ANNUAL
REPORT
2020
DIRECTORS
James Brown – Managing Director
Allan Buckler – Non-Executive Director
Dan O’Neill – Non-Executive Director
Beng Teik Kuan – Non-Executive Director
Xiaoyu Dai – Non-Executive Director
COMPANY SECRETARY
John Lewis
CHIEF EXECUTIVE OFFICER
Alex Cheeseman
REGISTERED OFFICE
Level 9, 863 Hay Street
Perth WA 6000
Email: info@alturaltd.com
Website: alturamining.com
ACN
093 391 774
AUDITORS
PKF Perth
Level 5, 35 Havelock Street
Perth West WA 6005
SHARE REGISTRY
Link Market Services Limited
Level 12, QV1 Building
250 St George’s Terrace
Perth WA 6000
AUSTRALIAN SECURITIES EXCHANGE
Code: AJM, AJMOB
CORPORATE
DIRECTORY
CONTENTS
1
2
Highlights
10
Resource Development
and Exploration
31
5
Message from the
Managing Director
13
Sustainability
34
7
Review of
Operations
16
Directors'
Report
35
Auditor's Independence
Declaration
Consolidated Statement of
Profit and Loss
Consolidated Statement of
Other Comprehensive Income
36
Consolidated
Balance Sheet
37
38
Consolidated Statement of
Changes in Equity
Consolidated Statement of
Cash Flows
39
Notes to the
Financial Statements
88
Directors'
Declaration
90
Independent
Auditor’s Report
98
Additional ASX
Information
102
Competent Persons
Statements
ANNUAL REPORT 2020 ALTURA
2
HIGHLIGHTS
MINING METRICS – FY2020
Total Material Mined
Ore Mined
Strip Ratio
2.62
Million bcm
1.67
Million wmt
3.5:1
PRODUCTION NUMBERS – FY2020
Ore Processed
1.42
Million wmt
Feed Grade
1.23
Per cent
Tonnes Concentrate Produced
181,263
wmt
ALTURA ANNUAL REPORT 2020 3
OPERATING CASH
COST – FY2020
TOTAL RECORDABLE
INJURY FREQUENCY
RATE (TRIFR)
ENVIRONMENTAL
COMPLIANCE
USD$358.25
/wmt (FOB/C1)
5.71
Trending down from 12.49
10O%
SALES
OFFTAKE AGREEMENTS
148,051
dmt sold and shipped
3
new agreements secured
REVENUE
$106.3
million AUD
STATE ROYALTIES
& NATIVE TITLE
PARTY PAYMENTS
$5.41m
AUD
ANNUAL REPORT 2020 ALTURA MESSAGE FROM
THE MANAGING
DIRECTOR
MESSAGE FROM THE
MANAGING DIRECTOR
5
DEAR FELLOW SHAREHOLDERS,
As you would all be aware certain events have
occurred since the end of the 2020 financial year
which have had a profound impact on our company.
This Annual Report was originally prepared and due
to be issued in October 2020 but the events that
occurred in late October 2020 meant Directors were
legally restricted from finalising and releasing the
document.
With the company back under control of the
Directors since 5 March 2021, we have undertaken
a number of retrospective compliance activities in
order to support our re-listing application with the
ASX. The auditing, sign-off and release of this report
is one of the compliance requirements. The content
of the report has, for the most part, been left to
reflect the Company’s position in the second half of
the 2020 calendar year.
I would like to thank our loyal shareholder base
for your ongoing support throughout this difficult
period. Your Directors are committed to working
towards delivering our shareholders long-term
value. As frustrating as the events of the past are,
they cannot be undone. We need to look forward,
the long-term outlook for lithium, as the world
continues to transition to a battery-supported
future, remains bright.
I would like to highlight and praise the efforts of the
entire Altura team, who worked tirelessly to ensure
the ongoing operational success of our project
under such challenging conditions. A number of
personal concessions were made by all Altura staff
during the uncertain times as we all tried to keep our
business in a sound fiscal and operating position.
Unfortunately, the actions of our debt holders
meant our recapitalisation plans were stifled.
(spodumene)
What remains undisputed, is that over the 2020
financial year, we successfully cemented Altura as
a reliable, low cost, high-quality producer of lithium
oxide
feedstock. The successful
transformation and growth of the operation was
underpinned by cash operating costs that were in
the lowest quartile of the published peer group of
global hard rock producers.
The level of production and sales across the first
full year of commercial production was extremely
pleasing. We produced just over 180,000 wet metric
tonnes, representing 80% of nameplate. To operate
consistently at those levels during such challenging
conditions was a testament to our entire team.
Sales to our diverse offtake customer base was
impressive, with almost 150,000 wet metric tonnes
shipped. The solid sales numbers and the continued
demand we received reflected the quality of our
product and the strength of our offtake partners in a
weak market environment.
The health, safety and wellbeing of Altura staff and
contractors was always critical to our business.
We were proud of our safety record and the
improvements made over the year. I was very proud
of our quick and effective response to deal with the
COVID-19 pandemic. We were quick to put in place a
clear and detailed action plan to ensure the safety of
our people. This resulted in little interruption to our
site activities and ensured there was no interruption
to operations.
The battery materials market and the electric vehicle
revolution continue to reinforce the long-term
fundamentals of our industry. Significant investment
is continuing into the upstream markets and we
believe that similar investment will flow through to
the material production sector in due course.
While the ultimate outcome has been frustrating,
we should all be proud of what was been achieved
operationally by this Company and our people. We
now look to the future and establishing what we all
believe will again be a great Australian company.
James Brown
Managing Director
ANNUAL REPORT 2020 ALTURA REVIEW OF
OPERATIONS
REVIEW OF
OPERATIONS
7
MINING
Mining operations were completed as planned
during the financial year, with 2.62 million bank
cubic metres of total material mined.
A total of 1.67 million wet metric tonnes (wmt) of
ore and 5.86 million wmt of waste was mined. The
mining strip ratio for the financial year was 3.5:1,
which was in line with the long-term mining plan.
To ensure material movements aligned with the
annual mining plan, a one-in-three nightshift
operation was introduced by the mining contractor.
Altura intends to continue this night shift arrangement
for the next 12 months to meet the budgeted waste
movement and ore feed requirements.
Continuous improvements around drill and blast
activities were implemented throughout the year,
focussed on achieving better fragmentation of the
ore. The outcome was increased productivity of the
mining fleet leading to reduced unit operating costs.
Altura finished the financial year with approximately
118,000t stockpiled on the run of mine pad and
approximately 22,000t of crushed stocks.
PRODUCTION
The processing plant ran at commercial production
levels for the entire financial year.
Quarterly production was consistent, ranging between
42,282 to and 47,181 wmt, resulting in a total of 181,263
wmt of lithium concentrate for the year.
Of the lithium concentrate produced, approximately
56% was coarse material and 44% fine material.
Recoveries averaged 59% for the financial year,
which was below forecast. The operations team has
completed a number of studies and identified a path
to further increase recoveries. These continuous
improvement works are ongoing.
Plant availability for the full year was 90% and
utilisation of available time 96%. Preventative
maintenance strategies continue to be evolved
through increased understanding and operation of
the assets, with focus on equipment and material
specification upgrades to improve asset reliability
and mean time between failure.
The site laboratory service provider produced
ongoing analysis to support geology, exploration
and plant operations throughout the year. A total of
37,374 samples were delivered and reported on, the
majority of which were for grade/plant operations
control. The laboratory contractor also performed
routine quality assurance/quality control activities
throughout the year.
The contracted logistics operator hauled 174,085
wmt of product from site to the Wedgefield storage
facility. During the year, the logistics Contractor
commenced haulage via triple road trains, delivering
efficiency and cost savings to the operation.
The operation experienced subtle quarter on quarter
operating cost variations, with average costs for the
year in line with expectations. Altura delivered an
average C1 unit cost of USD$358.25/wmt. C1 cost
excludes royalties, freight, corporate overheads and
financing costs.
The C1 cost places Altura as a globally cost-
competitive operation.
HEALTH AND SAFETY
The health and safety of Altura staff and contractors
is a primary concern for the Board and Management.
Altura was quick to enact a formal management plan
with the onset of the COVID-19 pandemic, providing
clear information for the workforce to follow and
ensure their safety. As such, Altura was able to
maintain operations throughout the pandemic
period with no interruptions to operations.
The Total Recordable Injury Frequency Rate (TRIFR)
continued to trend downward from 12.49 to 5.71.
While the trend is promising, safety is never taken
for granted and it continues to be front and centre
with our workforce. Ultimately, Altura takes a zero-
harm attitude to health and safety and continues to
strive for that outcome.
Altura has been proud to promote a holistic approach
to health and wellbeing through supporting both
ANNUAL REPORT 2020 ALTURA 8
Indian Ocean
Port Hedland
BHP Railway
Airport
35km
y
a
w
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s t a l H i g
a
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E 45/5137
E 45/5416
E 45/5280
M
arble B
ar R
o
a
d
E 45/5609
Wodgina
Access Road
E 45/2287
134km
E 45/5608
E 45/3488
E 45/2363
E 45/5348
PLS Lithium Mine
PLS Lithium Mine
E 45/4894
110km
E 45/2287
Altura Camp
Wodgina Lithium Mine
Wodgina Lithium Mine
P 45/3149
E 45/5480
E 45/2363
E 45/5347
Altura
Lithium Mine
M 45/1230, 1231, 1260
Legend
Altura Mining Tenement (Live)
Altura Exploration Tenement (Live)
Altura Exploration Tenement (Pending)
E 45/5700
T
o
N
e
w
m
a
n
B
H
P
R
a
i
l
w
a
y
F
M
G
R
a
i
l
w
a
y
LOCALITY
Port Hedland
WESTERN
AUSTRALIA
Kalgoorlie
Perth
Marble Bar
0
20km
mental and physical health initiatives throughout
the year. This has included deliberate activities
around R U OK? day, support to individual Movember
campaigns and participating as a Company in the
Perth City to Surf.
SALES AND MARKETING
Shipping and exports were scheduled at similar
rates to production output, with a total of 148,051 dry
metric tonnes (dmt) (157,594 wmt) loaded aboard 12
separate vessels from Berth 2 at Port Hedland, and
delivered to numerous Chinese ports.
Altura completed a record single shipment in
January 2020, delivering 24,500 wmt aboard the
Clipper Kamoshio to long-term offtake partner
Ganfeng.
Altura also completed a record sales and shipping
Quarter for June, with 60,950 wmt loaded across
four individual shipments. All load port and disport
weights and analysis results were measured/
analysed and reported by internationally accredited,
independent third parties.
Altura’s product averaged 5.9% Li2O across
all shipments during the year. Altura’s product
continues to gain market share due to its high-
quality and suitability for conversion into high-purity
lithium chemicals required to support the electric
vehicle revolution.
throughout
the year, with
Altura announced a number of changes to offtake
arrangements
the
introduction of established lithium hydroxide and
lithium carbonate producers Shandong Ruifu and
Guangdong Weihua Corporation
(owner/operator
of Zhiyuan Lithium) in 2019. Later in the year Altura
further announced an offtake agreement with
Hunan Yongshan Lithium Co., Ltd (owned by parent
company Ningbo Shanshan Co., Ltd), one of Altura’s
major Shareholders. In parallel, Altura terminated
its remaining offtake arrangement with Shaanxi J&R
Optimum Energy and reduced tonnage allocated to
Lionergy Limited. All offtake agreements are based
on minimum contracted tonnages and have pricing
formula linked to agreed indices and reference points.
Altura continues to invest heavily in its existing
relationships with all offtake partners. Importantly,
Altura continues to work with each offtake partner to
manage shipments and commercial matters during
a challenging time throughout the lithium industry.
Altura’s offtake partners have contracts and
commercial linkages to globally significant and
relevant companies which are leading the electric
vehicle revolution. Altura is well-placed to capitalise
on the forecast increasing demand of quality lithium
chemicals.
ALTURA ANNUAL REPORT 2020
Indian Ocean
Port Hedland
BHP Railway
Airport
E 45/5137
E 45/5416
35km
y
a
w
h
s t a l H i g
a
o
s t C
e
o r t h W
N
R
o
y
H
i
l
l
R
a
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l
w
a
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G
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N
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r
n
H
i
g
h
w
a
y
E 45/5280
M
arble B
ar R
o
a
d
E 45/5609
Wodgina
Access Road
E 45/2287
E 45/5608
E 45/3488
E 45/2363
134km
E 45/5348
PLS Lithium Mine
PLS Lithium Mine
E 45/4894
110km
E 45/2287
Altura Camp
Wodgina Lithium Mine
Wodgina Lithium Mine
P 45/3149
E 45/5480
E 45/2363
E 45/5347
Altura
Lithium Mine
M 45/1230, 1231, 1260
Legend
Altura Mining Tenement (Live)
Altura Exploration Tenement (Live)
Altura Exploration Tenement (Pending)
E 45/5700
T
o
N
e
w
m
a
n
B
H
P
R
a
i
l
w
a
y
F
M
G
R
a
i
l
w
a
y
LOCALITY
Port Hedland
WESTERN
AUSTRALIA
Kalgoorlie
Perth
Marble Bar
0
20km
RESOURCE
DEVELOPMENT
AND EXPLORATION
10
RESOURCE DEVELOPMENT
AND EXPLORATION
A revised Mineral Resource and Ore Reserve Estimate for the Pilgangoora Altura Lithium Project whilst being
prepared as a matter of routine business, was not released in 2020 due to the events initiated in late October
2020. This report therefore references the last released figures issued on 9 October 2019. Some commentary
on the Mineral Resource and Reserves has been provided where appropriate.
MINERAL RESOURCE ESTIMATE
(0.30% Li2O CUT-OFF GRADE) – 30 JUNE 2019
JORC category
Measured
Indicated
Measured & Indicated
Inferred
Total
Cut-off Li2O%
7.4
34.2
41.6
4.1
45.7
Tonnes (Mt)
1.23
1.03
1.07
0.95
1.06
ORE RESERVE ESTIMATE
(0.30% Li2O CUT-OFF GRADE) – 30 JUNE 2019
JORC category
Proved
Probable
Total
Cut-off Li2O%
0.30
0.30
0.30
Tonnes (Mt)
7.2
30.5
37.6
Li2O%
1.38
1.29
1.31
1.41
1.32
Li2O%
1.22
1.05
1.08
Fe2O3%
91,000
353,000
444,000
39,000
483,000
Li2O Tonnes
74,000
354,000
428,000
38,000
466,000
Fe2O3%
1.40
1.29
1.31
Li2O Tonnes
87,000
320,000
407,000
Based on current production rates, the Mineral
Resources and Reserves at Pilgangoora will support
a long mine life, with potential for further increases
as a result of additional exploration activities.
GEOLOGY AND MINERALISATION
The Altura Lithium Project occurs at the southern
end of a structurally controlled zone of pegmatite
intrusive dykes within the Pilgangoora greenstone
belt. The pegmatite dykes are hosted within mafic
and ultramafic volcanic rock units. Spodumene is
the main source of lithium ore within the mineralised
pegmatites of the Pilgangoora region.
The pegmatites are within a north-northeast
trending fault zone which is approximately 1,600m
long, 550m wide and up to 350m deep. Fourteen
mineralised pegmatites have been identified and
these generally strike 010–030° NNE, dipping
25–45° ESE and occasionally near vertical. The
dykes have an average thickness of 10–15m and
can range up to 60m thick. The structurally complex
deposit is intersected by a number of faults.
A unique style of pegmatite mineralisation has
been identified within the Altura Lithium Project
with the lodes being comprised of a combination
of coarse grained spodumene bearing pegmatite
and finer grained aplite. Evaluation of geochemical
sample analyses and detailed mineralogy work has
identified primary and secondary mineralisation
phases. The distribution of lithium and other
mineral attributes estimated within the pegmatite
ALTURA ANNUAL REPORT 2020 RESOURCE DEVELOPMENT
AND EXPLORATION continued
11
bodies is complex and the mineralisation tends to
be heterogeneous.
EXPLORATION
LITHIUM
During FY2020, Altura has focussed its exploration
activities at the Altura Lithium Project to further
lithological and structural
advance detailed
mapping, mineralogical studies and
improved
geological modelling
techniques based upon
the reinterpretation of pegmatite boundaries.
Confidence in the revised model is high based upon
a sound interpretation of the in-pit mapping aligned
with previously completed drilling data and the
knowledge gained through mining activities over
the past year.
Altura completed a strategic review of its Earn-
in Agreement (see ASX announcement on 4 June
2020) with
lithium project developer Sayona
Mining Limited over its Pilbara lithium portfolio.
The tenements retained by Sayona following the
strategic review cover an area of 971km2 and are
located near the Altura Lithium Project.
Detailed geological mapping work was completed
by Altura on the Mallina (E47/2983), Deep Well
(E47/3829), Tabba Tabba (E45/2364) and Red Rock
(E45/4716) tenements. Altura have identified the
Mallina tenement as the best tenement for further
development and have commenced planning
targeted exploration activities.
GOLD
Altura completed detailed geological mapping along
a geological and structural corridor of approximately
4 kilometres in length that extends between the
historic Cleopatra and Hazelby Prospects on Altura’s
E45/2363 tenement. This work led to the discovery
of 37 gold nuggets at the Lucky 13 Prospect and the
identification of the Venta and Khasanah Prospects.
Geologically, the location of the nugget find was
significant, given the proximity to an altered contact
between a thick highly strained komatiite intrusive
and high-Mg basalt unit. The area is also located
near the mineralised Lynas and Cleopatra-Hazelby
Faults and associated fault splays.
Three different styles of gold mineralisation
including low sulphidation epithermal, intrusive-
related and orogenic shear replacement types
have been identified by Altura in the Cleopatra-
Hazelby corridor. These targets will be tested by soil
sampling and drilling.
ANNUAL REPORT 2020 ALTURA SUSTAINABILITY
SUSTAINABILITY
13
Altura is focused on the continued development of
a long-term and strategic sustainability plan that
will guide the Company’s operations. This includes
a key focus on the management and development of
social and environmental policies.
Altura operates in a Tier-1 mining jurisdiction
and ensures there is a high-level of focus on
sustainable operations and practices, including a
continued focus on managing natural resources and
minimising waste.
Tailings management forms a critical part of
managing the risks of waste produced from
mining and processing. These risks can range
from potential consequences of a Tailings Storage
Facility failure through to groundwater impact due
to seepage. Altura completes routine inspections
across its operations, which includes the monitoring
and audits on its Tailings Storage Facility, ensuring
the facility is operating in accordance with design
and government regulations. In addition, water
is recycled from the Tailings Storage Facility and
reused in the processing plant circuit.
Altura continues to identify further opportunities
to enhance its sustainability initiatives and in the
coming financial year will continue to pursue
options including:
Solar panel electricity
generation for project
support infrastructure and
camp facilities
Camp vegetation and
‘greening’
Green kitchen waste
composting systems
Feral fauna and weed
eradication programs
including trapping and
baiting
Vegetation rehabilitation
trials using native seed
sources and a range of
germination techniques
ANNUAL REPORT 2020 ALTURA
14
Njamal traditional
owners, the Eaton
family on their land,
approximately 400
metres from Altura’s
Mine Operations Centre
on tenement M45/1230
ENVIRONMENT
COMMUNITY
Altura is committed to ensuring that it operates
in an environmentally sustainable manner and in
accordance with relevant legislation, regulatory
approvals and statutory obligations.
Altura signed a Native Title Agreement with the
Njamal People and Kariyarra People, and a Pastoral
Access Agreement is in place with Wallareenya and
Strelley Stations.
To ensure compliance with environmental approvals
and legal obligations, the Altura Lithium Project
is managed
its approved
in accordance with
Environmental Management Plan (EMP), regulatory
approvals and best practice environmental policies
and procedures.
During the year, Altura undertook groundwater,
riparian vegetation and air quality monitoring and
implemented weed and feral fauna eradication
programs. Altura also submitted a number of
environmental compliance and audit reports in
order to comply with regulatory obligations and
importantly, had no reportable environmental
incidents or non-compliances.
Altura also received all statutory environmental
approvals required to construct the next two stages
of its Tailings Storage Facility and commenced work
toward implementing vegetation rehabilitation trials
in accordance with its approved Mine Closure Plan.
Altura continues to engage with the Njamal People
and has conducted Cultural Awareness Training as
well as several heritage surveys across the site. The
Company is committed to indigenous employment
and engaging local contractors.
Native Title Implementation Committee meetings
are held with the Njamal People biannually to
ensure compliance with the Native Title Agreement
and the continuing alignment of both parties in
project development and exploration activities.
During the year, Altura sponsored the Yandeyarra
School Art Program and assisted with
the
procurement of cool rooms and a power generator
for the Warralong and Strelley Aboriginal community
kitchen to assist with COVID-19. Altura also
welcomed the Eaton family (Pippingarra Njamal) for
a site visit in May and learnt more about the family's
link to the Land.
ALTURA ANNUAL REPORT 2020 DIRECTORS'
REPORT
16
DIRECTORS'
REPORT
`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Your directors have pleasure in presenting the annual financial report of Altura Mining Limited ("Altura" or "the Company")
and its controlled entities (“the Group”) for the financial year ended 30 June 2020.
DIRECTORS
The names of the directors in office during the financial year and up to the date of this report are as follows:
• Mr James Brown
• Mr Paul Mantell (resigned 8 April 2021)
• Mr Allan Buckler
• Mr Dan O’Neill
• Mr Beng Teik Kuan
• Mr Xiaoyu Dai (appointed 10 September 2019)
COMPANY SECRETARY
The name of the secretary in office during the financial year and up to the date of this report is as follows:
• Mr Damon Cox (resigned 16 April 2021)
• Mr John Lewis (appointed 16 April 2021)
PRINCIPAL ACTIVITIES
The principal activity of the Group during the year was the mining, processing and sale of lithium ore at the Altura Lithium
Project in the Pilbara region of Western Australia. Substantial change has occurred to the Group’s operations post year
end. The event details are itemised in the subsequent event comments on page 19.
OPERATING AND FINANCIAL REVIEW
Overview
Altura Mining Limited (“AJM”) is an ASX listed entity that was focused on mining operations and exploration at the Altura
Lithium Project at Pilgangoora in Western Australia. Refer to subsequent events for information on the mining operations
post 30 June 2020 on page 19. The operating and financial review is to be read in conjunction with the subsequent events
note.
Review of Operations
Mining and Production
Following the declaration of commercial production in March 2019, the key focus of Altura over the past 12 months has
been the delivery of stable levels of production and meeting its class leading cost structure.
In the first full financial year of commercial production, Altura produced 181,263 wet metric tonnes (wmt) of high-grade lithium
concentrate, which is 82% of the Project’s nameplate capacity.
This annual production outcome has been based on consistent quarterly production volumes ranging between 45,000 to
47,000 wmt, other than the March quarter which was impacted by adverse weather events associated with tropical
cyclones.
During the year the total ore mined was 1.668 million wmt and the total waste mined was 5.865 million wmt. This equates
to a strip ratio (waste:ore) of 3.5:1 which provides comparatively low mining costs for the Project.
The mining operations were expanded by the continuation of a one-in-three nightshift operation with the mining contractor
NRW. This ensured that the movements in materials met the budgeted waste movement and ore feed requirements.
The consistent mining grades and processing volumes were underpinned by sound grade control of ore processed, which
was managed with the support of a contracted site laboratory service provider.
Haulage was also enhanced during the reporting period by the introduction of triple road trains by logistics contractor
Qube. This move will provided further operational efficiencies and cost savings to the operation.
In addition, the stable production levels have been complemented by planned and preventative maintenance on the crusher
and the coarse and fines processing circuits. The Project’s maintenance strategies are evolving through the experience of
operating the processing plant and will continue to be modified to ensure consistency of production.
4
ALTURA ANNUAL REPORT 2020
17
DIRECTORS'
REPORT continued
`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Although the Company was quietly pleased with the stability of production levels, the objective nonetheless is to achieve
nameplate levels of production.
Ore mined
Waste mined
Strip ratio
Units
wmt
wmt
Sept Qtr
2019
Dec Qtr
2019
Mar Qtr
2020
June Qtr
2020
Total
476,903
429,890
325,423
435,823
1,668,039
1,484,978
1,493,295
1,357,732
1,528,968
5,864,973
waste:ore
3.1
3.5
4.2
3.5
3.5
Total material mined
bcm
670,842
686,501
581,172
683,993
2,622,508
Ore mined grade Li20
Ore processed
Lithium concentrate produced
%
wmt
wmt
1.18
1.27
1.27
1.21
1.23%
376,530
345,553
325,258
375,910
1,423,251
45,484
47,181
42,282
46,316
181,263
There were no operational disruptions due to COVID-19. The Company promptly adopted the guidelines prescribed by the
State and Commonwealth Governments, including transition to 2 weeks on 2 weeks off rosters with no direct handovers
between personnel, increased cleaning regimes and implementation of social distancing protocols.
Sales and Marketing
Other than the period between mid-January and mid-March when many facilities in China were closed due to COVID-19,
shipments of lithium concentrate generally matched the production output during the financial year.
During the reporting period a total of 148,053 dmt (157,594 wmt) was loaded aboard 12 separate vessels from the port of
Port Hedland.
Project milestones were achieved through the reporting period, with a record single shipment of 24,500 wmt shipped to
long-term off-take partner Ganfeng in January 2020, and a quarterly sales record of 60,950 wmt in the June 2020 quarter.
Altura’s product grade averaged 5.9% Li2O across all shipments and continued to attract market share due to the favorable
characteristics of the product and suitability for conversion into high-quality, low-impurity lithium chemicals.
During the year Altura increased the number of off-take counterparties with new agreements signed with established
lithium hydroxide and lithium carbonate producers Shandong Ruifu, Guangdong Weihua Corporation (owner/operator of
Zhiyuan Lithium), and Hunan Yongshan Lithium Co., Ltd, an emerging Lithium Chemicals producer owned by Ningbo
Shanshan Co, Ltd.
In parallel, Altura terminated its off-take agreement with Shaanxi J&R Optimum Energy and reduced the tonnage allocated
to Lionergy Limited.
5
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18
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Operating results
The Group’s operating loss after providing for income tax and non-controlling interests for the year ended 30 June 2020
was $93,827,087 (2019: loss $26,712,731 ). The Group’s operating loss after providing for income tax from continuing
operations for the year ended 30 June 2020 was $89,637,031 (2019: loss $26,571,019). The loss in 2020 includes non-cash
costs as follows:
• Amortised borrowing costs of $26,424,824
• Depreciation and amortisation of $12,936,948
• Writedown of inventory of $12,215,815
•
Impairment of assets held for sale of $4,196,242
and includes further financial costs as follows:
Interest on funding facility of $34,206,592
•
• Net foreign exchange loss of $3,690,510
Excluding the above items, the Group loss after tax was due to lower revenue which was predominately as a result of a
lower spodumene concentrate sales price.
The Groups revenue for the year ended 30 June 2020 was $106,336,352 (2019: $39,399,282). The breakdown of revenue in
2020 was as follows:
• Revenue from sale of spodumene of $105,538,206
• Revenue from Atlas royalties on Mt Webber of $2,290,536
• Revenue from exploration services of $507,610
Financial position
The Group cash and cash equivalents balance as at 30 June 2020 was $2.3 million (2019: $9.4 million). The Group’s cash
flow from operating activities was negative $42.8 million (2019: $13.6 million) predominantly due to payment of interest on
the loan note facility of $15.9 million and a deficit in operational cash flow of $27.3 million. The Group’s cash flow from
investing activities was negative $5.8 million (2019: negative $ 90.3 million) predominantly due to payments for mine
properties and property, plant and equipment of $5.5 million. The Group’s net cash flow from financing activities was $41.5
million (2019: $57.4 million) predominantly due to proceeds from various equity raising during the period totalling
$42.8million.
The net assets of the Group decreased by $35.8 million from $100.8 million to $65.0 million due predominantly to the
increase in borrowings balance which is described below.
The loan note facility balance, excluding borrowing costs that offset the balance in the financial report, as at 30 June 2020
was A$235.3 million (US$161.5million). This is an increase of A$31.6 million (US$18.6 million) from the 30 June 2019
balance of A$203.7 million (US$142.9 million) due to the capitalisation of the February 2020 interest payment of A$16.2
million (US$11.0 million) and an amendment fee of A$11.7million (US$7.7 million). The AUD equivalent of the US$ loan
note facility balance also increased by A$3.7 million due to the weaker AUD:USD foreign exchange rate.
Please refer to Note 17 and Note 31 for further details.
Coal Assets
Tabalong Coal
The Tabalong Coal Project is a premium grade thermal coal deposit located in South Kalimantan, Indonesia. The project
consists of five (5) Mining Licences (IUPs), with all five (5) IUPs granted for Operation Production. Altura holds 70% of three
IUPs and 56% of the remaining two. The Company has previously stated its intention to divest its interests in Tabalong coal
assets. It is pursuing a number of options for sale of the coal assets and information has been made available to a number
of parties under confidentiality deed arrangements.
6
ALTURA ANNUAL REPORT 2020
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to the end of the financial year the following events occurred:
31 July 2020 – Formal request from the Group to its Senior Secured Loan Note Holders (LNH), to extend payment
5 August 2020 – Draft Waiver Letter issued to LNH, subsequently LNH instructed their legal counsel to provide a letter
obligations to
31 October 2020 to allow re-structure process to complete.
extension
(1 week) to allow formal documentation to be completed.
10 August 2020 – The Group entered a trading halt and subsequent suspension from official quotation while refinancing
activities were undertaken.
25 August 2020 – LNH provided waiver of all financial obligations and covenants until 31 October 2020 – with 2
milestones:
Milestone 1 – 10 September 2020 to present to the LNH some form of non-binding term sheet for an equity, debt,
merger proposal; and
Milestone 2 – 10 October 2020 to present to the LNH a binding proposal to the LNH and be announced to the
market.
26 August 2020 – A credible and well-known participant in the Australian equity market (Bookrunner) commenced a non-
deal roadshow to gauge market interest.
10 September 2020 – A prominent Australian-based mining and processing company provided a non-binding indicative
offer (NBIO) to Altura and presented to the LNH in accordance with the waiver agreement.
7 October 2020 – LNH were issued with a Term Sheet regarding the recapitalisation process. The Term Sheet was non-
binding but allowed the Bookrunner to provide details to equity groups and allow a structure to be agreed with
those groups.
9 October 2020 – LNH provided an extension of Milestone 2 from 10 October 2020 to 24 October 2020 due to one large
equity group requiring more due diligence time. AJM paid $140,000 of the LNH legal fees for document drafting
as part of the recapitalisation process.
14 October 2020 – LNH advised the Company to proceed with document drafting for the re-structure based on the key
terms agreed in the Term Sheet – LNH stated that in essence of time the parties should proceed with formal
documentation rather than trying to bind the Term Sheet, this followed a few days of negotiation on the Term
Sheet.
21 October 2020 – An existing offtake partner committed to an A$66 million cornerstone investment for the proposed
equity process, subject to transaction approval at their board meeting on 21 October 2020 – the deal would be
announced on the same day, the equity process would launch on week of 26 October 2020. LNH requested Altura
hold off on the Offtake partner’s approval until formal documents completed (target 23 October 2020), this would
defer approval until Offtake partner’s next board meeting on 29 October 2020. Altura in good faith accepted the
LNH request in anticipation of completion and execution of signing documents on the 23 October 2020.
22 October 2020 – The Bookrunner provided a detailed letter of support to the recap process, the Bookrunner also issued
LNH with a process timeline and request for them to acknowledge support and terms of the agreements.
23 October 2020 – The Company’s legal counsel provided LNH legal counsel with final drafts of all legal agreements for
review and execution.
Sunday 25 October 2020 – Altura becomes aware of a potential deal (from a credible media outlet) being struck by the
LNH and other parties involved in the process – request sent to other parties for clarification and compliance to
the existing Non-Disclosure Agreements in place between Altura and said parties;
25 October 2020 – Notice of Default issued to Altura by LNH (midnight) citing breach of Milestone 2, which came about by
Altura in good faith agreeing to the LNH request on the 21 October 2020 of the announcement of the Offtake
partner’s deal and the request by the LNH on the 14 October 2020 to proceed with formal documentation on the
recapitalisation.
26 October 2020 – Notice of Receivers and Administrators received, Altura had no time to challenge, KordaMentha (KM)
appointed as Receivers and Managers.
26 October 2020 – Cor Cordis (CC) appointed as Administrators.
28 October 2020 PLS announce conditional agreement to acquire Altura Lithium Operations stating PLS had entered into
an Implementation Deed with the senior secured loan noteholders of Altura.
29 October 2020 – KM announce the LNH have entered into an implementation agreement with Pilbara Minerals (PLS).
1 December 2020 – PLS announce a share sale agreement to acquire the Group’s wholly owned subsidiary Altura
Lithium Operations Pty Ltd (ALO).
11 December 2020 - Creditors approve the ALO deed of company arrangement (DOCA) subject to completion of an equity
raising
by PLS.
20 January 2021 – PLS completes the acquisition of ALO as per the terms of the share sale agreement. ALO was sold for
a total consideration of $270 million. As at the date of this report, Directors are unable to quantify the financial
impact on operations as a result of the transaction. KM retire as Receivers and Managers.
5 March 2021 – ACN 647 358 987 Pty Ltd entered into a DOCA resulting in the CC deed of administration ceasing and
administration for the Group reverting to its Directors. ACN 647 358 987 Pty Ltd has loaned funds to Altura and
provided funds to the Altura Mining Limited Creditors Trust.
16 April 2021 – Altura announced the appointment of Alex Cheeseman as CEO of the company, the resignation of Paul
Mantell as a director and the appointment of John Lewis as Company Secretary.
3 May 2021 Altura announced it had executed a Letter of Intent (LOI) to enter into an Earn-in Option Agreement (EOA) for
60% project equity in Lithium Corporation’s (“Lithium Corp.”) Fish Lake Valley (FLV) Project located in central-
west Nevada, USA.
7
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20
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Post the disposal of ALO and the balance of the Australian based assets, the Altura Group retains its interest in the
Tabalong Project (whilst searching for a suitable party to divest the project) and investment in Lithium Corporation, Nevada
USA. Funding provided from the Group’s current Australian Directors has funded payment of the remaining liabilities and
providing sufficient working capital to sustain its operations during the Group’s re-quotation process on the ASX.
Material contracts with Key Management Personnel post June 2020
Alex Cheeseman, Chief Executive Officer – (appointed 16 April 2021) the agreement is of no fixed term and allows for
payment of an annual cash salary, reviewed each year, and superannuation. Six months’ notice of termination by either
party is required, with a separation allowance equivalent to six month’s gross salary to be paid if employment was
terminated by the Company
Key Management Personnel Remuneration post June 2020
During the period after the financial year ending 30 June 2020 the following payments, we made to key management
personnel in accordance with their service contracts. Remuneration excludes termination payments as the details require
confirmation from KordaMentha/Cor Cordis and performance rights require completion of the re-listing process on
the ASX.
Estimated remuneration of Key Management Personnel Remuneration
310,185
Executive Directors
Non-Executive Directors
83,700
Other key management personnel 180,832
No further events have occurred since 20 May 2021, which would require disclosure in the financial report.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Post the sale of ALO and the Group’s Australian based assets referred to in the subsequent event matters the Company’s objective
is to create shareholder value through acquisition and development of lithium-based exploration tenements and other
supplementary mining activities that deliver strong cash flows for the Group, and resultant regular dividends for
shareholders.
Key Business Strategies
Altura’s strategic focus comprises:
• Acquisition and exploration of a portfolio of tenements to identify a potential lithium resource, and to maximise the
value of any other minerals on the tenements including gold.
• Partnering investment and project opportunities with Lithium Corporation
• Conducting its exploration operations sustainably across the environment, health and safety, people and community
relations.
• Divestment of the Tabalong coal project.
Future Prospects and Material Business Risks
The Company’s future financial performance and financial outcomes are dependent upon a range of risk factors typically
encountered by lithium mining companies. These include:
Identify and successfully explore tenements suitable for resource development.
•
• Cost and access to funds for working capital, refinancing or project expansion purposes.
• Movements in the Australian Dollar / US Dollar exchange rate can impact on revenue and debt.
8
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
DIVIDENDS
There were no dividends paid or declared during the year ended 30 June 2020 (2019: Nil).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Post the end of the financial year as discussed in the financial report and elsewhere in this Directors Report the Group has
transitioned through significant change in its composition and business activities. With the Group’s release from external
management it’s focus apart from exploring new investment opportunities is progressing through the requirements to be
relisted on the ASX and return value to its shareholders.
OTHER MATTERS
Civmec Legal Action
On 17 July 2020, Altura was advised by Civmec Construction and Engineering Pty Ltd that it had lodged a writ and statement
of claim in the Supreme Court of Western Australia against Altura Lithium Operations Pty Ltd (ALO) in relation to the
process plant construction and installation work at the Altura Lithium Project. On 20 July 2020, Altura was served with
this statement of claim.
Altura proceeded to defend these proceedings until the Group was placed under external management. ALO was acquired
by Pilbara Minerals Limited (PLS) following a deed of company arrangement (DOCA) process. As a result of the DOCA
process and acquisition by PLS, ALO is no longer a subsidiary of the Company. The Company was not a party to the
proceedings. The proceedings were dismissed by a consent order on 4 February 2021.
ENVIRONMENTAL PERFORMANCE
The Group is committed to achieving a high standard of environmental performance and is subject to significant
environmental regulation form both Commonwealth and State legislation in Australia to its mining, development and
exploration activities. The Board of Directors is responsible for regular monitoring of environmental exposures and
compliance with these environmental regulations. The Group complied with its environmental performance obligations
during the year. Subsequent to the year end all rights and obligations were transferred with the assets of its Australian
mining, development and exploration activities.
9
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22
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
INFORMATION ON DIRECTORS
Mr James Brown (Managing Director)
Qualifications
Graduate Diploma in Mining from University of Ballarat
Experience
Mr Brown is a mining engineer with over 35 years' experience in the mining industry in Australia and Indonesia,
including the last 12 years in the chief executive role at Altura. His mining development and operations experience
includes the New Acland and Jeebropilly mines in South East Queensland, the Adaro and Multi Harapan Utama
operations in Indonesia and Blair Athol in the Bowen Basin in Central Queensland.
Other current directorships in listed entities
Sayona Mining Limited
Former directorships in last 3 years
None
Special responsibilities
Chief Executive Officer
Interests in shares and options
31,788,301 ordinary shares in Altura Mining Limited
385,000 options over ordinary shares in Altura Mining Limited
Mr Paul Mantell (Executive Director) (resigned 8 April 2021)
Qualifications
Bachelor of Commerce from the University of Queensland and a Fellow of CPA Australia
Experience
Mr Mantell is an accountant with more than 35 years’ corporate experience in the mining and associated industries.
He has been involved in all aspects of accounting and finance, financial reporting, taxation and administration,
including the responsibilities of an ASX listed entity. He has previously arranged finance for mining and infrastructure
projects both in Australia and Indonesia and has set up corporate, administrative and financial systems to support
new and expanding mining operations. He was appointed a director in May 2009.
Other current directorships in listed entities
None
Former directorships in last 3 years
None
Special responsibilities
None
Interests in shares and options
36,899,238 ordinary shares in Altura Mining Limited
385,000 options over ordinary shares in Altura Mining Limited
10
ALTURA ANNUAL REPORT 2020
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Mr Allan Buckler (Non-Executive Director)
Qualifications
Certificates in Mine Surveying and Mining, First Class Mine Managers Certificate and a Mine Surveyor Certificate
issued by the Queensland Government’s Department of Mines
Experience
Mr Buckler has over 45 years’ experience in the mining industry and has taken lead roles in the establishment of
several leading mining and port operations in both Australia and Indonesia. Mr Buckler was appointed a director in
December 2008.
Other current directorships in listed entities
Sayona Mining Limited
Former directorships in last 3 years
None
Special responsibilities
Member of the Audit & Risk Committee
Member of the Remuneration & Nomination Committee
Interests in shares and options
459,738,505 ordinary shares in Altura Mining Limited
58,466,808 options over ordinary shares in Altura Mining Limited
Mr Dennis O’Neill (Independent Non-Executive Director)
Qualifications
Bachelor of Science in geology from the University of Western Australia
Experience
Mr O’Neill was appointed a director in December 2008. He has held positions with a number of Australian and
multinational exploration companies and has managed exploration programs in a diverse range of environments and
locations including Botswana, North America, South East Asia, North Africa and Australasia. During his 35 years’
experience, he has held executive management positions with ASX listed companies and has worked on a range of
commodities including diamonds, gold, base metals, coal, oil and gas.
Other current directorships in listed entities
Sayona Mining Limited
Former directorships in last 3 years
None
Special responsibilities
Chairman of the Remuneration & Nomination Committee
Member of the Audit & Risk Committee
Interests in shares
13,633,336 ordinary shares in Altura Mining Limited
11
ANNUAL REPORT 2020 ALTURA
24
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
Mr Beng Teik Kuan (Independent Non-Executive Director)
Qualifications
Bachelor of Engineering (University of Malaya)
Experience
Mr Kuan is an engineer with considerable experience in bulk handling and terminal operations, including
responsibility for the development and management of the Pulau Laut Coal Terminal in South Kalimantan, Indonesia.
He also has experience in Indonesia, Malaysia and Singapore with tin dredging operations, managing rubber, palm
oil and cocoa processing factories, and managing palm oil bulk terminals. He was appointed a director in November
2007.
Other current directorships in listed entities
None
Former directorships in last 3 years
None
Special responsibilities
Chairman of the Audit & Risk Committee
Member of the Remuneration & Nomination Committee
Interests in shares and options
26,600,000 ordinary shares in Altura Mining Limited
1,000,000 options over ordinary shares in Altura Mining Limited
Mr Xiaoyu Dai (Non-Executive Director – Appointed 10 September 2019)
Qualifications
Master of Business Administration (Nanjing University, China)
Experience
Mr Xiaoyu Dai has 21 years’ experience in chemicals industry, spanning various commodities, specialties and
operations in China, Africa, Germany, Singapore, Japan and Korea. He held senior executive roles with extensive
operational experience in both petro and fine chemicals leading companies, including previous roles as head of alpha
olefins, fatty alcohol in Sasol China, Managing Director of Rockwood Lithium China, and senior consultant of
Shanshan Inc. He is the Managing Director of Shanshan Forever Lithium Co., Ltd.
Other current directorships in listed entities
None
Former directorships in last 3 years
None
Special responsibilities
None
Interests in shares
Nil
12
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25
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
COMPANY SECRETARY
Mr Damon Cox (resigned 16 April 2021) – Mr Cox is a Chartered Secretary, and a CPA. He has over 30 years’ experience in
various roles including corporate governance, compliance, treasury and strategic policy advice.
Mr John Lewis (appointed 16 April 2021) – Mr Lewis has a Bachelor of Business Degree and is a Chartered Accountant
with more than 25 years post qualification experience. Mr Lewis has extensive corporate governance and company
reorganisation experience. Since 2007, Mr Lewis has worked predominantly in the resource development and mining
sector in Australia and overseas as a Company Director, CFO and Company Secretary.
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for directors and other key management personnel. It does not
detail information on the remuneration of key management post this date.
Remuneration Policy and link to performance
The Company’s policy is to remunerate fairly and in line with companies of similar size, operations and in the same
industry. Individual remuneration decisions are made by the Remuneration & Nomination Committee taking into account
the following factors:
• The responsibility of the role;
• Experience of the employee;
• Past performance and future expectations; and
•
Industry conditions and trends.
In order to retain and attract key management personnel of sufficient calibre to facilitate the efficient and effective
management of the Company’s operations, the Remuneration & Nomination Committee may seek the advice of external
advisors in connection with the structure of remuneration packages.
Remuneration packages may contain the following key elements:
a) Primary benefits – salary/fees, bonuses and non-monetary benefits including the provision of a motor vehicle;
b) Post-employment benefits – including superannuation and prescribed retirement benefits; and
c) Equity – performance rights granted under the Long-Term Incentive Plan as disclosed in Note 22 to the financial
statements.
None of the Company’s personnel remuneration packages are linked directly to the Company’s profitability or other
measure of performance. The Company maintains a Long-term Incentive Plan under which employees may be granted
performance rights and share options which vest subject to service conditions being met. Directors may also be allocated
performance rights and/or options as an incentive. During the 2020 year, no executive directors were issued with shares
on the vesting of previously issued performance rights.
Performance-based remuneration
The Company currently has performance-based remuneration in place as disclosed in Note 23.
Group performance, shareholder wealth and director and executive remuneration
The Group has recorded the following earnings from continuing operations over the last five years:
Revenues and sundry income
EBITDA *
NPBT *
NPAT *
Dividends paid
2020
107,023,428
(16,047,598)
(89,615,963)
(89,637,031)
-
2019
39,571,130
(3,967,691)
(26,283,568)
(26,571,019)
-
2018
1,675,168
(13,279,929)
(13,120,803)
(12,712,487)
-
2017
1,600,959
(6,417,320)
(6,448,799)
(5,914,752)
-
2016
1,485,611
(11,290,052)
(30,839,474)
(31,618,016)
-
* Definitions:
EBITDA = Earnings before interest, tax, depreciation and amortisation
NPBT = Net profit before tax
NPAT = Net profit after tax & minority interest
13
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key Management Personnel Remuneration Policy
The Remuneration & Nomination Committee reviews the remuneration packages of all directors and key management
personnel on an annual basis. Remuneration packages are reviewed and determined with due regard to relevant market
conditions and individual’s experience and qualification and are benchmarked against comparable industry salaries.
Payment of bonuses and share based compensation benefits is discretionary.
Employment Contracts of Key Management Personnel
Contracts of employment are given to key management personnel at time of employment. Details are as follows:
James Brown, Managing Director – the agreement is of no fixed term and allows for payment of a monthly cash salary in
US dollars, reviewed each year, plus allowances. Three months’ notice of termination by either party is required, with a
separation allowance equivalent to one year’s salary and entitlements to be paid if employment is terminated by the
Company.
Paul Mantell, Executive Director – the agreement is of no fixed term and allows for payment of an annual cash salary,
reviewed each year, and superannuation. Provision of a motor vehicle or equivalent allowance and other non-cash benefits
is included. Three months’ notice of termination by either party is required, with a separation allowance equivalent to one
year’s gross salary to be paid if employment was terminated by the Company.
Rodney Wheatley, Chief Financial Officer – the agreement is of no fixed term and allows for payment of an annual cash
salary, reviewed each year, and superannuation. Six months’ notice of termination by either party is required, with a
separation allowance equivalent to six month’s gross salary to be paid if employment was terminated by the Company.
Damon Cox, Company Secretary – the agreement is of no fixed term and allows for payment of an annual cash salary,
reviewed each year, and superannuation. Provision of a motor vehicle is included. Two months’ notice of termination by
either party is required, with a separation allowance equivalent to six month’s gross salary to be paid if employment is
terminated by the Company.
14
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`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Key Management Personnel Remuneration
Short-term benefits
Post employment
Share based
payments
Total
Cash salary
and fees
$
Cash
bonus
$
Bonus
shares
$
Non-
monetary
benefits
$
Super-
annuation
$
Termination
payments
$
Performance
rights
$
$
Performance
rights as a
percentage
of total
%
Name
2020
Non-executive directors
A Buckler
D O’Neill
B Kuan
X Dai i)
Sub total
non-executive directors
Executive directors
J Brown
P Mantell
Other key management
personnel
R Wheatley ii)
D Cox
N Young iii)
P Robinson iv)
72,000
84,000
84,000
57,995
297,995
465,423
325,025
223,929
150,000
120,000
48,333
Total for key
management personnel
compensation
Total compensation
1,332,710
1,630,705
2019
Non-executive directors
A Buckler
D O’Neill
B Kuan
Z Tong v)
Sub total
non-executive directors
Executive directors
J Brown
P Mantell
Other key management
personnel
P Robinson iv)
C Evans vi)
N Young
D Cox
Total for key
management personnel
compensation
72,000
84,000
84,000
57,399
297,399
436,278
325,025
267,771
191,151
180,000
150,000
1,550,225
Total compensation
1,847,624
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,840
7,980
7,980
-
22,800
104,792
-
13,809
25,000
-
20,687
20,786
14,250
-
-
-
-
-
-
-
-
-
3,912
11,400
33,323
-
6,393
82,847
-
-
-
-
-
-
-
78,840
91,980
91,980
57,995
320,795
570,215
363,834
-
-
-
-
-
-
29,955
274,670
10.9%
-
-
-
184,937
168,635
137,573
143,200
77,829
116,170
29,955
1,699,864
143,200
100,629
116,170
29,955
2,020,659
-
-
-
-
-
6,840
7,980
7,980
-
22,800
98,334
14,214
-
24,999
-
-
-
-
-
-
-
-
-
-
-
-
-
78,840
91,980
91,980
57,399
320,199
265,000
799,612
132,500
496,738
39,750
455,295
124,85
0
-
-
-
22,924
22,144
62,716
132,500
408,511
-
-
3,848
20,371
17,100
14,250
-
-
26,500
26,500
227,448
211,121
124,85
0
124,8
50
136,768
101,417
62,716
622,750
2,598,726
136,768
124,217
62,716
622,750
2,918,925
-
-
-
-
-
-
-
33.1%
26.7%
8.7%
32.4%
11.7%
12.6%
i) Mr Dai was appointed as a director in September 2019
ii) Mr Wheatley was appointed as Chief Financial Officer in September 2019
iii) Mr Young retired in February 2020
iv) Mr Robinson was appointed Chief Operating Officer in February 2019 and resigned in September 2019
v) Mr Tong resigned as a director in April 2019
vi) Mr Evans resigned in February 2019
Long service leave payments of $31,497 (2019: Nil) were made during the year
15
ANNUAL REPORT 2020 ALTURA
28
DIRECTORS'
REPORT continued
`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
REMUNERATION REPORT (AUDITED) (CONTINUED)
Performance Rights
In 2014 the Company established a new Long-Term Incentive Plan (LTIP) to assist in the reward and retention of directors
and employees. There were no performance rights on issue as at 30 June 2019.
A total of 8,500,000 performance rights were granted in May 2020 to key management personnel and other senior staff.
For each recipient, the performance rights comprised three vesting conditions:
1) A company-wide safety performance hurdle (20% of amount);
2)
3) Continuous employment service condition (40%).
Individual KPIs (40%); and
The rights awarded were granted for no consideration. No amount is payable on the vesting of the rights. The rights will
vest and automatically convert to ordinary shares in the Company following the satisfaction of the performance and service
conditions.
The following performance rights were on issue to key management personnel as at 30 June 2020:
R Wheatley
Granted
number
1,000,000
1,000,000
Vesting
31 Jan
2021
1,000,000
1,000,000
No shares were issued to directors and key management personnel on the vesting of performance rights during the year
ended 30 June 2020.
MEETINGS OF DIRECTORS
The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during
the financial year and the number of meetings attended by each director (while they were a director or committee
member). During the financial year there were 18 Directors’ meetings, 2 Audit & Risk Committee meetings and 3
Remuneration & Nomination Committee meetings held.
Directors’ Meetings
Audit & Risk Committee
Number
eligible to
attend
18
18
18
18
18
17
Number
attended
18
18
14
16
17
10
Number
eligible to
attend
-
-
2
2
2
-
Number
attended
-
-
1
2
2
-
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
X Dai
Number
eligible to
attend
-
-
3
3
3
-
Remuneration & Nomination
Committee
Number
attended
-
-
1
3
3
-
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has entered into Deeds of Indemnity with all of its directors in accordance with the Company’s Constitution.
During the financial year the Company paid a premium to insure the directors, officers and managers of the Company and
its controlled entities. The insurance contract requires that the amount of the premium paid is kept confidential.
16
ALTURA ANNUAL REPORT 2020
29
DIRECTORS'
REPORT continued
`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
OPTIONS
Under the terms of the Placement and the Securities Purchase Plan undertaken in February/March 2019, a total of
148,798,009 listed options were issued with an exercise price of $0.20 cents per option and an expiry date of 28 February
2022. At the date of signing this report, there were 148,797,979 listed options outstanding.
In addition, there were 74,400,000 unlisted options over ordinary shares of Altura Mining Limited outstanding. These
unlisted options were issued to LDA Capital on 1 May 2020 (following approval at a general meeting held on 30 April 2020)
under the terms of an equity standby facility provided by LDA Capital. The options have an exercise price of $0.0586 cents
per option and have an expiry date of 1 May 2023.
WARRANTS
Under the terms of the US$110 million debt facility announced on 28 July 2017, the lenders received a total of 72,644,513
warrants. These were approved on 22 November 2017 at the Company’s annual general meeting and issued on 27
November 2017 at an exercise price of $0.1260 per warrant with an expiry date 4 August 2022. At the date of signing this
report, there were 19,812,140 warrants outstanding.
NON-AUDIT SERVICES
The Company’s changed auditor during the period, subject to shareholder approval at the upcoming Annual General
meeting in November 2020, from PFK Brisbane Audit to PKF Perth with ASIC consenting to the change on 11 July 2020.
PKF Perth, did not provide any non-audit services to the Company during the year ended 30 June 2020.
Fees paid or payable to PKF Brisbane Audit, being the previous auditor the Group, during the year ending 30 June 2020
total $nil (2019: nil).
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in note 30 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by
the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 30- to the financial statements do not compromise
the external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and reward.
17
ANNUAL REPORT 2020 ALTURA
30
DIRECTORS'
REPORT continued
`Altura Mining Limited and Controlled Entities
Directors’ Report
FOR THE YEAR ENDED 30 JUNE 2020 (CONTINUED)
ROUNDING OF AMOUNTS
The company is of a kind referred to ASIC Legislative Instrument 2016/191, relating to the ‘rounding off’ of amounts in the
directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded off to the
nearest thousand dollars in accordance with the instrument.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2020 has been received and is included on page 31 of
the annual report.
Signed in accordance with a resolution of the Directors made pursuant to Section 298(2) of the Corporations Act 2001.
On behalf of the Directors,
James Brown
Director
Brisbane, 25 May 2021
18
ALTURA ANNUAL REPORT 2020
31
PKF Perth
AUDITOR’S INDEPENDENCE DECLARATION
TO THE DIRECTORS OF ALTURA MINING LIMITED
In relation to our audit of the financial report of Altura Mining Limited for the year ended 30 June 2020, to the
best of my knowledge and belief, there have been no contraventions of the auditor independence requirements
of the Corporations Act 2001 or any applicable code of professional conduct.
PKF PERTH
SIMON FERMANIS
PARTNER
25 MAY 2021
WEST PERTH,
WESTERN AUSTRALIA
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
19
ANNUAL REPORT 2020 ALTURA
FINANCIAL
REPORT
34
CONSOLIDATED STATEMENT OF
PROFIT AND LOSS
FOR THE YEAR ENDED 30 JUNE 2020
CONTINUING OPERATIONS
Revenue
Cost of sales
Gross profit
OTHER INCOME
Sundry income
EXPENSES
Administration costs
Employee benefits expense
Exploration expenditure written off
Other expenses
Profit on sale of subsidiary
Profit/(loss) before foreign exchange and finance costs
Net foreign exchange loss
Profit/(loss) before finance costs
FINANCE COSTS
Interest on funding facility
Amortisation of transaction costs
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax from continuing operations
DISCONTINUED OPERATIONS
Note
5(a)
5(c)
2020
$'000
2019
$'000
106,336
39,399
(123,682)
(31,961)
(17,346)
7,438
5(b)
687
172
5(g)
5(d)
5(f)
5(e)
17
7(a)
(5,010)
(4,448)
(218)
(160)
1,202
(25,293)
(3,691)
(28,984)
(3,344)
(5,725)
-
(188)
-
(1,647)
(6,466)
(8,113)
(34,207)
(26,425)
(10,566)
(7,605)
(89,616)
(26,284)
(21)
(287)
(89,637)
(26,571)
Loss from discontinued operations after tax
3
(4,190)
(142)
Net profit/(loss) for the year
Profit/(loss) attributable to:
Owners of Altura Mining Limited
Non-controlling interest
(93,827)
(26,713)
(93,736)
(26,665)
(91)
(48)
(93,827)
(26,713)
(Loss) per share from continuing and discontinued operations attributable
to the ordinary equity holders of the Company:
Basic and diluted (loss) per share from continuing and discontinuing operations
Basic and diluted (loss) per share from continuing operations
Basic and diluted (loss) per share from discontinued operations
6
6
6
(3.75)
(3.59)
(0.17)
(1.40)
(1.39)
(0.01)
The above Consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.
ALTURA ANNUAL REPORT 2020 35
CONSOLIDATED STATEMENT OF
OTHER COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 JUNE 2020
PROFIT/(LOSS) FOR THE YEAR
Other comprehensive income/(loss) for the year
Items that may be reclassified to profit and loss
Changes in the fair value of financial assets
Exchange differences on translation of foreign controlled entities
Other comprehensive income/(loss) for the year, net of tax
Total comprehensive income/(loss) for the year
Total comprehensive income/(loss) attributable to:
Members of the parent entity
Non-controlling interest
Total comprehensive income/(loss) attributable to:
Members of the parent entity
Non-controlling interest
Net profit/(loss) for the year
Total comprehensive income/(loss) attributable to members of the parent
entity arises from:
Continuing operations
Discontinued operations
Note
2020
$'000
2019
$'000
13
637
(1,377)
(740)
(2,732)
(2,522)
(5,254)
(94,567)
(31,967)
(94,556)
(31,885)
(11)
(82)
(92,567)
(31,967)
(94,556)
(31,885)
(11)
(82)
(92,567)
(31,967)
(90,158)
(4,398)
(31,229)
(656)
(94,556)
(31,885)
The above Consolidated Statement of Other Comprehensive Income should be read in conjunction with the accompanying Notes..
ANNUAL REPORT 2020 ALTURA 36
CONSOLIDATED
BALANCE SHEET
AS AT 30 JUNE 2020
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Held to maturity investments
Inventories
Current tax prepaid
Other current assets
Assets classified as held for sale
Total current assets
NON-CURRENT ASSETS
Financial assets
Property, plant, equipment and mine properties
Exploration and evaluation
Right-of-use assets
Total non-current assets
CURRENT LIABILITIES
Trade and other payables
Borrowings
Short term provisions
Lease liabilities
Liabilities classified as held for sale
Total current liabilities
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Rehabilitation provision
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Reserves
Accumulated losses
Capital and reserves attributable to owners of Altura Mining Limited
Non-controlling interest
Total equity
Note
2020
$'000
2019
$'000
8
9
11
10
12
3c
13
14
15
21
16
17
18
21
3c
17
21
20
22
22
2,298
9,395
26
22,515
66
5,739
6,370
46,409
1,923
288,492
3,312
1,757
295,484
42,955
17,736
1,901
524
2,363
65,479
191,693
1,300
18,435
211,428
276,907
64,986
290,860
(2,359)
(223,741)
64,760
226
64,986
9,494
2,149
78
20,720
73
1,155
9,903
43,572
1,286
288,680
3,265
-
293,231
40,778
179,612
1,669
-
1,905
223,964
-
-
11,994
11,994
235,958
100,845
233,955
(3,320)
(130,005)
100,630
215
100,845
The above Consolidated Balance Sheet should be read in conjunction with the accompanying Notes.
* The Consolidated Balance Sheet presented refers to account balances at 30 June 2020. With the appointment of the Administrators
and Receivers exercising their management control over the Group these balances may have changed significantly post year end, The
Directors Report and the Subsequent Events Note (note 31) highlight the events taken place post 30 June 2020.
ALTURA ANNUAL REPORT 2020 37
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Contributed
equity
$'000
Accumulated
losses
$'000
Options &
performance
rights reserve
$'000
Change in
fair value
– market
valuation
$'000
Foreign
currency
translation
reserve
$'000
Non-
controlling
interests
$'000
Total
(1,588)
(2,488)
298
93,353
(83)
(31,967)
Balance as at 30 June 2018
192,893
(103,340)
1,602
3,488
Total comprehensive income
for the year
Transactions with owners in their capacity as owners:
-
(26,665)
-
(2,732)
Issue of shares – employee
bonus payment
Contributions of equity, net of
transaction costs
Transfer from share based payment
reserve to equity
125
38,118
2,819
Share based payments transactions
-
-
-
-
-
(2,819)
1,217
-
-
-
-
Sub-total
41,062
(26,665)
(1,602)
(2,732)
Balance as at 30 June 2019
233,955
(130,005)
Balance as at 30 June 2019
233,955
(130,005)
Total comprehensive income
for the year
-
(93,736)
Transactions with owners in their capacity as owners:
Contributions of equity, net of
transaction costs
56,905
Share based payments transactions
-
-
-
Sub-total
56,905
(93,736)
Balance as at 30 June 2020
290,860
(223,741)
-
-
-
1,802
1,802
1,802
756
756
637
-
-
-
-
-
-
(2,488)
(4,076)
(4,076)
(1,478)
-
-
637
1,393
(1,478)
(5,554)
-
-
-
-
(83)
215
125
38,118
-
1,217
7,492
100,845
215
100,845
11
(94,566)
-
-
56,905
1,802
11
(35,859)
226
64,986
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
ANNUAL REPORT 2020 ALTURA 38
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers *
Payments to suppliers and employees
Sundry income
Interest received
Interest paid
Proceeds from jobkeeper
Net cash provided by/(used in) in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditure on exploration and evaluation activities
Purchase of property, plant, equipment and mine properties
Proceeds during commissioning of mine properties *
Proceeds from disposal of subsidiaries
Proceeds from held to maturity investments
Proceeds from sale of property, plant and equipment
Net cash (used in)/provided by investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issue of shares
Transaction costs on issue of shares
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Transaction costs related to borrowing
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at the beginning of year
Effect of exchange rate changes on cash holdings in foreign currencies
Cash and cash equivalents at the end of year
NON-CASH INVESTING AND FINANCING ACTIVITIES
Share based payments
Interest on loan facility capitalised
Transaction fees – borrowings
Note
2020
$'000
2019
$'000
89,172
(116,524)
-
3
(15,927)
470
(42,806)
(619)
(5,506)
-
260
52
2
(5,811)
42,755
(60)
7,878
(7,878)
(504)
(714)
41,477
(7,140)
9,513
(65)
2,308
(1,802)
(16,202)
(11,661)
48,432
(34,953)
31
74
-
-
13,584
(1,198)
(118,618)
29,463
-
-
44
(90,309)
38,548
(569)
19,395
-
-
-
57,374
(19,351)
28,779
85
9,513
(125)
(2,141)
(625)
28(b)
27 / 28(c)
27 / 28(c)
28(a)
28(a)
23
* Receipts from customers include sales of spodumene concentrate from the date of commercial production in March 2019. Shipments
of spodumene concentrate prior to commercial production are recorded in proceeds during commissioning of mine properties.
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes.
ALTURA ANNUAL REPORT 2020 NOTES TO THE
39
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
This financial report includes the consolidated financial statements and notes of Altura Mining Limited (the Company) and
controlled entities (‘Consolidated Group’ or ‘Group’). Altura Mining Limited is a company limited by shares, incorporated
and domiciled in Australia, whose shares are publicly traded on the Australian Securities Exchange.
The separate financial statements of the parent entity, Altura Mining Limited, have not been presented within this financial
report as permitted by amendments made to the Corporations Act 2001.
The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards. The financial
statements were authorised for issue on 25 May 2021 by the directors of the Company.
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
a)
Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply
with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards
Board (“IASB”).
The following is a summary of the material accounting policies adopted by the Consolidated Group in the
preparation of the financial report. The financial report has been prepared on an accruals basis. The accounting
policies have been consistently applied, unless otherwise stated.
i)
Going concern principle of accounting
As detailed in the subsequent events note the Group was placed into external administration and
receivership on the 26th October 2020. The Group’s wholly owned subsidiary Altura Lithium Operations
Pty Ltd, which owned the Altura Lithium Project, was sold to a third party to payout the Group’s secured
noteholders.
The Group was administered externally until it was returned to the Directors on the 5th March 2021. During
this period a deed of company arrangement (DOCA) was executed, funds were loaned to the Group for
working capital and a creditors trust was established.
The Directors have decided to seek a relisting of the company on the ASX. To do so they will need to re-
comply with a number of ASX requirements. The purpose of the relisting will be to raise sufficient capital
to implement the Key Business Strategies detailed in the Directors Report.
Accordingly, the ability of the Company and Group to continue as a going concern is dependent on the
relisting of the Company on the ASX and the raising of capital to pursue the Group’s Key Business
Strategies.
The Directors are confident of succeeding with the relisting and the raising of capital because of the assets
now controlled by the Group including the Tabalong Project and the investment in Lithium Corporation
based in the USA.
If the Directors are unable to relist and raise capital, they require the Company and Group may not be able
to continue as a going concern. As such a material uncertainty exists in relation to the ability of the
Company and Group to continue as going concerns and realise assets and extinguish liabilities in the
normal course of business.
25
ANNUAL REPORT 2020 ALTURA
40
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ii) New accounting standards for application in future periods
A number of new standards, amendments and interpretations to existing standards have been published
by the Australian Accounting Standards Board (AASB) that are effective for future periods and which the
Group will adopt when they become effective. None of these are expected to have a significant effect on
the consolidated financial statements of the Group, except: From 1 July 2019, the group adopted AASB 16
Leases. Refer to Note 21. For further details.
AASB No.
Title
AASB 2014-10
AASB 2018-6
AASB 2018-7
AASB 2019-1
AASB 2019-5
AASB 2020-1
AASB 2020-3
AASB 2020-4
AASB 1060
Amendments to Australian
Accounting Standards – Sale or
Contributions of Assets between an
Investor and its Associate or Joint
Venture
Amendments to Australian
Accounting Standards – Definition of
a Business
Amendments to Australian
Accounting Standards – Definition of
Material
Amendments to Australian
Accounting Standards – References
to the Conceptual Framework
Amendments to Australian
Accounting Standards – Disclosure
of the Effect of New IFRS Standards
Not Yet Issued in Australia
Amendments to Australian
Accounting Standards –
Classification of Liabilities as
Current or Non-current
Amendments to Australian
Accounting Standards – Annual
Improvements 2018 – 2020 and
Other Amendment
Amendments to Australian
Accounting Standards – Covid-19
Related Rent Concessions
General Purpose Financial
Statements – Simplified Disclosures
for For-Profit and Not-for-Profit
Tier 2 Entities (Appendix C)
Application
Issue Date.
1 January 2022
December 2014
1 January 2020
December 2018
1 January 2020
December 2018
1 January 2020
May 2019
1 January 2020
November 2019
1 January 2022
March 2020
1 January 2022
June 2020
1 June 2020
June 2020
1 July 2021
March 2020
ii) Historical cost convention
Except for cash flow information, the financial statements have been prepared on an accruals basis and
are based on historical costs, modified, where applicable, by the measurement at fair value of selected
non-current assets, financial assets and financial liabilities.
iii) Critical accounting estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying the Group’s accounting policies.
The areas including a high degree of judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in Note 1(o).
26
ALTURA ANNUAL REPORT 2020
41
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
b)
Carrying value of exploration and evaluation expenditure
The Group has capitalised exploration and evaluation expenditure of $3.312 million as at 30 June 2020 (2019:
$3.265 million). This amount includes additions of $578,000 during the year for drilling and analysis, and
employee remuneration costs for the lithium project. Exploration and evaluation expenditure is capitalised as
an intangible asset until the Company has completed its assessment of the existence or otherwise of
recoverable resources. The ultimate recovery of the carrying value of exploration expenditure is dependent
upon the successful development and commercial exploitation or, alternatively, sale of the interest in the
tenements.
Until exploration and evaluation activities have reached a stage where the assessment is complete, including
the forecasting of cash flows to assess the fair value of the expenditure, there is an uncertainty as to the carrying
value of the expenditure.
The Directors are of the opinion that the exploration expenditure is recoverable for the amount stated in the
financial report.
c)
Principles of consolidation
i)
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Altura
Mining Limited (‘Company’ or ‘Parent Entity’) as at 30 June 2020 and the results of the subsidiaries for the
year then ended. Altura Mining Limited and its subsidiaries together are referred to in this financial report
as the Group or Consolidated Entity.
The Group controls an entity when the Group is exposed to or has rights to variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity.
A list of controlled entities is contained in Note 26 to the financial statements. All Australian controlled
entities have a June financial year-end and all other controlled entities have a December financial year
end.
All inter-company balances and transactions between entities in the Group, including any unrealised
profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistencies with those policies applied by the Group.
Where controlled entities have entered or left the Group during the year, their operating results have been
included from the date control was obtained or until the date control ceased.
Non-controlling interests, being that portion of the profit or loss and net assets of subsidiaries attributable
to equity interests held by persons outside the Group, are shown separately within the equity section of
the Consolidated Balance Sheet and in the Consolidated Statement of Profit and Loss. Losses applicable
to the non-controlling interest in a consolidated subsidiary are allocated against the controlling interest
except to the extent that the non-controlling interest has a binding obligation and is able to make additional
investment to cover the losses. If in future years the subsidiary reports profits, such profits are allocated
to the controlling interest until the non-controlling interest’s share of losses previously absorbed by the
controlling interest have been recovered.
The acquisition method of accounting is used to account for business combinations by the Group.
ii) Associates
Associates are all entities over which the Group has significant influence but not control or joint control,
generally accompanying a shareholding between 20% and 50% of voting rights. Investments in associates
are accounted for using the equity method of accounting, after initially being recognised at cost. The
Group’s investments in associates includes goodwill identified on acquisition.
The Group’s share of its associates post-acquisition profit or losses is recognised in profit or loss, and its
share of post-acquisition other comprehensive income is recognised in other comprehensive income. The
cumulative post-acquisition movements are adjusted against the carrying amount of the investment.
Dividends receivable from associates are recognised as a reduction in the carrying amount of the
investment.
27
ANNUAL REPORT 2020 ALTURA
42
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
iii) Changes in ownership interests
The Group treats transactions with non-controlling interests that do not result in a loss of control as
transactions with equity owners of the Group. A change in ownership interest results in an adjustment
between the carrying amounts of the controlling and non-controlling interests to reflect their relative
interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling
interests and any consideration paid or received is recognised in a separate reserve within equity
attributable to the owners of Altura Mining Limited.
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. This
fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, jointly controlled entity or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group had
directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in
other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly controlled entity or an associate is reduced but joint control or
significant influence is retained, only a proportionate share of the amounts previously recognised in other
comprehensive income are reclassified to profit or loss where appropriate.
d) Business combinations
The acquisition method of accounting is used to account for all business combinations, including business
combinations involving entities or businesses under common control, regardless of whether equity instruments
or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the
fair values of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The
consideration transferred also includes the fair value of any contingent consideration arrangement and the fair
value of any pre-existing equity interest in the subsidiary. Acquisition related costs are expensed as incurred
with the exception of stamp duty. Identifiable assets acquired and liabilities and contingent liabilities assumed
in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition
date.
On an acquisition by acquisition basis, the Group recognises any non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree and
the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the Group’s
share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has been
reviewed, the difference is recognised directly in profit or loss as a gain on acquisition of subsidiaries.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental
borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier
under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.
28
ALTURA ANNUAL REPORT 2020
43
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
e)
Income tax
The charge for current income tax expense is based on the result for the year adjusted for any non-assessable
or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by
the balance date for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates (and laws) that have been enacted, or substantially enacted by the
end of the reporting period and are expected to apply to the period when the asset is realised or liability is
settled. Deferred tax is credited in the income statement except where it relates to items that may be credited
directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences and unused tax losses can be utilised.
The amount of 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 economic 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 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 Group has a legally enforceable right to offset and intends to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Altura Mining Limited and some of its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. Each entity in the Group recognises its own current and
deferred tax amounts, except for any deferred tax liabilities (or assets) resulting from unused tax losses and
tax credits, which are immediately assumed by the parent entity. The current tax liability of each Group entity is
then subsequently assumed by the parent entity. The Group notified the Australian Tax Office that it had formed
an income tax consolidated group to apply from 1 July 2005. The tax consolidated group has entered a tax
sharing agreement under which the wholly-owned entities fully compensate Altura Mining Limited for any
current tax payable assumed and are compensated by Altura Mining Limited for any current tax receivable and
deferred tax assets relating to unused tax losses or unused tax credits that are transferred to Altura Mining
Limited under the tax consolidated legislation.
The amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice
from the head entity, which is issued as soon as practicable after the end of each financial year. The head entity
may also require payment of interim funding amounts to assist with its obligations to pay tax instalments.
Assets or liabilities arising under tax funding agreements within the tax consolidated entities are recognised as
current amounts receivable from or payable to other entities in the Group.
Any difference 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.
f)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating resources and
assessing performance of the operating segments has been identified as the Board of Directors.
29
ANNUAL REPORT 2020 ALTURA
44
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g) Property, plant, equipment and mine properties
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
Property
Freehold land and buildings are measured on the cost basis.
The carrying amount of land and buildings is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets.
Plant and equipment
Plant and equipment are measured on the cost basis. 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 Group and the cost of the item can be measured reliably. All other
repairs and maintenance are charged to the income statement during the financial period in which they are
incurred.
The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the recoverable amount
from these assets.
Mine Properties
Mine properties consist of two categories being mine properties in production and mine development.
Mine development expenditure relates to costs incurred to access a mineral resource. It represents those costs
incurred after the technical and commercial viability of extracting the mineral resource has been demonstrated
and an identified mineral reserve is being prepared for production (but is not yet in production). Development
expenditure is capitalised as either a tangible or intangible asset depending on the nature of the costs incurred.
Capitalisation of development expenditure ceases once the mining property is capable of commercial
production, at which point it is transferred into the relevant category of property, plant, equipment and mine
properties depending on the nature of the asset and depreciated over the useful life of the asset. Development
expenditure includes the direct costs of construction, pre-production costs, borrowing costs incurred during
the construction phase, reclassified exploration and evaluation assets (acquisition costs) and subsequent
development expenditure on the reclassified areas of interest. These costs are not amortised, the carrying value
is assessed for impairment whenever the facts and circumstances suggest that the carrying amount of the asset
may exceed the recoverable amount.
Mine properties in production includes all development expenditure incurred once a mine property is in
commercial production and is immediately expensed to the Statement of Profit and Loss except where it is
probable that future economic benefits will flow to the Group, in which case it is capitalised as mine properties
in production. Amortisation is provided on a unit of production basis which results in an amortisation charge
proportional to the depletion of the economically recoverable mineral resources (comprising proven and
probable mineral reserves). A regular review is undertaken to determine the appropriateness of continuing to
carry forward costs in relation to that area of interest. An impairment exists when the carrying value of mine
properties exceeds its estimated recoverable amount. The asset is then written down to its recoverable amount
and the impairment losses are recognised in profit or loss. These assets include all operating mine related
assets that are not included under land, buildings and plant and equipment.
Depreciation
The depreciable amount of all property plant and equipment assets excluding freehold land, is depreciated on
a straight-line basis over their useful lives to the Group commencing from the time the asset is held ready for
use. Assets classified as mine properties in production are depreciated using the units of production method
for the life of the mine. Leased assets are depreciated over the asset’s useful life or over the shorter of the
assets useful life and the lease term if there is no reasonable certainty that the Group will obtain ownership at
the end of the lease term.
30
ALTURA ANNUAL REPORT 2020
45
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
g) Property, plant, equipment and mine properties (continued)
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment
Leased plant and equipment
Mine properties units of production
Depreciation Rate
10% – 50%
25%
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance 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 the carrying amount. These gains
and losses are included in profit or loss.
h) Exploration and evaluation expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each separately
identifiable area of interest. These costs are only carried forward where the right of tenure for the area of
interest is current and to the extent that they are expected to be recouped through the successful development
and commercial exploitation of the area, or alternatively sale of the area, or where activities in the area have
not yet reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves.
Exploration and evaluation expenditure assets acquired in a business combination are recognised at their fair
value at the acquisition date.
Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of
interest are demonstrable, the exploration and evaluation assets attributable to that area of interest are first
tested for impairment and then reclassified to mining development.
Accumulated costs in relation to an abandoned area are written off in full against the result in the year in which
the decision to abandon the area is made.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
i)
Leases
The Group lease various offices and a warehouse. Rental contracts are typically made for fixed terms but may
have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different
terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used
as security for borrowing purposes.
Until the 2019 financial year, leases of property, plant and equipment were classified as either finance or
operating leases. Payments made under operating leases (net of any incentive received from the lessor) were
charged to the profit or loss on a straight-line basis over the period of the lease.
From 1 July 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at
which the leased asset is available for use by the Group. Each lease payment is allocated between the liability
and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is
depreciated over the shorter of the assets useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of the following lease payments.
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable
• Variable lease payment that are based on an index or a rate
31
ANNUAL REPORT 2020 ALTURA
46
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
• Amounts expected to be payable by the lessee under residual value guarantees
• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used, being the rate that the lessees would have to pay
to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar
terms and conditions.
Right-of-use assets are measured at cost comprising the following:
The amount of the initial measurement of lease liability
• Any lease payments made at or before the commencement date less any lease incentives received
• Any initial direct costs, and
• Restoration costs
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line
basis as an expense in profit or loss. Short term leases are leases with a lease term of 12 months or less. Low-
value assets comprise IT equipment.
j)
Impairment of non-financial assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested
annually for impairment or more frequently if events or changes in circumstances indicate that they might be
impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An impairment loss is recognised immediately in profit or loss for
the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is
the higher of an asset’s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or
groups of assets (cash generating units, “CGUs”). For the purposes of goodwill impairment testing, CGUs to
which goodwill has been allocated are aggregated so that the level at which impairment is tested reflects the
lowest level at which goodwill is monitored for internal reporting purposes. The goodwill acquired in a business
combination, for the purpose of impairment testing, is allocated to CGUs that are expected to benefit from the
synergies of the combination.
Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the
impairment at the end of each reporting period.
k) Financial assets
For the current period, the Group has elected to measure loss allowances on trade receivables using a life-time
expected loss model. The Group has also used the practical expedient of a provisions matrix using a single loss
rate approach to approximate the expected credit losses. These provisions are considered representative
across all business and geographical segments of the Group based on historical credit loss experience.
The standard requires that for financial liabilities designated at fair value through profit or loss (FVTPL) any
change in fair value arising as a consequence of a change in the company’s own credit risk should be recognised
in other comprehensive income rather than profit or loss.
Investment in shares in unlisted companies, which do not have a quoted market price and whose fair value
cannot be reliably measured, are classified as available-for-sale and are measured at cost. Gains or losses are
recognised in profit or loss when the investments are derecognised or impaired.
l)
Impairment of financial assets
The Group assess at the end of each reporting period whether there is objective evidence that a financial asset
or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a result of one or more
events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has
an impact on the estimated future cash flows.
32
ALTURA ANNUAL REPORT 2020
47
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
of the financial asset or group of financial assets that can be reliably estimated. In the case of equity securities
classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is
considered as an indicator that the securities are impaired. If any such evidence exists for available-for-sale
financial assets, the cumulative loss, measured as the difference between the acquisition cost and the current
fair value, less any impairment loss on that financial asset previously recognised in profit or loss, is reclassified
from equity and recognised in profit or loss. Impairment losses recognised in profit or loss on equity
instruments classified as available-for-sale are not reversed through profit or loss.
If there is evidence of impairment for any of the Group’s financial assets carried at amortised cost, the loss is
measured as the difference between the asset’s carrying amount and the present value of estimated future
cash flows, excluding future credit losses that have not been incurred. The cash flows are discounted at the
financial asset’s original effective interest rate. The loss is recognised in profit or loss.
m) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets
and amortised over the life of the asset, until such time as the assets are substantially ready for their intended
use or sale.
All other borrowing costs are recognised as an expense in the period in which they are incurred.
n) Employee benefits
i) Wages and salaries, annual leave and sick leave
Liabilities for employee benefits for wages, salaries, annual leave and accumulating sick leave that are
expected to be settled within 12 months of the reporting date represent present obligations resulting from
employees’ services provided to the reporting date and are calculated at undiscounted amounts based on
wage and salary rates that the Group expects to pay as at reporting date including related on costs, such
as superannuation, workers compensation, insurance and payroll tax and are included in trade and other
payables. Non-accumulating, non-monetary benefits such as housing and cars are expensed by the Group
as the benefits are used by the employee.
Employee benefits payable later than 12 months have been measured at the present value of the estimated
future cash outflows to be made for those benefits. In determining the liability, consideration is given to
employee salary and wage increases and the probability that the employee may satisfy any vesting
requirements. Those cash flows are discounted using market yields with terms to maturity that match the
expected timing of cash flows attributable to employee benefits.
ii)
Long service leave
The Group’s net obligation in respect of long term service benefits is the amount of future benefit that
employees have earned in return for their service to the reporting date. The obligation is calculated using
expected future increases in wages and salary rates including related on costs and expected settlement
dates and is discounted using an appropriate discount rate.
The current liability for long service leave represents all unconditional obligations where employees have
fulfilled the required criteria and also those where employees are entitled to a pro rata payment in certain
circumstances and is included in the current provisions. The non-current provision for long service leave
includes the remaining long service leave obligations.
iii) Superannuation
Contributions made by the Group to defined contribution superannuation funds are recognised as an
expense in the period in which they are incurred.
33
ANNUAL REPORT 2020 ALTURA
48
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
iv) Equity-settled compensation
The Group operates an employee share ownership plan. Share-based payments to employees are
measured at the fair value of the instruments issued and amortised over the vesting periods. Share-based
payments to non-employees are measured at the fair value of goods or services received or the fair value
of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably
measured and are recorded at the date the goods or services are received. The corresponding amount is
recorded to the option reserve. The fair value of options is determined using the Black-Scholes pricing
model. The number of shares and options expected to vest is reviewed and adjusted at the end of each
reporting period such that the amount recognised for services received as consideration for the equity
instruments granted is based on the number of equity instruments that eventually vest.
o)
Significant accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the Group. The
resulting accounting estimates, will, by definition, seldom equal the related actual results. Management has
identified the following significant accounting policies for which significant judgements, estimates and
assumptions are made.
i)
Significant accounting estimates and assumptions
Critical accounting estimates and judgements
Following is a summary of the key assumptions concerning the future, and other key sources of estimation
and accounting judgements at reporting date that have not be disclosed elsewhere in these financial
statements.
a. Determination of resources and reserves
The Company estimates its ore resources and reserves is based on information compiled by
Competent Persons defined in the Australasian Code for Reporting Exploration Results, Mineral
Resources and Ore Reserves (December 2012), which is prepared by the Joint Ore Reserves
Committee (“JORC”) of the Australasian Institute of Mining and Metallurgy, Australian Institute of
Geoscientists and Minerals Council of Australia, known as the JORC Code. Reserves determined in
this way are used in the calculation of depreciation, amortisation and impairment charges, the
assessment of mine lives and for forecasting the timing of the payment of rehabilitation costs.
The amount of reserves that may actually be mined in the future and the Company’s estimate of
reserves from time to time in the future may vary from current reserve estimates. The current Life
of Mine (LOM) for the Altura Lithium Project is 26 years.
b. Exploration and evaluation expenditure
The application of the Group’s accounting policy for exploration and evaluation expenditure requires
judgement in determining whether it is likely that future economic benefits are likely in that area of
interest, which may be based on assumptions about future events or circumstances. Estimates and
assumptions may change if new information becomes available. If after expenditure is capitalised
information becomes available suggesting that the recovery of expenditure is unlikely, the amount
capitalised is written off in the Consolidated Statement of Profit and Loss in the period when the new
information becomes available.
c.
Impairment of non-financial assets
The Group assesses, at each reporting date, whether there are indications that an asset may be
impaired. If impairment indicators or triggers exist, or when annual impairment testing for an asset
is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is
the higher of an asset’s or cash generating unit’s (CGU’s) fair value less costs of disposal and its
value in use. It is not always necessary to determine both an asset’s fair value less costs to sell and
its value in use. If either of these amounts exceeds the asset’s carrying amount, the asset is not
impaired, and it is not necessary to estimate the other amount. The recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the carrying amount of an asset
or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.
34
ALTURA ANNUAL REPORT 2020
49
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o)
Significant accounting estimates and judgements (continued)
d. Rehabilitation
The calculation of the provisions for rehabilitation and the related mine development assets rely on
estimates of the cost to rehabilitate an area which is currently disturbed based on legislative
requirements and future costs. The costs are estimated on the basis of a mine closure plan. Cost
estimates take into account expectations about future events including the mine lives, the time of
rehabilitation expenditure, regulations, inflation and discount rates. When these expectations change
in the future, the provision and where applicable, the mine development assets are recalculated in
the period in which they change.
e. Derivatives
The fair value of financial instruments must be estimated for recognition and measurement
purposes.
The fair value of financial instruments traded in active markets such as 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 Group is the current bid price.
The fair value of financial instruments that are not traded in an active market are determined using
valuation techniques that use observable market data at the reporting date where it is available.
f.
Income taxes
The Group is subject to income taxes in Australia and jurisdictions where it has foreign operations.
Significant judgement is required in determining the provision for income taxes. There are
transactions and calculations undertaken during the ordinary course of business for which the
ultimate tax determination is uncertain. The Group estimates its tax liabilities based on the Group’s
understanding of the tax law. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred income
tax assets and liabilities in the period in which such determination is made. Deferred income tax
assets are recognised to the extent that it is probable that future tax profits will be available against
which deductible temporary differences and unused tax losses can be utilised.
g.
Share-based payment transactions
From time to time the Company has issued options to directors and employees. The Company
measures fair value of share-based payments using the Black-Scholes Pricing Model, using the
assumptions detailed in Note 23. This formula takes into account the terms and conditions under
which the instruments were granted.
h. Mines under construction
Expenditure is transferred from ’Exploration and evaluation assets’ to ‘Mine properties in
development’ which once the work completed to date supports the future development of the
property and such development receives appropriate approvals.
After transfer of the exploration and evaluation assets, all subsequent expenditure on the
construction, installation or completion of infrastructure facilities is capitalised in ’Mine properties
in development’. Development expenditure is net of proceeds from the sale of spodumene
concentrate extracted during the development phase to the extent that it is considered integral to
the development of the mine. Any costs incurred in testing the assets to determine if they are
functioning as intended, are capitalised, net of any proceeds received from selling any product
produced while testing. Where these proceeds exceed the cost of testing, any excess is recognised
in the statement of profit or loss and other comprehensive income. After production starts, all assets
included in ‘Mine properties in development’ are then transferred to ’Mine properties in production’
which is also a sub-category in ‘Property, plant, equipment and mine properties’.
In March 2019, the Altura Lithium Project recorded in ‘Mine properties in development’ was deemed
to have reached commercial production and transferred to ‘Mine properties in production’.
Judgement was involved in this determination.
35
ANNUAL REPORT 2020 ALTURA
50
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
o)
Significant accounting estimates and judgements (continued)
i. Mines under construction
COVID-19 Pandemic – Judgement has been exercised in considering the impacts of the COVID-19
Pandemic has or may have on Group. This consideration extends to the nature of product sold,
customers, supply chains, staffing and geographical regions in which the Group operates in. Other
than addressed above or in specific notes, there does not appear either any significant impact upon
the financial statements or any significant uncertainties with respect to events or conditions which
may impact the Group unfavourably as a reporting date or subsequently as a result of the COVID-19
Pandemic. The Board continues to actively monitor the situation.
p) Non-current assets (or disposal groups) held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use and a sale is considered highly
probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for
assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment
property that are carried at fair value and contractual rights under insurance contracts, which are specifically
exempt from this requirement.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to
fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of
an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain
or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is
recognised at the date of derecognition.
Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while
they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group
classified as held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as
held for sale are presented separately from other liabilities in the balance sheet.
A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale
and that represents a separate major line of business or geographical area of operations, is part of a single co-
ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively
with a view to resale. The results of discontinued operations are presented separately in the statement of profit
or loss.
q) Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for
which it is probable that an outflow of resources will be required to settle the obligation and the amount has
been reliably estimated.
i)
Rehabilitation costs
Provision is made for the Group’s estimated liability arising under specific legislative requirements and
the conditions of its exploration permits and mining leases for future costs expected to be incurred in
restoring mining areas of interest. The estimated liability is based on the restoration work required using
existing technology as a result of activities to date. The liability includes the cost of reclamation of the site,
including infrastructure removal and land fill costs. An asset is created as part of the mine development
asset, to the extent that the development relates to future production activities, which is offset by a current
and non-current provision for rehabilitation.
r)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value, net of bank overdrafts.
36
ALTURA ANNUAL REPORT 2020
51
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s) Revenue
Revenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected
to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer,
the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the
contract; determines the transaction price which takes into account estimates of variable consideration and the
time value of money; allocates the transaction price to the separate performance obligations on the basis of the
relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when
or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods
or services promised.
Variable consideration within the transaction price, if any, reflects concessions provided to the customer such
as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other
contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount'
method. The measurement of variable consideration is subject to a constraining principle whereby revenue will
only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with
the variable consideration is subsequently resolved. Amounts received that are subject to the constraining
principle are recognised as a refund liability.
The following is a summary of the revenue recognition for each revenue stream:
1) Mining services revenue – revenue from mining services provided by the Group is recognised at a point in
time upon delivery of the service to the customer, in accordance with the terms of the contract to provide
services.
2)
3)
Royalty revenue – revenue from royalties are recognised at a point in time when entitlement to a royalty
is established in accordance with the terms of the agreement.
Sales of product – revenue from the sale of product is recognised at a point in time, being when the
Group delivers the product to the buyer. In accordance with the contract, delivery is deemed to occur
when the product passes the ship’s rail in the port of shipment. At this point, the performance obligation
per the off-take agreement (contract) is satisfied relating to the delivery of product. A variable
consideration of 5% of the total invoice is recognised as revenue to the extent that it is highly probable
that a significant reversal in the amount of cumulative revenue recognised will not occur.
t)
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 relevant taxation authorities. 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 balance sheet are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
u) Foreign operations
The financial performance and position of foreign operations whose functional currency is different from the
Group’s presentation currency are translated as follows:
•
•
assets and liabilities are translated at exchange rates prevailing at balance sheet date; and
income and expenses are translated at monthly average exchange rates for the period.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve as a separate component of equity. These differences are recognised in the income
statement upon disposal of the foreign operation.
37
ANNUAL REPORT 2020 ALTURA
52
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
v)
Foreign currency transactions and balances
The functional currency of each of the Group’s entities is measured using the currency of the primary economic
environment in which the entity operates. The consolidated financial statements are presented in Australian
dollars which is the parent entity’s functional and presentation currency.
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 period end exchange rate.
Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date when
fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the income statement,
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
the income statement.
w) Goodwill and intangibles
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net
identifiable assets of the acquired subsidiary or associate at the date of acquisition. Goodwill on acquisitions of
subsidiaries is included in intangible assets. Goodwill on acquisitions of associates is included in investments
in associates. Goodwill is not amortised, it is tested for impairment at each reporting date or more frequently if
events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated
impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating
to the entity sold.
Goodwill is allocated to cash generating units (“CGUs”) for the purpose of impairment testing. The allocation is
made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the
goodwill arose.
x)
Financial liabilities
Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised
cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial
liability is derecognised.
y)
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
z)
Inventories
Consumables stores
Inventories of consumable supplies and spare parts expected to be used in the supply of services are valued at
cost.
Product and processing stock
Product and processing stock stockpiles are physically surveyed or estimated and valued at the lower of cost
or net realisable value. Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and costs of selling final product. Cost is determined by the weighted
average method and comprises direct purchase costs and an appropriate portion of fixed and variable overhead
costs, including depreciation and amortisation, incurred in converting materials into finished goods. Finished
goods consists of spodumene product ready for transport or shipment.
38
ALTURA ANNUAL REPORT 2020
53
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
aa) Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principal market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming they act in their economic best interest. For non-financial assets, the fair value measurement
is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for
which sufficient data are available to measure fair value, are used, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are selected
based on market knowledge and reputation. Where there is a significant change in fair value of an asset or
liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs
applied in the latest valuation and a comparison, where applicable, with external sources of data.
39
ANNUAL REPORT 2020 ALTURA
54
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
2.
FINANCIAL RISK MANAGEMENT
The Group’s principal financial instruments comprise receivables, payables, loans, finance leases, financial asset at
fair value through other comprehensive income, cash and short term deposits. These activities expose the Group to
a variety of financial risks: market risk (which includes currency risk, interest rate risk and price risk), credit risk and
liquidity risk. The Group manages these risks in accordance with the Group’s financial risk management policy. The
Group uses different methods and assumptions to measure and manage different types of risks to which it is exposed
at each balance date.
The Board reviews and approves policies for managing each of the Group’s financial risk areas. The Group holds the
following financial instruments:
FINANCIAL ASSETS
Cash and cash equivalents
Trade and other receivables
Held to maturity investments
Other financial assets
FINANCIAL LIABILITIES
Trade and other payables (note 16)
Borrowings
a) Market risk
2020
$’000
2,298
9,395
26
1,923
13,642
42,955
211,253
254,208
2019
$’000
9,494
2,149
78
1,286
13,007
40,778
179,612
220,390
Market risk is the risk that changes in market prices such as foreign exchange rates, securities prices and coal
prices will affect the Group’s income or the value of its holdings of financial investments.
i)
Foreign currency risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily in respect to the US dollar. Revenue is denominated in US dollars and a strengthening
of the Australian dollar against the US dollar has an adverse impact on earnings and cash flow settlement.
In particular, sales of spodumene concentrate are received in US dollars. Liabilities for some loans are
denominated in currencies other than the Australian dollar and a weakening of the Australian dollar
against other currencies has an adverse impact on earnings and cash flow settlement. In particular, Altura
Lithium’s loan for construction and commissioning of the mine is in US dollars (US$161.5 million), and
therefore repayment of the loan will be made in US dollars.
The Group’s overseas subsidiaries have a US dollar functional currency. This exposes the Group to foreign
exchange fluctuations upon conversion to AUD.
At 30 June 2020, the Group held funds in foreign currency amounting to US$585,000 (2019: US$3,934,000).
The Group does not currently enter into any hedging arrangements.
40
ALTURA ANNUAL REPORT 2020
55
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
2.
FINANCIAL RISK MANAGEMENT (continued)
Foreign currency risk sensitivity analysis
At 30 June 2020, the effect on profit and equity as a result of changes in the value of the Australian dollar
to the US dollar that management considers to be reasonably possible, with all other variables remaining
constant is as follows:
Change in profit
Improvement in AUD to USD by 11%
—
— Decline in AUD to USD by 11%
Change in equity
Improvement in AUD to USD by 11%
—
— Decline in AUD to USD by 11%
ii) Price risk
2020
$’000
674
(674)
674
(674)
2019
$’000
1,317
(1,317)
1,317
(1,317)
The Group is exposed to equity securities price risk. The Group currently does not have any hedges in place
against the movements in the spot price.
The Group's equity investments are publicly traded on the United States of America OTCBB and are not
quoted on any market Index. The table below summarises the impact of increases/decreases in the value
on the Group's equity investments as at balance date. The analysis is based on the assumption that the
equity pricing had increased/decreased by 10% with all other variables held constant and all the Group's
equity instruments moved according to the historical correlation with the index.
Change in profit
—
Increase in equity value by 10%
— Decrease in equity value by 10%
Change in equity
Increase in equity value by 10%
—
— Decrease in equity value by 10%
iii)
Interest rate risk
2020
$’000
2019
$’000
-
-
192
(192)
-
-
129
(129)
At balance date the Group’s debt was held at a fixed rate. For further details on interest rate risk refer to
Note 17.
Interest rate sensitivity analysis
At 30 June 2020, the effect on profit and equity as a result of changes in the interest rate that management
considers to be reasonably possible, with all other variables remaining constant would be as follows:
Change in profit
Increase in interest rate by 1%
—
— Decrease in interest rate by 1%
Change in equity
—
Increase in interest rate by 1%
— Decrease in interest rate by 1%
2020
$’000
(2,355)
2,355
(2,355)
2,355
2019
$’000
(1,987)
1,987
(1,987)
1,987
Term deposits have been treated as a floating rate due to the short-term nature of the deposits.
41
ANNUAL REPORT 2020 ALTURA
56
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
2.
FINANCIAL RISK MANAGEMENT (continued)
b)
Credit risk
Credit risk refers to the risk that a third party will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted the policy of only dealing with credit worthy counterparties and
obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial
loss from defaults.
The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses,
represents the Company's maximum exposure to credit risk.
c)
Liquidity risk
Liquidity risk includes the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group will be impacted in the following ways:
i) Will not have sufficient funds to settle transactions on the due date;
ii) Will be forced to sell financial assets at a value which is less than what they are worth; or
iii) May be unable to settle or recover a financial asset at all.
The Group manages liquidity risk by monitoring forecast cash flows.
d) Financial instrument composition and maturity analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed
period of maturity, as well as management’s expectations for the settlement period for all other financial
instruments. As such the amounts may not reconcile to the balance sheet.
Weighted
average
effective
interest
rate
Floating
interest
rate
Within 1
year
Fixed interest rate maturing
1 to 5 years
Over 5 years
Non-
interest
bearing
Total
2020
%
2019
%
2020
$’000
2019
$’000
2020
$’000
2019
$’000
2020
$’000
2019
$’000
2020
$’000
2019
$’000
2020
$’000
2019
$’000
2020
$’000
2019
$’000
The Group
Financial assets:
Cash & cash
equivalents
Trade and other
receivables
Financial assets
0.25%
1%
2,298
9,494
Term deposit
1%
1%
Total financial
assets
Financial
liabilities:
Trade & other
payables
-
-
Borrowings
15%
15%
Total financial
liabilities
-
-
-
-
-
-
2,298
9,494
-
-
-
-
-
-
-
-
-
26
26
-
-
-
-
-
-
78
78
-
-
-
-
-
-
-
-
-
-
-
-
-
- 211,253 179,612
- 211,253 179,612
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,298
9,494
9,395
2,149
9,395
2,149
1,923
1,286
1,923
1,286
-
-
26
78
11,318
3,435
13,642
13,007
42,955
40,778
42,955
40,778
-
- 211,253 179,612
42,955
40,778 254,208 220,390
42
ALTURA ANNUAL REPORT 2020
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
2.
FINANCIAL RISK MANAGEMENT (continued)
Trade and other payables are expected to be paid as follows:
Less than 6 months (note 16)
More than 6 months (note 16)
57
2020
$’000
42,455
500
42,955
2019
$’000
36,523
4,255
40,778
e)
Fair value measurements
i)
Fair value hierarchy
The Group uses various methods in estimating the fair value of financial instruments. AASB 13 Fair Value
Measurement requires disclosure of fair value measurements by level in accordance with the following
fair value measurement hierarchy:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
•
Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (as prices) or indirectly (derived from prices) (level 2); and
Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
(level 3)
•
The following table presents the Group’s financial assets and financial liabilities measured and recognised
at fair value at 30 June 2020 and 30 June 2019.
2020
Assets
Listed investments
Total assets
2019
Assets
Listed investments
Total assets
ii)
Valuation techniques
Level
1
$’000
Level
2
$’000
Level
3
$’000
Total
$’000
1,923
1,923
1,286
1,286
-
-
-
-
- 1,923
- 1,923
- 1,286
- 1,286
The fair value of financial instruments traded in active markets is based on quoted market prices at the
end of the reporting period. The quoted market price used for financial assets and liabilities held by the
Group is the closing price. These instruments are included in level 1.
Specific valuation techniques used to value financial instruments include:
• The use of quoted market prices or dealer quotes for similar instruments;
• Other techniques, such as discounted cash flow analysis, are used to determine the fair value for the
remaining financial instruments.
43
ANNUAL REPORT 2020 ALTURA
58
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
3. DISCONTINUED OPERATIONS
a) Description
During the reporting period the board has made several information packages available to various groups for
the purpose of attracting offers for the sale of the Tabalong tenements in Kalimantan, Indonesia. The board
considers that the presentation of the Tabalong Group as held for sale confirms its intent to dispose of these
assets.
The Group obtained an independent expert valuation of the Tabalong Group which included a range of valuation
cases. The Group adopted a middle range (preferred) valuation of US$2.75 million on a 100% equity basis. As a
result, an impairment loss of $4,196,242 was recorded to write down the asset to its fair value less costs to sell.
The ability to progress and complete the sale of the Tabalong Group has been affected by COVID-19.
Financial information relating to the discontinued operation for the period to the date of disposal is set out
below.
b) Financial performance and cash flow information of discontinued operations
The financial performance and cash flow information presented are for the year ending 30 June 2020.
Revenue
Impairment (loss)
Other income/ (expenses)
Loss before income tax
Income tax expense
Loss after income tax of discontinued operation
Loss from discontinued operations after income tax
Net cash Inflow/(outflow) from financing activities
Net increase/(decrease) in cash generated by the division
c)
Carrying amounts of assets and liabilities classified as held for sale
The carrying amounts of assets and liabilities as at 30 June 2020 were:
Cash
Other receivables *
Property, plant and equipment
Exploration at cost
Total assets of disposal group held for sale
Other payables
Borrowings ^
Total liabilities of disposal group held for sale
2019
$’000
-
-
(142)
(142)
-
(142)
(142)
2
2
2020
$’000
-
(4,196)
6
(4,190)
-
(4,190)
(4,190)
(9)
(9)
10
2,967
5
3,388
6,370
627
1,736
2,363
^ These funds were advanced by the minority shareholder in the Tabalong coal project in accordance with the loan agreement.
The facility has no defined repayment term.
* These unsecured amounts are due from a minority party in the Tabalong coal project. Their recoverability is dependent on
the commercial exploitation of certain mining tenements in the project. The timing of which is currently unknown, and as
such the amounts have not been discounted. No losses are expected on these amounts.
44
ALTURA ANNUAL REPORT 2020
59
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
4.
SEGMENT INFORMATION
The Group reports the following operating segments to the chief operating decision maker, being the Board of
Directors of Altura Mining Limited, in assessing performance and determining the allocation of resources. Unless
otherwise stated, all amounts reported to the Board are determined in accordance with accounting policies that are
consistent to those adopted in the annual financial statements of the Group.
The lithium mining segment was previously under construction and since commercial production was achieved in
March 2019, has derived its revenue from the sale of spodumene concentrate to customers. The exploration services
segment provides a range of drilling services to its customers, predominately mining and exploration companies.
The mineral exploration segment revenue comprises royalties received and interest earned on funds raised to carry
out the exploration activities.
An internally determined service rate is set for all intersegment transactions. All such transactions are eliminated
on consolidation of the Group’s financial statements.
Lithium
mining
$’000
Exploration
services
$’000
Mineral
exploration
$’000
Eliminations
Total
$’000
$’000
103,538
630
-
104,168
2,798
9
-
2,807
-
48
4,000
4,048
-
-
(4,000)
(4,000)
106,336
687
-
107,023
-
107,023
(27,168)
584
(2,400)
-
(28,984)
2020
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total consolidated revenue
Segment result
Other segments
Unallocated expenses net of
unallocated revenue
Profit / (loss) before income tax and
finance costs
Finance costs
Income tax revenue/(expense)
Profit / (loss) after income tax
Profit / (loss) from discontinued
operations
Net profit / (loss) for the year
Assets and liabilities
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
328,745
828
5,951
251,901
780
21,863
Other segment information
Exploration expenditure
Depreciation and amortisation
47
12,734
-
47
-
156
45
-
(28,985)
(60,631)
(21)
(89,637)
(4,190)
(93,827)
333,524
6,369
341,893
274,544
2,363
276,907
47
12,937
-
-
-
-
ANNUAL REPORT 2020 ALTURA
Lithium
mining
$’000
Exploration
services
$’000
Mineral
exploration
$’000
Eliminations
Total
$’000
$’000
37,802
2
-
37,804
1,597
115
1,333
3,045
-
55
-
55
-
-
(1,333)
(1,333)
39,399
172
-
39,571
-
39,571
6,290
(1,018)
(6,919)
-
(1,647)
60
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
4.
SEGMENT INFORMATION (continued)
2019
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total consolidated revenue
Segment result
Other segments
Unallocated expenses net of
unallocated revenue
Profit / (loss) before income tax and
finance costs
Finance costs
Income tax revenue/(expense)
Profit / (loss) after income tax
Profit / (loss) from discontinued
operations
Net profit / (loss) for the year
Assets and liabilities
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
321,925
1,253
3,722
232,331
1,002
719
Other segment information
Capital expenditure
Exploration expenditure
Depreciation and amortisation
66,535
1,670
3,883
76
-
128
10
-
190
46
-
(1,647)
(24,637)
(287)
(26,571)
(142)
(26,713)
326,900
9,903
336,803
234,052
1,906
235,958
66,621
1,670
4,201
-
-
-
-
-
ALTURA ANNUAL REPORT 2020
61
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
4.
SEGMENT INFORMATION (continued)
Geographical segments
The Group’s geographical segments are determined based on the location of the Group’s assets.
Exploration expenditure
Depreciation and amortisation
(369)
12,889
416
48
2020
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total revenue
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
2019
Revenue
External sales
Other income
Other segments
Total segment revenue
Unallocated revenue
Total revenue
Segment assets
Unallocated assets
Total assets
Segment liabilities
Unallocated liabilities
Total liabilities
Australia
$’000
Indonesia
$’000
Other
$’000
Eliminations
$’000
Total
$’000
103,538
678
4,000
108,216
2,798
9
-
2,807
-
-
-
-
-
-
(4,000)
106,336
687
-
(4,000)
107,023
334,467
822
235
273,537
783
224
Australia
$’000
Indonesia
$’000
Other
$’000
37,802
57
-
37,859
1,597
115
1,333
3,045
325,509
1,258
133
232,862
1,002
188
-
-
-
-
-
-
-
107,023
335,524
6,369
341,893
274,544
2,363
276,907
47
12,937
-
-
-
-
Eliminations
$’000
Total
$’000
-
-
(1,333)
(1,333)
-
-
-
-
-
39,399
172
-
39,571
-
39,571
326,900
9,903
336,803
234,052
1,906
235,958
66,621
1,670
4,201
Capital expenditure
Exploration expenditure
Depreciation and amortisation
66,621
1,527
4,070
-
143
131
-
-
-
The Group has a number of customers to whom it provides spodumene product and exploration services. The mining
group supplies two external customers in this segment who account for 40% (US$27.8 million) and 34% (US$23.6
million ) of mining group’s external revenue.
47
ANNUAL REPORT 2020 ALTURA
62
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
5. PROFIT / (LOSS) FROM ORDINARY ACTIVITIES
(a)
Revenue
Revenue from sales of product
Revenue from exploration services
Revenue from royalties
Total revenue from ordinary activities
(b)
Other income
Interest received
Profit on sale of assets
Other income
Total other revenues from ordinary activities
(c)
Cost of sales
Mining and processing costs
Royalty expenses
Depreciation and amortisation
Product inventory movement ^
Mining services drilling costs
Total cost of sales
2020
$’000
2019
$’000
103,538
507
2,291
106,336
3
2
682
687
102,239
9,257
12,777
(1,189)
598
123,682
37,802
792
805
39,399
55
115
2
172
29,849
6,103
4,013
(8,850)
846
31,961
^ Inventory movement includes a $12,215,815 (2019: Nil) write down to net
realisable value
(d)
Other expenses
Depreciation of plant & equipment
Total other expenses from ordinary activities
160
160
188
188
(e)
(f)
Net foreign exchange loss
The net foreign exchange loss is unrealised and relates to the
revaluation of the US$ funding facility and other US$ denominated
funds held by the Group.
Profit on sale of subsidiary
In July 2019 the Company sold its wholly owned subsidiary PT Asiadrill
Bara Utama (ABU) a cash amount of US$200,000 (A$296,000). ABU was
dormant, therefore the sale has an immaterial impact on the Groups
financial statements and is not disclosed as a discontinued operation.
(g)
Employee benefits expense
Employee share scheme expense
Bonus paid by way of issue of shares to directors and staff
Salaries and on-costs expense
Total employee benefits expense
201
-
4,247
4,448
1,217
125
4,383
5,725
48
ALTURA ANNUAL REPORT 2020
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
6.
EARNINGS / (LOSS) PER SHARE
(a) Basic earnings / (loss) per share
From continuing operations, attributable to the ordinary equity
holders of the Company
From discontinued operations
Total basic earnings per share attributable to the ordinary equity
holders of the Company
(b) Diluted earnings / (loss) per share
From continuing operations, attributable to the ordinary equity
holders of the Company
From discontinued operations
63
2020
cents per
share
2019
cents per
share
(3.59)
(0.17)
(3.75)
(3,59)
(0.17)
(1.39)
(0.01)
(1.40)
(1.39)
(0.01)
Total basic earnings per share attributable to the ordinary equity
(3.75)
(1.40)
holders of the Company
(c) Weighted average number of ordinary shares used as the denominator
in calculating the basic and diluted earnings per share.
2020
Number
2019
number
2,499,149,183
1,912,252,661
2020
$’000
2019
$’000
(d) Earnings used in the calculation of basic earnings per share reconciles to
net profit in the income statement as follows:
Net profit / (loss)
Less – profit /(loss) from discontinued operations
Earnings / (loss) used in the calculation of basic EPS
(93,736)
(91)
(93,827)
(26,566)
(99)
(26,665)
49
ANNUAL REPORT 2020 ALTURA
64
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
7.
INCOME TAX EXPENSE
(a)
The components of tax expense comprise:
Current Tax
Current year
Adjustments in respect of prior periods
Deferred Tax
Current year deferred tax
Total income tax expense / (benefit) per income statement
(b)
Income tax expense / (benefit) is attributable to:
Profit / (loss) from continuing operations
Profit / (loss) from discontinued operations
2020
$’000
2019
$’000
-
21
-
21
21
-
21
-
287
-
287
287
-
287
(c)
The prima facie tax on profit / (loss) before income tax is reconciled to
the income tax as follows:
Profit / (loss) from continuing operations
Profit / (loss) from discontinued operations
Profit / (loss) before tax
(89,616)
(4,190)
(93,806)
(26,284)
(142)
(26,426)
Income tax calculated at the Australian rate of 30% (2019 – 30%)
(28,142)
(7,928)
Increase in income tax due to:
Non-deductible expenses
Share compensation costs
Effect of current year tax losses not recognised
Under / (over) provision in prior year
Income tax expense / (benefit)
3,916
60
24,166
21
21
1,327
403
6,199
286
287
Deferred tax assets arising from tax losses are only recognised to the
extent that there are equivalent deferred tax liabilities. The remaining tax
losses have not been recognised as an asset because recovery of the
losses is not regarded as probable:
Tax losses not recognised – at 30% (2019 – 30%)
48,195
20,442
(d) Tax consolidation system
Legislation to allow groups, comprising a parent entity and its Australian resident wholly-owned entities, to
elect to consolidate and be treated as a single entity for income tax purposes was substantively enacted on 21
October 2002.
Altura Mining Limited and certain of its wholly-owned Australian subsidiaries are eligible to consolidate for tax
purposes and have elected to form an income tax group under the Tax Consolidation Regime effective 1 July
2005. The implementation of the tax consolidation group was formally recognised by the ATO on 22 July 2005
with start date for income tax consolidation 1 July 2005 and Altura Mining Limited as the head entity of the
group.
Entities within the tax-consolidated group have entered into a tax-sharing agreement with the head entity.
Under the terms of this agreement, Altura Mining Limited and each of the entities in the tax consolidated group
has agreed to pay a tax equivalent payment to or from the head entity, based on standalone tax payer basis.
Such amounts are reflected in amounts receivable from or payable to other entities in the tax consolidated
group.
50
ALTURA ANNUAL REPORT 2020
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
8.
CASH AND CASH EQUIVALENTS
Cash at bank and on hand
9.
TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
Provision for doubtful debts
65
2020
$’000
2019
$’000
2,298
9,494
9,591
(196)
9,395
3,195
(1,046)
2,149
Refer to note 1 for more information on the risk management policy of the
Group and the credit quality of the Group's trade receivables. Management
have considered the impact of COVID-19 on trade and other receivables and do
not anticipate a significant deterioration of recoverability beyond the level of
current provisioning.
2020 Consolidated
2019 Consolidated
0-30
days
$000
1,583
1,847
31-60
days
$000
3,746
104
61-90
days
$000
344
-
90+
days
$000
3,722
198
As at 30 June 2020, $7,812,000 (2019 $302,000) trade receivables were past due but not impaired.
10.
INVENTORIES
Consumables stores – at cost
Product and processing stock – at lower of cost and net realisable value #
# Write-down of inventories to net realisable value amounted to $12,215,815 (2019: Nil).
These were recognised as an expense during the year 30 June 2020 and included in costs
of sales in the Statement of Profit or Loss.
11. HELD TO MATURITY INVESTMENTS
Term deposits
The term deposits are held to their maturity of less than one year and carry a
weighted average fixed interest rate of 0.65% (2019: 1.0%). Due to their short-
term nature their carrying value is assumed to approximate their fair value.
Information about the Group’s exposure to credit risk is disclosed in Note 2.
51
Total
$000
9,395
2,149
2019
$’000
5,746
14,974
20,720
2020
$’000
6,352
16,163
22,515
26
26
78
78
ANNUAL REPORT 2020 ALTURA
66
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
12. OTHER CURRENT ASSETS
Financial assets (security deposits)
Prepayments
13. FINANCIAL ASSETS
Listed investments at fair value
Carried forward from previous year
Changes in fair value
Total listed investments at fair value
2020
$’000
2019
$’000
55
5,684
5,739
1,286
637
1,923
58
1,097
1,155
4,018
(2,732)
1,286
In November 2012 the Group acquired a 14.7% interest in Lithium Corporation,
Nevada USA by way of a non-brokered private placement. Lithium Corporation
is quoted on the US OTCBB (Over The Counter Bulletin Board).
14. PROPERTY, PLANT, EQUIPMENT AND MINE PROPERTIES
2020
Gross carrying amount
Balance at 30 June 2019
Additions
Increase/(decrease) in provision for
rehabilitation #
Transfers
Exchange difference
Disposals
Balance at 30 June 2020
Accumulated depreciation
Balance at 30 June 2019
Depreciation expense
Exchange difference
Disposals
Balance at 30 June 2020
Net book value
as at 30 June 2020
Property plant and
equipment
$’000
Mine properties
in production
$’000
Mine properties
in development
$’000
Total
$’000
10,120
2,336
-
-
27
(4,812)
7,671
7,876
552
22
(4,899)
3,551
290,342
3,310
6,441
-
-
-
300,093
3,906
11,815
-
-
15,721
4,120
284,372
-
-
-
-
-
-
-
-
-
-
-
-
-
300,462
5,646
6,441
-
27
(4,812)
307,764
11,782
12,367
22
(4,899)
19,272
288,492
# An increase or decrease is created to mine development asset from any movement in provision for rehabilitation costs to the
extent that the movement in provision relates to future production activities
52
ALTURA ANNUAL REPORT 2020
67
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
14. PROPERTY, PLANT, EQUIPMENT AND MINE PROPERTIES (continued)
2019
Gross carrying amount
Balance at 30 June 2018
Additions
Increase/(decrease) in provision for
rehabilitation #
Transfers
Exchange difference
Disposals
Balance at 30 June 2019
Accumulated depreciation
Balance at 30 June 2018
Depreciation expense
Exchange difference
Disposals
Balance at 30 June 2019
Net book value
as at 30 June 2019
Property plant and
equipment
$’000
Mine properties
in production
$’000
Mine properties
in development
$’000
Total
$’000
9,472
455
-
1,393
290
(1,490)
10,120
8,778
307
280
(1,489)
7,876
-
6,293
8,076
275,973
-
-
290,342
-
3,906
-
-
3,906
2,244
286,436
221,562
55,804
-
(277,366)
-
-
-
-
-
-
-
-
-
231,034
62,552
8,076
-
290
(1,490)
300,462
8,778
4,213
280
(1,489)
11,782
288,680
# An increase or decrease is created to mine development asset from any movement in provision for rehabilitation costs to the
extent that the movement in provision relates to future production activities
15. EXPLORATION AND EVALUATION
Exploration and evaluation expenditure at cost:
Carried forward from previous year
Incurred during the year
Transferred to property, plant and equipment and mine properties
Transferred to assets classified as held for sale
Written off during the year
Total exploration and evaluation expenditure
The recovery of expenditure carried forward is dependent upon the discovery
of commercially viable mineral and other natural resource deposits, their
development and exploitation, or alternatively their sale.
The Company's title to certain mining tenements is subject to Ministerial
approval and may be subject to successful outcomes of native title issues.
2020
$’000
2019
$’000
3,265
578
(313)
-
3,530
(218)
3,312
1,595
2,218
-
(548)
3,265
-
3,265
53
ANNUAL REPORT 2020 ALTURA
68
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
16. TRADE AND OTHER PAYABLES
Trade payables and accruals
Accrued interest on loan note facility
Prepaid revenue #
# In November 2018, Jiangxi Ganfeng Lithium Co. Ltd provided a prepayment of US$11
million for the future supply of spodumene concentrate. The repayment is made as
shipments are completed by returning 30% of the proceeds received. The final
prepayment was repaid in November 2019.
17. BORROWINGS
Current borrowings
Loan note facility
Other
Total current borrowings
Non-current borrowings
Loan note facility
Total non-current borrowings
2020
$’000
2019
$’000
28,864
14,091
-
42,955
18,920
12,248
9,610
40,778
16,049
1,687
17,736
191,693
191,693
179,100
512
179,612
-
-
Total borrowings
209,429
179,612
Reconciliation borrowings – loan note facility
Opening balance
Loan notes issued
Interest and fees capitalised
Exchange rate differences
Amortisation of transaction costs
Transaction costs incurred
Total borrowings – loan note facility
179,100
-
27,863
3,753
22,897
(25,871)
207,742
145,887
21,661
2,141
10,036
7,031
(7,656)
179,100
As at 30 June 2020, the 3
year term loan had an expiry date of August 2023 and an interest rate of 15%. The loan is
secured over all Altura Lithium Operations (ALO) assets, shares in ALO, AJM bank accounts and certain AJM
receivables. Transaction costs capitalised are amortised over the remaining life of the financial instrument.
-
In March 2020, the Company agreed with the loan note holders to extend the maturity date of the existing loan
facility by three years to August 2023 and to defer the February 2020 interest payment to February 2021. The
amendments to the loan note facility also included a waiver of the net debt to defined EBITDA ratio for each of the
periods ending 30 September 2019, 31 December 2019, 31 March 2020 and 30 June 2020. In consideration of these
amendments and waivers the Company agreed to pay an amendment fee of 5% of the aggregate principal amount
of the loan (including capitalised interest) due and payable in October 2020, a waiver fee of US$1.6 million within
60 days and subject to shareholder approval issue shares to the holders of the loan notes equal to 9.9 % of the
Company’s fully diluted capital. The shareholders approved the issue of 284,195,159 shares at 5 cents per share
following a general meeting held in April 2020.
Under the terms of the facility, the Company is required to comply with the following financial covenants:
a) For periods ending on 30 September 2018, the Company shall ensure that the net debt to defined EBITDA ratio
b) For quarterly reporting periods after the 30 September 2018 the net debt to defined EBITDA ratio shall not
shall not exceed the ratio of 2:1.
exceed the ratio of 1.5:1.
54
ALTURA ANNUAL REPORT 2020
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
18. SHORT TERM PROVISIONS
Employee benefits
Movements in provisions
Short term employee benefits
Opening balance
Provision increase / (decrease)
Expense incurred
Balance at year end
The aggregate employee entitlement liability recognised and included in the
financial statements is as follows:
Provision for employee entitlements:
Current
Total
19. CURRENT TAXATION & DEFERRED TAX LIABILITIES & ASSETS
(a)
Liabilities
Current
Income tax paid / payable
Non-Current
Deferred tax liability comprises:
Lease ROU asset
Tax allowances relating to exploration
Property, plant & equipment
Other
(b)
Assets
Non-Current
Deferred assets comprise:
Provisions
Revenue losses
Revenue losses not recognised
Lease liabilities
Unrealised foreign exchange loss
Other
Net deferred tax balance recognised in the Consolidated Balance Sheet
69
2020
$’000
2019
$’000
1,901
1,901
1,669
1,177
(945)
1,901
1,669
1,669
1,158
1,247
(736)
1,669
1,901
1,901
1,669
1,669
-
-
527
963
30,034
253
31,776
6,078
69,126
(48,195)
547
3,783
438
31,776
-
-
949
28,563
59
29,571
4,083
42,486
(20,442)
-
2,651
793
29,571
-
55
ANNUAL REPORT 2020 ALTURA
70
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
20. REHABILITATION PROVISION
Non-current provision
Rehabilitation and demobilisation
Movements in provisions
Rehabilitation and demobilisation
Opening balance
Provision increase/(decrease)
Expense incurred
Balance at year end
2020
$’000
2019
$’000
18,435
18,435
11,994
6,441
-
18,435
11,994
11,994
3,918
8,076
-
11,994
Directors have reviewed the rehabilitation provision and are confident that
inputs into the current calculation can be relied upon. Refer to Note 1o i)(d)
and Note 1q (i) for accounting policies in relation to the rehabilitation provision.
21. LEASES
The Group has adopted AASB from 1 July 2019 but has not restated comparatives for the 2019 reporting period, as
permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising
from the new leasing rules are therefore recognised in the opening balance sheet on 1 July 2019.
Set out below is a summary of the amounts disclosed in the Consolidated Balance Sheet:
Lease liability
Current
Non-current
Right of use assets
Properties
2020
$’000
2019
$’000
524
1,300
1,824
1,757
1,757
-
-
-
-
-
Adjustments recognised on adoption of AASB 16
On adoption of AASB 16, the group recognised lease liabilities in relation to leases which had previously been
classified as operating leases under the principles of AASB 117 Leases. These liabilities were measured at the
present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1
July 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 July 2019
was 5%.
The Company did not previously have any leases classified as finance leases therefore no adjustment is required.
Any remeasurements to the lease liabilities were recognised as adjustments to the related right-of-use assets
immediately after the date of initial application.
Operating lease commitments disclosed as at 30 June 2019
Discount using the lessee’s incremental borrowing rate at the date of initial
application
Lease liability recognised as at 1 July 2019
Of which are:
Current lease liabilities
Non-current lease liabilities
56
2019
$’000
2,582
(255)
2,327
503
1,824
2,327
ALTURA ANNUAL REPORT 2020
71
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
21. LEASES (CONTINUED)
The associated right-of-use assets for property leases were measured at the amount equal to the lease liability,
adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance
sheet as at 30 June 2019. There were no onerous lease contracts that would have required an adjustment to the
right-of-use assets at the date of initial application.
The change in accounting policy affected the following items in the balance sheet on 1 July 2019:
•
•
Right-of-use assets – increase by $2,327,000
Lease liabilities – increase by $2,327,000
There was no impact on retained earnings on 1 July 2019.
i)
Impact on segment disclosure and earning per share
Adjusted EBITDA, segment assets and segment liabilities for 30 June 2020 all increase as a result of the change
in accounting policy. Lease liabilities are now included in the segment liabilities, whereas finance lease
liabilities were previously excluded from segment liabilities. The following segment was affected by the change
in policy:
Adjusted
EBITDA
$000’s
Segment
Assets
$’000
Segment
Liabilities
$’000
Lithium mining
341
2,042
2,079
Earnings per share increased by 0.01 per share for the full year to 30 June 2020 as a result of adoption of AASB 16.
ii) Practical expedients applied
In applying AASB 16 for the first time, the Group has used the following practical expedients permitted by the
standard.
•
•
•
•
The use of a single discount rate to a portfolio of leases with reasonably similar characteristics
Reliance on previous assessments on whether leases are onerous
The accounting for operating lease with a remaining term of less than twelve months as at 1 July 2019 as
short-term leases the exclusion of initial direct cots for the measurement of the right-of-use asset at the
date of the initial application, and
The use of hindsight in determining the lease term where the contract contains a lease at the date of the
initial application. Instead, for contracts entered into before the transition date the group has relied on
its assessment made applying AASB 117 Interpretation 4 Determining whether an arrangement contains
a Lease
22. CONTRIBUTED EQUITY
Issued capital
2,986,243,275 (2019: 2,125,462,476) ordinary shares issued and fully paid
290,860
233,955
Fully paid ordinary shares
Balance at the beginning of the financial year
Issue of shares on vesting of performance
rights #
Shares issued in lieu of loan note fees (Refer
note 17)
Share placement / securities purchase plan
##
Share issue – Rights Offer ###
Share placement – Shanshan ####
Share placement – Sophisticated Investors
#####
Exercise of Listed Options
Share issue costs
Balance at the end of the financial year
2020
Number
2,125,462,476
-
$’000
233,955
-
2019
Number
$’000
1,819,866,474
8,000,000
192,893
2,944
284,195,159
14,210
-
-
-
152,585,610
200,000,000
224,000,000
30
-
2,986,243,275
-
9,155
22,400
11,200
-
(60)
290,860
297,596,002
-
-
-
-
-
2,125,462,476
38,687
-
-
-
-
(569)
233,955
# Nil shares were issued to directors and other key management personnel in 2020 on the vesting of performance rights (30 June
2019: 5,200,000).
57
ANNUAL REPORT 2020 ALTURA
72
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
21. CONTRIBUTED EQUITY (continued)
## The Company conducted a share placement and securities purchase plan offering during February and March 2019 at an issue
price of 13.0 cents per share. A total of 297.596 million shares were issued as follows:
•
•
•
Placement of 69.528 million shares to institutional and sophisticated investors on 13 February 2019.
Securities purchase plan issue of 107.594 million shares to existing eligible shareholders on 20 March 2019.
Further placement of 120.474 million shares on 26 March 2019 to related parties (following shareholder approval).
### On 20 November 2019 Altura announced that it had completed a non-renounceable Entitlement Offer raising a total of $9.156
million. The offer comprised 2 new shares for every 13 held at an offer price of 6 cents per share. A total of 152,585,610 shares were
issued.
#### Placement of 200,000,000 shares on 7 August 2019 to Shanshan Forever International Co., Limited at an issue price of 11.2
cents per share.
##### Placement of 224,000,000 shares in March and April 2020 to sophisticated investors at an issue price of 5 cents per share.
Fully paid ordinary shares carry one vote per share and carry the rights to dividends. Ordinary shares have no par
value.
Option and performance rights reserve
Movements in option and performance rights reserve
Opening balance
Share based payment expense
Other share based options
Performance rights exercised and transferred to contributed equity
Balance at year end
Foreign currency translation reserve
Movements in foreign currency translation reserve
Opening balance
Foreign currency translation differences
Balance at year end
The foreign currency translation reserve records exchange differences
arising on translation of a foreign controlled subsidiary.
Fair value reserve
Movements in fair value reserve
Opening balance
Change in fair value of financial assets
Balance at year end
2020
$’000
-
201
1,601
-
1,802
2019
$’000
1,602
1,217
-
(2,819)
-
(4,076)
(1,478)
(5,554)
(1,588)
(2,488)
(4,076)
756
637
1,393
3,488
(2,732)
756
The change in fair value reserve records valuation differences arising on the market
valuation of financial assets at fair value through other comprehensive income.
Refer to note 13 for reconciliation of movements in the year.
Capital management
Capital consists of ordinary share capital, retained earnings, reserves and net debt. The Board's policy is to maintain
a strong capital base in order to maintain investor, creditor and market confidence and to sustain future development
of the business. There were no changes to the consolidated entity's approach to capital management during the year.
Other than obtaining
58
ALTURA ANNUAL REPORT 2020
73
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
22. CONTRIBUTED EQUITY (continued)
consent from existing loan note holders, neither the Company nor any of its subsidiaries are subject to externally
imposed capital requirements. The Board effectively manages the Group’s capital by assessing the Group’s financial
risks and adjusting its capital structure in response to changes in these risks and in the market. These responses
include the management of debt levels and by share issues.
Please refer to note 17 for further details of the loan facility.
23. SHARE BASED PAYMENTS
During the year, the Company had the following share-based payments expenses:
Performance rights
Share options
Bonus shares
a) Performance Rights
2020
$’000
2019
$’000
201
-
-
201
1,217
-
125
1,342
In 2014 the Company approved a Long-Term Incentive Plan (LTIP) under which employees and directors of the
Group may be issued on a discretionary basis with performance rights over ordinary shares of Altura Mining
Limited. The purpose of this plan is to:
•
•
•
assist in the reward, retention and motivation of employees and directors;
align the interests of employees and directors more closely with the interests of shareholders by
providing an opportunity for employees and directors to receive an equity interest in the form of rewards;
and
provide employees and directors with the opportunity to share in any future growth in value of the
Company.
The Performance Rights lapse when employment ceases with Altura Mining Limited. The Performance Rights
have been granted for no consideration, and no amount is payable on the vesting or exercising of the
Performance Rights. All rights subject to the LTIP carry no rights to dividends and no voting rights, until
converted into ordinary shares.
The following table shows performance rights issued during the year ended 30 June 2020 and the value
attributed:
Number of
performance
rights
Expiry
Date
Fair Value
($/right)
Total Value
$’000
8,500,000
31 Jan 21
$0.062
527
The Performance Rights granted and outstanding under the LTIP as at 30 June 2020 are as follows:
Expiry Date
Granted
Vested
Unvested
31 Jan 21
8,500,000
-
8,500,000
59
ANNUAL REPORT 2020 ALTURA
74
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
23. SHARE BASED PAYMENTS (continued)
b) Share Options
During the year the Company issued unlisted options to LDA Capital. The valuation was performed using a
Black-Scholes model with the following assumptions resulting in a valuation of $1,601,318 (30 June 2019: Nil):
Number
Grant Date
Dividend yield (%)
Expected volatility
Risk Free interest rate (%)
Expected life of options (years)
Option exercise price ($)
Share price at grant date ($)
Fair value at grant date ($)
74,400,000
1 May 20
0%
78.70%
3.5%
3 years
$0.0586
$0.0460
$0.0215
The options granted and outstanding as at 30 June 2020 are as follows:
Expiry
Date
Options
Granted
Exercise
Price ($)
Number of
options not yet
exercised
1 May 23
74,400,000
$0.0586
74,400,000
24. KEY MANAGEMENT PERSONNEL COMPENSATION
a) Names and positions held of key management personnel in office at any
time during the financial year are:
Directors
James Brown
Paul Mantell
Allan Buckler
Dan O’Neill
BT Kuan
Xiaoyu Dai
Managing Director
Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director (appointed 10 September 2019)
Key Management Personnel
Rod Wheatley
Noel Young
Damon Cox
Phil Robinson
Chief Financial Officer (appointed 2 September 2019)
Group Financial Controller (retired on 29 February 2020)
Company Secretary
Chief Operating Officer (resigned on 1 September 2019)
b) Key management personnel remuneration
•
Short-term employee benefits
Long-term employee benefits
Post-employment benefits
Termination benefits
Share based payments
60
1,773,905
-
100,629
116,170
29,955
2,020,659
2,109,242
-
124,217
62,716
622,750
2,918,925
ALTURA ANNUAL REPORT 2020
75
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
24. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)
c) Performance Rights
Number of performance rights held by key management personnel
The number of performance rights in the Company held during the financial year by each director of Altura
Mining Limited and other key management personnel of the Group, including their personally related parties,
are set out below.
2020
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
X Dai i)
R Wheatley ii)
P Robinson iii)
N Young iv)
D Cox
2019
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
Z Tong v)
Balance at the
start of the
year
Granted as
compensation
Shares
issued/
rights lapsed
Balance at the
end of the
year
Vesting
31 Jan 2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
-
-
-
-
-
-
Balance at the
start of the
year
Granted as
compensation
Shares
issued/
rights lapsed
Balance at the
end of the
year
Vesting
30 Nov 2019
2,000,000
1,000,000
-
-
-
-
C Evans vi)
P Robinson iii)
N Young
D Cox
1,000,000
800,000
200,000
200,000
-
-
-
-
-
-
-
-
-
-
2,000,000
1,000,000
-
-
-
-
1,000,000
800,000
200,000
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
i) X Dai appointed as Non-Executive Director effective from September 2019
ii) R Wheatley appointed as Chief Financial Officer effective from September 2019
iii) P Robinson appointed Chief Operating Officer effective from February 2019 and resigned as Chief Operating Officer
effective from August 2019
iv) N Young resigned as Financial Controller effective from February 2020
v) Z Tong resigned as Non-Executive Director effective from April 2019
vi) C Evans resigned as Chief Operating Officer effective from January 2019
Details of performance rights awarded as compensation and shares issued on the vesting of the rights, together
with terms and conditions of the rights, can be found in the Directors’ Report and under this note.
61
ANNUAL REPORT 2020 ALTURA
76
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
24. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)
d) Share holdings
Number of shares held by key management personnel
The number of shares in the Company held during the financial year by each director of Altura Mining Limited
and other key management personnel (KMP) of the Group, including their personally related parties, are set out
below.
Balance at
start of the
year
Purchased
/ (sold)
Vesting of
performanc
e rights
2020
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
X Dai $
R Wheatley @
P Robinson
^
N Young *
D Cox
2019
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
Z Tong &
C Evans #
P Robinson
^
N Young
D Cox
30,088,301
35,273,084
311,773,371
13,633,336
23,000,000
-
-
1,000,000
18,641,801
1,875,000
28,518,301
33,503,084
194,839,756
13,633,336
21,000,000
-
1,000,000
200,000
17,574,411
1,675,000
-
-
-
-
61,537
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,200,000)
-
-
-
-
-
(1,500,000)
-
-
-
2,000,000
1,000,000
-
-
-
-
1,000,000
800,000
200,000
200,000
Placement
&
Securities
Purchase
Plan
1,700,000
1,626,154
147,965,134
-
3,538,463
-
-
-
820,000
-
770,000
770,000
116,933,615
-
2,000,000
-
-
-
867,390
-
Other
Balance at
the end of
the year
-
-
-
-
-
-
-
(1,000,000)
(19,461,801)
-
31,788,301
36,899,238
459,738,505
13,633,336
26,600,000
-
-
-
-
1,875,000
-
-
-
-
-
-
-
-
-
-
30,088,301
35,273,084
311,773,371
13,633,336
23,000,000
-
500,000
1,000,000
18,641,801
1,875,000
$ X Dai appointed as Non-Executive Director effective from September 2019
@ R Wheatley appointed as Chief Financial Officer effective from September 2019
^ P Robinson appointed Chief Operating Officer effective from February 2019 and resigned as Chief Operating Officer
effective from August 2019. These amounts represent the balance of shares held upon resignation
* N Young resigned as Financial Controller effective from February 2020. These amounts represent the balance of shares
held upon retirement
& Z Tong resigned as Non-Executive Director effective from April 2019
# C Evans resigned as Chief Operating Officer effective from January 2019. These amounts represent the balance of shares
held upon resignation.
62
ALTURA ANNUAL REPORT 2020
77
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
24. KEY MANAGEMENT PERSONNEL COMPENSATION (continued)
e) Option holdings
Number of listed options held by key management personnel
The number of listed options in the Company held during the financial year by each director of Altura Mining
Limited and other key management personnel (KMP) of the Group, including their personally related parties,
are set out below.
Balance at
start of the
year
Purchased /
(sold)
Placement
& Securities
Purchase
Plan
Other
Balance at
the end of
the year
2020
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
X Dai $
R Wheatley @
P Robinson ^
N Young *
D Cox
2019
J Brown
P Mantell
A Buckler
D O’Neill
B Kuan
Z Tong &
C Evans #
P Robinson ^
N Young
D Cox
385,000
385,000
58,466,808
-
1,000,000
-
-
-
385,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(385,000)
-
385,000
385,000
58,466,808
-
1,000,000
-
-
-
385,000
-
-
-
-
-
-
-
-
-
-
-
385,000
385,000
58,466,808
-
1,000,000
-
-
-
-
-
385,000
385,000
58,466,808
-
1,000,000
-
-
-
385,000
-
$ X Dai appointed as Non-Executive Director effective from September 2019
@ R Wheatley appointed as Chief Financial Officer effective from September 2019
^ P Robinson appointed Chief Operating Officer effective from February 2019 and resigned as Chief Operating Officer
effective from August 2019
* N Young resigned as Financial Controller effective from February 2020
& Z Tong resigned as Non-Executive Director effective from April 2019
# C Evans resigned as Chief Operating Officer effective from January 2019
25.
INVESTMENTS IN OTHER ENTITIES
a)
Joint operations
For the year ending June 2020 Altura Mining Limited holds no interests in any joint operations or ventures.
63
ANNUAL REPORT 2020 ALTURA
78
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
26.
INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned
subsidiaries in accordance with the accounting policy described in Note 1:
Name of entity
Altura Lithium Operations Pty Ltd
Altura Drilling Pty Ltd
Altura Minerals Pty Ltd
Minvest Australia Pty Ltd
Minvest International Corporation
Altura Asia Pte Ltd
Altura Mining Philippines Inc. *
PT Asiadrill Bara Utama
PT Altura Indonesia
PT Minvest Mitra Pembangunan
PT Cakrawala Jasa Pratama
PT Minvest Jasatama Teknik
PT Cybertek Global Utama
Country of
incorporation
Australia
Australia
Australia
Australia
Mauritius
Singapore
Philippines
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Indonesia
Ownership interest
2019
%
2020
%
100
100
100
100
100
100
40
-
100
100
100
100
100
100
100
100
100
100
100
40
100
100
100
100
100
100
* Altura Mining Limited through its wholly owned subsidiary, Altura Asia Pte Ltd holds 40% direct equity in Altura Mining Philippines
Inc. This entity is considered a subsidiary as the Group has full economic and management rights.
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries with
non-controlling interests in accordance with the accounting policy described in Note 1:
Name of entity
PT Velseis Indonesia *
PT Jasa Tambang Pratama #
Country of
incorporation
Indonesia
Indonesia
PT Cahaya Permata Khatulistiwa #
Indonesia
PT Suryaraya Permata Cemerlang #
Indonesia
PT Suryaraya Cahaya Khatulistiwa #
Indonesia
PT Suryaraya Cahaya Cemerlang #
Indonesia
PT Suryaraya Permata Khatulistiwa #
Indonesia
PT Suryaraya Pusaka #
PT Kodio Multicom
PT Marangkayu Bara Makarti
Indonesia
Indonesia
Indonesia
Principal activities Parent ownership
interest
2020
%
50
70
2019
%
50
70
70
70
70
70
70
70
56
56
70
70
70
70
70
70
56
56
Mining services
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Mining and
exploration
Non-
controlling
interest
2020
%
50
30
2019
%
50
30
30
30
30
30
30
30
44
44
30
30
30
30
30
30
44
44
Altura Mining Limited, Altura Lithium Operations Pty Ltd and Altura Minerals Pty Ltd are included within the tax
consolidation group.
# Altura Mining Limited through its wholly owned subsidiary, Altura Asia Pte Ltd holds 70% direct equity in these seven entities.
* Altura Mining Limited through its wholly owned subsidiary, Minvest International Corporation holds 50% direct equity in PT Velseis
Indonesia. This entity is considered a subsidiary as the Group has full management rights.
64
ALTURA ANNUAL REPORT 2020
79
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
26.
INTERESTS IN SUBSIDIARIES (continued)
Summarised financial information
Summarised financial information of the subsidiaries with non-controlling interests that are material to the
consolidated entity are set out below:
PT Velseis
Indonesia
PT Suryaraya
Pusaka
PT Kodio
Multicom
PT
Marangkayu
Bara Makarti
$’000
$’000
$’000
$’000
2020
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and
other comprehensive income
Revenue
Expenses
Profit / (loss) before income tax expense
Income tax expense / (benefit)
Profit / (loss) after income tax expense
Other comprehensive income
Total comprehensive income
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase / (decrease) in cash and cash
equivalents
Other financial information
Profit attributable to non-controlling interests
Accumulated non-controlling interest at the end
of reporting period
476
338
814
295
(201)
94
720
515
701
(186)
-
(186)
250
64
74
-
-
74
32
329
184
1,798
1,982
76
1,290
1,366
616
1,086
1,069
2,155
135
894
1,029
1,126
-
-
-
-
-
(3)
(3)
1
-
-
1
(1)
(6)
-
(3)
3
-
3
(8)
(5)
-
-
-
-
(2)
9
1,085
1,977
3,062
150
1,756
1,906
1,156
-
(5)
5
-
5
(8)
(3)
-
-
-
-
(2)
21
65
ANNUAL REPORT 2020 ALTURA
80
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
26.
INTERESTS IN SUBSIDIARIES (continued)
2019
Summarised statement of financial position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Summarised statement of profit or loss and
other comprehensive income
Revenue
Expenses
Profit / (loss) before income tax expense
Income tax expense / (benefit)
Profit / (loss) after income tax expense
Other comprehensive income
Total comprehensive income
Statement of cash flows
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Net increase / (decrease) in cash and cash
equivalents
Other financial information
Profit attributable to non-controlling interests
Accumulated non-controlling interest at the end
of reporting period
27. RELATED PARTIES
Transactions within the wholly-owned Group
PT Velseis
Indonesia
PT Suryaraya
Pusaka
PT Kodio
Multicom
PT
Marangkayu
Bara Makarti
$’000
$’000
$’000
$’000
557
341
898
270
(25)
245
653
793
802
(9)
-
(9)
34
25
89
-
-
89
12
297
180
1,685
1,865
-
1,262
1,262
603
-
-
-
-
-
(6)
(6)
1
-
-
1
(2)
(3)
1,063
915
1,978
1
876
877
1,101
-
3
(3)
-
(3)
(17)
(20)
-
-
-
-
(9)
11
1,061
1,792
2,853
5
1,720
1,725
1,128
-
5
(5)
-
(5)
(15)
(20)
-
-
-
-
(9)
23
The wholly-owned Group includes the ultimate parent entity in the wholly-owned Group, and wholly-owned controlled
entities.
The ultimate parent entity in the wholly-owned Group is Altura Mining Limited.
During the year the parent entity provided financial assistance to its wholly owned and controlled entities by way of
intercompany loans. The loans are unsecured, interest free and have no fixed term of repayment. Sales and
purchases between related parties within the Group have been eliminated upon consolidation. There were no further
sales or purchases from wholly-owned related parties during the financial year.
66
ALTURA ANNUAL REPORT 2020
81
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
27. RELATED PARTIES (continued)
Transactions other related parties
a)
b)
Altura announced in August 2019 that it had signed an Earn-in Agreement (Agreement) with lithium project
developer Sayona Mining Limited over its Pilbara lithium tenements. Sayona Mining Limited is a related party
due to common directors. Under the Agreement, Altura will spend $1.5 million on exploration across the project
portfolio over a three-year period to earn a 51% interest, with Sayona retaining the remaining project interest.
Sayona will retain the right to contribute to project evaluation and development in the future to participate in
the upside potential.
In October 2019, Mr Allan Buckler a director of the Group provided an unsecured loan via his controlled entity
Katsura Holdings Pte Ltd. The facility provided was for $2.878 million and was interest free. The loan facility
converted into Securities to the nominee of Katsura at the rate of two (2) Shares for every (13) existing shares
held by nominee of Katsura (this being the same terms as under the Rights offer) on the basis that the amount
lent to the Company would have otherwise been utilised by Katsura to subscribe for Shares in the Rights offer
itself.
The facility was provided on 16 October 2019 and was converted to shares on 20 November 2019.
Details of the conversion of the loan facility was as follows:
•
•
•
Loan amount
6 cents per share
Securities issued 47,965,134 ordinary shares
$2,877,908
c)
In February 2020, Mr Allan Buckler a director of the Group provided an unsecured loan via his controlled entity
Katsura Holdings Pte Ltd. The facility provided was for $5.0 million and was interest free. The loan facility
converted into Securities to the nominee of Katsura on the basis that the amount lent to the Company would
have otherwise been utilised by Katsura to subscribe for Shares in the Placement offer itself.
The facility was provided on 28 February 2020 and was converted to shares on 1 May 2020 following shareholder
approval on 30 April 2020.
Details of the conversion of the loan facility was as follows:
•
•
•
Loan amount
5 cents per share
Securities issued 100,000,000 ordinary shares
$5,000,000
28. NOTES TO STATEMENT OF CASH FLOWS
a) For the purpose of the statement of cash flows, cash includes cash on hand and in banks, and investments in
money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown
in the statements of cash flows is reconciled to the related items in the balance sheet as follows:
Cash at bank and on hand (Note 8)
Cash in assets classified as held for sale
Cash per statement of cash flows
Reconciliation to Statement of Cash Flows
For the purposes of the Statement of Cash Flows, cash and cash
equivalents comprise the following at 30 June:
Cash at bank and on hand
Short-term deposits
Cash at bank and on hand
•
67
2020
$’000
2019
$’000
2,298
10
2,308
2,308
-
2,308
9,494
19
9,513
9,513
-
9,513
ANNUAL REPORT 2020 ALTURA
82
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
2020
$’000
2019
$’000
28. NOTES TO STATEMENT OF CASH FLOWS (continued)
a) Reconciliation of operating profit / (loss) after income tax to net
cash used in operating activities
Operating loss after income tax
(93,827)
(26,713)
Adjustments for non-cash income and expense items:
Share based payments
Bonus paid by way of issue of shares to directors and staff
Loan facility fees
Depreciation of property, plant and equipment
Interest on funding facility
Foreign currency exchange rate movement
Profit on sale of subsidiary
Exploration expenditure written off
Profit on sale of assets
Impairment on assets held for sale
(Increase) / decrease in current tax prepaid
Changes in assets and liabilities:
(Increase) / decrease in receivables
(Decrease) / increase in other creditors and accruals
Increase in inventories
(Increase) / decrease in deposits and prepayments
Increase / (decrease) in current lease liabilities
Increase / (decrease) in current provisions
Net cash used in operating activities
b) Net debt reconciliation
Net debt
Cash and cash equivalents
Borrowings – repayable within one year
Borrowings – repayable after one year
Net debt
Cash and liquid investments
Gross debt – fixed interest rate
Gross debt – variable interest rate
Net debt
2020
$’000
201
-
26,425
12,937
16,202
3,691
(1,202)
218
(2)
4,196
(21)
(7,246)
214
(1,795)
(2,983)
(46)
232
(42,806)
2,308
(17,736)
(191,693)
(207,121)
2,308
(209,429)
-
(207,121)
2019
$’000
1,217
125
7,605
4,201
10,566
8,620
]-
-
-
-
-
93
18,065
(9,935)
(771)
-
511
13,584
9,513
(512)
(179,100)
(170,099)
9,513
(179,612)
-
(170,099)
68
ALTURA ANNUAL REPORT 2020
83
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
28. NOTES TO STATEMENT OF CASH FLOWS (continued)
Cash and cash
equivalents
Borrowings
due within 1
year
Borrowings
due after 1
year
Total
Net debt as at 30 June 2019
Cash flows
Foreign exchange adjustments
Other non-cash movements
Net debt as at 30 June 2020
9,513
(7,140)
(65)
-
2,308
(512)
(179,100)
(170,099)
(1,175)
-
(16,049)
(17,736)
-
(3,753)
(8,840)
(191,693)
(8,315)
(3,818)
(24,889)
(207,121)
c)
Acquisition of entities
The Group did not acquire any interest in entities during the year.
29. PARENT ENTITY DISCLOSURE
(a) Summary of financial information
The individual financial statements for the parent entity show the
following aggregate amounts:
Balance sheet
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits / (accumulated losses)
Total shareholder equity
Loss for the year
Total comprehensive loss for the year
(b) Contingent liabilities
Contingent liabilities are disclosed in Note 32.
(c)
Contractual commitments
No later than one year
Later than one year and not later than five years
Later than five years
69
2020
$’000
Parent
2019
$’000
Parent
3,260
220,511
3,149
3,149
217,362
290,860
1,802
(144,570)
148,092
1,960
141,950
523
523
141,427
233,955
-
(92,528)
141,427
(41,141)
(10,649)
(41,141)
(10,649)
-
-
-
-
55
3
-
58
ANNUAL REPORT 2020 ALTURA
84
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
30. AUDITORS’ REMUNERATION
Auditors of the Group – PKF and related network firms
a)
Audit of financial report
-
-
Group (PKF Brisbane)
Group (PKF (Perth)
Total audit of financial reports
Other non-audit services (PKF (Brisbane)
Total services provided by PKF
Other auditors and their related network firms
b)
Audit of financial report
-
Foreign Subsidiaries
Total audit of financial reports
Other non-audit services
Total services provided by other auditors
2020
$’000
2019
$’000
48
77
125
84
209
17
17
1
18
122
-
122
-
122
-
-
-
-
31. SUBSEQUENT EVENTS
Subsequent to the end of the financial year the following events occurred:
31 July 2020 – Formal request from the Group to its Senior Secured Loan Note Holders (LNH), to extend payment
obligations to 31 October 2020 to allow re-structure process to complete.
5 August 2020 – Draft Waiver Letter issued to LNH, subsequently LNH instructed their legal counsel to provide a
letter extension (1 week) to allow formal documentation to be completed.
10 August 2020 – The Group entered a trading halt and subsequent suspension from official quotation while
refinancing activities were undertaken.
25 August 2020 – LNH provided waiver of all financial obligations and covenants until 31 October 2020 – with 2
milestones:
Milestone 1 – 10 September 2020 to present to the LNH some form of non-binding term sheet for an equity,
debt, merger proposal; and
Milestone 2 – 10 October 2020 to present to the LNH a binding proposal to the LNH and be announced to the
market.
26 August 2020 – A credible and well-known participant in the Australian equity market (Bookrunner) commenced a
non-deal roadshow to gauge market interest.
10 September 2020 – A prominent Australian-based mining and processing company provided a non-binding
indicative offer (NBIO) to Altura and presented to the LNH in accordance with the waiver agreement.
7 October 2020 – LNH were issued with a Term Sheet regarding the recapitalisation process. The Term Sheet was
non-binding but allowed the Bookrunner to provide details to equity groups and allow a structure to be agreed
with those groups.
9 October 2020 – LNH provided an extension of Milestone 2 from 10 October 2020 to 24 October 2020 due to one large
equity group requiring more due diligence time. AJM paid $140,000 of the LNH legal fees for document drafting
as part of the recapitalisation process.
14 October 2020 – LNH advised the Company to proceed with document drafting for the re-structure based on the
key terms agreed in the Term Sheet – LNH stated that in essence of time the parties should proceed with formal
documentation rather than trying to bind the Term Sheet, this followed a few days of negotiation on the Term
Sheet.
21 October 2020 – An existing offtake partner committed to an A$66 million cornerstone investment for the proposed
equity process, subject to transaction approval at their board meeting on 21 October 2020 – the deal would be
announced on the same day, the equity process would launch on week of 26 October 2020. LNH requested Altura
hold off on the Offtake partner’s approval until formal documents completed (target 23 October 2020), this would
defer approval until Offtake partner’s next board meeting on 29 October 2020. Altura in good faith accepted the
LNH request in anticipation of completion and execution of signing documents on the 23 October 2020.
22 October 2020 – The Bookrunner provided a detailed letter of support to the recap process, the Bookrunner also
issued LNH with a process timeline and request for them to acknowledge support and terms of the agreements.
23 October 2020 – The Company’s legal counsel provided LNH legal counsel with final drafts of all legal agreements
for review and execution.
70
ALTURA ANNUAL REPORT 2020
85
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
31. SUBSEQUENT EVENTS (continued)
Sunday 25 October 2020 – Altura becomes aware of a potential deal (from a credible media outlet) being struck by
the LNH and other parties involved in the process – request sent to other parties for clarification and compliance
to the existing Non-Disclosure Agreements in place between Altura and said parties;
25 October 2020 – Notice of Default issued to Altura by LNH (midnight) citing breach of Milestone 2, which came
about by Altura in good faith agreeing to the LNH request on the 21 October 2020 of the announcement of the
Offtake partner’s deal and the request by the LNH on the 14 October 2020 to proceed with formal documentation
on the recapitalisation.
26 October 2020 – Notice of Receivers and Administrators received, Altura had no time to challenge, KordaMentha
(KM) appointed as Receivers and Managers.
26 October 2020 – Cor Cordis (CC) appointed as Administrators.
28 October 2020 PLS announce conditional agreement to acquire Altura Lithium Operations stating PLS had entered
into an Implementation Deed with the senior secured loan noteholders of Altura
29 October 2020 – KM announce the LNH have entered into an implementation agreement with Pilbara Minerals
(PLS).
1 December 2020 – PLS announce a share sale agreement to acquire the Group’s wholly owned subsidiary Altura
Lithium Operations Pty Ltd (ALO).
equity raising by PLS.
11 December 2020- Creditors approve the ALO deed of company arrangement (DOCA) subject to completion of an
20 January 2021 – PLS completes the acquisition of ALO as per the terms of the share sale agreement. ALO was sold
for a total consideration of $270 million. As at the date of this report, Directors are unable to quantify the
financial impact on operations as a result of the transaction. KM retire as Receivers and Managers.
5 March 2021 – ACN 647 358 987 Pty Ltd entered into a DOCA resulting in the CC deed of administration ceasing and
administration for the Group reverting to its Directors. ACN 647 358 987 Pty Ltd has loaned funds to Altura and
provided funds to the Altura Mining Limited Creditors Trust.
16 April 2021 – Altura announced the appointment of Alex Cheeseman as CEO of the company, the resignation of Paul
Mantell as a director and the appointment of John Lewis as Company Secretary.
3 May 2021 Altura announced it had executed a Letter of Intent (LOI) to enter into an Earn-in Option Agreement (EOA)
for 60% project equity in Lithium Corporation’s (“Lithium Corp.”) Fish Lake Valley (FLV) Project located in
central-west Nevada, USA
Post the disposal of ALO and the balance of the Australian based assets, the Altura Group retains its interest in the
Tabalong Project (whilst searching for a suitable party to divest the project) and investment in Lithium Corporation,
Nevada USA. Funding provided from the Group’s current Australian Directors has funded payment of the remaining
liabilities and providing sufficient working capital to sustain its operations during the Group’s re-quotation process
on the ASX.
Material contracts with Key Management Personnel post June 2020
Alex Cheeseman, Chief Executive Officer – (Appointed 16 April 2021) the agreement is of no fixed term and allows for
payment of an annual cash salary, reviewed each year, and superannuation. Six months’ notice of termination by
either party is required, with a separation allowance equivalent to six month’s gross salary to be paid if employment
was terminated by the Company
Key Management Personnel Remuneration post June 2020
During the period after the financial year ending 30 June 2020 the following payments, we made to key management
personnel in accordance with their service contracts. Remuneration excludes termination payments as the details
require confirmation from KordaMentha and performance rights require completion of the re-listing process on the
ASX.
Estimated remuneration of Key Management Personnel Remuneration
Executive Directors
310,185
Non-Executive Directors
83,700
Other key management personnel
180,832
No further events have occurred since 20 May 2021, which would require disclosure in the financial report.
71
ANNUAL REPORT 2020 ALTURA
86
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
32. CONTINGENT LIABILITIES
Details and estimates of maximum amounts of contingent liabilities for which no provision is included in the financial
statements are as follows:
The bankers of the Group and parent entity have issued undertakings and
guarantees to the DME (Northern Territory Department of Mines and Energy)
and various other entities.
A subsidiary of the Group has entered into a conditional loan agreement
Civmec Legal Action
2020
$’000
2019
$’000
26
78
On 17 July 2020, Altura was advised by Civmec Construction and Engineering Pty Ltd that it had lodged a writ and
statement of claim in the Supreme Court of Western Australia against Altura Lithium Operations Pty Ltd (ALO) in
relation to the process plant construction and installation work at the Altura Lithium Project. On 20 July 2020, Altura
was served with this statement of claim.
Altura proceeded to defend these proceedings until the Group was placed under external management. ALO was
acquired by Pilbara Minerals Limited (PLS) following a deed of company arrangement (DOCA) process. As a result of
the DOCA process and acquisition by PLS, ALO is no longer a subsidiary of the Company. The Company was not a
party to the proceedings. The proceedings were dismissed by a consent order on 4 February 2021.
No losses are anticipated in respect of any of the above contingent liabilities.
72
ALTURA ANNUAL REPORT 2020
87
NOTES TO THE
FINANCIAL STATEMENTS continued
Altura Mining Limited and Controlled Entities
Notes to the Financial Statements (continued)
FOR THE YEAR ENDED 30 JUNE 2020
33. COMMITMENTS
In order to maintain an interest in the mining and exploration tenements in which the Group is involved, the Group is
committed to meeting the conditions under which the tenements were granted and the obligations of any joint venture
agreements. The timing and amount of exploration expenditure commitments and obligations of the Group are
subject to the minimum expenditure commitments required by the relevant State Departments of Minerals and
Energy, and may vary significantly from the forecast based upon the results of the work performed which will
determine the prospectivity of the relevant area of interest.
One of the Group's subsidiaries has contracted to provide up to a US$4 million facility to a minority party in the
Tabalong coal project. The provision of the facility is contingent on project milestones being achieved. The facility will
be repaid in accordance with the loan agreement between the parties. The likelihood of this proceeding is highly
probable.
a) Exploration work
The Company has certain obligations to perform minimum exploration work and expend minimum amounts on
its wholly owned mining tenements to meet minimum expenditure requirements. This expenditure will only be
incurred should the Group retain its existing level of interest in its various exploration areas and provided access
to mining tenements is not restricted. These obligations will be fulfilled in the normal course of operations,
which may include exploration and evaluation activities.
b) Exploration
The Group has the following estimated exploration expenditure commitments at 30 June 2020.
No later than one year
Later than one year and not later than five years
Later than five years
2020
$’000
2019
$’000
252
348
1,025
1,625
d) Asset acquisitions
The Group has the following commitments for asset acquisitions at 30 June 2020.
Capital expenditures contracted for at the balance sheet date but not
recognised in the financial statements
Property, plant and equipment
Mine development at cost
2020
$’000
2019
$’000
622
255
877
425
-
-
425
978
-
978
c) Operating leases
As of June 2020, all leases held by the Company have been measured in accordance with AASB 16 Leases and
disclosed within lease liabilities in Note 21. The Company adopted AASB 16 on 1 July 2019 using the modified
retrospective approach. Comparatives have therefore not been restated and represent amounts committed at
30 June 2019 date but not recognised as liabilities.
The commitment in respect of these leases is:
No later than one year
Later than one year and not later than five years
Later than five years
-
-
-
-
853
2,571
-
3,424
73
ANNUAL REPORT 2020 ALTURA
88
DIRECTORS'
DECLARATION
In the Directors’ opinion:
(a) The financial statements and notes set out
on pages 34 to 87 are in accordance with the
Corporations Act 2001 and:
a. comply with Accounting Standards and the
Corporations Regulations 2001; and
b. give a true and fair view of the consolidated
entity’s financial position as at 30 June 2020
and its performance for the financial year
ended on that date;
(b) the financial statements and notes also comply
with International Financial Reporting Standards
as set out in Note 1;
(c) there are reasonable grounds to believe that the
Company will be able to pay its debt as and when
they become due and payable.
The Directors have been given the declarations
by the Chief Executive Officer and the Chief
Financial Officer required under section 295A of the
Corporations Act 2001.
This declaration is made in accordance with a
resolution of the directors.
James Brown
Director
Brisbane, 25 May 2021
ALTURA ANNUAL REPORT 2020 INDEPENDENT
AUDITOR'S
REPORT
90
PKF Perth
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ALTURA MINING LIMITED
Report on the Financial Report
Opinion
We have audited the accompanying financial report of Altura Mining Limited (the company) and its controlled
entities (consolidated entity), which comprises the consolidated balance sheet as at 30 June 2020, the
consolidated statement of profit and loss, the consolidated statement of other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, notes comprising a summary of significant accounting policies and other explanatory information, and
the directors’ declaration of the company and the consolidated entity comprising the company and the entities it
controlled at the year’s end or from time to time during the financial year.
In our opinion, the financial report of Altura Mining Limited is in accordance with the Corporations Act 2001,
including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020 and of its
performance for the year ended on that date; and
ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
As detailed in the subsequent events note the consolidated entity was placed into external administration and
receivership on the 26th October 2020. The consolidated entity’s wholly owned subsidiary Altura Lithium
Operations Pty Ltd, which owned the Altura Lithium Project, was sold to a third party to payout the consolidated
entity’s secured noteholders.
The consolidated entity was administered externally until it was returned to the Directors on the 5th March 2021.
During this period a deed of company arrangement (DOCA) was executed, funds were loaned to the
consolidated entity for working capital and a creditors trust was established.
Level 4, 35 Havelock Street, West Perth, WA 6005
PO Box 609, West Perth, WA 6872
T: +61 8 9426 8999 F: +61 8 9426 8900 www.pkfperth.com.au
PKF Perth is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions
or inactions of any individual member or correspondent firm or firms.
Liability limited by a scheme approved under Professional Standards Legislation.
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ALTURA ANNUAL REPORT 2020
91
PKF Perth
The Directors have decided to seek a relisting of the company on the ASX. To do so they will need to re-comply
with a number of ASX requirements. The purpose of the relisting will be to raise sufficient capital to implement
the Key Business Strategies detailed in the Directors Report. This, along with other matters as set forth in Note
1, a), i), indicate the existence of a material uncertainty that may cast significant doubt about the consolidated
entity’s ability to continue as a going concern and therefore, the consolidated entity may be unable to realise its
assets and discharge its liabilities in the normal course of business.
The financial report of the consolidated entity does not include any adjustments in relation to the recoverability
and classification of recorded asset amounts or to the amounts and classification of liabilities that might be
necessary as a result of the external administration and receivership.
Independence
We are independent of the consolidated entity in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
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 for the year ended 30 June 2020. These matters may not be significant post 30 June
2020. The reader of this report must refer to the subsequent events note in the financial report. 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. For each matter below, our description of how our
audit addressed the matter is provided in that context.
1.
Altura Lithium Project Mine Assets
Why significant
How our audit addressed the key audit matter
As at 30 June 2020 mine assets relating to the
Altura Lithium Project of $284.4 million have been
recognised as a depreciating asset as disclosed
in Note 14. The consolidated entity’s accounting
policy in respect of the Altura Lithium Project
mine assets is detailed in Note 1, g).
The Altura Lithium Project mine assets is a key
audit matter due to:
•
•
level of
judgement applied
the significance of the balance (being
83% of total assets); and
the
in
determining the treatment of the mine
asset in accordance with AASB 116
Property, Plant and Equipment and
in
whether
accordance with AASB 136 Impairment of
Assets.
the asset
impaired
is
In assessing this key audit matter, we involved
senior audit team members who understand the
industry.
Our audit procedures included, amongst others:
• obtaining a project management report
and holding discussions with the directors
and management to confirm that the mine
asset is operating as forecasted;
• obtaining
supporting
documentation
including external reports to validate the
LOM (Life of Mine) 26 year period over
which the mine asset is being depreciated;
• obtaining and assessing management’s
assessment of the recoverable amount of
the mine asset;
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ANNUAL REPORT 2020 ALTURA
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PKF Perth
Why significant
How our audit addressed the key audit matter
In particular, judgement exists around:
• whether depreciation rates applied are
appropriate;
• whether disclosure is appropriate; and
• whether the mine asset is impaired.
The evaluation of the recoverable amount of the
mine asset requires significant judgement in
determining the key assumptions supporting the
expected future cash flows of the Altura Lithium
Project.
2.
Borrowings – loan note facility
Why significant
Why significant
As at 30 June 2020 the consolidated entity held a
loan note facility of $207.7 million as described in
Note 17. The consolidated entity’s accounting
policy in respect of the loan note facility is
detailed in Note 1, m).
Borrowings – loan note facility is a key audit
matter due to:
•
•
the significance of the balance (being
75% of total liabilities); and
the level of complexity and judgement
applied
the correct
treatment in accordance with AASB 132
Financial Instruments: Presentation and
AASB 9 Financial Instruments.
in determining
In particular, complexity and judgement exists
around:
• measurement
and
recognition
of
transactions costs incurred;
• appropriateness of
interest and
fees
•
•
capitalised;
the period over which transaction costs
are amortised;
the calculation and appropriateness of
foreign currency movements impacts;
• whether
the
is classified
loan note
appropriately with respect to loan terms
and covenant waivers obtained;
•
•
use
calculation,
reviewing and verifying the key inputs and
assumptions used in management’s value
in
the
recoverable amount of the mine asset;
comparing production reports and current
sales data to forecasts applied in the value
in use calculation; and
supporting
obtaining and reviewing external reports of forward
looking spodumene concentrate prices and
ensuring $USD sales prices applied in the value in
use calculation are
line with
anticipated prices.
reasonable
in
How our audit addressed the key audit matter
How our audit addressed the key audit matter
In assessing this key audit matter, we involved
senior audit team members who understand such
financial instruments. We also obtained external
advice where appropriate.
Our audit procedures included, amongst others:
• obtaining and reviewing loan agreements,
subscription deeds, warrant deeds and
amendment deeds relating to the loan note
facility;
• obtaining a schedule of fees and interest
costs
the
and
capitalised
testing
capitalised during the year;
reviewing management’s treatment and
accounting policies regarding treatment in
accordance with
relevant accounting
standards;
the debt covenant breaches
reviewing
incurred during the year with reference to
the loan agreement and waivers received,
loan note
to ensure
classification and related disclosure
is
appropriate; and
reviewing management’s forecasted plans
for repayment and assessment of the
consolidated entity’s ability to repay the
facility by the maturity date.
impact on
the
•
•
•
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ALTURA ANNUAL REPORT 2020
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PKF Perth
Why significant
How our audit addressed the key audit matter
• whether movements in the loan balance
during the year have been appropriately
disclosed; and
• management’s plan to refinance the debt
and the consolidated entity’s capacity
concerning
the
the
borrowing facility.
repayment of
Other Information
Other information is financial and non-financial information in the annual report of the consolidated entity which
is provided in addition to the financial report and the auditor’s report. The directors are responsible for other
information in the annual report.
The other information we obtained prior to the date of this auditor’s report was the director’s report and
additional information for listed public companies. The remaining other information is expected to be made
available to us after the date of the auditor’s report.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information. In doing so,
we 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.
We are required to report if we conclude that there is a material misstatement of this other information in the
financial report and based on the work we have performed on the other information that we obtained prior the
date of this auditor’s report we have nothing to report.
Directors’ Responsibilities for the Financial Report
The Directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the consolidated entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the consolidated entity or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this financial
report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
78
ANNUAL REPORT 2020 ALTURA
94
PKF Perth
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
consolidated entity’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Directors.
• Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the consolidated entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the consolidated entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the consolidated entity to express an opinion on the consolidated entity financial report. We
are responsible for the direction, supervision and performance of the consolidated entity audit. We remain
solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on the Remuneration Report
Opinion
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2020.
In our opinion, the remuneration report of Altura Mining Limited for the year ended 30 June 2020, complies with
section 300A of the Corporations Act 2001.
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ALTURA ANNUAL REPORT 2020
PKF Perth
95
Responsibilities
The directors of the company are responsible for the preparation and presentation of the remuneration report in
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
PKF PERTH
SIMON FERMANIS
PARTNER
25 MAY 2021
WEST PERTH,
WESTERN AUSTRALIA
80
ANNUAL REPORT 2020 ALTURA
ADDITIONAL ASX
INFORMATION
98
ADDITIONAL ASX
INFORMATION
SCHEDULE OF MINERAL PROPERTIES
Location
Tenement Number
Interest
Tanami, Northern Territory
EL 26626
ELA 26627
EL 26628
EL 29828
Tabalong, South Kalimantan
PT Suryaraya Permata Khatulistiwa
PT Suryaraya Cahaya Cemerlang
PT Suryaraya Pusaka
PT Kodio Multicom
PT Marangkayu Bara Makarti
COC 182 (Area 3) – Catanduanes
COC 200 (Area 4) – Rapu-Rapu
Catanduanes, Philippines
Albay Region, Philippines
Bislig Region, Philippines
COC 202 (Area 17) – Surigao del Sur
Key to tenement type:
EL: Exploration Licence; P: Prospecting Licence
ISSUED CAPITAL
10%
10%
10%
10%
70%
70%
70%
56%
56%
100%
100%
100%
The issued capital of the company as at 11 May 2021 consists of 2,986,243,275 fully paid ordinary shares, and
148,797,979 listed options (expiring 28 February 2022).
DISTRIBUTION OF SHAREHOLDERS AS AT 11 MAY 2021
Number of shareholders in the following distribution categories:
Fully paid ordinary shares
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
Holders of less than a marketable parcel
Shares
399
2,820
1,947
5,702
2,004
12,872
3,854
% of issued
3.10
21.91
15.13
44.30
15.57
100.00
ALTURA ANNUAL REPORT 2020 ADDITIONAL ASX
INFORMATION continued
99
20 LARGEST SHAREHOLDERS – FULLY PAID ORDINARY SHARES
Rank
Holder name
Units
% of issued
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
SHANSHAN FOREVER INTERNATIONAL CO LIMITED
CALIDA HOLDING PTY LTD
MR MAXWELL TERRY SMITH
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
FARJOY PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMINEES PTY LTD
CVI CVF III LUX FINANCE SARL
MR ALLAN CHARLES BUCKLER
MR JAMES STUART BROWN & MRS MICHELE LILLIAN BROWN
MR PAUL KEVIN MANTELL & MRS MARGRET ANN MANTELL
CVI EMCVF LUX FINANCE SARL
BNP PARIBAS NOMS PTY LTD
MR BENG TEIK KUAN
E M ENTERPRISES (QLD) PTY LTD
NOMURA SPECIAL INVESTMENTS SINGAPORE PTE LTD
CVIC LUX FINANCE SARL
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
451,361,249
422,254,584
313,239,925
179,533,210
89,207,149
59,279,951
47,908,852
46,777,583
42,677,841
33,250,834
33,168,536
27,698,914
24,563,083
19,382,110
18,314,084
15,984,616
12,700,000
12,675,104
12,646,684
12,255,740
1,887,554,653
15.11%
14.14%
10.49%
6.01%
2.99%
1.99%
1.60%
1.57%
1.43%
1.11%
1.11%
0.93%
0.82%
0.65%
0.61%
0.54%
0.43%
0.42%
0.42%
0.41%
63.21%
DISTRIBUTION OF OPTION HOLDERS AS AT 11 MAY 2021
Number of option holders in the following distribution categories:
Fully paid ordinary shares
Options
% of issued
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total
5
3
328
832
74
1,242
0.00
0.01
2.12
21.00
76.87
100.00
ANNUAL REPORT 2020 ALTURA 100
ADDITIONAL ASX
INFORMATION continued
20 LARGEST OPTION HOLDERS –
LISTED OPTIONS EXPIRING 28 FEBRUARY 2022
Rank
Holder name
Units
% of issued
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total
Calida Holdings Pty Ltd
Farjoy Pty Ltd
SY Chua
M1nt Property Pty Ltd
P Ainsworth
Z International (HKG) Ltd
HSBC Custody Nominees (Australia) Limited (No 2 A/c)
WP Wagner
DJ Wang
DG & AB Carson
LJ Cobban
CS Fourth Nominees Pty Ltd (HSBC Custody 11 A/c)
PS Tan
JM Heuser & VM Gillam (JMH Super A/c)
MZ Wang
Avglen Pty Ltd
BT Kuan
Citicorp Nominees Pty Ltd
GHJC Pty Ltd
Robis Wealth Management Pty Ltd
58,466,808
7,741,003
3,846,154
3,805,024
3,401,420
3,343,625
2,933,329
2,500,000
1,500,000
1,393,726
1,355,850
1,326,923
1,300,000
1,118,695
1,110,000
1,000,000
1,000,000
760,945
613,697
700,000
99,617,199
39.29%
5.20%
2.58%
2.56%
2.29%
2.25%
1.97%
1.68%
1.01%
0.94%
0.91%
0.89%
0.87%
0.75%
0.75%
0.67%
0.67%
0.51%
0.48%
0.47%
66.74%
SUBSTANTIAL SHAREHOLDERS
The names of substantial shareholders and the number of equity securities as disclosed in their most recent
substantial shareholder notices received by the Company are:
Holder name
Shanshan Forever International Co., Ltd
AC Buckler (Calida Holdings Pty Ltd)
MT Smith
Shares
451,361,249
459,738,505
313,239,925
Options
Nil
58,466,808
48,695
ALTURA ANNUAL REPORT 2020 ADDITIONAL ASX
INFORMATION continued
101
VOTING RIGHTS
ORDINARY SHARES
On a show of hands, every person present who is a Shareholder or a proxy, attorney or Representative of
a Shareholder has one vote. On a poll, every person present who is a Shareholder or a proxy, attorney or
Representative of a Shareholder has one vote for each fully paid share held.
LISTED OPTIONS
Options do not have voting rights until such options are exercised as fully paid ordinary shares.
ON MARKET BUY BACK
There is no current on market buy back of Altura shares.
PERFORMANCE RIGHTS
The total number of performance rights on issue as at 30 September 2020 was 8,250,000. As at this date there
were 17 holders of these unquoted securities, which have been issued under an employee incentive scheme.
There are no voting rights attaching to the performance rights.
UNLISTED WARRANTS
The total number of unlisted warrants on issue as at 30 September 2020 was 19,812,140. The warrants were
issued to the debt facility loan note holders following shareholder approval at the 2017 AGM. To date, two of
the original three loan note holders have exercised their warrants. The warrants are exercisable at $0.1260
each and expire on 4 August 2022. There are no voting rights attaching to the unlisted warrants.
UNLISTED OPTIONS
The total number of unlisted options on issue as at 30 September 2020 was 74,400,000. The options were issued
to LDA Capital following shareholder approval at a general meeting held on 30 April 2020. The warrants are
exercisable at $0.0586 each and expire on 1 May 2023. There are no voting rights attaching to the unlisted options.
ANNUAL REPORT 2020 ALTURA 102
COMPETENT PERSONS
STATEMENTS
The information in this statement is based on,
and fairly represents, information and supporting
documentation prepared by the competent persons
listed below.
The MROR statements included in this Annual
Report were reviewed by a suitably qualified
Competent Persons prior to their inclusion.
PILGANGOORA LITHIUM
The information in this report that relates to the
Mineral Resource for the Pilgangoora lithium
deposit is based on information compiled by Mr
Stephen Barber. Mr Barber is a Member of the
Australasian Institute of Mining and Metallurgy. Mr
Barber is the Exploration Manager at Altura Mining
Limited and has sufficient experience that is relevant
to the style of mineralisation under consideration
and to the activity of mineral resource estimation
to qualify as a Competent Person as defined in the
2012 Edition of the Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore
Reserves. Mr Barber consents to the inclusion in
the report of the matters based on this information
in the form and context in which it appears.
The information in this report that relates to the Ore
Reserve for the Pilgangoora lithium deposit is based
on information compiled by Mr Quinton de Klerk. Mr
de Klerk is a Fellow of the Australasian Institute for
Mining and Metallurgy. Mr de Klerk is a Director
and Principal Consultant of Cube Consulting Pty
Ltd and has sufficient experience that is relevant to
the activity of ore reserve estimation to qualify as a
Competent Person as defined in the 2012 Edition of
the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr
de Klerk consents to the inclusion in the report of
the matters based on this information in the form
and context in which it appears.
The Company confirms that it is not aware of any
new information or data that materially affects the
information included in the ASX announcement on
9 October 2019. Further, all material assumptions
and
the
technical parameters underpinning
mineral resource and ore reserve estimates in
that announcement continue to apply and have not
materially changed.
ALTURA ANNUAL REPORT 2020 alturamining.com