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T (08) 6369 1195 E info@hammermetals.com.au
ASX:HMX
ABN 87 095 092 158 P Suite 2, Level 2, 41 Colin St, West Perth, WA 6005
hammermetals.com.au
2025 ANNUAL REPORT
Hammer Metals Ltd (ASX:HMX) (“Hammer” or the “Company”) is pleased
to attach its Annual Report for the year ended 30 June 2025.
This announcement has been authorised for issue by Mr Mark Pitts, Company
Secretary, Hammer Metals Limited in accordance with ASX Listing Rule 15.5.
For further information please contact:
Daniel Thomas
Managing Director
T +61 8 6369 1195
E info@hammermetals.com.au
- END -
About Hammer Metals
Hammer Metals Limited (ASX: HMX) holds a strategic tenement position covering
approximately 2,800km2 within the Mount Isa mining district, with 100% interests in
the Kalman (Cu-Au-Mo-Re) deposit, the Overlander North and Overlander South (Cu-
Co) deposits, the Lakeview (Cu-Au) deposit and the Elaine (Cu-Au) deposit. Hammer
also has a 51% interest in the Jubilee (Cu-Au) deposit. Hammer is an active mineral
explorer, focused on discovering large copper-gold deposits of Ernest Henry style and
has a range of prospective targets at various stages of testing. Hammer also holds a
100% interest in the Bronzewing South Gold Project located adjacent to the 2.3
million-ounce Bronzewing gold deposit in the highly endowed Yandal Belt of Western
Australia.
ASX RELEASE
31 October 2025
DIRECTORS /
MANAGEMENT
Russell Davis
Chairman
Daniel Thomas
Managing Director
David Church
Non–Executive Director
James Croser
Non–Executive Director
Mark Pitts
Company Secretary
Mark Whittle
Chief Operating Officer
Greg Amalric
Manager Exploration & Discovery
CAPITAL STRUCTURE
ASX Code: HMX
Share Price (30/10/2025) $0.03
Shares on Issue
893m
Market Cap
$26.8m
Options Unlisted
24.5m
Performance Rights
8.5m
Cash (30/09/2025)
$2.8m
For personal use only
Annual Report
25
20
For personal use only
ő ABN
87 095 092 158
ő ASX
HMX
ܶBoard of Directors
Russell Davis
Non-Executive Chairman
Daniel Thomas Managing Director
David Church
Non-Executive Director
James Croser
Non-Executive Director
ܶCompany Secretary
Mark Pitts
ő Principal & Registered Office
Suite 2, Level 2, 41 Colin Street
West Perth, WA 6005
Postal Address
PO Box 372,
West Perth, WA 6872
Telephone: +61 8 6369 1195
info@hammermetals.com.au
www.hammermetals.com.au
ő Auditors
PFK
Level 5, 35 Havelock Street
Perth, WA 6005
Telephone: +61 8 9426 8999
info@pkfperth.com.au
ő Share Registry
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth, WA 6000
Telephone: 1300 288 664
ő Stock Exchange
ASX Limited
Level 40, Central Park,
152-158 St Georges Terrace
Perth, WA 6000
ő Corporate Governance
The Company’s Corporate Governance Statement
can be found at the following URL:
www.hammermetals.com.au/about/corporate-governance
02
Hammer Metals Ltd.
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Contents
Introduction
Chairman’s Letter
04
Corporate Strategy
06
Highlights
07
Corporate Activity
08
Operations Summary
Yandal Projects (WA)
10
Mount Isa Project (QLD)
17
Mount Isa Joint Ventures And Earn-ins
(Cu/Au/Pb/Zn/Ag), QLD
26
Statements & Reports
Competent Person Statements
32
Annual Mineral Resource Statement
34
Tenement Interests
41
Director’s Report
44
Financials
Auditor’s Independence Declaration
62
Consolidated Statement of Financial Position
63
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
64
Consolidated Statement of Changes in Equity 65
Consolidated Statement Of Cash Flows
66
Notes to The Consolidated Financial
Statements
67
Consolidated Entity Disclosure Statement
98
Directors’ Declaration
99
Independent Auditor’s Report
100
ASX Additional Information
106
03
Annual Report 2025
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Chairman’s Letter
On behalf of Hammer’s Board of Directors, I am pleased to present our 2025 Annual Report.
Dear Fellow Shareholders and Investors,
To new shareholders who have joined us in the last 12 months,
welcome. To Hammer’s longstanding investors, thank you for
your ongoing support and encouragement.
Hammer’s Mount Isa Project in NW Queensland and the Yandal
Project in WA, were the focus of Hammer’s exploration activity
this year.
At Mount Isa, Hammer has built up a significant resource inventory
through acquisition and discovery totalling 530,000 tonnes of
CuEq metal* comprising an estimated 321,000 tonnes of
copper, 38,000 tonnes of molybdenum, 343,000 ounces of
gold and 84,100 kilograms of rheniumin across six deposits.
At Yandal, Hammer added its Orelia North gold discovery
containing an estimated 54,000 ounces of gold to its
resource inventory.
All the deposits are held 100% by Hammer, except for the
Jubilee deposit, where we hold a 51% operating interest.
Of the metals in our inventory, gold is trading at record
highs above US$4000/oz. The molybdenum price has been
consistently trading above US$20/lb for several years and is
currently >US$30/lb. The copper price, although quite volatile
this year, is currently trading strongly relative to historical
averages at US$5.00/lb.
Within this favourable metal price environment for Hammer’s
commodities, management is stepping up its efforts to enhance
the value and market recognition of Hammer’s base metal and
gold portfolio and to prudently advance the existing mineral
assets along the development pathway.
The ultimate prize for shareholders, however, is for Hammer
to make a major mineral discovery, copper or gold, and our
exploration team is working tirelessly to this end.
INTRODUCTION
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This past year the exploration team has been transitioning
between programs at the Mount Isa and Yandal projects.
About 5,700 geochemical samples and 5,900m of drilling
have been completed in the past year at Mount Isa, along with
ground-based geophysical programs. Several geochemical
anomalies and significant copper intersections were identified
by this work. 7,500m of RC and diamond drilling was also
undertaken at Yandal where a program was recently completed
with encouraging results. Dan Thomas, Hammer’s Managing
Director, will provide a more detailed discussion of the past
year’s activities in the following pages.
With the assistance of experienced consultants, the exploration
team has undertaken comprehensive data reviews, followed by
targeting exercises for both the Mount Isa and Yandal projects.
Several strong previously untested targets were identified for
follow-up at both projects. As part of this process, gaps in our
data collection were identified and action plans initiated to
rectify these gaps.
In addition the Hammer team continues to actively generate
new targets and peg prospective tenements that complement
our existing tenure. New tenements were pegged abutting the
existing Yandal tenement position, including along strike of
North Orelia deposit, as well as tenements pegged to the north
of Northern Star’s Thunderbox gold deposit. New tenement
applications have also secured untested geophysical features
considered prospective for IOCG mineralisation in covered areas
of the Mount Isa district.
We welcome the valuable support of our Isa joint venture
partners, including Sumitomo Metal Mining Oceana (SMMO)
and South 32.
SMMO recently funded the drilling of the first four diamond
holes at our Bullrush IOCG target. Results were sufficiently
encouraging for SMMO to return for another round of diamond
drilling, planned before year’s end. South 32 also has plans
to conduct an initial drill test of a geophysical and base metal
target located south of Mount Isa along the Isa Fault before the
end of the year.
Hammer has a strong pipeline of gold and base metal targets
lined up for the remainder of 2025 and 2026, both in our
100% owned tenure and with our JV partners. Whilst a major
exploration success is our primary goal, the Board remains open
to exploring other corporate opportunities and strategies that we
consider will add value for Hammer’s shareholders.
In conclusion I wish to thank Dan, the geological and field teams
and the Company’s consultants for their diligent and enthusiastic
efforts over the past year.
Sincerely,
Russell Davis
Chairman
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INTRODUCTION
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Corporate Strategy
Position the company for discovery, through innovative and focused exploration
for large copper-gold and gold deposits in two of the world’s great metal provinces.
→
Grow the Company’s defined JORC resources to progress
to a viable mining development scenario in Mount Isa.
→
Work to consolidate and improve the quality of the
Company’s tenement positions.
→
Operate safely and effectively.
→
Deliver positive financial returns to shareholders.
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Highlights
→
Maiden JORC Inferred Mineral Resource Estimate (MRE)
declared at Orelia North at the Yandal Gold Project in
Western Australia (see ASX Announcement 24 July 2024):
Ŋ 1.48Mt grading 1.15g/t Au for 54.5koz of contained gold
(0.5g/t Au cut-off).
→
Average gold recoveries of 94% (range 90% to 96%)
achieved during initial metallurgical test work completed
on the North Orelia gold deposit.
→
Completed over 13km of drilling in 277 drillholes across
nine different targets.
→
Secured an option to purchase an 80% interest in the
granted Lady Jenny Copper Mining Leases.
→
Expanded exploration footprint at minimal cost with new
tenure secured at Hammer’s Mount Isa Copper/Gold and
Yandal Gold projects with new tenement applications at:
Ŋ Dipvale (EPM 29066) – additional tenure near
the Duglald River lead-zinc deposit. This addition
complements Hammer’s existing tenure and IOCG
targets at Moonlight and GEM.
Ŋ Fort William – under-explored tenure near Boulia (North
West Qld) containing an untested magnetic anomaly.
Ŋ Yandal Gold Project Expansion: Five new 100%-owned
exploration license applications increasing Hammer’s
footprint by 420km2 to 710km2.
→
Successful establishment of the exploration Joint
Venture with Sumitomo Metal Mining Oceania at the
Bullrush area. The JV completed its first drilling program
identifying a potential IOCG alteration system with follow
up drilling imminent.
→
Establishment of JV with Carnaby Resources
(HMX: 49%) and subsequent exploration at the
Mount Hope Sub-blocks.
Ŋ Carnaby Resources can earn up to a 70% interest in
the sub-blocks, with a further consideration of up to an
additional $11 million.
Ŋ Hammer retains a residual 30 % interest in the project
and will be free-carried by Carnaby to production from
the three Sub-Blocks.
→
Successful advancement of the Isa Valley Joint Venture
with South32 to an upcoming drill test of a target on the
Mount Isa Fault being considered highly prospective
for Mount Isa-style sediment-hosted lead-zinc-copper
mineralisation.
→
Completion of broad scale geophysical programs
including ground, downhole and airborne EM surveys,
and detailed gravity surveys generating sizeable highly
prospective copper/gold targets and multiple EM
conductors over portions of the Greater Mascotte region.
→
Significant new geochemical surveys identify broad
scale copper gold anomalies at Tourist Zone, Sisters
and Kalman surrounds.
→
Successful external funding of $1.3million through
the Research and Development Tax Incentive and
Queensland Department of Resources Collaborative
Exploration Incentive (CEI) program.
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INTRODUCTION
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Corporate Activity
The Company’s corporate activities are focussed on enhancing the capacity of our
exploration team to make discoveries through adequate funding, as well as securing
tenements or projects that improve the quality and potential of the Company’s
exploration portfolio.
On the funding front, the Company did not raise capital in the
FY25 period. The transaction with Carnaby Resources has
provided Hammer with the requisite funding for the programs
completed in FY25 and our planned activities into the future.
Aiding funding during the year, a Research and Development
tax refund of $1.0 million was received in April with the
Company also being the recipient of a Queensland Government
Collaborative Exploration Incentive grant of $300,000.
Subsequent to the end of the financial year, Hammer has
sold ~6.37m Carnaby Resources Limited (ASX:CNB) shares
to raise approximately $1.9m. Through historical transactions,
the company holds investments in four junior exploration
companies with a current valuation of ~$1.3million.
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OPERATIONS
SUMMARY
INTRODUCTION
STATEMENTS + REPORTS
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Yandal Projects (WA)
Hammer holds a 100% interest in approximately 760km2 of tenements, located within
the Yandal greenstone belt in Western Australia. Hammer successfully increased its
exploration footprint during the year and remains keen to further increase our exposure
to gold exploration opportunities.
The North Orelia gold resource defined in July 2024 remains
open at depth and offers excellent exploration prospects across
the 2km strike length of gold anomalism. Additional drilling
completed during the year focussed on grass roots prospects at
Sword and Harrier with our most recent program focussed on a
high-grade gold target at Bronzewing South.
Hammer completed a comprehensive exploration and geological
review of its Yandal Gold Project in WA which resulted in the
definition of several new drilling targets at Bronzewing South
and Ken’s Bore. The targets centre on the historical Bronzewing
South tenement, which remains under-explored given its
proximity to the 3Moz Bronzewing orebody, owned by Northern
Star Resources (ASX: NST).
đ Hammer’s tenure immediately south of the Bronzewing Discovery Gold Pit.
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🔨Bronzewing South Tenement (E36/854)
Three target areas were identified during Hammer’s review of the Bronzewing South
project with two of these targets being tested in a combined reverse circulation and
diamond drilling program through August and September 2025.
The lack of effective drilling on Hammer’s tenure, combined
with a zone of high-grade gold at depth and a neighbouring
3Moz gold ore body, provides an enticing exploration prospect.
Drilling has provided suitable encouragement for the potential
of the tenement to host a significant high grade gold target with
follow up drilling scheduled for later this year.
Drill results indicate the inadequacy of historical air-core drill testing,
with a significant search space now open on the boundary with
the historical Bronzewing Mining Lease. (See Hammer Metals ASX
announcement dated 15 September 2025).
đ Plan view showing Eastern and Central Targets and their proximity to the Bronzewing anticlinal axis
(Yellow dash) and the Eastern Sheer Zone (Grey Dashes). Historical air core coverage and anomalies.
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The Eastern Boundary Target is adjacent to the Bronzewing
Mining tenement with a zone of high-grade gold mineralisation
initially intersected at depth on the Bronzewing Mining Lease
(2m at 20.8g/t Au in BWRCD2488) by Great Central Mines NL
(“GCM”) in 19951. This initial intercept is located less than 40m
from the Mining Lease boundary.
The southern continuation of these zones of mineralisation
had not been effectively tested by drilling within Hammer’s
Exploration Licence. Hammer’s initial drilling at this target yielded
three zones of gold mineralisation in BWSRCD081including:
→
4m at 1.13g/t Au from 187m, including 2m at 2.02g/t Au
from 189m;
→
8.95m at 1.32g/t Au from 414m including 0.48m at
15.45g/t Au from 416.52m; and 0.55m @ 3.52g/t Au
from 422.4m; and
→
6.34m at 1.08g/t Au from 449.66m.
Assays are awaited for a follow-up drill hole located a further
100m south of BWSRCD081.
đ Long section view looking west showing HMX drilling of the Eastern Target, new data in yellow callout,
in relation to previous drilling conducted by Great Central Mines NL, Newmont Yandal Operations Limited
and Hammer Metals Limited (See Hammer Metals ASX announcement dated 15 September 2025).
The team is encouraged by the observations in recent drilling at the Central Target and the potential for this corridor to be connected
to the Eastern Target drilling some 1.7km to the north. This corridor is largely untested below the ineffectual air-core drilling and,
with a prominent shear zone interpreted to connect these targets, it is of high interest to the team in our search for a significant
gold discovery.
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আPhoto of massive quartz carbonate veining intersected in drill-hole BWSRCD082 diamond tail at Hammer’s Central Target
Zone (213m to 221.5m).
🔨Orelia North Gold Deposit
Hammer released a maiden Mineral Resource Estimate (MRE) for the Orelia North gold
deposit, located approximately 68km north-east of Leinster in the Yandal Greenstone
Belt in Western Australia (see ASX Announcement 24 July 2024).
The Orelia North project was estimated to contain 1.48Mt grading
1.15g/t Au for 54.5koz of contained gold (0.5g/t Au cut-off).
The Orelia North deposit is located approximately 9.5km to the
north of the Orelia gold operation operated by Northern Star
Resources Limited (ASX: NST) and ~12.5km north-west of NST’s
Bronzewing Gold Operations.
đ Oblique view looking northwest showing drilling
and block model with optimised pit.
Preliminary metallurgical testwork results were reported, with
testwork being conducted by ALS in Perth on 11 samples taken
from mineralised intervals. These samples were located within
the optimized pit (used to satisfy the reasonable chance of
economic extraction test for the Resource estimate).
Photon assay was followed by LeachWELLTM testwork on this
suite. Recoveries varied between 90% and 96% with an average
of 96% from the 11 samples. Tail grades varied between 0.1g/t
Au and 1.25g/t Au.
High recoveries and low tail grades are encouraging and
indicate that Orelia North ore will respond well during cyanide
hydrometallurgical processing (see ASX Announcement 21
October 2024).
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đ Section 3975680 with leach samples. Oblique view looking north-west showing drilling and block model with optimised pit.
Orelia North Deposit - Inferred Mineral Resource Estimate by Weathering Domain (Au 0.5g/t Cut-off) - July 2024
Domain
Mt
Au (g/t)
Au (koz)
Oxide
0.03
0.80
0.7
Transition
1.35
1.11
48.3
Fresh
0.10
1.74
5.5
Total
1.48
1.15
54.5
ԅ Note rounding of total tonnage and metal content.
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🔨Additional Yandal Targets (Sword and Harrier)
The Company completed an air-core drilling program targeting gold geochemical
anomalism over the Sword and Harrier prospects. The program consisted of 151 holes
for 7,561m with 46 holes for 2,234 metres completed at Sword and 105 holes for 5,327
metres at Harrier (see ASX Announcement 1 October 2025).
Significant quartz veining and molybdenum anomalism was
encountered in holes located close to the Julius granodiorite
contact with the western mafic and ultramafic package.
The Harrier tenements are located 1km to the east of
Hammer’s Bronzewing South tenement and on the eastern
limb of the Bronzewing anticline, within 3km of the historic
Bronzewing Gold Mine.
Two holes on the northernmost fence intersected granodiorite with
geochemistry analogous to the Discovery Granodiorite, which is
located on the eastern margin of the Bronzewing Gold Deposit.
Significant intercepts from this drilling include:
→
1m at 0.84g/t Au from 31m within an outer envelope of
32m at 0.07g/t Au from 16m in BWSAC0942; and
→
1m at 0.66g/t Au from 25m with an outer envelope of 49m
at 0.07g/t Au from 25m in BWSAC0937.
Gold mineralisation is associated with quartz veining within mafic
lithologies. A source for the observed historical surface nuggets
remains unexplained.
🔨New Tenure
Over the year, Hammer lodged five new Exploration License applications covering
a total area of approximately 420km2 in three distinct regions between the Northern
Star’s Thunderbox and Julius gold deposits, expanding its strategic footprint in this
world-class gold district.
Weebo 1 and 2(E36/1117 & E36/1118)
application area
Two new applications have been made covering a poorly tested
greenstone belt located between the Yandal and Agnew-Wiluna
Greenstone Belts. The Weebo 1 and 2 applications (~310km2)
lie <10km north of Thunderbox:
→
No gold-focused exploration has been completed on the
property despite its location within a highly fertile gold
corridor and less than 50km from Tier-1 gold deposits.
→
Historically, the ground has been held by BHP Mining
which conducted a predominantly nickel-focused
exploration program.
→
Historical drilling confirmed the presence of mafic/
greenstone rocks in an area previously thought to be
only granite.
The applications encompass more than 50km of prospective
stratigraphy with sparse historical drilling conducted. Hammer
intends to finalise a comprehensive historical data compilation
with a view to better targeting initial drill traverses once the
tenement has been granted.
đ Thunderbox Region showing the location of the Weebo 1
and 2 Applications with potential targets and target trends.
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Julius (E53/2375) and Tiberius (E53/2359) Applications
Julius covers portions of the Julius monzogranite margin near the Trajan prospect. In addition, the application covers portions of the
prospective Overlord Thrust, which has been drill tested by Hammer at the Sword prospect. Tiberius covers extensions of mafic units
which are known to be mineralised at Tiberius and Sam Well East. Field reviews are planned for an anomalous magnetic low located
in the northern portion of the tenement.
Orelia Extended Application (E36/1108)
The Orelia Extended Application covers the stratigraphic position of the Orelia North Gold Deposit delineated by Hammer in 2024.
Further drill testing is planned along the prospective corridor.
đ Hammer Metals Yandal Project tenements including the Julius, Tiberius, Orelia Extended and Weebo application areas.
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Mount Isa Project (QLD)
The Company is an active mineral explorer in the Mount Isa region, focused
on discovering large copper-gold deposits of the Ernest Henry and Mount Isa
styles and has a range of prospective targets at various stages of testing.
Through its wholly owned subsidiaries, the Company holds
a strategic tenement position covering over 3,600km2 with
100% interests in the Kalman (Cu-Au-Mo-Re) deposit, the
Overlander North and Overlander South (Cu-Co) deposits, the
Elaine-Dorothy (Cu-Au) deposit, the Lakeview (Cu-Au) deposit
and a 51% interest in the Jubilee (Cu-Au) deposit. The ground
position is focused on major regional-scale structural zones and
extends for over 160km from Dugald River in the north to the
Tick Hill gold area in the south.
With joint ventures in place with several major mining
companies, Hammer’s pursuit of a significant tier 1 mineral
discovery remains a key focus for the company in this prolific
base metal province. Joint Ventures with Sumitomo Metal Mining
Oceania at Bullrush and South32 at Isa Valley were both initiated
during the year and have progressed to the next stages of their
respective earn-ins.
Our partial divestment of sub-blocks at Mount Hope saw
Carnaby Resources pick up exploration activities at this project
with a solid pathway to enable a future development of the
Mount Hope projects. Hammer remains a 49% holder of these
sub blocks with future payments of up to $11million due as this
project progresses.
The company continued to progressively test new targets at Tourist
Zone South, Lex, Mascotte and Kalman South East. Continuation
of extensive soil geochemical surveys has delineated new copper
gold targets through the region with a new regional geological
prospectivity model currently being developed which will in turn
lead to quality new targets in the project.
🔨Kalman
Hammer’s Kalman project is one of Australia’s largest and highest-grade deposits of
both molybdenum and rhenium. The Kalman deposit contains 38,000t of molybdenum,
84,100 kg of rhenium 208,400t of copper, 343,200 oz of gold and 1.92m oz of silver
(see ASX Announcement 8 May 2023).
আKalman structure looking south.
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The 100%-owned Kalman deposit, located 50km south-east
of Mt Isa and 25km south of the Barkly Highway, is one of the
few polymetallic deposits in Queensland to contain significant
molybdenum and rhenium in addition to copper and gold.
With open pit and underground mining potential, the deposit
remains open at depth and along strike.
As one of the world’s highest grade undeveloped molybdenum
projects, Kalman stands ready to benefit from an increasingly
strategic metal with a wide range of applications in the world’s
move to cleaner and greener sources of energy. Current spot
prices for molybdenum remain strong with molybdenum prices
now comfortably exceeding US$50,000/tonne during the
financial year.
One drill-hole was completed to test a molybdenum and
copper anomaly in soils along the Pilgrim Fault approximately
1km south east of Kalman. A broad zone of low-grade copper
and molybdenum anomalism averaging 350ppm Cu and
7.7 ppm Mo was intersected from surface to 65m, including
1 metre at 0.11% Cu and 19ppm Mo from 60m. Peak values
in molybdenum were associated with a broad zone of
manganese anomalism intersected from 177m, averaging
1.5% Mn, 25ppm Mo (max 37ppm) and 0.2% Ba over a 36m
interval (see ASX Announcement 20 February 2025).
đ Kalman oblique view looking northwest showing Molybdenum % blocks (see ASX Announcement 8 May 2023).
আKalman South-east looking south across the molybdenum soil anomaly co-located with a series of silicified shear zones.
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🔨Tourist Zone
The Tourist Zone is located 8.5km west of the Kalman Deposit. The shear zone style
of mineralisation observed appears to be similar to Aeris Resources’ Barbara and Mt
Colin Deposits.
The proximity of this prospect to Kalman makes any
mineralisation delineated at the Tourist Zone particularly
attractive (see ASX Announcement 17 June 2025).
Hammer’s drilling program at Tourist Zone targeted a >1km strike
length of anomalous copper and gold-in-soils, with all five RC
holes all intersecting copper and gold mineralisation.
Significant intercepts at the project included:
→
35m @ 0.55% Cu and 0.10g/t Au from 35m in
HMTZRC003;
→
26m @ 0.50% Cu and 0.12g/t Au from 133m in
HMTZRC004 ; and
→
7m @ 1.23% Cu and 0.17g/t Au from 12m, in HMTZRC007.
đ Tourist Zone showing soil responses for copper and current drilling results (see ASX Announcement 26 August 2024 and 17 June 2025).
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🔨Mascotte Region and Revenue Trend (100% HMX)
Hammer’s early-stage drilling at the historical early 1900’s copper prospect delivered
good intervals of copper mineralisation over a constrained strike length.
Follow up drilling in FY25 saw two RC holes testing for
down-plunge and down-dip extensions of previously intersected
high-grade copper-gold mineralisation. HMMARC014
targeted the down-dip extension of the high-grade intercept
in HMMARC009 and intersected a broader but lower-grade
mineralised zone 6m @ 1.25% Cu and 0.23g/t Au from 111m,
including:2m @ 2.80% Cu and 0.39g/t Au from 111m.
A second, deeper mineralised zone was also intersected:
7m @ 0.74% Cu and 0.13g/t Au from 129m, including 1m @
1.72% Cu and 0.24g/t Au from 131m (see ASX Announcement
17 June 2025). Overall, the results indicate that mineralisation
at Mt Mascotte is poddy and discontinuous, with substantial
grade variability within the vein-hosted system. The down-dip
potential of the system will be considered for future testing.
đ Mt Mascotte plan with new drilling testing a south-west plunge of the mineralisation.
A VTEM survey was conducted in cooperation with Carnaby
Resources Limited over a portion of the greater Mascotte
and Revenue regions. Hammer Metals’ portion of the survey
was approximately 90-line kilometres in 30 flight lines
(see ASX Announcement 3 October 2024).
Two high-priority and seven moderate priority conductivity
anomalies were observed. Following on ground inspection
of these anomalies, the highest priority target was further
refined by ground EM survey which denoted (a 2,000 Siemens
Fixed-Loop Electromagnetic (FLEM) conductor. The Lex target
was tested with drilling intersecting a zone containing up to 12%
pyrrhotite and minor chalcopyrite (<2%) at the modelled target
depth of approximately 54m.
20
Hammer Metals Ltd.
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The hole (HMRVRC001) returned an intercept of 3m @ 0.49% Cu
from 54m, including 1m @ 0.69% Cu and 0.04g/t Au from 56m
(see ASX Announcement 17 June 2025).
Three VTEM lines were flown in the Smith’s Store region
to examine conductivity responses in light of recent mapping
by Hammer Metals. Three VTEM conductors were identified
– one high, one moderate and one low priority.
The high-priority conductor is coincident with the magnetic
trend between Mascotte Junction and Smith’s Store.
These targets remain undrilled and will be considered
in future exploration drilling programs in the Mount Isa region
(see ASX Announcement 3 October 2024).
đ Smith’s Store – Mascotte region showing the location of soil, rock chip sampling and VTEM preliminary
conductors. In-fill and extensional soil sampling is currently underway in the region.
🔨New Applications and other sampling programs
Fort William application
Fort William (EPM 29170) located approximately 65km to the south of the Tick Hill Deposit. This application covers anomalous
basement magnetic responses which are interpreted as representing iron rich rocks within the the Mary Kathleen Fold Belt beneath
younger basin sedimentary sequences. None of these anomalies have been tested for potential IOCG alteration and mineralisation.
Dipvale
Hammer submitted a new tenement application (EPM 29066) covering a prospective zone between the Pilgrim Fault Zone and the
Mount Rosebee shear zone. The application is close to both the Dugald River lead-zinc deposit and the Harmony Gold Eva Project
(see ASX announcement 26 August 2024).
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đ Hammer’s Mt Isa Tenements.
22
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🔨Sisters
A soil sampling campaign was completed at the end of 2024 to cover a gap in historical
surveys at the southern end of the major Pilgrim Fault, towards the town of Duchess.
The grid of 400 to 600m spaced lines and 50m sample spacing
was successful in delineating new anomalies along this major
structural corridor. Two coincident copper-gold anomalies occur
on either side of the Pilgrim fault and have been investigated
with in-fill sampling completed (see ASX Announcement 20
February 2025).
Interestingly, the large gold-only anomaly (S3) in the centre
of the grid sits on a second order fault to the west of the
Pilgrim Fault in a similar position to the Tick Hill gold deposit
(0.7Mt at 22.5g/t Au for 500Koz total gold production).
Follow-up mapping and in-fill soil sampling will focus on this
corridor’s potential for Tick Hill analogues.
đ Sisters soil sampling program along the Pilgrim fault, showing Cu and Au anomalies.
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🔨Overlander Granite - REE
The Overlander Granite (OVG) is an A-type, radiometrically “hot” granite which has
a higher rare earth element background than the surrounding metasediments of the
Corella Formation.
Eight lines of reconnaissance soils were conducted with
a 50m sample spacing. (ASX announcement 26 August 2024).
The soils confirmed that the OVG is enriched in rare earth
elements. Maximum Total Rare Earth Yttrium Oxide (TREYO)
values of >2000ppm in soils were reported with rock chips
sampling also indicative maximum value of ~2700ppm TREYO.
Elevated Nd and Pr occur in the western portion of the OVG,
with multiple sample anomalies above 200ppm combined Nd
and Pr oxide. Zones of elevated Y in soil above 200ppm occur
in the eastern portion of the OVG. Rock chip sampling along
these soil lines reported results of up to a combined Nd and
Pr oxide maximum of 791ppm.
đ Overlander Granite soil sampling showing TREYO response.
24
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🔨Other Sampling Programs (100% HMX)
At Overlander North, soil sampling has been conducted on 200m line spacing to the
north of the Overlander Cu-Co deposit.
Analyses are underway. Soil sampling continues down the Pilgrim fault to the east of Duchess, with new sampling planned over
recently granted EPM 28285. This target is an Overlander system lookalike, located 6km south of the Overlander and 4km east
of the Andy’s Hill IOCG systems.
đ Semi-regional map showing the southern part of the Mt Isa project tenure, Revenue and Sisters prospect areas.
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Mount Isa Joint Ventures And Earn-ins
(Cu/Au/Pb/Zn/Ag), QLD
Hammer has seven active Joint Ventures in the Mount Isa region, covering 937km2
out of its ~3,600km2 position in the Mount Isa region.
Hammer has retained a 100% interest in ~2,700km2 of tenure and a 100% interest in its
JORC compliant Mineral Resources at Kalman, Overlander, Elaine and Lakeview.
Joint Venture
Partner
HMX
Interest
Blocks
Area
(km2)
Proportion of
Tenure
Mount Isa East JV
SMMO
~40%
104
334
9%
Mt Frosty JV
Glencore
51%
9
29
1%
Dronfield JV
Kabiri
80%
49
157
4%
Mt Hope JV
Carnaby
49%
3
10
0%
Isa Valley JV
South32
100%
100
321
9%
Bullrush
SMMO
100%
27
87
2%
Lady Jenny ML (new)
CVCP
0% (Option)
N/A
<1
0%
HMX 100%
100%
583
2,715
74%
Total
875
3,652
100%
ԅ Table 2: Summary of Hammer Joint Ventures within the Mount Isa Project.
🔨Mount Hope JV with Carnaby Resources (HMX ~49%) Cu-Au
Carnaby Resources (ASX: CNB) progressed exploration activities within the Mount
Hope JV sub-blocks during the year.
Drilling results from The Plus, Binna Burra and Mount Hope
North prospects were reported to the ASX on 15 October 2024,
6, 20 November 2024 and 14 February 2025.
Results from the regional VTEM survey were reported by
Carnaby to the ASX on 27 September 2024 and 21 October with
the definition of a strong VTEM conductor 100m south of CNB’s
Mining Lease boundary, where no drilling is present and
a moderate to strong late-time conductor has been recorded
over two consecutive 200m spaced VTEM lines immediately
north and south of the South Hope Prospect.
Upon a decision to mine at either of Carnaby’s Mount Hope
Central or Mount Hope North open pits, Carnaby will pay an
additional $5 million in cash to Hammer and Carnaby’s interest
in the Sub-Blocks will increase to 70%.
Profit generated from any ore mined within the Mount Hope
Central or Mount Hope North open pits that is derived from
within the Sub-Blocks will be shared based on the 70%/30%
ownership interests of the parties in the Sub-Blocks pursuant
to a standard profit-sharing agreement.
26
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🔨Bullrush JV with Sumitomo Metal Mining Oceania
(SMMO Option to earn up to 60-80%) Cu-Au
The Bullrush Project covers 27 sub-blocks within EPM 25866, located 90km south-east
of Mount Isa (see ASX Announcement 27 June 2024).
The Bullrush Project’s tenure is located over covered portions
of the Wimberu Granite with magnetically active margins of the
multi-phase “Williams-age” intrusive complex. The exploration
target is granite-hosted IOCG mineralisation. Initial activities
concentrated on geophysical methods with a view to refining
drill targets for the Joint Venture.
A detailed Audio-frequency Magneto Tellurics (AMT) and Gravity
Survey generated targets for the initial drilling program of the
Joint Venture. A fully-funded 4-hole, 2,262m drill program testing
IOCG targets was completed (see ASX announcement 10 July
2025). Two main intrusive phases were delineated in the drilling,
ranging between granite through to monzonite in composition.
These intrusives are part of the Williams suite, which both
spatially and in time have a close association with IOCG
deposits in the region.
আHMBDD003, ~331.4m. Vein breccia. Strong red rock
altered protolith with carbonate, specular and earthy
hematite, biotite, pyrite and chalcopyrite. Down-hole
is to the right.
আHMBDD003, ~219.6m. Vein breccia in altered granite
with earthy hematite after an unknown mineral in clasts.
Down-hole is to the right.
While this program has not intersected economic grades of
mineralisation, the drilling has proved that IOCG style alteration
is present at Bullrush. The goal for the joint venture now is to
follow these structural trends into areas where breccia textures
and sulphide tenor is better developed. The observation of
magnetite destruction and haematite alteration accompanying
copper mineralisation should provide a useful vector for future
exploration of this system. An infill gravity survey has been
completed and a follow up drilling program at Bullrush is
scheduled to commence in the coming week.
আHMBDD003, ~474m. Calcite, magnetite, hematite vein with
pyrite and chalcopyrite.
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🔨Isa Valley Earn-in Agreement with South-32
(S32 Option to Earn Up To 70-80%) Cu-Au-Pb-Zn-Ag
The early phases of this Joint Venture successfully completed an ionic leach soil
sampling program along the highly prospective Mount Isa fault structure.
The program aimed detect mineralisation at depth emanating from prospective Mt Isa Group Sediments present in the project area
abutting the Mount Isa Fault. Following the positive results returned from the soil survey, South 32 elected to continue in the Joint
Venture with planning for the upcoming Reverse Circulation drilling program. A 4-hole, ~1,200m drilling program has been designed
to test a prospective soil/VTEM anomaly and the drilling is scheduled to commence in the weeks ahead.
đ Partial Leach soil sampling survey with contours of Zn response.
28
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🔨Lady Jenny Mining Leases – Option with Corella Valley
Corporation (HMX option to earn 80%) Cu-Au
The Lady Jenny Mining Leases are located approximately 16km south along
the Fountain Springs Road from the sealed Barkly Highway that runs between
Mount Isa and Cloncurry in north-west Queensland and are located within
Hammer’s 100%-owned Exploration Licenses and near the Company’s defined
JORC Mineral Resources at Kalman, Overlander, Lakeview, Elaine and Jubilee
(see ASX Announcement 20 February 2025).
The Lady Jenny Mining Leases (ML2701 and ML90601) cover
an area of approximately 26Ha with the Lady Jenny copper trend
appearing to plunge shallowly to moderately north-north-east
into Hammer’s surrounding exploration permit.
The deposit has been mined historically by both underground
and surface extraction methods, although surface extraction
has been minimal with minor open pit ore cuts to maximum
of 16m below surface.
Hammer has secured an option to purchase an 80% interest
in the Lady Jenny Mining Leases For a payment of A$500,000
by October 2026.
đ Lady Jenny Mining Leases with Hammer’s northern prospects in the background,
including the JORC Resources at Jubilee and Lakeside.
Hammer completed 11 holes on the Lady Jenny Mining Lease
comprising 1,343 metres of drilling. The initial program at
Lady Jenny was designed to provide key information about the
geometry, grade and style of mineralisation and identify the
economic potential within the pit and the Mining Lease.
Ten holes were designed to test the tabular body that was
historically mined in the pit. Eight drill holes intersected zones
of significant mineralisation beneath the historic workings within
weakly oxidised to fresh bedrock.
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Significant copper and gold mineralisation was intersected in all holes drilled at
Lady Jenny under the historical pit, confirming a strike extent of ~180m. Highlights from
these first intercepts include:
→
32m at 1.05% Cu and 0.22g/t Au from 14m in
HMLJRC005 – estimated true width ~25m, including 20m
at 1.35% Cu and 0.30g/t Au from 16m;
→
26m at 0.67% Cu and 0.34g/t Au from 37m in
HMLJRC008 – estimated true width ~21m, including 1m
at 9.08% Cu and 4.4g/t Au from 42m;
→
15m at 1.10% Cu and 0.11g/t Au from 11m in
HMLJRC003 – estimated true width 10m; and
→
15m at 0.88% Cu and 0.12 g/t Au from 36m in
HMLJRC004 – estimated true width ~8m, including 6m at
1.76% Cu and 0.23g/t Au from 36m.
The variability of grade and thickness of mineralised intercepts along strike and at depth suggests that the mineralisation consists
of multiple shallowly north-plunging bodies rather than a coherent tabular body as reported historically.
đ Lady Jenny Long Section showing drill-hole traces, copper and gold assay
results with the magnetic anomaly tested by HMLJRC009.
30
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🔨Mount Isa East Joint Venture (MIEJV) with Sumitomo Metal
Mining Oceania (HMX ~36.6%) Cu-Au
The Joint Venture area covers sections of the Even Steven, Mount Philp, Dronfield
West and Malbon target areas covering approximately 330km2 of Hammer’s
`~3,000km2 Mount Isa Project. The areas are considered highly prospective for the
discovery of Iron Oxide Copper Gold Deposits (“IOCG”). The Joint Venture is now in its
fifth year of operation with the exploration activities heavily focussed on several highly
prospective areas of interest. Highlights from Hammer’s first drilling program includes
an intercept of 32m at 1.05% Cu and 0.22g/t Au from 14m in HMLJRC005 – estimated
true width of ~25m, including 20m at 1.35% Cu and 0.30g/t Au from 16m.
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COMPETENT
PERSON’S
STATEMENTS
32
Hammer Metals Ltd.
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Competent Person Statements
Exploration Results
The information in this report as it relates
to exploration results and geology was
compiled by Mr. Mark Whittle, who is
a fellow of the AusIMM and an employee
of Hammer Metals Limited.
Mr. Mark Whittle, who is also a share and option holder in the
Company, has sufficient experience which is relevant to the
styles of mineralisation and deposit types 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 of Exploration Results, Mineral
Resources and Reserves. Mr. Whittle consents to the inclusion
in the report of the matters based on the information in the form
and context in which it appears.
Mineral Resource Estimates
Where the company refers to Mineral
Resource Estimates it confirms that it is
not aware of any new information or data
that materially affects the information
included in those announcements and
all material assumptions and technical
parameters underpinning the resource
estimates continue to apply and have not
materially changed.
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ANNUAL MINERAL
RESOURCE STATEMENT
34
Hammer Metals Ltd.
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Annual Mineral Resource Statement
As of 30 June 2025
The Company’s Mineral Resource Statement has been
compiled in accordance with the Australian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves
(The JORC Code 2012 and 2004 Editions) and Chapter 5 of the
ASX Listing Rules and ASX Guidance Note 31. The Company has
no Ore Reserve estimates.
The Company governs its activities in accordance with industry
best-practice. All reported estimates were generated by
reputable, independent consulting firms. The resource reports
and supporting data were subjected to internal analysis and
peer-review before release.
In 2016, Hammer Metals Limited commissioned Haren Consulting
Pty Ltd to update the Kalman Resource based on new drilling
and geological interpretation. The resource was issued on the
27th of September 2016. After the completion of additional drilling
2021/2022, Hammer commissioned Haren Consulting Pty Ltd to
update the Kalman Resource based on new drilling and geological
interpretation. The resource was issued on the 8th of May 2023.
In November 2018, H&S Consultants Pty Ltd was commissioned
to undertake a resource estimate on the Jubilee Cu-Au Deposit.
The MRE has been estimated in accordance with the 2012 edition
of the JORC Code and was issued on 12 December 2018.
In December 2022, Geowiz consulting was commissioned
by Hammer Metals Limited to undertake the Mineral Resource
Estimate (MRE) for the Lakeview copper-gold deposit. The MRE
has been estimated in accordance with the 2012 edition of the
JORC Code.
In July 2024, Geowiz consulting was commissioned by
Hammer Metals Limited to undertake the Mineral Resource
Estimate (MRE) for the Orelia North gold deposit. The MRE
has been estimated in accordance with the 2012 edition
of the JORC Code.
Cerro Resources Limited, the previous tenure holder over
the Mt. Philp Hematite Deposit reported the Resource Estimate
to the ASX on the 12 March 2012. The Mt Philp Resource
Estimate adhered to the JORC Code 2004 edition.
In relation to estimates tabulated below, the company is not
aware of any material changes that have occurred during the
reporting period.
Resource Project
Mineral Resource Competent Person
Organization
ASX Reporting Date
Orelia North
Mr. R. Corben
Geowiz Consulting
24 July, 2024
Lakeview
Mr. R. Corben
Geowiz Consulting
21 December, 2022
Jubilee
Mr. L. Burlet
H&S Consultants Pty Ltd
12 December, 2018
Kalman
Ms. E. Haren
Haren Consulting
8 May, 2023
Overlander
Ms. E. Haren
Haren Consulting
26 August, 2015
Mt. Philp
Mr. T. Leahey
Cerro Resource NL
28 September, 2012
🔨Kalman Deposit Jorc 2012 Mineral Resource Estimate (8 May, 2023)
(Reported at a 0.4% CuEq and 1% CuEq cut-off for open pittable and underground
resources respectively)
Kalman Mineral Resource
Classification
Mining
Method
CuEq
Cut-off
Tonnes
Kt (1)
CuEq
Cont.
% (3)
CuEq
Rec.
%(2,3,4)
Cu
%
Au
g/t
Ag
g/t
Mo
%
Re
g/t
Contained
CuEq Metal
(Kt) (1)
Recovered
CuEq Metal
(Kt) (1)
Indicated
Open Pit
0.4%
17,120
1.04
0.87
0.43
0.22
1.2
0.08
1.7
180
150
Inferred
Open Pit
0.4%
10,540
1.11
0.93
0.40
0.21
1.3
0.10
2.2
120
100
Inferred
Underground
1.0%
11,530
1.78
1.48
0.80
0.41
2.2
0.12
2.7
200
170
Total
39,190
1.27
1.07
0.53
0.27
1.5
0.10
2.1
500
420
ԅ Note: (1) The recovered copper equivalent equation is: CuEq Recovered = 0.86*Cu + (0.74*0.771051*Au) + (0.74*0.008336*Ag)
+ (0.86*4.857143*Mo) + (0.77*0.023334*Re).
ԅ Note: (2) Copper Equivalent Price assumptions are: Cu: US$7,714/t (US$3.50/lb); Au: US$1,850/oz; Ag: US$20/oz;
Mo: US$37,468/t (or US$17/lb); and Re: US$1,800/kg.
ԅ Note: (3) Recovery assumptions are: Cu 86%; Au 74%; Ag 74%; Mo 86%; and Re 77%..
ԅ Note: (4) Transition from Open to Underground Mining based on prior optimisation studies set at 75mRL.
Surface RL is approximately 425mRL.
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The Kalman Molybdenum-Rhenium-Copper-Gold-Silver (Mo-Re-Cu-
Au-Ag) deposit is situated 60 kilometres southeast of Mt Isa within
the Mt Isa Inlier, and forms part of the company’s Kalman Project.
Drilling extends to a maximum down hole depth of 998.3 metres
and the mineralisation was modelled from surface to a depth of
approximately 800 metres below surface. The estimate is based
on good quality RC and diamond core drilling data. The drill hole
spacing is approximately 100 metres along strike with some 50
metre-spaced infill drilling.
In May 2023, Haren Consulting was contracted by Hammer
Metals Limited to complete an update of the Mineral Resource
estimate for the deposit. The estimate was reported to comply
with the 2012 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’
by the Joint Ore Reserves Committee (JORC).
The Kalman Mineral Resource has been reported at two
cut-off grades to reflect both open pit and underground mining
scenarios. The Kalman Mineral Resource estimate comprises
a combined 39 million tonnes at 1.1% recovered copper equivalent
(CuEq) at 0.53% copper, 0.27 g/t gold, 0.10% molybdenum and
2.1 g/t rhenium in the Indicated and Inferred categories at revised
cut-off grades. (Refer to the ASX release dated 23 May 2023).
The Kalman Mineral Resource Estimate disclosed as part
of the 2016 review was last updated in March 2016 in accordance
with the JORC Code (2012 Edition). The Resource estimate
comprised a combined 20 million tonnes at 1.8% copper
equivalent (CuEq) at 0.53% Cu, 0.27g/t Au, 0.14% Mo and 3.7 g/t
Re in the Inferred category. (Refer to the ASX Release dated 27
September 2016 for full details of the Resource Estimate.)
The reasons for the MRE update were:
→
17 holes (K140-K156) drilled by Hammer in 2021/22 were incorporated into the resource model. The drill holes intersected
multiple, relatively shallow high-grade molybdenum and copper intersections which were considered to have the potential
to enhance the existing mineral resource model.
→
The deposit was re-interpreted to improve mineralisation constraints.
The 2016 resource update differed from the 2014 update in that the resulting total resource tonnage was increased from 20,000kt
to 39,120kt and average metal grades decreased, primarily due to the use of lower cut-off grades.
🔨Jubilee Deposit Jorc 2012 Mineral Resource Estimate
(12 December, 2018)
(Reported at 0.5% Cu cut-off)
Classification
Weathering
Domain
Tonnes
Cu
%
Au (Cut)
g/t
Cu
Tonnes
Au (Cut)
Ounces
Inferred
Mod-Slightly
Weathered
-
1.51
0.55
1,000
1,200
Inferred
Fresh
-
1.41
0.63
19,000
27,100
Total
-
1.41
0.62
20,000
28,300
ԅ Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence.
ԅ Note: (2) Totals may differ due to rounding.
The 51%-owned Jubilee Deposit is situated 50 kilometres west
of Mount Isa in Northwest Queensland.
In November 2018, H&S Consultants Pty ltd was commissioned
to undertake a resource estimate on the Jubilee Cu-Au Deposit.
The resource was issued on 12 December 2018.
The estimate is based on good quality RC and Diamond drilling
data. The estimate was based on a 42 reverse circulation holes
for 5475m and 3 diamond holes for 261m. Of these holes 26
were drilled by Hammer Metals Ltd and the remaining 19 drilled
by the previous operator. Drilling extends to a maximum depth
of 325m below surface. The drill hole spacing is approximately
50m along strike.
There has been no material change to the Jubilee Resource estimate
since its initial release to the ASX dated 20 December 2018.
Refer to the ASX release dated 20 December 2018. The company
is not aware of any new information or data that materially affects
the information in the HMX ASX announcement.
All material assumptions and technical parameters underpinning
the mineral resource estimate continue to apply and have not
materially changed.
36
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🔨Lakeview Deposit Jorc 2012 Mineral Resource Estimate
(21 December 2022)
(Reported at 0.3% Cu cut-off)
Lakeview Mineral Resource
Classification
Tonnes
Mt
Cu
%
Au
g/t
Cu
Tonnes
Au
Ounces
Inferred
0.59
1.02
0.30
6,049
5,706
In December 2022, Geowiz consulting was commissioned
by Hammer Metals Limited to undertake the Mineral Resource
Estimate (MRE) for the Lakeview copper-gold deposit. The MRE
has been estimated in accordance with the 2012 edition of the
JORC Code.
The 100%-owned Lakeview Deposit is located approximately
60 kilometres east of Mt Isa in northwest Queensland. A total
of 13 Reverse Circulation (RC) drillholes define the deposit
for 1,380 m of drilling. The deposit was sampled by drilling
at nominal 40 m spacing on 40m north-south oriented sections.
Holes were generally angled at -60° towards the south with dip
angles set to optimally intersect the mineralised horizons, which
dip at approximately 65°-70° to the north.
Mineralised intersections for the two main lodes were manually
coded in each drill hole using a nominal 0.3% Cu cut-off. The coded
mineralised intersections were loaded into Leapfrog software and
vein geological models were generated from the coded intervals
for the three interpreted lodes. Domain wireframes were extracted
from the Leapfrog model and exported into Surpac™ V6.6 software
where they were used as a guide to generate final wireframes used
to constrain the resource modelling.
A block model was set up with a parent cell size10m (E) x 4m (N)
x 5m (RL) with standard sub-celling to 5m (E) x 2.0m (N) x 2.5m
(RL) to maintain the resolution of the mineralised domains.
The 4m Northing dimension was used to reflect the geometry
and orientation of the domain wireframes. Samples composited
to 1m length were used to interpolate Cu and Au into the block
model using ordinary kriging interpolation method. All block
modelling was completed using Surpac™ v6.6 software.
Density was assigned to the block model based on 18 density
measurements taken inside the interpreted lodes.
A Lerchs-Grossman pit optimisation was run using a Cu price
of AUD$5.30 per pound and Au price of AUD$2,500 per ounce.
The block model was reported inside the pit shell to determine
that blocks >0.3% Cu have reasonable prospects of future
economic extraction by surface mining.
Although the RC drilling has defined 3 continuous mineralised
lodes, exploration of the Lakeview deposit is in the early stages
and more drilling is required to better define the extent of the
deposit. Due to the limited amount of drilling, the MRE has been
classified as Inferred only based on the guidelines specified in
the JORC Code.
The deposit appears to be of sufficient grade, quantity,
and coherence to have reasonable prospects for eventual
economic extraction.
🔨Overlander North And South Deposits Jorc 2012 Mineral
Resource Estimates (26 August 2015)
(Reported at 0.7% Cu cut-off)
Overlander North Mineral Resource
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
253,000
1.4
254
3,414
64
Inferred
870,000
1.3
456
11,350
396
Total
1,123,000
1.3
410
14,764
461
ԅ Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence.
ԅ Note: (2) Totals may differ due to rounding.
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Overlander South Mineral Resource
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
-
-
-
-
-
Inferred
649,000
1.0
500
6,352
327
Total
649,000
1.0
500
6,352
327
ԅ Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence.
ԅ Note: (2) Totals may differ due to rounding.
Overlander North and South Combined Mineral Resource
Classification
Tonnes
Cu
%
Co
ppm
Cu
Tonnes
Co
Tonnes
Indicated
253,000
1.4
254
3,414
64
Inferred
1,518,000
1.2
476
17,700
723
Total
1,772,000
1.2
445
21,112
788
ԅ Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence.
ԅ Note: (2) Totals may differ due to rounding.
The 100%-owned Overlander Project is situated 60 kilometres
to the southeast of the mining centre of Mount Isa in Northwest
Queensland and 6 kilometres to the west of Hammer’s Kalman
copper-gold-molybdenum-rhenium deposit. It is a high-priority
target area for both shear-hosted copper and IOCG copper
mineralisation. The Overlander North and South Copper Deposits
are situated approximately one kilometre apart within a common
shear zone.
Drilling in the Overlander North deposit extends to a vertical
depth of approximately 430m and the mineralisation was
modelled from surface to a depth of approximately 420 metres
below surface. Drilling in the Overlander South deposit extends
to a vertical depth of approximately 215 metres and the
mineralisation was modelled from surface to a depth
of approximately180m below surface.
The resource estimates are based on good quality RC and diamond
drilling data. Drill hole spacing is predominantly on a 40 metre
by 20 metre spacing with additional drill holes between sections
targeted at the higher-grade cores of the deposits.
Following additional drilling in 2014 and 2015, the Mineral
Resource Estimates for the Overlander North and South
shear-hosted copper Deposits were revised by Haren Consulting
Pty Ltd and reported in accordance with the guidelines of the
JORC Code (2012 Edition). They contain combined resources
of 1,772,000 tonnes at 1.2% copper in the indicated and inferred
categories (Refer to the ASX release dated 26 August 2015).
There has been no material change to the Overlander resource
base during the financial year.
🔨Mt. Philp Deposit Jorc 2004 Mineral Resource Estimate
(28 March 2012)
Mt Philp Mineral Resource
Classification
Tonnes
Fe
%
P
%
SiO2
%
AI203
%
TiO2
%
LOI
%
Indicated
19,110,000
41
0.02
38
1.3
0.38
0.29
Inferred
11,400,000
34
0.02
48
2.0
0.46
0.31
Total
30,510,000
39
0.02
42
1.6
0.41
0.30
ԅ Note: (1) Numbers rounded to two significant figures to reflect appropriate levels of confidence.
ԅ Note: (2) Totals may differ due to rounding.
38
Hammer Metals Ltd.
For personal use only
The Mount Philp Iron Ore deposit is located in north-western
Queensland, 1,500 kilometres northwest of Brisbane. The Mineral
Resource Estimate is based on 48 diamond and reverse circulation
(RC) drillholes completed in 2011 for a total of 3,801 metres.
Drilling comprises fans located on a nominal 100 metre pattern
along the strike length of the ironstone. The Mineral Resource
was estimated and reported in-house by Cerro Resource NL.
The current resource totals 19.1 million tonnes grading 41.4%
iron and 37.9% silica in the Indicated category and 11.4 million
tonnes grading 33.8% iron and 47.4% silica in the Inferred
category. This resource is open at depth.
A resource estimate was first completed and reported to ASX
by previous owners on 28 September 2012 and there has been
no material change to the resource base during the financial year.
A review of the resource estimate was completed for the purpose
of compiling this statement and the principles and methodology
of the resource estimation procedure and the resource
classification procedure have been reconciled with the CIM
Resource Reserve definitions and found to comply.
🔨Orelia North Jorc 2012 Mineral Resource Estimate
(24 July 2024)
(Reported at 0.5g/t Au cut-off)
Orelia North Mineral Resource
Classification
Tonnes
Mt
Au
g/t
Au
kOz
Inferred
1.48
1.15
54.5
ԅ Note: (1) Numbers rounded to reflect appropriate levels of confidence
ԅ Note: (2) Totals may differ due to rounding
In July 2024, Geowiz consulting was commissioned by Hammer
Metals Limited to undertake the Mineral Resource Estimate (MRE)
for the Orelia North gold deposit. The MRE has been estimated
in accordance with the 2012 edition of the JORC Code.
The Orelia North deposit is located approximately 9.5km to the
north of the Orelia gold operation operated by Northern Star
Resources Limited (ASX: NST) and ~12.5km northwest of NST’s
Bronzewing Gold Operations in the Yandal Greenstone belt
in Western Australia.
The Mineral Resource Estimate was based on 338 drillholes for
a total of 18.44km and 7,314 laboratory analyses. These holes
were drilled in 2019 and 2024 and consisted of 43 Reverse
Circulation holes (4.65km) and 295 Air Core holes (13.78km).
The drill hole spacing throughout the project is approximately
50 to 100m along strike. Drill spacing down dip is typically
20 to 40m.
Drill holes are orientated predominantly to an azimuth of
approximately 77° and drilled at an angle of -60° to the east
which is approximately perpendicular to the orientation of the
mineralised trends.
The Orelia North Mineral Resource envelopes extend over
a strike length of 2,100m and from surface to approximately
140m below surface. Multiple parallel hypogene mineralisation
envelopes occur across strike. A total of eleven hypogene
envelopes embrace the mineralisation. Envelopes vary from
1m to 15m in true thickness, covering a total width of 150m.
Three flat-lying supergene envelopes are superimposed on the
hypogene envelopes. These extend from surface to a maximum
depth of 100m. Average maximum depth is approximately 40m.
A block model was set up with a parent cell size 5m (E) x 20m
(N) x 4m (RL) with standard sub-celling to 1.25m (E) x 5.0m(N)
x 1.0m (RL) to maintain the resolution of the mineralised domains.
The 5m Easting dimension was used to reflect the geometry
and orientation of the domain wireframes.
Samples composited to 2m length were used to interpolate
Au into the block model using ordinary kriging for the hypogene
domains after applying top-cuts to reduce the influence of
outlier grades. Samples composited to 1m length were used
to interpolate Cu and Au into the block model using ordinary
kriging interpolation method. All block modelling was completed
using Surpac™ v6.6 software.
Density was assigned to the block model based on Gas
Pycnometric analysis, and 34 analyses were undertaken.
23 samples fall within the interpreted hypogene lode wireframes.
The remaining 11 analyses were classified as waste.
A Lerchs-Grossman pit optimisation was run using a Au price
of AUD$3,500 per ounce. The block model was reported inside
the pit shell to determine that blocks >0.5 ppm Au have reasonable
prospects of future economic extraction by surface mining.
The deposit has been tested with high quality drilling, sampling
and assaying. Geological logging has defined structural and
lithological controls that provide confidence in the interpretation
of mineralisation boundaries.
Geowiz considers that geological and mineralisation continuity
has been demonstrated with sufficient confidence to allow
the Orelia North deposit to be classified as Inferred Mineral
Resources. The deposit appears to be of sufficient grade,
quantity, and coherence to have reasonable prospects for
eventual economic extraction.
INTRODUCTION
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FINANCIALS
39
Annual Report 2025
For personal use only
🔨Governance and Internal Controls – Resource Calculations
The Company ensures good governance in relation to resource
estimation through the use of third-party resource consultants
and internal review in accordance with industry best practice.
All reported resource estimates were generated by reputable,
independent consulting firms. The resource reports and
supporting data were subjected to internal analysis and peer
review before release. The Company is not aware of any
additional information, other than that reported, which would
have a material effect on the estimates as reported.
Due to the nature, stage and size of the Company’s existing
operations, the Board believes there would be no efficiencies
gained by establishing a separate mineral reserves and
resources committee responsible for reviewing and monitoring
the Company’s processes for calculating mineral reserves
and resources estimates and for ensuring that the appropriate
controls are applied to such calculations.
The Company will report any future mineral reserves and
resources estimates in accordance with the 2012 JORC Code.
Resource by Commodity
Deposit
Tonnes
Mt
Contained
CuEq %
Recovered
CuEq %
Cu
%
Au
g/t
Co
%
Mo
%
Re
g/t
Fe
%
Contained
Copper
Tonnes
Contained
Gold
Ounces
Kalman
(Updated)
39.2
1.27
1.07
0.53
0.27
-
0.10
2.1
-
208,360
343,000
Jubilee
(51% HMX)
1.4
-
-
1.41
0.62
-
-
-
-
10,070
28,300
Overlander
1.8
-
-
1.20
-
0.05
-
-
-
21,120
Lakeview
0.6
-
-
1.03
0.30
5,950
5,700
Orelia North
1.48
1.15
N/A
54,500
Mount Philp
(36.6% HMX)
30.5
-
-
-
-
-
-
-
39.00
N/A
Total
245,500
431,500
ԅ Note: (1) Includes Kalman Recovered Copper Equivalent Metal.
ԅ Note: (2) Does not include substantial Au or Co by-product credits from Jubilee, Overlander or Lakeview.
ԅ Note: (3) Where no contribution of metal by-product credits are included, no metallurgical recoveries have been adopted.
ԅ Note: (4) Attributable to HMX.
ܶCompetent Persons Statement
The information in this Annual Mineral Resources Statement is based on,
and fairly represents, information and supporting documentation that was compiled
by Mr. Mark Whittle, who is a Fellow of the AusIMM and an employee of the Company.
Mr. Whittle, who is a shareholder and option-holder, has sufficient experience which is relevant to the styles of mineralisation
and types of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined
in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(2004 JORC Code) and the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (2012 JORC Code). Mr. Whittle consents to the inclusion in the report of the matters based on the information
in the form and context in which it appears.
40
Hammer Metals Ltd.
For personal use only
Tenement Interests at End of September 2025
🔨Mt Isa (Queensland)
Mt Dockerell Mining Pty Ltd
Lease
Lease Name
Lease Status
Interest
EPM 11919
Cameron River
Granted
100%
EPM 13870
Pelican
Granted
100%
EPM 18084
Dronfield
Granted
80%
EPM 25165
Cameron River 4
Granted
100%
EPM 26474
Enterprise
Granted
100%
EPM 26511
Sling Shot
Granted
100%
EPM 26628
Argylla
Granted
100%
EPM 26694
Mt Philp
Granted
36.6%
EPM 26775
Pilgrim North
Granted
100%
EPM 26776
Pilgrim Central
Granted
100%
EPM 26777
Pilgrim South
Granted
100%
EPM 26902
Marriage
Granted
36.6%
EPM 26904
Jady Jenny
Granted
100%
EPM 27018
Dingo Creek
Granted
100%
EPM 27469
Mount Moran
Granted
100%
EPM 27470
China Wall
Granted
100%
EPM 27806
Roos
Granted
36.6%
EPM 27815
Lady Vampire
Granted
100%
EPM 27861
Saint Mungo
Granted
100%
EPM 28285
The Plus
Granted
100%
EPM 28903
Pandora
Granted
100%
EPM 29265
Top Tank
Application
100%
EPM 29316
Galah Bore
Application
100%
INTRODUCTION
STATEMENTS + REPORTS
OPERATIONS
FINANCIALS
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Annual Report 2025
For personal use only
Mulga Minerals Pty ltd
Lease
Lease Name
Lease Status
Interest
EPM 12205
Cloncurry
Granted
100%
EPM 14019
South Mary K
Granted
100%
EPM 14022
North Mary K
Granted
100%
EPM 14467
Mt Frosty
Granted
51%
EPM 25145
Green Creek
Granted
100%
EPM 25866
Malbon
Granted
100%
EPM 25867
Mt Jasper
Granted
100%
EPM 26126
Cathay
Granted
100%
EPM 26127
Resolve
Granted
100%
EPM 26130
El Questro
Granted
100%
EPM 26512
Black Angel
Granted
100%
EPM 27355
Pioneer
Granted
100%
EPM 29066
Dipvale
Granted
100%
Hammer Bulk Commodities Pty ltd
Lease
Lease Name
Lease Status
Interest
EPM 28189
Resolve Extended
Granted
100%
EPM 28921
Ashover
Application
100%
EPM 29170
Fort William
Application
100%
🔨Yilgarn (Western Australia)
Carnegie Exploration Pty Ltd
Lease
Lease Name
Lease Status
Interest
E36/854
Granted
100%
E36/855
Granted
100%
E36/868
Kens Bore
Granted
100%
E36/869
Granted
100%
E36/870
Granted
100%
E36/882
Brontie
Granted
100%
E36/916
Granted
100%
E36/948
Granted
100%
42
Hammer Metals Ltd.
For personal use only
E36/996
Granted
100%
E36/1006
Application
100%
E36/1108
Application
100%
E36/1117
Weebo 1
Application
100%
E36/1118
Weebo 2
Application
100%
E36/1126
Weebo 3
Application
100%
E36/1127
Weebo 4
Application
100%
E36/1128
Weebo 5
Application
100%
E53/1989
Granted
100%
E53/1996
Granted
100%
E53/2030
Granted
100%
E53/2085
Granted
100%
E53/2112
Granted
100%
E53/2113
Granted
100%
E53/2114
Granted
100%
E53/2115
Granted
100%
E53/2116
Granted
100%
E53/2127
Granted
100%
E53/2128
Granted
100%
E53/2359
Application
100%
E53/2375
Application
100%
P36/1965
Application
100%
P36/1965
Application
100%
P53/1682
Granted
100%
P53/1683
Granted
100%
P53/1684
Granted
100%
P53/1685
Granted
100%
P53/1686
Granted
100%
P53/1687
Granted
100%
P53/1688
Granted
100%
P53/1689
Granted
100%
P53/1690
Granted
100%
P53/1691
Granted
100%
P53/1692
Granted
100%
P53/1693
Granted
100%
P53/1697
Granted
100%
INTRODUCTION
STATEMENTS + REPORTS
OPERATIONS
FINANCIALS
43
Annual Report 2025
For personal use only
DIRECTOR’S
REPORT
44
Hammer Metals Ltd.
For personal use only
The Directors present their report together with the financial report of Hammer Metals
Limited (“the Company” or “Hammer”) and of the Group, comprising the Company
and its subsidiaries, for the year ended 30 June 2025 and the auditor’s report thereon.
1. Directors
The names and details of the Company’s directors in office during the financial year
or since the end of the financial year are set out below.
Russell Davis
Non-Executive Chairman
BSc (Honours) MBA MAusIMM
Russell Davis is a Geologist with over 40 years’ experience
in the mineral resources business. He has worked on the
exploration and development of a range of commodities for
a number of international and Australian companies, holding
senior technical and corporate positions including Chief Mine
Geologist, Exploration Manager and Managing Director.
Mr Davis was a founding Director of Gold Road Resources
Limited in 2005 and continued as an Executive then
Non-executive Director until June 2016. Mr Davis was also
founding Director of Syndicated Metals Limited in 2007 and
Managing Director up to March 2012. Mr Davis has been
a Director of Hammer Metals (Australia) Pty Ltd since its
inception in 2012.
Daniel Thomas
Managing Director
BSc, MBA
Daniel Thomas has over 20 years’ experience in operations,
corporate development, project management and project
finance having completed undergraduate studies in Chemistry
and Geology as well as attaining an MBA from the Melbourne
Business School. During his career, Mr Thomas has worked
across Australia, North America, Asia and Africa, in a wide range
of commodities, including base and precious metals.
Mr Thomas’ most recent role before joining the Company was
as Business Development Manager at Sandfire Resources
(ASX:SFR), where he was instrumental in utilising cash-flows
generated by the DeGrussa Copper-Gold Mine to grow the
Company both organically through exploration and through
business development initiatives, including several acquisitions,
investments and joint ventures. Prior to his time at Sandfire
Resources Limited, Mr Thomas held roles with Wesfarmers, PTT
Asia Pacific Mining and Mitsui E&P Australia.
David Church
Non-Executive Director
LLB, BEc
David Church is currently a Partner in the national legal firm
Thompson Geer. Mr Church is a qualified solicitor and has
previously practiced in England and Wales and Hong Kong
with Linklaters. Mr Church was also the head of mergers and
acquisitions for Regent Pacific Group Limited, a Hong Kong
listed investment company, for over 13 years.
James Croser
Non-Executive Director
BEng (Mining Engineering)
James Croser has over 25 years of experience in operational
and executive roles with a strong track record in guiding junior
ASX companies through periods of significant growth. Most
recently, Mr Croser was a founding Director in the establishment
of Red Dirt Metals (now Delta Lithium – ASX:DLI) and the
discovery of the Mt Ida lithium deposit in WA.
INTRODUCTION
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45
Annual Report 2025
For personal use only
2. Directorships of Other Listed Companies
Directorships of other ASX listed companies held by Directors in the 3 years
immediately before the end of the financial year are as follows:
Name
Company
Period of Directorship
Russell Davis
M3 Mining Limited
July 2022 – April 2025 1
Daniel Thomas
None
-
David Church
Caprice Resources Limited
October 2019 – February 2024
James Croser
Delta Lithium Limited
Greenstone Resources Limited
December 2021 – current
November 2023 – June 2024
ԅ 1 – Mr Davis was a director of M3 Mining Limited prior to its listing on the Australian Securities Exchange in July 2023.
3. Company Secretary
Mark Pitts
Company Secretary
B.Bus, FCA, GAICD
Mr Pitts is a Chartered Accountant with over 35 years’ experience in statutoryreporting
and business administration. He has been directly involved with, and consulted to,
a number of public companies holding senior financial management positions.
4. Directors’ Meetings
The number of Directors’ meetings held, and the number of meetings attended
by each of the Directors of the Company during their term in office in the financial
year is as follows.
Director
Meetings Held While in Office
Meetings Attended
Mr R Davis
6
6
Mr D Thomas
6
6
Mr D Church
6
6
Mr J Croser
6
6
ԅ The Company does not have any committees. Matters usually considered by an audit, remuneration or nomination committee
were dealt with by the whole Board during regular Board meetings.
5. Principal Activity
The principal activity of the Group during the course of the financial year was mineral
exploration in Australia.
46
Hammer Metals Ltd.
For personal use only
6. Operating and Financial Review
The Group incurred an after-tax loss for the year of $2,923,316 (2024: profit of $6,270,584).
Corporate:
The following issues of ordinary shares were completed during the year:
→
28 October 2024 - a total of 1,351,351 ordinary shares at
a deemed price of $0.04 per share were issued in partial
satisfaction of the consideration to acquire an option over
the Lady Jenny prospect.
→
During the financial year 9,100,000 options lapsed
unexercised and 10,500,000 new options were issued.
No options were converted.
→
During the financial year, 4,500,000 performance rights
were granted and 3,000,000 expired. No rights were
converted.
→
Since the end of the financial year, no options or rights have
been granted or expired, and 5,000,000 vested performance
rights have been converted into ordinary shares.
Exploration Activities:
Hammer is currently exploring in two world-class minerals provinces, focused on the
discovery of copper and gold deposits.
In the Mount Isa region, the Group continued an aggressive exploration program unearthing a number of encouraging copper/gold
exploration targets. Hammer continues to advance its exploration activities in the Yandal Belt in WA, with the emergence of several
prospective gold targets near the former Bronzewing gold mine.
Queensland - Mount Isa Region Projects
In the Mount Isa base metals district, Hammer has five projects with established
copper-gold-molybdenum JORC resources.
The Group is committed to growing its metal inventory near
these existing resources, in addition to exploring the district
for large iron oxide copper-gold (IOCG) deposits of the Ernest
Henry style). The Group holds approximately 3,600 km2 of tenure
in the Mt. Isa region.
In 2024, Hammer Metals reshaped its Mount Isa portfolio,
entering four new Joint Ventures across a small portion of its
exploration tenure. Hammer now has six joint venture interests
covering ~940km2 out of its ~3,600km2 position in the Mount
Isa region. Hammer has retained a 100% interest in ~1,900km2
of tenure and a 100% interest in its JORC compliant Mineral
Resources at Kalman, Overlander, Elaine and Lakeview.
New Joint Ventures over highly prospective terrain were
established with Sumitomo Metals Mining Oceania (“SMMO”)
and South32. These projects have been established with the
aim of defining a large Tier 1 mineral systems such as Ernest
Henry and the Mount Isa Copper/Lead/Zinc systems. During the
financial year, Hammer also secured an Option to acquire an
80% interest in the Lady Jenny Mining Leases.
Mount Isa Project – wholly-owned projects
Hammer’s activities during the year focussed on the exploration of promising copper gold systems at Tourist Zone, Mascotte,
Revenue and nearby Kalman. Key results achieved during the year include (refer ASX Announcement dated 17 June 2025):
Tourist Zone
→
35m at 0.55% Cu and 0.10g/t Au from 35m in HMTZRC003, including 5m at 1.3% Cu and 0.18g/t Au from 63m;
→
and 26m at 0.50% Cu and 0.12g/t Au from 133m in HMTZRC004
Mascotte
→
6m @ 1.25% Cu and 0.23g/t Au from 111m in HMMARC014, including 2m @ 2.80% Cu and 0.39g/t Au from 111m.
Hammer also completed broad ranging geochemistry programs identifying new targets at the Sisters, Green Creek, Keyser
and around the Kalman deposit. New tenure at Dipvale and Fort William were also acquired during the year.
INTRODUCTION
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Annual Report 2025
For personal use only
Joint Ventures and Earn-in Programs
Lady Jenny (Hammer option to earn up to an 80% interest).
The Lady Jenny Mining Leases (ML2701 and ML90601) cover
an area of approximately 26Ha with the Lady Jenny copper trend
appearing to plunge shallowly to moderately north-north-east into
Hammer’s surrounding exploration permit.
Hammer’s initial exploration program at Lady Jenny intersected
copper and gold mineralisation in all holes drilled under the historical
pit, confirming a strike extent of ~180m. Highlights from these first
intercepts include (refer ASX Announcement dated 20 February 2025):
→
32m at 1.05% Cu and 0.22g/t Au from 14m in HMLJRC005
– estimated true width ~25m, including 20m at 1.35% Cu
and 0.30g/t Au from 16m;
→
26m at 0.67% Cu and 0.34g/t Au from 37m in
HMLJRC008 – estimated true width ~21m, including
1m at 9.08% Cu and 4.4g/t Au from 42m; and
→
15m at 1.10% Cu and 0.11g/t Au from 11m in HMLJRC003
– estimated true width 10m.
Mount Hope JV (Hammer -49% interest)
Hammer retains a 49% interest in the three Mount Hope sub-blocks that have granted to Carnaby. Upon a decision to mine, Carnaby will
pay Hammer $5million in cash. Hammer will retain a 30% equity interest and will be free carried by Carnaby to production from the three
Sub-Blocks. Exploration activities continued throughout the year on the sub-blocks.
Bullrush JV (SMMO earning up to a 60-80% interest)
The Bullrush Project has geophysical signatures that are suggestive of IOCG mineralisation beneath cover. Hammer completed a 4-hole,
2,262m drill program testing IOCG targets in the Malbon region ~60km south of Cloncurry. Favourable zones of brecciation and alteration
observed through numerous zones within the granite which provides a proof-of-concept drill test of the Wimberu Intrusive Complex to host
a large Iron Oxide Copper-Gold (IOCG) system. Geophysical programs are ongoing with further drilling planned in the December quarter.
Mt Isa East Joint Venture (“MIEJV”) (Hammer’s current ownership ~40%)
Work on the MIEJV continued throughout the year with soil sampling and geological reviews along the Jimmy Creek, Dronfield and Malbon.
A number of potential drilling targets have been identified.
Isa Valley JV (South32 option to earn up to an 80% interest)
An ionic leach soil sampling program was completed along the highly prospective Mount Isa fault structure with anomalous zinc and lead
geochemistry appearing coincident with a stratigraphic VTEM conductor. South32 has elected to continue in the Joint Venture with
a drilling program scheduled for October.
Western Australia - Bronzewing South Project
Hammer’s tenements cover prospective structural trends in the core of the Yandal
Greenstone Belt. This region has reported greater than 24Moz of current and historical gold
production from deposits such as Bronzewing, Jundee, Mt McClure, Darlot and Thunderbox.
The company successfully applied for new tenure in the region
increasing its footprint in the Yandal gold province to ~730km2
of tenure. The new tenements are located between the
Bronzewing and Thunderbox mining projects and been
subjected to minimal levels of gold exploration.
Hammer’s comprehensive exploration and geological review
of its Yandal Gold Project in WA resulted in the definition of
several new drilling targets at Bronzewing South and Ken’s Bore.
Hammer’s review focused on the significant potential of the
Bronzewing South Project, where effective exploration has been
restricted prior to Hammer’s acquisition of the ground primarily
due to a protracted legal dispute and depressed gold prices.
A detailed air core program was completed at Hammer’s targets
at Sword, Bower and Harrier during the period with several
gold anomalies identified in drilling with key intercepts including
(refer ASX Announcement dated 1 October 2024):
→
1m at 0.84g/t Au from 31m within an outer envelope
of 32m at 0.07g/t Au from 16m in BWSAC0942; and
→
1m at 0.66g/t Au from 25m with an outer envelope
of 49m at 0.07g/t Au from 25m in BWSAC0937.
→
8 metres at 0.12g/t Au from surface in BWSAC0890.
Metallurgical test work of ore from Hammer’s Orelia gold
deposit was completed during the year with gold recoveries
ranging between 90% and 96% with an average of 94.5% from
the test work (refer ASX Announcement dated 21 October
2024). High recoveries and low tail grades are encouraging
and indicate that Orelia North gold mineralisation will respond
well during cyanide hydrometallurgical processing.
48
Hammer Metals Ltd.
For personal use only
Risk Management:
The Company takes a proactive approach to risk management.
The Board is responsible for ensuring that risks, including emerging risks, and also opportunities, are identified on a timely basis and
the Company’s objectives and activities are aligned with the risks and opportunities identified by the Board.
Given the size of the Company and its stage of development all Board members are involved and have responsibility for management
of risk. Day to day management of risks are delegated to the Managing Director.
Material business risks
There are inherent risks associated with the exploration for minerals. The Group faces the usual risks encountered by companies
engaged in the exploration, evaluation and development of minerals. The material business risks for the Group include:
External Risks
Environmental risks
The Company’s operations and projects are subject to the laws and regulations of the jurisdictions in which it has interests and
carries on business (Queensland and Western Australia) regarding environmental compliance and relevant hazards. There is also
a risk that the environmental laws and regulations may become more onerous, making the Group’s operations more expensive
which may adversely affect the financial position and /or performance of the Group. The Directors are not aware of any
environmental law that is not being complied with.
The Company may be impacted by climate related risks including reduced water availability, extreme weather events and changes
to legislation and regulation in relation to climate.
Government regulations and claims risks
Changes in law and regulations or government policy may adversely affect the Group’s operations. There is no guarantee that current
or future exploration claim applications or existing claim renewals will be granted, that they will be granted without undue delay, or that
the Company can economically comply with any conditions imposed on any granted exploration claims. Loss of claims may adversely
affect the financial position and /or performance of the Group. Management maintains close contact with relevant Departments and
industry bodies to monitor changes and proposed changes in regulation and policy.
Cyber risk
The Group uses various IT systems and cloud based software. Should a cyber event occur, there is a risk of business disruption
or data breach that may adversely affect the financial position and/or performance of the Group.
Operating Risks
Exploration and development risk
The exploration for and development of mineral deposits involves significant risks that even a combination of careful evaluation,
experience and knowledge may not eliminate.
While the discovery of an ore body may result in substantial rewards, not all exploration activity will lead to the discovery of economic
deposits. Major expenditure may be required to locate and establish Ore Reserves, to establish rights to mine the ground, to receive all
necessary operating permits, to develop metallurgical processes and to construct mining and processing facilities at a particular site.
Mineral Resources
The Group’s estimates of Mineral Resources are based on different levels of geological confidence and different degrees of technical
and economic evaluation, and no assurance can be given that anticipated tonnages and grades will be achieved or could be mined
or processed profitably.
In addition to the risks described above, the Group’s ability to successfully develop projects is contingent on the Group’s ability to fund
those projects through debt or equity raisings.
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7. Dividends
No dividends were paid or declared by the Company during the financial year.
8. Events Subsequent to Balance Date
Subsequent to year end the following events have occurred:
On 17 September 2025, 5,000,000 vested performance rights were converted into ordinary shares in the Company. During September
2025 the Company sold 6,366,001 of the shares held in Carnaby Resources Limited (ASX:CNB), raising approximately $1.9m.
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has 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.
9. Likely Developments
The Company will continue planning and executing exploration and development work on its existing projects in Australia as well
as reviewing projects in Australia to complement and expand on existing tenement holdings.
10. Directors’ Interests
The relevant interest of each Director in the shares and options of the Company as notified by the Directors to the Australian Securities
Exchange in accordance with S205G(1) of the Corporations Act 2001, at the date of this report is as follows:
Director
Ordinary Shares
Unlisted Options
Performance Rights
Mr R Davis
45,500,000
4,000,000
-
Mr D Thomas
9,833,334
4,000,000
7,000,000
Mr D Church
1,052,631
4,000,000
-
Mr J Croser
-
4,000,000
-
ԅ The above table includes indirect shareholdings held by related parties to the directors.
11. Environmental Regulations
In the course of its normal mining and exploration activities Hammer adheres to environmental regulations imposed on it by the
various regulatory authorities, particularly those regulations relating to ground disturbance and the protection of rare and endangered
flora and fauna.
Hammer has complied with all material environmental requirements up to the date of this report. The Board believes that Hammer
has adequate systems in place for the management of its environmental requirements and is not aware of any breach of these
environmental requirements as they apply to it.
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12. Remuneration Report – Audited
12.1 Principles of Compensation
Remuneration levels for key management personnel and other staff of Hammer are competitively set to attract and retain
appropriately qualified and experienced personnel and therefore includes a combination of cash paid and the issuance of options
and rights. Key management personnel comprise the directors of the Company and senior executives for Hammer.
Staff remuneration is reviewed annually.
Consequences of performance on shareholder wealth
In establishing performance measures and benchmarks to ensure incentive plans are appropriately structured to align corporate
behaviour with the long-term creation of shareholder wealth, the Board has regard for the stage of development of the Company’s
business, share price, operational and business development achievements (including results of exploration activities) that are of
future benefit to the Company. In considering Hammer’s performance and benefits for shareholder wealth, the Board have regarded
the following indices in respect to the current and previous four financial years:
2025
2024
2023
2021
2019
Gain/(Loss) per share (cents)
(0.33)
0.71
(0.16)
(0.08)
(0.08)
Net (loss)/profit ($)
(2,923,316)
6,270,584
(1,285,536)
(645,270)
(611,525)
Share price at 30 June
$0.028
$0.037
$0.061
$0.045
$0.092
Service contracts
ܶDaniel Thomas // Managing Director
The Company entered into an Executive Service agreement with Mr Thomas on 1 August 2022, which was revised on 1 July 2024.
An Executive service fee of $300,000 (plus superannuation) per annum is payable with an indefinite term. Either Party can terminate
the agreement subject to a three-month notice period. Mr Thomas is not entitled to any termination payments other than for services
rendered at time of termination.
ܶMark Pitts // Company Secretary
Mr Pitts is a Principal in the Company Secretarial and CFO advisory divisions of the Automic Group providing secretarial support and
corporate and compliance advice, pursuant to a contract with the Company. The contract has no fixed term with the option of termination
by either party with two months’ written notice. Mr Pitts is not entitled to any termination payments other than for services rendered at
time of termination.
ܶNon-executive directors
Effective from 1 July 2024, all non-executive Directors receive a fixed annual Directors’ fee of $50,000 (plus superannuation benefits
as required under the applicable legislation). The Chair receives a fixed annual fee of $75,000 (plus superannuation benefits as
required under the applicable legislation). The maximum aggregate amount of non-executive Directors’ fees payable by the Company
as approved by the shareholders at the 2011 annual general meeting is $300,000 per annum.
Share trading policy
In December 2010, Hammer introduced a share trading policy which sets out the circumstances in which directors, executives,
employees and other designated persons may deal with securities held by them in the Company. This includes any shares or any other
securities issued by the Company such as options. The policy includes restriction on key management personnel and other employees
from entering into arrangements that limit their exposure to losses that would result from share price decreases. Entering into such
arrangements has been prohibited by law since 1 July 2011.
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12.2 Directors’ and Senior
Executives’ Remuneration
Details of the nature and amount of each major element of the remuneration of each director of the Company and other key
management personnel of the Group are:
Year Ended
30 June 2025
Short Term
Long Term
Proportion of
Remuneration
Performance
Related %
Value of Options
and Rights as
Proportion of
Remuneration %
Directors
Salary &
Fees $
Consulting
Fees $
Superannuation
Benefits $
Options and
Rights $
Total $
Executive
Mr D Thomas
304,568
-
29,932
192,346
525,060
36.6%
36.6%
Non-executive
Mr R Davis
75,000
-
8,625
36,100
119,725
-
30.2%
Mr D Church
50,000
-
5,750
15,100
70,850
-
21.3%
Mr J Croser
50,000
-
5,750
-
55,750
-
-
Total - Directors
479,568
-
50,057
243,546
771,385
24.9%
31.6%
Other Key
Management
Personnel
Executives
Mr M Pitts
(Company
Secretary)
66,100
-
-
-
66,100
-
-
Total
All Key
Management
Personnel
545,668
-
50,057
243,546
837,485
23.0%
29.1%
ԅ 1 – Represents the accounting value of the movement in accrued leave liabilities, and not amounts paid to the member of Key Management Personnel.
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Year Ended
30 June 2024
Long Term
Proportion of
Remuneration
Performance
Related %
Value of Options
and Rights as
Proportion of
Remuneration %
Directors
Consulting
Fees $
Movement in
Leave Accruals1 $
Superannuation
Benefits $
Options and
Rights $
Total $
Executive
Mr D Thomas
-
9,260
28,711
218,004
533,826
33.4%
40.8%
Non-executive
Mr R Davis
-
-
7,432
-
75,000
-
-
Mr D Church
-
-
4,955
29,850
79,850
-
37.4%
Mr J Croser
-
-
4,047
103,200
144,034
-
71.6%
Mr Z Lubieniecki3
3,000
-
922
-
12,305
-
-
Total - Directors
3,000
9,260
46,067
351,054
845,015
21.1%
41.5%
Other Key
Management
Personnel
Executives
Executives
Mr M Pitts
(Company Secretary)
-
-
-
-
69,975
-
-
Total
All Key Management
Personnel
3,000
9,260
46,067
351,054
914,990
19.5%
38.4%
ԅ 1 – Represents the accounting value of the movement in accrued leave liabilities and not amounts paid to the member of Key Management Personnel.
ԅ 2 – Appointed 8 September 2023.
ԅ 3 – Resigned 7 September 2023.
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12.3 Value of Options To Key
Management Personnel
The value of options will only be realised if and when the market price of the Company shares, as quoted on the Australian Securities
Exchange, rises above the Exercise Price of the options. Further details of the options are contained below.
12.4 Options and Rights Over Equity
Instruments Granted as Compensation
During the current financial year, 3,500,000 options were granted to Non-Executive Directors, and 3,000,000 performance rights were
granted to the Managing Director. The terms of these options and rights are noted in the tables below.
12.5 Analysis of Options and Rights Over Equity
Instruments Granted as Compensation
Granted during the current financial year
The following options were granted as remuneration to key management personnel during the year.
Key Management
Personnel
Number of
Options
Granted
Date Granted
% Vested
% Forfeited
/ Lapsed
Financial Year
in Which Grant
Vested / Will Vest
Related Party Options –
Tranche 1
Russell Davis
1,000,000
15 November 2024
100%
-
-
Related Party Options –
Tranche 2
Russell Davis
1,500,000
15 November 2024
100%
-
-
Related Party Options –
Tranche 1
David Church
1,000,000
15 November 2024
100%
-
-
The fair value of the options issued during the year to Key Management Personnel was determined by reference to the Black-Scholes
option pricing model. The key inputs and valuations are summarised as follows:
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Related Party Options
– Tranche 1
Related Party Options
– Tranche 2
Underlying security spot price on grant date
$0.035
$0.035
Exercise price
$0.07
$0.08
Grant date
15/11/2024
15/11/2024
Expiration date
2/12/2028
2/12/2028
Vesting date
Immediate
Immediate
Life (years)
4
4
Volatility
75%
75%
Risk free rate
4.214%
4.214%
Dividend Yield
Nil
Nil
Number of options
2,000,000
1,500,000
Valuation per option
$0.0151
$0.0140
Remaining life (years)
3.4
3.4
Total value
$30,200
$21,000
Value recognised to date
$30,200
$21,000
Value still to be recognised
-
-
The following performance rights, which all expire on 15 November 2027, were issued to the Company’s Managing Director during the year:
→
a) 1,000,000 Tranche 1 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
→
b) 1,000,000 Tranche 2 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
→
c) 1,000,000 Tranche 3 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
The fair value of the Related Party Performance Rights issued during the year to Key Management Personnel was determined
by reference to the underlying security on the date of issue, being $0.035 each.
Granted during previous financial years
The following options were granted as remuneration to key management personnel during the previous financial year.
Key Management
Personnel
Number of
Options
Granted
Date Granted
% Vested
% Forfeited
/ Lapsed
Financial Year
in Which Grant
Vested / Will Vest
Daniel Thomas –
Management Options –
Tranche 1
2,000,000
17 November 2023
100%
-
-
Daniel Thomas –
Management Options –
Tranche 2
2,000,000
17 November 2023
100%
-
30 June 2025
David Church
1,500,000
17 November 2023
100%
-
-
James Croser
4,000,000
7 September 2023
100%
-
-
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The fair value of the options issued during the year to Key Management Personnel was determined by reference to the Black-Scholes
option pricing model. The key inputs and valuations are summarised as follows:
Management – T1
Management – T2
D Church
J Croser
Underlying security spot price
on grant date
$0.05
$0.05
$0.05
$0.055
Exercise price
$0.08
$0.08
$0.08
$0.08
Grant date
17 November 2023
17 November 2023
17 November 2023
7 September 2023
Expiration date
30 November 2026
30 November 2026
30 November 2026
30 November 2026
Vesting date
Immediate
15 December 2024
Immediate
Immediate
Life (years)
3
3
3
3.25
Volatility
75%
75%
75%
75%
Risk free rate
4.172%
4.172%
4.172%
3.841%
Dividend Yield
-
-
-
-
Number of options
2,000,000
2,000,000
1,500,000
4,000,000
Valuation per option
$0.0199
$0.0199
$0.0199
$0.0258
Remaining life (years)
1.4
1.4
1.4
1.4
Total value
$39,200
$39,200
$29,850
$103,200
Value recognised to date
(as at 30 June 2025)
$39,200
$39,200
$29,850
$103,200
Value still to be recognised
(as at 30 June 2025)
-
-
-
-
The following performance rights, which all expire on 15 December 2027, were issued to the Company’s Managing Director during
the previous year:
→
500,000 Tranche 1A Management Performance Rights,
vesting upon the continuous service for a period of 12
months from the date of issue;
→
500,000 Tranche 1B Management Performance Rights,
vesting upon the continuous service for a period of 12
months from the date of issue and the share price of the
Company’s shares listed on the ASX achieving a premium
of 50% over the 15-day VWAP prior to the issue date,
or $0.078;
→
500,000 Tranche 2A Management Performance Rights,
vesting upon the continuous service for a period of 24
months from the date of issue;
→
500,000 Tranche 2B Management Performance Rights,
vesting upon the continuous service for a period of 24
months from the date of issue and the share price of the
Company’s shares listed on the ASX achieving a premium
of 100% over the 15-day VWAP prior to the issue date,
or $0.104; and
→
7,000,000 Tranche 3 Management Performance Rights,
vesting upon the completion (to the Board’s satisfaction)
of a material transaction to the value of a minimum of 30%
of the Company’s market capitalisation, determined based
on the 30-day VWAP immediately prior to the completion
or announcement of the transaction.
The fair value of the Management Performance Rights issued during the previous year to Key Management Personnel was determined
by reference to the underlying security on the date of issue. With respect to Tranches 1A, 2A and 3, these fair values have not been
adjusted as there exist no market-based performance conditions attached to the rights. The key inputs and valuations are summarised
as follows:
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Management
Performance Rights
- Tranche 1A
Management
Performance Rights
– Tranche 2A
Management
Performance Rights
- Tranche 3
Underlying security spot price on grant date
$0.052
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2025
15 Dec 2025
15 Dec 2027
Life (years)
4.1
4.1
4.1
Discount applied {a}
-
-
-
Number of rights
500,000
500,000
7,000,000
Value per right
$0.05
$0.05
$0.05
Remaining life (years) {b}
2.5
2.5
2.5
Total value
$26,000
$26,000
$364,000
Value recognised to date
(as at 30 June 2025)
$26,000
$20,245
$144,475
Value still to be recognised
(as at 30 June 2025)
-
$5,755
$219,525
ԅ {a} all the above three tranches of Management Performance Rights issued during the year contain no market-based vesting
conditions and therefore no discount has been applied.
ԅ {b} the remaining life represents the time, in years, left until the expiry of the right.
Options or rights expired or exercised during the year
→
3,500,000 options held by key management personnel expired unexercised during the year.
→
3,000,000 performance rights held by Mr Daniel Thomas (or their nominee) expired unexercised during the year.
12.6 Option Holdings
The movement during the reporting period in the number of options over ordinary shares in Hammer Metals Limited held, directly,
indirectly or beneficially, by each key management person, including their personally-related entities, is as follows:
Key
Management
Personnel
Held at
Beginning
of Period/on
Appointment
Granted
Purchased
Exercised
Lapsed or
Expired
Held at
End of
Period / on
Resignation
Vested and
Exercisable
at End of
Period
Mr R Davis
3,500,000
2,500,000
-
-
(2,000,000)
4,000,000
4,000,000
Mr D Thomas
4,000,000
-
-
-
-
4,000,000
4,000,000
Mr D Church
4,000,000
1,000,000
-
-
(1,000,000)
4,000,000
4,000,000
Mr J Croser
4,000,000
-
-
-
-
4,000,000
4,000,000
Mr M Pitts
500,000
-
-
-
(500,000)
-
-
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12.7 Equity Holdings and Transactions
The movement during the reporting period in the number of ordinary shares in Hammer Metals Limited held directly, indirectly
or beneficially, by each key management person, including their personally related entities, is as follows:
Held at
Beginning
of Period/on
Appointment
Purchases
Sales
Granted in
Lieu of Fees
Exercise of
Options and
Performance
Rights
Held at End
of Period/on
Resignation
Mr R Davis
43,744,013
1,755,987
-
-
-
45,500,000
Mr D Thomas
4,833,334
-
-
-
-
4,833,334
Mr D Church
1,052,631
-
-
-
-
1,052,631
Mr J Croser
-
-
-
-
-
-
Mr M Pitts
1,729,459
-
-
-
-
1,729,459
12.8 Performance Right Holdings
The movement during the reporting period in the number of performance rights over ordinary shares in Hammer Metals Limited held,
directly, indirectly or beneficially, by each key management person, including their personally-related entities, is as follows:
Held at
Beginning
of Period/on
Appointment
Granted
Exercised
Other
Movements
/ Expiry
Held at
End of
Period / on
Resignation
Vested and
Exercisable
at End of
Period
Mr R Davis
-
-
-
-
-
-
Mr D Thomas
12,000,000
3,000,000
(3,000,000)
12,000,000
5,500,000
Mr D Church
-
-
-
-
-
Mr J Croser
-
-
-
-
-
-
Mr M Pitts
-
-
-
-
-
-
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12.9 Key Management Personnel Transactions
The following table provides the total amount of transactions which have been entered into with related parties for the relevant financial
year exclusive of GST:
Transaction Value Year Ended
Balance Outstanding as at
Key Management
Personnel
Transaction
30 June 2025
$
30 June 2024
$
30 June 2025
$
30 June 2024
$
Mr Z Lubieniecki
Consulting Fees
-
3,000
-
-
Mr M Pitts
Accounting services
38,109
43,700
2,754
3,900
ԅ The Company paid fees to Zbigniew Lubieniecki as consulting fees for geological services provided.
ԅ The Company paid fees to Endeavour Corporate / Automic, an entity associated with Mark Pitts, for accounting and financial
reporting services provided to the Group.
ԅ Mr Lubieniecki resigned on 7 September 2023.
13. Share Options
Unissued shares under option
At the date of this report unissued ordinary shares of the Company under option are:
Expiry Date
Exercise Price
Number of Options
Non-Executive Director Options
30 November 2026
$0.07
4,500,000
Non-Executive Director Options
30 November 2026
$0.08
5,500,000
Management Options – Tranche 1
30 November 2026
$0.08
2,000,000
Management Options – Tranche 1
30 November 2026
$0.08
2,000,000
Employee Incentive Options 2024
28 October 2028
$0.06
7,000,000
Related Party Options – Tranche 1
2 December 2028
$0.07
2,000,000
Related Party Options – Tranche 2
2 December 2028
$0.08
1,500,000
24,500,000
ԅ These options do not entitle the holder to participate in any share issue of the Company or any other body corporate.
Shares issued on exercise of options
No shares were issued during the year upon the exercise of options.
On 6 July 2023, a total of 3,000,000 options exercisable at 3.5 cents each ($0.035) were exercised. The funds for these were
received prior to 30 June 2023 and therefore the increase in share capital was recognised during the previous financial year.
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14. Performance Rights
Unissued shares under performance rights
At the date of this report unissued ordinary shares of the Company under performance rights are:
Expiry Date
Number of Rights
Management Performance Rights – 1A
15 December 2027
500,000
Management Performance Rights – 1B
15 December 2027
500,000
Management Performance Rights – 2A
15 December 2027
500,000
Management Performance Rights – 2B
15 December 2027
500,000
Management Performance Rights – 3
15 December 2027
2,000,000
Employee Incentives 2024 Performance Rights - T1
25 October 2027
500,000
Employee Incentives 2024 Performance Rights - T2
25 October 2027
500,000
Employee Incentives 2024 Performance Rights - T3
25 October 2027
500,000
Related Party Performance Rights – T1
15 November 2027
1,000,000
Related Party Performance Rights – T2
15 November 2027
1,000,000
Related Party Performance Rights – T3
15 November 2027
1,000,000
8,500,000
ԅ The terms of these rights are summarised in section 12.5 above.
Shares issued on exercise of performance rights
During the year, no performance rights were exercised.
15. Corporate Governance
In recognising the need for the highest standards of corporate behaviours and accountability, the Directors support and have adhered
to the principles of sound corporate governance.
The Board recognises the recommendations of the ASX Corporate Governance Council and considers the Company is in compliance
with those guidelines which are of importance to the operations of the Company. Where a recommendation has not been followed,
that fact has been disclosed together with the reasons for the departure.
The Company’s Corporate Governance Statement and disclosures available on the Company’s website at www.hammermetals.com.au.
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16. Indemnification of Officers and Auditors
The Company has entered into Deeds of Access and Indemnity
(Deed) with each Director and the Company Secretary (officers).
Under the Deed, the Company indemnifies the officers to the
maximum extent permitted by law and the Constitution against
legal proceedings, damage, loss, liability, cost, charge,
expense, outgoing or payment (including legal expenses
on a solicitor/client basis) suffered, paid or incurred by the
officers in connection with the officers being an officer of the
Company, the employment of the officer with the Company
or a breach by the Company of its obligations under the Deed.
Also pursuant to the Deed, the Company must insure the officers
against liability and provide access to all board papers relevant
to defending any claim brought against them in their capacity
as officers of the Company.
The Company has paid insurance premiums during the year
in respect of liability for any past, present or future Directors,
secretary, officers and employees of the Company or related
body corporate. The insurance policy does not contain details
of the premium paid in respect of individual officers of the
Company. Disclosure of the nature of the liability cover and the
amount of the premium is subject to a confidentiality clause
under the insurance policy.
The Company has not provided any insurance or indemnification
for the Auditor of the Company.
17. Non-Audit Services
During the year PKF Perth, the Company’s auditor, provided no non-audit services to the Company.
18. Lead Auditor’s Independence
Declaration Under Section 307c
of The Corporations Act 2001
The lead auditor’s independence declaration is set out on page 62 and forms part of the Directors’ report for the financial year ended
30 June 2025.
19. Significant Changes in State of Affairs
In the opinion of Directors, other than that disclosed elsewhere in this report, there were no other significant changes in the state
of affairs of the Group that occurred during the financial year under review. This report is made with a resolution of the Directors:
Russell Davis
Chairman
Perth
30 September 2025
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Auditor’s Independence Declaration
- 17 -
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF HAMMER METALS LIMITED
In relation to our audit of the financial report of Hammer Metals Limited for the year ended 30 June 2025, to the best
of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the
Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
ALEXANDRA SOFIA
BALDEIRA PEREIRA CARVALHO
PARTNER
30 September 2025
PERTH, WESTERN AUSTRALIA
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Consolidated Statement of Financial Position
As at 30 June 2025
Note
30 June 2025
30 June 2024
$
$
Current assets
Cash and cash equivalents
10
2,559,394
5,228,612
Trade and other receivables
11
145,815
172,227
Total current assets
2,705,209
5,400,839
Non-current assets
Other financial assets
12
3,633,385
4,615,933
Plant and equipment
5,136
3,006
Right-of-use assets
13
141,368
177,663
Exploration and evaluation expenditure
14
27,901,337
26,540,119
Total non-current assets
31,681,226
31,336,721
Total assets
34,386,435
36,737,560
Current liabilities
Trade and other payables
15
875,498
660,677
Lease liabilities
16
89,155
108,892
Total current liabilities
964,653
769,569
Non-current liabilities
Lease liabilities
16
52,134
68,696
Total non-current liabilities
52,134
68,696
Total liabilities
1,016,787
838,265
Net assets
33,369,648
35,899,295
Equity
Share capital
17
66,859,386
66,810,197
Reserves
18
748,748
787,618
Accumulated losses
(34,238,486)
(31,698,520)
Total equity
33,369,648
35,899,295
ԅ The consolidated statement of financial position is to be read in conjunction with the accompanying notes.
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Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For The Year Ended 30 June 2025
Note
30 June 2025
30 June 2024
$
$
Other income
4
227,320
177,062
Sale of tenement
4
-
9,000,000
Marketing expenses
(122,119)
(81,454)
Administrative expenses
(524,250)
(969,253)
Employee benefits expense
5
(259,501)
(249,704)
Share based payments
5
(344,480)
(339,357)
Occupancy expenses
(61,551)
(43,636)
Depreciation and amortisation
5
(92,305)
(97,929)
Exploration written off
14
(907,190)
(599,610)
Fair value adjustment on financial assets
(978,158)
(611,596)
Other expenses
-
(1,026)
Profit / (Loss) from operating activities
(3,062,234)
6,183,497
Finance income
150,939
99,097
Finance expenses
(12,021)
(12,010)
Net finance income / (expense)
6
138,918
87,087
Profit/(loss) before income tax
(2,923,316)
6,270,584
Income tax benefit
8
-
-
Net profit/(loss) for the year from continuing operations
(2,923,316)
6,270,584
Other comprehensive income
-
-
Other comprehensive loss for the year, net of income tax
-
-
Total Comprehensive profit/(loss) for the year
(2,923,316)
6,270,584
Loss per share:
Basic gain/(loss) per share (cents per share)
9(a)
(0.33)
0.71
Diluted gain/(loss) per share (cents per share)
9(a)
(0.33)
0.71
ԅ The consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
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Consolidated Statement of Changes in Equity
For The Year Ended 30 June 2025
Share Capital
Share Based
Payment
Reserve
Accumulated
Losses
Total
Balance at 1 July 2023
66,593,958
1,382,293
(38,903,136)
29,073,115
Profit for the year
-
-
6,270,584
6,270,584
Other comprehensive income / (loss)
-
-
-
-
Total comprehensive income for the period
-
-
6,270,584
6,270,584
Shares issued for cash
220,000
-
-
220,000
Share based payments
-
339,357
-
339,357
Derecognition of share based payments
previously expensed
-
(934,032)
934,032
-
Share issue costs
(3,761)
-
-
(3,761)
Balance at 30 June 2024
66,810,197
787,618
(31,698,520)
35,899,295
Balance at 1 July 2024
66,810,197
787,618
(31,698,520)
35,899,295
Loss for the year
-
-
(2,923,316)
(2,923,316)
Other comprehensive income / (loss)
-
-
-
-
Total comprehensive loss for the period
-
-
(2,923,316)
(2,923,316)
Shares issued to acquire tenements
50,000
-
-
50,000
Lapse of options
-
(251,350)
251,350
-
Lapse of performance rights
-
(132,000)
132,000
-
Share based payments
-
344,480
-
344,480
Share issue costs
(811)
-
-
(811)
Balance at 30 June 2025
66,859,386
748,748
(34,238,486)
33,369,648
ԅ The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
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Consolidated Statement Of Cash Flows
For The Year Ended 30 June 2025
Note
30 June 2025
30 June 2024
$
$
Cash flows from operating activities
Interest received
150,939
99,097
Fuel rebate received
10,054
9,194
Management fees received from farm-in and joint arrangement
partners
169,310
173,676
Exploration incurred on behalf of farm-in partner
(1,285,014)
(1,430,271)
Reimbursement of exploration on behalf of farm-in partner
received
1,540,933
1,531,461
Payments to suppliers and employees
(1,142,911)
(1,614,991)
Net cash used in operating activities
23
(556,689)
(1,231,834)
Cash flows from investing activities
Payments for exploration expenditure
(3,353,403)
(3,157,246)
Purchase of property, plant & equipment
(3,103)
-
Purchase of tenements
(100,000)
-
Proceeds from partial sale of tenements
-
4,000,000
Receipt of research and development grant
933,755
1,257,932
Security bonds paid
-
(102,000)
Farm-in fee received
100,000
-
Sale of investments
4,390
-
Net cash calls received on behalf of farm-in partners
110,000
-
Government exploration grants received
300,000
-
Net cash provided by / (used in) investing activities
(2,008,361)
1,998,686
Cash flows from financing activities
Proceeds from issue of share capital
-
220,000
Transaction costs from issue of shares and options
(811)
(3,761)
Lease payments made
(103,357)
(111,619)
Net cash from financing activities
(104,168)
104,620
Net increase / (decrease) in cash and cash equivalents
(2,669,218)
871,472
Cash and cash equivalents at beginning of year
5,228,612
4,357,140
Cash and cash equivalents at end of year
10
2,559,394
5,228,612
ԅ The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
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Notes to The Consolidated Financial
Statements
1. Reporting Entity
Hammer Metals Limited (the “Company”) is a company domiciled in Australia. The Company’s registered office is Suite 2, Level 2,
41 Colin Street West Perth, Western Australia. The consolidated financial statements of the Company for the financial year ended
30 June 2025 comprises the Company and its subsidiaries (together referred to as the “Group”).
The Group is a for profit entity and is primarily involved in the exploration and extraction of mineral resources.
2. Basis Of Preparation
(a) Statement of compliance
The consolidated financial statements are general purpose financial statements which have been prepared in accordance with
Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations
Act 2001. The consolidated financial statements also comply with International Financial Reporting Standards (IFRS’s) adopted
by the International Accounting Standards Board (IASB).
The consolidated financial report was authorised for issue by the Directors on 30 September 2025.
(b) Basis of measurement
The financial report is prepared on the historical cost basis except for share based payments and other financial assets which
are measured at their fair value.
(c) Functional and presentation currency
The financial report is presented in Australian dollars which is the functional and presentation currency of the Company and its
subsidiaries.
(d) Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in note 26.
(e) Use of estimates and judgements
Set out below is information about:
→
critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements; and
→
assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next
financial year.
Critical judgements
i. Going concern
A key assumption underlying the preparation of the financial statements is that the Group will continue as a going concern.
An entity is a going concern when it is considered to be able to pay its debts as and when they are due, and to continue
in operation without any intention or necessity to liquidate or otherwise wind up its operations.
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Estimates and assumptions
ii. Ore Reserves and Mineral Resources
Economically recoverable reserves represent the estimated quantity of product in an area of interest that can be expected
to be profitably extracted, processed and sold under current and foreseeable economic conditions. The Group determines
and reports ore reserves and mineral resources under the standards incorporated in the Australasian Code for Reporting
Exploration Results, Mineral Resources and Ore Reserves, 2012 edition (the JORC Code). The determination of ore reserves
or mineral resources includes estimates and assumptions about a range of geological, technical and economic factors,
including: quantities, grades, production techniques, recovery rates, production costs, transport costs, commodity demand,
commodity prices and exchange rates. Changes in ore reserves and mineral resources impact the assessment
of recoverability of exploration and evaluation assets, provisions for site restoration and the recognition of deferred tax
assets, including tax losses.
iii. Exploration and evaluation assets
Determining the recoverability of exploration and evaluation expenditure capitalised in accordance with the Group’s
accounting policy (refer note 3(l)), requires estimates and assumptions as to future events and circumstances, in particular,
whether successful development and commercial exploitation, or alternatively sale, of the respective areas of interest will
be achieved. Critical to this assessment is estimates and assumptions as to ore reserves (refer note 2(e)(ii)), the timing
of expected cash flows, exchange rates, commodity prices and future capital requirements. Changes in these estimates
and assumptions as new information about the presence or recoverability of an ore reserve becomes available, may impact
the assessment of the recoverable amount of exploration and evaluation assets. If, after having capitalised the expenditure
under accounting policy 3(l), a judgement is made that recovery of the expenditure is unlikely, an impairment loss
is recorded in the statement of profit and loss and other comprehensive income in accordance with accounting policy 3(e).
The carrying amounts of exploration and evaluation assets are set out in note 14.
i.v Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes
model considering the terms and conditions upon which the instruments were granted. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets
and liabilities within the next annual reporting period but may impact profit or loss and equity. Refer to note 20 for further
information.
(f) Adoption of new and revised standards
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
(g) Going concern
The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities and
the realisation of assets and the settlement of liabilities in the ordinary course of business. The Directors believe that the Group
will have sufficient working capital to meet its minimum project development and administrative expenses in the next twelve
months following the date of signing of the financial report.
For the year ended 30 June 2025, the Group has incurred a loss before tax of $2,923,316 and net cash outflows from
operating and investing activities of $2,565,050. As at 30 June 2025 the Group had $2,559,394 in cash and cash equivalents
and an excess of working capital of $1,740,556. Subsequent to year-end, the Group has sold 6,366,001 of the shares it holds
in Carnaby Resources Limited, raising approximately $1.9 million.
Whilst not immediately required, the Group may need to raise additional funds to meet its planned and budgeted exploration
expenditure as well as regular corporate overheads.
The Group’s capacity to raise additional funds will be impacted by the success of the ongoing exploration activities and market
conditions. Additional sources of funding available to the Group include; capital raising via preferential issues to existing
shareholders, placements to new and existing investors or the realisation of the value of the Group’s investments. If necessary,
the Group can delay exploration expenditure and the directors can also institute cost saving measures to further reduce
corporate and administrative costs.
However, should the above planned activities to raise or conserve capital not be successful, there exists a material uncertainty
which may cast significant doubt surrounding the Group’s ability to continue as a going concern and, therefore, its ability to
realise its assets and dispose of its liabilities in the ordinary course of business and at the amounts stated in the financial report.
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3. Statement Of Material Accounting Policies
The Group has consistently applied the accounting policies set out in note 3 to all periods presented in these consolidated financial
statements.
(a) Basis of consolidation
i. Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it 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 over the
entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which
control commences until the date on which control ceases.
ii. Investments in associates
Associates are those entities in which the Group has significant influence, but not control or joint control, over the financial
and operating policies. Significant influence is presumed to exist when the Group holds between 20 percent and 50 percent
of the voting power of another entity.
Investments in associates are accounted for using the equity method and are recognised initially at cost. The cost of the
investments includes transaction costs. The consolidated financial statements include the Group’s share of the profit or loss
and other comprehensive income of equity accounted investees, after adjustments to align the accounting policies with
those of the Group, from the date that significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of the
investment, including any long-term interest that form part thereof, is reduced to zero, and the recognition of further losses
is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.
iii. Joint arrangements
The Group classifies its interests in joint arrangements as either joint operations or joint ventures depending on the Group’s
rights to the assets and obligation for the liabilities of the arrangements. When making this assessment, the Group considers
the structure of the arrangements, the legal form of any separate vehicles, the contractual terms of the arrangements and
other facts and circumstances.
iv. Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions,
are eliminated in preparing the consolidated financial statements.
(b) Plant and equipment
Items of plant and equipment are stated at cost less accumulated depreciation (see below) and impairment losses (see accounting
policy 3(f)). Depreciation is charged to the statement of profit and loss and other comprehensive income on a straight-line basis
over their estimated useful lives. The estimated useful lives in the current and comparative periods are as follows:
→
Office equipment:
3 to 4 years
→
Plant and equipmen:t
3 to 5 years
The residual value, if significant, is reassessed annually.
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(c) Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
financial instrument. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset
expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price
in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).
For the purpose of subsequent measurement, financial assets, are classified into the following categories:
→
amortised cost
→
fair value through profit or loss (FVTPL)
The classification is determined by both:
→
the entity’s business model for managing the financial asset.
→
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs,
finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
→
they are held within a business model whose objective is to hold the financial assets to collect its contractual cash flows.
→
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are
categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose contractual cash
flows are not solely payments of principal and interest are accounted for at FVTPL.
The category also contains an equity investment. The Group accounts for the investment at FVTPL and did not make
the irrevocable election to account for the investment in unlisted and listed equity securities at fair value through other
comprehensive income (FVOCI). The fair value was determined in line with the requirements of AASB 9, which does not allow
for measurement at cost. Assets in this category are measured at fair value with gains or losses recognised in profit or loss.
The fair values of financial assets in this category are determined by reference to active market transactions or using a valuation
technique where no active market exists.
Trade and other receivables and contract assets
The Group makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and
records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows,
considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its
historical experience, external indicators and forward-looking information to calculate the expected credit losses using
a provision matrix.
The Group assess impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they
have been grouped based on the days past due.
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group
designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit
or loss (other than derivative financial instruments that are designated and effective as hedging instruments).
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All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are
included within finance costs or finance income.
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less. Bank
overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component
of cash and cash equivalents for the purpose of the statement of cash flows.
(e) Impairment
The Group assesses at each balance date whether a financial asset or group of financial assets is impaired.
Financial assets at amortised cost
Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are held
to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and
interest are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for amortised
cost are measured at fair value through profit or loss.
The group assesses on a forward-looking basis, the expected credit losses associated with its debt instruments carried at
amortised cost. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since
initial recognition of the respective financial instrument. The Group always recognises the lifetime expected credit loss for trade
receivables carried at amortised cost.
The expected credit losses on these financial assets are estimated based on the Group’s historic credit loss experience,
adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well
as forecast conditions at the reporting date.
For all other receivables measured at amortised cost, the Group recognises lifetime expected credit losses when there has
been a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased
significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal
to expected credit losses within the next 12 months.
The Group considers an event of default has occurred when a financial asset is more than 90 days past due or external
sources indicate that the debtor is unlikely to pay its creditors, including the Group. A financial asset is credit impaired when
there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a default or past due
event has occurred. The Group writes off a financial asset when there is information indicating the counterparty is in severe
financial difficulty and there is no realistic prospect of recovery.
Non-financial assets
The carrying amounts of the Company’s non-financial assets, other than deferred tax assets (see accounting policy 3(k))
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists,
then the asset’s recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not
yet available for use, the recoverable amount is estimated each year at the same time.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. 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.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-
generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing, is allocated to cash-
generating units that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of cash-generating units are
allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount
of the other assets in the unit (group of units) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior
periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment
loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss
is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortisation, if no impairment loss had been recognised.
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(f) Share capital
Ordinary shares
Transaction costs of an equity transaction are accounted for as a deduction from equity, net of any related income tax benefit.
(g) Interest bearing borrowings
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised
in the statement of profit and loss and other comprehensive income over the period of the borrowings on an effective interest basis.
(h) Employee benefits
Defined contribution plans
Obligations for contributions to defined contribution pension plans are recognised as an expense in the statement of profit and
loss and other comprehensive income as incurred.
Share based payment transactions
The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognised
as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an
expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are
expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service
and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the
grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences
between expected and actual outcome.
Wages, salaries, annual leave, sick leave and non-monetary benefits
Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present obligations resulting from
employees’ services provided to reporting date, calculated at undiscounted amounts based on remuneration wage and salary
rates that the Group expects to pay as at reporting date including related on-costs, such as, workers compensation insurance
and payroll tax.
(i) Finance income and expenses
Net finance income
Net finance income comprises interest payable on borrowings calculated using the effective interest method, interest receivable
on funds invested and realised foreign exchange gains and losses. Interest income is recognised in the statement of profit and
loss and other comprehensive income as it accrues, using the effective interest method.
(j) Income tax
Income tax on the statement of profit and loss and other comprehensive income for the periods presented comprises current and
deferred tax. Income tax is recognised in the statement of profit and loss and other comprehensive income except to the extent that
it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the
balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
The following temporary differences are not provided for: the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss and differences relating to investments in
subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based
on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or
substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
The Company and its Australian resident wholly owned subsidiaries adopted the tax consolidation legislation with effect from 1 July
2014 and are therefore taxed as a single entity from that date. Hammer Metals Ltd is the head entity within the tax-consolidated group.
Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the subsidiaries are assumed by the
head entity in the tax-consolidated group.
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(k) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors of the Company.
(l) Exploration and evaluation expenditure
Exploration for and evaluation of mineral resources is the search for mineral resources after the Group has obtained legal rights
to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral
resources. Accordingly, exploration and evaluation expenditures are those expenditures incurred by the Group in connection with
the exploration for and evaluation of minerals resources before the technical feasibility and commercial viability of extracting mineral
resources are demonstrable.
Accounting for exploration and evaluation expenditure is assessed separately for each area of interest. An area of interest is an
individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit or has
been proved to contain such a deposit.
Expenditure incurred on activities that precede exploration and evaluation of mineral resources, including all expenditure incurred prior
to securing legal rights to explore an area, is expensed as incurred.
For each area of interest, the expenditure is recognised as an exploration and evaluation asset where the following conditions
are satisfied:
(a) The rights to tenure of the area of interest are current; and
(b) At least one of the following conditions is also met:
(i) The expenditure is expected to be recouped through successful development and commercial exploitation of an area
of interest, or alternatively by its sale; and
(ii) Exploration and evaluation activities in the area of interest have not, at reporting date, reached a stage which permits
a reasonable assessment of the existence or otherwise ‘economically recoverable reserves’ and active and significant
operations in, or in relation to, the area of interest are continuing. Economically recoverable reserves are the estimated
quantity of product in an area of interest that can be expected to be profitably extracted, processed and sold under current
and foreseeable conditions.
Exploration and evaluation assets include
→
Acquisition of rights to explore;
→
Topographical, geological, geochemical and geophysical studies;
→
Exploratory drilling, trenching, and sampling and
→
Activities in relation to evaluating the technical feasibility and commercial viability of extracting the mineral resource.
General and administrative costs are allocated to, and included in, the cost of exploration and evaluation assets only to the
extent that those costs can be related directly to the operational activities in the area of interest to which the exploration and
evaluation assets relate. In all other instances, these costs are expensed as incurred.
Exploration and evaluation assets are transferred to Development Assets once technical feasibility and commercial viability
of an area of interest is demonstrable. Exploration and evaluation assets are assessed for impairment, and any impairment loss
is recognised prior to being reclassified.
The carrying amount of the exploration and evaluation assets is dependent on successful development and commercial
exploitation, or alternatively, sale of the respective area of interest.
Impairment testing of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and
commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:
→
The term of exploration licence in the specific area of interest has expired during the reporting period or will expire
in the near future, and is not expected to be renewed;
→
Substantive expenditure on further exploitation for and evaluation of mineral resources in the specific area are not
budgeted or planned;
→
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially
viable quantities of mineral resources and the decision was made to discontinue such activities in the specified are; or
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→
Sufficient data exists to indicate that, although a development in the specific area is likely to proceed, the carrying amount
of the exploration and evaluation asset is unlikely to be recovered in full from successful development of by sale.
Where a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger than
the area of interest. The Group performs impairment testing in accordance with accounting policy 3(e).
Farm-in arrangements (in the exploration and evaluation phase)
For exploration and evaluation asset acquisitions (farm-in arrangements) in which the Group has made arrangements
to fund a portion of the selling partner’s (farmor’s) exploration and/or future development expenditures (carried interests),
these expenditures are reflected in the financial statements as and when the exploration work progresses.
Farm-out arrangements (in the exploration and evaluation phase)
The Group does not record any expenditure made by the farmee on its account. It also does not recognise any gain or loss
on its exploration and evaluation farm-out arrangements but redesignates any costs previously capitalised in relation to the
whole interest as relating to the partial interest retained.
Monies received pursuant to farm-in agreements are treated as a liability (advanced cash call) on receipt and until such time
as the relevant expenditure is incurred.
4. Other Income
30 June 2025
30 June 2024
$
$
Management fee from farm-in partners
169,310
166,843
Other income
58,010
10,219
Total other income
227,320
177,062
Partial sale of tenement to Carnaby Resources Limited (ASX:CNB)
Proceeds received – cash
-
4,000,000
Proceeds received – shares (9,090,090 ordinary shares in CNB)
-
5,000,000
Total income from sale of tenement
-
9,000,000
Total income
-
9,177,062
5. Result From Operating Activities
30 June 2025
30 June 2024
$
$
Net loss for the year before tax has been arrived at after the charging
the following expenses:
Depreciation of plant and equipment
973
976
Amortisation of right-of-use assets
91,332
96,953
Total depreciation and amortisation
92,305
97,929
Salary and wages
236,383
227,420
Superannuation expense
23,118
22,134
Share based payments
344,480
339,357
Other employee expenses
-
150
Total employee costs
603,981
589,061
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6. Finance Income and Finance Costs
30 June 2025
30 June 2024
$
$
Recognised in loss for the year:
Interest income
150,939
99,097
Finance costs / lease interest expense
(12,021)
(12,010)
Net finance income
138,918
87,087
7. Auditors’ Remuneration
30 June 2025
30 June 2024
$
$
Auditors of the Company – PKF
Audit services:
Audit and review of financial reports
40,000
37,500
40,000
37,500
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8. Income Tax
30 June 2025
30 June 2024
$
$
(a) Income tax benefit
Current tax
-
-
Deferred tax
-
-
Total income tax benefit
-
-
Numerical reconciliation of income tax benefit to pre-tax accounting profit / (loss):
Profit / (loss) before income tax
(2,923,316)
6,270,584
Income tax expenses / (benefit) using the Company’s domestic tax rate of 25%
(2024: 25%)
(730,829)
1,567,646
Adjusted for:
(Non-deductible expenses) / Non-Assessable Income
87,004
(85,891)
Over provision in respect of prior years
(1,542,863)
-
Temporary differences and tax losses not recognised
2,186,688
(1,481,755)
Income tax benefit
-
-
(b) Unrecognised deferred tax assets / liabilities
Deferred tax assets / liabilities have not been recognised in respect of the
following items:
Temporary timing differences related to:
Property, plant and equipment
(1,284)
1,269
Exploration and evaluation expenditure
(5,944,819)
(6,635,030)
Investments
667,386
(792,096)
Right-of-use assets
(35,342)
-
Accrued expenses and provisions
46,430
29,834
Lease liabilities
35,322
-
Capital raising costs
21,397
46,670
Capital losses
23,450
23,450
Income tax losses
10,785,894
10,504,007
5,598,434
3,178,104
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets have not been
recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group
can utilise the benefits from.
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9. Gain/(Loss) Per Share
30 June 2025
30 June 2024
$
$
(a) Basic (loss) / gain per share calculated using the weighted average number
of fully paid ordinary shares on issue at the reporting date.
(0.33)
0.71 cents
Dilutive (loss) / gain per share calculated using the weighted average number
of fully paid ordinary shares on issue at the reporting date.
(0.33)
0.71 cents
(b) Weighted average number of shares used in calculation of basic earnings
per share
887,314,420
886,037,586
(b) Weighted average number of shares used in calculation of dilutive earnings
per share
887,314,420
888,037,586
10. Cash and Cash Equivalents
30 June 2025
30 June 2024
$
$
Cash at bank and on hand
2,559,394
5,228,612
ԅ The Group’s exposure to interest rate risk and sensitivity analysis for financial assets and financial liabilities are disclosed in Note 25.
11. Trade and Other Receivables
30 June 2025
30 June 2024
$
$
Current
GST receivable
5,594
35,421
Security deposit
23,956
119,392
Other receivables
116,264
17,414
145,815
172,227
ԅ Trade and other receivables are non-interest bearing.
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12. Other Financial Assets
30 June 2025
30 June 2024
$
$
Non - Current
Investments in other entities
Listed shares in TSXV and ASX-listed companies - at fair value
3,633,385
4,615,933
Movements in other financial assets for the period:
Opening balance at the beginning of the period
4,615,933
227,529
Additions –
CNB shares received as part consideration for sale of tenement
-
5,000,000
Sale of investments
(4,390)
-
Fair value adjustment on financial assets
(978,158)
(611,596)
Closing balance at the end of the period
3,633,395
4,615,933
ԅ The Group’s exposure to equity price risk and sensitivity analysis in disclosed in Note 25. Listed shares recognised as
non-current assets have been recognised at fair value through profit or loss (“FVTPL”).
13. Right-Of-Use Assets
30 June 2025
30 June 2024
$
$
Right-of-use assets
361,092
443,238
Less: accumulated depreciation
(219,724)
(265,575)
Total right-of-use assets
141,368
177,663
Movements in right-of-use assets for the period:
Opening balance at the beginning of the period
177,663
162,012
Additions for the period
91,055
112,604
Depreciation and amortisation
(91,332)
(96,953)
Disposals
(36,018)
-
Closing balance at the end of the period
141,368
177,663
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14. Exploration and Evaluation Expenditure
30 June 2025
30 June 2024
$
$
Balance at 1 July
26,540,119
24,678,290
Exploration and evaluation expenditure incurred
3,452,163
3,719,371
Tenements acquired (a)
150,000
-
Exploration grants received
(300,000)
-
Exploration written-off (b)
(907,190)
(599,610)
Farm-in fee received (c)
(100,000)
-
Research and development grant received
(933,755)
(1,257,932)
Balance at 30 June
27,901,337
26,540,119
ԅ (a) During the current financial year, the Group acquired an interest in the Lady Jenny prospect through the payment of $100,000
cash and the issue of 1,351,351 shares. The Group has determined that, due to the nature of the asset acquired, it cannot
obtain a reliable estimate of the fair value of the interest acquired and therefore, has measured the value of the interest
acquired indirectly by reference to the fair value of the cash paid and the shares issued, being $0.037 per share, or $50,000.
ԅ (b) During the current financial year, the Group has written off exploration expenditure relating to tenements that have
been relinquished.
ԅ (c) The Group received a farm-in fee related to the initial establishment of the Bullrush Joint Venture. Refer Note 22.
During the comparative period, the Group wrote-off exploration expenditure relating to its Mt. Frosty joint venture,
as a result of the Group no longer meeting the requirements for carrying the expenditure forward. The Group maintains
that this project retains significant value, however the Group has adopted a conservative approach in accordance with
the accounting standards in this instance.
The ultimate recovery of costs carried forward for exploration and evaluation phases is dependent on the successful
development and commercial exploitation or sale of the respective areas of interest at an amount greater than or equal
to carrying value. Refer note 3 (l).
Expenses capitalised to Exploration and Evaluation Expenditure assets for the year include direct exploration costs
(drilling, rock chip programs and geophysical surveys), laboratory costs (assaying, analysis and review), geological
and geochemical consultants as well as allocated administration costs (including salary and wages) where those costs
can be directly attributed to the exploration or evaluation activities upon a given area of interest.
15. Trade and Other Payables
30 June 2025
30 June 2024
$
$
Trade payables and accruals
740,140
556,245
Employee leave accruals
135,358
104,432
875,498
660,677
ԅ All trade and other payables are non-interest bearing and payable on normal commercial terms.
ԅ The Group’s exposure to currency and liquidity risk related to trade and other payables is disclosed in Note 25.
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16. Lease Liabilities
30 June 2025
30 June 2024
$
$
Current lease liabilities
89,155
108,892
Non-current lease liabilities
52,134
68,696
141,289
177,588
ԅ The nature of the Group’s leasing activities includes office leases and the lease of motor vehicles.
17. Issued Capital
30 June 2025
30 June 2025
30 June 2024
30 June 2024
No.
$
No.
$
(a) Share capital
Ordinary shares
On issue at 1 July
886,407,349
66,810,197
879,740,682
66,593,958
Shares issued for cash at $0.06 per share
3,666,667
220,000
Funds for unlisted options – unexercised1
3,000,000
-
Issue of shares to acquire tenements
1,351,351
50,000
Share issue costs
-
(811)
-
(3,761)
On issue at 30 June – fully paid
887,758,700
66,859,386
886,407,349
66,810,197
ԅ 1 – During the year ended 30 June 2023 the Company received a valid exercise notice for 3,000,000 unquoted options exercisable
at $0.035 each on or before 30 June 2024, however the exercise of these options and the issue of shares was only completed
on 6 July 2023, and therefore the issue of shares and receipt of funds were recorded across the two financial years.
ԅ Terms and conditions
Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share
at shareholders’ meetings.
The company does not have authorised capital or par value in respect of its issued shares.
In the event of winding up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled
to any proceeds of liquidation.
ԅ Dividends
No dividends were paid or declared for the year (2024: Nil).
30 June 2025
30 June 2024
No.
No.
(b) Options outstanding over ordinary shares
Unlisted options (Share-based payment reserve)
Unlisted options exercisable at $0.05 expiring 30 Jun 2024
-
2,600,000
Unlisted options exercisable at $0.05 expiring 30 Nov 2024
-
4,500,000
Unlisted options exercisable at $0.04 expiring 13 May 2024
-
2,000,000
Unlisted options exercisable at $0.07 expiring 30 Nov 2026
4,500,000
4,500,000
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Unlisted options exercisable at $0.08 expiring 30 Nov 2026
5,500,000
5,500,000
Unlisted options exercisable at $0.08 expiring 30 Nov 2026
– Management Tranche 1
2,000,000
2,000,000
Unlisted options exercisable at $0.08 expiring 30 Nov 2026
– Management Tranche 2
2,000,000
2,000,000
Employee Incentive Options - exercisable at $0.06 expiring 25 Oct 2028
7,000,000
-
Related Party Options
– Tranche 1 - exercisable at $0.07 expiring 2 December 2028
2,000,000
-
Related Party Options
– Tranche 2 - exercisable at $0.08 expiring 2 December 2028
1,500,000
-
24,500,000
23,100,000
ԅ 10,500,000 unlisted options were granted to directors, executives, and employees during the year (2024: 9,500,000). Refer to Note 20.
ԅ No unlisted options were exercised during the year (2024: 3,000,000).
ԅ No unlisted options were granted to consultants during the year (2024: Nil).
ԅ 9,100,000 fully vested unlisted options expired unexercised during the period (2024: Nil).
ԅ Options carry no voting rights until converted to fully paid ordinary shares. All unlisted options were granted for no cash consideration.
30 June 2025
30 June 2024
No.
No.
(c) Performance rights outstanding
Performance rights (Share-based payment reserve)
Managing Director Performance Rights – Tranche 6
-
1,000,000
Managing Director Performance Rights – Tranche 7
-
1,000,000
Managing Director Performance Rights – Tranche 8
-
1,000,000
Management Performance Rights – Tranche 1A
500,000
500,000
Management Performance Rights – Tranche 1B
500,000
500,000
Management Performance Rights – Tranche 2A
500,000
500,000
Management Performance Rights – Tranche 2B
500,000
500,000
Management Performance Rights – Tranche 3
7,000,000
7,000,000
Employee Incentive 2024 Performance Rights – Tranche 1
500,000
-
Employee Incentive 2024 Performance Rights – Tranche 2
500,000
-
Employee Incentive 2024 Performance Rights – Tranche 3
500,000
-
Related Party Performance Rights – Tranche 1
1,000,000
-
Related Party Performance Rights – Tranche 2
1,000,000
-
Related Party Performance Rights – Tranche 3
1,000,000
-
13,500,000
12,000,000
ԅ The following performance rights were granted during the current financial year (refer note 20).
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Number of Rights
Vesting Date
Vesting Condition
Expiry Date
Employee Incentive 2024 Performance Rights
Tranche 1
500,000
Refer below
Refer below
25/10/2027
Tranche 2
500,000
Refer below
Refer below
25/10/2027
Tranche 3
500,000
Refer below
Refer below
25/10/2027
Related Party Performance Rights
Tranche 1
1,000,000
1,000,000
Refer below
15/11/2027
Tranche 2
1,000,000
1,000,000
Refer below
15/11/2027
Tranche 3
1,000,000
1,000,000
Refer below
15/11/2027
ԅ All performance rights require the recipient to remain employed until vesting date. Each tranche of Employee Incentive and
Related Party performance rights contains the same vesting conditions as follows:
•
Tranche 1 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral resource estimate
of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board;
•
Tranche 2 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral resource estimate
of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board; and
•
Tranche 3 performance rights vest upon the Company announcing a new JORC 2012 compliant mineral resource estimate
of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
ԅ The following performance rights were granted during the previous financial year (refer note 20):
Number of rights
Vesting Date
Vesting Condition
Expiry Date
Management Performance Rights
Tranche 1A
500,000
15/12/2024
Refer below
15/12/2027
Tranche 1B
500,000
15/12/2024
Refer below
15/12/2027
Tranche 2A
500,000
15/12/2025
Refer below
15/12/2027
Tranche 2B
500,000
15/12/2025
Refer below
15/12/2027
Tranche 3
7,000,000
N/A
Refer below
15/12/2027
ԅ All performance rights require the recipient to remain employed until vesting date. The tranches outstanding at balance date
contain the following vesting conditions:
•
Tranche 1A Management Performance Rights vest upon the continuous service for a period of 12 months from the date of issue;
•
Tranche 1B Management Performance Rights vest upon the continuous service for a period of 12 months from the date
of issue and the share price of the Company’s shares listed on the ASX achieving a premium of 50% over the 15-day VWAP
prior to the issue date, or $0.078;
•
Tranche 2A Management Performance Rights vest upon the continuous service for a period of 24 months from the date of issue;
•
Tranche 2B Management Performance Rights vest upon the continuous service for a period of 24 months from the date
of issue and the share price of the Company’s shares listed on the ASX achieving a premium of 100% over the 15-day VWAP
prior to the issue date, or $0.104; and
•
Tranche 3 Management Performance Rights vest upon the completion (to the Board’s satisfaction) of a material transaction
to the value of a minimum of 30% of the Company’s market capitalisation, determined based on the 30-day VWAP immediately
prior to the completion or announcement of the transaction.
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18. Reserves
30 June 2025
30 June 2024
No.
No.
Share-based payment reserve (1)
Balance at beginning of period
787,618
1,382,293
Options issued to Employees, Directors and executives
159,000
195,680
Performance rights issued to Employees
14,430
-
Performance rights issued to Managing Director
26,178
99,596
Expiry of options
(251,350)
(75,440)
Lapse of performance rights
(132,000)
-
Reversal of previously recognised value relating to historic options which expired in
previous financial periods
-
(858,592)
Further vesting expense of options and rights issued in previous periods
144,872
44,081
748,748
787,618
ԅ (1) The share-based payment reserve is used to record the fair value of options and rights issued to Directors and employees
and consultants under various share-based payment schemes and options issued for the acquisition of assets.
19. Commitments
a) Exploration Expenditure Commitments
In order to maintain current rights of tenure to exploration tenements the Company is required to perform minimum exploration work
to meet the minimum expenditure requirements specified by various State Governments within Australia. These obligations may be
reset when application for a mining lease is made and at other times. As a result, exploration expenditure commitments beyond twelve
months cannot be reliably determined.
The Group has a minimum expenditure commitment on tenure under its control.
The Group can apply for exemption from compliance with the minimum exploration expenditure requirements.
These obligations are not provided for in the financial report and are payable:
Consolidated
Company
30 June 2025
30 June 2024
30 June 2025
30 June
2024
$
$
$
$
Annual minimum exploration expenditure
4,208,207
4,197,111
-
-
The annual minimum exploration expenditure commitments disclosed above includes $2,141,130 which falls under tenements related
to the farm-in arrangements as set out in note 22. These commitments, while ultimately the responsibility of the Group, are expected
to be met either partially or in-full by the other partner, based on their earn-in interest.
The relevant commitment for each project with a farm-in arrangement are as follows:
→
Mt Frosty Joint Venture - $172,000
→
Mount Isa East Joint Venture - $1,815,530
→
Isa Valley Joint Venture - $101,800
→
Bullrush Joint Venture - $51,800
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20. Share Based Payments
Employee Incentive Plan
The Hammer Metals Employee Incentive Plan was approved by shareholders on 17 November 2023. The key features of this plan are:
(a) The plan will be available to directors, employees and other permitted persons of the Company and its subsidiaries.
(b) Performance Rights or Options are granted for no consideration.
(c) Where options are issued an exercise price will be determined by the Board from time to time.
(d) The number of shares the subject of Performance Rights or Options issued under this plan and other similar plans will not exceed
5% of the Company’s issued capital from time to time.
(e) If a holder ceases to be an eligible participant of the plan during the exercise period of a vested Performance Right or Option,
the holder may exercise the options within 30 days of ceasing to be an eligible participant and thereafter the options will lapse.
(f) The Performance Rights or Options issued under this plan shall not be quoted on ASX.
(g) The Performance Rights or Options’ terms are at the discretion of the Directors.
Options
The number and weighted average exercise price of unlisted share options on issue is as follows:
30 June 2025
30 June 2024
No of Unlisted
Options
Weighted Average
Exercise Price
No of Unlisted
Options
Weighted Average
Exercise Price
Outstanding at 1 July
23,100,000
$0.065
23,600,000
$0.053
Granted during the period
10,500,000
$0.065
9,500,000
$0.08
Exercised during the period
-
-
(3,000,000)
$0.035
Expired / lapsed during the period
9,100,000
$0.048
(7,000,000)
$0.056
Outstanding at 30 June
24,500,000
$0.072
23,100,000
$0.065
Exercisable at 30 June
24,500,000
21,100,000
ԅ The options outstanding at year end have exercise prices ranging from $0.06 to $0.08 and a weighted average remaining
contractual life of 2.25 year.
Options Granted During Current Financial Year
The following options were granted during the year.
Number of
Options
Granted
Date Granted
%
Vested
%
Forfeited
/ Lapsed
Financial Year
in Which Grant
Vested / Will Vest
Key Management Personnel
Related Party Options –
Tranche 1 – Russell Davis
1,000,000
15 November 2024
100%
-
-
Related Party Options –
Tranche 2 – Russell Davis
1,500,000
15 November 2024
100%
-
-
Related Party Options –
Tranche 1 – David Church
1,000,000
15 November 2024
100%
-
-
Other Employees
Employee Incentive Options
7,000,000
28 October 2024
100%
-
-
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The fair value of the options issued during the year to Key Management Personnel was determined by reference to the Black-Scholes
option pricing model. The key inputs and valuations are summarised as follows:
Related Party
Options – Tranche 1
Related Party
Options – Tranche 2
Employee Incentive
Options
Underlying security spot price
on grant date
$0.035
$0.035
$0.034
Exercise price
$0.07
$0.08
$0.06
Grant date
15/11/2024
15/11/2024
28/10/2024
Expiration date
2/12/2028
2/12/2028
25/10/2028
Vesting date
Immediate
Immediate
Immediate
Life (years)
4
4
4
Volatility
75%
75%
75%
Risk free rate
4.214%
4.214%
4.025%
Dividend Yield
Nil
Nil
Nil
Number of options
2,000,000
1,500,000
7,000,000
Valuation per option
$0.0151
$0.0140
$0.0154
Remaining life (years)
3.4
3.4
3.3
Total value
$30,200
$21,000
$107,800
Value recognised to date
$30,200
$21,000
$107,800
Value still to be recognised
-
-
-
Options Granted During Previous Financial Year
The following options were granted during the prior year.
Number of
Options
Granted
Date Granted
%
Vested
%
Forfeited
/ Lapsed
Financial Year
in Which Grant
Vested / Will Vest
Key Management Personnel
Daniel Thomas –
Management Options
Tranche 1
2,000,000
17 November 2023
100%
-
-
Daniel Thomas –
Management Options
Tranche 2
2,000,000
17 November 2023
100%
-
30 June 2025
David Church
1,500,000
17 November 2023
100%
-
-
James Croser
4,000,000
7 September 2023
100%
-
-
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The fair value of the options issued during the year to Directors was determined by reference to the Black-Scholes option pricing
model. The key inputs and valuations are summarised as follows:
Management – T1
Management – T2
D Church
J Croser
Underlying security spot price
on grant date
$0.05
$0.05
$0.05
$0.055
Exercise price
$0.08
$0.08
$0.08
$0.08
Grant date
17 November 2023
17 November 2023
17 November 2023
7 September 2023
Expiration date
30 November 2026
30 November 2026
30 November 2026
30 November 2026
Vesting date
Immediate
15 December 2025
Immediate
Immediate
Life (years)
3
3
3
3.25
Volatility
75%
75%
75%
75%
Risk free rate
4.172%
4.172%
4.172%
3.841%
Dividend Yield
-
-
-
-
Number of options
2,000,000
2,000,000
1,500,000
4,000,000
Valuation per option
$0.0199
$0.0199
$0.0199
$0.0258
Remaining life (years)
1.4
1.4
1.4
1.4
Total value
$39,200
$39,200
$29,850
$103,200
Value recognised to date
(at 30 June 2025)
$39,200
$39,200
$29,850
$103,200
Value still to be recognised
(at 30 June 2025)
-
-
-
-
Performance Rights
The number of performance rights on issue is as follows:
30 June 2025
30 June 2024
No.
No.
Outstanding at 1 July
12,000,000
8,000,000
Granted during the period
4,500,000
9,000,000
Exercised during the period
-
-
Expired / lapsed during the period
(3,000,000)
(5,000,000)
Outstanding at 30 June
13,500,000
12,000,000
Vested and exercisable at 30 June
-
-
Performance Rights granted during current financial year
The following performance rights, which all expire on 25 October 2027, were issued to Employees during the year:
(a) 500,000 Tranche 1 Employee Incentive 2024 Performance Rights will vest subject to the Company announcing a new JORC
2012 compliant mineral resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
(b) 500,000 Tranche 2 Employee Incentive 2024 Performance Rights will vest subject to the Company announcing a new JORC
2012 compliant mineral resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
(c) 500,000 Tranche 3 Employee Incentive 2024 Performance Rights will vest subject to the Company announcing a new JORC
2012 compliant mineral resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
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The fair value of the Employee Incentive 2024 Performance Rights issued during the year to Key Management Personnel was
determined by reference to the underlying security on the date of issue, being $0.034 each.
The following performance rights, which all expire on 15 November 2027, were issued to the Company’s Managing Director during
the year:
(d) 1,000,000 Tranche 1 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
(e) 1,000,000 Tranche 2 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
(f) 1,000,000 Tranche 3 Related Party Performance Rights will vest subject to the Company announcing a new JORC 2012
compliant mineral resource estimate of 200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
The fair value of the Related Party Performance Rights issued during the year to Key Management Personnel was determined
by reference to the underlying security on the date of issue, being $0.035 each.
Employee Incentive 2024
Performance Right
– All Tranches
Related Party Performance
Rights
– All Tranches
Underlying security spot price on grant date
$0.034
$0.035
Grant date
28 Oct 2024
15 Nov 2024
Expiration date
25 Oct 2027
15 Nov 2027
Vesting date (estimated)
25 Oct 2027
15 Nov 2027
Life (years)
3.0
3.0
Discount applied {a}
-
-
Number of rights
1,500,000
3,000,000
Value per right
$0.034
$0.035
Remaining life (years) {b}
2.3
2.4
Total value
$51,000
$105,000
Value recognised to date (as at 30 June 2025)
$14,431
$26,178
Value still to be recognised (as at 30 June 2025)
$36,569
$78,822
Performance Rights granted during previous financial year
The fair value of the Management Performance Rights issued during the year to Key Management Personnel was determined
by reference to the underlying security on the date of issue. With respect to Tranches 1A, 2A and 3, these fair values have not
been adjusted as there exist no market-based performance conditions attached to the rights. The key inputs and valuations are
summarised as follows:
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Management
Performance
Rights
– Tranche 1A
Management
Performance
Rights
– Tranche 2A
Management
Performance
Rights
– Tranche 3
Underlying security spot price on grant date
$0.052
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2025
15 Dec 2025
15 Dec 2027
Life (years)
4.1
4.1
4.1
Discount applied {a}
-
-
-
Number of rights
500,000
500,000
7,000,000
Value per right
$0.05
$0.05
$0.05
Remaining life (years) {b}
2.5
2.5
2.5
Total value
$26,000
$26,000
$364,000
Value recognised to date (as at 30 June 2025)
$14,914
$7,742
$55,248
Value still to be recognised (as at 30 June 2025)
$11,086
$18,258
$308,752
ԅ {a} – all the above three tranches of Management Performance Rights issued during the year contain no market-based vesting
conditions and therefore no discount has been applied.
ԅ {b} – the remaining life represents the time, in years, left until the expiry of the right.
With respect to Tranches 1B and 2B, the fair values of these rights have been adjusted to recognise the existence of market-based
performance conditions attached to the rights. This valuation has been determined by reference to a Monte Carlo Simulation model.
The key inputs and valuations are summarised as follows:
Management
Performance Rights -
Tranche 1B
Management
Performance Rights –
Tranche 2B
Underlying security spot price on grant date
$0.052
$0.052
Grant date
17 Nov 2023
17 Nov 2023
Expiration date
15 Dec 2027
15 Dec 2027
Vesting date (estimated)
15 Dec 2025
15 Dec 2025
Life (years)
4.1
4.1
Share price barrier
$0.0708
$0.104
Expected volatility
103%
103%
Risk-free rate
4.098%
4.098%
Expected dividend yield
-
-
Number of rights
500,000
500,000
Fair value per right
$0.0502
$0.049
Remaining life (years) {a}
3.5
3.5
Total value
$25,100
24,500
Value recognised to date (as at 30 June 2025)
$14,397
$7,295
Value still to be recognised (as at 30 June 2025)
$10,703
$17,205
ԅ {a} – the remaining life represents the time, in years, left until the expiry of the right.
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21. Related Parties
Key Management Personnel Compensation:
The following were key management personnel of the Group at any time during the reporting period and unless otherwise indicated
were key management personnel for the entire period:
Executive Directors
Mr D Thomas
Non-executive Directors
Mr R Davis
Mr D Church
Mr J Croser
Executives
Mr M Pitts (Company Secretary)
30 June 2025
30 June 2024
The Key Management Personnel Compensation Comprised:
$
$
Short-term employee benefits
543,882
517,869
Post-employment benefits
50,057
46,067
Share-based payments
243,546
351,054
837,485
914,990
Remuneration levels are competitively set to attract and retain appropriately qualified and experienced Directors and executives.
Remuneration packages include a mix of fixed remuneration and equity-based remuneration.
Information regarding individual Directors and executive’s compensation and some equity instruments disclosures as permitted
by Corporations Regulations 2M.3.03 and 2M.6.04 is provided in the remuneration report section of the Directors’ report.
Certain key management personnel, or their related parties, hold positions in other entities that result in them having control
or significant influence over the financial or operating policies of those entities. Some of these entities (as detailed below) transacted
with the Group during the reporting period.
The aggregate value of transactions and outstanding balances relating to this entity were as follows:
Transaction Value Year Ended
Balance Outstanding as at
Transaction
30 June 2025
$
30 June 2024
$
30 June 2025
$
30 June 2024
$
Mr Z Lubieniecki
Consulting Fees
-
3,000
-
-
Mr M Pitts
Accounting services
38,109
43,700
2,754
3,900
The Company paid fees to Zbigniew Lubieniecki as consulting fees for geological services provided.
The Company paid fees to Endeavour Corporate, a company associated with Mark Pitts, for accounting and financial reporting
services provided to the Group.
Mr Lubieniecki resigned on 7 September 2023.
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22. Interest In Other Entities
A - Subsidiaries
Name
Country of
Incorporation
Percentage Held
2025
Percentage Held
2024
Parent and ultimate controlling entity
Hammer Metals Limited
Subsidiaries
Hammer Metals Australia Pty Ltd
Australia
100%
100%
Mt. Dockerell Mining Pty Ltd
Australia
100%
100%
Mulga Minerals Pty Ltd
Australia
100%
100%
Carnegie Exploration Pty Ltd
Australia
100%
100%
Hammer Bulk Commodities Pty Ltd
Australia
100%
100%
Midas Metals Asia Pty Ltd (i)
Australia
85%
85%
ԅ (i) This subsidiary is dormant and has not traded during the year.
ԅ The investments held in controlled entities are included in the financial statements of the parent at cost.
B - Farm-in Arrangements
The Group has the following farm-in / farm-out arrangements:
Mt Frosty – Mt Isa Mines (Glencore)
During a previous financial year the Group (through its wholly owned subsidiary Mulga Minerals Pty Ltd (‘Mulga’)) completed the
acquisition of a 51% interest in the Mt. Frosty prospect and agreed terms for a new joint venture agreement with Mount Isa Mines
Limited (‘MIM’) (a 100% owned subsidiary of Glenore PLC).
Each party to the joint arrangement contributes exploration expenditure according to their participating interest (Hammer – 51% and
MIM – 49%). Dilution provisions apply if a party elects not to contribute to a programme. If a party’s participating interest falls below
10% their interest will convert to a 3% Net Profits Royalty. Mulga acts as the initial manager of the joint arrangement.
During the comparative financial year, the Group wrote-off exploration expenditure relating to its Mt. Frosty joint venture, as a result
of the Group no longer meeting the requirements for carrying the expenditure forward.
Mt Isa East – JOGMEC/SMMO
The Agreement with Japan Oil, Gas and Metals National Corporation (“JOGMEC“) was signed in November 2019 and covers sections
of the Even Steven, Mount Philp, Dronfield West and Malbon targets for a total area of approximately 290km2 of the 2,200km2 Mount
Isa Project. The arrangement is referred to as the Mount Isa East Joint Venture (“Mt Isa East JV” or “MIEJV”), however in accordance
with the Australian Accounting Standards is a farm-in arrangement by nature.
During the financial year ended 30 June 2023, JOGMEC and Sumitomo Metal Mining Oceania Pty Ltd. (“SMMO”) signed an
agreement whereby JOGMEC would transfer its position within the Mt Isa East JV to SMMO. The terms of the agreement remain
unchanged.
The agreement allowed for SMMO to achieve a 60% interest in the project areas by expending $6,000,000 by 31 March 2024 through
five stages (Farm-In Periods). During the prior year, SMMO completed its fifth stage of the Farm-In, and therefore earned the 60%
interest. The Agreement also allows for, subsequent to the completion of the Fifth Farm-in Period, each company to elect to contribute
its pro-rata share of future funding. If either party does not contribute and is diluted to an ownership of less than 10% of the Mt Isa East
JV, the Group’s equitable interest will convert to a 2% Net Smelter Return Royalty. At any time, the Net Smelter Royalty Return Rate
can be reduced to 1% via the payment of A$2,000,000.
The areas of interest subject to the Agreement are held by the Company’s subsidiaries Mt Dockerell Mining Pty Ltd and Mulga
Minerals Pty Ltd.
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Isa Valley Project – South32 Limited
On 27 May 2024, the Group announced a farm-in arrangement with South32 Limited (“South32”), whereby South32 can earn an 80%
interest in the Isa Valley Project as follows:
→
An initial commitment to earn 70% through the completion of a 900m drilling campaign within 18 months of entering into the
agreement (for an estimated cost of $150,000), and the expenditure of an additional $3 million within 3 years. South32 can
extend this earn-in period by up to 1 year by spending an additional $1 million (therefore, $4 million over 4 years).
→
Once South32 has earned the 70% interest, this can be increased to an 80% interest through the agreement to free-carry the
Group’s interest in the project through to a Pre-Feasibility Study.
South32 is responsible for managing and operating the exploration program.
Bullrush Project – Sumitomo Metal Mining Oceania Pty Ltd (“SMMO”)
On 27 June 2024, the Group announced a farm-in arrangement with SMMO whereby SMMO can earn an 80% interest in the Bullrush
Project as follows:
→
An initial commitment to earn 51% through the completion of a 2,000m drilling campaign within 12 months of entering into the
agreement, and the expenditure of an additional $4.5 million within 4 years.
→
An additional 9% interest (to 60% total) through the expenditure of $2 million in a further 2-year period.
Subsequently, the Group can maintain its 40% interest in the project by contributing its pro-rata share of exploration expenditure.
Should the Group elect to not contribute its share, SMMO can increase its interest from 60% to 80% by electing to free-carry the
Group’s interest in the project through to a Pre-Feasibility Study.
The Group will act as the manager an operator of the project until at least the end of the first earn-in period.
23. Reconciliation Of Cash Flows From Operating Activities
30 June 2025
30 June 2024
$
$
(Loss) / profit for the year
(2,923,316)
6,270,584
Adjustments for:
Depreciation and amortisation
92,305
97,929
Share based payments
344,480
339,357
Fair value adjustment on financial assets
978,158
611,596
Partial sale of tenements
-
(9,000,000)
Interest expenses
12,021
12,010
Exploration expenditure written-off
907,190
599,610
Movements attributable to operating activities:
Decrease / (increase) in trade and other receivables
(83,588)
182,422
Increase / (decrease) in trade and other payables
116,061
(345,342)
Net cash used in operating activities
(556,689)
(1,231,834)
24. Segment Information
The Group has three reportable segments, being mineral exploration in Queensland and Western Australia, and corporate activities.
The Group’s operating segments have been determined with reference to the monthly management accounts, program budgets and
cash flow forecasts used by the chief operating decision maker to make decisions regarding the Group’s operations and allocation
of working capital.
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Segment information
The following tables represent revenue and profit information and certain asset and liability information regarding geographical
segments for the year ended 30 June 2025.
Queensland
Exploration
Western Australia
Exploration
Corporate
Total
$
$
$
$
30 June 2025
Segment income
-
-
227,320
227,320
Segment profit / (loss)
before income tax
expense
(1,682,812)
(321)
(1,240,183)
(2,923,316)
Segment assets
20,022,661
7,878,676
6,485,098
34,386,435
Segment liabilities
(33,770)
(36,565)
(946,452)
(1,016,787)
30 June 2024
Segment income
-
-
177,062
177,062
Segment loss before
income tax expense
(2,911)
(310)
6,273,805
6,270,584
Segment assets
19,333,058
7,207,061
10,197,441
36,737,560
Segment liabilities
(2,545)
(8,153)
(827,567)
(838,265)
25. Financial Instruments Disclosures
Overview
The Group has exposure to the following risks from their use of financial instruments:
→
Credit risk
→
Liquidity risk
→
Market risk
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and processes
for measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Management
monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations and arises principally from the Group’s receivables from customers and investment securities.
Trade and Other Receivables
As the Company operates in the mining exploration sector it does not have significant trade receivables and is therefore not
exposed to credit risk in relation to trade receivables. The Group receives advanced cash calls from its farm-in / joint arrangement
partner which are classified as liabilities. The cash call amounts are reduced as and when expenditure in terms of the farm-in/ joint
arrangement agreement is incurred.
Presently, the Group undertakes exploration and evaluation activities in Australia. At the balance sheet date there were no significant
concentrations of credit risk.
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Exposure to Credit Risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to
credit risk at the reporting date was:
Carrying Amount
Note
30 June 2025
30 June 2024
$
$
Cash and cash equivalents
10
2,559,394
5,228,612
Trade and other receivables
11
145,815
172,227
Impairment Losses
None of the Group’s trade and other receivables are past due and impaired (2024: Nil).
Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due (refer Note 2(h)). The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows.
Typically, the Group ensures it has sufficient cash on demand to meet expected operational expenses for a period of 90 days, this
excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.
The expected settlement of the Group’s financial liabilities is as follows:
Consolidated
Carrying
Amount
Contractual
Cash-Flows
< 6
Months
6-12
Months
1-2 years
2-5 years
30 June 2025
Trade and Other Payables
875,498
875,498
875,498
-
-
-
Lease liabilities
141,289
151,333
45,840
44,420
37,977
23,096
1,016,787
1,026,831
921,338
44,420
37,977
23,096
30 June 2024
Trade and Other Payables
660,677
660,677
660,677
-
-
-
Lease liabilities
177,588
177,989
54,444
47,274
72,938
3,333
838,265
838,666
715,121
47,274
72,938
3,333
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return.
Currency Risk
The Group has no exposure to currency risk on investments and transactions that are denominated in a currency other than the
respective functional currencies of Group entities. The Group has not entered into any derivative financial instruments to hedge such
transactions and anticipated future receipts or payments that are denominated in a foreign currency.
Interest Rate Risk
The Group is not exposed to interest rate risk on borrowings as it has no borrowings subject to variable interest. The Group is exposed
to interest rate risk on its cash balances.
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Profile
At the reporting date the interest rate profile of the Company’s and the Group’s interest-bearing financial instruments was:
Carrying Amount
30 June 2025
30 June 2024
$
$
Fixed rate instruments
Cash and cash equivalents
24,358
23,264
Weighted average interest rates
3.20%
4.70%
Variable rate instruments
Cash and cash equivalents
2,535,037
5,205,348
Weighted average interest rates
3.28%
3.78%
Fair Value Sensitivity Analysis For Fixed Rate Instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss. Therefore, a change
in interest rates at the reporting date would not affect profit or loss or equity (2024: Nil)
Cash Flow Sensitivity Analysis For Variable Rate Instruments
A sensitivity of 50 basis points has been used and considered reasonable given current interest rates. A 0.5% movement in interest
rates at the reporting date would have increased equity and profit or loss by the amounts shown below. This analysis assumes that
all other variables remain constant. The analysis for 2024 was performed on the same basis.
Consolidated
Loss
Equity
50bp
50bp
50bp
50bp
Increase
Decrease
Increase
Decrease
30 June 2025
Variable rate instruments
$12,797
($12,797)
$12,797
($12,797)
30 June 2024
Variable rate instruments
$26,143
($26,143)
$26,143
($26,143)
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Carrying Amounts Versus Fair Values
The fair values of financial assets and liabilities materially equates to the carrying amounts shown in the statement of financial position.
30 June 2025
$
30 June 2024
$
Financial assets carried at fair value through profit or loss
Equity securities – listed on ASX and TSXV at quoted prices
3,633,385
4,615,933
Financial assets carried at amortised costs
Cash and cash equivalents
2,559,394
5,228,612
Trade and other receivables
145,815
172,227
Financial liabilities carried at amortised costs
Trade and other payables
(875,498)
(660,677)
Lease liabilities
(141,289)
(177,588)
There Are No Off-Balance Sheet Financial Asset And Liabilities At Year-End.
All financial assets and liabilities were denominated in Australian dollars during the years ended 30 June 2025 and 2024.
Fair Value Risk
The group uses three different methods in estimating the fair value of a financial investment. The methods comprise:
→
Level 1 – the fair value is calculated using quoted prices in active markets; and
→
Level 2 – the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices)
→
Level 3 – the fair value is estimated using inputs other than quoted prices.
Quoted market price represents the fair value determined based on quoted prices on active markets as at the reporting date without
any deduction for transaction costs.
The fair value of derivatives that do not have an active market are based on valuation techniques. Level 2 derivatives include market
observable inputs whilst level 3 derivatives do not include market observable inputs.
Transfer Between Categories
There were no transfers between levels during the year.
The fair value of financial instruments as well as the methods used to estimate the fair value are summarised in the table below.
Consolidated
Quoted
Market Price
Level 1
Valuation Technique:
Market Observable Inputs
Level 2
Valuation Technique:
Non-market Observable Inputs
Level 3
Total
$
$
$
$
30 June 2025
Equity securities
– listed on ASX and
TSXV at quoted prices
3,633,385
-
-
3,633,385
3,633,385
-
-
3,633,385
30 June 2024
Equity securities
– listed on ASX and
TSXV at quoted prices
4,615,933
-
-
4,615,933
4,615,933
-
-
4,615,933
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Other Market Price Risk
Other Equity price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices (other than those
arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment, its issuer or all factors
affecting all instruments traded in the market. Investments are managed on an individual basis and material buy and sell decisions are
approved by the Board of Directors. The primary goal of the Group’s investment strategy is to maximise investment returns.
Fair Value Sensitivity Analysis For Equity Securities (Listed Investments)
A sensitivity of 10% has been used and considered reasonable given current market rates. A 10% movement in market prices at
the reporting date would have increased equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables remain constant. The analysis for 2024 was performed on the same basis.
Consolidated
Loss
Equity
10%
10%
10%
10%
30 June 2025
increase
decrease
increase
decrease
Equity securities – listed on TSXV
$363,339
($363,339)
$363,339
($363,339)
30 June 2024
Equity securities – listed on TSXV
$461,593
($461,593)
$461,593
($461,593)
Commodity Price Risk
The Group operates primarily in the exploration and evaluation phase and accordingly the Group’s financial assets and liabilities are
subject to minimal commodity price risk at this stage.
Capital Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so as to maintain
a strong capital base sufficient to maintain future exploration and development of its projects. In order to maintain or adjust the capital
structure, the Group may return capital to shareholders, issue new shares or sell assets to reduce debt. The Group’s focus has been
to raise sufficient funds through equity to fund exploration and evaluation activities.
There were no changes in the Group’s approach to capital management during the year. Risk management policies and procedures
are established with regular monitoring and reporting.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
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26. Parent Entity Disclosures
Company
Financial Position
30 June 2025
$
30 June 2024
$
Assets
Current assets
23,529,828
25,935,376
Non-current assets
10,712,280
10,713,566
Total assets
34,242,108
36,648,942
Liabilities
Current liabilities
841,504
718,691
Non-current liabilities
30,956
30,956
Total liabilities
872,460
749,647
Net assets
33,369,648
35,899,295
Equity
Issued capital
66,859,386
66,810,197
Accumulated losses
(34,238,486)
(31,698,520)
Reserves
748,748
787,618
Total equity
33,369,648
35,899,295
Company
Financial Performance
30 June 2025
$
30 June 2024
$
Loss for the year
(2,539,966)
7,204,616
Other comprehensive income
-
-
Total comprehensive income
(2,539,966)
7,204,616
There were no contingent liabilities of the parent entity at 30 June 2025 (2024: Nil), nor where there any commitments of the parent
entity (2024: Nil).
27. Contingencies
The Group has no contingencies as at 30 June 2025 (2024: Nil).
28. Events Subsequent to Balance Date
Subsequent to year end the following events have occurred:
→
On 17 September 2025, 5,000,000 vested performance rights were converted into ordinary shares in the Company.
→
During September 2025 the Company sold 6,366,001 of the shares held in Carnaby Resources Limited (ASX:CNB), raising
approximately $1.9m.
Other than the above, there has not been any other matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in
future financial periods.
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Consolidated Entity Disclosure Statement
As At 30 June 2025
Body Corporates
Tax Residency
Entity Name
Entity Type
Place of
Incorporation
% Share
Capital Held
Australian
or Foreign
Foreign
Jurisdiction
Hammer Metals Limited
Body Corporate
Australia
N/a
Australian
N/a
Hammer Metals Australia Pty Ltd
Body Corporate
Australia
100%
Australian
N/a
Mt. Dockerell Mining Pty Ltd
Body Corporate
Australia
100%
Australian
N/a
Mulga Minerals Pty Ltd
Body Corporate
Australia
100%
Australian
N/a
Carnegie Exploration Pty Ltd
Body Corporate
Australia
100%
Australian
N/a
Hammer Bulk Commodities Pty Ltd
Body Corporate
Australia
100%
Australian
N/a
Midas Metals Asia Pty Ltd
Body Corporate
Australia
85%
Australian
N/a
All entities except for Midas Metals Asia Pty Ltd are members of the Hammer Metals Limited consolidated tax group. Midas Metals
Asia Pty Ltd is a dormant entity with no trading and no assets.
None of the abovementioned entities acts as a trustee of a trust within the Group, nor is a partner in partnership with the Group,
nor is a participant in a joint venture within the Group.
Basis of preparation
The consolidated entity disclosure statement (CEDS) has been prepared in accordance with subsection Section 295 (3A) of the
Corporations Act 2001. The entities listed in the statement are Hammer Metals Limited and all the entities it controls in accordance
with AASB 10 Consolidated Financial Statements.
Key assumptions and judgements
Determination of tax residency
Section 295 (3A) Corporations Act requires that the tax residency of each entity which is included in the Consolidated Entity
Disclosure Statement (CEDS) be disclosed. In the context of an entity which was an Australian resident, “Australian resident” has
the meaning provided in the Income Tax Assessment Act 1997 (Cth). The determination of tax residency involves judgment as the
determination of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted,
and which could give rise to a different conclusion on residency.
In determining tax residency, the Group has applied the following interpretations:
Australian tax residency
The Group has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public
guidance in Tax Ruling TR 2018/5.
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Directors’ Declaration
1. In the opinion of the Directors of Hammer Metals Limited (“the Company”):
(a) the consolidated financial statements and notes and the remuneration report in the
Directors’ report, are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2025 and of its performance for the financial
year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the Company will be able
to pay its debts as and when they become due and payable.
2. The Directors have been given the declarations by the managing director and
company secretary for the financial year ended 30 June 2025 pursuant to Section
295A of the Corporation Act 2001.
3. The Directors draw attention to Note 2(a) to the consolidated financial statements, which
includes a statement of compliance with International Financial Reporting Standards.
4. The Consolidated Entity Disclosure Statement as set out on page 53 is true and correct.
Signed in accordance with a resolution of the Directors:
Russell Davis
Chairman
Perth
Dated 30 September 2025
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INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF HAMMER METALS LIMITED
Report on the Financial Report
Opinion
We have audited the financial report of Hammer Metals Limited (the “Company”), which comprises the consolidated
statement of financial position as at 30 June 2025, the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, and notes to the financial statements, including material accounting policy information, the consolidated entity
disclosure statement, and the directors’ declaration of the Company and the consolidated entity comprising the Company
and the entities it controlled at the year’s end or from time to time during the financial year.
In our opinion the accompanying financial report of Hammer Metals Limited is in accordance with the Corporations Act
2001, including:
i)
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2025 and of its performance for
the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material Uncertainty Related to Going Concern
Without modifying our opinion, we draw attention to Note 2(g) in the financial report, which indicates that the consolidated
entity incurred a loss of $(2,923,316) (2024: profit of $ 6,270,584) and operating cash outflows of $981,918 (2024:
$1,506,700) during the year ended 30 June 2025. This condition, along with other matters as set out in note 2(g), indicate
the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue
as a going concern and therefore, the consolidated entity may be unable to realise its assets and discharge its liabilities in
the normal course of business.
The financial report of the consolidated entity does not include any adjustments in relation to the recoverability and
classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should
the consolidated entity not continue as going concern.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit
of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
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Key Audit Matter
A key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the financial
report of the current year. This matter was addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on this matter. For the matter below, our
description of how our audit addressed the matter is provided in that context.
Carrying value of capitalised exploration expenditure
Why significant
How our audit addressed the key audit matter
As at 30 June 2025 the carrying value of exploration
and evaluation assets was $27,901,337 (2024:
$26,540,119), as disclosed in note 14. Exploration
and Evaluation assets written off during the year
amounted to $907,190.
The consolidated entity’s accounting policy in
respect of exploration and evaluation expenditure
is outlined in notes 2(e) iii and 3(l).
Significant judgement is required:
•
in
determining
whether
facts
and
circumstances indicate that the exploration
and evaluation assets should be tested for
impairment in accordance with Australian
Accounting Standard AASB 6 - Exploration for
and Evaluation of Mineral Resources (“AASB
6”); and
•
in determining the treatment of exploration
and evaluation expenditure in accordance
with AASB 6, and the consolidated entity’s
accounting policy. In particular:
o
whether the particular areas of interest
meet the recognition conditions for an
asset; and
o
which elements of exploration and
evaluation
expenditures
qualify
for
capitalisation for each area of interest.
Our work included, but was not limited to, the
following procedures:
• conducting a detailed review of management’s
assessment of impairment trigger events prepared
in accordance with AASB 6 including:
o
assessing whether the rights to tenure of the
areas of interest remained current at
reporting date as well as confirming that
rights to tenure are expected to be renewed
for permits that will expire in the near
future;
o
holding discussions with the Directors and
management as to the status of ongoing
exploration programmes for the areas of
interest, as well as assessing if there was
evidence that a decision had been made to
discontinue activities in any specific areas of
interest; and
o
obtaining and assessing evidence of the
consolidated entity’s future intention for the
areas of interest, including reviewing future
budgeted expenditure and related work
programmes.
• considering whether exploration activities for the
areas of interest had reached a stage where a
reasonable
assessment
of
economically
recoverable reserves existed;
• testing, on a sample basis, exploration and
evaluation expenditure incurred during the year for
compliance with AASB 6 and the consolidated
entity’s accounting policy; and
• assessing the appropriateness of the related
disclosures in notes 2(e) iii, 3(l) and 14.
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Other Information
Those charged with governance are responsible for the other information. The other information comprises the information
included in the consolidated entity’s annual report for the year ended 30 June 2025, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any form of
assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of:-
a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001;
and
for such internal control as the Directors determine is necessary to enable the preparation of:-
i)
the financial report (other than the consolidated entity disclosure statements) that gives a true and fair view and is
free from material misstatement, whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to
fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless the Directors either intend to liquidate the consolidated entity or to cease operations, or have no realistic alternative
but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
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As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the consolidated entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the consolidated entity to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether
the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the consolidated entity to express an opinion on the group financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear
on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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Report on the Remuneration Report
Opinion
We have audited the Remuneration Report included in the Directors’ Report for the year ended 30 June 2025.
In our opinion, the Remuneration Report of Hammer Metals Limited for the year ended 30 June 2025, complies with section
300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration
Report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
ALEXANDRA SOFIA
BALDEIRA PEREIRA CARVALHO
PARTNER
30 September 2025
PERTH, WESTERN AUSTRALIA
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ASX ADDITIONAL
INFORMATION
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ASX Additional Information
Additional information required by the Australian Stock Exchange Listing Rules
and not disclosed elsewhere in this report is set out below. Information regarding
share and option holdings is current as at 24 October 2025.
(a) Ordinary Shareholders
Twenty Largest Holders of Ordinary Shares
Number of Shares
% Held
MR ZBIGNIEW WALDEMAR LUBIENIECKI
64,402,901
7.21
CENTRAL MUTUAL (INVESTMENTS) PTY LTD<CENTRAL MUTUAL (INV) A/C>
62,816,074
7.04
ZENITH PACIFIC LIMITED
58,000,000
6.50
BNP PARIBAS NOMS PTY LTD
49,110,875
5.50
DAVIS FAMILY CAPITAL PTY LTD <THE DAVIS SUPER FUND A/C>
43,000,000
4.82
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
34,000,000
3.81
BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT>
24,981,809
2.80
LUNDIE INVESTMENTS PTY LTD <PATASH INVESTMENTS S/F A/C>
20,007,273
2.24
SAMLISA NOMINEES PTY LTD
20,000,000
2.24
B & C WATSON HOLDINGS PTY LTD <WATSON SUPER FUND A/C>
8,888,888
1.00
BNP PARIBAS NOMINEES PTY LTD <CLEARSTREAM>
8,782,400
0.98
NATIONAL HEALTH RECOVERY AGENTS PTY LTD
8,000,000
0.90
MR SHANE RONALD BRITTEN
7,890,842
0.88
MR PHILIP JOSEPH PARKINS <P H FREIGHT A/C>
6,744,086
0.76
ANGIP NOMINEES PTY LTD <JOHNS FAMILY A/C>
6,500,000
0.73
CITICORP NOMINEES PTY LIMITED
6,392,773
0.72
MRS LAURA TENNILLE THOMAS
6,333,334
0.71
MR ROBERT SPOONER
5,925,312
0.66
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
5,305,860
0.59
MR JAMES GLEN FOLEY
5,242,000
0.59
452,324,427
50.67
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Significant Shareholders Are:
Number of Shares
% Held
MR ZBIGNIEW WALDEMAR LUBIENIECKI
64,402,901
7.21
CENTRAL MUTUAL (INVESTMENTS) PTY LTD <CENTRAL MUTUAL (INV) A/C>
62,816,074
7.04
ZENITH PACIFIC LIMITED
58,000,000
6.50
BNP PARIBAS NOMS PTY LTD
49,110,875
5.50
Each fully paid ordinary share entitles the holder to one vote at general meetings of shareholders and is entitled to dividends when
declared.
The total number of shares on issue is 892,758,700
The number of shareholders holding less than a marketable parcel is 952.
There is no current on market buy back.
The Company has no ordinary shares which are subject to voluntary escrow.
Distribution of Ordinary Shareholders
Category of Shareholding
Number of Shareholders
Number of Shares
%
1 – 1,000
171
32,076
0.00%
1,001 – 5,000
113
412,753
0.05%
5,001 – 10,000
383
3,045,533
0.34%
10,001 – 100,000
1,476
60,815,130
6.81%
100,001 and over
753
828,453,208
92.80%
Total
2,896
892,758,700
100.00%
(b) Unquoted securities
The Company has the following unquoted securities on issue.
Category of Security
Number
Number of
Holders
Unlisted Options exercisable at $0.07 on or before 30 November 2026
4,500,000
3
Unlisted Options exercisable at $0.08 on or before 30 November 2026
5,500,000
2
Unlisted Management Tranche 1 Options exercisable at $0.08 on or before 30 November 2026
2,000,000
2
Unlisted Management Tranche 2 Options exercisable at $0.08 on or before 30 November 2026
2,000,000
2
Tranche 1A Management Performance Rights, vesting upon the continuous service for a period of
12 months from the date of issue
500,000
2
Tranche 1B Management Performance Rights, vesting upon the continuous service for a period of
12 months from the date of issue and the share price of the Company’s shares listed on the ASX
achieving a premium of 50% over the 15-day VWAP prior to the issue date, or $0.078
500,000
2
Tranche 2A Management Performance Rights, vesting upon the continuous service for a period of
24 months from the date of issue
500,000
2
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Tranche 2B Management Performance Rights, vesting upon the continuous service for a period of
24 months from the date of issue and the share price of the Company’s shares listed on the ASX
achieving a premium of 100% over the 15-day VWAP prior to the issue date, or $0.104
500,000
2
Tranche 3 Management Performance Rights, vesting upon the completion (to the Board’s
satisfaction) of a material transaction to the value of a minimum of 30% of the Company’s market
capitalisation, determined based on the 30-day VWAP immediately prior to the completion or
announcement of the transaction
2,000,000
2
Unlisted Employee Incentive Options exercisable at $0.06 on or before 25 October 2028
7,000,000
8
Unlisted Related Party Tranche 1 Options exercisable at $0.07 on or before 2 December 2025
2,000,000
2
Unlisted Related Party Tranche 2 Options exercisable at $0.08 on or before 2 December 2025
1,500,000
1
Tranche 1 Employee Incentive Performance Rights, expiring on 25 October 2027 and vesting
subject to the Company announcing a new JORC 2012 compliant mineral resource estimate of
50,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
500,000
1
Tranche 2 Employee Incentive Performance Rights, expiring on 25 October 2027 and vesting
subject to the Company announcing a new JORC 2012 compliant mineral resource estimate of
100,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
500,000
1
Tranche 3 Employee Incentive Performance Rights, expiring on 25 October 2027 and vesting
subject to the Company announcing a new JORC 2012 compliant mineral resource estimate of
200,000 tonnes Cu or equivalent KPI at the sole discretion of the Board.
500,000
1
Tranche 1 Related Party Performance Rights, expiring on 15 November 2027 and vesting subject
to the Company announcing a new JORC 2012 compliant mineral resource estimate of 50,000
tonnes Cu or equivalent KPI at the sole discretion of the Board.
1,000,000
1
Tranche 2 Related Party Performance Rights, expiring on 15 November 2027 and vesting subject
to the Company announcing a new JORC 2012 compliant mineral resource estimate of 100,000
tonnes Cu or equivalent KPI at the sole discretion of the Board.
1,000,000
1
Tranche 3 Related Party Performance Rights, expiring on 15 November 2027 and vesting subject
to the Company announcing a new JORC 2012 compliant mineral resource estimate of 200,000
tonnes Cu or equivalent KPI at the sole discretion of the Board.
1,000,000
1
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Suite 2, Level 2,
41 Colin Street
West Perth, WA 6005
+61 8 6369 1195
info@hammermetals.com.au
www.hammermetals.com.au
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