTIONS

 

The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the Group in the form of share based payment transactions, whereby individuals render services in exchange for shares or rights over shares ('equity settled transactions').

The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using the Black Scholes formula taking into account the terms and conditions upon which the instruments were granted, as discussed in note 11(e).

 

In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Castillo Copper Limited ('market conditions').

 

The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award ('vesting date').

 

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the Group, will ultimately vest. This opinion is formed based on the best available information at balance date.

 

No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for a period represents the movement in cumulative expense recognised at the beginning and end

of the period.

 

 

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.

 

Where the terms of an equity settled award are modified, as a minimum, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification.

 

Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and services received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 13).

 

(T)          COMPARATIVE INFORMATION

 

When required by Accounting Standards, comparative information has been reclassified to be consistent with the presentation in

the current year.

 

(U)         OPERATING SEGMENTS

 

Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM').

 

The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

 

(V)          FAIR VALUE MEASUREMENT

 

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principle market; or in the absence of a principal market, in the most advantageous market.

 

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

 

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed each reporting date and transfers between levels are determined based on a reassessment of the lowest level input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

 

(W)        PARENT ENTITY FINANCIAL INFORMATION

 

The financial information for the parent entity, Castillo Copper Limited, disclosed in Note 17 has been prepared on the same basis as the consolidated financial statements, except as set out below.

 

INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE ENTITIES

 

Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the parent entity's financial statements. Dividends received from associates are recognised in the parent entity's profit or loss, rather than being deducted from the carrying amount of these investments.

 

3. SEGMENT INFORMATION

 

Management has determined the operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions. The entity has four geographical segments being exploration in Northwest Queensland (NWQ), New South Wales (Cangai), New South Wales (Broken Hill) and Zambia. Revenue attributable to all segments is immaterial. Allocationof asset, liabilities, income and expenses to each segment is shown below:

 

2024	NWQ (QLD) $	CANGAI (NSW) $	BROKEN HILL (NSW) $	ZAMBIA   $	UNALLOCATED   $	TOTAL   $
SEGMENT ASSETS AND LIABILITIES
Current assets	-	152,600	20,000	-	1,742,745	1,915,345
Non-current assets	6,690,813	168,500	1,316,415	631,522	122	8,807,371
Current liabilities	-	-	-	-	(112,142)	(112,142)
SEGMENT INCOME AND EXPENSES
Interest income	-	-	-	-	35,661	35,661
Other income	-	-	415,922	-	-	415,922
Other expenses	-	(210,247)	-	(228,616)	(1,474,569)	(1,913,432)
Loss before tax	-	(210,247)	415,922	(228,616)	(1,438,908)	(1,461,849)

 

2023	NWQ (QLD) $	CANGAI (NSW) $	BROKEN HILL (NSW) $	ZAMBIA   $	UNALLOCATED   $	TOTAL   $
SEGMENT ASSETS AND LIABILITIES
Current assets	-	-	-	-	2,976,456	2,976,456
Non-current assets	6,605,846	321,100	1,527,490	768,601	122	9,223,159
Current liabilities	-	-	-	-	(128,346)	(128,346)
SEGMENT INCOME AND EXPENSES
Interest income	-	-	-	-	15,615	15,615
Other expenses	-	(5,322,762)	-	(350,110)	(1,284,971)	(6,957,843)
Loss before tax	-	(5,322,762)	-	(350,110)	(1,269,356)	(6,942,228)

 

4.    OTHER INCOME AND EXPENSES

 

	2024 $	2023 $
OTHER INCOME
Gain on sale of exploration assets1	415,922	-
Total other income	415,922	-
1Refer to Note 9.
OTHER EXPENSES
Travel and Accomodation	1,327	6,780
Legal	25,433	7,860
Loss on revaluation of assets held at fair value through the profit and loss	134,409	-
Insurance	74,609	98,270
Foreign Exchange Losses / (Gains)	720	(482)
Investor Relations	335,416	336,944
Other	44,593	36,460
Total Other Expenses	616,507	485,832

 

 

5.    INCOME TAX

(A)  INCOME TAX EXPENSE/(BENEFIT)

 

	2024 $	2023 $
Major component of tax expense for the year:	-	-
Current tax	-	-
Deferred tax	-	-
Total	-	-

 

 

 

(B) NUMERICAL RECONCILIATION BETWEEN AGGREGATE TAX EXPENSE RECOGNISED IN THE STATEMENT OF COMPREHENSIVE INCOME AND TAX EXPENSE CALCULATED PER THE STATUTORY INCOME TAX RATE

 

A reconciliation between tax expense and the product of accounting result before income tax multiplied by the Group's applicable tax rate is as follows:

 

	2024 $	2023 $
Loss from continuing operations before income tax expense	(1,461,849)	(6,942,228)
Tax at the Australian rate of 25% (2023: 30%)	(365,462)	(2,082,668)
Non-allowable expenses	1,872	-
Income tax benefit not bought to account	363,590	2,082,668
Income tax expense	-	-

 

 

(C)          THE FOLLOWING DEFERRED TAX BALANCES HAVE NOT BEEN BOUGHT TO ACCOUNT:

 

	2024 $	2023 $
ASSETS
Total losses available to offset against future taxable income	6,539,166	7,353,655
Total accrued expenses	9,699	12,461
Total share issue costs deductible over five years	111,651	285,972
LIABILITIES
Prepayments	(10,102)	-
Financial assets held at fair value through profit and loss	(33,323)	-
Deferred tax liability on capitalised exploration costs	(2,136,828)	(2,390,279)
Deferred tax assets not brought to account as realisation is not regarded as probable	(4,480,262)	(5,261,809)
Deferred tax asset recognised	-	-

 

 

(D)          UNUSED TAX LOSSES

 

	2024 $	2023 $
Unused tax losses	26,156,655	24,512,183
Potential tax benefit not recognised at 25% (2023: 30%)	6,539,166	7,353,655

 

The benefit for tax losses will only be obtained if:

 

(i)            the Group derives future assessable income in Australia of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised;

(ii)           the Group continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and

(iii)          no changes in tax legislation in Australia, adversely affect the Group in realising the benefit from the deductions for the losses.

 

6.    CASH AND CASH EQUIVALANTS

 

	2024 $	2023 $
(A) RECONCILIATION OF OPERATING LOSS AFTER TAX TO NET THE CASH FLOWS USED IN OPERATIONS
Loss from ordinary activities after tax	(1,461,849)	(6,942,228)
NON-CASH ITEMS
Loss on revaluation of financial assets held at fair value through profit or loss	134,409	-
Impairment expense	419,369	5,672,872
Foreign exchange loss/(gain)	1,874	(455)
Sale of non current assets for shares	(415,922)	-
PROFIT & LOSS ITEMS CLASSED AS INVESTING ACTIVITIES
Consulting fees relating to exploration expenditure	163,515	150,000
CHANGES IN ASSETS AND LIABILITIES
(Decrease) / increase in trade and other payables	(15,682)	26,942
Decrease / (Increase) in other receivables	12,973	(7,236)
Net cash flow used in operating activities	(1,161,313)	(1,100,105)

 

(B) RECONCILIATION OF CASH

 

	2024 $	2023 $
CASH BALANCE COMPRISES:
Cash at bank	718,294	2,805,611
Term deposits	400,000	92,000
Total	1,118,294	2,897,611

 

Cash at bank earns interest at floating rates based on daily bank deposit rates. Term deposits earn interest at fixed rates based on the 3-month term deposit rate.

 

7.    FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

 

	2024 $	2023 $
CURRENT
Listed ordinary shares - designated at fair value through profit or loss	376,344	-
Total	376,344	-

 

RECONCILIATION

Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out below:

 

	2024 $	2023 $
Opening fair value	-	-
Additions	510,753	-
Revaluation increments	(134,409)	-
Closing fair value	376,344	-

 

Ordinary shares at fair value through profit or loss are measured at fair value based on quoted prices (unadjusted) in active markets for identical assets that the entity can access at the measurement date.

 

8.    OTHER ASSETS

 

	2024 $	2023 $
CURRENT
GST/VAT receivable	21,544	37,764
Prepayments	40,408	41,081
Accrued interest	3,400	-
Tenement guarantees	172,600	-
R&D Tax Incentive receivable	182,755	-
Total	420,707	78,845
NON-CURRENT
Tenement guarantees	314,361	486,961
Total	314,361	486,961

 

Current tenement guarantees relate to security deposits that were refunded by the New South Wales State Government in August 2024.

 

9.    DEFFERED EXPLORATION AND EVALUATION EXPENDITURE

 

	2024 $	2023 $
EXPLORATION AND EVALUATION PHASE:
Opening balance	8,736,198	12,899,486
Exploration and evaluation expenditure during the period	453,768	1,509,584
R&D Tax Incentive receivable relating to capitalised exploration expenditure	(182,756)	-
Impairment1	(419,369)	(5,672,872)
Sale of exploration assets2	(94,831)	-
Closing balance	8,493,010	8,736,198

 

The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phase is dependent on the successful development and commercial exploration or sale of respective areas.

 

1 At each reporting date, the Group undertakes an assessment of the carrying amount of its exploration and evaluation assets. During the period, the Group identified indicators or impairment on certain exploration and evaluation assets under AASB 6 Exploration and Evaluation of Mineral Resources. As a result of this review, an impairment charge of $419,369 has been recognised in the statement of profit or loss and other comprehensive income in relation to areas of interest where no future exploration and evaluation activities are expected or where the right to explore has expired.

 

2 On 21 March 2024 the sale of the Company's Exploration Licenses 8572 and 8599 in Broken Hill, NSW, to Rimfire Pacific Mining Limited (ASX: RIM) as announced on 11 January 2024 was completed. As consideration for the sale, the Group received 13,440,861 shares in RIM with a value of $510,753. As a result, a gain on sale of exploration assets of $415,922 has been recognised in the statement of profit or loss and other comprehensive income.

 

 

10.  TRADE AND OTHER PAYABLES

 

 

	2024 $	2023 $
CURRENT
Trade and other payables	81,642	87,586
Accruals	30,500	40,758
Total	112,142	128,344

 

 

Trade and other payables are non-interest bearing and payable on demand. Due to their short-term nature, the carrying value of trade and other payables is assumed to approximate their fair value.

 

11.  ISSUED CAPITAL

 

	2024 $	2023 $
(A) ISSUED AND PAID UP CAPITAL
Ordinary shares fully paid	35,965,396	35,965,396

 

	NUMBER OF SHARES	$	NUMBER OF SHARES	$
(B) MOVEMENTS IN ORDINARY SHARES ON ISSUE
Opening balance	1,299,505,355	35,964,396	1,299,505,355	35,964,396
Closing balance	1,299,505,355	35,964,396	1,299,505,355	35,964,396

 

 

 

(C) ORDINARY SHARES

 

The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.

 

(D) SHARE OPTIONS

 

At 30 June 2024 there were 11,000,000 (30 June 2023: 132,699,971) unlisted options and 163,439,781 (30 June 2023: 163,439,781) listed options (ASX: CCZOA, CCZOB) with various exercise prices and expiry dates.

 

The following share-based payment arrangements were in place during the period:

 

SERIES	NUMBER	GRANT DATE	EXPIRY DATE	EXCERSISE PRICE $	FAIR VALUE AT GRANT DATE	VESTING DATE	LISTED / UNLISTED
1	14,285,714	15 June 2021	31 July 2024	$0.08	$0.022	15 June 2021	Listed
2	2,955,665	16 June 2021	1 August 2024	£0.044	$0.021	16 June 2021	Listed
3	2,418,044	5 August 2021	31 July 2024	$0.08	$0.007	5 August 2021	Listed
4	462,378	17 August 2021	1 August 2024	£0.044	$0.017	17 August 2021	Listed
5	4,000,000	27 October 2021	31 July 2024	$0.08	$0.007	27 October 2021	Listed
6	3,000,000	30 November 2021	31 July 2024	$0.08	$0.010	30 November 2021	Unlisted
7	8,000,000	1 February 2022	31 January 2025	$0.08	$0.007	1 February 2022	Unlisted

 

No options were exercised during the period.

 

79,117,618 listed options and 42,582,353 unlisted options expired during the period. Since the end of the financial year, 163,439,781 listed and 3,000,000 unlisted options have expired.

 

No listed or unlisted options have been issued since the end of the year.

 

Weighted remaining contractual life (years)        0.11

Weighted average exercise price              $0.08

 

Options granted as equity compensation benefits to Key Management Personnel during the year are set out in the audited remuneration report.

 

(E) PERFORMANCE SHARES

 

The fair value of the equity-settled unlisted options granted in prior periods was estimated as at the date of grant using the Black and Scholes model taking into account the terms and conditions upon which they were granted, as follows: 46,875,000 CLASS A

 

 

PERFORMANCE SHARES

 

Conditions precedent - converting to an equal number of Castillo shares on delineation of a JORC resource of 200,000 tonnes of contained copper at a minimum grade of 0.5% within 5 years of execution of the Share Sale Agreement. 46,875,000 CLASS B

 

PERFORMANCE SHARES

 

Conditions precedent - converting to an equal number Castillo shares on completion of a preliminary feasibility study demonstrating an internal rate of return greater than 25% within 5 years of execution of the Share Sale Agreement.

 

The performance shares will expire on 20 February 2025.

 

12.  RESERVES

 

SHARE BASED PAYMENT RESERVE

 

The share based payment reserve is used to record the value of equity benefits provided to Directors and executives as part of their remuneration and non-employees for their services.

 

FOREIGN CURRENCY TRANSLATION RESERVE

 

The foreign exchange differences arising on translation of balances originally denominated in a foreign currency into the functional currency are taken

to the foreign currency translation reserve. The reserve is recognised in profit or loss when the net investment is disposed of.

 

13.  LOSS PER SHARE

 

	2024 $	2023 $
Loss used in calculating basic and dilutive EPS	(1,461,849)	(6,942,228)
	2024	2023
	NUMBER OF SHARES
Weighted average number of ordinary shares used in calculating basic loss per share:	1,299,505,355	1,299,505,355
Effect of dilution:
Share options	-	-
Adjusted weighted average number of ordinary shares used in calculating diluted loss per share:	1,299,505,355	1,299,505,355
Basic and diluted loss per share (cents per share)	(0.11)	(0.53)

 

 

There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

 

There are no potential ordinary shares on issue that are considered to be dilutive, therefore basic earnings per share also represents diluted earnings per share.

 

 

14.  AUDITOR'S RENUMERATION

 

 

The auditor of Castillo Copper Limited is HLB Mann Judd. Amounts received or due and receivable for:

 

	2024 $	2023 $
Audit or review of the financial report of the entity and any other entity in the Group	50,599	46,358
Total	50,599	46,358

 

 

 

 

 

 

 

15.  RELATED PARTY DISCLOSURES

 

 

(A)          KEY MANAGEMENT PERSONNEL

 

Compensation of key management personnel

 

	2024 $	2023 $
Short term employee benefits	322,948	360,553
Post-employment benefits	14,380	2,139
Total	337,328	362,692

 

 

B)            OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL

 

Field Crew Pty Ltd, a company of which Mr Drakeley is a director, charged the Group consulting fees of $171,662 inclusive of expense reimbursements (2023: $115,135). There was $2,618 outstanding at 30 June 2024 (2023: nil).

 

 

 

C)            SUBSIDIARIES

 

The consolidated financial statements incorporate the assets, liabilities and results of Castillo Copper Limited and the following subsidiaries:

 

NAME OF ENTITY	COUNTRY OF INCORPORATION	EQUITY HOLDING
		2024	2023
Castillo Copper Chile SPA	Chile	100%	100%
Castillo Exploration Limited	Australia	100%	100%
Qld Commodities Pty Ltd	Australia	100%	100%
Total Iron Pty Ltd	Australia	100%	100%
Total Minerals Pty Ltd	Australia	100%	100%
BHA No. 1 Pty Ltd	Australia	100%	100%
Atlantica Holdings (Bermuda)	Bermuda	75%	75%
Zed Copper Pty Ltd	Australia	100%	100%
Chalo Mining Group Ltd	Zambia	100%	100%
Luflilian Resources Zambia Ltd	Zambia	100%	100%
Belmt Resources Mining Company Ltd	Zambia	50%	50%

 

Castillo Copper Limited is the ultimate Australian parent entity and ultimate parent of the Group. Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and not disclosed in this note.

 

16.  FINANCIAL RISK MANAGEMENT

 

Exposure to liquidity, interest rate, price, credit, and foreign exchange risk arises in the normal course of the Group's business. The Group does not hold or use derivative financial instruments. The Group's principal financial instruments comprise mainly of deposits with banks. The totals for each category of financial instruments are as follows:

 

	2024 $	2023 $
FINANCIAL ASSETS
Cash and cash equivalents	1,118,294	2,897,611
Financial assets at fair value through profit or loss	376,344	-
Other receivables (current and non-current)	694,660	524,725
Total	2,189,298	3,422,336
FINANCIAL LIABILITIES
Trade and other payables	112,142	128,346

 

The Group uses different methods as discussed below to manage risks that arise from these financial instruments. The objective is to support the delivery of the financial targets while protecting future financial security.

 

(A)          CAPITAL RISK MANAGEMENT

 

The Group's capital comprises share capital and reserves less accumulated losses. As at 30 June 2024, the Group has net assets of $10,610,574 (2023: $12,071,269). The Group manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders.

 

(B)          LIQUIDITY RISK

 

Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the business and investing excess funds in highly liquid short term investments. The responsibility for liquidity risk management rests with the Board of Directors.

Alternatives for sourcing future capital needs include the cash position and future equity raising alternatives. These alternatives are evaluated to determine the optimal mix of capital resources for our capital needs.

 

The Board expects that, assuming no material adverse change in a combination of our sources of liquidity, present levels of liquidity will be adequate to meet expected capital needs.

 

MATURITY ANALYSIS FOR FINANCIAL LIABILITIES

 

Financial liabilities of the Group comprise trade and other payables. As at 30 June 2024 any financial liabilities that are contractually maturing within 60 days have been disclosed as current. Trade and other payables that have a deferred payment date of greater than 12 months have been disclosed as non-current.

 

(C)          INTEREST RATE RISK

 

Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments.

 

The Group's exposure to changes to interest rate risk relates primarily to its earnings on cash and term deposits. The Group manages the risk by investing in short term deposits.

 

	2024 $	2023 $
Cash and cash equivalents	1,118,294	2,897,611

 

INTEREST RATE SENSITIVITY

 

The following table demonstrates the sensitivity of the Group's statement of comprehensive income to a reasonably possible change in interest rates, with all other variables constant.

 

EFFECT ON POST TAX LOSS ($)     INCREASE / (DECREASE)			EFFECT ON EQUITY INCLUDING RETAINED EARNINGS ($)   INCREASE / (DECREASE)
	2024	2023	2024	2023
Increase 100 basis points	11,183	28,976	11,183	28,976
Decrease 100 basis points	(11,183)	(28,976)	(11,183)	(28,976)

 

A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term and long term Australian Dollar interest rates. This would represent two to four movements by the Reserve Bank of Australia.

 

(D)          PRICE RISK

The Group is exposed to price risk through its short-term holding of Australian shares (all listed on the ASX). The sensitivity analysis of the Group's exposure to price risk is as follows:

 

% CHANGE	EFFECT ON POST TAX LOSS ($)     INCREASE / (DECREASE)		EFFECT ON EQUITY INCLUDING RETAINED EARNINGS ($)   INCREASE / (DECREASE)
	2024	2023	2024	2023
Increase 100%	376,344	-	376,344	-
Decrease 100%	(376,344)	-	(376,344)	-

 

 

(E)          FAIR VALUE MEASUREMENT

 

Other than financial assets held at fair value through the profit or loss (refer Note 7), there were no financial assets or liabilities at 30 June 2024 requiring fair value estimation and disclosure as they are either not carried at fair value or in the case for short term assets and liabilities, their carrying values approximate fair value.

 

(F)          CREDIT RISK EXPOSURES

 

Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. The Group's maximum credit exposure is the carrying amounts on the statement of financial position. The Group holds financial instruments with credit worthy third parties. At 30 June 2024, the Group held cash at bank. These were held with financial institutions with a rating from Standard & Poor's of AA- or above (long term). The Group has no past due or impaired debtors as at 30 June 2024.

 

 

 

(G)         FOREIGN EXCHANGE

 

The Group undertakes certain transactions denominated in foreign currencies hence exposures to exchange rate fluctuations arise. The Group does not manage these exposures with foreign currency derivative products. The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the balance date expressed in Australian dollars are as follows:

 

CHILEAN PESO (CLP)	2024 $	2023 $
Assets	88,392	103,800
Liabilities	(10,584)	(12,932)
Total	77,808	90,868

 

BRITISH POUND STERLING (GBP)	2024 $	2023 $
Assets	322,120	639,899
Liabilities	-	(15,432)
Total	322,120	624,467

 

The Group is exposed to Chilean Peso (CLP) and British Pound Sterling (GBP) currency fluctuations.

 

The following table details the Group's sensitivity to a 10% increase and decrease in the Australian dollar against the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represent management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity analysis includes external loans as well as loans to foreign operations within the Group where the denomination of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an increase in profit and equity where the Australian Dollar weakens against the respective currency. For a strengthening of the Australian Dollar against the respective currency there would be an equal and opposite impact on the profit and equity and the balances below would be negative.

 

10% INCREASE	2024 $	2023 $
Profit/(loss) and equity - CLP	7,781	9,343
Profit/(loss) and equity - GBP	32,212	62,447
Total	39,993	71,790

 

10% DECREASE	2024 $	2023 $
Profit/(loss) and equity - CLP	(7,781)	(9,343)
Profit/(loss) and equity - GBP	(32,212)	(62,447)
Total	(39,993)	(71,790)

 

17.  PARENT ENTITY INFORMATION

 

	2024 $	2023 $
Current assets	1,914,216	2,975,126
Non-current assets	8,175,849	8,454,557
Total Assets	10,090,065	11,429,683
Current liabilities	101,558	115,952
Non-current liabilities	-	-
Total liabilities	101,558	115,952
Net Assets	9,988,507	11,313,731
Issued capital	35,964,396	35,964,396
Reserves	4,230,962	4,230,962
Accumulated losses	(30,206,851)	(28,881,627)
Total equity	9,988,507	11,313,731
Loss of the parent entity	1,325,224	4,882,693
Other comprehensive income for the year
Total comprehensive loss of the parent entity	1,325,224	4,882,693

 

(A)          GUARANTEES

 

Castillo Copper Limited has not entered into any guarantees in relation to the debts of its subsidiary.

 

(B)          OTHER COMMITMENTS AND CONTINGENCIES

 

Castillo Copper Limited has not entered into any commitments and does not have any known contingent liabilities at year end.

 

18.  CONTINGENT LIABILITIES

 

 

The Company has entered into the following royalty agreements:

·    1% net smelter return royalty in respect of the area covered by the tenements acquired from Qld Commodities Pty Ltd vendors (or their nominee);

 

·    3% net smelter return royalty in respect of the area covered by the tenements acquired from Total Minerals Pty Ltd vendors (or their nominee);

 

·    3% net smelter return royalty in respect of the area covered by the tenements acquired from Total Iron Pty Ltd vendors (or their nominee).

 

·    2% net smelter return royalty in respect of the area covered by the tenements acquired from Zed Copper Pty Ltd vendors (or their nominee).

 

Other than outlined above, there are no contingent liabilities.

 

19.  COMMITMENTS

 

To maintain current contractual rights concerning its mineral projects, the Group has certain commitments to meet work program requirements.

 

Whilst there are no minimum expenditure requirements, the total estimated expenditure on current work programs, less expenditure incurred on these work programs at balance date are as follows:

 

	2024 $	2023 $ (RESTATED)
Within one year	1,617,097	1,252,755
After one year but not more than five years	2,317,500	1,877,598
Longer than five years	-	-
Total	3,934,597	3,130,353

 

20.  DIVIDENDS

 

No dividend was paid or declared by the Group in the period since the end of the financial year, and up to the date of this report. The Directors' do not recommend that any amount be paid by way of a dividend for the financial year ended 30 June 2024. The balance of the franking account is Nil at 30 June 2024 (2023: Nil).

 

21.  SHARE BASED PAYMENTS

 

(A)          SHARES ISSUED TO SUPPLIERS

 

There were no shares issued to suppliers in lieu of cash payment during the year ended 30 June 2024.

 

(B)          FAIR VALUE OF OPTIONS

 

The fair value of all options issued in previous years have been determined using the Black & Scholes model taking in to account the inputs outlined in Note 11(e).

 

22.  SUBSEQUENT EVENTS

 

On the 14 May 2024, Castillo announced that it was actively looking to align with partners to develop its remaining assets in NSW and Zambia which had previously been designated as non-core assets. At the date of this report the Company is in advanced discussions with third parties regarding a possible transaction in relation to its non-core assets but no agreements or binding terms have been signed as of the date of this report.

 

Other than as stated above, there were no known material significant events from the end of the financial year to the date of this report that have significantly affected, or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods.

 

CONSOLIDATED ENTITY DISCLOSURE STATEMENT AS AT 30 JUNE 2024

 

ENTITY NAME	ENTITY TYPE	PLACE FORMED / COUNTRY OF INCORPORATION	OWNERSHIP INTEREST %	TAX RESIDENCY
Castillo Copper Chile SPA	Body corporate	Chile	100.00%	Australia
Castillo Exploration Limited	Body corporate	Australia	100.00%	Australia
Qld Commodities Pty Ltd	Body corporate	Australia	100.00%	Australia
Total Iron Pty Ltd	Body corporate	Australia	100.00%	Australia
Total Minerals Pty Ltd	Body corporate	Australia	100.00%	Australia
BHA No. 1 Pty Ltd	Body corporate	Australia	100.00%	Australia
Atlantica Holdings (Bermuda)	Body corporate	Bermuda	100.00%	Australia
Zed Copper Pty Ltd	Body corporate	Australia	100.00%	Australia
Chalo Mining Group Ltd	Body corporate	Zambia	100.00%	Australia
Luflilian Resources Zambia Ltd	Body corporate	Zambia	100.00%	Australia
Belmt Resources Mining Company Ltd	Body corporate	Zambia	100.00%	Australia