Did you actually read the auditors report? It was qualified...

Did you actually read the auditors report? It was qualified based on the going concern ie the ability of the company to survive. If you read that you knew they were in trouble, if you did not, then you have yourself to blame.

Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a
UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
95 | True North Copper 2024 Annual Report
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a
UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were 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 these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying Value of Exploration and Evaluation Assets
Key audit matter How the matter was addressed in our audit
Refer to Note 12 in the financial report.
The Group carries exploration and evaluation
assets as at 30 June 2024 in relation to the
application of the Group’s accounting policy for
exploration and evaluation assets.
The recoverability of exploration and evaluation
assets is a key audit matter due to:
• The significance of the total balance; and
• The level of procedures undertaken to
evaluate management’s application of the
requirements of AASB 6 Exploration for and
Evaluation of Mineral Resources (‘AASB
6’)in light of any indicators of impairment
that may be present.
Our audit procedures included, amongst others:
• Obtaining evidence that the Group has valid
rights to explore in the areas represented by
the capitalised exploration and evaluation
expenditure by obtaining supporting
documentation such as license agreements
and considering whether the Group maintains
the tenements in good standing
• Assessing the basis for continuing to carry the
costs, including the status of renewals that
had been lodged and obtaining evidence that
the licenses remained in force until the
renewal process is completed
• Enquiring of management with respect to the
status of ongoing exploration programs in the
respective areas of interest and assessing the
Group's cash flow budget for the level of
budgeted spend on exploration projects
• Enquiring of management, reviewing ASX
announcements and reviewing directors'
minutes to ensure that the Group had not
decided to discontinue activities in any
applicable areas of interest and to assess
whether there are any other facts or
circumstances that existed to indicate
impairment testing was required.
True North Copper 2024 Annual Report | 96
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a
UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
Valuation and disclosures of Development Assets
Key audit matter How the matter was addressed in our audit
Refer to Note 13 of the financial
statements.
The carrying value of development assets
represents a significant balance of the
Group.
The Group is required to assess at each
reporting period if impairment indicators
are present, and when assets are
transferred from exploration and evaluation
assets to development assets. The
impairment test was significant to our audit
because the development assets balance is
material to the financial statements and
because management’s assessment process
is complex, highly judgemental and includes
estimates and assumptions relating to
expected future market or economic
conditions.
Our audit procedures included, amongst others:
• Evaluating management’s determination of the
Group’s Cash Generating Units (“CGUs”) to
ensure they are appropriate, including being at
a level no higher than the operating segments of
the Group
• Obtaining and gaining an understanding of the
Group’s value in use model, and critically
evaluating management’s methodologies and
their key assumptions
• Evaluating the Group’s inputs used in the valuein-use calculations, including those relating to
forecast revenue, total resources, costs, periods
of operation
• Involving our internal specialists to assess the
reasonableness of the gold price, copper price
discount rate and exchange rates
• Evaluating the adequacy of the related
disclosures in the financial report.
Accounting for Nebari Loan
Key audit matter How the matter was addressed in our audit
Refer to Note 15 of the financial
statements.
The Group entered into an agreement with
Nebari Natural Resources Fund. The
agreement includes warrants which are
inherently complex, and as a result, the
loan must be appropriately split between
equity and liabilities.
This was considered to be a key audit
matter due to the non-routine nature and
complexity of the transaction.
Our audit procedures included, amongst others:
• Obtaining an understanding of and assessing the
terms and conditions of the loan agreement to
determine if the warrants are to be accounted
for as equity a liability or a combination of both
• Reviewing the position paper prepared by
management’s expert to ensure that the
accounting for the loan is in accordance with
accounting standards
• Engaging our internal specialists to review the
valuation of the loan and warrants
• Reviewing disclosures in the financial report for
reasonableness