Accelerate Resources Limited
ABN 33 617 821 771
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CORPORATE
Accelerate Resources Limited
ACN: 617 821 771
ABN: 33 617 821 771
Directors
Mr Richard Hill
Non-Executive Chairman
Ms Yaxi Zhan
Managing Director
Mr Grant Mooney
Non-Executive Director
Dr Stephen Bodon
Non-Executive Director
Company Secretary
Ms Deborah Ho
Registered and Principal Office
Unit 4, 16 Ord Street
West Perth, WA 6005
Telephone: (08) 6246 9663
Website
www.ax8.com.au
Securities Exchange
Australian Securities Exchange (ASX Limited)
Home Exchange Perth
Securities
Code: AX8
Share Registry
Advanced Share Registry
110 Stirling Hwy
Nedlands WA 6009
Australian Telephone: 1300 113 258
International Telephone: (618) 9389 8033
Website: advancedshare.com.au
Auditor
Hall Chadwick WA Audit Pty Ltd
283 Rokeby Road
Subiaco, WA 6008
Telephone: +61 8 9426 0666
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
TABLE OF CONTENTS
CHAIRMAN'S LETTER
REPORT ON OPERATIONS
DIRECTORS' REPORT
AUDITOR'S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS' DECLARATION
INDEPENDENT AUDITOR'S REPORT
ASX ADDITIONAL INFORMATION
2
4
13
30
31
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33
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35
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66
72
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CHAIRMAN’S LETTER
Dear Shareholder,
It is my pleasure to present to you Accelerate’s Annual Report for the year ending 30 June 2022.
Over the past year, your company has been very active and successful in completing exploration activities.
While we retain our gold project, the acquisition of the high quality manganese projects has the potential to
define our company significantly and add shareholder value.
Accelerate has identified potential future supply disruption and metal shortfalls in the Manganese market
and executed a high-grade manganese exploration strategy to supply battery and steel markets. The strategic
acquisition of Braeside West (and Ripon Hills East) tenements combined with the adjacent Barramine high-
grade Manganese Project consolidates for the first time, a 35km corridor of highly prospective manganese
mineralization, collectively known as our Woodie Woodie North Manganese Project.
The Phase One maiden drilling program at Woodie Woodie North recently completed, exceeded our
expectations. A significant new, near-surface zone of manganese mineralization has been discovered through
this program and drilling intersected a well-developed manganese enriched zone. We look forward to the
upcoming follow up drilling program to quickly build on this story.
This year has also provided Accelerate with the opportunity to strategically identify a potential lithium
opportunity to complement its Manganese strategy in the Pilbara region. We completed geological mapping
over all three exploration licenses east and south of Marble Bar in the East Pilbara. Both areas are
underexplored for lithium mineralization, with only limited historic diamond drilling.
During the year, we also completed the sale of the Tambellup Project to Vytas Resources Pty Ltd. In identifying
this opportunity to develop a new technology material, the venture places Vytas and Accelerate at the
forefront of becoming a supplier to the renewable technology industry. Both High Purity Alumina (HPA) and
High Purity Quartz (HPQ) having been identified in the Critical Energy Minerals Roadmap as critical minerals
needed to transition to a renewable economy.
In February, we were pleased to announce and welcome the appointment of Dr Stephen Bodon as a Non-
Executive Director. Dr Bodon’s strong technical skill set, and proven project development and business
transformation track record is strongly aligned with Accelerate’s growth strategy and will be invaluable as the
Company further advances its Manganese projects in the Pilbara.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CHAIRMAN’S LETTER (CONTINUED)
Finally, from myself and on behalf of my fellow Directors I would like to thank our shareholders who have
supported the company throughout the year. We look forward to reporting further success in the coming
year.
Yours sincerely,
Richard Hill
Chairman
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
REPORT ON OPERATIONS
During 2021-2022, Accelerate Resources Limited (ASX:AX8) has focused on exploration projects located in
Western Australia:
•
•
•
Woodie Woodie North Manganese Project;
Comet Gold Project; and
East Pilbara Lithium Project.
Woodie Woodie North Manganese Project
Figure 1. Woodie Woodie North Manganese Project Tenements
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Accelerate’s Manganese Strategy
During the year, Accelerate identified future supply disruption and metal shortfalls of high-grade manganese
concentrate for the battery and steel production markets, and had executed a manganese strategy to meet
the future demand.
Manganese is a critical element used in steel production, and high-grade deposits capable of producing lump
or fines product with grades more than 40% manganese, are critical in steel and battery market supply chains.
The steel industry is poised to continue growing, providing a steady source of demand for manganese. New
demand is arising from clean-energy applications.
In July 2021, the Company entered into a binding agreement to acquire the manganese and iron ore rights at
Ripon Hills East and Braeside West Projects in the East Pilbara Manganese Field (ASX Announcement dated
27 July 2021). Subsequently in February 2022, the Company announced the acquisition of the adjacent
Barramine project area. The merger of the contiguous Barramine and Braeside West manganese projects will
fast-track the Company in becoming a significant player in the manganese space with the clear objective of
developing mineral resources and operations in this world-class manganese province (ASX announcement
dated 16 February 2022).
Figure 2. Woodie Woodie North Manganese Project Location
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Figure 3. Surface High-grade manganese at Braeside West
The Woodie Woodie North Manganese Project is located 120km east of Marble Bar, 250km from Port
Hedland, and approximately 70km north of the Woodie Woodie Manganese Mine. The project consists of
three granted exploration licenses (E45/5978, E45/5854 and E45/5088) and two applications (E45/5979 and
E45/6100), covering a total area of 358km2 within the Woodie Woodie Manganese Corridor and therefore
considered highly prospective for manganese (Figure 1).
Previous exploration at Barramine includes surface sampling, RC drilling (27,478m, 343 drill holes), geological
mapping, aerial photography and photogrammetry, limited gravity surveys, limited IP surveys, airborne
magnetic and EM survey, surface EM re-processing of geophysical data, metallurgical test work, mineralogical
analysis, 3D geological modelling and resource analysis, heritage and ethnological surveys.
At Braeside West, there has been several phases of limited exploration which has included partial geological
mapping and sampling of manganese outcrops. This area is overlapped in part with VTEM geophysics and
tested with a small amount of scout drilling. Pilbara Manganese Pty Ltd also completed gravity and IP
geophysical surveys and a limited five-hole RC drilling program on the Bea target area.
At Ripon Hills and Mt Sydney, there is limited known exploration.
Current Exploration Activities
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Post acquisition and consolidation in February 2022, the Company carried out a ground survey and sampling
program in August 20211 and November 20212, and LiDAR Survey in December 20213. These datasets are
instrumental in delineating geological, structural, and geomorphological trends, and provide additional,
accurate and high-resolution mapped surfaces for project planning and development and are particularly
useful for drilling and field exploration activities (ASX announcement dated 9 February 2022).
The team also completed a review of historical beneficiation test work for the Woodie Woodie North
Manganese Project in May 20224. The results were encouraging, demonstrating manganese product grades
up to 48% Mn. The test work indicated that industry standard, low cost, conventional gravity separation
processes may be employed to produce economic grade manganese deliverable as premium product to
market.
Since the end of the financial year, the Company commenced and completed its phase one maiden
manganese drilling program at Woodie Woodie North with results pending (ASX announcement dated 25
August 2022).
1 ASX Announcement dated 31 August, 2021 Prospectivity of East Pilbara Manganese Assets Confirmed
2 ASX Announcement dated 15 November 2021, AX8 Confirms High Grade Surface Manganese at Braeside West
3 ASX Announcement dated 21 December 2021, Exploration Program Commenced at Braeside West Manganese
4 ASX Announcement dated 25 May 2022, Woodie Woodie North Manganese Demonstrates up to 48% Mn Premium Concentrate Potential
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Comet Gold Project
Figure 4. Comet Gold Project Location
The Comet Gold Project is in the Murchison Goldfield approximately 115km south-southwest of Meekatharra
and 20km southeast of Cue in Western Australia. The project comprises five granted exploration licences
covering 220km2, immediately to the north and along strike of the Comet gold mine. The project covers part
of the Meekatharra to Mount Magnet Greenstone Belt, located at the southern end of the Tuckabianna Shear
Zone (Figure 4).
During the financial year, additional granted tenements were added to the package and reconnaissance field
work was completed. Additional historic data has undergone verification prior to Accelerate and incorporated
into the existing database.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
The Company also advanced the heritage survey to cover several high priority drilling targets, and it plans to
conduct a targeted geochemical survey over previously identified areas, as well as a shallow aircore (AC)
drilling program to test for conceptual “blind” mineralization running parallel and along strike of known gold
mineralization.
Pilbara Lithium Project
Figure 5. Project Location Map – Pilbara Lithium Project
Accelerate lodged three exploration license applications during the year, covering approximately 369km2 of
prospective geology in the East Pilbara region of Western Australia, located 200km east of Port Hedland, and
30km east and south-east of Marble Bar (Figure 5).
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Accelerate’s projects are in an area of active lithium exploration and discovery which includes Global Lithium
Resources’ Archer deposit (10.5Mt @ 1.0% LiO2) ~30 km to the northeast and the Moolyella project held by
Lithium 1 Pty Ltd (see Figure 1).
Historical data has now been collated, and whilst there has been significant historical exploration for
diamonds, limited work focusing on lithium or lithium-related pathfinder geochemistry has been recorded.
Desktop studies have identified priority targets characterised by multiple vein/dyke filled cross-cutting
structures within the granitic plutons. Work has also included a review of the host granitic structures and
neighbouring exploration activity that has successfully identified lithium mineralization.
Based on the lithium pegmatite model successfully employed in the immediate region by other explorers, the
upcoming field program will seek to follow up targets generated from the detailed photo interpretations and
previously identified geophysical anomalies from historical diamond exploration.
Corporate Activities
Divestment of Tambellup Kaolin Project
In 2021, Accelerate executed a binding agreement with Vytas Resources Pty Ltd ("Vytas") and completed the
sale of Tambellup project, located in the South-West of Western Australia, to Vytas. Vytas’s other key projects
consist of the Moora Silica Sand Project and the White Peaks Silica Project.
The strategy is to form a new technology material company focused on developing the Kaolin assets and Silica
assets. This new technology material venture will place Vytas and Accelerate at the forefront of the renewable
technology industry and expose Accelerate shareholders to the globally significant High Purity Quartz (HPQ)
market and the renewable energy sector (ASX Announcement dated 2 September 2021).
In 2021, Vytas completed its Phase One exploration of the Moora Project in December. In May 2022,
Accelerate Resources announced a maiden Inferred Mineral Resource Estimate (MRE) of approximately
12.5Mt of Kaolinised Granite, with an Al2O3 content of 36.6 % and an ISO Brightness of 84.8 for the Company’s
Tambellup Kaolin Project (Tambellup). With both the Tambellup Project and the Silica Sand Project being
advanced, Vytas aims to be listed on the ASX in 2022.
Accelerate Resources currently holds 27,120,000 shares, which is equal to a ~33% interest in Vytas pre-IPO.
Divestment of Mt Read Project
The Company’s Mt Read Project is located on the Cape Sorell Peninsula, south of Macquarie Harbour and
approximately 48km south of Strahan, in western Tasmania. The project comprises one exploration license
with a total area of 224km².
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
The Company executed a Heads of Agreement (HOA) to divest its 100% interest in the Mt Read Project in
Tasmania via a Sale and Purchase Agreement to unlisted company Stunalara Metals Limited (ASX
announcement dated 4 June 2021).
Since the end of the financial year, the Company executed a variation agreement extending the Option period
for a further 12 months.
Equity Position in TSX-V listed Exploration Company Currie Rose Resources
After announcing on 30 April 2021 that the Company had completed its Due Diligence on the Exploration
Program on the Rossland High-Grade Gold project in Canada and elected to convert its expenditure to
8,333,333 shares in Currie Rose, the Company received confirmation in July 2021 that the shares had been
issued.
During the year, Currie Rose announced that it had entered into an agreement with Chalice Mining Limited
and Liontown Resources Limited to acquire 100% of two advanced vanadium assets in North Queensland,
Australia.
Similar to manganese, vanadium is a key strategic metal for the battery and broader electrification sector.
With this transaction, there is ongoing potential for the Company and Currie Rose to share synergies within
the rapidly developing renewables and battery space (ASX Announcement dated 28 October 2021).
Appointment of Dr Stephen Bodon to the Board
In February 2022, the Company announced the appointment of Dr Stephen Bodon as a Non-Executive
Director. Dr Bodon has strong technical and business leadership skills with extensive experience in
exploration, production and business development.
Dr Bodon has previously held senior leadership roles for a number of large international organisations
including Anglo American and Sasol. He has strong technical, business leadership skills and extensive
experience in exploration, production and business development.
Dr Bodon has a PhD in Geology from the Centre for Ore Deposit Research (CODES), University of Tasmania.
He has also undertaken further training in engineering, business administration and sustainability leadership
(ASX Announcement dated 1 February 2022).
Capital Raising
On 13 September 2021, the Company announced that it has received firm commitments to raise $3.1 million
(before costs) from sophisticated investors via a placement. On 20 September 2021, the Company issued
38,899,428 fully paid ordinary shares at $0.036 per share. On 16 November 2021, a further 47,211,677 fully
paid ordinary shares at $0.036 per share were issued following shareholder approval at the 2021 Annual
General Meeting held on 8 November 2021.
Junior Minerals Exploration Incentive (JMEI) Credits
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
The Australian Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme encourages
investment in mineral exploration companies that carry out “Greenfields” mineral exploration in Australia, by
allowing such companies to generate a tax incentive by choosing to give up a portion of their losses from
“Greenfields” mineral exploration expenditure for distribution to Australian residents who acquired new
shares during the relevant eligibility period. The shares must be equity interests for the purposes of debt and
equity tax rules.
In November 2021, the Company distributed JMEI credit of $115,154 as Tax credit to the Company’s eligible
shareholders.
On 7 September 2021, the Company announced that it had been successful in its application for participation
in the JMEI scheme for the second year. The Company has received an allocation of up to $600,000 in JMEI
tax credits which can be distributed to shareholders (Eligible Shareholders) who participate in a capital raising
and acquire new shares in Accelerate between the 2 September 2021 and 30 June 2022 (Eligibility Period)
(ASX Announcement dated 7 September 2021).
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
DIRECTOR’S REPORT
The Directors of Accelerate Resources Limited (the ‘Company’) and its controlled entities (the ‘Group’)
present their Report for the financial year ended 30 June 2022.
DIRECTORS
The following were Directors of the Company at any time during the reporting period and up to the date of
this report, unless otherwise indicated, were Directors for the entire period.
Director
Mr Richard Hill
Ms Yaxi Zhan
Mr Grant Mooney
Dr Stephen Bodon
Title
Non-Executive Director
Managing Director
Non-Executive Director
Non-Executive Director
Appointment Date
3 July 2020
7 March 2017
1 June 2017
1 February 2022
Resignation Date
-
-
-
-
COMPANY SECRETARY
Ms Deborah Ho
PRINCIPAL ACTIVITIES
The Group is an Australian mineral exploration company, focusing on base metals and industrial minerals
exploration.
RESULTS
The loss of the Group for the financial year ended 30 June 2022 was $1,489,738 (2021: $3,374,055).
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There are no significant changes in the state of affairs of the Group. The Coronavirus pandemic had minimal
impact on the Group for the year ended 30 June 2022.
EVENTS SUBSEQUENT TO BALANCE DATE
Capital raisings and security issues
On 6 July 2022, the Company announced that it had issued 500,000 performance rights expiring on 1 October
2023 under the employee incentive scheme. The performance rights vest on satisfaction of delivery of a
Maiden Resource on the Company’s manganese project. Each performance right converts into one fully paid
ordinary share.
On 6 July 2022, the Company announced that it had issued 7,000,000 fully paid ordinary shares as Tranche 1
Milestone Consideration Shares to the Halcyon Vendors (and/or their nominees) as part of deferred
consideration for the Halcyon Transaction. 3,499,999 of these Tranche 1 Consideration Shares are voluntarily
restricted for 6 months to 4 January 2023.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
EVENTS SUBSEQUENT TO BALANCE DATE (CONTINUED)
There are no other matters or circumstances that have arisen since 30 June 2022 to the date of this report
that have significantly affected, or may significantly affect the Group’s operations, the results of those
operations, or the Group’s state of affairs in future financial years.
LIKELY DEVELOPMENTS
Information on likely developments in the operations of the Group and the expected results of operations
have not been included in this report because the Directors believe it would be likely to result in unreasonable
prejudice to the Group.
DIVIDEND
No dividends have been paid or declared during the financial year ended 30 June 2022, nor have the Directors
recommended that any dividends be paid.
ENVIRONMENTAL REGULATION
The Directors believe that the Group has, in all material respects, complied with all particular and significant
environmental regulations relevant to its operations.
PARTICULARS OF DIRECTORS AND COMPANY SECRETARY
CURRENT DIRECTORS
Richard Hill
Non-Executive Chairman (Appointed Non-Executive Director 3 July 2020,
appointed Non-Executive Chairman 20 November 2020)
Qualifications and Experience Mr Hill is a qualified geologist and solicitor with over 25 years’ experience
in the resources sector. In addition to his corporate, commercial and
fundraising roles, Mr Hill has practical geological experience in a range of
commodities worldwide
Interest in Shares and Options
Directorships held in other
listed entities in the past three
years
9,132,653 Ordinary Shares
3,000,000 options exercisable at $0.0957, expiring on 27 November 2024
1,500,000 options exercisable at $0.0593, expiring on 16 November 2024
Non-Executive Chairman at New World Resources Limited (current)
Non-Executive Director at Sky Metals Ltd (current)
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Managing Director
Yaxi Zhan
Qualifications and Experience Ms Zhan has over 14 years of experience in the resource industry. She has
worked
in capital raising, mergers and acquisitions and project
development with Sinosteel, Norilsk Nickel and within the Australian listed
junior exploration sector.
Interest in Shares and Options 4,810,009 Ordinary Shares
3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024
2,000,000 options exercisable at $0.0593, expiring on 16 November 2024
Directorships held in other
listed entities in the past three
years
Nil
Grant Mooney
Non-Executive Director (transitioned from Non-Executive Chairman 20
November 2020)
Qualifications and Experience Mr Mooney is the principal of Perth-based corporate advisory firm
Mooney & Partners, specialising in corporate compliance administration
to public companies. He has extensive experience in the areas of
corporate and project management, capital raisings, mergers and
acquisitions and corporate governance.
Interest in Shares and Options 2,016,115 Ordinary Shares
Directorships held in other
listed entities in the past three
years
3,000,000 Options exercisable at $0.0957, expiring on 27 November 2024
1,000,000 options exercisable at $0.0593, expiring on 16 November 2024
Non-Executive Chairman at Riedel Resources Limited (current)
Non-Executive Chairman at Aurora Labs Limited (current)
Non-Executive Director at Greenstone Resources Limited (formerly Barra
Resources Limited) (resigned 18 August 2021)
Non-Executive Director at Carnegie Clean Energy Limited (current)
Non-Executive Director at Gibb River Diamonds Limited (current)
Non-Executive Director at Talga Group Ltd (current)
Non-Executive Director at SRJ Technologies Ltd (current)
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Non-Executive Director (appointed 1 February 2022)
Stephen Bodon
Qualifications and Experience Dr Bodon has a PhD in geology with 30 years’ experience in mining and
upstream oil & gas. He is a successful senior business leader with broad
in exploration, production and business
management experience
development. He previously held senior leadership roles for a number of
large international organisations, such as Anglo American and Sasol and is
currently General Manager Higginsville Operations for Karora Resources.
Interest in Shares and Options 1,000,000 Options exercisable at $0.059, expiring on 1 February 2025
Directorships held in other
listed entities in the past three
years
Nil
Company Secretary
Deborah Ho
Qualifications and Experience Ms Ho has over six years of experience in company secretarial, corporate
compliance and financial accounting matters. She has acted as Company
Secretary to a number of ASX listed and private companies. She holds a
Bachelor of Commerce from Curtin University and is an Associate Member of
the Governance Institute of Australia.
DIRECTORS' MEETINGS
The Directors attendances at Board meetings held during the year were:
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
Board Meetings
Number eligible to attend
8
8
8
3
Number attended
8
8
8
3
The Company does not have any remuneration, nomination or audit committees, these functions are
performed by the Board.
The Board also approved eleven (11) circular resolutions during the year ended 30 June 2022 which were
signed by all Directors of the Company.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each key management personnel of the Group,
and for the executives receiving the highest remuneration.
REMUNERATION POLICY
The remuneration policy of Accelerate Resources Limited has been designed to align key management
personnel objectives with shareholder and business objectives by providing a fixed remuneration component
that provides cost effective services to the Group at an early stage of its development. The Board of Accelerate
Resources Limited believes the remuneration policy to be appropriate and effective in its ability to attract and
retain the best key management personnel to run and manage the Group, as well as create goal congruence
between directors, executives and shareholders.
The Board’s policy for determining the nature and amount of remuneration for key management personnel
of the Group is as follows:
•
•
•
The remuneration policy, setting the terms and conditions for the key management personnel, was
developed and approved by the Board.
All key management personnel receive a base salary or fee appropriate to the skills and
responsibility of the role.
The Board reviews key management personnel packages annually by reference to the Group’s
performance, executive performance and comparable information from industry sectors.
The performance of key management personnel is measured against criteria agreed annually with each
executive and is based predominantly on the forecast development of the Group’s projects. Any bonuses or
incentives must be linked to predetermined performance criteria. The Board may, however, exercise its
discretion in relation to approving incentives, bonuses and options. Any changes must be justified by
reference to measurable performance criteria. The policy is designed to attract the highest calibre of
executives and reward them for performance that results in long-term growth in shareholder wealth.
Key management personnel are also entitled to participate in the employee share and option arrangements.
All remuneration paid to key management personnel is valued at the cost to the Group and expensed. Shares
given to key management personnel are valued as the difference between the market price of those shares
and the amount paid by key management personnel. Options are valued using the Black-Scholes
methodology.
The Board policy is to remunerate Non-Executive Directors at market rates for time, commitment and
responsibilities. The Board determines payments to the Non-Executive Directors and reviews their
remuneration annually, based on market practice, duties and accountability. Independent external advice is
sought when required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors
is subject to approval by shareholders at the Annual General Meeting. Fees for Non-Executive Directors are
not linked to the performance of the Group. However, to align directors’ interests with shareholder interests,
the Directors are encouraged to hold shares in the Company and are able to participate in the employee
option plan.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
PERFORMANCE-BASED REMUNERATION
It is the Group’s intention when appropriate to include performance-based remuneration as a component of
management remuneration, and this was not deemed necessary in the year under review.
COMPANY PERFORMANCE, SHAREHOLDER WEALTH AND DIRECTOR AND EXECUTIVE REMUNERATION
The following table shows gross income, profits (losses) and dividends for the last 5 years as a listed entity
(incorporated on 7 March 2017), as well as the share price at the end of the respective financial years. As
highlighted above, the Group currently does offer any variable remuneration incentive plans or bonus
schemes to Directors and, as such, there are no performance related links to the existing remuneration
policies.
Revenue
Loss after income tax
EBITDA
EBIT
Share price at year-end
Basic loss per share (cents per share)
Dividends paid
2022
$
1,500
(1,221,530)
(1,219,327)
(1,221,530)
0.031
(2.51)
-
2021
$
125,535
(3,374,055)
(3,368,028)
(3,374,055)
0.031
(2.37)
-
2020
$
66,827
(1,505,847)
(1,487,631)
(1,514,134)
0.023
(2.66)
-
2019
$
46,036
(1,715,102)
(1,711,883)
(1,713,998)
0.03
(3.60)
-
2018
$
21,098
(867,747)
(867,065)
(867,289)
0.14
(3.65)
-
KEY MANAGEMENT PERSONNEL REMUNERATION POLICY
The Board's policy for determining the nature and amount of remuneration key management for the Group
is as follows: The remuneration structure for key management personnel is based on a number of factors,
including length of service, particular experience and skills of the individual concerned, and overall
performance of the Group. The contracts for service between the Company and key management personnel
are on a continuing basis, the terms of which are not expected to change in the immediate future. Upon
retirement key management personnel are paid employee benefit entitlements accrued to date of
retirement.
SERVICE AGREEMENTS
The following Directors had contracts in place with the Company during the financial year as detailed below:
Richard Hill, Non-Executive Director (Appointed Non-Executive Director 3 July 2020, appointed Non-Executive
Chairman 20 November 2020)
• Confirmation of Appointment dated 3 July 2020 with no termination date;
o 4 million shares @ deemed $0.023 per share in lieu of cash for services to 31 December 2020.
o Fees of $40,000 per annum from 1 January 2021, increased to $60,000 per annum (from 1 March
2021).
o 2 million performance rights vesting upon weighted average price of share equals or exceeds
$0.05 for 15 consecutive trading days.
o 2 million performance rights vesting upon ASX announcement of acquisition of new exploration
project with significant exploration and/or exploitation potential.
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ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
o There will be no payment upon termination.
Yaxi Zhan, Managing Director
• Confirmation of Appointment dated 7 March 2017 with no termination date;
o Fees of $150,000 per annum (post-IPO), amended to $110,000 per annum (1 May 2019 – 29
February 2020); amended to $150,000 per annum (from 1 March 2020); amended to
$180,000 per annum (from September 2021).
o There will be no payment upon termination.
Grant Mooney, Non-Executive Director (transitioned from Non-Executive Chairman 20 November 2020)
• Confirmation of Appointment dated 1 June 2017 with no termination date;
o Director fees of $50,000 per annum (post-IPO), amended to $30,000 per annum (1 May 2019
– 29 February 2020); amended to $50,000 per annum (from 1 March 2020), amended to
$45,000 (from 20 November 2020)
o There will be no payment upon termination.
Stephen Bodon, Non-Executive Director (appointed 1 February 2022)
• Confirmation of Appointment dated 1 February 2022 with no termination date;
o Fees of $45,000 per annum.
o There will be no payment upon termination.
19
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
DETAILS OF REMUNERATION
Compensation of Key Management Personnel Remuneration
Short-term Benefits
Post-
Employment
Benefits
Long-term
Benefits
Share-Based Payments
Cash, salary
and fees
$
Annual leave
$
Superannuation
$
Long Service
Leave
$
Shares
$
Options /
Performance
Rights
$
Total
$
FY2022
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon 1
FY2021
Directors
Richard Hill 2
Yaxi Zhan
Grant Mooney 3
Terence Topping 4
Andrew Haythorpe 4
100,625
175,000
45,000
18,750
339,375
47,292
150,000
46,931
10,000
23,000
277,223
-
-
-
-
-
-
(421)
-
-
-
(421)
-
17,500
4,500
1,875
23,875
-
14,250
4,458
950
-
19,658
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,638
55,517
27,758
20,276
145,189
142,263
248,017
77,258
40,901
508,439
252,0006
2,6975
1,3495
1,3495
-
257,395
366,4317
114,431
114,431
-
-
595,293
665,723
280,957
167,169
12,299
23,000
1,149,148
1 Appointed Non-Executive Director on 1 February 2022
2 Appointed Non-Executive Director on 3 July 2020, appointed Non-Executive Chairman on 20 November 2020
3 Transitioned to Non-Executive Director on 20 November 2020
4 Resigned 3 July 2020
5 Under-accrual from the previous financial year in relation to director fees for the period March 2020 to June 2020 settled
in shares in the current financial year
6 Shares issued at a deemed share price of 2.3c per share at date of appointment but valued at fair value under accounting
standards at 6.3c per share, being the share price on grant date of 24 August 2020 (after shareholder approval). See Share-
Based Payments section on page 20
7 Comprises options granted of $114,431 and performance rights granted of $252,000. See Share-Based Payments section
on page 20
20
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed
At Risk - STI
At Risk - LTI
2022
2021
2022
2021
2022
2021
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
1 The proportion of Mr Hill’s remuneration that is performance rights. See Performance Rights on page 21.
72%
100%
100%
100%
100%
100%
100%
100%
38%1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Cash bonuses granted as compensation for the current financial year
No cash bonuses were granted during the year ended 2022 (2021: nil).
Other transactions with related parties
There were no other transactions with related parties during the year ended 30 June 2022 (2021: nil).
Loans from key management personnel
As at 30 June 2022, there were no outstanding amounts due to key management personnel (2021: nil).
Use of remuneration consultants
During the financial year ended 30 June 2022, the Group did not engage the services of an independent
remuneration consultant to review its remuneration for Directors, key management personnel and other
senior executives.
Voting and comments made at the company's Annual General Meeting ('AGM')
At the 2021 Annual General Meeting, 100% of the votes received supported the adoption of the remuneration
report for the year ended 30 June 2021. The Company did not receive any specific feedback at the AGM
regarding its remuneration practices.
SHARE-BASED PAYMENTS
This section only refers to those shares and options issued as part of remuneration. As a result, they may not
indicate all shares and options held by a Director or other Key Management Personnel.
Shares
No shares were issued to Directors as part of compensation during the year ended 30 June 2022.
4,508,905 shares and 4,000,000 performance rights were issued to Directors as part of compensation during
the year ended 30 June 2021.
21
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Options
On 16 November 2021, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each, expiring
16 November 2024 to Directors of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the inputs
to the model used for the valuation of the options:
Grant Date
16/11/2021
Expiry Date
16/11/2024
Exercise
Price
$0.0593
Share Price
at Grant
Date
$0.048
Expected
Volatility
100.0%
Risk-free
Interest
Rate
1.02%
Fair Value
per Option
$0.0278
The share-based payment expense recognised in relation to options over ordinary shares granted, and the
value of options exercised and lapsed for directors as part of compensation during the year ended 30 June
2022 are set out below:
Share-based payment
expense of options
granted during the
year
$
Value of options
exercised during
the year
$
Value of
options lapsed
during the year
$
Remuneration
consisting of
options for the
year 2022
%
41,638
55,517
27,758
-
-
-
-
-
-
29%
22%
36%
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
On 1 February 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring 1
February 2025 to a Director of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the inputs
to the model used for the valuation of the options:
Grant Date
01/02/2022
Expiry Date
01/02/2025
Exercise
Price
$0.059
Share Price
at Grant
Date
$0.038
Expected
Volatility
100.0%
Risk-free
Interest
Rate
1.23%
Fair Value
per Option
$0.0203
The share-based payment expense recognised in relation to options over ordinary shares granted, and the
value of options exercised and lapsed for directors as part of compensation during the year ended 30 June
2022 are set out below:
22
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Share-based payment
expense of options
granted during the
year
$
Value of options
exercised during
the year
$
Value of
options lapsed
during the year
$
Remuneration
consisting of
options for the
year 2022
%
20,276
-
-
50%
Directors
Stephen Bodon
No options held by Directors of the Company were exercised during the year ended 30 June 2022.
During the year ended 30 June 2021, on 27 November 2020, the Company issued 9,000,000 unlisted options
exercisable at $0.0957 each, expiring 27 November 2024 to Directors of the Company.
The Black-Scholes option pricing model was used to value the options and the following table lists the inputs
to the model used for the valuation of the options:
Grant Date
23/11/2020
Expiry Date
27/11/2024
Exercise
Price
$0.0957
Share Price
at Grant
Date
$0.063
Expected
Volatility
98.3%
Risk-free
Interest
Rate
0.20%
Fair Value
per Option
$0.0381
The share-based payment expense recognised in relation to options over ordinary shares granted, and the
value of options exercised and lapsed for directors as part of compensation during the year ended 30 June
2021 are set out below:
Share-based payment
expense of options
granted during the
year
$
Value of options
exercised during
the year
$
Value of
options lapsed
during the year
$
Remuneration
consisting of
options for the
year 2021
%
114,431
114,431
114,431
-
-
-
-
-
-
-
-
-
-
164,204
54,735
-
82,102
-
17%
41%
68%
-
-
-
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
Terence Topping
Andrew Haythorpe
On 30 April 2021, 5,500,000 unlisted options exercisable at $0.25 each held by Directors of the Company,
lapsed unexercised.
23
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Performance Rights
No Director performance rights were granted, exercised, sold or lapsed during the year ended 30 June 2022.
In comparison, during the year ended 30 June 2021, the Company granted 4,000,000 performance rights
expiring 3 July 2022 to Mr Richard Hill. The performance rights were approved by shareholders at the
Company’s General Meeting held on 24 August 2020, and valued at $0.063 per right, being the share price on
the grant date, which reflects their fair value in line with AASB 2 Share-Based Payment.
The Performance Rights were subject to satisfaction of the following milestones:
Number
Milestone
2,000,000
The volume weighted average price of Shares equals or
exceeds $0.05 for 15 consecutive trading days.
2,000,000
ASX announcement of the Company acquiring a new
exploration project with significant exploration and/or
exploitation potential.
Expiry Date
3 July 2022
3 July 2022
On 27 November 2020, 4,000,000 performance rights were converted to fully paid ordinary shares upon
having met the associated milestones.
The share-based payment expense recognised in relation to performance rights over ordinary shares granted.
The value of performance rights exercised and/or lapsed during the year ended 30 June 2021, are set out
below:
Share-based payment
expense of
performance rights
granted during the
year
$
Value of
performance rights
exercised during
the year
$
Value of
performance
rights lapsed
during the year
$
Remuneration
consisting of
performance
rights for the
year2020
%
252,000
-
-
-
252,000
-
-
-
-
-
-
-
38%
-
-
-
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
24
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
DIRECTORS’ INTERESTS
Shareholding
The number of shares in the Company held during the financial year by each director and other members of
key management personnel of the Group, including their personally related parties, is set out below:
Opening
Balance No.
Granted as
Compensation
No.
Additions
No.
Disposals /
Other
No.
8,577,097
4,254,453
1,460,559
-
14,292,109
-
-
-
-
-
555,5561
555,5561
555,5561
-
1,666,668
Closing Balance
/ At Date of
Resignation
No.
-
-
-
-
-
9,132,653
4,810,009
2,016,115
-
15,958,777
30 June 2022
Directors
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
Total
Opening
Balance No.
Granted as
Compensation
No.
Additions
No.
Disposals /
Other
No.
Closing Balance
No.
4,000,0002
254,4534
127,2263
-
-6
-
4,381,679
30 June 2021
Directors
-
Richard Hill
4,000,000
Yaxi Zhan
1,333,333
Grant Mooney
-
Stephen Bodon
1,333,333
Terence Topping
3,333,333
Andrew Haythorpe
9,999,999
Total
1 Shares issued for participation in the Company’s Placement raising
2 Shares issued in lieu of cash for services from date of appointment (3 July 2020) until 31 December 2020
3 Shares issued in lieu of cash for settlement of director fees for the period March 2020 to June 2020.
4 Shares issued on conversion of vested performance rights
5 Shares held at date of appointment
6 127,226 shares issued in lieu of cash for settlement of director fees for the period March 2020 to June 2020
on 31 August 2021 post-resignation on 3 July 2021
4,000,0004
-
-
-
-
-
4,000,000
8,577,097
4,254,453
1,460,559
-
1,333,333
3,333,333
18,958,775
577,0975
-
-
-
-
-
577,097
25
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Option Holding
The following table discloses the movement in Directors’ and Key Management Personnel’s Options during
the year.
Opening
Balance
No.
Options
Granted
No.
Options
Exercised
No.
Options
Lapsed
No.
3,000,000 1,500,000
3,000,000 2,000,000
3,000,000 1,000,000
- 1,000,000
9,000,000 5,500,000
-
-
-
-
-
30 June 2022
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
Total
Closing
Balance/ At
Date of
Resignation
No.
- 4,500,000
- 5,000,000
- 4,000,000
- 1,000,000
- 14,500,000
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 22
No.
Not Vested
at 30 June
22
No.
- 4,500,000
- 5,000,000
- 4,000,000
- 1,000,000
- 14,500,000
-
-
-
-
-
30 June 2021
Richard Hill
Yaxi Zhan
Grant Mooney
Terence
Topping
Andrew
Haythorpe
Total
Opening
Balance
No.
Options
Granted
No.
- 3,000,000
3,000,000 3,000,000
1,000,000 3,000,000
Options
Exercised
No.
Options
Lapsed
No.
Closing
Balance/ At
Date of
Resignation
No.
-
3,000,000
- (3,000,000) 3,000,000
- (1,000,000) 3,000,000
1,500,000
-
-
-
- (1,500,000)
-
-
-
-
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 21
No.
Not Vested
at 30 June
21
No.
- 3,000,000
- 3,000,000
- 3,000,000
-
-
-
-
5,500,000 9,000,000
- (5,500,000) 9,000,000
- 9,000,000
-
-
-
-
-
-
26
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
Performance Rights Holding
The following table discloses the movement in Directors’ and Key Management Personnel’s Performance
Rights during the year.
Performance
Rights
Granted
No.
Performance
Rights
Exercised
No.
Opening
Balance
No.
Closing
Balance/ At
Date of
Resignation
No.
Performance
Rights Lapsed
No.
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 22
No.
Not
Vested
at 30 June
22
No.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30 June 2022
Richard Hill
Yaxi Zhan
Grant Mooney
Stephen Bodon
Total
Performance
Rights
Granted
No.
4,000,000
-
-
-
Performance
Rights
Exercised
No.
(4,000,000)
-
-
-
-
-
4,000,000
(4,000,000)
Opening
Balance
No.
-
-
-
-
-
-
30 June 2021
Richard Hill
Yaxi Zhan
Grant Mooney
Terence Topping
Andrew
Haythorpe
Total
End of Remuneration Report
Closing
Balance/ At
Date of
Resignation
No.
Performance
Rights Lapsed
No.
Vested
During the
Year
No.
Vested and
Exercisable
at 30 Jun 21
No.
Not
Vested
at 30 June
21
No.
-
-
-
-
-
-
- 4,000,000
-
-
-
-
-
-
-
-
- 4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
27
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
SHARES UNDER OPTION
Unissued ordinary shares of the Company at the date of this report are as follows:
Grant Date
28/05/2020
30/08/2020
27/11/2020
27/11/2020
23/11/2020
16/11/2021
01/02/2022
22/04/2022
Expiry Date
09/06/2023
02/09/2023
27/11/2022
27/11/2022
27/11/2024
16/11/2024
01/02/2025
22/10/2024
Exercise Price
$0.06
$0.06
$0.0959
$0.0957
$0.0957
$0.0593
$0.059
$0.10
Number under option
5,000,000
5,000,000
1,500,000
7,500,000
9,000,000
4,500,000
1,000,000
10,000,000
At the date of this report, there were 500,000 performance rights under issue.
No person entitled to exercise the options had or has any right by virtue of the option to participate in any
share issue of the company or of any other body corporate.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Group or the Group, or to intervene in any proceedings to which the Group is a
party, for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section
237 of the Corporations Act 2001.
DIRECTORS’ INDEMNITIES
The Group has indemnified the directors and executives of the Group for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Group paid a premium in respect of a contract to insure the directors and
executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract
of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
AUDITOR’S INDEMNITIES
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify the
auditor of the Group or any related entity against a liability incurred by the auditor. During the financial year,
the Group has not paid a premium in respect of a contract to insure the auditor of the Group or any related
entity.
CORPORATE GOVERNANCE
The Group’s Appendix 4G is released to ASX on the same day the Annual Report is released. Accelerate
Resources Limited’s Corporate Governance Statement, and the Company’s Policies, Charters and Procedures,
can be all found on the Company’s website.
28
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NON-AUDIT SERVICES
There were no non-audit services provided during the financial year by the auditor (2021: $250). The Board
has established certain procedures to ensure that the provision of non-audit services are compatible with,
and do not compromise the external auditor's independence requirements of the Corporations Act 2001 for
the following reasons:
• All non-audit services have been reviewed and approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
• None of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and
Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a
management or decision-making capacity for the Group, acting as advocate for the Group or jointly
sharing economic risks and rewards.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF AUDITORS
There are no officers of the company who are former partners of Hall Chadwick WA Audit Pty Ltd .
AUDITOR INDEPENDENCE
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act
2001 is set out immediately after this directors' report.
AUDITOR
Hall Chadwick WA Audit Pty Ltd were appointed auditors in accordance with section 327 of the Corporations
Act 2001, to perform the year-end audit, replacing RSM Australia Partners.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Yaxi Zhan
Managing Director
30 September 2022
29
To the Board of Directors,
AUDITOR’S
CORPORATIONS ACT 2001
INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE
As lead audit director for the audit of the financial statements of Accelerate Resources Limited for the financial
year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
• any applicable code of professional conduct in relation to the audit.
Yours Faithfully
HALL CHADWICK WA AUDIT PTY LTD
CHRIS NICOLOFF CA
Director
Dated this 30th day of September 2022
Perth, Western Australia
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME
For the year ended 30 June 2022
Revenue
Other income
Expenses
Corporate and professional expenses
Director and employee benefits
Administration expenses
Other expenses
Depreciation
Exploration expenditure
Impairment of exploration expenditure
Reversal of impairment of security bonds
Share-based payments expenses
Loss before income tax expense
Income tax expense
Loss before other comprehensive income
Other comprehensive income
Items that will not be subsequently
reclassified to profit or loss:
Changes in fair value of financial assets –
fair value OCI
Consolidated
2022
$
Consolidated
2021
$
Note
1,500
1,500
(234,081)
(341,987)
(244,496)
(136,599)
(2,203)
(118,440)
-
-
(145,224)
(1,221,530)
-
(1,221,530)
125,535
125,535
(206,980)
(542,738)
(83,545)
(158,550)
(6,025)
(12,259)
(1,708,602)
59,000
(839,891)
(3,374,055)
-
(3,374,055)
5
14
7
(268,208)
-
Total comprehensive loss
(1,489,738)
(3,374,055)
Earnings per share for (loss) from
continuing operations attributable to the
ordinary equity holders of the Group
Basic and diluted earnings per share (cents)
13
(0.66)
(2.37)
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
31
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
ASSETS
Current Assets
Cash and cash equivalents
Other current assets
Asset held for sale
Total Current Assets
Non-Current Assets
Exploration and evaluation expenditure
Other non-current assets
Plant and equipment
Total Non-Current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Deferred consideration
Provision
Total Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Total Equity
Consolidated
2022
$
Consolidated
2021
$
Note
3
4
5
5
4
6
8
5
9
10
11
2,313,957
112,351
1,000,000
3,426,308
2,121,929
1,131,223
11,426
3,264,578
1,232,440
81,328
1,000,000
2,313,768
912,356
549,571
5,454
1,467,381
6,690,886
3,781,149
266,167
-
63,857
330,024
68,376
36,000
39,496
143,872
330,024
143,872
6,360,862
3,637,277
12,948,619
2,454,799
(9,042,556)
6,360,862
9,090,949
2,367,354
(7,821,026)
3,637,277
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
32
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
Issued
Capital
$
Note
Accumulated
Reserves
$
Losses Total Equity
$
$
6,225,335
1,561,914
(4,446,971)
3,340,278
-
-
-
-
-
-
(3,374,055)
-
(3,374,055)
(3,374,055)
-
(3,374,055)
Consolidated
Balance as at 1 July 2020
Loss after income tax
Other comprehensive income
Total comprehensive loss for
the period
Shares issued
Share issue costs
Consideration shares issued
Performance rights issued
Conversion of performance
rights
Options issued
Balance as at 30 June 2021
10
10,11
5,10
11
10,11
11
2,984,061
(388,447)
18,000
-
252,000
-
9,090,949
-
217,549
-
252,000
-
-
-
-
2,984,061
(170,898)
18,000
252,000
(252,000)
587,891
2,367,354
-
-
(7,821,026)
-
587,891
3,637,277
Consolidated
Loss after income tax
Other comprehensive income
Total comprehensive loss for
the period
-
-
-
-
(268,208)
(1,221,530)
-
(1,221,530)
(268,208)
(268,208)
(1,221,530)
(1,489,738)
Shares issued
Share issue costs
Performance rights issued
Director options issued
Options issued
Balance as at 30 June 2022
10
10,11
11
11
11
4,044,000
(186,330)
-
-
-
12,948,619
-
-
34
145,189
210,430
2,454,799
-
-
-
-
-
(9,042,556)
4,044,000
(186,330)
34
145,189
210,430
6,360,862
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
33
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
Consolidated
2022
$
Consolidated
2021
$
Note
Cash Flows from Operating Activities
Payments to suppliers and employees
Interest received
Other income received
Cash flow boost
Net cash (outflows) from operating activities
Cash Flows from Investing Activities
Purchase of plant and equipment
Payments for exploration and evaluation expenditure
Amounts advanced to external party
Cash acquired from asset acquisition
Proceeds from sale of asset
Net cash (outflows) from investing activities
15
6
4
5
Cash Flows from Financing Activities
Proceeds from issue of shares
Capital raising cost
Payment of leases
Net cash inflow from financing activities
(793,885)
-
1,500
-
(792,385)
(8,175)
(1,031,593)
-
-
-
(1,039,768)
3,100,000
(186,330)
-
2,913,670
(747,544)
127
77,784
32,410
(637,223)
(4,590)
(396,889)
(549,571)
-
135,000
(816,050)
2,700,000
(170,898)
-
2,529,102
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the
financial year
Cash and cash equivalents at the end of the financial
year
1,081,517
1,075,829
1,232,440
156,611
3
2,313,957
1,232,440
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
34
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements and notes represent those of Accelerate Resources Limited (the
‘Company’) and its controlled entities (‘Group’). The financial report was authorised for issue by the Board
on 30 September 2022. The principal accounting policies adopted in the preparation of the financial
statements are set out below. These policies have been consistently applied to all the years presented,
unless otherwise stated.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also
comply with International Financial Reporting Standards as issued by the International Accounting
Standards Board ('IASB').
In accordance with the Corporations Act 2001, these financial statements present the results of the Group.
Supplementary information about the Company is disclosed in Note 21: Parent Entity Disclosures.
Except for cash flow information, the financial report has been prepared on an accruals basis and is based
on historical costs, modified where applicable, by the measurement at fair value of selected financial
assets and financial liabilities. Cost is based on the fair values of the consideration given in exchange for
assets.
The financial statements have been presented in Australian dollars (AUD), which is the Group’s functional
and presentation currency.
Going Concern
The financial statements have been prepared on the going concern basis, which contemplates continuity
of normal business activities and the realisation of assets and discharge of liabilities in the normal course
of business.
As disclosed in the financial statements, the Group incurred a loss of $1,489,738 (30 June 2021:
$3,374,055) and had net cash outflows from operating and investing activities of $1,074,005 (30 June
2021: $637,223) and $854,148 (30 June 2021: $816,050) respectively for the year ended 30 June 2022.
As at that date, the Group had net current assets of $3,096,284 (30 June 2021: $2,169,896). The ability of
the Group to continue as a going concern is principally dependent upon the ability of the Group to secure
funds by raising additional capital from equity markets and managing cash flows in line with available
funds.
35
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Management have prepared a cash flow forecast, which indicates that the Group will have sufficient cash
flows to meet its commitments and working capital requirements for the 12 month period from the date
of this report. The ability of the Group to continue as a going concern is dependent on the success of the
fund raising and the Group generating cashflows from operating activities and managing costs in line with
available funds.
Based on the cash flow forecasts and other factors referred to above, the Directors are satisfied that the
going concern basis of preparation is appropriate. In particular, given the Group’s history of raising capital
to date, the Directors are confident of the Group’s ability to raise additional funds as and when they are
required.
Should the Group not achieve the matters set out above, there is material uncertainty as to whether the
Group will continue as a going concern and therefore whether it will realise its assets and extinguish its
liabilities in the normal course of business and at the amounts stated in the financial report.
The full year financial report does not contain any adjustments relating to the recoverability and
classification of recorded assets or to the amounts or classification of recorded assets or liabilities that
might be necessary should the Group not be able to continue as a going concern.
The Directors believe that it is reasonably foreseeable that the Group will continue as a going concern
and that it is appropriate to adopt the going concern basis in the preparation of the financial report after
consideration of the following factors:
• The Group has the ability to curtail administrative, discretionary exploration and overhead cash
outflows as and when required.
New or amended Accounting Standards and Interpretations adopted
During the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards
and Interpretations issued by the AASB that are relevant to the Group and effective for the year-end
reporting period beginning on or after 1 July 2021. Any new or amended standards and interpretations
that are not yet mandatory have not been early adopted.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are
not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30
June 2022. None of the new or amended Accounting Standards and Interpretations, most relevant to the
Group, are expected to have a material impact on the Group’s financial statements.
36
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
a) Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the consolidated statement of cash flows presentation purposes, cash and cash equivalents also
includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of
financial position.
b) Other Assets
Other receivables are recognised at amortised cost, less any provision for impairment.
c) Asset Held for Sale
Assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continued use. They are measured at the lower of their carrying amount
and fair value less costs of disposal. For assets to be classified as held for sale, they must be available for
immediate sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the fair value less costs of
disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of an asset,
but not in excess of any cumulative impairment loss previously recognised.
Assets are not depreciated or amortised while they are classified as held for sale. Interest and other
expenses attributable to the liabilities of assets held for sale continue to be recognised.
Assets classified as held for sale are presented separately on the face of the consolidated statement of
financial position, in current assets.
d) Exploration and Evaluation Assets
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through
the successful development of the area or where activities in the area have not yet reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are written off in full against profit in the period in
which the decision to abandon the area is made. When production commences, the accumulated costs
for the relevant area of interest are amortised over the life of the area according to the rate of depletion
of the economically recoverable reserves.
37
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A regular review is undertaken of each area of interest to determine the appropriateness of continuing
to carry forward costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and
are included in the costs of that stage. Site restoration costs include the dismantling and removal of
mining plant, equipment and building structures, waste removal, and rehabilitation of the site in
accordance with clauses of the mining permits. Such costs have been determined using estimates of
future costs, current legal requirements and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs
of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly, the costs have been determined on the basis
that the restoration will be completed within one period of abandoning the site.
e) Plant and Equipment
Recognition and measurement
Items of plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.
The gain or loss on disposal of an item of plant and equipment is determined by comparing the proceeds
from disposal with the carrying amount of plant and equipment and is recognised net within other income
/ other expenses in profit or loss.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Depreciation is recognised in profit or
loss on a diminishing value basis over the estimated useful lives of each part of an item of plant and
equipment, since this most closely reflects the expected pattern of consumption of the future economic
benefits embodied in the asset.
The estimated useful lives for the current and comparative periods are as follows:
Office equipment 3 -10 years
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
38
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Non-Financial Assets
f)
At each reporting date, the Group reviews the carrying amounts of its assets to determine whether there
is any indication that those assets have suffered an impairment loss. An asset is impaired if objective
evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the
loss event had a negative effect on the estimated future cash flows of that asset that can be estimated
reliably. If any such indication exists, the recoverable amount of the asset is estimated in order to
determine the extent of the impairment loss. When a subsequent event causes the amount of impairment
loss to decrease, the decrease in impairment loss is reversed through profit or loss.
g) Trade and Other Payables
These amounts represent liabilities for goods and services provided to the entity prior to the end of the
financial period and which are unpaid. Due to their short-term nature they are measured at amortised
cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of
recognition.
h) Leases
The Group as a lessee
For any new contracts entered into on or after 1 July 2019, the Group considers whether a contract is, or
contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an
asset (the underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which are
whether:
•
The contract contains an identified asset, which is either explicitly identified in the contract or
implicitly specified by being identified at the time the asset is made available to the Group
The Group has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract
The Group has the right to direct the use of the identified asset throughout the period of use. The
Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used
throughout the period of use.
•
•
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the
statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs
to dismantle and remove the asset at the end of the lease, and any lease payments made in advance of
the lease commencement date (net of any incentives received).
39
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group
also assesses the right-of-use asset for impairment when such indicators exist. At the commencement
date, the Group measures the lease liability at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group’s
incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments
(including in substance fixed), variable payments based on an index or rate, amounts expected to be
payable under a residual value guarantee and payments arising from options reasonably certain to be
exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for
interest. It is remeasured to reflect any reassessment or modification, or if there are changes in in-
substance fixed payments. When the lease liability is remeasured, the corresponding adjustment is
reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these
are recognised as an expense in profit or loss on a straight-line basis over the lease term. On the statement
of financial position, right-of-use assets have been included in plant and equipment (except those meeting
the definition of investment property) and lease liabilities have been included in trade and other payables.
Current and non-current classification
i)
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the entity's normal operating cycle; it is held primarily for the purpose of trading; it is
expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent
unless restricted from being exchanged or used to settle a liability for at least 12 months after the
reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the entity's normal operating
cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the
reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12
months after the reporting period. All other liabilities are classified as non-current.
40
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Issued capital
j)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of tax, from the proceeds.
k) Earnings Per Share
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic earnings
per share is calculated by dividing the profit or loss after income tax attributable to ordinary shareholders
of the Company by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share is calculated by dividing the profit or loss after income tax attributable to
ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding
during the period, adjusted for the effects of all dilutive potential ordinary shares, which comprise share
options granted to employees.
l) Revenue
Interest
Interest revenue is recognised as interest accrues using the effective interest method.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
m) Employee Benefits
Wages and salaries
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled
wholly within 12 months of the reporting date are recognised in employee provisions in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when
the liabilities are settled.
Superannuation
The amount charged to the profit and loss in respect of superannuation represents the contributions paid
or payable by the Group to the employee’s superannuation funds.
Employee Benefits on-costs
Employee benefit on-costs, including payroll tax, are recognised when paid or payable by the Group.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
41
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange
of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date
and expected price volatility of the underlying share, the expected dividend yield and the risk free interest
rate for the term of the option, together with non-vesting conditions that do not determine whether the
Group receives the services that entitle the employees to receive payment. No account is taken of any
other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous periods.
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms
and conditions on which the award was granted. The cumulative charge to profit or loss until settlement
of the liability is calculated as follows:
•
•
during the vesting period, the liability at each reporting date is the fair value of the award at that
date multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of
the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is
the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has been
met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has
not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date of
modification.
42
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the
condition is treated as a cancellation. If the condition is not within the control of the Group or employee
and is not satisfied during the vesting period, any remaining expense for the award is recognised over the
remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any
remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled
award, the cancelled and new award is treated as if they were a modification.
Income Taxes
n)
Income tax expense or revenue comprises current and deferred tax. Current and deferred taxes are recognised
in profit or loss except to the extent that it relates to a business combination, or items recognised directly in
equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax
rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect
of previous years.
Deferred tax assets and liabilities are recognised in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences, the initial recognition
of assets and 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 and associates
and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable
future. In addition, deferred tax is not recognised for taxable temporary differences arising on the initial
recognition of goodwill.
Deferred tax is measured at the tax rates expected to apply when the assets are recovered or liabilities
are settled, based on those rates which are enacted or subsequently enacted for each jurisdiction.
Deferred tax assets are recognised for unused tax losses, tax credits and deductible temporary differences
to the extent that it is probable that future taxable profits will be available against which they can be
utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current
tax assets and liabilities are offset where the entity has a legally enforceable right to offset and intends
either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
43
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
o) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST. The net
amount of GST recoverable from, or payable to, the taxation authority is included as a current asset or
liability in the statement of financial position.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component
of investing and financing activities, which is disclosed as operating cash flows.
p) Segment Reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that related to transactions with any
of the Group’s other components. A geographical segment is engaged in providing products or services
within a particular economic environment and is subject to risks and returns that are different from those
of segments operating in other economic environments. The Board (Chief Operating Decision Makers
“CODM”) is responsible for the allocation of resources to operating segments and assessing their
performance.
q) Principles of Consolidation
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from
the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the Group
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in
ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to the parent.
44
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of
profit or loss and other comprehensive income, statement of financial position and statement of changes
in equity of the Group. Losses incurred by the Group are attributed to the non-controlling interest in full,
even if that results in a deficit balance.
Fair value measurement
r)
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes
that the transaction will take place either: in the principal market; or in the absence of a principal market,
in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interests. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed at
each reporting date and transfers between levels are determined based on a reassessment of the lowest
level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value of
an asset or liability from one period to another, an analysis is undertaken, which includes a verification of
the major inputs applied in the latest valuation and a comparison, where applicable, with external sources
of data.
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and
expenses. Management bases its judgements, estimates and assumptions on historical experience and on
other various factors, including expectations of future events, management believes to be reasonable
under the circumstances. The resulting accounting judgements and estimates will seldom equal the
related actual results. The judgements estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within
the next financial year are discussed below.
45
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value is determined by using
either the Binomial or Black-Scholes model taking into account 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.
2. CRITICIAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised and are only carried forward to the extent that
they are expected to be recouped through the successful development of the area or where activities in
the area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves. Key judgements are applied in considering the costs to be capitalised
which includes determining expenditures directly related to these activities and allocating overheads
between those that are expensed and capitalised.
3. CASH AND CASH EQUIVALENTS
Cash at bank
4. OTHER ASSETS
Current
Accounts receivable
GST receivable
Deposit
Prepayments
Note
Consolidated
2022
$
2,313,957
2,313,957
Consolidated
2021
$
1,232,440
1,232,440
Consolidated
2022
$
-
48,582
46,000
17,769
112,531
Consolidated
2021
$
-
9,264
60,000
12,064
81,328
46
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
4.
OTHER ASSETS (CONTINUED)
Non-Current
Other asset – Currie Rose Resources Inc 1
Other asset – Vytas Resources Pty Ltd 2
7
Consolidated
2022
$
281,363
849,860
1,131,223
Consolidated
2021
$
549,571
-
549,571
1 After announcing on 30 April 2021 that the Company had completed its Due Diligence on the Exploration
Program on the Rossland High-Grade Gold project in Canada and elected to convert its expenditure to
8,333,333 shares in Currie Rose, the Company received confirmation in July 2021 that the shares had been
issued. The fair value has been determined directly by reference to published price quotations in an active
market.
The Company announced on 30th April 2021, that it had completed its Due Diligence on the Exploration
Program and elected to convert its expenditure to 8,333,333 shares in Currie Rose. During the year to 30
June 2022, the Company received confirmation that the shares had been issued. The fair value has been
determined directly by reference to published price quotations in an active market.
2 Pursuant to the binding term sheet entered into with Vytas Resources Pty Ltd (“Vytas”) on 2 September
2021, Accelerate made available A$250,000 to Vytas in order to fund the work program on the Tambellup
and Midwest Silica Sand Projects, preparing for Vytas’ initial public offering and contributions to working
capital.
The Company announced on 30 November 2021, that the transaction had completed and Accelerate had
been issued with 27,120,000 shares, equal to 33% interest in Vytas.
47
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
5. EXPLORATION AND EVALUATION EXPENDITURE
Exploration and evaluation expenditure – Western Australia
Exploration and evaluation expenditure – Tasmania
Opening balance
Additions
Impairment 3
Reclassification of balance to asset held for sale 3
Closing balance
Consolidated
2022
$
2,121,929
2,121,929
Consolidated
2021
$
912,356
912,356
-
-
-
-
-
2,687,405
21,197
(1,708,602)
(1,000,000)
-
Exploration and evaluation expenditure – Western Australia
Opening balance
Additions 1
Sale of tenements 2
Closing balance
912,356
1,209,573
-
2,121,929
619,117
416,648
(123,409)
912,356
1 In February 2022, the Company executed an agreement to acquire the Barramine Manganese Project
from Attstar Pty Ltd (“Attstar”) for a purchase consideration which consisted of $50,000, 10,000,000
fully paid Ordinary shares and 10,000,000 Options exercisable at $0.10 on or before 2.5 years from issue.
The acquisition of Attstar has been treated as an asset acquisition. Details of the asset acquisition are
as follows:
Net assets acquired
Cash
Consideration shares in Accelerate Resources Limited issued to vendor*
Consideration options in Accelerate Resources Limited issued to vendor **
Fair value of consideration transferred
Fair value
$
-
50,000
500,000
210,430
760,430
* 10,000,000 fully paid ordinary shares were issued at 5 cents as partial payment for the acquisition (Note
10).
** 10,000,000 options were issued (Note 11).
48
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
5.
EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
Included in the prior year additions is the acquisition of exploration and evaluation assets amounting to
$54,000 from Volcanic Resources Pty Ltd (“Volcanic”). On 27 November 2020, the Company acquired
Volcanic for a purchase consideration of $54,000 which consisted of 250,000 fully paid ordinary shares
and contingent consideration of 500,000 shares. The acquisition of Volcanic has been treated as an asset
acquisition. Details of the asset acquisition are as follows:
Net assets acquired
Consideration shares in Accelerate Resources Limited issued to vendor*
Contingent consideration **
Fair value of consideration transferred
Fair value
$
-
18,000
36,000
54,000
* 250,000 fully paid ordinary shares were issued at 7.2 cents as partial payment for the acquisition (Note
10).
** 500,000 fully paid ordinary shares to be issued at 7.2 cents upon last to occur of settlement and the
grant of the tenement to the Company by the Western Australia Department of Mines, Industry
Regulation and Safety.
2 In September 2020, the Company sold the title and rights of the Sandstone project, comprising of
exploration license E57/1118, to Firehouse WA Pty Ltd for a cash consideration of $15,000 (excl. GST).
In May 2021, the Company sold the title and rights of the Mt Monger Gold project, comprising of
exploration licenses E25/625 and E25/565, to Mt Monger Resources Ltd for a cash consideration of
$120,000 (excl. GST). Option fees of $60,000 (excl. GST) had already been received by the Company prior
to execution of the sale. A further $50,000 is receivable as deferred cash consideration upon the
delineation of an Inferred Mineral Resources of at least 20,000 oz. at >1.5 g/t gold.
3 In June 2021, the Company announced that it had entered into a Heads of Agreement, granting an option
to unlisted company Stunalara Metals Limited (“Stunalara”), to acquire 100% of the legal and beneficial
interest in the Company’s Mt Read Project in Tasmania. The Mt Read Project comprises exploration
license EL06/2013. Upon exercising of the option, the Company will receive fully paid ordinary shares in
Stunalara to the value of $1,000,000 at a deemed issue price equal to the price per share offered to the
public under Stunalara’s proposed initial public offering or the 1-month VWAP price of an RTO vehicle
prior to a deal being announced for the listing via a reverse takeover (back door listing). The Company
received a non-refundable option fee of $15,000 (excl GST) for an exclusive option period to 30
September 2021 and a further option fee of $15,000 (excl GST) to extend the period to 30 June 2022.
49
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
5.
EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
Subsequently, the Company extended the Option period for a further 12 months to 30 June 2023, and
the Company will receive revised fully paid ordinary shares in Stunalara to the value of $1,200,000, at a
at a deemed issue price equal to:
the price per share offered to the public in ListCo’s initial public offering; or
the 30 trading day VWAP price of an RTO vehicle prior to a deal being announced for the
a.
b.
listing of either ListCo or the Purchaser via a reverse takeover (Back Door Listing),
(Consideration Shares).
As a result of the above, the underlying exploration & evaluation costs relating to the Mt Read Project
have been reclassified as held for sale as at 30 June 2022. During the year to 30 June 2021, an impairment
of $1,708,602 was recognised prior to reclassification to reflect the fair value of the Project.
Asset held for sale – Mt Read Project (Note 5, footnote 3)
6. PLANT AND EQUIPMENT
Plant and equipment
- at cost
- accumulated depreciation
Plant and equipment – movements
Opening balance
Additions
Depreciation
Closing balance
7. FINANCIAL ASSETS – FAIR VALUE OCI
At beginning of year
Changes in fair value
At end of year
Consolidated
2022
$
1,000,000
Consolidated
2021
$
1,000,000
Consolidated
2022
$
Consolidated
2021
$
27,342
(15,916)
11,426
5,454
8,175
(2,203)
11,426
19,166
(13,712)
5,454
6,889
4,590
(6,025)
5,454
Consolidated
2022
$
549,571
(268,208)
281,363
Consolidated
2021
$
-
-
-
50
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
7.
FINANCIAL ASSETS – FAIR VALUE OCI (CONTINUED)
Financial assets – fair value OCI, consist of investments in TSX-V listed company. The fair value of current
financial assets has been determined directly by reference to published price quotations in an active
market. This resulted in a net loss on revaluation of $268,208 as at 30 June 2022, recognised in other
comprehensive income.
8. TRADE AND OTHER PAYABLES
Trade payables
Accruals
Other payables
Consolidated
2022
$
216,687
42,815
6,665
266,167
Consolidated
2021
$
11,481
37,236
19,659
68,376
Trade creditors, excluding related party payables, are expected to be paid on 30-day terms.
9. PROVISION
Employee annual leave provision
Consolidated
2022
$
63,857
63,857
Consolidated
2021
$
39,496
39,496
51
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
10. ISSUED CAPITAL
Ordinary shares on issue, fully paid
Consolidated
30-Jun-22
No.
263,458,899
Consolidated Consolidated Consolidated
30-Jun-21
$
9,090,949
30-Jun-21
No.
156,847,794
30-Jun-22
$
12,948,619
Reconciliation of Movement in Issued Capital
Closing balance at 30 June 2020
Placement – tranche 1
Placement – tranche 1
Shares to Directors upon appointment 1
Shares to Directors in lieu of services 2
Placement – tranche 2
Placement – tranche 2
Conversion of performance rights 3
Acquisition of Volcanic (Note 5)
Share issue costs
Closing balance at 30 June 2021
Placement – tranche 1
Placement – tranche 2
Shares to Finders Fee 4
Acquisition of Volcanic (Note 5)
Acquisition of Braeside West and Ripon
Hills5
Acquisition of Barramine (Note 5)
Share Issue Cost
Closing balance at 30 June 2022
Shares
No.
79,366,666
19,841,666
14,880,557
4,000,000
508,905
24,649,440
9,350,560
4,000,000
250,000
-
156,847,794
38,899,428
47,211,677
2,000,000
500,000
Date
Issue Price
$
14-Jul-20
31-Aug-20
31-Aug-20
31-Aug-20
11-Sep-20
27-Nov-20
27-Nov-20
27-Nov-20
20-Sep-21
16-Nov-21
16-Nov-21
16-Nov-21
0.0288
0.0288
0.063
0.063
0.05
0.05
0.063
0.072
0.036
0.036
0.048
0.072
Amount
$
5,661,905
571,440
428,560
252,000
32,061
1,232,472
467,528
252,000
18,000
(388,447)
9,090,949
1,400,379
1,699,621
96,000
36,000
8,000,000
01-Dec-21
0.039
312,000
21-Apr-22
0.05
10,000,000
-
263,458,899
500,000
(186,330)
12,948,619
* Total value of share capital issued during the year ended 30 June 2022 amounted to $4,044,000.
1 On 31 August 2020, 4,000,000 shares, were issued to Richard Hill in lieu of cash for services from date of
appointment (3 July 2020) until 31 December 2020. The shares were valued at 6.3 cents per share being
the share price on the grant date of 24 August 2020, the date of the Company’s General Meeting at which
the shareholders approved the grant of the shares, which reflects their fair value in line with AASB 2 Share-
Based Payment
2 On 31 August 2020, 508,905 shares were issued to Directors in settlement of director fees for the period
March 2020 to June 2020. The shares were valued at 6.3 cents per share being the share price on the
grant date of 24 August 2020, the date of the general meeting the shareholders approved the grant of the
shares, which reflects their fair value in line with AASB 2 Share-Based Payment.
52
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
10. ISSUED CAPITAL (CONTINUED)
3 On 27 November 2020, 4,000,000 performance rights granted to Richard Hill converted to fully paid
ordinary shares having met the associated milestones (Note 11).
4 On 16 November 2021, 2,000,000 fully paid ordinary shares were issued to advisors pursuant to finders’
fee agreements, of which 1,500,000 shares are voluntarily restricted to 15 November 2022.
5 On 1 December 2021, 8,000,000 fully paid ordinary shares were issued for the exercise of the option to
acquire the Mineral Rights on the Ripon Hills and Braeside West Projects in the East Pilbara Manganese
Field.
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the
Group in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares
have no par value and the Company does not have a limited amount of authorised capital. On a show of
hands, every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern,
so that it may continue to provide returns for shareholders and benefits for other stakeholders. The
Group’s capital includes ordinary share capital and financial liabilities, supported by financial assets.
Due to the nature of the Group’s activities, being mineral exploration, it does not have ready access to
credit facilities, with the primary source of funding being equity raisings. Accordingly, the objective of the
Group’s capital risk management is to balance the current working capital position against the
requirements of the Group to meet exploration programmes and corporate overheads. This is achieved
by maintaining appropriate liquidity to meet anticipated operating requirements, with a view to initiating
appropriate capital raisings as required. The Group is not subject to any externally imposed capital
requirements.
Cash and cash equivalents
Trade and other receivables (excludes deposit)
Trade and other payables
Working capital position
Consolidated
2022
$
2,313,957
66,351
(266,167)
2,114,141
Consolidated
2021
$
1,232,440
21,328
(68,236)
1,185,532
53
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES
Options reserve
Performance rights reserve
Fair value reserve
Consolidated
2022
$
2,722,973
34
(268,208)
2,454,799
Consolidated
2021
$
2,367,354
-
2,367,354
Option reserve
Options issued carry no dividend or voting rights. When exercisable, each option is convertible to one
ordinary share.
Closing balance at 30 June 2020
Options issued to consultant 1
Options issued to consultant 2
Options issued to Directors 2
Options issued to Lead Managers 2
Cancelled options 4
Lapsed options 5
Closing balance at 30 June 2021
Options issued to Directors 6
Options issued to Directors 7
Options issued to acquire Barramine8
Options expired 9
Closing balance at 30 June 2022
No. of Options
20,000,000
5,000,000
3,000,000
9,000,000
7,500,000
(1,500,000)
(10,000,000)
33,000,000
4,500,000
1,000,000
10,000,000
(5,000,000)
43,500,000
$
1,561,914
165,614
92,149
343,292
217,549
(13,164)
-
2,367,354
124,913
20,276
210,430
-
2,722,973
1 On 2 September 2020, the Company issued 5,000,000 unlisted options exercisable at $0.06 each,
expiring 2 September 2023, to a consultant of the Company.
2 On 27 November 2020, the Company issued 3,000,000 unlisted options exercisable at $0.0959 each,
expiring 27 November 2022, to a consultant of the Company. 9,000,000 unlisted options exercisable at
$0.0957 each, expiring 27 November 2024 were issued to Directors of the Company. 7,500,000 unlisted
options exercisable at $0.0957 each, expiring 27 November 2022 were issued to the Placement Lead
Managers.
4 On 9 April 2021, the Company cancelled 1,500,000 unvested consultant options.
5 On 30 April 2021, 10,000,000 unlisted options exercisable at $0.25 lapsed unexercised.
54
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES (CONTINUED)
6 On 16 November 2021, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each,
expiring 16 November 2024, to Directors of the Company.
7 On 1 February 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring
1 February 2025, to a Director of the Company.
8 On 22 April 2022, the Company issued 10,000,000 unlisted options exercisable at $0.10 each, expiring
22 October 2024 were issued in relation to the Barramine asset acquisition.
9 On 14 February 2022, 5,000,000 unlisted options exercisable at $0.25 each expired.
Balance at
Start of Year Granted
Summary of options granted as at 30 June 2022 are as follows:
Exercise
Price
Grant Date Expiry Date
$0.25
18/01/2018 12/02/2022
$0.06
28/05/2020 09/06/2023
$0.06
30/08/2020 02/09/2023
31/10/2020 27/11/2022 $0.0959
23/11/2020 27/11/2024 $0.0957
23/11/2020 27/11/2022 $0.0957
16/11/2021 16/11/2024 $0.0593
$0.059
01/02/2022 01/02/2025
$0.10
22/04/2022 22/10/2024
-
5,000,000
-
5,000,000
-
5,000,000
-
1,500,000
-
9,000,000
-
7,500,000
4,500,000
-
-
1,000,000
- 10,000,000
33,000,000 15,500,000
Exercised
-
-
-
-
-
-
-
-
-
-
Balance at
Expired /
End of Year
Cancelled
-
(5,000,000)
5,000,000
-
5,000,000
-
1,500,000
-
9,000,000
-
7,500,000
-
4,500,000
-
-
1,000,000
- 10,000,000
(5,000,000) 43,500,000
Summary of options granted as at 30 June 2021 are as follows:
Exercise
Grant Date Expiry Date
Price
28/04/2017 30/04/2021 $0.25
18/01/2018 30/04/2021 $0.25
18/01/2018 12/02/2022 $0.25
28/05/2020 09/06/2023 $0.06
30/08/2020 02/09/2023 $0.06
31/10/2020 27/11/2022 $0.0959
23/11/2020 27/11/2024 $0.0957
23/11/2020 27/11/2022 $0.0957
Granted
Balance at
Start of
Year
6,000,000
4,000,000
5,000,000
5,000,000
-
-
-
-
- 5,000,000
- 3,000,000
- 9,000,000
- 7,500,000
20,000,000 24,500,000
Exercised
-
-
-
-
-
-
-
-
-
Expired /
Balance at
Cancelled
End of Year
(6,000,000)
-
(4,000,000)
-
-
5,000,000
-
5,000,000
-
5,000,000
(1,500,000)
1,500,000
-
9,000,000
7,500,000
-
(11,500,000) 33,000,000
55
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
11. RESERVES (CONTINUED)
The weighted average exercise price of the outstanding options as at 30 June 2022 was $0.13 (30 June
2021: $0.11). The weighted average remaining contractual life of options outstanding at 30 June 2022
was 1.67 years (30 June 2021: 2.03 years).
Performance rights reserve
Performance rights issued carry no dividend or voting rights. When exercisable, each performance right
is convertible to one ordinary share.
Closing balance at 30 June 2020
Performance rights issued to Director 1
Conversion of performance rights
Closing balance at 30 June 2021
Performance rights issued to a Consultant 2
Closing balance at 30 June 2022
No. of Rights
-
4,000,000
(4,000,000)
-
500,000
500,000
$
-
252,000
(252,000)
-
34
34
1 On 24 August 2020, the Company granted 4,000,000 performance rights expiring 3 July 2022 to a
Director, as approved by shareholders at the Company’s General Meeting held on 24 August 2020. The
performance rights were valued at $0.063 per right, being the share price on the grant date, which reflects
their fair value in line with AASB 2 Share-Based Payment. On 27 November 2020, 4,000,000 performance
rights converted to fully paid ordinary shares having met the associated milestones (Note 10).
2 On 27 June 2022, the Company granted 500,000 performance rights expiring 1 October 2023 to a
Consultant. The performance rights were valued at $0.032 per right, being the share price on the grant
date, which reflects fair value in line with AASB 2 Share-Based Payment.
12. SHARE-BASED PAYMENTS
On 16 November 2021, the Company issued 4,500,000 unlisted options exercisable at $0.0593 each,
expiring 16 November 2024, to Directors of the Company.
On 1 February 2022, the Company issued 1,000,000 unlisted options exercisable at $0.059 each, expiring
1 February 2025, to a Director of the Company.
On 22 April 2022, the Company issued 10,000,000 unlisted options exercisable at $0.10 each, expiring 22
October 2024 were issued in relation to the Barramine asset acquisition.
The Black-Scholes option pricing model was used to value the options and the following table lists the
inputs to the model used for the valuation of the options:
56
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
12. SHARE BASED PAYMENTS (CONTINUED)
Grant Date
16/11/2021
01/02/2022
22/04/2022
Expiry Date
16/11/2024
01/02/2025
22/10/2024
Exercise
Price
$0.0593
$0.059
$0.10
Share Price
at Grant
Date
$0.048
$0.038
$0.049
Expected
Volatility
100.0%
100.0%
100.0%
Risk-free
Interest
Rate
1.02%
1.23%
2.7%
Fair Value
per Option
$0.0278
$0.0203
$0.0210
On 27 June 2022, the Company granted 500,000 performance rights expiring 1 October 2023 to a
Consultant. The performance rights were valued at $0.032 per right, being the share price on the grant
date, which reflects fair value in line with AASB 2 Share-Based Payment.
13. EARNINGS PER SHARE
Loss after income tax (used in calculating both basic and diluted loss
per share)
Basic loss per share (cents)
Diluted loss per share (cents)
Weighted average number of ordinary shares used in calculating
basic and diluted EPS
Consolidated
2022
$
Consolidated
2021
$
(1,489,738)
(3,374,055)
Cents
(0.66)
(0.66)
Cents
(2.37)
(2.37)
Number
Number
224,488,940
142,274,032
57
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
14. INCOME TAX EXPENSE
A reconciliation between the income tax expense and the product of accounting profit before income
tax multiplied by the Group’s applicable income tax rate is as follows:
Consolidated
2022
$
Consolidated
2021
$
Loss before income tax
(1,221,530)
(3,374,055)
Prima facie benefit on operation loss at 25% (2021: 26%)
Non-allowable expenditure
Non-assessable income
Temporary differences not brought to account as a deferred tax
asset / (liability)
Tax losses not brought to account as a deferred tax asset
Income tax benefit
(305,383)
36,313
-
(877,255)
219,287
(7,022)
(202,902)
332,307
471,971
-
332,683
-
Unrecognised tax losses
8,254,843
6,873,774
A potential deferred tax asset, attributable to tax losses carried forward, amounts to approximately $
(2021: $1,787,181) and has not been brought to account at reporting date because the directors do not
believe it is appropriate to regard realisation of the deferred tax asset as probable at this point in time.
This benefit will only be obtained if:
•
•
•
•
•
the Group derives future assessable income of a nature and of an amount sufficient to enable the
benefit from the deductions for the loss incurred;
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions
for the loss incurred.
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions
for the loss incurred.
58
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
15. CASH FLOW INFORMATION
Reconciliation of cash flow from operating activities with loss after income tax:
Loss after income tax
Add / (deduct) non-cash items:
Share based payment expense
Depreciation
Impairment of exploration expenditure
Reversal of impairment of security bonds
Profit on sale of tenements
Payments to directors and employees issued in shares
Changes in assets and liabilities:
Other current assets
Trade and other payables
Provisions
Cash outflows from operating activities
16. RELATED PARTY TRANSACTIONS
a) Key Management Personnel Compensation
Short-term employee benefits – Cash, salary and fees
Short-term employee benefits – Annual leave
Post-employment benefits
Share-based payment
Consolidated
2022
$
Consolidated
2021
$
(1,221,530)
(3,374,055)
145,224
2,203
90,590
-
-
-
(31,023)
197,790
24,361
(792,385)
839,891
6,025
1,708,602
(59,000)
(15,214)
257,394
34,082
(34,527)
(421)
(637,223)
Consolidated
2022
$
339,375
-
23,875
145,189
508,439
Consolidated
2021
$
277,223
(421)
19,658
852,688
1,149,148
b) Transactions with Related Parties
There were no other transactions with related parties other than through Key Management Personnel
Compensation above.
c) Amount owing from / (to) Related Parties
There were no amounts owing from / (to) related parties at 30 June 2022 (2021: nil).
59
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
16. AUDITOR’S REMUNERATION
Audit services
Audit or review of the financial statements
Non-audit services
17. COMMITMENTS
Consolidated
2022
$
Consolidated
2021
$
23,000
-
23,000
36,500
250
36,750
Operating lease commitments consists of various mining tenement leases in Western Australia (Woodie
Woodie North, Comet, Pilbara Lithium).
The Group has annual minimum expenditure commitments of $224,000 (excluding commitments of
$65,000 relating to the Mt Read Cobalt Project which is being met by Stunalara Metals Limited under a
Heads of Agreement) (2021: $190,000).
18. OPERATING SEGMENTS
The Group has identified its operating segments based on the internal reports that are used by the Board
(the chief operating decision makers) in assessing performance and in determining the allocation of
resources. The operating segments are identified by the Board based on the phase of operation within
the mining industry.
For management purposes, the Group has organised its operations into one reportable segment on the
basis of stage of development as follows:
•
Exploration and evaluation assets, which includes assets that are associated with the
determination and assessment of the existence of commercial economic reserves.
The Board as a whole will regularly review the identified segments in order to allocate resources to the
segment and to assess its performance. During the year ended 30 June 2021 and 30 June 2022, the Group
had no development assets. The Board considers that it has only operated in one segment, being mineral
exploration. The Group is domiciled in Australia. Another income from external customers are only
generated from Australia. No income was derived from a single external customer.
60
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
19. CONTROLLED ENTITIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
wholly-owned subsidiaries in accordance with the accounting policy described in Note 1.
Volcanic Resources Pty Ltd
Attstar Pty Ltd
Country of
Incorporation
Australia
Australia
Principal Activities
Exploration
Exploration
Ownership
2022 (%)
100 1
100 2
Ownership
2021 (%)
100 1
-
1 Volcanic Resources Pty Ltd was acquired on 27 November 2020. Refer to Note 5 for more details on the
acquisition.
2 Attstar Pty Ltd was acquired on 15 February 2022. Refer to Note 5 for more details on the acquisition.
20. PARENT ENTITY DISCLOSURES
The following information has been extracted from the books and records of the legal parent, being
Accelerate Resources Limited and has been prepared in accordance with Accounting Standards.
Financial Position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss
2022
$
2021
$
3,426,308
3,264,578
6,690,886
330,024
330,024
6,360,862
2,313,768
1,467,381
3,781,149
143,872
143,872
3,637,277
12,948,619
2,454,799
(9,042,556)
6,360,862
9,090,949
2,367,354
(7,821,026)
3,637,277
(1,221,530)
(268,208)
(1,489,738)
(3,374,055)
-
(3,374,055)
61
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
20. PARENT ENTITY DISCLOSURES (CONTINUED)
The Parent Entity has no capital commitments and has not entered into a deed of cross guarantee nor are
there any contingent liabilities, apart from that mentioned in Note 24, at the year end.
21. FINANCIAL RISK MANAGEMENT
The Group has exposure to the following risks from their use of financial instruments:
credit risk;
liquidity risk; and
•
•
• 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
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting
date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the statement of financial position and notes to the financial statements.
The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient
collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s
exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value
of transactions is spread amongst approved counterparties.
Credit risk related to balances with banks and other financial institutions is managed by the board. The
board’s policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s
rating of at least AA-. All of the Group’s surplus funds are invested with AA- Rated financial institutions.
The Group does not have any material credit risk exposure to any single receivable or Group of receivables
under financial instruments entered into by the Group.
The credit risk for counterparties included in cash and cash equivalents as at 30 June 2022 is detailed
below:
62
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
21. FINANCIAL RISK MANAGEMENT (CONTINUED)
Financial assets:
Cash and cash equivalents
Consolidated
2022
$
Consolidated
2021
$
2,313,957
2,313,957
1,232,440
1,232,440
Liquidity risk
The responsibility with liquidity risk management rests with the Board of Directors. The Group manages
liquidity risk by monitoring forecast cash flows and ensuring that adequate working capital is maintained.
The Group’s policy is to ensure that it has sufficient cash reserves to carry out its planned exploration
activities over the next 12 months.
The Group’s financial instrument liabilities of $266,167 are expected to be paid within one year.
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.
Interest rate risk
The Group does not have any exposure to interest rate risk as there were no external borrowings at 30
June 2022 (2021: nil). Interest bearing assets are all short-term liquid assets and the only interest rate risk
is the effect on interest income by movements in the interest rate. There is no other material interest rate
risk.
Fair values
The net fair values of financial assets and financial liabilities approximate their carrying value. The
methods for estimating fair value are outlined in the relevant notes to the financial statements.
22. EVENTS SUBSEQUENT TO BALANCE DATE
Capital raisings and security issues
On 6 July 2022, the Company announced that it had issued 500,000 performance rights expiring on 1
October 2023 under the employee incentive scheme. The performance rights vest on satisfaction of
delivery of a Maiden Resource on the Company’s manganese project. Each performance right converts
into one fully paid ordinary share.
63
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
NOTES TO THE FINANCIAL STATEMENTS
22. EVENTS SUBSEQUENT TO BALANCE DATE (CONTINUED)
On 6 July 2022, the Company announced that it had issued 7,000,000 fully paid ordinary shares as Tranche
1 Milestone Consideration Shares to the Halcyon Vendors (and/or their nominees) as part of deferred
consideration for the Halcyon Transaction. 3,499,999 of these Tranche 1 Consideration Shares are
voluntarily restricted for 6 months to 4 January 2023.
There are no other matters or circumstances that have arisen since 30 June 2022 to the date of this report
that have significantly affected, or may significantly affect the Group’s operations, the results of those
operations, or the Group’s state of affairs in future financial years.
23. CONTINGENT LIABILITIES AND ASSETS
At 30 June 2022, there was contingent consideration payable of 8,000,000 ordinary shares relating to the
acquisition of Halcyon Resources Pty Ltd on 18 November 2019. These contingent consideration shares
are payable based on Accelerate Resources announcing on ASX platform upon shipment(s) of 50,000 tons
of Kaolin Clay or derived product from the Project (E70/4969).
-
There were no other contingent assets at 30 June 2022 (2021: nil).
64
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
DIRECTORS’ DECLARATION
In the opinion of the Directors of the Group:
a)
The financial statements and notes set out on the preceding pages are in accordance with the
Corporations Act 2001 including:
i
ii
Giving a true and fair view of the financial position of the Group as at 30 June 2022 and of its
performance for the financial year ended on that date; and
Complying with Australian Accounting Standards (including the Australian Accounting
Interpretations), the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
There are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable;
The financial statements and notes are in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board.
b)
c)
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5)(a) of Corporations
Act 2001.
Yaxi Zhan
Managing Director
30 September 2022
Perth
65
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ACCELERATE RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Accelerate Resources Limited (“the Company”) and its subsidiaries
(“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June
2022, 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 a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity 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 2022 and
of its financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in Note
1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the 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 (the Code) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We 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
We draw attention to Note 1 in the financial report which indicates that the Consolidated Entity incurred a loss
of $1,489,738 during the year ended 30 June 2022. As stated in Note 1, these events or conditions, along with
other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt
on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this respect
of this matter.
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.
Key Audit Matter
How our audit addressed the Key Audit Matter
Exploration and Evaluation Expenditure
The carrying amount of exploration and evaluation
Our procedures included, amongst others:
expenditure as at 30 June 2022 was $2,121,929.
Exploration and evaluation expenditure is a key
audit matter due to:
• The significance of
the balance
to
the
Company’s financial position;
• The level of judgement required in evaluating
management’s application of the requirements
of AASB 6 Exploration for and Evaluation of
Mineral Resources (“AASB 6”). AASB 6 is an
industry specific accounting standard requiring
the application of significant
estimates and
judgements,
industry knowledge. This
includes specific requirements for expenditure
to be capitalised as an asset and subsequent
• Assessed management’s determination of its
areas of interest for consistency with the definition
in AASB 6. This involved analysing the tenements
in which the Company holds an interest and the
exploration programmes planned
tenements.
for
those
• Agreed the terms of acquisition agreements and
on a sample basis corroborated rights to tenure to
government registries and relevant agreements
as applicable; For each area of interest, we
assessed the Company’s rights to tenure by
registries and
to government
corroborating
evaluating agreements in place with other parties
as applicable.
requirements which must be complied with for
capitalised expenditure to continue to be
• Considered the activities in each area of interest
to date and assessed the planned future activities
carried as an asset; and
for each area of interest by evaluating budgets.
The assessment of impairment of exploration and
evaluation expenditure being inherently difficult.
• Substantiated a sample of expenditure by
agreeing to supporting documentation.
• We assessed each area of interest for one or more
of the following circumstances that may indicate
impairment of the capitalised expenditure:
o
the licenses for the right to explore
expiring in the near future or are not
expected to be renewed; o substantive
expenditure for further exploration in the
specific area
planned
is neither budgeted or
o decision or intent by the Company to
discontinue activities in the specific area
of interest due to lack of commercially
Key Audit Matter
How our audit addressed the Key Audit Matter
viable quantities of resources; and
o data
indicating
a
development in the specific area is likely
although
that,
to proceed, the carrying amount of the
to be
exploration asset
is unlikely
recovered
full
development or sale.
in
from
successful
• Assessed the appropriateness of the disclosures
included in the relevant notes to the financial
statements.
Assets held for sales
The fair value of assets held for sales as at 30 June
Our procedures included, amongst others:
2022 was $1,000,000.
• Evaluated the fair value of assets and liabilities
Assets held for sales are considered to be a key
disposed of
audit matter due to:
• Evaluated the consideration receivable in respect
• The significance of
the balances
to
the
of the assets disposed
Company’s financial position;
• The level of judgement required in evaluating
management’s application of the requirements
of AASB 5 Noncurrent asset held for sales
(“AASB 5”);
• Consider impairment indicators (assess carrying
amount of investment vs fair value (if available) or
recoverable amount/value in use.
Assessed the appropriateness of the disclosures
financial
included
the relevant notes
the
to
in
• Value of tenements held for sale or to be
transferred has not been not been recorded
statements.
correctly in accordance with the terms of the
relevant agreement
Share-Based Payments
During the year the company issued shares,
Our procedures included, amongst others:
options and performance rights resulting in share-
based payment expense of $145,224.
Share-based payments are considered to be a key
audit matter due to:
• Analysed contractual agreement to identify key
terms and conditions of
the share-based
payments issued and relevant vesting conditions
in accordance with AASB 2;
• The significance of
the
Consolidated Entity’s financial position and
the balances
to
performance;
• The level of judgement required in evaluating
management’s application of the requirements
of AASB 2 Share-based Payment (“AASB 2”);
• Evaluated management’s valuation methods and
assess the assumptions and inputs used;
• Assessed the amount recognised during the
period against relevant vesting conditions; and
• Assessed the appropriateness of the disclosures
included in the relevant notes to the financial
Key Audit Matter
How our audit addressed the Key Audit Matter
• Use of the Black-Scholes valuation model to
determine the fair value of the options granted;
statements.
and use of the Monte-Carlo valuation model to
determine the fair value of the performance
rights granted with market-based conditions.
Other Information
The directors 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 2022, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the
directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial
Statements, that the financial report complies with International Financial Reporting Standards.
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 has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of this
financial report.
As part of an audit in accordance with the 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 financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity 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, related safeguards.
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.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2022.
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with s 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.
Auditor’s Opinion
In our opinion, the Remuneration Report of Accelerate Resources Limited, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD
CHRIS NICOLOFF CA
Director
Dated this 30th day of September 2022
Perth, Western Australia
Tenement
Number
Status
Location
Beneficial Percentage Interest
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
SCHEDULE OF MINING TENEMENTS HELD AT THE REPORT DATE
Project
Comet
Comet
Comet
Comet
Comet
Comet
Comet
E20/908
Granted
Western Australia
E20/970
Granted
Western Australia
E21/213
Granted
Western Australia
E21/214
Granted
Western Australia
E20/965
Granted
Western Australia
E20/999
Application Western Australia
E20/1000
Application Western Australia
Wooleen Project
E59/2628
Application Western Australia
Wooleen Project
E59/2629
Application Western Australia
Wooleen Project
E59/2630
Application Western Australia
Wooleen Project
E59/2632
Application Western Australia
Wooleen Project
E59/2646
Application Western Australia
Pilbara Lithium
E45/6056
Application Western Australia
Pilbara Lithium
E45/6057
Application Western Australia
Pilbara Lithium
E45/6058
Application Western Australia
Pilbara Lithium
E45/6207
Application Western Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Woodie Woodie North
E45/5854
Granted
Western Australia
100% Mn and Iron Right
Woodie Woodie North
E45/5088
Granted
Western Australia
100% Mn and Iron Right
Woodie Woodie North
E45/6100
Application Western Australia
Woodie Woodie North
E45/5978
Granted
Western Australia
Woodie Woodie North
E45/5979
Application Western Australia
100%
100%
100%
Tambellup
E70/4969
Granted
Western Australia
Tambellup
E70/5319
Granted
Western Australia
Mt Read
EL 6/2013
Granted
Tasmania
Under an Option Agreement
to sell 100% Interest
Under an Option Agreement
to sell 100% Interest
Under an Option Agreement
to sell 100% Interest
72
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
Additional information required by the ASX Limited Listing Rules not disclosed elsewhere in this Annual Report
is set out below. The information is current as at 22 September 2022.
SHAREHOLDINGS
The issue capital of the Company as at 22 September 2022 is 270,548,899 ordinary fully paid shares. As at 22
September 2022 there are no substantial holders.
Distribution of Shareholders
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
No. of Holders No. of Shares
4,968
113,262
928,416
17,606,420
251,805,833
270,458,899
30
31
105
416
325
907
Number holding less than a marketable parcel
186
1,274,153
Top 20 Shareholders of Quoted Shares
No. of
Shares Held
% Held
SILVERPEAK NOMINEES PTY LTD
1
2 MR MARX LIN
3
SWANCAVE PTY LTD
MR ANTON WASYL MAKARYN + MRS MELANIE FRANCES MAKARYN
4
5 MR CRAIG MICHAEL LAKE + MRS JUDITH MAY LAKE
6 MISS YAXI ZHAN
7
8
9
10
11
BATAVIA CAPITAL PTY LTD
QUEBEC NOMINEES PTY LTD
GOVINDA FREEDOM FUND PTY LTD
STONE PONEYS NOMINEES PTY LTD
VALIAN NOMINEES PTY LTD
MR DIRK VAN DER STRUYF + MRS STEPHANIE VAN DER STRUYF
12
13 W M T RESOURCES PTY LTD
14 MRS ANNE MAREE RICHARDSON
15 GIBB RIVER DIAMONDS LIMITED
16 GANDRIA CAPITAL PTY LTD
17 MR SHANE HOEHOCK WEE
18
19
20
SOLSTRAALE NOMINEES PTY LTD
ESM LIMITED
CRESCENT NOMINEES LIMITED
9,132,653
7,946,230
7,000,000
6,071,925
5,000,000
4,810,009
4,800,000
4,500,000
4,100,000
3,600,000
3,250,000
3,250,000
3,140,000
3,040,000
3,000,000
2,750,000
2,700,000
2,500,000
2,495,012
2,370,000
85,455,829
3.38
2.94
2.59
2.25
1.85
1.78
1.77
1.66
1.52
1.33
1.2
1.2
1.16
1.12
1.11
1.02
1
0.92
0.92
0.88
31.6
73
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
OPTION HOLDINGS
The Company has the following classes of options on issue at 22 September 2022 as detailed below.
Class
Type
AX8OPT1 Unlisted Options
AX8OPT2 Unlisted Options
Unlisted Options
AX8OPT3
AX8OPT4
AX8OPT5
AX8OPT6
Unlisted Options
Unlisted Options
Unlisted Options
AX8OPT7 Unlisted Options
AX8OPT8 Unlisted Options
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Terms
Exercisable at $0.06 expiring on or before 9 June 2023
Exercisable at $0.06 expiring on or before 2 September 2023
Exercisable at $0.0957 expiring on or before 27 November
2024
Exercisable at $0.0957 expiring on or before 22 November
2022
Exercisable at $0.0959 expiring on or before 27 November
2022
Exercisable at $0.0593 expiring on or before 15 November
2024
No. of
Options
5,000,000
5,000,000
9,000,000
7,500,000
1,500,000
4,500,000
Exercisable at $0.059 expiring on or before 1 February 2025
1,000,000
Exercisable at $0.10 expiring on or before 22 October 2024
10,000,000
43,500,000
Unlisted Options (AX8OPT1)
No. of Holders
No. of Options
-
-
-
-
1
1
-
-
-
-
5,000,000
5,000,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT1).
Holder
MR SHANE HOEHOCK WEE
No. of Options
5,000,000
%
100
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT2)
No. of Holders
No. of Options
-
-
-
-
1
1
-
-
-
-
5,000,000
5,000,000
74
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT2).
Holder
GANDRIA CAPITAL PTY LTD
No. of Options
5,000,000
%
100
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT3)
No. of Holders
No. of Options
-
-
-
-
3
3
-
-
-
-
9,000,000
9,000,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT3).
Holder
GRANT MOONEY
MISS YAXI ZHAN
SILVERPEAK NOMINEES PTY LTD
No. of Options
3,000,000
3,000,000
3,000,000
%
33.33
33.33
33.33
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT4)
No. of Holders
No. of Options
-
-
-
-
5
5
-
-
-
-
7,500,000
7,500,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT4).
Holder
ZENIX NOMINEES PTY LTD
MR SHANE HOEHOCK WEE
No. of Options
5,000,000
1,680,000
%
66.67
22.4
75
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT5)
No. of Holders
No. of Options
-
-
-
-
1
1
-
-
-
-
1,500,000
1,500,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT5).
Holder
JOYWOODS ENTERPRISES PTY LTD
No. of Options
1,500,000
%
100
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT6)
No. of Holders
No. of Options
-
-
-
-
3
3
-
-
-
-
4,500,000
4,500,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT6).
Holder
EMPF INVESTMENT PTY LTD
SILVERPEAK NOMINEES PTY LTD
GRANT JONATHAN MOONEY
No. of Options
2,000,000
1,500,000
1,000,000
%
44.44
33.33
22.22
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT7)
No. of Holders
No. of Options
-
-
-
-
1
1
-
-
-
-
1,000,000
1,000,000
76
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT7).
Holder
STEPHEN BRUCE BODON
No. of Options
1,000,000
%
100
Options Range
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Unlisted Options (AX8OPT8)
No. of Holders
No. of Options
-
-
-
2
9
11
-
-
-
200,000
9,800,000
10,000,000
The following Option holder hold more than 20% of the Company’s Unlisted Options (AX8OPT8).
Holder
WMT RESOURCES PTY LTD
No. of Options
2,990,000
%
29.9
PERFORMANCE RIGHTS HOLDINGS
The Company has the following performance rights on issue at 22 September 2022 as detailed below.
Performance Rights Range
Performance Rights
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
No. of Holders
No. of Perf. Rights
-
-
-
-
500,000
500,000
-
-
-
-
1
1
The following Option holder hold more than 20% of the Company’s Performance Rights
Holder
MR MICHAEL RICHARD GRIFFITHS
No. of Perf. Rights
500,000
%
100
RESTRICTED SECURITIES
77
ACCELERATE RESOURCES LIMITED
Consolidated Annual Report for the Year Ended 30 June 2022
ASX ADDITIONAL INFORMATION
Restricted Class
Fully paid ordinary shares
Fully paid ordinary shares
No. of Securities
1,500,000
3,499,999
Restriction Period
Voluntarily escrowed to 15 November 2022
Voluntarily escrowed to 4 January 2023
VOTING RIGHTS
The holders of ordinary shares are entitled to one vote per share at meetings of the Company. Options and
Performance Rights do not carry any rights to vote.
ON-MARKET BUY BACK
There is no current on-market buy back.
78