More annual reports from Alara Resources Limited:
2021 Report2021
ANNUAL
REPORT
Saudi Arabia
Oman
Alara Resources is transitioning
from mineral explorer to mine
development and copper
concentrate producer, with
construction of our first copper
mining project well underway.
Mission Statement
Our mission is to increase shareholder value as a leading developer of mineral deposits and a
mineral producer on the Middle East region.
Core Values
Contents
Saudi Arabia
Oman
Alara Resources is transitioning
from mineral explorer to mine
development and copper
concentrate producer, with
construction of our first copper
mining project well underway.
Excellence
We will pursue excellence and will
strive for relevant best practice
combined with a fit- for-purpose
approach through continuous
improvement and teamwork in all
aspects of our business. To achieve
our goals, we will ensure our
employees and business partners
have the appropriate skills and
resources to perform their work
effectively and efficiently. We will
foster an open and supportive
environment in all activities and
relationships.
Respect
Alara values and shows consideration
for its employees, business partners,
customers, suppliers, governments,
communities, and the social and
physical environment in which it
operates.
Integrity
Alara and its employees are
committed to fairness and honesty
and operate with transparency and
accountability across all levels of
business.
1
Consolidated Statement of Profit and Loss
Auditor’s Independence Declaration
Directors’ Report
Projects Overview
Board of Directors
Managing Director’s Letter
2
4
28
30 Management Team
36
51
52
53
54
55
56 Notes to the Financial Statements
76
Auditor’s Report to Shareholders
81
83
Shareholder Information
Corporate Directory
Consolidated Statement of Cash Flows
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Alara Resources Annual Report 2021 Managing Director’s Letter
Managing Director’s Letter
Dear Shareholders,
Alara has made excellent progress towards developing its projects during the past year, with its
planned transition from mineral explorer to copper producer now well underway. And all this
despite difficult operating conditions due to an ongoing COVID-19 pandemic. Several waves of
the virus hit the Middle East during the 2021 financial year, resulting in extended lockdowns and
travel restrictions. Several staff from Alara and its joint-venture partners suffered COVID themselves
or lost loved ones during the pandemic. My heart-felt condolences go out to everyone who was
affected by this unprecedented crisis. Through all this, Alara’s unwavering focus was to deliver
the well-planned advancement of its projects in Oman, while at the same time safeguarding its
employees and contractors by changing working styles and providing preventative inoculations
for staff.
Despite these challenges, Alara achieved several critical milestones along its development
journey. Our flagship Omani JV company Al Hadeetha Resources LLC (AHRL) commenced
construction of the accommodation camp for its planned 1MTPA copper concentrator at the Al
Washi-hi Majaza copper-gold project (Project) in August 2021, and placed purchase orders for
the major copper concentrator plant and other equipment during September. Alara additionally
completed a successful metallurgical test program and basic engineering design for the copper
processing plant during the year. Detailed engineering designs are now nearing completion.
In another key milestone achieved in 2021, the Omani Ministry of Housing granted approvals
for AHRL to access land surrounding the mining licence area, allowing the construction of mine-
related facilities including the accommodation village and the access road. It is very pleasing
to see Project development work now progressing on multiple fronts. The Al Wash-hi Majaza
Project is on track to produce its first copper concentrate by the fourth quarter of calendar year
2022. During the year we reported an upward revised Project financial outcome, with an increase
in expected operational expenditure being more than offset by the improved copper price
environment .
Positive developments were not just confined to our Al Washi-hi Majaza copper-gold project,
with Alara making progress across other parts of the business as well. In Oman, negotiations
2
Alara Resources Annual Report 2021
Managing Director’s Letter
continued towards the potential consolidation of our other copper assets. The Company is now
much closer to obtaining a mining license over the Daris Project (Block 7) and other exploration
areas, including Mullaq and Al Ajal.
Alara Resources LLC (ARL), another Alara Omani JV company, executed a long-term mining
contract with AHRL for the proposed Al Wash-hi Majaza mine. By virtue of the skills, reputation
and experience of its shareholders, ARL gives AHRL a competitive advantage across a number of
geological, mining and metallurgical project work streams.
In Saudi Arabia, hopes have risen that Alara will be able to re-activate the Khnaiguiyah zinc project,
with promising meetings held with key Saudi Ministers and Government Agencies during the
year. The mining outlook in the Kingdom has brightened, with the Government taking a new
approach as part of its grand vision for 2030.
During the year Alara welcomed a new Non-Executive Director, Mr. Sajeev Kumar, to its Board.
Mr Kumar holds a BE (Metallurgy) and an MBA and brings extensive Australian and international
business experience to the Company.
The path ahead for AHRL involves continuing to meet the high expectations of supportive local
authorities and communities in Oman, as it develops a new, sustainable copper mine in that
country. As the world is putting the worst of the pandemic behind it, and with copper demand
at an all-time high, I feel privileged to be leading Alara as the Company sets about achieving its
goals. The strong support from our Board and Shareholders, the trust and commitment shown by
Alara’s JV partners, the talent and dedication of our employees and the quality of the Company’s
assets make me excited for our future in Oman.
I look forward to sharing with you the attainment of further key project development milestones
during the coming year.
Yours sincerely
Atmavireshwar Sthapak
Managing Director
1 Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24
January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain
the information required by ASX Listing Rule 5.16 regarding the stated production target. All material assumptions
underpinning the production target as announced on those dates continue to apply and have not materially changed,
except to the extent that a relevant assumption in an earlier announcement referred to above has been updated by
an assumption in a later announcement referred to.
2 Refer to Alara’s ASX Announcement Project NPV Upgrade, released 29 March 2021.
3
Alara Resources Annual Report 2021 Projects overview
Oman
Copper in the Sultanate of Oman
Since its discovery thousands of years ago, through the bronze age and beyond, copper has
proven to be a most useful metal element, making a huge contribution to the development of
communities, cities, and countries around the world.
Global copper consumption has increased significantly over the last century and has grown at
an average rate of 3% p.a. over the last 20 years. With industrial change brought on by global
climate change initiatives, demand for copper is set to continue rising, in line with projected
growth in electricity infrastructure, digital communications, electric vehicles and other renewable
energy technologies. A consensus of supply and demand forecasts demonstrate solid support
for copper prices through to 2030.
A country with astonishing natural beauty, the Sultanate of Oman is a nation with great history and
legends. As the oldest independent state in the Arab World, Oman has embraced modernization
and progress while retaining the core aspects of its culture and heritage.
The Sultanate of Oman contains some of the most exciting geology anywhere on Earth, yet it
is largely underexplored. Most of the country is covered by desert, while the northern Oman
mountains expose some of the best-preserved ophiolitic rocks in the world. Oman’s mining
history dates back millennia, to a time when copper was mined there and traded throughout the
known world. The country was then known as “Majan” or “the land of copper”.
Copper production in Oman restarted in recent decades, however a temporary halt on new mining
licences was imposed in 2014. With the Government now focused on economic diversification,
the Ministry of Energy and Minerals is again issuing new mining licences, with AHRL being the
first company to receive a copper mining licence since 2004. The Ministry continues to support
the copper sector in Oman, with more copper projects set to follow.
Currently, Oman’s main actively mined minerals include chromite, dolomite, limestone, gypsum,
silicon and iron. Gold and copper will soon be added to this list, with attendant downstream
industrial projects to further boost the mineral sector’s contribution to the nation’s GDP.
Recognizing its huge mineral wealth potential, the Sultanate is now actively promoting the
development of its mining industry as one of its top four revenue generating sectors. Key
developments include the merger of the Public Authority for Mining (PAM) into Ministry of Energy
and Minerals. The inclusion of mining under Implementation Support and Follow-up Unit (ISFU)
of Tanfeedh in 2017 and the promulgation of a new Mining Law in 2018. These developments
demonstrate the country’s commitment to assisting the mining sector become one of the major
non-petroleum revenue sources for the nation.
AHRL LLC (AHRL) – a joint venture between Alara Resources (51%), and Omani conglomerates
Al Hadeetha Investment Services LLC (AHIS) (30%) and Al Tasnim Infrastructure LLC (Al Tasnim,
19%) – is the first international JV company to be awarded a mining license for copper in Oman.
Alara has joint venture interests in a total of five copper-gold exploration licenses in Oman,
extending over 1,186km2. In addition, Alara has a 51% interest (via its shareholding in AHRL) in
the Al Hadeetha Mining License at Wash-hi Majaza covering 3km2, within the Wash-hi Exploration
License, and four other mining license applications pending for grant, totalling 7km2. The next
figure shows the locations of all exploration licenses in Oman, including Alara’s JV license areas.
Alara also has another 10 (base and precious metals) exploration license applications, totalling
2,677km2, pending grant in Oman.
4
Alara Resources Annual Report 2021
Alara Oman Copper Portfolio
Oman Copper Block & Alara JV Exploration Licenses in Oman
Oman Copper Block & Alara JV Exploration Licenses in Oman
Alara Oman Copper Portfolio
Al Hadeetha Resources LLC Projects
Al Hadeetha Resources LLC (AHRL) is Alara’s main JV vehicle in Oman, in which Alara owns a 51% stake.
Alara’s partner in AHRL, AHIS, is part of the well-known Omani conglomerate Al Naba Services Group,
owned by Sayyid Khalid bin Hamed Al Busaidi and his family. Alara’s other JV partner in AHRL, Al Tasnim,
represent the Al Turki group, one of the largest construction and infrastructure companies in Oman. The
AHRL JV was formed in 2011 by Alara and AHIS for the purpose of exploring and developing the Wash-
hi, Mullaq and Al Ajal copper-gold concessions and the surrounding regions. Al Tasnim joined the JV in
2018. Since 2011, Alara-led exploration in these areas has identified copper resources. Mining license
applications have been submitted within each exploration license area. The Al Wash-hi – Majaza mining
licence was granted in 2018. The below table provides the status of all Al Hadeetha JV licenses, which
together form the Al Hadeetha Copper Project (also known as the Wash-hi Project).
5
Alara Resources Annual Report 2021 Alara Oman Copper Portfolio
Exploration Licenses
Grant Expiry Renewal
Applied
May ‘18
April ‘18
April ‘18
Name
Owner Alara
Share
Area
Status
Mining License within ELs
Date
Area
Applied
Status
Jan ‘08
51% 39km2
Jan ‘16
51% 41km2 Oct ‘09 Oct ‘16
51% 25km2
Jan ‘16
Wadi Andam AHRL
AHRL
Mullaq
Al Ajal
AHRL
Al Hadeetha JV licenses
Al Hadeetha JV licenses
The Wash-hi Majaza copper deposit is in the Wash-hi Exploration License, approximately 160 km south-
east of Muscat via sealed road. It is distinguished by a gossan, forming a hill in the centre of a gravel plain.
The Wash-hi Majaza copper deposit is in the Wash-hi Exploration License, approximately 160
km south-east of Muscat via sealed road. It is distinguished by a gossan, forming a hill in the
centre of a gravel plain.
3km2 April ‘13 Granted ‘18
1km2
In process
1.5km2
In process
Granted
In process
In process
Jan ‘13
Jan ‘13
Jan ‘08
Wash-hi Exploration Licence and Washi-hi Majaza Mining Licence areas
6
Wash-hi Exploration Licence and Washi-hi Majaza Mining Licence areas
AHRL has over time conducted extensive copper-gold exploration programs in the license area, resulting in
the discovery of a large copper deposit at Wash-hi Majaza. A subsequent feasibility study supported
Alara Resources Annual Report 2021
Name
Owner Alara
Area
Grant Expiry Renewal
Status
Area
Status
Exploration Licenses
Mining License within ELs
Share
Applied
Date
Applied
Wadi Andam AHRL
51% 39km2
Jan ‘08
Jan ‘16
May ‘18
Granted
3km2 April ‘13 Granted ‘18
Mullaq
Al Ajal
AHRL
AHRL
51% 41km2 Oct ‘09 Oct ‘16
April ‘18
In process
51% 25km2
Jan ‘08
Jan ‘16
April ‘18
In process
1km2
1.5km2
Jan ‘13
Jan ‘13
In process
In process
Al Hadeetha JV licenses
The Wash-hi Majaza copper deposit is in the Wash-hi Exploration License, approximately 160 km south-
east of Muscat via sealed road. It is distinguished by a gossan, forming a hill in the centre of a gravel plain.
AHRL has over time conducted extensive copper-gold exploration programs in the license area,
resulting in the discovery of a large copper deposit at Wash-hi Majaza. A subsequent feasibility
study supported development of an open mine pit and construction of a 1MTPA copper
AHRL has over time conducted extensive copper-gold exploration programs in the license area, resulting in
the discovery of a large copper deposit at Wash-hi Majaza. A subsequent feasibility study supported
concentration plant3. In June 2018 AHRL secured its first Mining License and commenced the
development of an open mine pit and construction of a 1MTPA copper concentration plant3. In June 2018
process of mine development. Resource and reserve statements are provided in the following
AHRL secured its first Mining License and commenced the process of mine development. Resource and
two tables.
reserve statements are provided in the following two tables.
Mineralisation in the gossan was also identified (JORC Inferred Resource of 0.31MT @ 0.51g/t Au)
Mineralisation in the gossan was also identified (JORC Inferred Resource of 0.31MT @ 0.51g/t Au) outside
outside the main ore body.
the main ore body.
Alara Oman Copper Portfolio
Resource
Indicated
Inferred
Total
Mineral Resources summary – 0.25% Cu Cut-off
Tonnes (m)
12.4
3.7
16.1
Cu %
0.89
0.79
0.87
JORC Category
Probable Reserve
Ore Reserve statement
Ore Reserve statement
Tonnes (m)
9.70
Cu %
0.88
Au g/t
0.22
Wash-hi Majaza copper deposit outline
Wash-hi Majaza copper deposit outline
[The remainder of this page is intentionally blank]
3 Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24
January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain
the information required by ASX Listing Rule 5.16 regarding the stated production target. All material assumptions
underpinning the production target as announced on those dates continue to apply and have not materially changed,
except to the extent that a relevant assumption in an earlier announcement referred to above has been updated by
an assumption in a later announcement referred to.
7
3 Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24 January 2017 (DFS update), 28
June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain the information required by ASX Listing Rule 5.16 regarding the
stated production target. All material assumptions underpinning the production target as announced on those dates continue to apply and have
not materially changed, except to the extent that a relevant assumption in an earlier announcement referred to above has been updated by an
assumption in a later announcement referred to.
Wash-hi Exploration Licence and Washi-hi Majaza Mining Licence areas
AHRL has over time conducted extensive copper-gold exploration programs in the license area, resulting in
the discovery of a large copper deposit at Wash-hi Majaza. A subsequent feasibility study supported
Alara Resources Annual Report 2021
Wash-hi Majaza Copper Project
Wash-hi Majaza pit stages schematic
Wash-hi Majaza Copper Project Development
Alara is now developing a 1MTPA copper concentration plant4 at the Wash-hi Majaza mining
licence site.
Copper Project Construction Commencement
Alara is currently developing the Al Wash-hi – Majaza copper-gold project in the Sultanate of Oman
(Project). Project construction is scheduled for completion in November 2022. When complete,
the Project will produce copper concentrate through a 1 MPTA plant5. The Project is owned by
Alara’s joint venture company Al Hadeetha Resources LLC (AHRL) in which the Company holds a
51% interest. Project construction commenced during the reporting period and has progressed
as specified below until the date of this Report.
Mining Accommodation Camp
After receiving required construction approvals from the local municipality, the mine-site camp
construction contractor mobilised its team and equipment at the Wash-hi – Majaza mine site
accommodation village for surface levelling and digging foundation trenches.
The accommodation village is designed to house 325 personnel from the construction, mining,
and plant operation crews, and comprises a range of facilities including dining, prayer and
recreation halls. Further details of the village are available in the Company’s ASX announcement
dated August 5, 2021.
4 Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24 January
2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7 April 2021 (NPV updates) contain the information
required by ASX Listing Rule 5.16 regarding the stated production target. All material assumptions underpinning the
production target as announced on those dates continue to apply and have not materially changed, except to the
extent that a relevant assumption in an earlier announcement referred to above has been updated by an assumption
in a later announcement referred to.
5 See previous footnote.
8
Alara Resources Annual Report 2021 Wash-hi Majaza Copper Project
AHRL CEO Avigyan Bera inspecting mining camp foundations
Project Access Road
Preparations for construction of the access road connecting the project site with a nearby state
highway have also commenced. Designs for the two-kilometre-long access road were duly
permitted by authorities. This road will provide a separate dedicated route to site avoiding
populated parts in the area. A culvert shall be constructed over Wadi Andam.
[The remainder of this page is intentionally blank]
9
Alara Resources Annual Report 2021 Wash-hi Majaza Copper Project
Access road route
Definitive Feasibility Study (DFS)
The Project’s DFS financial modelling was revised earlier in the year6 to take account of a copper
price rise since the prior revision in 2018. Revised DFS projected returns, based on a range of
copper price scenarios as at 29 March 2021 are set out in the table below. As a comparison, the
LME spot copper price on 23 September 2021 was USD 9,251 per tonne:
6 See Alara’s ASX announcements dated 29 March and 7 April 2021. Alara’s ASX Announcements dated 1 April 2016 (initial
Definitive Feasibility Study results announcement), 24 January 2017 (DFS update), 28 June 2018 (NPV update) and 29 March and 7
April 2021 (NPV updates) contain the assumptions and other information required by ASX Listing Rule 5.17 regarding the forecast
financial information in this section of this Report. All material assumptions underpinning the forecast financial information as
announced on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in
an earlier announcement listed above has been updated by an assumption in a later of those announcements in that list.
10
Alara Resources Annual Report 2021 Wash-hi Majaza Copper Project
Value
Value
8,000
639
273
88
33
9,000
709
338
121
40
9,500
743
370
137
43
8,500
674
306
104
36
7,500
604
241
71
29
9,500
743
370
137
43
9,000
709
338
121
40
8,500
674
306
104
36
9,500
743
370
137
43
9,000
709
338
121
40
8,500
674
306
104
36
7,500
7,500
604
604
241
241
71
71
29
29
8,000
8,000
Value
639
639
273
273
88
88
33
33
7,000
7,000
569
569
7,000
208
208
569
54
54
208
24
24
54
24
Value
Value
USD 60m7
USD 60m7
Value
Open pit, 10.3 years
USD 60m7
Open pit, 10.3 years
15 months
Open pit, 10.3 years
15 months
Q4 calendar 2022
15 months
Q4 calendar 2022
2032
Q4 calendar 2022
2032
1 Mtpa
2032
1 Mtpa
35,000 wmt
1 Mtpa
35,000 wmt
35,000 wmt
79,297 t
79,297 t
79,297 t
21,825 oz
21,825 oz
21,825 oz
USD 31.2/t of processed material
USD 31.2/t of processed material
USD 31.2/t of processed material
Parameter
Parameter
Copper Price (USD/tonne)
Copper Price (USD/tonne)
Parameter
Revenue (USD m)
Revenue (USD m)
Copper Price (USD/tonne)
EBITDA (USD m)
EBITDA (USD m)
Revenue (USD m)
Project NPV (USD m)
Project NPV (USD m)
EBITDA (USD m)
Project IRR (%)
Project IRR (%)
Project NPV (USD m)
Key Project Parameters
Project IRR (%)
Key Project Parameters
Key Project Parameters
Key Project parameters
Key Project parameters from the revised DFS are set out below:
Key Project parameters from the revised DFS are set out below:
Key Project parameters from the revised DFS are set out below:
Key Project parameters from the revised DFS are set out below:
Parameter
Parameter
Total pre-production capex
Total pre-production capex
Parameter
Mining method
Total pre-production capex
Mining method
Project construction
Mining method
Project construction
First production
Project construction
First production
Final production
First production
Final production
Processing rate
Final production
Processing rate
Processing rate
Average annual concentrate production
Average annual concentrate production
Average annual concentrate production
Total tonnes copper metal production
Total tonnes copper metal production
Total tonnes copper metal production
Total gold ounces
Total gold ounces
Total gold ounces
Unit operating costs
Unit operating costs
Unit operating costs
Mining and processing infrastructure procurement
Mining and Processing Infrastructure Procurement
Mining and Processing Infrastructure Procurement
Mining and processing infrastructure procurement
The Project is partially financed by an OMR 19m (USD 49.22m; AUD 65.56m) loan facility from
The Project is partially financed by an OMR 19m (USD 49.22m; AUD 65.56m) loan facility from Sohar
The Project is partially financed by an OMR 19m (USD 49.22m; AUD 65.56m) loan facility from Sohar
The Project is partially financed by an OMR 19m (USD 49.22m; AUD 65.56m) loan facility from Sohar
International Bank (Facility). AHRL commenced draw-down on the Facility during the reporting period,
Sohar International Bank (Facility). AHRL commenced draw-down on the Facility during the
International Bank (Facility). AHRL commenced draw-down on the Facility during the reporting period,
International Bank (Facility). AHRL commenced draw-down on the Facility during the reporting period,
placing the equipment and construction purchase orders listed below during September 2021. Procurement
placing the equipment and construction purchase orders listed below during September 2021. Procurement
reporting period, placing the equipment and construction purchase orders listed below during
placing the equipment and construction purchase orders listed below during September 2021. Procurement
contracts were awarded, contractually committing a total capex of USD 17.8m (OMR 6.83m; AUD 23.71m)
contracts were awarded, contractually committing a total capex of USD 17.8m (OMR 6.83m; AUD 23.71m)
September 2021. Procurement contracts were awarded, contractually committing a total capex of
contracts were awarded, contractually committing a total capex of USD 17.8m (OMR 6.83m; AUD 23.71m)
to date.
to date.
to date.
USD 17.8m (OMR 6.83m; AUD 23.71m) to date.
Package/Equipment details
№
Package/Equipment details
№
Package/Equipment details
№
Ball Mill, SAG Mill, Crusher
1
Ball Mill, SAG Mill, Crusher
1
Ball Mill, SAG Mill, Crusher
1
Rock Breaker
2
Rock Breaker
2
Rock Breaker
2
Apron Feeder
3
Apron Feeder
3
Apron Feeder
3
Pan Feeders
4
Pan Feeders
4
Pan Feeders
4
Magnetic Separators
5
Magnetic Separators
Magnetic Separators
5
5
Accommodation Cabins Refurbished
6
Accommodation Cabins Refurbished
Accommodation Cabins Refurbished
6
6
Accommodation Camp Construction
7
Accommodation Camp Construction
7
Accommodation Camp Construction
7
New Cabins - Dining, Offices etc.
New Cabins - Dining, Offices etc.
8
8
New Cabins - Dining, Offices etc.
8
Fencing
Fencing
9
9
Fencing
9
10 Conveyors
10 Conveyors
10 Conveyors
11
11
11
12 Hydro cyclones
12 Hydro cyclones
12 Hydro cyclones
13 Conveyor safety switches
13 Conveyor safety switches
13 Conveyor safety switches
14 Construction of Access Road
14 Construction of Access Road
14 Construction of Access Road
Pressure Filters
15
Pressure Filters
15
Pressure Filters
15
16 Regrinding Mill
16 Regrinding Mill
16 Regrinding Mill
Electrical Packages - Transformers, Panels,
17
Electrical Packages - Transformers, Panels,
17
Electrical Packages - Transformers, Panels,
17
Motors, Telecom
Motors, Telecom
Motors, Telecom
Belt Weigher and Vibrating Screens
Belt Weigher and Vibrating Screens
Belt Weigher and Vibrating Screens
Supply from
China
Finland
Supply from
Supply from
China
China
Finland
India
Oman
Italy
Oman
India
India
UAE
Oman
Italy
India
India
India
India
India
India
Project Engineering and Construction
Project Engineering and Construction
Project Engineering and Construction
Project Engineering and Construction
Progesys, as Project Management Consultant (PMC), is overseeing and directing the engineering,
Progesys, as Project Management Consultant (PMC), is overseeing and directing the engineering,
Progesys, as Project Management Consultant (PMC), is overseeing and directing the engineering,
Progesys, as Project Management Consultant (PMC), is overseeing and directing the engineering,
procurement and construction for the Project. Debisikha Associates, India (Debisikha) has been engaged to
procurement and construction for the Project. Debisikha Associates, India (Debisikha) has been
procurement and construction for the Project. Debisikha Associates, India (Debisikha) has been engaged to
provide various services to the Project, including:
procurement and construction for the Project. Debisikha Associates, India (Debisikha) has been engaged to
provide various services to the Project, including:
engaged to provide various services to the Project, including:
provide various services to the Project, including:
7 Including EPC, project management, sewage treatment plant and pipeline, power, road and contingencies.
Finland
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
Oman
India
India
India
USA
UAE
India
India
USA
India
India
India
India
USA
UAE
Italy
7
7
7
Including EPC, project management, sewage treatment plant and pipeline, power, road and contingencies.
Including EPC, project management, sewage treatment plant and pipeline, power, road and contingencies.
Including EPC, project management, sewage treatment plant and pipeline, power, road and contingencies.
11
Alara Resources Annual Report 2021
Wash-hi Majaza Copper Project
•
bought-out items.
•
• Completion of front-end engineering design (FEED) and preparation of technical specifications for all
Completion of front-end engineering design (FEED) and preparation of technical
specifications for all bought-out items.
Completion of detailed engineering for plant and infrastructure facilities (excluding geo-
technical studies).
Preparation of technical bid documents for the onsite construction work.
Expediting the vendor manufacturing process and delivery schedule.
Inspection and co-ordination of any items to be sourced from India.
• Completion of detailed engineering for plant and infrastructure facilities (excluding geo-technical studies).
•
• Preparation of technical bid documents for the onsite construction work.
•
• Expediting the vendor manufacturing process and delivery schedule.
•
•
Inspection and co-ordination of any items to be sourced from India.
Project Engineering Progress
With commencement of procurement orders of major equipment, and therefore availability of
Project engineering progress
OEM specification data plans are now in place to augment the detailed phase of engineering as
With commencement of procurement orders of major equipment, and therefore availability of OEM
shown below.
specification data plans are now in place to augment the detailed phase of engineering as shown below.
Engineering design progress
Engineering design progress
Project Water Supply
Project Water Supply
1,200m³ of process water per day will be supplied by tankers sourced from sewage water treatment plants
1,200m³ of process water per day will be supplied by tankers sourced from sewage water
at Mudhaibi and Nizwa. An 18,000m³ water storage reservoir will be constructed on site. Potable water will
treatment plants at Mudhaibi and Nizwa. An 18,000m³ water storage reservoir will be constructed
be sourced from bores on site and treated appropriately. Project water supply requirements have been
on site. Potable water will be sourced from bores on site and treated appropriately. Project water
reduced from the level specified in the DFS by the adoption of a dry tailings system.
supply requirements have been reduced from the level specified in the DFS by the adoption of a
Project Power supply
dry tailings system.
The power supply will be sourced from two feeders from Omani electricity company MZEC, approximately
2 km from the project site. A local contractor has been appointed to design, supply and construct overhead
Project Power Supply
power lines and the primary substation at the Project site.
The power supply will be sourced from two feeders from Omani electricity company MZEC,
Mining Contractor
approximately 2 km from the project site. A local contractor has been appointed to design, supply
Al Hadeetha Resources LLC (AHRL) entered contract with Alara Resources LLC (ARL) for ARL to perform
and construct overhead power lines and the primary substation at the Project site.
mining services for AHRL over ten years at a cost of approximately USD 126m (AUD 167.83m).
Metallurgical drilling and tests
Mining Contractor
The ARL drilling team completed metallurgical test work program in the year. The drilling campaign
Al Hadeetha Resources LLC (AHRL) entered contract with Alara Resources LLC (ARL) for ARL to
consisted of 22 inclined core drill holes distributed over the known extremity of the ore body area, totalling
perform mining services for AHRL over ten years at a cost of approximately USD 126m (AUD
3434.70m. It was aimed at obtaining core samples required for the Geochemical Assays and Metallurgical
167.83m).
test works. A total of 1,862 half core sample intervals (inclusive of QA/QC samples) were analyzed at ALS
Arabia, Jeddah after sample preparations at ALS, Arabia-Biyaq in Oman. As of now, all the assays have
been received. They have been reviewed and validated by the Bedrock Mineral Resource Consultancy
(BMRC).
12
Alara Resources Annual Report 2021
Wash-hi Majaza Copper Project
Metallurgical Drilling and Tests
The ARL drilling team completed metallurgical test work program in the year. The drilling campaign
consisted of 22 inclined core drill holes distributed over the known extremity of the ore body
area, totalling 3434.70m. It was aimed at obtaining core samples required for the Geochemical
Assays and Metallurgical test works. A total of 1,862 half core sample intervals (inclusive of QA/
QC samples) were analyzed at ALS Arabia, Jeddah after sample preparations at ALS, Arabia-Biyaq
in Oman. As of now, all the assays have been received. They have been reviewed and validated
by the Bedrock Mineral Resource Consultancy (BMRC).
Metallurgical drilling was completed at the Wash-hi deposit. A total of 3,434.7 metres were drilled
in 22 holes. The table below shows drillhole details, while the figure following shows the drillhole
locations.
Metallurgical drilling was completed at the Wash-hi deposit. A total of 3,434.7 metres were drilled in 22
Metallurgical drilling was completed at the Wash-hi deposit. A total of 3,434.7 metres were drilled
holes. The table below shows drillhole details, while the figure following shows the drillhole locations.
in 22 holes. The table below shows drillhole details, while the figure following shows the drillhole
locations.
Type Core
Hole ID NO
North
EOH
East
RL
Azimuth
48
48
48.7
48.7
48.7
48.7
48.7
48.6
48.7
48.6
48.7
47.4
47.4
48.5
48.7
48.7
48.7
48.7
48.7
48.7
48.7
49
Inclination
-70
-70
-69.5
-70
-69.4
-69.9
-69.6
-70.3
-69
-67.6
-69.3
-70.3
-69.6
-69.4
-70
-71.6
-69.6
-69.8
-69.7
-69.8
-70.3
-68.3
WH20MTDD01 602138.071 2517880.078 456.343 MET
HQ
WH20MTDD02 602105.110 2517918.042 456.306 MET HQ/NQ
WH20MTDD03 602068.292 2517885.426 456.091 MET
HQ
WH20MTDD04 602025.902 2517847.181 455.989 MET HQ/NQ
WH20MTDD05 602043.341 2517923.759 456.282 MET HQ/NQ
HQ
WH20MTDD06 602064.951 2517809.851 455.884 MET
HQ
WH20MTDD07 602101.556 2517842.886 456.082 MET
HQ
WH20MTDD08 602168.266 2517710.372 455.729 MET
HQ
WH20MTDD09 602201.528 2517739.164 456.980 MET
HQ
WH20MTDD10 602230.256 2517763.804 458.589 MET
HQ
WH20MTDD11 602222.174 2517668.314 456.570 MET
HQ
WH20MTDD12 602226.171 2517586.889 454.792 MET
HQ
WH20MTDD13 602318.794 2517672.811 465.209 MET
HQ
WH20MTDD14 602272.989 2517577.296 455.213 MET
HQ
WH20MTDD15 602387.123 2517597.715 457.943 MET
HQ
WH20MTDD16 602426.596 2517562.716 455.872 MET
HQ
WH20MTDD17 602393.604 2517529.295 454.825 MET
HQ
WH20MTDD18 602304.736 2517527.227 454.535 MET
HQ
WH20MTDD19 602106.259 2517703.053 455.380 MET
HQ
WH20MTDD20 602117.609 2517787.414 455.830 MET
HQ
WH20MTDD21 602178.182 2517840.214 456.416 MET
WH20MTDD22 602134.521 2517939.017 456.452 MET
HQ
Metallurgical drill-hole results from Wash-hi Majaza copper deposit
Metallurgical drill-hole results from Wash-hi Majaza copper deposit
144.00
159.00
225.00
249.00
191.75
258.00
199.10
170.45
123.00
75.60
150.00
187.50
103.30
144.00
72.00
84.00
114.00
141.00
255.00
181.00
106.00
102.00
13
Alara Resources Annual Report 2021
Wash-hi Majaza Copper Project
Metallurgical drill holes at Wash-hi Majaza copper deposit
Metallurgical Testwork
Mr Gary Patrick, MAusIMM, CP (Met) was appointed to oversee the metallurgical testwork program
being carried out by Wardell Armstrong International, UK.
Sample Selection
A total of 1,862 core samples including QC samples were analysed by ALS Jeddah for geochemical
analysis.
Comminution samples were selected to represent the three main host rock types, namely MET001C,
MET002C and MET003C. Drillhole intervals were selected to prepare Master Composites for ore
characterisation testing.
Sample intervals for flotation verification tests were selected to represent the:
•
•
•
Starter pit shell – North Deposit (MET001C)
Final pit shell – North Deposit (MET002C)
Central/South Deposits (MET003C)
Comminution Tests Results
A full suite of ore characterisation tests was carried out on each of the main host rock types
14
Alara Resources Annual Report 2021 Wash-hi Majaza Copper Project
MET003C
MNBST
MET003C
0.2171
MNBST
5.57
0.2171
13.40
5.57
14.96
13.40
14.96
MET002C
MM/SMS +
MNBST
MET002C
0.5903
MM/SMS +
7.13
MNBST
0.5903
13.12
7.13
14.42
13.12
14.42
MET001C
BAS/ BAS +
MST
MET001C
0.0374
BAS/ BAS +
6.76
MST
0.0374
14.92
6.76
14.06
14.92
14.06
including:
SMC tests
•
•
Abrasion tests
• Crushing Work Index tests
Crushing Work Index tests
•
• Bond rod mill Work Index tests
•
Bond rod mill Work Index tests
• Crushing Work Index tests
• Bond ball mill Work Index tests
•
Bond ball mill Work Index tests
• Bond rod mill Work Index tests
Results of the ore characterisation tests are summarised in this table.
Results of the ore characterisation tests are summarised in this table.
• Bond ball mill Work Index tests
Test
MET ID
Results of the ore characterisation tests are summarised in this table.
Lithology ID
Description
Units
MET ID
Test
grams
Ai
Lithology ID
Description
kWh/t
CWi
Units
grams
Ai
kWh/t
BRWi
kWh/t
CWi
kWh/t
BBWi
Ore characterisation test results
kWh/t
BRWi
Ore characterisation test results
kWh/t
BBWi
Major Observations
Ore characterisation test results
Major observations
The testing showed the average Bond Crusher Work Index values to range from 5.57kWh/t for the MET003C
The testing showed the average Bond Crusher Work Index values to range from 5.57kWh/t for
Major Observations
Composite to 7.13kWh/t for the MET002C Composite. Based on the classification criteria provided, the
the MET003C Composite to 7.13kWh/t for the MET002C Composite. Based on the classification
The testing showed the average Bond Crusher Work Index values to range from 5.57kWh/t for the MET003C
MET001C and MET003C Composites were determined to be “very easy” with respect to crushability, whilst
criteria provided, the MET001C and MET003C Composites were determined to be “very easy”
Composite to 7.13kWh/t for the MET002C Composite. Based on the classification criteria provided, the
the MET002C Composite was identified as being “easy”.
with respect to crushability, whilst the MET002C Composite was identified as being “easy”.
MET001C and MET003C Composites were determined to be “very easy” with respect to crushability, whilst
The results of the SMC testing showed the Axb values to range from 41.81 for the MET001C Composite to
The results of the SMC testing showed the Axb values to range from 41.81 for the MET001C
the MET002C Composite was identified as being “easy”.
53.52 for the MET004C Composite. The SCSE values ranged from 8.54 kWh/t for the MET004C Composite
Composite to 53.52 for the MET004C Composite. The SCSE values ranged from 8.54 kWh/t for
The results of the SMC testing showed the Axb values to range from 41.81 for the MET001C Composite to
to 10.39 kWh/t for the MET002C Composite.
the MET004C Composite to 10.39 kWh/t for the MET002C Composite.
53.52 for the MET004C Composite. The SCSE values ranged from 8.54 kWh/t for the MET004C Composite
The results showed the Abrasion Index values range from 0.0374 for the MET001C Composite to 0.5903 for
The results showed the Abrasion Index values range from 0.0374 for the MET001C Composite to
to 10.39 kWh/t for the MET002C Composite.
the MET002C Composite. Based on the standard classification criteria, the MET001C Composite was
0.5903 for the MET002C Composite. Based on the standard classification criteria, the MET001C
The results showed the Abrasion Index values range from 0.0374 for the MET001C Composite to 0.5903 for
classified as being “non-abrasive”, the MET002C Composite was classified as being “slightly abrasive” and
Composite was classified as being “non-abrasive”, the MET002C Composite was classified as
the MET002C Composite. Based on the standard classification criteria, the MET001C Composite was
the MET003C Composite was classified as being “medium abrasive”.
being “slightly abrasive” and the MET003C Composite was classified as being “medium abrasive”.
classified as being “non-abrasive”, the MET002C Composite was classified as being “slightly abrasive” and
The results of the Bond Rod Mill Work Index tests showed the Work Index values to range from 13.12kWh/t
The results of the Bond Rod Mill Work Index tests showed the Work Index values to range from
the MET003C Composite was classified as being “medium abrasive”.
for the MET002C Composite to 14.92kWh/t for the MET001C Composite. On this basis, the MET002C and
13.12kWh/t for the MET002C Composite to 14.92kWh/t for the MET001C Composite. On this
The results of the Bond Rod Mill Work Index tests showed the Work Index values to range from 13.12kWh/t
MET003C Composites were classified as being “medium” with respect to ore hardness/grindability. The
basis, the MET002C and MET003C Composites were classified as being “medium” with respect
for the MET002C Composite to 14.92kWh/t for the MET001C Composite. On this basis, the MET002C and
MET001C was classified as being “hard” with respect to ore hardness/grindability.
MET003C Composites were classified as being “medium” with respect to ore hardness/grindability. The
to ore hardness/grindability. The MET001C was classified as being “hard” with respect to ore
The results showed that the Bond Ball Mill Work Index values range from 14.06kWh/t for the MET001C
MET001C was classified as being “hard” with respect to ore hardness/grindability.
hardness/grindability.
Composite to 14.96kWh/t for the MET003C Composite. The three samples were classified as “hard” with
The results showed that the Bond Ball Mill Work Index values range from 14.06kWh/t for the
The results showed that the Bond Ball Mill Work Index values range from 14.06kWh/t for the MET001C
respect to fine ore grindability.
Composite to 14.96kWh/t for the MET003C Composite. The three samples were classified as “hard” with
MET001C Composite to 14.96kWh/t for the MET003C Composite. The three samples were
Heavy Medium Separation (HMS)
respect to fine ore grindability.
classified as “hard” with respect to fine ore grindability.
To verify HMS tests conducted in 2013, fresh float-sink tests were carried out on the lower-grade Central-
Heavy Medium Separation (HMS)
South Composite (MET03F). The Composite sample was initially screened into the optimum size fraction of
Heavy Medium Separation (HMS)
To verify HMS tests conducted in 2013, fresh float-sink tests were carried out on the lower-grade Central-
-3.35mm+500µm, and the test carried out at a specific gravity of 2.8.
To verify HMS tests conducted in 2013, fresh float-sink tests were carried out on the lower-grade
South Composite (MET03F). The Composite sample was initially screened into the optimum size fraction of
Central-South Composite (MET03F). The Composite sample was initially screened into the
Results of the float-sink analysis are summarised in the table below.
-3.35mm+500µm, and the test carried out at a specific gravity of 2.8.
optimum size fraction of -3.35mm+500µm, and the test carried out at a specific gravity of 2.8.
Mass
Assay
Size
Results of the float-sink analysis are summarised in the table below.
Results of the float-sink analysis are summarised in the table below.
Grams %
TS
Cu% Au ppm
Fraction
TS%
0.08
17.52
0.16
60.95
13,878
3.49
-3.35 mm
Mass
Assay
Size
82.48
25.65
1.01
1.32
39.05
8,890
+ 500µm
TS
TS%
Cu% Au ppm
Grams %
Fraction
22,768
12.14 100.00 100.00 100.00
0.44
0.61
100.00
Feed Testwork
17.52
3.49
0.08
0.16
60.95
13,878
-3.35 mm
HMS Test results
25.65
1.01
1.32
39.05
8,890
82.48
+ 500µm
12.14 100.00 100.00 100.00
0.44
0.61
100.00
22,768
Feed Testwork
Results show that 61% of the feed reported to the floats (rejects) fraction. However copper and gold losses
HMS Test results
HMS test results
to the rejects fraction were high at 16% and 11% respectively.
Results show that 61% of the feed reported to the floats (rejects) fraction. However copper and gold losses
As a result of these high metal losses to the rejects fraction it was decided not to progress with any further
15
to the rejects fraction were high at 16% and 11% respectively.
evaluation of HMS technology.
As a result of these high metal losses to the rejects fraction it was decided not to progress with any further
Flotation
evaluation of HMS technology.
Distribution (%)
Au
Cu
11.00
15.91
Distribution (%)
89.00
84.09
Au
Cu
11.00
15.91
89.00
84.09
Spec. Grav.
Separation
-2.8 / Floats
Spec. Grav.
+2.8 / Sinks
Separation
DMS Feed
-2.8 / Floats
+2.8 / Sinks
DMS Feed
Flotation
Flotation testing was being carried out during the reporting period on the three (3) main composites. Flotation
test parameters were taken from the previous testing undertaken by ALS. The ALS flotation circuit was also
Flotation testing was being carried out during the reporting period on the three (3) main composites. Flotation
used as the base case for testing and the results were found to be in close proximity only.
test parameters were taken from the previous testing undertaken by ALS. The ALS flotation circuit was also
used as the base case for testing and the results were found to be in close proximity only.
Alara Resources Annual Report 2021
Wash-hi Majaza Copper Project
Results show that 61% of the feed reported to the floats (rejects) fraction. However copper and
gold losses to the rejects fraction were high at 16% and 11% respectively.
As a result of these high metal losses to the rejects fraction it was decided not to progress with
any further evaluation of HMS technology.
Flotation
Flotation
Flotation testing was being carried out during the reporting period on the three (3) main
Flotation testing was being carried out during the reporting period on the three (3) main composites. Flotation
composites. Flotation test parameters were taken from the previous testing undertaken by ALS.
test parameters were taken from the previous testing undertaken by ALS. The ALS flotation circuit was also
The ALS flotation circuit was also used as the base case for testing and the results were found to
used as the base case for testing and the results were found to be in close proximity only.
be in close proximity only.
Batch rougher optimisation tests were carried out investigating float residence times, reagent addition rates
Batch rougher optimisation tests were carried out investigating float residence times, reagent
and alternate collectors. Open cycle cleaner tests were carried out with and without a regrinds stage and
addition rates and alternate collectors. Open cycle cleaner tests were carried out with and without
varying 1st cleaner float times.
a regrinds stage and varying 1st cleaner float times.
A single locked cycle test was carried out on each of the master composites to determine the final
A single locked cycle test was carried out on each of the master composites to determine the final
metallurgical performance. Results of the locked cycle tests are summarised in the two following tables. The
metallurgical performance. Results of the locked cycle tests are summarised in the two following
following figure shows composite sample zones within the orebody.
tables. The following figure shows composite sample zones within the orebody.
The final metallurgical performance for the different metallurgical composites is:
The final metallurgical performance for the different metallurgical composites is:
•
• North Upper: copper recovery of 85% at a final concentrate grade of 28.4%Cu
•
• North Lower: copper recovery of 92% at a final concentrate grade of 25.1%Cu
•
• Central-South: copper recovery of 87% at a final concentrate grade of 20.1%Cu
The results show high copper recoveries can be achieved to a saleable concentrate grade of
The results show high copper recoveries can be achieved to a saleable concentrate grade of >20%Cu.
>20%Cu.
A trade-off between copper grade and recovery can be made to optimise copper recovery to a
A trade-off between copper grade and recovery can be made to optimise copper recovery to a fixed copper
fixed copper concentrate grade based on discussions with metal traders.
concentrate grade based on discussions with metal traders.
Test work carried out at Wardell Armstrong has confirmed:
Test work carried out at Wardell Armstrong has confirmed:
•
The Wash-hi Majaza ores exhibit low abrasiveness and moderate grinding characteristics
• The Wash-hi Majaza ores exhibit low abrasiveness and moderate grinding characteristics
Flotation tests confirm the optimum primary grind size as a P80 of 75µm
•
• Flotation tests confirm the optimum primary grind size as a P80 of 75µm
•
The flotation circuit is fairly conventional with a rougher/scavenger circuit, followed by
regrinding of the rougher/scavenger concentrates, and two-stage cleaning to produce a
• The flotation circuit is fairly conventional with a rougher/scavenger circuit, followed by regrinding of the
saleable copper concentrate, with minor gold credits
rougher/scavenger concentrates, and two-stage cleaning to produce a saleable copper concentrate, with
An optimum regrind size of P80 of 25µm is required to ensure selectivity between
minor gold credits
chalcopyrite and pyrite
North Upper: copper recovery of 85% at a final concentrate grade of 28.4%Cu
North Lower: copper recovery of 92% at a final concentrate grade of 25.1%Cu
Central-South: copper recovery of 87% at a final concentrate grade of 20.1%Cu
• An optimum regrind size of P80 of 25µm is required to ensure selectivity between chalcopyrite and pyrite
At the time of writing this Annual Report, dewatering testing (thickening and filtration) was still
At the time of writing this Annual Report, dewatering testing (thickening and filtration) was still ongoing at
ongoing at Wardell Armstrong.
Wardell Armstrong.
Testing at Wardell Armstrong confirmed that the overall metallurgical performance is dependent
Testing at Wardell Armstrong confirmed that the overall metallurgical performance is dependent on the
on the copper head grade to the plant, i.e. a higher copper grade results in a higher copper
copper head grade to the plant, i.e. a higher copper grade results in a higher copper recovery to the final
recovery to the final copper concentrate. The process plant is designed to treat a head grade of
copper concentrate. The process plant is designed to treat a head grade of 1.3%Cu, for which a copper
1.3%Cu, for which a copper recovery of 92.1% at a concentrate grade of 24.6% Cu, and mass pull
recovery of 92.1% at a concentrate grade of 24.6% Cu, and mass pull of 4% by weight is obtained. Latest
of 4% by weight is obtained. Latest process technologies will be investigated to further improve
process technologies will be investigated to further improve the metallurgical performance of Cu and Au.
the metallurgical performance of Cu and Au.
Weight
(%)
Distribution (%)
Assay (%)
Product
Cycle
Au
Cu
•
3.17
12.09
84.74
100.00
28.42 3.77
0.78 1.09
0.08 0.43
1.06 0.62
Cu
S(TOT)
84.59
38.34
8.83
27.74
18.39
6.59
20.15 100.00
Au
19.33
21.32
59.35
100.00
S(TOT)
6.03
16.64
77.33
100.00
Cleaner 2 Conc
Cl 1 Tailings
Rougher Tailings
Feed
North Upper Ore Zone – LCT 1
North Upper Ore Zone – LCT 1
5+6
5+6
5+6
Weight
(g)
126.71
483.34
3388.24
3998.29
Product
Cycle
Cleaner 2 Conc
Cl 1 Tailings
Rougher Tailings
Feed
5+6
5+6
5+6
Weight
(g)
156.80
649.03
3157.94
Weight
(%)
3.96
16.37
79.67
3963.77
100.00
North Lower Ore Zone – LCT 1
16
Cu
25.11
0.31
0.04
1.08
Assay (%)
Distribution (%)
Au
1.36
0.28
0.08
0.16
S(TOT)
39.87
28.98
6.98
Cu
92.21
4.78
3.01
Au
33.49
28.82
37.69
S(TOT)
13.27
39.93
46.80
11.88 100.00
100.00
100.00
Alara Resources Annual Report 2021
Batch rougher optimisation tests were carried out investigating float residence times, reagent addition rates
Batch rougher optimisation tests were carried out investigating float residence times, reagent addition rates
and alternate collectors. Open cycle cleaner tests were carried out with and without a regrinds stage and
and alternate collectors. Open cycle cleaner tests were carried out with and without a regrinds stage and
varying 1st cleaner float times.
varying 1st cleaner float times.
A single locked cycle test was carried out on each of the master composites to determine the final
A single locked cycle test was carried out on each of the master composites to determine the final
metallurgical performance. Results of the locked cycle tests are summarised in the two following tables. The
metallurgical performance. Results of the locked cycle tests are summarised in the two following tables. The
following figure shows composite sample zones within the orebody.
following figure shows composite sample zones within the orebody.
The final metallurgical performance for the different metallurgical composites is:
The final metallurgical performance for the different metallurgical composites is:
• North Upper: copper recovery of 85% at a final concentrate grade of 28.4%Cu
• North Upper: copper recovery of 85% at a final concentrate grade of 28.4%Cu
• North Lower: copper recovery of 92% at a final concentrate grade of 25.1%Cu
• North Lower: copper recovery of 92% at a final concentrate grade of 25.1%Cu
• Central-South: copper recovery of 87% at a final concentrate grade of 20.1%Cu
• Central-South: copper recovery of 87% at a final concentrate grade of 20.1%Cu
The results show high copper recoveries can be achieved to a saleable concentrate grade of >20%Cu.
The results show high copper recoveries can be achieved to a saleable concentrate grade of >20%Cu.
A trade-off between copper grade and recovery can be made to optimise copper recovery to a fixed copper
A trade-off between copper grade and recovery can be made to optimise copper recovery to a fixed copper
concentrate grade based on discussions with metal traders.
concentrate grade based on discussions with metal traders.
Test work carried out at Wardell Armstrong has confirmed:
Test work carried out at Wardell Armstrong has confirmed:
• The Wash-hi Majaza ores exhibit low abrasiveness and moderate grinding characteristics
• The Wash-hi Majaza ores exhibit low abrasiveness and moderate grinding characteristics
• Flotation tests confirm the optimum primary grind size as a P80 of 75µm
• Flotation tests confirm the optimum primary grind size as a P80 of 75µm
• The flotation circuit is fairly conventional with a rougher/scavenger circuit, followed by regrinding of the
• The flotation circuit is fairly conventional with a rougher/scavenger circuit, followed by regrinding of the
rougher/scavenger concentrates, and two-stage cleaning to produce a saleable copper concentrate, with
rougher/scavenger concentrates, and two-stage cleaning to produce a saleable copper concentrate, with
minor gold credits
minor gold credits
Wardell Armstrong.
Wardell Armstrong.
• An optimum regrind size of P80 of 25µm is required to ensure selectivity between chalcopyrite and pyrite
• An optimum regrind size of P80 of 25µm is required to ensure selectivity between chalcopyrite and pyrite
At the time of writing this Annual Report, dewatering testing (thickening and filtration) was still ongoing at
At the time of writing this Annual Report, dewatering testing (thickening and filtration) was still ongoing at
Testing at Wardell Armstrong confirmed that the overall metallurgical performance is dependent on the
Testing at Wardell Armstrong confirmed that the overall metallurgical performance is dependent on the
copper head grade to the plant, i.e. a higher copper grade results in a higher copper recovery to the final
copper head grade to the plant, i.e. a higher copper grade results in a higher copper recovery to the final
copper concentrate. The process plant is designed to treat a head grade of 1.3%Cu, for which a copper
copper concentrate. The process plant is designed to treat a head grade of 1.3%Cu, for which a copper
recovery of 92.1% at a concentrate grade of 24.6% Cu, and mass pull of 4% by weight is obtained. Latest
recovery of 92.1% at a concentrate grade of 24.6% Cu, and mass pull of 4% by weight is obtained. Latest
process technologies will be investigated to further improve the metallurgical performance of Cu and Au.
process technologies will be investigated to further improve the metallurgical performance of Cu and Au.
Product
Product
Cycle
Cycle
Weight
Weight
Weight
Weight
Assay (%)
Assay (%)
Distribution (%)
Distribution (%)
(g)
(g)
Cu
Cu
Au
Au
S(TOT)
S(TOT)
Cu
Cu
Au
Au
S(TOT)
S(TOT)
Cleaner 2 Conc
Cleaner 2 Conc
Cl 1 Tailings
Cl 1 Tailings
Rougher Tailings
Rougher Tailings
Feed
Feed
North Upper Ore Zone – LCT 1
North Upper Ore Zone – LCT 1
5+6
5+6
5+6
5+6
5+6
5+6
126.71
126.71
483.34
483.34
3388.24
3388.24
3998.29
3998.29
(%)
(%)
3.17
3.17
12.09
12.09
84.74
84.74
100.00
100.00
28.42 3.77
28.42 3.77
0.78 1.09
0.78 1.09
0.08 0.43
0.08 0.43
1.06 0.62
1.06 0.62
84.59
38.34
84.59
38.34
8.83
27.74
8.83
27.74
6.59
18.39
6.59
18.39
20.15 100.00
20.15 100.00
19.33
19.33
21.32
21.32
59.35
59.35
100.00
100.00
6.03
6.03
16.64
16.64
77.33
77.33
100.00
100.00
Wash-hi Majaza Copper Project
Product
Product
Cycle
Cycle
Cleaner 2 Conc
Cleaner 2 Conc
Cl 1 Tailings
Cl 1 Tailings
Rougher Tailings
Rougher Tailings
Feed
Feed
North Lower Ore Zone – LCT 1
North Lower Ore Zone – LCT 1
North Lower Ore Zone – LCT 1
5+6
5+6
5+6
5+6
5+6
5+6
Weight
Weight
(g)
(g)
156.80
156.80
649.03
649.03
3157.94
3157.94
3963.77
3963.77
Weight
Weight
(%)
(%)
3.96
3.96
16.37
16.37
79.67
79.67
100.00
100.00
Assay (%)
Assay (%)
Au
Au
1.36
1.36
0.28
0.28
0.08
0.08
0.16
0.16
Cu
Cu
25.11
25.11
0.31
0.31
0.04
0.04
1.08
1.08
Distribution (%)
Distribution (%)
S(TOT)
S(TOT)
39.87
39.87
28.98
28.98
6.98
6.98
Cu
Cu
92.21
92.21
4.78
4.78
3.01
3.01
11.88 100.00
11.88 100.00
Au
Au
33.49
33.49
28.82
28.82
37.69
37.69
100.00
100.00
S(TOT)
S(TOT)
13.27
13.27
39.93
39.93
46.80
46.80
100.00
100.00
Product
Product
Cycle
Cycle
Cleaner 2 Conc
Cleaner 2 Conc
Cl 1 Tailings
Cl 1 Tailings
Rougher Tailings
Rougher Tailings
Feed
Feed
Central-South Ore Zone – LCT 1
Central-South Ore Zone – LCT 1
Central-South Ore Zone – LCT 1
5+6
5+6
5+6
5+6
5+6
5+6
Weight
Weight
(g)
(g)
125.72
125.72
507.30
507.30
3348.85
3348.85
3981.87
3981.87
Weight
Weight
(%)
(%)
3.16
3.16
12.74
12.74
84.10
84.10
100.00
100.00
Assay (%)
Assay (%)
Au
Au
2.00
2.00
0.72
0.72
0.32
0.32
0.42
0.42
Cu
Cu
20.11
20.11
0.41
0.41
0.05
0.05
0.73
0.73
Distribution (%)
Distribution (%)
Cu
S(TOT)
Cu
S(TOT)
86.62
36.93
86.62
36.93
7.16
18.21
7.16
18.21
6.22
10.99
6.22
10.99
12.73 100.00
12.73 100.00
Au
Au
15.06
15.06
21.87
21.87
63.07
63.07
100.00
100.00
S(TOT)
S(TOT)
9.16
9.16
18.22
18.22
72.62
72.62
100.00
100.00
Project Development – Next Stages
The next stage of Project development involves
•
•
•
•
completion of project engineering and plant and equipment procurement
Construction of plant and associated infrastructure
Mobilisation of Mining Contractor and commencement of pre-stripping activities
Plant commissioning and production of copper concentrates
Future Growth Opportunities
Additional Copper Potential
The Wash-hi exploration license has significant potential for the discovery of additional copper
deposits. Most of the area around Wash-hi Majaza is covered by ancient and recent alluvial fans.
Based on the premise that sulfide mineralization in the area is coincident with a distinct reduction
in the magnetic susceptibility values of basaltic rocks, four other targets have been identified
for further follow-up, as shown in the next figure. It is proposed to follow-up these areas with
electrical geophysical methods (EM or IP) to confirm the target potential followed by drilling.
Potential RTP magnetic regional exploration targets in Wash-hi licenses
17
Alara Resources Annual Report 2021
Mullaq Exploration License
Mullaq Exploration License
The Mullaq Exploration License area is adjacent to Wash-hi Exploration License. The Mullaq
prospect lies within the Oman Mountains, approximately 160 kilometres south-east of Muscat via
sealed road.
Previous explorers in the Mullaq License area discovered copper mineralization in layered gabbro
sequence, yet a large part of the tenement still remains unexplored. So far, no resource modelling
has been conducted at Mullaq, however geophysical surveys and drilling campaigns by Alara
have identified the presence of potential mineral deposits in the area.
Exploration Targets – Mineralisation
Exploration Targets at Mullaq are estimated purely based on the size, geological perception and
structural interpretation of the geophysical target, and without any other obvious geochemical or
lithological or geo-statistical support. Anticipated (conceptual) copper and gold mineralization
statistical support. Anticipated (conceptual) copper and gold mineralization targets in the Mullaq license area
are shown in the following table.
targets in the Mullaq license area are shown in the following table.
License area
Mullaq 41km2 MQT-1
Target No Target Type
Extensions of non JORC
resources at Daris 3A5
Untested geophysical targets
MQT-2
Tonnage (Range)
0.25 – 1 MT
Grade Cu%
1 – 3%
Au (g/t)
0.09 – 1.2
3 – 4 MT
0.9 – 2%
0.09 – 0.3
Mullaq exploration targets (grades are approximations)
Mullaq exploration targets (grades are approximations)
(Note: The potential quantity and grade of the above exploration targets are conceptual in
(Note: The potential quantity and grade of the above exploration targets are conceptual in nature. There has
been insufficient exploration to determine a mineral resource and there is no certainty that further exploration
nature. There has been insufficient exploration to determine a mineral resource and there is no
work will result in the determination of mineral resources or that the production target itself will be realised.)
certainty that further exploration work will result in the determination of mineral resources or that
the production target itself will be realised.)
Mullaq Mining License Application in Progress
With the grant of a mining license and the development of a copper concentrator plant at the nearby Wash-
Mullaq Mining License Application in Progress
hi Majaza, any high-grade deposit delineated at Mullaq could be developed on hub and spoke basis.
With the grant of a mining license and the development of a copper concentrator plant at the
A mining license application at Mullaq submitted in 2013 has progressed through various Ministries in Oman.
nearby Wash-hi Majaza, any high-grade deposit delineated at Mullaq could be developed on
An Environmental Impact Assessment was also completed. AHRL considers a Mining Licence clearance to
hub and spoke basis.
be key to further exploration work in the area. The timeframe for the grant of the Mining licence and conduct
A mining license application at Mullaq submitted in 2013 has progressed through various
of the exploration program designed to test the exploration target is estimated to be three years.
Ministries in Oman. An Environmental Impact Assessment was also completed. AHRL considers
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a Mining Licence clearance to be key to further exploration work in the area. The timeframe for
Al Ajal Exploration License
the grant of the Mining licence and conduct of the exploration program designed to test the
exploration target is estimated to be three years.
The Al Ajal Prospect is located near the village of Al Ajal in the Taww area, near the northern coast of the
[The remainder of this page is intentionally blank]
Sultanate of Oman and about 65km west of Muscat, as shown in the following figure.
18
Alara Resources Annual Report 2021
Al Ajal Exploration License
The Al Ajal Prospect is located near the village of Al Ajal in the Taww area, near the northern coast of the
Sultanate of Oman and about 65km west of Muscat, as shown in the following figure.
Al Ajal Exploration License
Al Ajal Exploration License
The Al Ajal Prospect is located near the village of Al Ajal in the Taww area, near the northern coast
of the Sultanate of Oman and about 65km west of Muscat, as shown in the following figure.
Al Ajal Mining License application area
Al Ajal Mining License application area
Exploration Targets – Mineralisation
Exploration Targets – Mineralisation
Exploration Targets at Mullaq are estimated purely based on the size, geological perception and
Exploration Targets at Mullaq are estimated purely based on the size, geological perception and structural
structural interpretation of the geophysical target, and without any other obvious geochemical or
interpretation of the geophysical target, and without any other obvious geochemical or lithological or geo-
lithological or geo-statistical support. Anticipated (conceptual) copper and gold mineralization
statistical support. Anticipated (conceptual) copper and gold mineralization targets in the Mullaq license
targets in the Mullaq license area, are shown in the following table.
area, are shown in the following table.
License area
Mullaq 41km2 MQT-1
Target No Target Type
MQT-2
Extensions of non JORC
resources at Daris 3A5
Untested geophysical
targets
Tonnage (Range)
0.25 – 1 MT
Grade Cu%
1 – 3%
Au (g/t)
0.09 – 1.2
3 – 4 MT
0.9 – 2%
0.09 – 0.3
Mullaq exploration targets (grades are approximations
Mullaq exploration targets (grades are approximations)
(Note: The potential quantity and grade of the above exploration targets are conceptual in nature. There
(Note: The potential quantity and grade of the above exploration targets are conceptual in
has been insufficient exploration to determine a mineral resource and there is no certainty that further
nature. There has been insufficient exploration to determine a mineral resource and there is no
exploration work will result in the determination of mineral resources or that the production target itself will
certainty that further exploration work will result in the determination of mineral resources or that
be realised.)
the production target itself will be realised.)
19
Alara Resources Annual Report 2021
Mullaq Exploration License
RTP magnetics regional exploration targets in Mullaq license areas
Next Steps - Mining License Application in Progress
With the grant of a mining license and the development of a copper concentrator plant at the
nearby Wash-hi Majaza, any high-grade deposit delineated at Mullaq could be developed on
hub and spoke basis.
A mining license application at Mullaq submitted in 2013 has progressed through various
Ministries in Oman. An Environmental Impact Assessment was also completed. AHRL considers
a Mining Licence clearance to be key to further exploration work in the area. The timeframe for
the grant of the Mining licence and conduct of the exploration program designed to test the
exploration target is estimated to be three years.
Al Ajal Exploration License
The Al Ajal Prospect is located near the village of Al Ajal in the Taww area, near the northern coast
of the Sultanate of Oman and about 65km west of Muscat, as shown in the next figure.
Alara carried out ground geophysical surveys over limited areas to confirm the geophysical
signatures of mineralisation from historical (non-JORC compliant) mineral estimates in the Al Ajal
License Area (see next figure).
20
Alara Resources Annual Report 2021 Al Ajal Exploration License
Prospective areas within Al Ajal Exploration License
EP slice at 100m depth
Exploration Potential – Future Opportunities
Preliminary exploration confirmed the presence of two more areas of potential positivity in similar
geological trends. The Al Ajal prospect is unique, as it is considered to be the only known mineral
occurrence in Oman Mountains not to be associated with the ophiolite volcanics of Oman. Despite
its small size and difficult terrain, in view of the high gold grades detected by previous explorers,
this prospect warrants further exploration for copper and gold-bearing deposits.
Mining License Application
A mining license application at Al Ajal submitted in 2013 has progressed through various Ministries
in Oman. AHRL considers the grant of a mining licence clearance as a key prerequisite to further
exploration work in the area.
A mining license application at Al Ajal submitted in 2013 has progressed through various Ministries
in Oman. AHRL considers the grant of a mining licence clearance as a key prerequisite to further
exploration work in the area.
21
Alara Resources Annual Report 2021
Daris Resources
Daris Resources LLC Copper-Gold Project
Daris Resorces LLC Copper-Gold Project
Daris Resources LLC is a 50-50 joint venture between Alara and Al Tamman Trading Establishment
LLC.
Daris Resources LLC is a 50-50 joint venture between Alara and Al Tamman Trading Establishment LLC.
The Daris Project comprises of one exploration licence (Block 7) of ~587km2 located approximately
The Daris Project comprises of one exploration licence (Block 7) of ~587km2 located approximately 150km
West of the Omani capital Muscat.
150km West of the Omani capital Muscat.
By conducting extensive exploration programs in Block 7, the Daris JV has defined resources at
By conducting extensive exploration programs in Block 7, the Daris JV has defined resources at Daris East
Daris East Prospect to measured category under JORC, identified mineralisation at the Daris 3A5
Prospect to measured category under JORC, identified mineralisation at the Daris 3A5 prospect and
several exploration targets.
prospect and several exploration targets.
Block 7 Exploration License and Mining License application areas
Block 7 Exploration License and Mining License application areas
Two Mining Licence applications filed over Daris East and Daris 3A-5 prospects within the
exploration licence remain pending. The following figure and table provide details of licenses
Two Mining Licence applications filed over Daris East and Daris 3A-5 prospects within the exploration
at Daris. Recent site visits conducted by Ministry officials gave positive indications for these
licence remain pending. The following figure and table provide details of licenses at Daris. Recent site visits
applications advancing towards issuance.five zinc sites with one in Al Khnaiguiyah
conducted by Ministry officials gave positive indications for these applications advancing towards issuance.
Block/License
Name
License
owner
Block 7 Al Tamman
Trading and
Est. LLC,
Oman
Exploration Licenses
Mining License within ELs
Alara
share
Area
Date of
Grant
Expiry
Renewal
applied
for
Status
Area
Date of
Application
Status
50%
2
Nov 2009 Nov 2012 May 2018 Deemed
587km
granted
Daris
East
3.2km2
Dec 2012
In
process
Daris 3A5
1.3km2
Dec 2012
In
process
Daris License details
Daris License details
22
Alara Resources Annual Report 2021
Daris East Prospect
Daris East Prospect
The copper resource for the Daris-East Prospect is outlined below:
The copper resource for the Daris-East Prospect is outlined below:
Ore type
Cut-off grade
Cu%
Measured
Indicated
Inferred
Tonnes
Cu%
Tonnes
Cu%
Tonnes
Cu%
Daris East Prospect
Sulphides
Oxides
Daris East prospect copper resource
Daris East prospect copper resource
The following drilling has been carried out at the Daris East Project:
110,000
86,000
130,000
96,000
0.50
0.50
2.50
0.89
2.20
0.7
30,000
2,000
2.00
1.00
•
The following drilling has been carried out at the Daris East Project:
• A total of 21 rotary (624m) and 41 diamond core (4,654m) holes totalling 5,278m have been drilled by
Alara to test shallow oxide mineralisation and to locate massive sulphide and stringer zones beneath
• A total of 21 rotary (624m) and 41 diamond core (4,654m) holes totalling 5,278m have
the oxide cap at the Daris-East prospect and to test geophysical targets in the vicinity.
been drilled by Alara to test shallow oxide mineralisation and to locate massive sulphide
In addition, historic drilling data from 44 holes totalling 4,353m has been included in the resource
and stringer zones beneath the oxide cap at the Daris-East prospect and to test
database.
geophysical targets in the vicinity.
Preliminary drilling at Daris 3A5 has intersected high-grade copper mineralisation. Alara plans to conduct
•
In addition, historic drilling data from 44 holes totalling 4,353m has been included in the
further drilling before making an updated resource estimation. The drill hole location map and intersection
resource database.
table are set out below.
Preliminary drilling at Daris 3A5 has intersected high-grade copper mineralisation. Alara plans
to conduct further drilling before making an updated resource estimation. The drill hole location
map and intersection table are set out below. .
Daris 3A5 Drill-hole locations
.
Daris 3A5 Drill-hole locations
23
Alara Resources Annual Report 2021
Daris East Prospect
Daris 3A5 drillhole results are set out in the table below.
Daris 3A5 drillhole results are set out in the table below.
Drill Hole
D3DC001
Intersections From (m)
Primary
Inclusion
Significant Mineralisation
To (m)
37.65
37.65
46.25
46.25
59
54.05
71.75
68.7
35.8
35.8
31
25
39
67
65.7
15
30
28.4
34.35
50.6
50.6
41
51.5
23
33.5
21
23
36
57
59.35
Length (m)
22.65
7.65
17.85
11.9
8.4
3.45
30.75
17.2
12.8
2.3
10
2
3
10
6.35
Mineralised Zone
Cu (%) Au (g/t) Ag (g/t)
50.68
77.95
22.51
24.07
20.34
46.79
16.75
28.95
31.11
106.37
5.41
23.67
1.23
17.82
27.48
1.61
4.69
3.85
5.74
4.45
10.28
4.69
8.05
0.74
3.92
0.07
0.06
0.85
5.62
8.58
3.39
3.71
2.61
2.06
1.36
3.1
1.56
2.67
6.62
5.2
3.34
7.13
0.01
1.16
1.78
D3DC002 Primary
Inclusion
Primary
Inclusion
Primary
Inclusion
Primary
Inclusion
Primary
Inclusion
Primary
Primary
Inclusion
D3DC003
D3DC008
D3DC009
D3DC010
Significant intersections from core drilling – Daris 3A5 prospect
Significant intersections from core drilling – Daris 3A5 prospect
Notes:
Notes:
• The cut-off grade is 0.2% Cu is in respect to intersections within the copper-rich zone.
•
The cut-off grade is 0.2% Cu is in respect to intersections within the copper-rich zone.
• The drill intercepts are reported as drilled. True thickness will be calculated at the interpretation and
The drill intercepts are reported as drilled. True thickness will be calculated at the
•
interpretation and resource modelling stage.
resource modelling stage.
Next Steps
Next Steps
The grant of the Mining License at Wash-hi Majaza has provided the Company with a basis to further
The grant of the Mining License at Wash-hi Majaza has provided the Company with a basis to
develop its copper exploration programs at Daris. Optional analysis study and an advanced scoping study
further develop its copper exploration programs at Daris. Optional analysis study and an advanced
conducted in 2014 identified multiple options for Daris East resources to underpin further work in Block 7.
The Daris JV has collaborated with Mineral Development of Oman in developing further exploration
scoping study conducted in 2014 identified multiple options for Daris East resources to underpin
programs for Blocks 7 and 8.
further work in Block 7. The Daris JV has collaborated with Mineral Development of Oman in
developing further exploration programs for Blocks 7 and 8.
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24
Alara Resources Annual Report 2021
Awtad Resources LLC Copper Project
Awtad Resources LLC Copper Project
The Awtad Project is located immediately adjacent to the Licence Area No. 7 (Block 7) comprising
the Daris Copper-Gold Project and comprises a mineral exploration licence (Block 8) of
approximately 497km.
The Company has signed a binding Heads of Agreement granting Alara an initial 10% interest in
the Project and a right to increase to a 70% shareholding in Awtad Copper LLC.
Block 8 Exploration License location
Alara has previously undertaken exploration activity on Block 8. Rock chip samples returned
multi-elemental enrichment of up to 2.68% Cu, 2.4ppm Ag, and 0.1% Zn, indicating a potential
base metal deposit below.
Alara Resources LLC
Alara Resources LLC (ARL) is a Joint Venture between Alara Oman Operations Pty Ltd (35%), a
wholly owned subsidiary of Alara Resources Limited, Southwest Pinnacle Exploration Ltd (SWPE)
an established Indian exploration and mining Company listed on the National Stock Exchange
India (35%) and Al Tasnim Infrastructure LLC (30%), a privately owned Omani company from the
Al Turki group, one of the largest construction companies in Oman.
Exploration and Mining Services
ARL with its drilling rigs continues to support exploration programs of Alara’s JV companies and
is also submitting tenders for drilling services to other mining companies in Oman.
25
Alara Resources Annual Report 2021
ARL drilling team
ARL drilling team
26
Alara Resources Annual Report 2021 ARL was issued a letter of intent for a ten-year mining contract at AHRL’s Wash-hi Majaza project.
Copper Exploration
ARL has previously submitted ten applications for copper exploration licenses, which remain
pending.
Saudi Arabia
Khnaiguiyah Zinc-Copper Project
The Khnaiguiyah Zinc-Copper Project is located approximately 170km south-west of the Saudi
Arabian capital city of Riyadh. A mining licence held by a former JV partner was cancelled in
2015. Alara, as sole funder of the Definitive Feasibility Study for the Khnaiguiyah Project, is poised
to restart the project once the licence is re-issued and is working with relevant parties in both the
private and public sectors to prepare for this.
The Khnaiguiyah Project involves the planned development and operation of an open-cut zinc-
copper mine and associated infrastructure over an approximate 13-year mine life. Alara has
invested over USD 30m into this Project, including over USD 23m (AUD 30.64m) to produce a
definitive feasibility study (DFS) which demonstrated a project with strong financials.
The Khnaiguiyah mining licence was cancelled in 2015, however, due to an impasse between
project participants. An auction for the re-issue of the mining licence is expected to be held in Q2
2022. Alara funded, and is now in the unique position of holding, the only DFS for this project.
Alara is working with various parties in both the private and public sectors to prepare for the
reissue of the licence. Alara’s possession of the DFS puts it in a good position to participate in the
future development of this project.
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27
Alara Resources Annual Report 2021 Board and Management
Board of Directors
Stephen Gethin, Barrister and Solicitor of the High Court of Australia
Non-Executive Chairman
Mr Gethin is a highly regarded professional with 30 years’ experience in the
provision of resources and corporate legal advice and documentation and
management of ASX-listed companies in a range of industries, including resources,
technology and investment.
He was involved in the establishment of iron-ore mines in Peru and the Pilbara as
General Counsel at Strike Resources Limited (ASX:SRK). Prior to his role at strike
he served as General Counsel and Company Secretary at ERG Limited (ASX:ERG)
a Perth-based international technology engineering company.
Atmavireshwar Sthapak B.Sc, MTech
Managing Director
Mr Sthapak is a geologist with 30 years’ experience specializing in mineral resource
exploration and evaluation studies. He joined the Company in 2011 as Exploration
Manager and led geological investigations in Oman spanning over 1000 sq. km
in five JV tenements in the country. His contribution resulted in identification of
copper mineralization in four tenements, definitions of JORC resources at Wash-
hi and Daris East and applications for mining licenses over five areas.
After being appointed Executive Director in 2015, Mr Sthapak contributed in
completion of a feasibility study, a maiden ore reserve statement and a mining
license for the Al Hadeetha Copper Gold project in Oman. Later he contributed
to the formulation of AHRL’s mining project development strategy and further
exploration plans in Oman.
In July 2021, Mr. Sthapak was appointed as Managing Director with the
responsibility of directing the Company to become a major miner and producer
of copper concentrate in Oman, and to expand its shareholder’s value to new
levels.
Prior to joining the Company, Mr. Sthapak’s career spanned 10 years with ACC/
ACC-CRA Ltd as exploration geologist and project manager and 10 years with Rio
Tinto (Australasia) Exploration and Rio Tinto Diamond, where he was awarded a
Rio Tinto Discovery Award in 2009. He has worked on world-class deposits and
mines in Australia, gold and diamond mines on four continents. Mr. Sthapak is an
active member of Aus IMM.
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28
Alara Resources Annual Report 2021
Board and Management
Vikas Jain MBA
Non-Executive Director
Mr Jain holds an MBA obtained in the USA and has 20 years’ experience in the
field of mineral exploration, mining, oil-field exploration and allied activities.
He is currently Managing Director and CEO of the Indian company Southwest
Pinnacle Exploration Limited (SWPE) founded by him in 2006 and listed on the
National Stock Exchange, India. Under his leadership and able guidance, SWPE
has continued to grow and at present is a premier exploration company in India.
SWPE began primarily as a mineral exploration company and progressively
added coal-bed methane exploration and production, aquifer mapping, HDD,
geophysical logging, transportation and other geological activities into its domain.
This year SWPE has also ventured into 3D seismic acquisition and processing for
oil field exploration services.
Mr Jain also has wide experience in the open-cut mining of various minerals
and allied activities through his earlier roles with other companies, as well as his
current involvement in other family run businesses and interests.
Sanjeev Kumar MBA (Finance & Marketing), IMT Ghaziabad, India; BE
(Metallurgy), VNIT Nagpur, India
Non-Executive Director
Mr Kumar has extensive Australian and international business experience, with a
specialisation in high-value asset finance lending.
He is currently a director of Tradexcel Global Pty Ltd, an Australian company which
he co-founded in 2017. His company helps ANZ businesses in expanding into
the overseas markets, assessing new markets, navigating entry barriers, providing
regulatory clearance services, business strategy & planning, local partnerships etc.
His previous roles include Vice President at India Factoring & Finance Solutions (a
subsidiary of Fimbank), Associate Vice President at Tata Capital Financial Services,
India and Manager, Infrastructure Division at ICICI Bank Limited.
Dinesh Aggarwal FCPA, CA, CMA, FTI, DipFS (Advanced)
Chief Financial Officer and Company Secretary
Mr Aggarwal has over 20 years’ experience in accounting, finance and business
management in top corporate positions, both in Australia and overseas, and is the
Founder and Managing Director of Fortuna Advisory Group. Fortuna is an award-
winning, multi-disciplinary practice with specialised divisions in Tax & Business
Advisory, Legal Services, Mortgage Broking and Financial Planning.
Mr Aggarwal advises clients in Australia and overseas on tax matters and business
services, and advises the Australian operations of several multi- nationals. He
also handles tax disputes with the ATO including appeals to the AAT. He is the
former Chairman of the Public Practice Committee of CPA Western Australia and
is currently a member of the National Public Practice Advisory Committee of CPA
Australia.
Named as one of Australia’s top three SME Tax Advisers in 2015 by the Tax Institute,
Mr Aggarwal has also won the prestigious CPA Australia 40 Under 40 Young
Business Leaders Award for 2012 and 2013, and has won numerous other awards.
29
Alara Resources Annual Report 2021
Board and Management
Oman JV Management Team
Avigyan Bera, BTech, PEngg (SAIMECHE)
Chief Executive Officer – AHRL
Mr. Bera has over 15 years of experience in handling EPC Projects in India and
overseas. He has been involved in projects in various countries across the globe
including India, Zambia, South Africa, Liberia, Namibia, Mongolia, Iran, UAE,
Bulgaria and Morocco etc.
He started his career in process engineering for mineral beneficiation plants and
complex chemical process plants, then migrated to project management and
business development activities in India, Africa and the Middle East regions.
Mr. Bera joined AHRL in June 2020. He brings a wealth of experience and
technical knowhow for executing owner-managed projects through his good
vendor contacts and key knowledge in process engineering, project execution
and overall management skills.
Venkatesan Ganesan, MBA, CPA, ACA, ACS, CBV
Corporate Financial Adviser
Mr. Ganesan joined Alara in September 2017 as an advisor. Mr Ganesan runs
Avalon Global, a boutique advisory services firm in Dubai. He has spent over 15
years in a Big-4 financial advisory practice and has advised a variety of industry
clients on transaction matters. He began his career at an upstream E&P business
before moving on to advisory services. Mr Ganesan is currently assisting Alara
with commercial and funding matters and strategies relating to its Omani joint
ventures.
Rajesh Bhayani, B.E. (Production), M.Tech. (Mech.)
Chief Procurement Officer
Mr Bhayani is a seasoned Procurement Professional with over 30 years of diverse
experience in global sourcing and supply chains. He has worked with leading
companies in the field of EPC, oil and gas and infrastructure, including Al Tasnim
Enterprises, a shareholder in AHRL. Other leading companies for which he has
worked include Reliance Industries (India) and Galfar (Oman).
He has over 12 years of experience of the GCC region. Mr Bhayani has also
interfaced with top-tier consultants (McKinsey, AT Kerney and Rolland Burger) to
optimize procurement functions and systems. He is a six-sigma black belt, ISO
internal auditor and an SAP-certified procurement consultant.
Fadi Zenaty, B.Sc. IMS and Business Administration
Operations Manager
Mr. Zenaty has over 16 years’ professional experience in mining and construction
projects in the Middle East. He brings a vast knowledge of corporate operations
and economic evaluation in building projects from inception.
He was a key person in obtaining the exploration and mining licenses for Alara’s
Al Khnaiguiyah zinc and copper project and other key mining projects. He has
a wide and solid knowledge of the governmental processes in the Middle East.
30
Alara Resources Annual Report 2021 Board and Management
He brings a strong track record of navigating governmental rules and technical
mining information requirements to ensure project success.
He has significant experience in day-to-day corporate operations related to
management, finance and engineering requirements for the projects that he leads.
His background also includes specialized roles in organization systems analysis
and IT development in improving the overall operations of the corporations which
he is engaged in.
Rexin Kamilas, BACS, M.Com
Finance and Administrative Manager
Mr. Kamilas is a business administration officer with over 15 years’ administration
and accounts experience in Oman and India. He joined Alara in 2011 as an
administrative and accounting assistant. He has been involved in various business
operations related to administration, banking, insurance, finance, procurements
and logistics.
Mr. Kamilas has utilized his experiences and skills in improving the administrative
and finance systems in the organization and providing support to the team to
build a robust management system, resulting in a solid foundation for future
corporate developments.
Mr. Kamilas has a key role in the preparation of the consolidated financial reports
of Alara.
Nehal Hasan Warsi, BSc (Geology Honours); MSc (Applied Geology); PGD
(Hydrogeology) & Certificate (Disaster. Mngmt)
Geologist
Mr. Warsi is a geologist with over 15 years’ experience. He has been involved in
mineral exploration and mining, water well drilling and other scientific research
projects in India, the Middle East and Africa. Having worked both locally and
internationally, his expertise in mineral exploration and resource projects for
various metals, rocks and industrial minerals is invaluable to the Company.
Mr. Warsi was the senior project geologist at site in charge of the resource drilling
program for the company’s Khnaiguiyah zinc and copper project in Saudi Arabia
that led to the successful completion of a DFS. He has also worked as a geologist
on the Al Ajal and Al Wash-hi deposits in Oman with Pilatus Resources.
Lakshman R. Muthyam, B.Sc IT, A.U.
Company Secretary AHRL
Mr. Muthyam is an experienced administration and information technology
professional with over 7 years’ experience in India and Oman.
Mr. Muthyam joined AHRL in April 2019 and oversees AHRL corporate governance.
He also has a key role in developing and improving corporate information
management systems and infrastructure. He brings a wide range of administrative
support experience related to office management and IT support. Along with his
bachelor’s degree in science, he also has a certificate in contract law and justice
from Harvard University.
31
Alara Resources Annual Report 2021
Board and Management
Muath Al Habsi, BSc (Geosciences)
Assistant Geologist
Mr. Muath Al-Habsi is an Omani Geologist. He graduated from Sultan Qaboos
University in 2018 and joined Al-Hadeetha Resources in June of 2019. Since then,
he has been working on the Al Wash-hi Majaza Copper project in Oman. He was
the site geologist in the metallurgical drilling program and took an active part in
geological logging, geotechnical logging, taking magnetic susceptibility readings
and core sampling works. He has been coordinating with different government
agencies and continues to take part in the developmental activities of the project.
Rajesh N. Gandhi, B.com, Chartered Accountant (CA)
Finance Controller
Mr Gandhi has over 10 years of experience in finance and accounting in India. He
joined AHRL in March 2021 as finance controller. He has a key role in budgeting
control, finance, MIS, VAT of AHRL.
Previously, he worked for an MNC company in India engaged in mining,
processing and manufacturing of Bentonite minerals, bauxite and allied mineral
products. He has been involved in various business operations related to the
finance function, MIS reports, forex transactions, letters of credit, taxation matters,
financial statements, budget control, compliance with regulatory requirements
and general accounting.
Amjad Al Sharji, Dip (Civil Engg.), IOSH, NEBOSH
HSE Manager
Mr. Al Sharji is an experienced HSE Manager with over 5 years of experience in
various sectors in Oman. He joined AHRL in October 2021. Prior to this, he worked
as a consultant with MMC and dealt with a number of electricity companies such
as OETC and Mazoon.
He holds a set of professional HSE training certificates. He has experience
in electrical safety, stations, transmission lines, electrical transfers, hilly areas,
construction, and food safety. He worked to reduce the incidence of accidents,
risks and environmental damage and participated in developing safety standards,
raising awareness of the importance of health and safety.
[The remainder of this page is intentionally blank]
Mineral Licences
Mineral Licences
Oman
Oman
Al Hadeetha and Daris Copper-Gold Projects
Al Hadeetha and Daris Copper-Gold Projects
Alara has joint venture interests in five copper-gold deposits located within four Exploration Licences in
Oman, extending over 692km2. These deposits are also covered by five Mining Licence applications
Alara has joint venture interests in five copper-gold deposits located within four Exploration Licences in
pending grant, totalling approximately 9km2.
Oman, extending over 692km2. These deposits are also covered by five Mining Licence applications
pending grant, totalling approximately 9km2.
The Wash-hi and Mullaq8 prospects are located approximately 160km South-Southwest of Muscat, the
capital of Oman. The Al Ajal Prospect is located about 65 km Southwest of the Capital. The Daris
The Wash-hi and Mullaq8 prospects are located approximately 160km South-Southwest of Muscat, the
Copper-Gold Project9 is located approximately 150km West of Muscat. These projects/prospects are
capital of Oman. The Al Ajal Prospect is located about 65 km Southwest of the Capital. The Daris
all located on, or very close to, high-quality bitumen roads.
Copper-Gold Project9 is located approximately 150km West of Muscat. These projects/prospects are
all located on, or very close to, high-quality bitumen roads.
The current status of all licences/applications for this project is presented in the table below.
The current status of all licences/applications for this project is presented in the table below.
Mining Licence within EL
Exploration Licence
Licence Name
Alara JV
Licence
Area
Exploration Licence
Status Area
Mining Licence within EL
Application
Status
Status Area
Active
2.1km2
Active
Active
Active
Active
Active
2.1km2
1km2
1km2
1.5km2
1.5km2
Date
Application
Dec 2012
Date
Dec 2012
Jan 2013
Jan 2013
Jan 2013
Status
Granted
Granted
Pending
Pending
Pending
Jan 2013
Pending
Licence Name
Wash-hi Majaza
Wash-hi Majaza
Mullaq
Mullaq
Al Ajal
Al Ajal
Owner
Licence
Owner
AHRL
Interest
Alara JV
Interest
51%
AHRL
AHRL
AHRL
AHRL
AHRL
51%
70%
70%
70%
70%
Area
39km2
39km2
41km2 Oct
41km2 Oct
25km2
25km2
Grant
Date
Grant
Jan
Date
2008
Jan
2008
2009
Jan
2009
2008
Jan
2008
Expiry
Date
Expiry
Nov
Date
2016
Nov
Nov
2016
2016
Nov
Nov
2016
2016
Nov
2016
Mineral project licence details
Mineral project licence details
Cu % Cut off
Indicated Resource
Inferred Resource
Cu % Cut off
Tonnes
Indicated Resource
Copper
Gold (Au)
Tonnes(
Inferred Resource
Copper
Gold
(M)
Tonnes
(Cu) %
Copper
g/t
M)
Gold (Au)
Tonnes(
(M)
12.40
(Cu) %
0.89
g/t
0.22
M)
3.70
(Cu) %
Copper
(Cu) %
0.78
(Au) g/t
Gold
(Au) g/t
0.23
0.20
0.25
0.20
0.30
0.25
0.40
0.30
0.50
0.40
12.40
12.40
12.40
12.40
12.20
12.40
11.40
12.20
Copper Resources
11.40
0.50
Copper Resources
0.89
0.89
0.89
0.89
0.90
0.89
0.93
0.90
0.93
0.22
0.22
0.22
0.22
0.22
0.22
0.23
0.22
0.23
3.70
3.70
3.70
3.70
3.50
3.70
3.00
3.50
3.00
0.79
0.78
0.79
0.79
0.81
0.79
0.88
0.81
0.88
0.23
0.23
0.23
0.23
0.24
0.23
0.25
0.24
0.25
32
8 Refer Alara’s 8 December 2011 ASX Announcement: Project Acquisition – Al Ajal Wash-hi Mullaq Copper-Gold Project in Oman.
9 Refer Alara’s 30 August 2010 ASX Announcement; Project Acquisition – Daris Copper Project in Oman.
8 Refer Alara’s 8 December 2011 ASX Announcement: Project Acquisition – Al Ajal Wash-hi Mullaq Copper-Gold Project in Oman.
9 Refer Alara’s 30 August 2010 ASX Announcement; Project Acquisition – Daris Copper Project in Oman.
Alara Resources Annual Report 2021
Mineral Licenses
Mineral Licences
Mineral Licences
Mineral Licences
Oman
Oman
Al Hadeetha and Daris Copper-Gold Projects
Oman
Al Hadeetha and Daris Copper-Gold Projects
Alara has joint venture interests in five copper-gold deposits located within four Exploration
Al Hadeetha and Daris Copper-Gold Projects
Alara has joint venture interests in five copper-gold deposits located within four Exploration Licences in
Licences in Oman, extending over 692km2. These deposits are also covered by five Mining
Oman, extending over 692km2. These deposits are also covered by five Mining Licence applications
Alara has joint venture interests in five copper-gold deposits located within four Exploration Licences in
Licence applications pending grant, totalling approximately 9km2.
pending grant, totalling approximately 9km2.
Oman, extending over 692km2. These deposits are also covered by five Mining Licence applications
The Wash-hi and Mullaq8 prospects are located approximately 160km South-Southwest of Muscat,
pending grant, totalling approximately 9km2.
The Wash-hi and Mullaq8 prospects are located approximately 160km South-Southwest of Muscat, the
the capital of Oman. The Al Ajal Prospect is located about 65 km Southwest of the Capital. The
capital of Oman. The Al Ajal Prospect is located about 65 km Southwest of the Capital. The Daris
The Wash-hi and Mullaq8 prospects are located approximately 160km South-Southwest of Muscat, the
Copper-Gold Project9 is located approximately 150km West of Muscat. These projects/prospects are
Daris Copper-Gold Project9 is located approximately 150km West of Muscat. These projects/
capital of Oman. The Al Ajal Prospect is located about 65 km Southwest of the Capital. The Daris
all located on, or very close to, high-quality bitumen roads.
Copper-Gold Project9 is located approximately 150km West of Muscat. These projects/prospects are
prospects are all located on, or very close to, high-quality bitumen roads.
all located on, or very close to, high-quality bitumen roads.
The current status of all licences/applications for this project is presented in the table below.
The current status of all licences/applications for this project is presented in the table below.
The current status of all licences/applications for this project is presented in the table below.
Exploration Licence
Licence Name
Area
Application
Grant
Mining Licence within EL
Exploration Licence
Date
Date
Application
Grant
Area
39km2
Jan
Dec 2012
Date
Date
2008
39km2
Jan
Dec 2012
41km2 Oct
Jan 2013
2008
2009
41km2 Oct
25km2
Jan
2009
2008
25km2
Jan
2008
Expiry
Date
Expiry
Nov
Date
2016
Nov
Nov
2016
2016
Nov
Nov
2016
2016
Nov
2016
2.1km2
2.1km2
1km2
1km2
1.5km2
1.5km2
Alara JV
Interest
Alara JV
Interest
51%
Licence
Owner
Licence
Owner
AHRL
Wash-hi Majaza
Mullaq
Mining Licence within EL
Status Area
Active
Jan 2013
Jan 2013
Pending
Pending
Wash-hi Majaza
Granted
Pending
Status Area
Licence Name
Status
Granted
AHRL
AHRL
Mullaq
Al Ajal
AHRL
AHRL
Active
Active
Active
Active
Jan 2013
Pending
70%
70%
51%
70%
Status
Active
AHRL
70%
Al Ajal
Mineral project licence details
Mineral project licence details
Mineral project licence details
Cu % Cut off
Indicated Resource
Inferred Resource
Cu % Cut off
0.20
Tonnes
(M)
Tonnes
12.40
(M)
Copper
Indicated Resource
(Cu) %
Copper
(Cu) %
Gold (Au)
g/t
Gold (Au)
0.22
g/t
0.89
Tonnes(
M)
Tonnes(
M)
Copper
Inferred Resource
(Cu) %
Copper
0.78
(Cu) %
Gold
(Au) g/t
Gold
(Au) g/t
3.70
0.23
0.25
0.20
0.30
0.25
0.40
0.30
0.50
0.40
12.40
12.40
12.40
12.40
12.20
12.40
11.40
12.20
Copper Resources
11.40
Copper Resources
Copper Resources
0.50
0.89
0.89
0.89
0.89
0.90
0.89
0.93
0.90
0.93
0.22
0.22
0.22
0.22
0.22
0.22
0.23
0.22
0.23
3.70
3.70
3.70
3.70
3.50
3.70
3.00
3.50
3.00
0.79
0.78
0.79
0.79
0.81
0.79
0.88
0.81
0.88
0.23
0.23
0.23
0.23
0.24
0.23
0.25
0.24
0.25
8 Refer Alara’s 8 December 2011 ASX Announcement: Project Acquisition – Al Ajal Wash-hi Mullaq Copper-Gold Project in Oman.
9 Refer Alara’s 30 August 2010 ASX Announcement; Project Acquisition – Daris Copper Project in Oman.
8 Refer Alara’s 8 December 2011 ASX Announcement: Project Acquisition – Al Ajal Wash-hi Mullaq Copper-Gold Project in Oman.
9 Refer Alara’s 30 August 2010 ASX Announcement; Project Acquisition – Daris Copper Project in Oman.
33
8 Refer Alara’s 8 December 2011 ASX Announcement: Project Acquisition – Al Ajal Wash-hi Mullaq Copper-Gold Project in Oman.
9 Refer Alara’s 30 August 2010 ASX Announcement; Project Acquisition – Daris Copper Project in Oman.
Alara Resources Annual Report 2021
Mineral Licenses
Cut off
Au (g/t)
Cut off
Cut off
Au (g/t)
Cut off
Au (g/t)
Au (g/t)
0.05
Kt
Kt
Kt
Kt
Inferred Resource
Gold
(Au) g/t
Inferred Resource
Inferred Resource
Ounces
Inferred Resource
Ounces
Ounces
k/Oz
k/Oz
Ounces
k/Oz
k/Oz
Gold
Gold
(Au) g/t
Gold
(Au) g/t
(Au) g/t
440
0.40
5.66
260
410
420
270
350
310
200
220
0.15
0.10
0.40
5.40
5.63
5.02
0.50
0.40
0.40
5.27
0.50
0.35
0.20
4.34
0.60
0.60
4.24
0.25
0.45
0.50
4.98
0.30
440
440
440
420
420
420
410
410
410
350
350
350
310
310
310
270
270
270
260
260
260
220
220
220
200
200
200
150
150
150
0.40
0.40
0.40
0.40
0.40
0.40
0.40
0.40
0.40
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.50
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
0.60
5.66
0.05
5.66
0.05
5.66
0.05
5.40
0.10
5.40
0.10
5.40
0.10
5.27
0.15
5.27
0.15
5.27
0.15
5.63
0.20
5.63
0.20
5.63
0.20
0.25
4.98
4.98
0.25
4.98
0.25
4.34
0.30
4.34
0.30
4.34
0.30
5.02
0.35
5.02
0.35
5.02
0.35
4.24
0.40
4.24
0.40
4.24
0.40
3.86
0.45
3.86
0.45
150
3.86
0.45
0.50
2.89
2.89
0.50
Gossan hill mineralisation – Gold10
2.89
0.50
Notes
Gossan hill mineralisation – Gold10
Gossan hill mineralisation – Gold10
Gossan hill mineralisation – Gold10
1
Mineral Resources are not Mineral Reserves. There is no certainty that all or any part of
Notes
Notes
Notes
1 Mineral Resources are not Mineral Reserves. There is no certainty that all or any part of the Mineral
the Mineral Resources estimated will be converted into Mineral Reserves.
Notes
1 Mineral Resources are not Mineral Reserves. There is no certainty that all or any part of the Mineral
1 Mineral Resources are not Mineral Reserves. There is no certainty that all or any part of the Mineral
1 Mineral Resources are not Mineral Reserves. There is no certainty that all or any part of the Mineral
Mineral Resources reported in accordance with the JORC 2012.
2 Mineral Resources reported in accordance with the JORC 2012.
2 Mineral Resources reported in accordance with the JORC 2012.
The Cu-Au Resource is stated as having a 0.25% Cu cut-off grade. The gold resource in
The Cu-Au Resource is stated as having a 0.25% Cu cut-off grade. The gold resource in the Gossan hill
2 Mineral Resources reported in accordance with the JORC 2012.
The Cu-Au Resource is stated as having a 0.25% Cu cut-off grade. The gold resource in the Gossan hill
3
The Cu-Au Resource is stated as having a 0.25% Cu cut-off grade. The gold resource in the Gossan hill
3
(outside the main ore body) has a 0.25 g/t Au cut-off grade.
the Gossan hill (outside the main ore body) has a 0.25 g/t Au cut-off grade.
(outside the main ore body) has a 0.25 g/t Au cut-off grade.
The Cu-Au Resource is stated as having a 0.25% Cu cut-off grade. The gold resource in the Gossan hill
3
(outside the main ore body) has a 0.25 g/t Au cut-off grade.
1 ounce of Au = 31.1035 grams.
(outside the main ore body) has a 0.25 g/t Au cut-off grade.
1 ounce of Au = 31.1035 grams.
4
1 ounce of Au = 31.1035 grams.
1 ounce of Au = 31.1035 grams.
4
1 ounce of Au = 31.1035 grams.
4
2
2 Mineral Resources reported in accordance with the JORC 2012.
3
3
Resources estimated will be converted into Mineral Reserves.
Resources estimated will be converted into Mineral Reserves.
Resources estimated will be converted into Mineral Reserves.
Resources estimated will be converted into Mineral Reserves.
Gossan hill mineralisation – Gold10
0.60
0.50
2.89
3.86
0.60
4
4
0.89
3.71
0.79
16.1
Inferred
Gold
(Au)
g/t
0.22
Tonne
s
Mt
12.4
Resource
classification
Gold
Gold
(Au)
Gold
(Au)
g/t
(Au)
g/t
0.22
g/t
0.22
0.22
0.23
0.23
0.23
0.22
0.22
0.22
Tonne
Tonne
s
Tonne
s
Mt
s
Mt
Mt
12.4
12.4
12.4
3.71
3.71
3.71
16.1
16.1
16.1
Resource
Resource
classification
Resource
classification
classification
Indicated
Copper
Copper
Copper
(Cu)
(Cu)
Copper
(Cu)
%
%
(Cu)
%
%
0.89
Indicated
0.89
Indicated
0.89
Indicated
0.79
Inferred
0.79
Inferred
Grand total
0.79
Inferred
0.87
Grand total
0.87
Grand total
Wash-hi copper-gold resources summary @ 0.25% Cu cut-off11
Wash-hi copper-gold resources summary @ 0.25% Cu cut-off11
0.87
Grand total
Wash-hi copper-gold resources summary @ 0.25% Cu cut-off11
Wash-hi copper-gold resources summary @ 0.25% Cu cut-off11
Wash-hi copper-gold resources summary @ 0.25% Cu cut-off11
Indicated Resources were converted to a Probable Ore Reserve after the application of modifying
Indicated Resources were converted to a Probable Ore Reserve after the application of modifying
Indicated Resources were converted to a Probable Ore Reserve after the application of modifying
factors, including pit optimization, mine design and an economic evaluation12
Indicated Resources were converted to a Probable Ore Reserve after the application of modifying
factors, including pit optimization, mine design and an economic evaluation12
factors, including pit optimization, mine design and an economic evaluation12
factors, including pit optimization, mine design and an economic evaluation12
The Ore Reserve estimate (based on a 0.3% Cu cut-off), and in pit mineral inventory are shown in
The Ore Reserve estimate (based on a 0.3% Cu cut-off), and in pit mineral inventory are shown in
The Ore Reserve estimate (based on a 0.3% Cu cut-off), and in pit mineral inventory are shown in
The Ore Reserve estimate (based on a 0.3% Cu cut-off), and in pit mineral inventory are shown in
the tables below.
the tables below.
the tables below.
the tables below.
Classification
The Ore Reserve estimate (based on a 0.3% Cu cut-off), and in pit mineral inventory are shown in
the tables below.
Indicated Resources were converted to a Probable Ore Reserve after the application of modifying
factors, including pit optimization, mine design and an economic evaluation12
Ore reserve
0.22
0.23
0.87
Ore reserve
Ore reserve
Ore reserve
Tonnes Mt
Classification
Classification
Classification
Probable
Wash-hi ore reserve
Tonnes Mt
Tonnes Mt
Tonnes Mt
Copper (Cu)
%
Copper (Cu)
Copper (Cu)
%
Copper (Cu)
%
%
0.88
9.7
Gold (Au) g/t
Gold (Au) g/t
Gold (Au) g/t
Gold (Au) g/t
0.22
0.3
9.7
0.88
9.7
9.7
9.7
Tonnes Mt
0.22
0.22
0.22
0.88
0.88
0.88
Ore reserve
Inferred resource
Tonnes Mt
Tonnes Mt
Tonnes Mt
Copper (Cu)
%
Copper (Cu)
Copper (Cu)
%
Copper (Cu)
%
%
Gold (Au)
Gold (Au)
Gold (Au)
g/t
g/t
Gold (Au)
g/t
g/t
Probable
Probable
Probable
Wash-hi ore reserve
Wash-hi ore reserve
Wash-hi ore reserve
Wash-hi ore reserve
Classification
Classification
Classification
Classification
Ore reserve
9.7
9.7
Ore reserve
9.7
Ore reserve
Inferred resource
0.3
Inferred resource
0.3
Total
Inferred resource
0.3
Total
10.00
Total
10.00
Wash-hi mining inventory
Wash-hi mining inventory
Total
10.00
Wash-hi mining inventory
Wash-hi mining inventory
Wash-hi mining inventory
10 Refer Alara’s 19 September 2016 ASX Announcement.
11 Refer Alara’s 15 December 2016 ASX Announcement: Maiden JORC Ore Reserves – Al Hadeetha Copper-Gold Project
12 Details of the modifying factors supporting the Ore Reserve are contained in Appendix 1 (JORC Code, 2012 Edition
- Table 1) of the 15 December 2016 announcement.
10 Refer Alara’s 19 September 2016 ASX Announcement.
10 Refer Alara’s 19 September 2016 ASX Announcement.
11 Refer Alara’s 15 December 2016 ASX Announcement: Maiden JORC Ore Reserves – Al Hadeetha Copper-Gold Project
10 Refer Alara’s 19 September 2016 ASX Announcement.
11 Refer Alara’s 15 December 2016 ASX Announcement: Maiden JORC Ore Reserves – Al Hadeetha Copper-Gold Project
12 Details of the modifying factors supporting the Ore Reserve are contained in Appendix 1 (JORC Code, 2012 Edition - Table 1) of
11 Refer Alara’s 15 December 2016 ASX Announcement: Maiden JORC Ore Reserves – Al Hadeetha Copper-Gold Project
12 Details of the modifying factors supporting the Ore Reserve are contained in Appendix 1 (JORC Code, 2012 Edition - Table 1) of
12 Details of the modifying factors supporting the Ore Reserve are contained in Appendix 1 (JORC Code, 2012 Edition - Table 1) of
10 Refer Alara’s 19 September 2016 ASX Announcement.
11 Refer Alara’s 15 December 2016 ASX Announcement: Maiden JORC Ore Reserves – Al Hadeetha Copper-Gold Project
12 Details of the modifying factors supporting the Ore Reserve are contained in Appendix 1 (JORC Code, 2012 Edition - Table 1) of
the 15 December 2016 announcement.
0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.88
0.88
0.88
0.65
0.65
0.65
0.87
0.87
0.87
10.00
0.22
0.22
0.65
0.87
0.22
34
the 15 December 2016 announcement.
the 15 December 2016 announcement.
the 15 December 2016 announcement.
Alara Resources Annual Report 2021
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35
Alara Resources Annual Report 2021 Directors’ Report
The Directors present their report on Alara Resources Limited (Company, Alara or AUQ) and the entities it controlled at the end of or during the financial year
ended 30 June 2021 (the Consolidated Entity).
Review of Operations
Al Hadeetha Copper-Gold Project
(Alara – 51%: Al Hadeetha Investments LLC – 30%; Al Tasnim Infrastructure Services LLC 19%)
Copper Project Construction Commencement
Oman
Alara is developing the Al Wash-hi Majaza copper-gold project in the Sultanate of Oman (Project). Project construction is scheduled for completion in November
2022. When complete, the Project will produce copper concentrate through a 1 MPTA plant1. The Project is owned by Alara’s joint venture company Al Hadeetha
Resources LLC (AHRL) in which the Company holds a 51% interest. Project construction commenced after the reporting period and, at the date of this report,
had proceeded as specified below.
Mining accommodation camp
After receiving required construction approvals from the local municipality, after the reporting period the mine site camp construction contractor mobilised its
team and equipment at the Wash-hi mine site accommodation village site for surface levelling and digging foundation trenches.
The accommodation village is designed to house 325 personnel from the construction, mining and plant operation crews, and comprises a range of facilities
including dining, prayer and recreation halls. Further details of the village are available in the Company’s ASX announcement dated August 5, 2021.
Mining and processing infrastructure procurement
AHRL has an OMR 19m (USD 49.22m; AUD 65.56m) project finance facility from Sohar International Bank to fund Project construction. AHRL commenced
draw-down on the facility after the reporting period, with the purchase orders listed below placed in September 2021. Procurement contracts were awarded,
contractually committing a total capex of USD 17.8m (OMR 6.83m; AUD 23.71m) to date.
Equipment Item
Contractor
Ball mill, SAG mill, crusher
Rock breaker
Apron feeder
Pan feeders
Magnetic separators
Accommodation cabins
Accommodation camp construction
New cabins – dining, offices etc.
Fencing
Conveyors
Belt weigher and vibrating screens
Hydro cyclones
Conveyor safety switches
Construction of access road
Pressure filters
Regrinding mill
Electrical packages - transformers, panels,
motors, telecom
Definitive Feasibility Study (DFS)
CITIC
Metso-OT
L&T
Metso-OT
Electro Zavod
Al Tasnim
Al Naba Infrastructure
Al Rehwan
Al Naba Infrastructure
Al Tasnim
Schenck
Weir
Smart SAA
C & C
Matec
Metso Outotec
ABB
China
Finland
India
India
India
Oman
Oman
Oman
Oman
Oman
India
UAE
India
Oman
Italy
USA
India
The Project DFS financial modelling was revised earlier in the year2 to take account of a copper price rise since the prior revision in 2018. Revised DFS projected
returns, based on a range of copper price scenarios as at 29 March 2021, are set out in the table below. As a comparison, the LME spot copper price on 23
September 2021 is USD 9,251 per tonne:
Copper Price (USD/tonne)1
Revenue (USD m)
EBITDA (USD m)
Project NPV (USD m)
Project IRR
7,000
569
208
54
24%
7,500
604
241
71
29%
8,000
639
273
88
33%
8,500
674
306
104
36%
9,000
709
338
121
40%
9,500
743
370
137
43%
1 Alara’s ASX Announcements dated 1 April 2016 (Definitive Feasibility Study results initial announcement), 24 January 2017 (DFS update), 28 June 2018 (NPV update) and
29 March and 7 April 2021 (NPV updates) contain the information required by ASX Listing Rule 5.16 regarding the stated production target and the information required by
ASX Listing Rule 5.17 regarding forecast financial information. All material assumptions underpinning the production target and forecast financial information as announced
on those dates continue to apply and have not materially changed, except to the extent that a relevant assumption in an earlier announcement referred to above has been
updated by an assumption in a later announcement referred to.
2 See Alara’s ASX announcements dated 29 March and 7 April 2021.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Directors’ Report
Key Project parameters
Key Project parameters from the revised DFS are set out below:
Parameter
Total pre-production capex
Mining method
Project construction
First production
Final production
Processing rate
Average annual concentrate production
Total copper metal production
Total gold
Unit operating costs
Project Engineering and Construction
Fundamentals
USD 60m (including EPC, project management, STP & pipeline, power, road, and contingency)
Open-pit, 10.3 years
15 months
Q3 calendar 2022
2032
1 MTPA
35,000 (wmt)
79,297 (t)
21,825 (oz)
USD 31.2/t of processed material
Progesys, as Project Management Consultant (PMC), oversees and directs the engineering, procurement and construction for the Project. Debisikha Associates,
India (Debisikha) is engaged to provide various services to the Project, including:
• Front-end engineering design (FEED) and preparation of technical specifications for all bought out items
• Detailed engineering for plant and infrastructure facilities (excluding geo-technical studies)
• Preparation of technical bid documents for onsite construction work
• Expediting the vendor manufacturing process and delivery schedule
•
Inspection and co-ordination of any items to be sourced from India
Debisikha is an experienced consulting engineering company. Debisikha has worked on various EPC projects in India, Europe and the USA in the field of
mineral processing and base-metal mining. Debisikha is engaged under a fixed-price contract with a monthly payment schedule which allows for resource
loading throughout the project development schedule.
Road Connectivity
All required road permits have been obtained and road construction commencement is expected in October 2021.
Water Supply
1,200m³ of process water per day will be supplied by tankers, sourced from sewage water treatment plants at Mudhaibi and Nizwa. An 18,000m³ water storage
reservoir will be constructed on site. Potable water will be sourced from bores on site. Project water supply requirements have been reduced from the level
specified in the DFS by the adoption of a dry tailings system.
Power supply
The power supply will be sourced from two feeders from Omani electricity company MZEC, approximately 2 km from the project site. Negotiations are underway
to appoint a local authorised contractor to design, supply and construct overhead power lines and the primary substation at site.
COVID-19 Impact
Oman experienced a third wave of COVID-19 during Q2 calendar 2021. Internal and border movement restrictions were in place to curtail the spread of the
virus. Covid movement restrictions have eased since the end of the reporting period, with the Government moving to reliance on its vaccination campaign. All
Alara and AHRL team members are fully vaccinated and working in offices or on site.
Mining Contractor
Project JV vehicle Al Hadeetha Resources LLC (AHRL) entered a preliminary commercial agreement with Alara Resources LLC (ARL) for ARL to perform
mining services over ten years, at a cost of approximately USD 126m (AUD 167.83m). Of that amount, approximately USD 6m (AUD 7.99m) will be classified
as capital expenditure when incurred, with the remainder on revenue account.
Alara Resources LLC (ARL)
ARL has two drill rigs and associated accessories and is seeking mineral drilling contract work. In 2019, prior to the Covid outbreak, the Omani Public Authority
for Mining (PAM) released plans to award 110 new multi-commodity exploration and mining licences in the country.3 Mineral exploration activity in Oman was
negatively impacted by the pandemic. As the vaccinated percentage of the local population rises, activity in this sector is expected to ramp up. ARL is targeting
a number of drilling contracts which will become available over the coming months.
ARL’s first mining contract is with AHRL, as detailed above.
3
See for example http://www.tradearabia.com/news/IND_351573.html.
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Mineral Tenements
The current status of all mineral tenements and applications for the Al Hadeetha Project is presented in the table below.
Licence Name
Licence Owner
Alara JV
Interest
Exploration Licence
Mining Licence within EL
Area
Grant Date
Expiry Date
51%
39km2
Jan 2008
Nov 2016
Status
Active*
Area
3km2
Application Date
2013
Status
Active
51%
41km2
Oct 2009
Nov 2016
Active*
1km2
Jan 2013
Pending
51%
25km2
Jan 2008
Nov 2016
Active*
1.5km2
Jan 2013
Pending
Washihi Majaza ML
10003075.
Al Hadeetha
Resources LLC
Mullaq
Al Ajal
Al Hadeetha
Resources LLC
Al Hadeetha
Resources LLC
*Pursuant to Ministerial decree (38/2013) which declares that the exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining
licence, in which case the duration for the exploration licence extends until the date that a determination is made on the mining application.
Daris Copper-Gold Project
(Alara – 50% with option to increase to 70%: Al Tamman Trading Establishment LLC – 50%)
Oman
The Daris project comprises two high-grade copper deposits within the 587km² exploration licence, which includes two mining licence applications covering
4.5km². The project fits well with a “hub and spoke” model, which provides for processing of Daris ore at the Al Hadeetha copper concentration plant to be built
100km to the south.
The Daris East Mining Licence application, which covers an area that includes measured, indicated and inferred JORC copper resources4 was opposed by the
Ministry of Housing due to its proximity to recently allotted land. Review of a petition supporting the application lodged by Daris is underway at the Ministry of
Energy and Minerals.
The Daris 3A5 application for a Mining Licence is progressing well with the Government.
Awtad Copper-Gold Project
Oman
(Alara – right to subscribe for 10% initially with subsequent earn-in up to 70%; existing local shareholders hold the balance of the project)
The Awtad Project comprises an area of approximately 497 km² (Block 8) and is located immediately adjacent to the Block 7 (Daris Copper-Gold Project).
Alara has a right to an initial 10% interest (increasing to 50-70%+) in the concession owner, Awtad Copper LLC.
Exploration previously undertaken at this project includes:
•
86 line kilometres of airborne VTEM, 14 line kilometres of ground IP, 169 line kilometres of ground magnetics and 202 line kilometres of high-resolution
ground magnetics.
•
•
76 RAB drill holes totalling 1,747m and 11 core drill holes totalling 299m.
Drilling results (including over the Al Mansur Prospect) were low-grade in general and inconclusive.
Previous exploration identified anomalies worthy of further exploration. The fact that prospective geological formations within the licence area are under cover
of alluvial and aeolian deposits enhances the chances of further copper mineralisation.
Detailed work plans were submitted to the Ministry of Energy and Minerals for renewal of the exploration licence, which remains pending.
Mineral Tenements
The current status of all mineral tenements and applications for the Daris and Awtad Projects is presented in the table below.
Block Name
Licence Owner
Alara JV
Interest
Block 7
Block 8
Al Tamman Trading
and Est. LLC
50% (earn in
to 70%)
Awtad Resources
LLC
10% (earn in
to 70%)
Exploration Licence
Mining Licences within EL
Area
Grant Date Expiry Date
587km2
Nov 2009
Feb 2016
Status
Active*
Area
Application Date
Status
Daris 3A5 &
East
Resubmitted
2018
Pending
597km2
Nov 2009
Oct 2013
Renewal pending
NA
NA
NA
*Pursuant to Ministerial decree (38/2013) which declares that the exploration licence ends when its duration ends, unless the licensee has submitted an application for a mining
licence, in which case the duration for the exploration licence extends until the date that a determination is made on the mining application.
Khnaiguiyah Zinc-Copper Project
Saudi Arabia
The Khnaiguiyah Project is a proposed open-cut, zinc-copper mine and associated infrastructure. Alara has invested over USD 30m in this Project, including
over USD 23m (AUD 30.64m) to produce a bankable feasibility study (BFS).
The project reached an impasse after the former Khnaiguiyah mining licence holder, United Arabian Mining Company LLC, asked the Saudi Mines Minister to
halt transfer of the licence to the Alara JV company, contrary to the requirements of the JV agreement.
The mining licence was cancelled in 2015, due to the impasse between project participants.
4
The Company has disclosed full details of these resources on various occasions in a form which complies with the JORC Code, 2012 Ed. See, for example, the Company’s
2019 Annual Report to shareholders, pp 14-45 and 72-73.
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
An auction for the re-issue of the mining/exploration licence is expected to be held in Q2 2022. Alara funded, and is now in the unique position of holding, the
only BFS for this project. Alara is working with various parties in both the private and public sectors to prepare for the reissue of the licence. Alara’s possession
of the BFS puts it in a good position to participate in the future development of this project.
Directors’ Report
Corporate Information
Alara is a company limited by shares incorporated in Western Australia.
Cash Position
The Company’s cash position at 30 June 2021 was AUD 4.24m (30 June 2020: AUD 7.67m).
Finance
Other than the project finance facility referred to above, and an ARL drill-rig finance facility of OMR 180,599 (AUD 623,156) neither the Company nor any of its
related entities were party to any material financing arrangements during the Reporting Period.
Principal Activities
The principal activities of entities within the Consolidated Entity during the year were the exploration, evaluation and development of mineral exploration licenses
in Oman.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs of the Consolidated Entity, except as otherwise disclosed in this Directors’ Report or the Financial
Statements and the notes thereto.
Dividends
No dividends were paid or declared during the financial year.
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ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Operating Results
Consolidated
Total revenue
Total expenses
Profit/Loss before tax
Income tax benefit
Profit/Loss after tax
Profit/(Loss) per Share
2021
$
11,779
(1,682,250)
(1,670,471)
-
(1,670,471)
2020
$
637,548
(652,514)
(14,966)
-
(14,966)
Consolidated
Basic profit/(loss) per share (cents)
Diluted profit/(loss) per share (cents)
Weighted average number of ordinary shares outstanding during the year used in the
calculation of basic loss per share
Weighted average number of ordinary shares outstanding during the year used in the
calculation of Diluted loss per share
2021
(0.24)
(0.24)
667,645,289
667,645,289
2020
0.04
0.04
629,835,362
629,835,362
Cash Flows
Consolidated
Net cash flow used in operating activities
Net cash flow from investing activities
Net cash flow provided by financing activities
Net change in cash held
Effect of exchange rates on cash
Cash held at year end
Financial Position
Outlined below is the Consolidated Entity’s Financial Position and prior-year comparison.
Consolidated Entity
Cash
Trade and other receivables
Exploration & evaluation
Mine properties & development assets
Investment in associate
Term deposits
Other current assets
Non-current assets
Total assets
Trade and other payables
Unearned Income
Financial liabilities
Provisions
Total liabilities
Net assets
Issued capital
Reserves
Accumulated losses
Parent interest
Non-controlling interest
Total equity
2021
$
(1,654,849)
(3,165,710)
1,893,538
(2,927,021)
(505,780)
4,241,815
2021
$
4,241,815
38,566
4,910,968
12,383,033
139,350
1,030,168
23,869
553,469
23,321,238
988,405
8,079
723,128
93,838
1,813,450
2020
$
(2,116,177)
2,272,954
(188,662)
(31,885)
144,094
7,674,616
2020
$
7,674,616
30,633
5,161,876
9,926,151
192,827
8,661
377,578
462,152
23,834,494
267,734
8,817
684,411
21,755
982,717
21,507,788
22,851,777
68,233,860
9,495,609
(56,062,753)
21,666,716
(158,928)
66,340,323
11,062,664
(54,440,424)
22,962,563
(110,786)
21,507,788
22,851,777
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Issued Capital
Fully paid, ordinary shares, listed options and unlisted options on issue in the Company as at the date of this report are as follows:
Fully paid shares quoted on ASX
Listed options
Unlisted options
Total
Totals
Unlisted Options
705,429,239
705,429,239
-
-
9,000,000
9,000,000 714,429,239
During the financial year, the following unlisted options were issued:
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is exerciseable over one fully paid, ordinary, share in the
Company and has an exercise price of AUD 0.03 per share. The options expire on 1 July 2022.
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020. Each option is exerciseable over one fully paid, ordinary,
share in the Company and has an exercise price of AUD 0.03 per share. The options vest upon the Company achieving the first production of saleable copper
concentrate, provided this occurs by 31 March 2022. If the Company:
• does not achieve the first production of saleable copper concentrate, as determined by the Board, acting reasonably, by that date the options will not
become exerciseable; or
• achieves the first production of saleable copper concentrate by that date but the Managing Director does not exercise any given option within one (1) year
after the date on which that first production occurs, any options which have not been exercised will lapse at the end of the last day of that year.
Likely Developments and Expected Results
During the 2021-22 financial year the Consolidated Entity intends to progress the construction of mining and copper processing infrastructure for the Al Wash-
hi Majaza Project, with completion expected in November 2022. Upon Project completion, the Company will commence the production and sale of copper and
gold from the mine. Financial projections for the Al Hadeetha Project are set out on page 3 of this Report.
The Company intends to continue exploration, evaluation and development activities in relation to its other mineral exploration licences in Oman in the 2021-22
financial year. The likely results of these activities will depend on a range of geological, technical and economic factors.
The Company will continue to pursue opportunities to realise value from the Khnaiguiyah Project BFS.
Environmental Regulation and Performance
The Consolidated Entity holds licences and complies with environmental laws and regulations issued by the Governments of the countries in which it operates.
These licences, laws and regulations regulate discharges to the air, surface water and groundwater associated with exploration and mining operations, as well
as storage and use of hazardous materials. There have been no significant breaches of the Consolidated Entity’s licence conditions or of environmental laws
or regulations.
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ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Board of Directors
The names and details of the Directors of the Company in office during the financial year and until the date of this report are as follows.
Stephen Gethin
Non-Executive Chairman
Appointed Non-Executive Chairman on 2 July 2020
Barrister and Solicitor of the Supreme Court of Western Australia and of the High Court of Australia
Appointed Non-Executive Director on 28 June 2020
Previously Non-Executive Director (11 January to 22 November 2019)
Experience
Stephen Gethin is a highly regarded Director and Company Secretary with over 20 years’ experience in the provision of corporate legal advice and
documentation and over 14 years’ experience in the provision of ASX-listed secretarial services in a range of industries, including resources, technology and
investments. Before founding a private legal practice in 2013, was General Counsel and Company Secretary of Strike Resources Limited (ASX:SRK) and,
earlier, served as General Counsel and Company Secretary at ERG Limited (ASX:ERG). Mr Gethin also advises a number of other ASX-listed and large private
companies.
Special Responsibilities
Chairman of the Remuneration and Nomination Committee and Member of the Audit Committee.
Other Directorships in Listed Companies in Past 3 Years
Nil
Atmavireshwar Sthapak
Bachelor of Applied Science and Master of Technology, Applied Geology; MAusIMM
Managing Director
Appointed Managing Director on 28 July 2020
Appointed Executive Director on 3 February 2016
Previously Non-Executive Director (22 September 2015 to 3 February 2016)
Experience
Atmavireshwar Sthapak is a geologist specialising in mineral resource exploration and evaluation studies. He joined Alara in 2011, making valuable contributions
to the Company as an Exploration Manager and a Study Manager based in Muscat; including the discovery of large VMS copper mineralisation extensions at
the Washihi project in Oman and the resource upgrade at the Washihi and Daris copper-gold deposits. He played key roles in the Feasibility Study and the
grant of the mining license for the Washihi project. Prior to Alara, his career spanned 10 years with ACC / ACC-CRA Ltd and 10 years with Rio Tinto (Australasia)
where he was awarded a Rio Tinto Discovery Award in 2009. He has worked on exploration on world-class deposits; including Mt. Isa type copper deposits in
Australia, and copper, gold and diamond mines on four continents.
Other Directorships in Listed Companies in Past 3 Years
Nil
Non-Executive Director
Appointed 6 April 2016
Vikas Jain
MBA
Experience
Vikas Jain holds an MBA from the USA and has vast experience of over 20 years in the fields of mineral exploration, mining, oil-field exploration and allied
activities. He is currently Managing Director and CEO of the Indian Company South-West Pinnacle Exploration Limited (SWPE), which he founded in 2006 and
listed on the National Stock Exchange of India. Under his leadership and able guidance, SWPE has enjoyed rapid growth and is a premier exploration company
in India. Since its beginnings as primarily a mineral exploration company, SWPE has progressively added coal bed methane (CBM) exploration and production,
aquifer mapping, HDD, geophysical logging, transportation and other geological activities to its range of operations. SWPE also provides 2D and 3D seismic
acquisition and processing for oil-field exploration. SWPE was awarded a contract for the first integrated 2D seismic acquisition, processing and exploration
including drilling in coal block in India. Mr Jain also has extensive experience in open-cut mining of various minerals and allied activities through his earlier
involvement with other companies.
Special Responsibilities
Chairman of the Audit Committee and Member of the Remuneration and Nomination Committee.
Other Directorships in Listed Companies in Past 3 Years
South-West Pinnacle Exploration Limited, listed on the National Stock Exchange, India.
Sanjeev Kumar
Non-Executive Director
MBA (Finance & Marketing), IMT Ghaziabad, India; BE (Metallurgy), VNIT Nagpur, India Appointed 23 October 2020
Experience
Mr Kumar has extensive Australian and international business experience, with a specialisation in high-value asset finance lending.
He is currently a director of Tradexcel Global Pty Ltd, an Australian company which he co-founded in 2017. Tradexcel assists Australian and NZ businesses to
assess and expand into overseas markets; navigating entry barriers, providing regulatory clearance services, business strategy and planning and local
partnerships. His previous roles include Vice President at India Factoring and Finance Solutions (a subsidiary of Fimbank), Associate Vice President at Tata
Capital Financial Services, India, and Manager, Infrastructure Division at ICICI Bank Limited.
Other Directorships in Listed Companies in Past 3 Years
Nil
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
James D. Phipps
BA (Philosophy), JD (Law)
Directors’ Report
Non-Executive Director
Chairman 31 July 2015 to 1 July 2020
Director 1 November 2014 to 4 September 2020
Experience
James D. Phipps is a strategic advisor. Mr Phipps practiced international commercial law for 10 years and then moved to business, where his work involves
leadership, entrepreneurship governance, and strategic consulting. He has served on the boards of numerous publicly traded and closely held companies
across several industries including mining and exploration (copper, zinc, gold and silver), heavy industry (paper), consumer goods (paper, aluminium foil),
infrastructure development and O&M (drinking water, waste water, storm water, etc.), technology (gaming and social media), sports entertainment (English
football, gaming, fantasy football, sports talk radio), fitness (establishment of the largest MMA gym in the Middle East) and film making. Mr Phipps has over 30
years’ experience in the Middle East. He holds a Bachelor of Arts in Philosophy (1992) and Juris Doctorate (1996) from Brigham Young University.
Other Directorships in Listed Companies in Past 3 Years
Nil.
Justin J. Richard
MBA, LLB, Grad Dip ACG, FGIA, FCIS, FAusIMM
Experience
Justin Richard is a corporate lawyer and accomplished business manager. He joined Alara in 2011, and for the eight years worked in the Middle East as CEO
of Alara’s international joint venture companies Al Hadeetha Resources, Daris Resources and Alara Resources.
During Mr Richard’s tenure as Managing Director, Alara completed a feasibility study, announced a maiden ore reserve statement and secured a mining licence
for the Al Wash-hi Majaza Copper-Gold Project in Oman. He established key business relationships for the Company as it moved to expand its business beyond
mineral exploration to mine development and production of copper concentrate. Prior to joining Alara, Mr Richard worked with UGL Limited (Resources Division),
Bateman Engineering and Minter Ellison Lawyers (Insurance and Corporate Risk, and Construction, Engineering and Infrastructure). He has an MBA from
London Business School, a law degree from the University of Western Australia and is a Fellow of the Governance Institute of Australia and the Australasian
Institute of Mining and Metallurgy.
Other Directorships in Listed Companies in Past 3 Years
Nil
Managing Director
16 June 2015 to 27 July 2020
Avi Sthapak
Non-Executive Director
11 January 2019 to 1 December 2020
Experience
Avi Sthapak has a degree in Computer Science Engineering with a focus on infrastructure management. He also holds a Master of Business Administration
from Curtin University, Western Australia with a focus on strategy development, accounting, global mobility, talent acquisition, marketing, leadership and finance.
He has worked as a Business Development Consultant and Management Consultant. As a consultant for Curtin University’s Live-in Learning he created a
feasibility plan for a solar project.
Other Directorships in Listed Companies in Past 3 Years
Nil
Retired Directors
Mr Justin J. Richard resigned as Managing Director and as a Director on 27 July 2020.
Mr James D. Phipps resigned as a Non-Executive Director on 4 September 2020.
Mr Avi Sthapak resigned as a Non-Executive Director on 1 December 2020.
The other Directors all held office throughout the financial year and up to the date of this report.
Company Secretary
Company Secretary
Dinesh Aggarwal
Dinesh Aggarwal FCPA, CA, CMA, FTI, DFP
Experience
Dinesh is a Chartered Accountant and CPA with over 20 years’ experience in accounting and tax, finance, and business management in senior corporate
positions, both in Australia and overseas. He is the Founder and Managing Director of Fortuna Advisory Group, an expanding, multi-disciplinary professional
services group in Perth, Western Australia. He advises listed companies, Australian subsidiaries of major international groups, a large variety of SMEs and
high net worth individuals.
Mr Aggarwal provides virtual CFO services to numerous corporate groups, self-managed superannuation advice and complex business structuring. He
represents taxpayers in objections and AAT appeals against the ATO. Mr Aggarwal successfully represented a client in the landmark case Wong v.
Commissioner of Taxation (AATA2011/3450) concerning the distinction between a share trader and an investor. A highly acknowledged professional, Dinesh
has been Chairman of the CPA (WA) Public Practice Committee and a member of CPA Australia Public Practice Advisory Committee.
Among his various awards, he received the CPA 40 Under 40 Young Business Leaders’ Award in 2012 and 2013 and was a finalist in the Tax Institute of
Australia SME Tax Adviser of the Year Award 2015. Mr Aggarwal also serves on the board of various companies and not for profit bodies.
Other Directorships in Listed Companies in Past 3 Years
Appointed 2 July 2020
Nil
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Stephen Gethin
Barrister and Solicitor of the Supreme Court of Western Australia and of the High Court of Australia
Mr Gethin’s qualifications and experience are stated in relation to his role as Chairman, above.
Directors’ Interests in Shares and Options
Company Secretary
Appointed 1 May 2018 resigned 2 July 2020
As at the date of this Report, the relevant interests of the Directors in shares and options held in the Company are:
Director
Stephen Gethin
Atmavireshwar Sthapak
Vikas Jain
Sanjeev Kumar
James Phipps5
Justin Richard6
Avi Sthapak7
Directors’ Meetings
Fully Paid Ordinary Shares
-
3,862,051
37,745,930
-
-
1,500,000
-
Options
4,000,000
5,000,000
-
-
-
-
-
The number of Directors’ meetings (including Board committee meetings) held during the year and the number of meetings attended by each Director were as
follows:
Name of Director
Appointment / Resignation
Board
Audit Committee
Stephen Gethin
Atmavireshwar Sthapak
Vikas Jain
Sanjeev Kumar
James D. Phipps
Justin J. Richard
Avi Sthapak
Appointed 28 June 2020
Appointed 22 September 2015
Appointed 6 April 2016
Appointed 23 October 2020
Resigned 4 September 2020
Resigned 27 July 2020
Resigned 1 December 2020
Audit Committee
Meetings
Attended
13
13
13
9
2
1
1
Maximum
Possible
13
13
13
9
2
2
5
Meetings
Attended
2
2
2
-
-
-
-
Maximum
Possible
2
2
2
-
-
-
-
Remuneration and
Nomination Committee
Maximum
Meetings
Possible
Attended
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The Audit Committee currently comprises Non-Executive Directors Vikas Jain (Committee Chairman) (appointed 6 April 2016), Non-Executive Company
Chairman Stephen Gethin (appointed 2 July 2020) and Managing Director Atmavireshwar Sthapak (appointed 28 September 2016).
The Audit Committee has a formal charter to prescribe its objectives, duties and responsibilities, access and authority, composition, membership requirements
of the Committee and other administrative matters. Its function includes reviewing and approving the audited annual and reviewed half-yearly financial reports,
ensuring a risk management framework is in place, reviewing and monitoring compliance issues, reviewing reports from management and matters related to
the external auditor. The Audit Committee Charter may be viewed and downloaded from the Company’s website.
[The remainder of this page is intentionally blank]
5 Resigned 4 September 2020.
6 Resigned 27 July 2020.
7 Resigned 1 December 2020.
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Directors’ Report
Remuneration Report
The information in this Remuneration Report has been audited. This Remuneration Report details the nature and amount of remuneration for each Director and
Company Executive (being a Company Secretary or senior manager with authority and responsibility for planning, directing and controlling the major activities
of the Company or Consolidated entity, directly or indirectly) (Key Management Personnel or KMP) of the Consolidated Entity in respect of the financial year
ended 30 June 2021.
Key Management Personnel
Directors
Stephen Gethin
Atmavireshwar Sthapak
Vikas Jain
Sanjeev Kumar
James Phipps
Justin Richard
Avi Sthapak
Executives
Dinesh Aggarwal
Stephen Gethin
Avigyan Bera
Chairman (Appointed 2 July 2020. Non-Executive Director until 2 July 2020)
Managing Director (Appointed 28 July 2020. Executive Director until 28 July 2020)
Non-Executive Director
Non-Executive Director (Appointed 23 October 2020)
Non-Executive Director (Resigned 4 September 2020)
Managing Director (Resigned 27 July 2020)
Non-Executive Director (Resigned 1 December 2020)
Company Secretary (Appointed 2 July 2020)
Company Secretary (Resigned 2 July 2020)
CEO, AHRL (Appointed 15 October 2020)
Remuneration and Nomination Committee
The Remuneration and Nomination Committee currently comprises Non-Executive Chairman, Stephen Gethin (Committee Chairman, appointed 2 July 2020),
Non-Executive Director, Vikas Jain (appointed 6 April 2016) and Managing Director Atmavireshwar Sthapak appointed 28 June 2016).
The Remuneration and Nomination Committee has a formal charter to prescribe its purpose, key responsibilities, composition, membership requirements,
powers and other administrative matters. The Committee has a remuneration function (with key responsibilities to make recommendations to the Board on
policy governing the remuneration benefits of the Managing Director and Executive Directors, including equity-based remuneration and assist the Managing
Director to determine the remuneration benefits of senior management and advise on those determinations) and a nomination function (with key responsibilities
to make recommendations to the Board as to various Board matters including the necessary and desirable qualifications, experience and competencies of
Directors and the extent to which these are reflected in the Board, the appointment of the Chairman and Managing Director, the development and review of
Board succession plans and addressing Board diversity). The Remuneration and Nomination Committee Charter may be viewed and downloaded from the
Company’s website.
Remuneration Policy
The Board (with guidance from the Remuneration and Nomination Committee) determines the remuneration structure of all Key Management Personnel having
regard to the Consolidated Entity’s strategic objectives, scale and scope of operations and other relevant factors, including experience and qualifications, length
of service, market practice, the duties and accountability of Key Management Personnel and the objective of maintaining a balanced Board which has appropriate
expertise and experience, at a reasonable cost to the Company. The Board recognises that the performance of the Company depends upon the quality of its
Directors and Executives. To achieve its financial and operating objectives, the Company must attract, motivate and retain highly skilled Directors and
Executives.
The Company embodies the following principles in its remuneration framework:
• Provide competitive rewards to attract and retain high calibre Executives.
• Structure remuneration at a level that reflects the Executive’s duties and accountabilities and is competitive.
Remuneration Structure
The structure of Non-Executive Director and Executive Director remuneration is separate and distinct.
Director Remuneration
Objective
The Board seeks to set aggregate remuneration for Directors at a level which provides the Company with the ability to attract and retain Board members of the
highest calibre, at a cost acceptable to shareholders.
Structure
Each Non-Executive Director receives a fee for serving as a Director of the Company and on relevant Board Committees, if applicable. The level of each Non-
Executive Director’s fee is commensurate with the workload and responsibilities undertaken. According to the Company’s Constitution and the ASX Listing
Rules, the aggregate remuneration of Non-Executive Directors must not exceed an amount determined by the Shareholders at a General Meeting (Non-
Executive Fee Pool). An amount up to the Non-Executive Fee Pool is then allocated among the Non-Executive Directors as Directors’ fees, as determined by
the Board on the recommendation of the Remuneration and Nomination Committee (Remuneration Committee). The Non-Executive Fee Pool was last set by
Shareholders at the 2011 Annual General Meeting at AUD 275,000 per annum. Shareholders determined the amount of the Non-Executive Fee Pool having
regard to the recommendation of the Board. That recommendation was, in turn, based on the recommendation of the Remuneration Committee, made based
on a consideration of fees paid to non-executive directors of comparable companies.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Directors’ Report
Managing Director and Senior Executive Remuneration
Objective
The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company and
so as to ensure total remuneration is competitive by market standards. Formal employment contracts are entered into with the Managing Director and senior
executives. Details of these contracts are outlined later in this report.
Consequences of Company Performance on Shareholder Wealth
In considering the Company’s performance and creation of value for shareholders, the Board had regard to the following information in relation to the current
financial year and the previous four years:
Total Equity (AUD m)
Basic earnings/(loss) per share – (AUD)
2021
2020
2019
2018
2017
21.5
(0.24)
22.9
0.04
21.8
(0.07)
10.4
(0.11)
9.5
(0.04)
Net Profit/(Loss) attributable to members (AUD)
(1,622,329)
273,985
(454,577)
(691,512)
(258,526)
Market Capitalisation (AUD m)
9.9
8.3
15.1
18.2
8.4
Fixed Remuneration
During the financial year, the Company’s Key Management Personnel were paid a fixed base salary/fee per annum plus applicable employer superannuation
contributions, as detailed below (see the table Details of Remuneration Provided to Key Management Personnel).
Performance Related Benefits/Variable Remuneration
Performance-related benefits/variable remuneration payable to Key Management Personnel are disclosed in the table Details of Remuneration Provided to Key
Management Personnel. Managing Director Atmavireshwar Sthapak (appointed 28 July 2020) was paid allowances including housing and vehicle allowances
and medical insurance. Former Managing Director Justin J. Richard (resigned 27 July 2020) was paid expatriate allowances, including a housing allowance, a
school-fee allowance, travel expenses and medical insurance costs.
Special Exertions and Reimbursements
Pursuant to the Company’s Constitution, each:
• Non-Executive Director is entitled to receive payment for the performance of extra services, or the undertaking of special exertions, at the request of the
Board for Company purposes.
• Each Director is entitled to reimbursement of all reasonable expenses (including traveling and accommodation) which they incur for the purpose of attending
Board and Committee meetings, the Company’s business, or in performing their Director’s duties.
Post-Employment Benefits
Other than employer contributions to nominated complying superannuation funds (where applicable) and entitlements to accrued unused annual and long
service leave (where applicable), the Company does not provide retirement benefits to Key Management Personnel.
The Company notes that Shareholders’ approval is required where a Company proposes to make a “termination payment” (for example, a payment in lieu of
notice, a payment for a post-employment restraint and payments made as a result of the automatic or accelerated vesting of share-based payments) in excess
of one year’s “base salary” (defined as the average base salary over the previous 3 years) to a Director or any person who holds a managerial or executive
office.
Long-Term Benefits
Other than early termination benefits disclosed in “Employment Contracts” below, Key Management Personnel have no right to termination payments, except
for payment of accrued unused annual and long service and/or end of service leave (where applicable).
[The remainder of this page is intentionally blank]
ALARA RESOURCES LIMITED
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2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Details of Remuneration Provided to Key Management Personnel.
Directors’ Report
Short-term benefits
Cash payments
Post-employment
benefits
Other long-
term benefits
Equity
based
benefits
Perfor-
mance
based Fixed
Name
At risk
STI Options
Salary/
fees
Allo-
wances(i)
Cash
bonus
Non-
cash(ii) Other(iii)
Super-
annuation
Termi-
nation
2021
%
%
%
%
$
$
$
$
$
Executive Directors
Justin Richard(iv)
Atmavireshwar
Sthapak
Non-Executive Directors
James D. Phipps
Vikas Jain
Stephen Gethin
Avi Sthapak
Sanjeev Kumar
-
-
-
-
-
-
-
100%
100%
100%
100%
100%
100%
100%
Company Secretary
Dinesh Aggarwal (v)
-
100%
Chief Executive Officer – AHRL
-
-
-
-
-
-
-
-
- 421,089
10,284
- 255,283
25,372
- 157,087
-
-
-
-
-
50,000
55,000
9,132
17,304
39,105
-
-
-
-
-
-
Avigyan Bera
-
100%
-
-
54,029
14,887
Notes:
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
868
1,446
-
-
$
-
-
-
-
-
-
-
-
-
Other Options
Total
$
$
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
431,373
280,655
157,087
50,000
55,000
10,000
18,750
39,105
68,916
(i) Allowances are based on the executive employment agreement and may include expat
(iii) Other short-term benefits consist of exchange gain/(loss) due to foreign
allowance, company car allowance, rent allowance and security bond and school-fee allowance
received from subsidiaries and related joint venture entities.
currency translation from Oman Riyal to Australia Dollars on Mr Richard’s
and Mr Bera’s salaries.
(ii) Non-cash benefits include net leave and/or end of service gratuity accrued or paid pursuant to
relevant labour laws.
(iv) The Amount paid to Mr Richard includes termination benefits of AUD 391,328.
(v) Appointed 2 July 2020. Remuneration, in his capacity as Company Secretary, paid to Fortuna
Advisory Group.
Perfor-
mance
based Fixed
Name
Short-term benefits
Cash payments
Post-employment
benefits
Other long-
term benefits
Equity
based
benefits
At risk
STI Options
Salary/
fees
Allo-
wances(i)
Cash
bonus
Non-
cash(ii) Other(iii)
Super-
annuation
Termi-
nation
Other Options
Total
2020
%
%
%
%
$
$
$
$
$
$
$
$
$
$
Executive Directors
Justin Richard
Atmavireshwar Sthapak
Non-Executive Directors
James D.Phipps
Vikas Jain
Stephen Gethin
Avi Sthapak
Company Secretary
Stephen Gethin(iv)
-
-
-
-
-
-
100%
100%
100%
100%
-
-
-
100%
-
-
-
-
-
-
-
Chief Executive Officer – AHRL
Avigyan Bera
-
100%
-
-
6,871
Notes:
- 381,045
149,943
- 253,404
29,878
- 152,519
-
-
-
-
50,000
-
-
39,105
-
-
-
-
-
-
-
-
12,097
1,433
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37,987
21,118
-
-
-
-
-
-
-
-
-
-
-
-
-
-
581,072
305,833
152,519
50,000
-
-
39,105
6,871
-
-
-
-
-
-
(i) Allowances are based on the executive employment agreement and may include expat allowance,
company car allowance, rent allowance and security bond and school-fee allowance received from
subsidiaries and related joint venture entities.
(iii) Other short-term benefits consist of exchange gain/(loss) due to foreign currency translation
from Oman Riyal to Australia Dollars and Saudi Riyal to Australian Dollars on Mr Richard’s
salary.
(ii) Non-cash benefits include net annual leave expensed but not paid during the year.
(iv) Appointed 1 May 2018. Remuneration, in his capacity as Company Secretary, paid to Fortuna
Advisory Group.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Directors’ Report
Equity Based Benefits
The Company provided the equity based benefits to Key Management Personnel during the financial year specified below. No shares were issued as a result
of the exercise of options held by Key Management Personnel during the financial year.
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is exerciseable over one fully paid, ordinary, share in the
Company and has an exercise price of AUD 0.03 per share. The options expire on 1 July 2022.
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020. Each option is exerciseable over one fully paid, ordinary,
share in the Company and has an exercise price of AUD 0.03 per share. The options vest upon the Company achieving the first production of saleable copper
concentrate, provided this occurs by 31 March 2022. If the Company:
• does not achieve the first production of saleable copper concentrate, as determined by the Board, acting reasonably, by 31 March 2022 the options will
not become exerciseable; or
• achieves the first production of saleable copper concentrate by that date (as determined by the Board) but the Managing Director does not exercise any
given Option within one (1) year after the date on which that first production occurs, any Options which have not been exercised will lapse at the end of
the last day of that year.
Options Lapsed During the Year
No options lapsed during the year.
Details of Shares Held by Key Management Personnel
2020-2021
Name
Stephen Gethin
Atmavireshwar Sthapak
Vikas Jain
Sanjeev Kumar
Dinesh Aggarwal
James Phipps
Justin Richard
Avi Sthapak
2019-2020
Name
Justin Richard(i)
Atmavireshwar Sthapak
James Phipps
Vikas Jain
Avi Sthapak
Stephen Gethin
Balance at
1 July 2020
Balance at
appointment
Net change
Balance at
cessation
Balance at
30 June 2021
Fully Paid, Ordinary Shares
-
2,951,451
37,745,930
-
35,319,526(i)
-
-
-
-
910,600
-
-
6,055,725
-
-
-
-
35,319,526(i)
-
-
3,862,051
37,745,930
-
6,055,725
Balance at
1 July 2019
Balance at
appointment
Net change
Balance at
cessation
Balance at
30 June 2020
Ordinary Fully Paid Shares
34,119,526
2,544,838
-
37,745,930
-
1,200,000
406,613
-
-
-
-
-
35,319,526
2,951,451
-
37,745,930
-
-
Note:
(i) Includes shares held by Mr Richard’s spouse.
Details of Options Held by Key Management Personnel
The only options held by Key Management Personnel are those disclosed above under the heading Equity Based Benefits.
Employment Contracts
(b)
Managing Director – Atmavireshwar Sthapak
Annual base salary of AUD 291,569 per annum.
Housing allowance of up to AUD 41,406 per annum.
Atmavireshwar Sthapak was appointed Managing Director on 27 July 2020. The material terms of his contract in effect during the Reporting Period were as
follows8:
•
•
•
•
•
•
•
Standard annual leave (20 days) and personal/sick leave (10 days paid) plus any additional entitlements prescribed under Omani labour law.
The Managing Director’s Options, as detailed under the heading equity based payments on this page, above.
Vehicle allowance of up to AUD 77,637 per annum, plus fuel, maintenance and registration costs.
Compulsory statutory “end of service” payments due under Omani labour law.
Either party may terminate the agreement by giving three (3) months’ notice.
8 Refer Alara’s 3 February 2016 ASX Announcement: “Appointment of Executive Director”.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Directors’ Report
•
The Board is yet to determine two (2) proposed additional components to Mr Sthapak’s long-term incentive remuneration. These components are
expected to consist of the issue of two (2) further tranches of options, each to vest upon attainment of separate milestones to be set relating to other
aspects of the Company’s future development. Full details will be announced on ASX when these elements of his remuneration package are finalised.
(a)
Former Managing Director/CEO – Justin Richard
Justin J. Richard was appointed the Company’s Legal and Commercial Manager in August 2011 and Alara’s Country Manager for Saudi Arabia in November
2012 and for Oman in December 2013. He was appointed Managing Director on 16 June 2015 and resigned on 27 July 2020. The terms of his Managing
Director’s employment contract were carried over from his previous agreement with no increase in salary or allowance. The material terms of his Managing
Director’s employment contract were as follows:
•
One-year term with annual base salary of AUD 381,045 (subject to adjustments for exchange rate variations* for salary paid in Omani Rials). His
employment contract was subsequently extended on the same terms indefinitely.
•
•
•
•
•
Expatriate allowances (including housing, school and travel) totalling approximately AUD 175,000 per annum (subject to adjustments for exchange rate
variations*).
Provision of medical insurance cover.
Standard annual leave (20 days) and personal/sick leave (10 days paid) entitlements plus any additional entitlements prescribed under relevant Labour
Law.
Compulsory statutory “end of service” payments due under Omani Law.
One month’s notice of termination within first six months, subject to repatriation provisions which total approximately three (3) months remuneration.
*Exchange rate variations based on rates prevailing at the time the expatriate assignments commenced.
(b)
Other Executives
Details of the material terms of formal employment/consultancy agreements (as the case may be) between the Company and other Key Management Personnel
during the period are as follows:
Key Management Personnel
and Position(s) Held
Stephen Gethin
Chairman
Relevant Date(s)
Base Salary/Fees per annum
Other Key Terms
2 July 2020
(Commenced)
AUD 75,000 plus GST per annum.
Dinesh Aggarwal
Company Secretary
2 July 2020
(Commenced)
The Company pays Fortuna Advisory Group AUD
for Company
110,400 as a combined amount
Secretarial and Chief Financial Officer services. Mr
Aggarwal is a consultant to Fortuna Advisory Group
through Fortuna Accountants and Business Advisors,
of which he is Managing Director.
N/A
N/A
Other Benefits Provided to Key Management Personnel
No Key Management Personnel has during or since the end of the financial year received or become entitled to receive a benefit, other than a remuneration
benefit as disclosed above, by reason of a contract made by the Company or a related entity with the Director or with a firm of which he is a member, or with a
Company in which he has a substantial interest. There were no loans to Directors or executives during the reporting period.
Employee Share Option Plan
The Company has an Employee Share Option Plan (the ESOP) which was most recently approved by shareholders at the 2017 Annual General Meeting. The
ESOP was developed to assist in the recruitment, reward, retention and motivation of Alara employees, excluding Directors. Under the ESOP, the Board will
nominate personnel to participate and will offer options to subscribe for shares to those personnel. A summary of the terms of ESOP is set out in Annexure A
to Alara’s Notice of Annual General Meeting and Explanatory Statement for its 2017 AGM. No securities were issued to KMP under the ESOP during the
financial year (2020: Nil).
Director’s Loan Agreements
There were no loan agreements with the Directors during the year.
Securities Trading Policy
The Company has a Securities Trading Policy, a copy of which is available for viewing and downloading from the Company’s website.
Voting and Comments on the Remuneration Report at the 2020 Annual General Meeting
At the Company’s most recent (2020) Annual General Meeting (AGM), a resolution to adopt the 2020 Remuneration Report was put to a vote and passed
unanimously on a show of hands with the proxies received also indicating 81.83% support for adopting the Remuneration Report.9 No comments were made
on the Remuneration Report at the AGM.
9 Refer Alara’s 17 November 2017 ASX Announcement: Results of Meeting.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Directors’ Report
Engagement of Remuneration Consultants
The Company did not engage a remuneration consultant during the year.
The Board has established a policy for engaging external remuneration consultants. The policy includes a requirement for the Remuneration and Nomination
Committee to:
• approve all engagements of remuneration consultants;
•
receive remuneration recommendations from remuneration consultants (to the exclusion of persons not members of the Committee) regarding Key
Management Personnel; and
• ensure that the making of remuneration recommendations is free from undue influence by the member or members of the Key Management Personnel to
whom the recommendation relates.
This concludes the audited Remuneration Report.
Directors’ and Officers’ Insurance
The Company did not have a policy of Directors’ and Officers’ Insurance during the reporting period.
Directors’ Deeds
In addition to the rights of indemnity provided under the Company’s Constitution (to the extent permitted by the Corporations Act), the Company has also entered
into a deed with each of the Directors and the Secretary (each an Officer) to regulate certain matters between the Company and each Officer, both during the
time the Officer holds office and after the Officer ceases to be an officer of the Company, including the following matters:
•
The Company’s obligation to indemnify an Officer for liabilities or legal costs incurred as an officer of the Company (to the extent permitted by the
Corporations Act).
•
Subject to the terms of the deed and the Corporations Act, the Company may advance monies to Officers to meet any costs or expenses of the Officer
incurred in circumstances relating to the indemnities provided under the deed and before the outcome of legal proceedings brought against the Officer.
Legal Proceedings on Behalf of Consolidated Entity (Derivative Actions)
No person has applied for leave of a court to bring proceedings on behalf of the Consolidated Entity or intervene in any proceedings to which the Consolidated
Entity is a party for the purpose of taking responsibility on behalf of the Consolidated Entity for all or any part of such proceedings and the Consolidated Entity
was not a party to any such proceedings during and since the financial year.
Auditor
Details of the amounts paid or payable to the Company’s auditors (this Rothsay Auditing for 30 June 2021 and RSM Chartered Accountants for the Oman entity
audits) for audit and non-audit services provided during the financial year are set out below (refer to Note 5):
Audit and Review Fees
$
27,902
Fees for Other Non-Audit Services
$
–
Total
$
27,902
No non-audit services were provided by the Auditors during the year.
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 forms part of this Directors Report and is set
out on page 18.
Events Subsequent to Reporting Date
The Directors are not aware of any matters or circumstances at the date of this Directors’ Report, other than those referred to in this Directors’ Report or the
financial statements or notes thereto, that have significantly affected or may significantly affect the operations, the results of operations or the state of affairs of
the Company and Consolidated Entity in subsequent financial years.
Signed for and on behalf of the Directors in accordance with a resolution of the Board:
Atmavireshwar Sthapak
Managing Director
29 September 2021
ALARA RESOURCES LIMITED
Page 17 of 48
50
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Independent Auditor’s Declaration
The Directors
Alara Resources Limited
Suite 1.02
110 Erindale Road
Balcatta WA 6021
Dear Directors
In accordance with Section 307C of the Corporations Act 2001 (the "Act") I hereby declare that to the best
of my knowledge and belief there have been:
(i) no contraventions of the auditor independence requirements of the Act in relation to the audit of
the 30 June 2021 financial statements; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Alara Resources Limited and the entities it controlled during the year.
Daniel Dalla
Partner
Rothsay Auditing
Dated 29 September 2021
51
Alara Resources Annual Report 2021
Consolidated Statement of Profit and Loss and
other Comprehensive Income
for the year ended 30 June 2021
Note
3
3
3
11
2021
$
1,779
10,000
(82,519)
(1,097,128)
(39,216)
(8,070)
(55,640)
(346,200)
(53,477)
2020
$
477,951
164,901
(5,304)
(244,548)
(46,438)
(1,023)
(132,856)
(258,061)
30,412
(1,670,471)
(14,966)
-
(1,670,471)
-
(14,966)
Revenue
Other income
Gain/(Loss) on Forex
Personnel
Occupancy Costs
Finance expense
Corporate expenses
Administration expenses
Share of profit/(losses) of associates
PROFIT/(LOSS) BEFORE INCOME TAX
Income tax benefit
PROFIT/(LOSS) FOR THE YEAR
Other comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Total other comprehensive income/(loss)
(1,567,055)
(1,567,055)
841,597
841,597
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR
(3,237,526)
826,631
Profit/(loss) attributable to:
Owners of Alara Resources Limited
Non-controlling interest
Total comprehensive income/(loss) for the year attributable to:
Owners of Alara Resources Limited
Non-controlling interest
(1,622,329)
(48,142)
(1,670,471)
273,985
(288,951)
(14,966)
(3,189,384)
(48,142)
1,115,582
(288,951)
(3,237,526)
826,631
Earnings/Loss per share:
Basic earnings/(loss) per share cents
Diluted earnings/(loss) per share cents
6
6
(0.24)
(0.24)
0.04
0.04
The accompanying notes form part of this consolidated financial statement.
ALARA RESOURCES LIMITED
52
Page 19 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Consolidated Statement of Financial Position
As at 30 June 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other current assets
Financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial assets
Investment in Associate
Borrowing Cost
Property, plant and equipment
Mine properties & Development assets
Exploration and evaluation
TOTAL NON CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Unearned income
Provisions
Financial Liability
TOTAL CURRENT LIABILITIES
NON CURRENT LIABILITIES
Financial liabilities
Provisions
TOTAL NON CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
Parent interest
Non-controlling interest
TOTAL EQUITY
Note
7
8
9
10
10
11
12
13
13
14
15
16
17
18
18
19
20
2021
$
4,241,815
38,566
23,869
1,030,168
2020
$
7,674,616
30,633
377,578
8,661
5,334,418
8,091,488
454,088
139,350
733
98,648
12,383,033
4,910,968
17,986,820
422,342
192,827
-
39,810
9,926,151
5,161,876
15,743,006
23,321,238
23,834,494
988,405
8,079
93,838
21,409
1,111,731
701,719
267,734
8,817
21,755
-
298,306
684,411
-
701,719
684,411
1,813,450
982,717
21,507,788
22,851,777
68,233,860
9,495,609
(56,062,753)
21,666,716
(158,928)
21,507,788
66,340,323
11,062,664
(54,440,424)
22,962,563
(110,786)
22,851,777
The accompanying notes form part of this consolidated financial statement.
ALARA RESOURCES LIMITED
Page 20 of 48
2021 FULL-YEAR REPORT
53
Alara Resources Annual Report 2021
Consolidated Statement of Changes in Equity
As at 30 June 2021
Director’s Report
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NET CASHFLOWS USED IN INVESTING ACTIVITIES
(3,165,710)
2,272,954
Note
NET CASHFLOWS USED IN OPERATING ACTIVITIES
7b
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customer/ Others
Payments to suppliers and employees (inclusive of GST)
Interest received
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for development and exploration expenditure
Payments towards term deposits
Loan to other entity (repayment)
Proceeds from disposal of investments
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuing ordinary shares
Cost of issuing ordinary shares
Transaction cost related to borrowings
NET CASHFLOWS PROVIDED BY FINANCING ACTIVITIES
2020
$
-
(2,670,073)
553,896
(2,116,177)
(9,146)
(3,185,950)
-
195,325
5,272,725
232,918
-
(421,580)
(188,662)
2021
$
10,000
(1,666,486)
1,637
(1,654,849)
(13,249)
(2,120,568)
(1,031,893)
-
-
-
1,904,629
(11,091)
1,893,538
7,674,616
(505,780)
4,241,815
NET INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS HELD
(2,927,021)
(31,885)
Cash and cash equivalents at beginning of the financial year
Effect of exchange rate changes on cash
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
7
7,562,407
144,094
7,674,616
The accompanying notes form part of this consolidated financial statement.
T
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ALARA RESOURCES LIMITED
Page 22 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from Customer/ Others
Payments to suppliers and employees (inclusive of GST)
Interest received
NET CASHFLOWS USED IN OPERATING ACTIVITIES
7b
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment
Payments for development and exploration expenditure
Payments towards term deposits
Loan to other entity (repayment)
Proceeds from disposal of investments
2021
$
10,000
(1,666,486)
1,637
(1,654,849)
(13,249)
(2,120,568)
(1,031,893)
-
-
2020
$
-
(2,670,073)
553,896
(2,116,177)
(9,146)
(3,185,950)
-
195,325
5,272,725
NET CASHFLOWS USED IN INVESTING ACTIVITIES
(3,165,710)
2,272,954
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuing ordinary shares
Cost of issuing ordinary shares
Transaction cost related to borrowings
NET CASHFLOWS PROVIDED BY FINANCING ACTIVITIES
1,904,629
(11,091)
-
1,893,538
232,918
-
(421,580)
(188,662)
NET INCREASE / DECREASE IN CASH AND CASH EQUIVALENTS HELD
(2,927,021)
(31,885)
Cash and cash equivalents at beginning of the financial year
Effect of exchange rate changes on cash
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR
7
7,674,616
(505,780)
4,241,815
7,562,407
144,094
7,674,616
The accompanying notes form part of this consolidated financial statement.
ALARA RESOURCES LIMITED
Page 22 of 48
55
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
1.
SUMMARY OF ACCOUNTING POLICIES
Statement of Significant Accounting Policies
The principal accounting policies adopted in the preparation of these financial statements are set out below.
The financial report includes the financial statements for the Consolidated Entity consisting of Alara Resources Limited and its controlled and jointly
controlled entities. Alara Resources Limited is a company limited by shares, incorporated in Western Australia, Australia and whose shares are
publicly traded on the Australian Securities Exchange (ASX).
1.1.
Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian Accounting
Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Alara Resources
Limited is a for-profit entity for the purposes of preparing the financial statements.
Compliance with IFRS
The consolidated financial statements of the Consolidated Entity, Alara Resources Limited, also comply with International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Reporting Basis and Conventions
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current
assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Going Concern Assumption
The financial statements have been prepared on the going concern basis of accounting which assumes the continuity of normal business activities
and realisation of assets and settlement of liabilities in the ordinary course of business.
The Group has incurred a loss for the year ended 30 June 2021 of AUD 1,670,471 (2020: Loss AUD 14,966) and cash inflows/(outflows) from
operating and investing activities of ($4,820,559) (2020: $156,777). As at 30 June 2021 the Group has a cash at bank balance of AUD 4,241,815
(2020: AUD 7,674,616) and bank deposits of AUD 1,039,829 (2020: AUD 8,661) and working capital of AUD 4,222,688 (2020: AUD 7,793,182).
The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all commitments and working
capital requirements for the 12-month period from the date of signing this financial report. Based on the cash flow forecast, the directors are satisfied
that the going concern basis of preparation is appropriate.
1.2.
Principles of Consolidation
The consolidated financial statements incorporate the assets and liabilities of the subsidiaries of Alara Resources Limited as at 30 June 2021 and
the results of its subsidiaries for the year then ended. Alara Resources Limited and its subsidiaries are referred to in this financial report as the
Consolidated Entity. All transactions and balances between Consolidated Entity companies are eliminated on consolidation, including unrealised
gains and losses on transactions between Consolidated Entity companies. Where unrealised losses on intra-group asset sales are reversed on
consolidation, the underlying asset is also tested for impairment from a Consolidated Entity perspective. Amounts reported in the financial statements
of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Consolidated Entity. Profit or
loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition,
or up to the effective date of disposal, as applicable. Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s
profit or loss and net assets that is not held by the Consolidated Entity. The Consolidated Entity attributes total comprehensive income or loss of
subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests.
1.3.
Foreign Currency Translation and Balances
Functional and presentation currency
The functional currency of each entity within the Consolidated Entity is measured using the currency of the primary economic environment in which
that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional and presentation
currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign
currency monetary items are translated at the year-end exchange rate. Exchange differences arising on the translation of monetary items are
recognised in profit or loss, except where deferred in equity as a qualifying cash flow or net investment hedge. Exchange differences arising on the
translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the
exchange difference is recognised in profit or loss.
Consolidated entity
The financial results and position of foreign operations whose functional currency is different from the Consolidated Entity’s presentation currency
are translated as follows:
(a) assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
(b) income and expenses are translated at average exchange rates for the period; and
(c) retained earnings are translated at the exchange rates prevailing at the date of the transaction.
ALARA RESOURCES LIMITED
Page 23 of 48
56
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
Exchange differences arising on translation of foreign operations are transferred directly to the Consolidated Entity’s foreign currency translation
reserve in the statement of financial position. These differences are recognised in profit or loss in the period in which the operation is disposed.
1.4.
Joint Arrangements
Joint arrangements exist when two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control, in the event the Company
does not share control the financials are consolidated (or deconsolidated in the event of loss of control) (refer to 1.2 for further information). The
Consolidated Entity’s joint arrangements are currently of one type:
Joint operations
Joint operations are joint arrangements in which the parties with joint control have rights to the assets and obligations for the liabilities relating to the
arrangement. The activities of a joint operation are primarily designed for the provision of output to the parties to the arrangement, indicating that:
•
•
the parties have the rights to substantially all the economic benefits of the assets of the arrangement; and
all liabilities are satisfied by the joint participants through their purchases of that output. This indicates that, in substance, the joint participants
have an obligation for the liabilities of the arrangement.
1.5.
Leases
In the previous year, the Group has applied AASB 16 that is effective for annual periods that begin on or after 1 January 2019. AASB 16 introduced
a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases.
The main changes introduced by the new Standard are as follows:
•
recognition of a right-of-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating
to low-value assets);
•
•
•
•
depreciation of right-of-use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability in principal
and interest components;
inclusion of variable lease payments that depend on an index or a rate in the initial measurement of the lease liability using the index or rate
at the commencement date;
application of a practical expedient to permit a lessee to elect not to separate non-lease components and instead account for all components
as a lease; and
inclusion of additional disclosure requirements.
The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108 or recognise
the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.
1.6.
Comparative Figures
Certain comparative figures have been adjusted to confirm to changes in presentation for the current financial year.
1.7.
Critical Accounting Judgements and Estimates
The preparation of the Consolidated Financial Statements requires Directors to make judgements and estimates and form assumptions that affect
how certain assets, liabilities, revenue, expenses and equity are reported. At each reporting period, the Directors evaluate their judgements and
estimates based on historical experience and on other various factors they believe to be reasonable under the circumstances, the results of which
form the basis of the carrying values of assets and liabilities (that are not readily apparent from other sources, such as independent valuations).
Actual results may differ from these estimates under different assumptions and conditions.
Exploration and evaluation expenditure
The Consolidated Entity’s accounting policy for exploration and evaluation expenditure being capitalised include the Daris Project where these costs
are expected to be recoverable 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 or otherwise of economically recoverable reserves. In the case of the Al Hadeetha project, a maiden
reserve announcement was issued in December 2016. This policy requires management to make certain estimates to future events and
circumstances, in particular whether an economically viable extraction operation can be established. Any such estimates and assumptions may
change as new information becomes available. If, after having capitalised the expenditure under the policy, a judgement is made that recovery of the
expenditure is not possible, the relevant capitalised amount will be written off to profit or loss.
Impairment of mine development expenditure
The future recoverability of capitalised mine development expenditure is dependent on a number of factors, including the level of proved and probable
reserves and measured, indicated and inferred mineral resources, future technological changes which could impact the cost of mining, future legal
changes and changes to commodity prices.
To the extent that capitalised mine development expenditure is determined not to be recoverable in the future, this will reduce profits and net assets
in the period in which this determination is made.
ALARA RESOURCES LIMITED
57
Page 24 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
Share-based payments transactions
The Consolidated Entity measures the cost of equity-settled transactions with Directors and employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined using a Black-Scholes options valuation model, taking into account
the terms and conditions upon which the instruments were granted. The accounting estimates have no impact on the carrying amounts of assets and
liabilities but will impact expenses and equity.
1.8.
New, Revised or Amending Accounting Standards and Interpretations Adopted
The Consolidated Entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are mandatory for the current reporting period. The adoption of these Accounting Standards and
Interpretations did not have any significant impact on the financial performance or position of the Consolidated Entity during the financial year.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
1.9.
New Accounting Standards and Interpretations not yet Mandatory or Early Adopted
There are no forthcoming standards and amendments that are expected to have a material impact on the group in the current or future reporting
periods, or on foreseeable future transactions.
2.
PARENT ENTITY INFORMATION
The following information provided relates to the Company, Alara Resources Limited, as at 30 June 2021.
Statement of Financial Position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Accumulated losses
Total equity
Profit/(loss) for the year
Total comprehensive income /(loss) for the year
3.
PROFIT/(LOSS) FOR THE YEAR
The operating profit before income tax includes the following items of revenue and expense:
Revenue
Interest
Other income
Unrealised Forex Gain/ (Loss)
2021
$
1,824,466
9,350,648
11,175,114
162,166
11,026
173,192
11,001,922
68,233,860
(57,231,938)
11,001,922
(578,750)
(578,750)
2021
$
1,779
10,000
(82,519)
(70,740)
2020
$
776,427
8,941,193
9,717,620
30,486
-
30,486
9,687,134
66,340,322
(56,653,188)
9,687,134
(331,913)
(331,913)
2020
$
477,951
164,901
(5,304)
637,548
ACCOUNTING POLICY NOTE
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Consolidated Entity and the revenue can be reliably
measured. All revenue is stated net of the amount of goods and services tax (GST) except where the amount of GST incurred is not recoverable from
the Australian Tax Office. The following specific recognition criteria must also be met before revenue is recognised:
•
Interest Revenue – Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial
assets.
•
Other Revenues – Other revenues are recognised on a receipts basis.
ALARA RESOURCES LIMITED
Page 25 of 48
58
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 20210
4.
INCOME TAX EXPENSE
The major components of tax expense and the reconciliation of the expected tax
expense based on the domestic effective tax rate of 2021 at 26% (2020: 27.5%) and
the reported tax expense in profit or loss are as follows:
Tax expense comprises:
(a) Current tax
Deferred income tax relating to origination and reversal of temporary differences
- Origination and reversal of temporary differences
- Utilisation of unused tax losses previously unrecognised
Under/(Over) provision in respect of prior years
Tax expense
Deferred Tax Expense (income), recognised directly in other comprehensive income
(b) Accounting profit before tax
Income Tax Expense to Accounting Profit:
Tax at the Australian tax rate of 26% (2020: 27.5%)
Assessable amounts
Deferred Tax Asset losses not brought to account
Non-assessable income - Other
Non-deductible items
Utilisation of unused tax losses previously unrecognised
Deferred tax assets recognised/ (not recognised)
Tax rate difference
Income tax expenses (benefit)
(c) Recognised Deferred Tax Balances
Deferred tax asset
Deferred tax asset (losses)
Set-off deferred tax liabilities
(d) Deductible temporary differences, unused tax losses and unused tax credits
for which no deferred tax assets have been recognised are attributable to the
following:
Unrecognised deferred tax asset losses
Unrecognised deferred tax asset losses (capital)
Unrecognised deferred tax asset Oman losses
2021
$
2020
$
-
-
-
-
-
(1,670,471)
(434,322)
80,336
177,571
(2,600)
193,760
(90,311)
14,230
61,336
-
19,850
78,959
(98,809)
-
1,411,926
426,391
202,979
2,041,296
-
-
-
-
-
(14,966)
(4,116)
49,437
-
(11,113)
71,197
(61,270)
(29,082)
(15,053)
-
1,009
98,546
(99,555)
-
1,525,220
450,990
218,624
2,194,834
The benefit of the deferred tax assets not recognised will only be obtained if:
(i)
The Consolidated Entity derives future income that is assessable for Australian income tax purposes and is of a type and an amount sufficient
to enable the benefit of them to be realised;
The Consolidated Entity continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and
There are no changes in tax law which will adversely affect the Consolidated Entity in realising the benefit of them.
(ii)
(iii)
The Consolidated Entity has elected to consolidate for taxation purposes and has entered into a tax sharing and funding agreement in respect of
such arrangements.
ACCOUNTING POLICY NOTE
Income Tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the notional income tax rate
for each taxing jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of
assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses (if applicable). Deferred tax assets and liabilities
are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those
tax rates which are enacted or substantively enacted for each taxing jurisdiction. The relevant tax rates are applied to the cumulative amounts of
ALARA RESOURCES LIMITED
Page 26 of 48
59
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
4. Income Tax Expense (Continued)
deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences
arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if
they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable
profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
amounts will be available to utilise those temporary differences and losses. The amount of deferred tax assets benefits brought to account or which
may be realised in the future, is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that
the Consolidated Entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law. Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in controlled entities where the Company is able to control the timing of the reversal of the temporary differences and it is
probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset when there is a 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 tax
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. Current and deferred tax balances attributable to amounts recognised directly in other comprehensive income or
equity are also recognised directly in other comprehensive income or equity.
Tax consolidation legislation
The Consolidated Entity implemented the tax consolidation legislation. The head entity, Alara Resources Limited, and the controlled entities in the
tax consolidated group continue to account for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the
tax consolidated group continues to be a stand-alone taxpayer in its own right. In addition to its own current and deferred tax amounts, the Company
also recognises the current tax liabilities (or assets) and the deferred tax assets (as appropriate) arising from unused tax losses and unused tax
credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements within the tax
consolidated entities are recognised as amounts receivable from or payable to other entities in the Consolidated Entity. Any differences between the
amounts assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to (or distribution from)
wholly-owned tax consolidated entities.
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
Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the cash flow statement on
a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
5.
AUDITOR’S REMUNERATION
During the year the following fees were paid or payable for services provided by the auditors to the Consolidated Entity, their related practices and
non-audit related firms:
Bentleys Audit and Corporate (WA) Pty Ltd
Rothsay Consulting services – Auditors of the Consolidated Entity
(Audit and review of financial reports)
RSM Chartered Accountants – Auditors of Oman-controlled entities
(Audit and review of financial reports)
[The remainder of this page is intentionally blank]
2021
$
-
20,250
7,652
2020
$
3,845
22,000
5,987
27,902
31,832
ALARA RESOURCES LIMITED
Page 27 of 48
60
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
6.
EARNINGS/(LOSS) PER SHARE
Basic earnings/(loss) per share cents
Diluted earnings/(loss) per share cents
Profit/(loss) $ used to calculate earnings/(loss) per share
2021
$
(0.24)
(0.24)
(1,622,329)
2020
$
0.04
0.04
273,985
Weighted average number of ordinary shares during the period used in calculation of
basic earnings/(loss) per share
Weighted average number of ordinary shares during the period used in calculation of
diluted earnings/(loss) per share
667,645,289
629,835,362
667,645,289
629,835,362
Under AASB 133 “Earnings per share”, potential ordinary shares such as options will only be treated as dilutive when their conversion to ordinary
shares would increase loss per share from continuing operations.
ACCOUNTING POLICY NOTE
Basic Earnings per share is determined by dividing the operating result after income tax by the weighted average number of ordinary shares on issue
during the financial period. Diluted Earnings per share adjusts the figures used in the determination of basic earnings per share by taking into account
amounts unpaid on ordinary shares and any reduction in earnings per share that will probably arise from the exercise of options outstanding during
the financial period.
7.
CASH AND CASH EQUIVALENTS
Cash in hand
Cash at bank
Term deposits
2021
$
542
4,136,880
104,393
4,241,815
2020
$
239
7,467,091
207,286
7,674,616
The effective interest rate on short-term bank deposits was 0.25% (2020: 1.15%) with an average maturity of 137 days.
(a) Risk exposure
The Consolidated Entity’s exposure to interest rate and foreign exchange risk is discussed in Note 23. The maximum exposure to credit risk at the
end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above.
ACCOUNTING POLICY NOTE
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments and bank overdrafts.
Bank overdrafts (if any) are shown within short-term borrowings in current liabilities on the statement of financial position.
(b) Reconciliation of Net Profit/(Loss) after Tax to Net Cash Flow
From Operations
Profit/(Loss) after income tax
Gain/(Loss) on Forex (Unrealised)
Profit on sale of asset
Gain/(loss) on disposal of Subsidiary
Share of profits/(losses) of associates and joint ventures
Foreign exchange movement
Depreciation
(Increase)/Decrease in Assets:
Trade and other receivables
Other current assets
Increase/(Decrease) in Liabilities:
Payable to AHI
Insurance premium funding (Other payables)
Trade and other payables
Provisions
Statdrome Advance paid
Net cashflows from/ (used in) operating activities
2021
$
(1,670,471)
-
-
-
53,477
21,738
12,099
(7,933)
13,074
-
11,026
(159,942)
72,083
-
(1,654,849)
2020
$
(14,966)
-
-
-
(30,412)
(273,130)
9,575
3,087
80,914
40,179
-
(292,961)
(22,898)
(1,615,565)
(2,116,177)
ALARA RESOURCES LIMITED
61
Page 28 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
8.
TRADE AND OTHER RECEIVABLES
Current
Amounts receivable from:
Sundry debtors
Goods and services tax recoverable
VAT Receivable
Cash advances
2021
$
17,419
6,244
14,026
877
38,566
2020
$
25,476
5,157
-
-
30,633
(a) Risk exposure
Information about the Consolidated Entity's exposure to credit risk, foreign exchange risk and interest rate risk is in Note 23.
(b) Impaired receivables
None of the above receivables are impaired or past due.
ACCOUNTING POLICY NOTE
Trade and other receivables are recorded at amounts due less any provision for doubtful debts. An estimate for doubtful debts is made when collection
of the full amount is no longer probable. Bad debts are written off when considered non-recoverable.
9.
OTHER CURRENT ASSETS
Prepayments
Accrued interest
10.
FINANCIAL ASSETS
Current
Bank deposits
Non-Current
Interest free loan to Alara Resources LLC
Bank deposits (More than one year)
11.
INVESTMENT IN ASSOCIATES
The movement for the year in the Group’s investments accounted for using the equity method is as follows:
Opening balance
Investment in Alara Resources LLC
Profit /(Loss) from equity accounted investments
Subtotal
2021
$
23,374
495
23,869
2021
$
2020
$
377,224
354
377,578
2020
$
1,030,168
8,661
444,427
9,661
422,342
-
1,484,256 431,003
2021
$
192,827
-
(53,477)
139,350
2020
$
162,415
-
30,412
192,827
ACCOUNTING POLICY NOTE
An associate is an entity over which the group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.
Under the equity method, an investment in an associate is recognized initially in the consolidated statement of financial position at cost and adjusted
thereafter to recognize the group’s share of the profit or loss and other comprehensive income of the associate. When the group’s share of losses of
an associate exceeds the Group’s interest in that associate, the group discontinues recognising its share of further losses. Additional losses are
recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.
ALARA RESOURCES LIMITED
62
Page 29 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
12.
BORROWING COST
Borrowing Cost
Less: Amortization for the period
13.
PROPERTY, PLANT AND EQUIPMENT
2021
$
766
(33)
733
2020
$
-
-
-
Motor
Vehicles
Office
Equipment
Plant and
Equipment
$
$
$
Mine Properties
& Development
assets
$
Year ended 30 June 2020
Carrying amount at beginning
Additions
Disposal
Write-offs
Depreciation expense
Exchange Difference
Closing amount at reporting date
Year ended 30 June 2020
Cost or fair value
Accumulated depreciation
Net carrying amount
Year ended 30 June 2021
Carrying amount at beginning
Additions
Disposal
Write-offs
Depreciation expense
Exchange Difference
Closing amount at reporting date
Year ended 30 June 2021
Cost or fair value
Accumulated depreciation
Net carrying amount
17,005
-
-
-
(2,674)
437
14,768
30,125
(15,357)
14,768
14,768
66,595
-
(4,227)
(1,201)
75,935
94,199
(18,264)
75,935
21,297
9,146
-
-
(6,485)
272
24,230
1,192
-
-
-
(416)
36
812
179,954
(155,724)
24,230
23,552
(22,740)
812
24,230
6,581
-
(7,623)
(972)
22,216
812
-
-
-
(249)
(66)
497
6,534,088
3,250,026
-
-
-
142,037
9,926,151
9,926,151
-
9,926,151
9,926,151
3,251,950
-
-
-
(795,068)
12,383,033
Total
$
6,573,582
3,259,172
-
-
(9,575)
142,782
9,965,961
10,159,782
(193,821)
9,965,961
9,965,961
3,325,126
-
-
(12,099)
(797,306)
12,481,681
183,862
(161,647)
22,215
21,582
(21,085)
497
12,383,033
-
12,383,033
12,682,675
(200,996)
12,481,679
ACCOUNTING POLICY NOTE
All plant and equipment are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure that
is directly attributable to the acquisition of the items. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not
in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present value in
determining recoverable amount. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Consolidated Entity and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. The
depreciable amount of all fixed assets is depreciated on a diminishing value basis over the asset's useful life to the Consolidated Entity commencing
from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Office Equipment
Motor Vehicles
Plant and Equipment
Depreciation Rate
15 – 37.5%
33.3%
15 – 33.3%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s carrying amount is written
down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on
disposals are determined by comparing proceeds with carrying amount. These are included in the statement of profit or loss and other comprehensive
income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
ALARA RESOURCES LIMITED
Page 30 of 48
63
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
Mine properties and development assets
Mine property and development assets include costs incurred in accessing the ore body and costs to develop the mine to the production phase, once
the technical feasibility and commercial viability of a mining operation has been established. At this stage, exploration and evaluation assets are
reclassified to mine properties. Mine property and development assets are stated at historical cost less accumulated amortisation and any
accumulated impairment losses recognised. The initial cost of an asset comprises its purchase price or construction cost and any costs directly
attributable to bringing the asset into operation. Any ongoing costs associated with mining which are considered to benefit mining operations in future
periods are capitalised.
14.
EXPLORATION AND EVALUATION
Opening balance
- Exploration and evaluation expenditure
- Exchange differences
Closing balance
2021
$
5,161,876
309,492
(560,400)
4,910,968
2020
$
4,919,660
107,644
134,572
5,161,876
During the prior year, the Al Hadeetha Copper-Gold Project in Oman has been reclassified to Development Expenditure upon demonstrating
commercial viability and commencement of development activities.
On 21 October 2010, Alara Saudi Operations Pty Limited, a wholly owned subsidiary of the Company, entered into a shareholders’ agreement with
mineral licences holder, United Arabian Mining LLC (Manajem). Pursuant to the shareholders’ agreement a joint venture entity, Khnaiguiyah Mining
Company LLC (KMC) (in which the Consolidated Entity has a 50% shareholding interest) was established and Manajem are required to transfer legal
title to the mining licence and exploration licences over the Khnaiguiyah Project to KMC. The Consolidated Entity has obtained independent advice
confirming that valid and legally enforceable rights existed for KMC to commercially exploit the Khnaiguiyah Project. The financial statements of
previous Annual Reports were prepared on this basis with the asset carried at AUD 33,190,221 as at 30 June 2015. Following cancellation of the
Khnaiguiyah Mining Licence, a provision for impairment of the carrying value of exploration and evaluation attributable to the Khnaiguiyah Project
was made. This provision for impairment may be reversed in the future(see accounting policy note on mineral exploration and evaluation expenditure
below).
Alara Oman Operations Pty Limited (a wholly owned Australian subsidiary) gained a 70% shareholding interest in a jointly controlled company, Al
Hadeetha Resource LLC (Oman), on 23 November 2011. Further on 24 December 2018 the Group disposed of a 19% interest in Al Hadeetha
Resources LLC to Al Tasnim Infrastructure Services LLC, reducing its continuing interest to 51%. The principal activity of the company is exploration,
evaluation and development of mineral licences in Oman.
Alara Oman Operations Pty Limited (a wholly owned Australian subsidiary) gained a 50% shareholding interest in a jointly controlled company, Daris
Resources LLC (Oman), on 1 December 2010. The principal activity of this company is exploration, evaluation and development of mineral licences
in Oman. The Consolidated Entity has a valid and legally enforceable contractual right to commercially exploit the Daris Project held by Daris
Resources LLC (in which the Consolidated Entity has a 50% shareholding interest) and does not hold the legal title to the mineral exploration licence
(which is held by the other 50% shareholder of Daris Resources LLC). The financial statements have been prepared on this basis. Should these legal
rights not be enforceable, the carrying value of Exploration and Evaluation Expenditure attributable to the Daris Project would be impaired.
The Consolidated Group has entered into a Heads of Agreement with Copper LLC, under which wholly owned subsidiary Alara Oman Operations
Pty Ltd would become a 10% shareholder in the Awtad Block 8 Project. As part of the Heads of Agreement, Awtad acknowledges OMR 246,215
(AUD 812,316) previously spent on the project by Alara as the basis for Alara’s interest in that project.
ACCOUNTING POLICY NOTE
Mineral Exploration and Evaluation Expenditure
Exploration, evaluation and development expenditure incurred is accumulated (i.e. capitalised) in respect of each identifiable area of interest. These
costs are only carried forward where they are expected to be recoverable through the successful development of the area or where activities in the
area and includes areas that have not yet reached a stage that permits reasonable assessment of the existence or otherwise of economically
recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made. Exploration and evaluation expenditure is written-off when it fails to meet at least one of the conditions outlined above or
an area of interest is abandoned. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the
carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest that the carrying
amount exceeds the recoverable amount, the impairment loss will be measured in accordance with the Consolidated Entity’s impairment policy (Note
1.7). This policy requires management to make certain estimates to future events and circumstances, in particular whether an economically viable
extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after having
capitalised the expenditure under the policy, a judgement is made that recovery of the expenditure is not possible, the relevant capitalised amount
will be written off to the statement of profit or loss and other comprehensive income.
Impairment of Non-Financial Assets
At each reporting date, the Consolidated Entity reviews the carrying values of its tangible and intangible assets to determine whether there is any
indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair
value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable
amount is expensed to the profit or loss. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
ALARA RESOURCES LIMITED
Page 31 of 48
64
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
15.
TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables
2021
$
979,725
8,680
988,405
2020
$
267,424
310
267,734
Due to the short-term nature of the trade and other payables, their carrying value is assumed to approximate their fair value.
16.
UNEARNED INCOME
Current
Unearned income
2021
$
2020
$
8,079
8,079
8,817
8,817
On 15 March 2017 Alara Oman Operations Pty Ltd (a wholly owned subsidiary of the Company) entered into an off-take agreement for the supply of
copper concentrate from the Al Hadeetha Project to Statdrome Pte Ltd (Offtake Agreement). Under the Offtake Agreement, concentrate production
from the Al Hadeetha Copper Project (Wash-hi Majaza site) will be shipped from the Sohar port (unless a smelter is operating in Oman). In June
2018 Statdrome made a pre-payment under the Offtake Agreement. The Statdrome advance bears interest at LIBOR plus four percent per annum.
This amount represents unearned income. The amount of this liability in AUD is shown in the table above. On 3 May 2020, the advance received was
repaid to Statdrome.
(a) Risk exposure
Details of the Consolidated Entity's exposure to risks arising from current payables are set out in Note 23.
ACCOUNTING POLICY NOTE
These amounts represent liabilities for goods and services provided to the Consolidated Entity prior to the end of financial year which are unpaid.
The amounts are unsecured and are usually paid within 30 days of recognition.
17.
PROVISIONS
Current
Employee benefits – annual leave
Non-Current
Employee benefits – long service leave
2021
$
93,838
-
93,838
2020
$
21,755
-
21,755
Amounts not expected to be settled within the next 12 months
The entire annual leave obligation is presented as current as the Consolidated Entity does not have an unconditional right to defer settlement. The
non-current provision for long service leave is a provision towards the future entitlements of employees who will have completed the required period
of long service and that is not expected to be taken or paid within the next 12 months.
ACCOUNTING POLICY NOTE
Employee Benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months after the end of the
period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave is recognised in other payables and
accruals together with other employee benefit obligations.
(ii) Other long-term employee benefit obligations
The liability for long service leave and annual leave which is expected to be settled within 12 months after the end of the period in which the employee
renders the related service is recognised in the provision for employee benefits and measured as the present value of expected future payments to
be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted
using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as
possible, the estimated future cash outflows. The obligations are presented as current liabilities in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to
occur.
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Alara Resources Annual Report 2021
18.
FINANCIAL LIABILITIES
Financial liabilities
Non-Current
Loan with unrelated third party
Opening balance
Add: Addition during the year
Add: Interest
Add: Foreign exchange differences
Closing balance
Vehicle Loan
Opening balance
Add: Addition during the year
Less: Unexpired Interest on Vehicle Loan
Closing balance
Current
Vehicle Loan
Opening balance
Add: Addition during the year
Less: Unexpired Interest on Vehicle Loan
Closing balance
Insurance Premium Funding
Opening balance
Add: Addition during the year
Closing balance
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
2021
$
684,411
6,575
17,725
(57,269)
651,442
-
60,180
(9,903)
50,277
-
15,693
(5,309)
10,384
-
11,025
11,025
2020
$
644,232
26,175
14,004
684,411
-
-
-
-
-
-
-
-
-
-
-
(i)
On 16 April 2017, Al Hadeetha Resources LLC (AHR) (the joint venture company which conducts the Al Hadeetha Copper-Gold Project
(Project), in which the Company is a 51% shareholder) entered into an unsecured loan agreement as borrower with Al Hadeetha Investments
LLC (Lender) (an un-related company, which holds the remaining 30% of the shares in AHR). Under the agreement, AHR may draw down
a maximum of USD 2 million (AUD 2,663,982; OMR 767,774) to assist with working capital for the Project (AHI to AHR Loan). The AHI to
AHR Loan bears interest at LIBOR plus two percent per annum. The Loan will be in effect for the duration of the Project joint venture
agreement, at which time AHR must repay any outstanding balance. AHR must make interim repayments equal to its available net cash
profit (if any) at the end of each financial year. During the year AHR has not made any drawdowns under the Loan. The total amount drawn
down (being the total amount owing by AHR under the Loan to the end of the year (after offsetting corresponding debit balance of
OMR 18,095; AUD 62,436) OMR 188,795 (USD 489,073; AUD 651,442). If AHR determines at the end of any quarter or other period that it
has a working capital shortfall it may draw down the whole or part of the shortfall, until the entire Loan amount is drawn down. The remaining,
un-drawn balance of the Loan is OMR 561,276 (USD 1,462,086; AUD 1,947,485) (This is the undrawn balance based on the gross drawdown
amount of loan without offsetting the corresponding debit balance of OMR 18,095; AUD 62,436).
Although the AHI to AHR Loan is shown as a liability in the consolidated financial statements, loans by entities within the Alara Consolidated
Entity to AHR, which is also within that Consolidated Entity (Consolidated Entity AHR Loans) are not shown in the consolidated financial
statements. The Consolidated Entity AHR Loans total AUD 17.7 million and are subject to the same loan terms as the AHI to AHR Loan.
The Consolidated Entity AHR Loans are repayable on the same basis as the AHI to AHR Loan. Therefore, if AHR makes a loan repayment
to AHI, AHR will also be required to make a loan repayment to its lenders within the Alara Consolidated Group on a pro-rata basis.
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ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
19.
ISSUED CAPITAL
Fully paid ordinary shares
2020
Balance as at 1 July 2019
- Share movement during the 2020 financial year
- Share issue costs during the 2020 financial year
Balance as at 30 June 2020
2021
Balance as at 1 July 2020
- Share movement during the 2021 financial year
- Share issue costs during the 2021 financial year
Balance as at 30 June 2021
2021
№
705,429,239
2020
№
634,886,315
2021
$
68,233,860
2020
$
66,340,323
№
629,017,589
5,868,726
-
634,886,315
№
634,886,315
70,542,924
-
705,429,239
$
66,107,405
232,918
-
66,340,323
$
66,340,323
1,904,629
(11,092)
68,233,860
Each fully paid ordinary share carries one vote per share and the right to participate in dividends. Ordinary shares have no par value and the Company
does not have a limit on the amount of its capital.
Capital risk management
The Consolidated Entity's objective when managing its capital is to safeguard its ability to continue as a going concern, so that it can continue to
provide returns for shareholders and benefits for other stakeholders and to maintain a capital structure balancing the interests of all shareholders.
The Board will consider capital management initiatives as is appropriate and in the best interests of the Consolidated Entity and shareholders from
time to time. The Consolidated Entity had no external borrowings as at 30 June 2021, other than as disclosed in Note 18. The Consolidated Entity's
non-cash investments can be realised to meet accounts payable arising in the normal course of business.
Accounting Policy Note
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. Incremental costs directly attributable to the issue of new shares or options, or for the acquisition of a
business, are included in the cost of the acquisition as part of the purchase consideration.
20.
RESERVES
Foreign currency translation reserve
Transactions with minority interests
2021
$
901,756
8,593,853
9,495,609
2020
$
2,468,811
8,593,853
11,062,664
Foreign currency translation reserve
Exchange differences arising on translation of a foreign controlled entity's financial results and position are taken to the foreign currency translation
reserve. The reserve is de-recognised when the investment is disposed of.
Options reserve
The number of unlisted options outstanding over unissued ordinary shares at the reporting date is as follows:
Employees’ Options
Listed options exercisable at AUD 0.03; expiring 31 March 2022 -
Atmavireshwar Sthapak
Listed options exercisable at AUD 0.03; expiring 01 July 2022 - Stephen
Gethin
Grant date
Number of
options
2021
$
2020
$
3 Dec 2020
5,000,000
3 Dec 2020
4,000,000
9,000,000
-
-
-
-
-
–
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
21.
SHARE-BASED PAYMENTS
There were no shares issued as a result of the exercise of any options during the year (2021: NIL).
ACCOUNTING POLICY NOTE
Director/Employee Options
The fair value of options granted by the Company to directors and employees is recognised as an employee benefit expense with a corresponding
increase in equity. The fair value is measured as at grant date and is expensed in full as at their date of issue where they are 100% vested on grant
and otherwise over their vesting period (where applicable). The fair value at grant date is determined using the Black-Scholes valuation model that
takes into account the exercise price, the term of the option, the vesting criteria, the unlisted nature of the option, the share price at grant date and
the expected price volatility of the underlying shares in the Company, and the risk-free interest rate for the term of the option. Upon the exercise of
options, the balance of the reserve relating to those options is transferred to share capital.
22.
SEGMENT INFORMATION
The Board has considered the activities/operations and geographical perspective within the operating results and have determined that the
Consolidated Entity operates in the resource exploration, evaluation and development sector within geographic segments - Australia, Saudi Arabia
and Oman.
2021
Total segment revenues
Total segment loss/(profit)before tax
Total segment assets
Total segment liabilities
2020
Total segment revenues
Total segment loss before tax
Total segment assets
Total segment liabilities
(a) Reconciliation of segment information
(i) Total Segment Assets
Total Assets as per Statement of Financial Position
(ii) Total Segment Revenues
Total Revenue as per Statement of Profit or Loss
and Other Comprehensive Income
(iii) Total Segment profit/(loss) before tax
Total Consolidated Entity profit/(loss) before tax
ACCOUNTING POLICY NOTE
Operating Segments
Australia
$
11,116
(1,112,876)
3,527,013
(552,903)
414,335
3,465,354
2,686,298
(490,495)
Oman
$
663
(542,903)
19,794,225
(1,260,547)
228,517
(951,327)
21,148,196
(492,222)
Saudi Arabia
$
-
(14,692)
-
-
-
(2,528,993)
-
-
2021
$
Total
$
11,779
(1,670,471)
23,321,238
(1,813,450)
642,852
(14,966)
23,834,494
(982,717)
2020
$
23,321,238
23,834,494
11,779
642,852
(1,670,471)
(14,966)
The Consolidated Entity has applied AASB 8: Operating Segments which requires that segment information be presented on the same basis as that
used for internal reporting purposes. An operating segment is a component of the Consolidated Entity that engages in business activities from which
it may earn revenues and incur expenses. An operating segment's operating results are reviewed regularly by management to make decisions on
allocation of resources to the relevant segments and assess performance. Unallocated items comprise mainly share investments, corporate and
office expenses.
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ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
23.
FINANCIAL RISK MANAGEMENT
The Consolidated Entity's financial instruments mainly consist of deposits with banks, accounts receivable and payable, and investments. The
principal activity of the Consolidated Entity is resource exploration, evaluation and development. The main risks arising from the Consolidated Entity's
financial instruments are market (which includes price, interest rate and foreign exchange risks), credit and liquidity risks. Risk management is carried
out by the Board of Directors. The Board evaluates, monitors and manages the Consolidated Entity's financial risk in close co-operation with its
operating units. The financial receivables and payables of the Consolidated Entity in the table below are due or payable within 30 days. The financial
investments are held for trading and are realised at the discretion of the Board.
The Consolidated Entity holds the following financial instruments:
Financial assets
Cash and cash equivalents
Financial instruments (term deposits)
Trade and other receivables
Financial asset
Financial liabilities at amortised cost
Trade and other payables
Financial liabilities
Net Financial Assets
(a) Market Risk
2021
$
4,241,815
1,039,829
38,566
444,427
5,764,637
(988,405)
(723,128)
(1,711,533)
4,053,104
2020
$
7,674,616
8,661
30,633
422,342
8,136,252
(267,734)
(684,411)
(952,145)
7,184,107
(i) Price risk
The Consolidated Entity is exposed to equity securities price risk. This arises from investments held by the Consolidated Entity and classified in
the statement of financial position at fair value through profit or loss. The Consolidated Entity is not directly exposed to commodity price risk. The
value of a financial instrument will fluctuate as a result of changes in market prices, whether those changes are caused by factors specific to the
individual instrument or its issuer or factors affecting all instruments in the market. The Consolidated Entity does not manage this risk through
entering into derivative contracts, futures, options or swaps. Market risk is minimised through ensuring that investment activities are undertaken
in accordance with Board established mandate limits and investment strategies.
(ii) interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Consolidated Entity's
exposure to market risk for changes in interest rates relate primarily to investments held in interest bearing instruments and its loan from third
parties. The average interest rate applicable to funds held on deposit during the year was 0.25 % (2020: 1.15%).
Cash at bank
Term deposits
Term deposits more than 90 days
Loan with unrelated third parties
2021
$
4,136,880
104,393
1,039,829
(723,128)
4,557,974
2020
$
7,467,091
207,286
8,661
(684,411)
6,998,627
The Consolidated Entity has borrowings subject to interest rate risk. The possible impact on profit or loss or total equity on this exposure is
displayed below:
Loan with unrelated third party
Change in profit
Increase by 1%
Decrease by 1%
Change in equity
Increase by 1%
Decrease by 1%
2021
$
2020
$
(7,231)
7,231
(6,844)
6,844
(7,231)
7,231
(6,844)
6,844
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
2021
$
2020
$
127,254
(127,254)
230,238
(230,238)
127,254
(127,254)
230,238
(230,238)
Revenue
Change in profit
Increase by 3%
Decrease by 3%
Change in equity
Increase by 3%
Decrease by 3%
(iii) Foreign exchange risk
The Consolidated Entity is exposed to foreign currency risk in cash held in Omani Riyals (OMR) by the Consolidated Entity's foreign controlled
entity, foreign resource project investment commitments and exploration and evaluation expenditure on foreign exploration and evaluation. The
primary currency giving rise to this risk is Omani Riyals (OMR). The Consolidated Entity has not entered into any forward exchange contracts as
at reporting date and is currently fully exposed to foreign exchange risk. The Consolidated Entity's exposure to foreign currency risk at reporting
date was as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Non-current financial liabilities
Cash and cash equivalents
2021
OMR
817,141
124,385
(245,804)
(206,376)
489,346
2021
US $
71
71
2020
OMR
1,621,512
209,152
(44,068)
(201,753)
1,584,843
2020
US $
-
-
The Consolidated Entity's exposure to foreign exchange risk is mitigated by having comparable asset and liability balances in OMR and US
dollars. Therefore, a sensitivity analysis has not been performed. The Consolidated Entity enters into forward exchange contracts with its
Australian bank from time to time to hedge against foreign exchange risk.
(b) Credit risk
Credit risk refers to the risk that a counterparty under a financial instrument will default (in whole or in part) on its contractual obligations resulting in
financial loss to the Consolidated Entity. Concentrations of credit risk are minimised primarily by undertaking appropriate due diligence on potential
investments, carrying out all market transactions through approved brokers, settling non-market transactions with the involvement of suitably qualified
legal and accounting personnel (both internal and external), and obtaining sufficient collateral or other security (where appropriate) as a means of
mitigating the risk of financial loss from defaults. This financial year there was no necessity to obtain collateral.
The credit quality of the financial assets are neither past due nor impaired and can be assessed by reference to external credit ratings (if available
with Standard & Poor's) or to historical information about counterparty default rates. The maximum exposure to credit risk at reporting date is the
carrying amount of the financial assets as summarised below:
Cash and cash equivalents
BB-
No external credit rating available
Trade and other receivables (due within 30 days)
No external credit rating available
2021
$
4,241,273
542
4,241,815
38,566
38,566
2020
$
7,674,377
239
7,674,616
30,633
30,633
The Consolidated Entity measures credit risk on a fair value basis. The carrying amount of financial assets recorded in the financial statements, net
of any provision for losses, represents the Consolidated Entity’s maximum exposure to credit risk. All receivables noted above are due within 30 days.
None of the above receivables are past due.
ALARA RESOURCES LIMITED
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
(c) Liquidity risk
Liquidity risk is the risk that the Consolidated Entity will encounter difficulty in meeting obligations associated with financial liabilities. There is sufficient
cash and cash equivalents and the non-cash investments can be realised to meet accounts payable arising in the normal course of business. The
financial liabilities maturity obligation is disclosed below:
2021
Financial assets
Cash and cash equivalents
Financial instruments (Term deposits)
Interest free loan to Alara Resources LLC
Trade and other receivables
Financial liabilities
Trade and other payables
Other financial liabilities
Net inflow/(outflow)
2020
Financial assets
Cash and cash equivalents
Financial instruments (Term deposits)
Interest free loan to Alara Resources LLC
Trade and other receivables
Financial liabilities
Trade and other payables
Other financial liabilities
Net inflow/(outflow)
Less than
6 months
$
4,241,815
-
-
38,566
4,280,381
(988,405)
(16,087)
(1,004,492)
3,275,889
Less than
6 months
$
7,674,616
-
30,633
7,705,249
(267,734)
-
(267,734)
7,437,515
6-12
months
$
-
1,030,168
-
-
1,030,168
-
(5,322)
(5,322)
1,024,846
6-12
months
$
-
8,661
-
-
8,661
-
-
-
8,661
1-5
years
$
-
9,661
444,427
-
454,088
Total
$
4,241,815
1,039,829
444,427
38,566
5,764,637
-
(701,719)
(701,719)
(247,631)
(988,405)
(723,128)
(1,711,533)
4,053,104
1-5
years
$
-
-
422,342
-
422,342
Total
$
7,674,616
8,661
422,342
30,633
8,136,252
-
(684,411)
(684,411)
(262,069)
(267,734)
(684,411)
(952,145)
7,184,107
(d) Fair Value of Financial Assets and Liabilities
The carrying amount of financial instruments recorded in the financial statements represents their fair value determined in accordance with the
accounting policies disclosed in Note 1. The aggregate fair value and carrying amount of financial assets at reporting date are set out in Notes 7,8
and 10. The financial liabilities at reporting date are set out in Note 15 and 18.
(e) Fair value measurements
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The
Consolidated Entity’s financial assets and liabilities approximate their fair values.
ACCOUNTING POLICY NOTE
Financial Instruments
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial
assets, this is equivalent to the date that the entity commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through profit
or loss’, in which case transaction costs are expensed to profit or loss immediately. Subsequent to initial recognition, these instruments are measured
as set out below:
• Financial assets at fair value through profit or loss - A financial asset is classified in this category if acquired principally for the purpose of
selling in the short term or if so designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial
Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the profit or loss in
the period in which they arise.
• Loans and receivables - Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are stated at amortised cost using the effective interest rate method.
• Financial liabilities - Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and
amortisation.
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Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
Fair Value Estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value
of financial instruments traded in active markets (such as publicly traded derivatives, and trading and available-for-sale securities) is based on quoted
market prices at the reporting date. The quoted market price used for financial assets held by the Consolidated Entity is the current bid price; the
appropriate quoted market price for financial liabilities is the current ask price. The fair value of financial instruments that are not traded in an active
market (for example over-the-counter derivatives) is determined using valuation techniques, including but not limited to recent arm’s length
transactions, reference to similar instruments and option pricing models. The Consolidated Entity may use a variety of methods and makes
assumptions that are based on market conditions existing at each reporting date. Other techniques, such as estimated discounted cash flows, are
used to determine fair value for other financial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate their fair values. The fair value
of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is
available to the Consolidated Entity for similar financial instruments. The Consolidated Entity’s investment portfolio (comprising listed and unlisted
securities) is accounted for as a “financial assets at fair value through profit or loss” and is carried at fair value based on the quoted last bid prices at
reporting date.
24. COMMITMENTS
(a) Lease Commitments
Non-cancellable operating lease commitments:
Within 1 year
1-5 years
After 5 years
Total
2021
$
14,045
-
-
14,045
2020
$
8,376
-
-
8,376
The Group leases office space under a non-cancellable operating lease. On renewal, the terms of the lease are renegotiated. The Group does not
have an option to purchase the leased asset at the expiry of the lease period.
25.
CONTROLLED ENTITIES
Investment in Controlled Entities
Alara Resources Limited (AUQ)
Alara Peru Operations Pty Ltd (APO)
Controlled
entity
Parent
AUQ
Principal Activity
Exploration
Inactive
Country of
Incorporation
Australia
Australia
Date of
Incorporation
6-Dec-06
9-Mar-07
Alara Saudi Operations Pty Ltd (ASO)
AUQ
Management
Australia
4-Aug-10
Saudi Investments Pty Limited (SIV)
Alara Oman Operations Pty Limited (AOO)
Alara Kingdom Operations Pty Limited (AKO)
Alara Saudi Holdings Pty Limited (ASH)
Al Hadeetha Resources LLC
Alara Resource Ghana Limited
Alara Peru S.A.C
Alara Operations LLC
Sita Mining Company LLC
Khnaiguiyah Mining Company LLC
AUQ
AUQ
AUQ
AUQ
AOO
AUQ
APO
AOO
ASO
AKO
Development
Management
Management
Inactive
Exploration /
Development
Inactive
Inactive
Administration
Inactive
Inactive
Australia
Australia
Australia
Australia
14-Feb-11
28-Jun-10
5-Sep-11
5-Jun-13
Oman
6-Feb-07
8-Dec-09
1-Mar-07
01-Feb-20
Ghana
Peru
Oman
Saudi Arabia
Saudi Arabia
26.
JOINTLY CONTROLLED ENTITIES & INVESTMENTS IN ASSOCIATES
Jun-21
100%
100%
100%
100%
100%
100%
100%
51%
100%
100%
100%
Jun-20
100%
100%
100%
100%
100%
100%
100%
51%
100%
100%
100%
Investment in Jointly Controlled Entities
Daris Resources LLC
Alara Resources LLC
Controlled
entity
AOO
AOO
Principal Activity
Exploration
Mining Services
Country of
Incorporation
Oman
Oman
Date of
Incorporation
1-Dec-10
2-Oct-10
Jun-21
50%
35%
Jun-20
50%
35%
27.
RELATED PARTY TRANSACTIONS
(a) Controlled and Jointly Controlled Entities
Details of the interest in controlled entities and jointly controlled entities are set out in Notes 25 and 26.
(b) Transactions with other related parties
The following transactions occurred with related parties during the year ending 30 June 2021:
ALARA RESOURCES LIMITED
72
Page 39 of 48
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
(i) Director loan agreement
There was no outstanding directors’ loan during the year.
TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
Key Management of the Consolidated Entity are each Director and Company Executive being a company secretary or senior managers with authority
and responsibility for planning, directing and controlling the major activities of the Company or Consolidated entity. Details of key management
personnel individual remuneration are disclosed in the remuneration report section of the directors’ report.
Key Management Personnel remuneration includes the following expenses:
Short term employee benefits:
Remuneration including bonuses and allowances
Total short term employee benefits
Long term benefits
Total other long-term benefits
Post-employment benefits:
Defined benefit pension plans
Defined contribution pension plans
Total post-employment benefits
Termination benefits
Share-based payments
Total remuneration
2021
$
1,108,572
1,108,572
-
-
-
2,314
2,314
-
-
2020
$
1,076,295
1,076,295
59,105
59,105
-
-
-
-
-
1,110,886
1,135,400
28.
CONTINGENT ASSETS AND LIABILITIES
Contingent assets and liabilities exist in relation to certain exploration and evaluation of the Consolidated Entity subject to the continued development
and advancement of the same, as described below.
(a)
(b)
(c)
(d)
(e)
Shareholders’ Agreement – Daris Resources LLC – Daris Copper-Gold Project (Oman) – On 28 August 2010, Alara Oman Operations
Pty Limited, a wholly owned subsidiary of the Company, entered into a shareholders’ agreement with Daris Copper Project concession
holder, Al Tamman Trading Establishment LLC (ATTE). Under the agreement Alara may invest up to USD 7m in a joint venture company
Daris Resources LLC (DRL) to gain up to a 70% shareholding. Daris Resources LLC (DRL) was incorporated in Oman on 1 December 2010
(Alara 50%: ATTE 50%). To the extent that further funding is required, Alara is entitled to advance up to USD 4m to DRL as a loan (on
commercial terms and repayable as a priority before distribution of dividends) – convertible into equity in DRL to take Alara’s interest to 70%.
DRL has exclusive rights (to be further formalised under a management agreement with ATTE) to manage, operate and commercially exploit
the concession. DRL is governed by a 6-member board of directors with 3 nominees (including the Chairman) from Alara and 3 from ATTE.
Shareholders’ Agreement – Alara Resources LLC (Oman) – On 8 August 2010, Alara Oman Operations Pty Limited (AOOPL), a wholly
owned subsidiary of the Company, entered a shareholders’ agreement with Sur United International Co. LLC (Sur) under which a joint
venture company Alara Resources LLC (ARL) was established to identify and exploit mineral exploration opportunities in Oman. Alara
contributed 100% of ARL’s initial capital of 150,000 Omani Rials (RO) (then equivalent to approx. AUD 425,000) for a 70% interest in ARL,
with Sur then holding the balance of 30%. Alara transferred a 35% shareholding in ARL to South-West Pinnacle Exploration Ltd in 2018. In
January 2019 Sur transferred its 30% shareholding in ARL to Al Tasnim Infrastructure Services LLC. ARL now conducts the business of
drilling and exploration services.
Shareholders’ Agreement – Al Hadeetha Copper-Gold Project (Oman) – On 23 November 2011, Alara Oman Operations Pty Limited
(AOOPL), a wholly owned subsidiary of the Company, entered into a shareholders’ agreement with Al Hadeetha Investments LLC (AHI) to
regulate the two companies’ investment in Al Hadeetha Resources LLC (AHRL). On 18 November 2018 AOOPL sold a 19% interest in AHR
to Al Tasnim Infrastructure Services LLC (Al Tasnim). AHRL is governed by a 4-member Board of Directors, with two Directors appointed by
Alara (including the Chairman) and one appointed by AHI (provided it continues to own at least 21% of the AHRL shares) and one appointed
by Al Tasnim (provided that it continues to own at least 19% of the AHRL shares).
Directors’ Deeds – The Company has entered into deeds of indemnity with each of its Directors indemnifying them against liability incurred
in discharging their duties as directors/officers of the Consolidated Entity. As at the reporting date, no claims have been made under any
such indemnities and accordingly, it is not possible to quantify the potential financial obligation of the Consolidated Entity under these
indemnities.
Bayan Mining LLC JV Agreement – On 16 July 2015 Saudi Investments Pty Ltd (a wholly owned subsidiary of the Company) entered into
a JV agreement with Bayan Mining LLC. 40,000,000 shares are to be issued upon satisfaction of all of the conditions precedent, which
includes the granting of the Khnaiguiyah mining licence to Bayan or the JV.
(f) Loan to unrelated party (AHI) (Oman) – On 26 October 2017 Al Hadeetha Investments LLC (AHI) gave a bank guarantee of OMR 30,000
to the Omani Ministry of the Environment as security for performance of the environmental obligations of AHRL in connection with the Al
Wash-hi Majaza Project mining licence. AHI was required to deposit the amount of the face value of the bank guarantee with its bank as
ALARA RESOURCES LIMITED
Page 40 of 48
73
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
for the year ended 30 June 2021
security in the event that the bank guarantee is called upon. Pursuant to an agreement between the Consolidated Entity and AHI, the
Consolidated Entity paid OMR 20,000 to AHI on or about that date, representing an approximation of its share of liability to contribute to the
costs of remediating any unmet environmental obligations of AHR. This amount will be returned to the Consolidated Entity in the event that
AHRL performs its environmental obligations in relation to that mining licence.
29.
SUBSEQUENT EVENTS
Events occurring after the balance date are set out as below:
Al Wash-hi Majaza Project (“Project”) development
The Company continue to develop the Project after the end of the reporting period, as detailed in the section of this report titled “Review of Operations”.
[The remainder of this page is intentionally blank]
ALARA RESOURCES LIMITED
Page 41 of 48
74
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Notes to the Consolidated Financial Statement
Directors’ Declaration
for the year ended 30 June 2021
The Directors of the Company declare that:
1.
2.
3.
4.
5.
The Financial Statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated
Statement of Financial Position, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows and
accompanying notes as set out on pages 19 to 42, are in accordance with the Corporations Act 2001 and:
(a)
(b)
Comply with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations
Regulations 2001; and
Give a true and fair view of the Consolidated Entity’s financial position as at 30 June 2021 and of its performance for the year ended
on that date;
In the Directors’ opinion 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 Remuneration Report disclosures set out (within the Directors’ Report) as the audited Remuneration Report comply with section 300A
of the Corporations Act 2001;
The Company has included in the notes to the Financial Statements an explicit and unreserved statement of compliance with the International
Financial Reporting Standards.
The Directors have received the declarations required to be made to the Directors by the Managing Director (the person who performs the
chief executive officer function) and Chief Financial Officer in accordance with section 295A of the Corporations Act 2001 for the financial
year ended 30 June 2021.
This declaration is made in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001.
Atmavireshwar Sthapak
Managing Director
29 September 2021
ALARA RESOURCES LIMITED
Page 42 of 48
75
2021 FULL-YEAR REPORT
Alara Resources Annual Report 2021
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ALARA RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Alara Resources Limited (“the Company”) and its controlled entities
(“the Group”) which comprises the consolidated statement of financial position as at 30 June 2021, 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 on that date and
notes to the financial statements, including a summary of significant accounting policies and the directors’
declaration of the Company.
In our opinion the financial report of the Group is in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial
performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under these
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of this report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and
Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (Including Independence
Standards) (the “Code”) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given
to the directors of the Company, would be in the same terms if given to the directors as at the time of this
auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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.
76
Alara Resources Annual Report 2021
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ALARA RESOURCES LIMITED (continued)
Key Audit Matter – Cash and Cash Equivalents How our Audit Addressed the Key Audit Matter
The Group’s cash and cash equivalents make up
80% of total current assets by value and are
considered to be the key driver of the Group’s
operations and exploration activities.
Our procedures over the existence of the Group’s
cash and cash equivalents included but were not
limited to:
• Testing a sample of cash payments to
We do not consider cash and cash equivalents to
be at a high risk of significant misstatement, or
to be subject to a significant level of judgement.
determine they were bona fide payments,
were properly authorised and recorded in the
general ledger;
However due to the materiality in the context of
the financial statements as a whole, this is
considered to be an area which had an effect on
our overall strategy and allocation of resources
in planning and completing our audit.
Key Audit Matter – Exploration and Evaluation
Expenditure and Mine Properties and
Development Assets
The Group incurred significant expenditure on
exploration and evaluation and mine properties
and development assets during the year.
We do not consider exploration and evaluation
and mine properties and development assets to
be at a high risk of significant misstatement, or
to be subject to a significant level of judgement.
However due to the materiality in the context of
the financial statements as a whole, this is
considered to be an area which had an effect on
our overall strategy and allocation of resources
in planning and completing our audit.
• Checking the appropriateness of foreign
exchange rates used for cash and cash
equivalents denominated in foreign currencies;
and
• Agreeing significant cash holdings to
independent third-party confirmations.
We have also assessed the appropriateness of the
disclosures included in the financial report.
How our Audit Addressed the Key Audit Matter
Our procedures in assessing exploration and
evaluation and mine properties and development
assets included but were not limited to the
following:
• We assessed the reasonableness of capitalising
exploration and evaluation expenditure in
accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources.
• We considered whether there were any
indicators of impairment;
• We tested a sample of expenditure to
supporting documentation to ensure they were
bona fide payments; and
• We documented and assessed the processes
and controls in place to record expenditure.
We have also assessed the appropriateness of the
disclosures included in the financial report.
77
Alara Resources Annual Report 2021
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ALARA RESOURCES LIMITED (continued)
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021, 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 there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Directors’ Responsibility 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 the 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 preparing the financial report, the directors are responsible for assessing the ability of the Group 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 Group or cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibility for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: www.auasb.gov.au/Home.aspx.
We communicate with the directors regarding, amongst 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.
78
Alara Resources Annual Report 2021
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ALARA RESOURCES LIMITED (continued)
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 those 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 communications.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2021.
In our opinion the remuneration report of Alara Resources Limited for the year ended 30 June 2021 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Rothsay Auditing
Dated 29 September 2021
Daniel Dalla
Partner
79
Alara Resources Annual Report 2021
JORC Competent Persons Statements
JORC Competent Persons Statements
The information in this announcement that relates to the feasibility study of the Al Hadeetha copper-gold
project is based on information compiled by Mr Shanker Madan, who is a Member of the Australasian
Institute of Mining and Metallurgy, and consultant to Alara Resources. Mr Madan has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity
he is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Madan
consents to the inclusion in the announcement of the matters based on his information in the form and
context in which it appears.
The information in this announcement that relates to Ore Reserve of the Al Hadeetha Project was compiled
by Mr Harry Warries, who is a Fellow of the Australasian Institute of Mining and Metallurgy, and a consultant
to Alara Resources. Mr Warries has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.’ In assessing the appropriateness of the Ore Reserve estimate, Mr Warries
has relied on various reports, from both internal and external sources, in either draft or final version, which
form part of or contribute to the Al Hadeetha Project Feasibility Study. These reports are understood to
be compiled by persons considered by Alara to be competent in the field on which they have reported.
Mr Warries consents to the inclusion in the report of the information in the form and context in which it
appears.
The information in this announcement that relates to JORC Resources of the Daris Copper Gold Project
and the Al Hadeetha Copper-Gold Project (Oman) are based on, and fairly represents, information and
supporting documentation prepared by Mr Ravi Sharma, who is a Chartered Member of The Australasian
Institute of Mining and Metallurgy, Registered Member of The Society for Mining, Metallurgy and
Exploration. Mr Sharma was a principal consultant to Alara Resources and has sufficient experience which
is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he
is undertaking to qualify as a Competent Person as defined in the JORC Code, 2012 edition. Mr Sharma
approves and consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
Forward-Looking Statements
This report contains “forward-looking statements” and “forward-looking information”, including statements
and forecasts which include without limitation, expectations regarding future performance, costs,
production levels or rates, mineral reserves and resources, the financial position of Alara, industry growth
and other trend projections. Often, but not always, forward-looking information can be identified by the
use of words such as “plans”, “expects”, “is expected”, “is expecting”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be
taken, occur or be achieved. Such information is based on assumptions and judgements of management
regarding future events and results. The purpose of forward-looking information is to provide the audience
with information about management’s expectations and plans. Readers are cautioned that forward-looking
information involves known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Alara and/or its subsidiaries to be materially different from any
future results, performance or achievements expressed or implied by the forward-looking information.
Such factors include, among others, changes in market conditions, future prices of gold and silver,
the actual results of current production, development and/or exploration activities, changes in project
parameters as plans continue to be refined, variations in grade or recovery rates, plant and/or equipment
failure and the possibility of cost overruns.
Forward-looking information and statements are based on the reasonable assumptions, estimates,
analysis and opinions of management made in light of its experience and its perception of trends,
current conditions and expected developments, as well as other factors that management believes to
be relevant and reasonable in the circumstances at the date such statements are made, but which may
prove to be incorrect. Alara believes that the assumptions and expectations reflected in such forward-
looking statements and information are reasonable. Readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which may have been used. Alara does not undertake to update
any forward-looking information or statements, except in accordance with applicable securities laws.
80
Alara Resources Annual Report 2021 Securities Information
Securities Information
Securities Information
As of 25 October 2021
Securities Information
As of 25 October 2021
As of 25 October 2021
As of 25 October 2021
Issued Securities
Issued Securities
Issued Securities
Issued Securities
Listed options
Listed options
Listed options
Unlisted options
Unlisted options
Unlisted options
Ordinary Fully
Ordinary Fully
paid shares
Ordinary Fully
paid shares
quoted on ASX
paid shares
quoted on ASX
705,429,239
quoted on ASX
705,429,239
705,429,239
705,429,239
705,429,239
Total
Total
-
-
-
-
-
9,000,000
9,000,000
9,000,000
9,000,000
9,000,000
-
9,000,000
Securities information
Total
Total
Total
714,429,239
714,429,239
714,429,239
Total
705,429,239
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is
exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is
4 million options were issued to Chairman Mr. Stephen Gethin on 3 December 2020. Each option is exerciseable
exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD
0.03 per share. The options expire on 1 July 2022.
exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD
0.03 per share. The options expire on 1 July 2022.
over one fully paid, ordinary, share in the Company and has an exercise price of AUD 0.03 per share. The options
0.03 per share. The options expire on 1 July 2022.
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020.
expire on 1 July 2022.
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020.
Each option is exerciseable over one fully paid, ordinary, share in the Company and has an exercise
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020. Each option
5 million options were issued to Managing Director Mr. Atmavireshwar Sthapak on 3 December 2020.
Each option is exerciseable over one fully paid, ordinary, share in the Company and has an exercise
price of AUD 0.03 per share. The options vest upon the Company achieving the first production of
is exerciseable over one fully paid, ordinary, share in the Company and has an exercise price of AUD 0.03 per share.
Each option is exerciseable over one fully paid, ordinary, share in the Company and has an exercise
price of AUD 0.03 per share. The options vest upon the Company achieving the first production of
saleable copper concentrate, provided this occurs by 31 March 2022. If the Company:
price of AUD 0.03 per share. The options vest upon the Company achieving the first production of
The options vest upon the Company achieving the first production of saleable copper concentrate, provided this
saleable copper concentrate, provided this occurs by 31 March 2022. If the Company:
• does not achieve the first production of saleable copper concentrate, as determined by the
saleable copper concentrate, provided this occurs by 31 March 2022. If the Company:
occurs by 31 March 2022. If the Company:
• does not achieve the first production of saleable copper concentrate, as determined by the
Board, acting reasonably, by that date the options will not become exerciseable; or
• does not achieve the first production of saleable copper concentrate, as determined by the
does not achieve the first production of saleable copper concentrate, as determined by the Board, acting
•
Board, acting reasonably, by that date the options will not become exerciseable; or
• achieves the first production of saleable copper concentrate by that date but the Managing
Board, acting reasonably, by that date the options will not become exerciseable; or
reasonably, by that date the options will not become exerciseable; or
• achieves the first production of saleable copper concentrate by that date but the Managing
• achieves the first production of saleable copper concentrate by that date but the Managing
achieves the first production of saleable copper concentrate by that date but the Managing Director does
•
Director does not exercise any given option within one (1) year after the date on which that first
not exercise any given option within one (1) year after the date on which that first production occurs, any
production occurs, any options which have not been exercised will lapse at the end of the last
options which have not been exercised will lapse at the end of the last day of that year.
day of that year.
Distribution of Ordinary Fully Paid Shares
Distribution of Ordinary Fully Paid Shares
Distribution of Ordinary Fully Paid Shares
Distribution of Ordinary Fully Paid Shares
Director does not exercise any given option within one (1) year after the date on which that first
Director does not exercise any given option within one (1) year after the date on which that first
production occurs, any options which have not been exercised will lapse at the end of the last
production occurs, any options which have not been exercised will lapse at the end of the last
day of that year.
day of that year.
Spread of Holdings
Spread of Holdings
Number of Holders
Number of Holders
Number of Units
Number of Units
Number of Holders
861
261
123
861
861
261
261
123
123
329
329
252
252
1,826
1,826
329
252
Number of Units
602,791
286,053
286,053
286,053
602,791
602,791
1,030,444
1,030,444
13,357,467
13,357,467
690,152,484
690,152,484
705,429,239
705,429,239
1,030,444
13,357,467
690,152,484
% of Total Issued
% of Total Issued
Capital
% of Total Issued
Capital
Capital
0.041%
0.085%
0.041%
0.041%
0.085%
0.085%
0.146%
0.146%
1.894%
1.894%
97.834%
97.834%
100%
100%
0.146%
1.894%
97.834%
1,826
705,429,239
100%
Number of Holders
Number of Holders
Number of Units
Number of Units
Number of Units
Number of Holders
1,378
1,378
1,378
448
448
1,826
1,826
448
% of Total Issued
% of Total Issued
Capital
% of Total Issued
Capital
Capital
0.606
0.606
0.606
99.394
99.394
100%
100%
99.394
4,271,545
4,271,545
4,271,545
701,157,694
701,157,694
705,429,239
705,429,239
701,157,694
Total
1,826
705,429,239
100%
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[The remainder of this page is intentionally blank]
[The remainder of this page is intentionally blank]
[The remainder of this page is intentionally blank]
81
Spread of Holdings
1 - 1,000
1 - 1,000
1 - 1,000
1,001 - 5,000
1,001 - 5,000
5,001 - 10,000
5,001 - 10,000
10,001 - 100,000
10,001 - 100,000
100,001 - and over
100,001 - and over
10,001 - 100,000
5,001 - 10,000
1,001 - 5,000
100,001 - and over
Total
Total
Total
Unmarketable parcels
Unmarketable parcels
Unmarketable parcels
Unmarketable parcels
Less than market parcel
Less than market parcel
Less than market parcel
1
1
1
-
29,412
29,412
-
Total
Total
29,412
29,411
29,411
Over
Over
-
-
29,411
-
-
Over
Alara Resources Annual Report 2021
Securities Information
Top 20 Ordinary Fully Paid Shareholders
Top 20 Ordinary Fully Paid Shareholders
Top 20 Ordinary Fully Paid Shareholders
Rank
Rank
Shareholder
Shareholder
Shares Held
Shares Held
% Issued
% Issued
Capital
Capital
99,650,067
99,650,067
64,142,050
64,142,050
41,824,437
41,824,437
38,637,601
38,637,601
37,745,930
37,745,930
31,500,000
31,500,000
31,012,217
31,012,217
24,199,437
24,199,437
20,600,000
20,600,000
20,575,550
20,575,550
17,456,189
17,456,189
16,575,689
16,575,689
12,790,543
12,790,543
11,781,549
11,781,549
11,347,387
11,347,387
10,422,687
10,422,687
9,758,544
9,758,544
9,422,858
9,422,858
8,664,286
8,664,286
6,055,725
6,055,725
14.126
14.126
9.093
9.093
5.929
5.929
5.477
5.477
5.351
5.351
4.465
4.465
4.396
4.396
3.430
3.430
2.920
2.920
2.917
2.917
2.475
2.475
2.350
2.350
1.813
1.813
1.670
1.670
1.609
1.609
1.477
1.477
1.383
1.383
1.336
1.336
1.228
1.228
0.858
0.858
524,162,746
524,162,746
70.881%
70.881%
Shares Held
Shares Held
% Issued
% Issued
Capital
Capital
99,650,067
99,650,067
64,142,050
64,142,050
41,824,437
41,824,437
38,637,601
38,637,601
37,745,930
37,745,930
282,000,085
282,000,085
14.126
14.126
9.093
9.093
5.929
5.929
5.477
5.477
5.351
5.351
39.976%
39.976%
Al Tasnim Infrastructure LLC
Al Tasnim Infrastructure LLC
Citicorp Nominees Pty Limited
Citicorp Nominees Pty Limited
1.
1.
2. Mr Vikas Malu
2. Mr Vikas Malu
3. Ms Meng Meng
3. Ms Meng Meng
4.
4.
5. Mr Vikas Jain
5. Mr Vikas Jain
6.
6.
7. Metal Corners Holdings Co
7. Metal Corners Holdings Co
8. Mr Piyush Jain
8. Mr Piyush Jain
9. Mr Jay Hughes + Mrs Linda Hughes
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