ANNUAL
REPORT
2021
DIRECTORS
James Brown – Managing Director
Allan Buckler – Non-Executive Director
Dan O’Neill – Non-Executive Director
Beng Teik Kuan – 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
AUDITORS
PKF Perth
Level 5, 35 Havelock Street
Perth West WA 6005
AUSTRALIAN SECURITIES EXCHANGE
Code: AJM, AJMOB
CORPORATE
DIRECTORY
SHARE REGISTRY
Link Market Services Limited
Level 12, QV1 Building
250 St George’s Terrace
Perth WA 6000
CONTENTS
3
5
6
Message from the
Review of Altura
Managing Director
Lithium Operations
8
11
14
Pilbara Hardrock
American Lithium
The
Project
Brine Project
Opportunity
17
30
32
Directors'
Auditor's Independence
Consolidated Statement of
Report
Declaration
Profit and Loss
33
34
35
Consolidated Statement of
Consolidated
Consolidated Statement of
Other Comprehensive Income
Balance Sheet
Changes in Equity
36
37
87
Consolidated Statement of
Notes to the
Directors'
Cash Flows
Financial Statements
Declaration
88
93
97
Independent
Additional ASX
Competent Persons
Auditor’s Report
Information
Statements
ANNUAL REPORT 2021 ALTURA
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ALTURA ANNUAL REPORT 2021
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DEAR FELLOW SHAREHOLDERS,
I am pleased to be writing to you on behalf of the
leadership group of Altura for this 2021 Annual
Report. There have certainly been periods in the past
year where we thought this may not occur.
Fortunately, there has been some very hard work
completed by a relatively small group of people
who are doing their best to salvage value following
the unfortunate experience with our former flagship
lithium operation.
What occurred in October 2020 was extremely
disappointing. We had been making positive
progress on a recapitalisation that would have
put Altura on a firm financial footing to enjoy the
buoyant nature of the current lithium market. The
recapitalisation plan was substantively finalised, with
commercial terms with both an underwritten raise
and strategic cornerstone investor agreed subject to
final documentation.
For reasons unknown to your Directors, lender
support for that recapitalisation was withdrawn at
the last moment and the Company was placed in
Receivership and Administration – an action out
of our hands and with no notice.
The outcome of those events, principally the loss
of our main operating asset, cannot be changed,
however your Director’s were determined to secure
control of the Company in order to rebuild value for
all Shareholders, and that was achieved in March.
What can’t be taken away is our record of developing
a reliable, low cost mining and processing
operations that produced a high-quality product, this
enabled the development of a strong sales network
with a diverse offtake customer base.
With history now in the past, our view now is firmly
forward. We will leverage our expertise to rebuild
value in this company. To that end, we have been
working with the ASX to meet all the regulatory
and compliance requirements for our shares to be
relisted on the ASX and allow our shares to trade
once again.
Operationally we have developed a very clear
strategy, leveraging our strengths and expertise in
project origination, development and operation. Our
strategy is based on the following key fundamentals:
•
Hardrock and brine lithium exposure
•
Strategic, Tier 1 locations for exploration,
development and operations
•
Alignment with US and EU regulations and
initiatives
•
Leveraging technology to advance projects in
a sustainable and environmentally conscious
manner
•
Capturing the anticipated peak demand window.
Our two projects – Fish Lake Valley in Nevada,
USA and our suite of Pilbara tenements in WA –
absolutely fit the criteria of our strategy and we are
excited to be in a position to develop and advance
both projects.
Our long-term view of the battery materials market,
the electric vehicle and static storage revolution
has never wavered, and we are excited to once
again be a part of that story. I’d like to thank my
fellow Directors for their personal and financial
commitment and our small staff for their efforts over
the last year.
Finally, I would like to thank shareholders who
have been on this rollercoaster with us. Here’s to a
brighter future.
James Brown
Managing Director
MESSAGE FROM THE
MANAGING DIRECTOR
ANNUAL REPORT 2021 ALTURA
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ALTURA ANNUAL REPORT 2021
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Since March 2021, the Company has been working tirelessly to secure a path
for re-quotation on the ASX. The path to re-quotation is clear and is reliant on a
number of corporate activities being completed.
Subsequent to the end of to the 2020/21 Financial Year, the Company received
notification from the ASX on 1 September 2021 as to the specific actions to be
completed and requirements of the Company to allow the ASX to reinstate the
Company for formal quotation and trading.
The issue of the Financial Year accounts by 30 September 2021, maintaining
continuous disclosure requirements, along with the release of this Annual Report
are just a few of the corporate actions that are necessary to allow the Company to
be re-quoted. Key milestones that remain include:
•
Completion of a capital raise to satisfy project expenditure and working capital
requirements – which has been completed subject to Shareholder approval;
•
Execution of formal earn-in agreement for Fish Lake Valley – which was
completed in October;
•
Execution of formal earn-in agreement for Sayona’s Pilbara tenements –
which is scheduled to occur in October;
•
Lodgement of a full form prospectus and accompanying Right Issue –
which will occur in November; and
•
Holding Annual General Meetings for Financial Years 2020 and 2021 –
both will be scheduled for November 2021.
The Company is focussed on completion of these milestones along with a number
of other administrative and minor project tasks, and expects to provide its next
submission to the ASX this December.
Altura remains cautiously optimistic to achieve re-quotation before the end of the
2021 calendar year.
LITHIUM RECHARGED –
RESTRUCTURE AND RE-QUOTATION
ANNUAL REPORT 2021 ALTURA
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During the period 1 July to 26 October 2020, Pit-
to-Port operations were completed as scheduled.
Altura’s focus was to meet its cost structure and
ensure that it was producing a low-cost, high quality
spodumene concentrate. Mining was planned
and controlled by Altura’s own technical team and
executed by the Contracted miner. Mining operations
were completed as forecast, total ore/waste mined
could not be confirmed but available information
indicates an approximate 3:1 strip ratio, consistent
with Altura’s mine schedule and key in delivering
the cost-competitive nature of the operation. Mining
operations maintained a one-in-three nightshift
to ensure that the movements in materials met
the budgeted waste movement and ore feed
requirements.
Processing operations consistently produced
15,000-17,000 wet metric tonnes (wmt) of lithium
concentrate, per month, for a total production of
approximately 68,000 wmt. Production rates were
in line with forecasts with an annualised target of
approximately 180,000-190,000 wmt per annum.
Altura identified optimisation opportunities in
the crushing, milling and flotation circuits of the
processing plant. Optimisation works were designed
to increase plant throughput, lithia recovery and
flotation concentrate product grade. Capital works,
forecast at approximately $15M, were planned
for H2FY21 in order to pursue these efficiency
improvements.
Stable production levels were complemented by
planned and preventative maintenance on the
crusher and the coarse and fines processing circuits.
The Project’s maintenance strategies were evolving
through the experience of operating the processing
plant and continued to be modified to further
increase asset reliability to support consistency
of production.
All product was hauled from site to the dedicated
storage facility in Wedgefield ready for export.
Altura was able to sell and export high volumes in
the first quarter of the financial year by drawing
down on surplus stock, the net effect was sale
profiles outperforming production profiles, a trend
that was indicating a general upward movement
in demand and correlated to increase in product
pricing. Increased sales volumes were a result of
Altura affecting its offtake diversification strategy
and being able to place individual cargos to a range
of contracted buyers. This ensured regular export
volumes and supported the application of upward
shifts in pricing.
Altura exported a total of 84,820 wmt (79,418 dry
metric tonnes (dmt)) across six individual shipments,
principally to long term off take partners, with one
shipment in October sold to a new customer via a
single shipment contract.
Production was ceased in November 2020 at
the direction of external management, the final
shipment loaded and sailed from Port Hedland in
late December 2020. For detailed information on the
disposal of ALO please refer to Note 3 Discontinued
Operation in the 2021 Financial Statements.
REVIEW OF ALTURA
LITHIUM OPERATIONS
ALTURA ANNUAL REPORT 2021
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ANNUAL REPORT 2021 ALTURA
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In June 2021, Altura re-established its Earn-
in Agreement with Sayona Mining Ltd, this
Agreement provides Altura with access to a
significant tenement package across the Pilbara
and Murchison regions of Western Australia.
Altura has the right to earn a 51% interest in the
lithium rights and will earn this right through the
conduct of exploration and expenditure on the
tenements.
Apart from its geological potential, the Mallina
Lithium Project and broader Pilbara region
has direct access to established, world-class
infrastructure able to support lithium spodumene
exploration, construction and production activities.
Altura’s immediate focus is the highly prospective
Mallina project (tenement E47/2983). The Pilbara
tenement package can be seen in figure 1 with the
Mallina tenement further highlighted.
Figure 1: Pilbara Tenements highlighting Mallina
PILBARA HARDROCK
PROJECT
ALTURA ANNUAL REPORT 2021
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MALLINA LITHIUM PROJECT
The Pilbara region focuses on the Mallina Basin,
which is 70 km wide, and extends in an east-west
orientation for almost 140 km along a structural zone
parallel to the central Pilbara coast. A series of NNE-
trending faults are interpreted to have controlled
lithium mineralisation in the region. Spodumene-
bearing dykes located at the western end of the
Mallina Basin are recognised as composite or hybrid
intrusions of early monzogranite and latter aplite
phases. The various phases are typical components
of the Split Rock Supersuite, which is considered the
fundamental control on the formation of rare-metal
spodumene-bearing pegmatite systems across the
Pilbara region from Pilgangoora through to Wodgina,
and northwards to the Mallina Basin.
The Mallina Lithium Project is the most advanced
lithium target within the Sayona portfolio. The Mallina
Project is located 80 km to the west of the Wodgina/
Pilgangoora lithium mining areas and 110 km southwest
of Port Hedland. Previous exploration and study work
conducted in over the last five years involved mapping,
drilling, mineral analyses and sampling activities. The
outcome of this historical work was the identification of
three pegmatite target zones.
Geological mapping of the pegmatites at Mallina,
and the collection of surface samples was
completed to define the potential for spodumene
enriched pegmatites to be clearly defined and
outlined. Several lithium geochemical anomalies
were identified through this work leading to the
identification of three pegmatite zones, being
the Western Discovery Group Pegmatites, Area
C Pegmatite and the Eastern Group Pegmatites
(Pegmatite 1-3). Lithium mineralisation has been
encountered in numerous drill holes within all three
of the defined targets. A solid geography map of the
Mallina Project can be seen in figure 2.
Six samples of the spodumene-bearing aplite were
submitted for analyses, which was completed
using a scanning electron microscope (SEM) to
determine mineralogy. Analysis of these results
clearly identified three intrusive phases in the
hybrid intrusions and showed that the Li-rich aplite
Figure 2: Solid Geology Map
ANNUAL REPORT 2021 ALTURA
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phase is geochemically distinct to a barren Na-rich
aplite phase and a monzogranite phase. Rubidium
concentration in the Li-rich aplite was most
elevated in the Eastern No.2 and No.3 Pegmatite
intrusions, and this enrichment is reconciled with
the abundance of fine scaly muscovite that may
have been inherited from the same source as the
fine spodumene crystal relicts. From an exploration
viewpoint, the concentration level of Rb in the Li-rich
aplite is considered an important vectoring tool,
because it may be an indicator or rough measure of
the depth to the primary source of relict spodumene
and muscovite entrained in the aplite. The presence
of fine spodumene in an aplite at Mallina is not
without regional precedence within the rocks of
the Split Rock Supersuite, as this association has
been recognised in the Pilgangoora district, where
the discrete spodumene-bearing aplite dykes are
considered to have formed by the entrainment of
spodumene during the late-stage flow of felsic
magma through existing primary pegmatite-ore
sheets. The mapping work completed in May 2020
indicated that primary pegmatite sheets do not crop
out at Mallina, but there is the distinct possibility
that they are located at depth. As a result, there is
the potential to locate primary pegmatite sheets at
Mallina by undertaking a well-targeted stratigraphic
drilling program.
MURCHISON REGION
In addition to the Pilbara tenements, the Sayona
tenement package includes two tenements located
in the South Murchison (tenements E59/2092
and E59/2055). These two tenements cover the
southern portion of the Payne’s Find greenstone
belt which is known to host an extensive swarm of
pegmatites. The pegmatites have not previously
been assessed for their lithium potential, but have
been variably prospected and mined for tantalum,
feldspar, and beryl.
Reconnaissance exploration has identified lepidolite
(lithium-bearing mica) bearing pegmatite and
geochemical results indicate that the pegmatite suite
may be increasingly fractionated towards the west.
FORWARD LOOKING
The Mallina Lithium Project is still very
underexplored. Altura’s focus for exploration will be
concentrated upon the Eastern Group Pegmatites,
but there are also opportunities to continue work
upon the shallower and more accessible target
zones on the northern extremities of both the
Western Discovery Group Pegmatites prospect
and the Area C Pegmatite prospect. All three target
zones have the capacity to contain a significantly
lithium enriched pegmatites based on the geometry
and formation process determined by the exploration
works completed to date.
Initial invasive exploration work is planned for the
first half of 2022. After extensive review of the
historical work completed on the Mallina tenement
(by both Sayona and Altura), The Altura Exploration
team have prepared a deep stratigraphic drilling
program, which will target blind primary pegmatite-
ore sheets.
ALTURA ANNUAL REPORT 2021
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In May 2021 Altura executed a letter of intent to
earn an interest in US-based Lithium Corporation’s
Fish Lake Valley (FLV) lithium-brine project,
located in Esmeralda County, Nevada. Altura
has negotiated an agreement to earn in a 60%
ownership over the FLV project, with options to
acquire up to a 100 % interest.
The ancient lakebed clays of Nevada are rich in
lithium and are quickly becoming a global lithium-
mining hotspot with a number of projects looking
at both lithium brine and clay-based lithium
deposits. North America’s only lithium brine
operation, Albemarle’s Silver Peak Mine, located
approximately 35km from the FLV project area in
Clayton Valley, has been in continuous operation
since 1966. The FLV project in context to operating
and developing lithium projects can be seen below
in figure 3.
Figure 3: Fish Lake Valley Lithium Project – Nevada USA
AMERICAN LITHIUM
BRINE PROJECT
ANNUAL REPORT 2021 ALTURA
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FISH LAKE VALLEY LITHIUM PROJECT
Fish Lake Valley is located on the western margin of
the Basin and Range province, within the “Walker
Lane” which is a zone of Miocene structural
deformation which trends northwest to southeast
paralleling the trend of the Sierra Madre Mountains
in Eastern California. Basin and Range faulting
began during the Miocene, and it is this tectonism
that is responsible for the formation of the Fish
Lake Valley Basin. The most prominent structure is
the Furnace Creek Fault Zone (FCFZ), which is a
north-westerly trending right lateral or dextral fault.
The Fish Lake Valley Fault Zone lies at the northern
terminus of the FCFZ where a classic “pullapart”
basin was created which is responsible for the locally
thick deposition of Quaternary sediments, and
probably gave rise to the deep fracture permeability
locally that was critical in the formation of the
geothermal systems. A view of the project area
can be seen in figure 4.
Exploration work completed at FLV includes
surficial sediment evaluation and preliminary water
sampling, self-potential (SP) gradient and gravity
surveys, direct push drilling (total approximately
1400 m) and most recently (in 2016) deep sonic
drilling (151.48 m depth). Historical work undertaken
by Lithium Corporation identified an area within the
northern end of the playa which is approximately
2 km wide by 3.2 km long where lithium values
in brines exceed 50mg/L, along with elevated
boron and potassium levels. This anomalous
area encapsulates a more enriched zone which
measures approximately 1.40km by 1.6 km. Within
this enriched zone lithium-in-brine values range
from 100-150mg/L, with boron ranging from 1,500-
2,670 mg/L, and potassium from 5,400-8,400 mg/L.
Sample analysis has demonstrated favourable
mineralogy concentrations with lithium: up to 151
mg/L (47.05 mg/L average), boron: 992.7 mg/L
average, potassium: 0.54% average and importantly
negligible magnesium.
The work completed to date indicates that there
are anomalous concentrations of lithium, boron,
and potassium in the sediments and locally in the
brines present in Fish Lake Valley. There are known
geothermal resources in the area, and several
structures are conduits for geothermal fluids. It is
possible that some of these fluids provide elevated
values of the three elements. Exploration completed
to date has outlined a lithium-boron-potassium-in-
brine anomaly in the northeast corner of the playa.
The geological and geochemical conditions present
in Fish Lake Valley appear to be favourable for
the formation of a Silver Peak style lithium-boron-
potassium-in-brine type deposit.
FORWARD LOOKING
Altura’s development path at Fish Lake Valley will
adopt a dual stream approach, addressing resource
definition in parallel with direct lithium extraction
process development. Immediate work, set to
commence in the coming months will centre on the
completion of a ground passive seismic geophysical
survey to define the subsurface structure of the Fish
Lake Valley basin. Survey work will likely be followed
by a drilling program scheduled for the second half
of 2022. Simultaneously Altura will continue the
work completed to date on direct lithium extraction
technologies, seeking scalable low impact technology
solutions to suit the Fish Lake Valley brine.
ALTURA ANNUAL REPORT 2021
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Figure 4: Westerly facing view of the Fish Lake Valley Project area
ANNUAL REPORT 2021 ALTURA
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HARD ROCK AND BRINE
Altura has secured access to both hardrock and
brine-based lithium resources. The Company has a
proven ability to take an early-stage exploration hard
rock project, through feasibility assessment, project
delivery and into commercial production and will
leverage this expertise to progress project development
opportunities. Altura sees the emergence of lithium
processing capacity in Europe and North America/
Canada will provide greater commercial opportunities
beyond the traditional Chinese market.
Altura will further leverage its market understanding,
industry contacts and active trading credentials to
support the advancement of its Fish Lake Valley brine
project in North America. Advances in processing
technology and developments in direct lithium extraction
(DLE) have allowed relatively lower grade deposits,
such as Fish Lake, to be reassessed through a new
commercial lens. The potential use of a DLE processing
approach provides Altura with exposure to the lithium
chemical market in the US, which the US Government
and US-auto industry are committed to grow.
STRATEGIC TIER 1 LOCATIONS
In assessing its project opportunities Altura made
a clear decision to target only Tier 1 operating
jurisdictions. Current projects are located in Western
Australia and Nevada, which are both well-renowned
as pro-mining states, with the highest standard
of governance frameworks. Lithium is a relatively
abundant material and there are many large, high-
grade deposits around the world. However, Altura
will only focus on locations where there is the ability
to safely, sustainably and cost effectively develop a
project. Australia and the US provide that opportunity.
THE
OPPORTUNITY
ALIGNED WITH USA AND EU
REGULATIONS AND INITIATIVES
Governments and businesses across the world are
increasingly committing to net-zero and sustainability
strategies. Lithium-ion batteries, harnessed
appropriately, are a strong vehicle to support these
endeavours and a crucial element in the EU's transition
to a climate neutral economy. As part of this transition,
the EU is developing and will imposed a strict regulatory
framework for batteries to secure the sustainability and
competitiveness of battery value chains. The EU battery
regulation which defines the requirements of a battery
passport will come into force on 1 January 2022. The
battery Passport will include mandatory requirements on
sustainability (such as carbon footprint rules, minimum
recycled content, performance and durability criteria),
safety and labelling for the marketing and putting into
service of batteries, and requirements for end-of-life
management. The Passport requirements will require
higher levels of sustainability from those participating in
the lithium supply chain. Altura’s ability to be green by
design, rather than an afterthought provides a distinct
advantage at this early stage of process design and
development.
Separately in the USA, the recently issued National
Blueprint for Lithium Batteries which was developed by
the Federal Consortium for Advanced Batteries will help
guide the development of a domestic lithium-battery
supply chain. The first goal of the Blueprint is securing
access to raw and refined materials! The US government
has issued a clear mandate to create clean-energy
manufacturing jobs in America which is envisioned to
both support domestic US-Auto OEM manufacturing
whilst also helping to mitigate climate change impacts.
The Biden Administration’s decarbonisation goals and
vision for 2030 sees the United States and its partners
establish a secure battery materials and technology
supply chain that supports long-term US economic
competitiveness and equitable job creation, enables
decarbonisation, advances social justice and meets
national security requirements.
ALTURA ANNUAL REPORT 2021
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GREEN BY DESIGN
There is an ever growing, global desire and need to
decarbonise the economy. As a part of the lithium
supply chain, Altura is directly involved in the global
decarbonisation effort. Altura considers it has an
obligation to ensure that efforts to produce materials for
the green energy revolution, will be done in a manner
that achieves a greener, cleaner, more sustainable
product in totality. Altura will utilise its previous
development and operational experience to shape
project design early to ensure sustainable developments.
SIGNIFICANT GROWTH POTENTIAL
The Directors of Altura have shown their commitment
to the Company through continued funding and
backing to ensure a recapitalisation, ASX re-quotation
and the best possible opportunity for shareholders
to recover value. Altura is effectively starting again
as a junior exploration company, but that provides
significant growth opportunities. Altura has simplified
its corporate structure and is raising funds through
sophisticated investors, which will ensure Altura has
the balance sheet to undertake project development
work on both projects. The lithium industry is going
through another step change in growth and Altura will
leverage that opportunity as it looks to develop two
highly prospective lithium projects.
TIMED TO HIT PEAK DEMAND
Recent years have seen unprecedented investment in
electric vehicle development and production facilities,
plus the battery manufacturing to support a global
movement towards electrification. This demand boom,
combined with limited investment and financial support
for raw materials projects, has plunged the lithium
market into a structural supply deficit. Altura believes
there will be year-on-year demand growth for lithium
and battery metals for the next decade. The current
supply deficit is positive for Altura, but the regulatory
environment and carbon emissions targets being set by
primary auto markets will accelerate financial support
and economic conditions that will see Altura re-enter the
market in the middle of this decade when peak demand
for raw materials is expected.
RIGHT TEAM FOR THE JOB
The Altura team has a proven track record of
developing a lithium resource into a successful
operating mine and processing facility and then
marketing a high-quality, low impurity, sought-
after product. Altura will leverage that team and
its collective experience with its current project
developments. The lithium industry is still in its
relative infancy and has limited participants with the
track-record and experience of delivering projects
from conception to commercial production.
LEVERAGE TECHNOLOGY
TO ADVANCE PROJECTS
There is a clear opportunity for Altura to leverage
new technology to develop the Fish Lake Valley
brines project. The potential use of direct lithium
extraction (DLE) technology is enabling resources
that may have previously been considered un-
economic, to be developed into a commercially
viable project. Altura has engaged with technology
developers early and plans to progress both
resource and technology and process technology
development with equal focus. This is an exciting
opportunity to collaborate with leading-edge
research and development partners and seek
to realise a commercially viable and sustainable
operation.
ANNUAL REPORT 2021 ALTURA
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ALTURA ANNUAL REPORT 2021
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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 (resigned 6 June 2021))
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 until the disposal of the Lithium operations in January 2021. Subsequent activities have been
centered around the Groups acquisition of exploration tenements and developing exploration programs for these areas.
OPERATING AND FINANCIAL REVIEW
Overview
Altura Mining Limited (“AJM” or “the Company”) is an ASX listed entity that was focused on mining operations and exploration at the
Altura Lithium Project “the Project” at Pilgangoora in Western Australia. During the year, the Group was placed into external
management by its senior secured loan note holders, during this time, the Project was sold. The Group was returned to control of
the Directors in March 2021 and since that time all efforts have been centered on developing exploration opportunities and seeking
reinstatement for quotation with the ASX.
Review of Operations
Mining and Production
With the commencement of the new financial year, and Altura operating at stable levels of production, the Company’s focus was to
meet its cost structure and ensure that it was producing a low-cost, high quality spodumene concentrate. Altura continued on this
operating strategy until the appointment of external management on 26 October 2020. Whilst operations continued for a number of
weeks under external management, mining, material movements, processing and general operational activities were not accurately
recorded, the subsequent details on operations are drawn from sources available to Altura at the time that this report was written.
Mining operations were completed as forecast, total ore/waste mined is not known but available information would maintain an
approximate 3:1 strip ratio, consistent with Altura’s mine schedule and supporting the cost-competitive nature of the operation.
Mining operations maintained a one-in-three nightshift operation with the mining contractor. This ensured that the movements in
materials met the budgeted waste movement and ore feed requirements
Processing operations consistently produced 14,000-16,000 wet metric tonnes (wmt) of lithium concentrate, per month, during the
period 1 July 2020 to 9 November 2020, for a total production of approximately 67,801 wmt. Production rates were in line with
forecasts with an annualized target of approximately 180,000-190,000 wmt per annum. Altura saw optimization opportunities around
the floatation circuit and milling areas of the processing plant, minor capital works were scheduled for 2021.
Stable production levels were complemented by planned and preventative maintenance on the crusher and the coarse and fines
processing circuits. The Project’s maintenance strategies were evolving through the experience of operating the processing plant and
continued to be modified to ensure consistency of production.
DIRECTORS'
REPORT
ANNUAL REPORT 2021 ALTURA
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DIRECTORS'
REPORT continued
Throughout the reporting period, the logistics contractors hauled lithium concentrate form the operations site to the Wedgefield
storage facility via triple road trains. Product was stockpiled at Wedgefield and loaded on to individual shipments in accordance with
the requirements of each individual customer.
Production was ceased in November 2020 at the direction of external management.
As operations were ceased and the processing plant placed on care and maintenance, all available ROM stock was processed, with
zero ROM stock remaining by the middle of November. Broken stock was present at the mine-pit, the quantity of broken stock could
not be confirmed. By the end of November 2020, the processing plant and general site area was in care and maintenance, all lithium
concentrate had been transported to the storage facility, ready for export.
Sales and Marketing
Whilst the total volume of sales and exports was matched to production, Altura started the reporting period, shipping more product
than in produced in the first three months. Increased sales volumes were a result of Altura affecting its offtake diversification strategy
and being able to place individual cargos to a range of contracted buyers. This ensured regular export volumes and supported the
application of small upward shifts in pricing.
Altura saw material prices reach their lowest point in June 2020 and was achieving modest price increases for shipments affected at
the beginning of the reporting period, Altura further negotiated subtle price increases for cargo scheduled for sale in the later part
of H2 2020. The effect of external management negated the opportunity to negotiate further but did allow for the opportunity to
export relatively lower grade material (SC5.0) along with the final shipment.
Altura exported a total of 84,820 wmt (79,418 dry metric tonnes (dmt)) across six individual shipments, principally to long term off
take partners, with one shipment in October sold to a new customer via a single shipment contract.
Project Development
In April 2021, Altura announced it had executed and earn-in option for a lithium brine project in the USA. The Fish Lake Valley (FLV)
Project is located in Esmeralda County, 30 kilometers from the Californian border, and is located 35 kilometers west northwest from
Albermarle’s producing and currently expanding Silver Peak lithium brine operation. Geologically FLV shares both structural and
stratigraphic affinities with Silver Peak, which is currently the only operation of its kind in North America. At the end of the year,
Altura was continuing its due diligence activities on the FLV Project.
In June 2021, Altura announced it had re-established an earn-in agreement for tenements in Western Australia’s Pilbara region. The
Earn-in covers a range of tenements, centered on the world-class Pilgangoora, Wodgina, Tabba Tabba and Mallina mining districts.
Initially Altura will focus on the Mallina tenement (E47/2983) which has been the subject of previous drilling and study work. At the
end of the year, Altura was continuing its due diligence activities on the Pilbara Tenement package.
Operating results
The Group’s operating loss after providing for income tax and non-controlling interests for the year ended 30 June 2021 was
$73,000,216 (2020: loss $93,827,087). The Group’s operating loss after providing for income tax from continuing operations for the
year ended 30 June 2021 was $13,233,440 (2020: loss $89,637,031). The loss in 2021 includes non-cash costs as follows:
•
Depreciation and amortisation of $67,309
and includes further financial costs as follows:
•
Interest on funding facility of $77,008
•
Net foreign exchange loss of $5,922,920
Excluding the above items, the Group loss after tax was due to the Groups restructure post the disposal of its Lithium operations.
The Groups revenue from continuing operations for the year ended 30 June 2021 was $133,382 (2020: $106,336,352). The revenue
in 2021 was derived from its exploration services.
ALTURA ANNUAL REPORT 2021
18
DIRECTORS'
REPORT continued
Financial position
The Group cash and cash equivalents balance as at 30 June 2021 was $372,419 (2020: $2,298,091). The Group’s cash flow from
operating activities was negative $5,262,935 (2020: $42,806,692) predominantly due to costs of external management and
restructuring the Group. The Group’s cash flow from investing activities was positive $201,423,333 (2020: negative $5,811,106)
predominantly due to the forced disposal of the Groups subsidiary Altura Lithium Operations Pty Ltd. The Group’s net cash flow from
financing activities used was $198,144,728 (2020: provided $41,477,166) predominantly due the repayment of the Senior Loan Note
Facility totalling $204,436,487.
The net assets of the Group decreased by $64,249,233 from $64,986,549 to $737,316 due predominantly to the sale of the Group’s
Lithium operations and associated assets. The proceeds from the sale we applied by the external administrator to satisfy the secured
loan note facility and unsecured creditors under a deed of company arrangements. Management and control of the Altura Group
was returned to the Directors on 5 March 2021.
Please refer to Note 17.
Other Assets
Lithium Assets - Lithium Corporation
Altura acquired an interest in US-based Lithium Corporation in November 2012. Lithium Corporation is a junior exploration and
mining company focused on creating shareholder value through the discovery and development of lithium and other energy related
mineral resources. At the end of the reporting period Altura held 11.4% of the issued capital of Lithium Corporation.
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. The Board has considered the current climate and the ability to complete the sale of the project in the near term and
determined it prudent to make an impairment to present a value of Nil in the financial statements whilst continuing to actively seek
an appropriate sale counterparty.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Subsequent to the end of the financial year the following events occurred:
5 August 2021 – Altura satisfied the Conditions Precedent and formally commenced the Earn-in period for Sayona’s (ASX: SYA) Pilbara
tenements (lithium only).
19 August 2021 – Altura terminated the Put Option Agreement (POA) with LDA Capital LLC and LDA Capital Limited (together LDA).
The POA provided Altura with a standby equity finance facility, with a total valve of AUD $50,000,000 over a three-year term period.
Given the current situation it was mutually agreed between Altura and LDA to formally terminate the agreement.
The impact of the Coronavirus (COVID-19) is ongoing and while it has not been financially positive for the consolidated entity up to
30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is
rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining
social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided
No further events have occurred since 30 September 2021, which would require disclosure in the financial report.
ANNUAL REPORT 2021 ALTURA
19
DIRECTORS'
REPORT continued
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Group’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.
DIVIDENDS
There were no dividends paid or declared during the year ended 30 June 2021 (2020: 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.
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.
ALTURA ANNUAL REPORT 2021
20
DIRECTORS'
REPORT 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
Greenwing Resources Limited
Former directorships in last 3 years
None
Special responsibilities
None
Interests in shares and options
31,788,301 ordinary shares in Altura Mining Limited
385,000 options over ordinary shares in Altura Mining Limited
INFORMATION ON DIRECTORS (continued)
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
Nil
ANNUAL REPORT 2021 ALTURA
21
DIRECTORS'
REPORT 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
None
Former directorships in last 3 years
Sayona Mining Limited
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
ALTURA ANNUAL REPORT 2021
22
DIRECTORS'
REPORT 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 – (resigned 6 June 2021))
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
ANNUAL REPORT 2021 ALTURA
23
DIRECTORS'
REPORT 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 23 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 2021 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:
2021
2020
2019
2018
2017
Revenue and sundry income
142,203
107,023,428
39,571,130
1,675,168
1,600,959
EBITDA *
(13,088,123)
(16,047,598)
(3,967,691)
(13,279,929)
(6,417,320)
NPBT *
(13,232,440)
(89,615,963)
(26,283,568)
(13,120,803)
(6,448,799)
NPAT *
(13,232,440)
(89,637,031)
(26,571,019)
(12,712,487)
(5,914,752)
Dividends paid
-
-
-
-
-
* Definitions:
EBITDA = Earnings before interest, tax, depreciation, and amortisation
NPBT = Net profit before tax
NPAT = Net profit after tax & minority interest
ALTURA ANNUAL REPORT 2021
24
DIRECTORS'
REPORT 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 twelve 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 nine month’s gross salary to be paid if employment is terminated by the Company.
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.
ANNUAL REPORT 2021 ALTURA
25
DIRECTORS'
REPORT continued
REMUNERATION REPORT (Audited) (continued)
Key Management Personnel Remuneration
i)
Mr Dai resigned June 2021
ii)
Mr Wheatley resigned November 2020
iii)
Mr D Cox resigned April 2021
iv)
Mr A Cheeseman was appointed as Chief Executive Officer April 2021
v)
Mr Paul Mantell resigned April 2021
Long service leave payments of $26,091 (2020: 31,497) were made during the year
Short-term benefits
Post employment
Share based
payments
Total
Performance
rights as a
percentage
of total
%
Name
Cash salary
and fees
$
Cash
bonus
$
Bonus
shares
$
Non-
monetary
benefits
$
Super-
annuation
$
Termination
payments
$
Performance
rights
$
$
2021
Non-executive directors
A Buckler
18,000
-
-
-
1,710
-
-
19,710
-
D O’Neill
21,000
-
-
-
1,995
-
-
22,995
-
B Kuan
21,000
-
-
-
1,995
-
-
22,995
-
X Dai i)
18,000
-
-
-
-
-
-
18,000
-
Sub total
non-executive directors
78,000
-
-
-
5,700
-
-
83,700
Executive directors
J Brown
213,032
-
-
34,774
-
-
-
247,806
-
P Mantell v)
108,342
-
-
3,689
9,342
153,543
-
274,916
-
Other key management
personnel
R Wheatley ii)
134,053
-
-
-
11,524
270,000
-
415,577
D Cox iii)
135,459
-
-
-
5,684
100,000
-
241,143
-
A Cheeseman iv)
63,749
-
-
-
6,056
-
-
69,805
-
Total for key management
personnel compensation
654,635
-
-
38,463
32,606
523,543
-
1,249,247
Total compensation
732,635
-
-
38,463
38,306
523,543
-
1,332,947
2020
Non-executive directors
A Buckler
72,000
-
-
-
6,840
-
-
78,840
-
D O’Neill
84,000
-
-
-
7,980
-
-
91,980
-
B Kuan
84,000
-
-
-
7,980
-
-
91,980
-
X Dai
57,995
-
-
-
-
-
-
57,995
-
Sub total
non-executive directors
297,995
-
-
-
22,800
-
-
320,795
Executive directors
J Brown
465,423
-
-
104,792
-
-
-
570,215
-
P Mantell
325,025
-
-
13,809
25,000
-
-
363,834
-
Other key management
personnel
R Wheatley
223,929
-
-
-
20,786
-
29,955
274,670
10.9%
D Cox
150,000
-
-
20,687
14,250
-
-
184,937
-
N Young
120,000
-
-
3,912
11,400
33,323
-
168,635
-
P Robinson
48,333
-
-
-
6,393
82,847
-
137,573
-
Total for key management
personnel compensation
1,332,710
-
-
143,200
77,829
116,170
29,955
1,699,864
Total compensation
1,630,705
-
-
143,200
100,629
116,170
29,955
2,020,659
ALTURA ANNUAL REPORT 2021
26
DIRECTORS'
REPORT 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 2021.
Performance rights for Mr R Wheatley 1,000,000 lapsed as the vesting criteria were not meet.
No shares were issued to directors and key management personnel on the vesting of performance rights during the year ended 30
June 2021.
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
Remuneration & Nomination
Committee
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
Number
eligible to
attend
Number
attended
J Brown
7
7
-
-
-
-
P Mantell
6
6
-
-
-
-
A Buckler
7
6
2
2
2
1
D O’Neill
7
7
2
2
2
2
B Kuan
7
7
2
2
2
2
X Dai
7
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.
ANNUAL REPORT 2021 ALTURA
27
DIRECTORS'
REPORT 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$110,000,000 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 auditor PKF Perth, did not provide any non-audit services to the Company during the year ended 30 June 2021.
Details of the amounts paid or payable to the auditor for 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.
ALTURA ANNUAL REPORT 2021
28
DIRECTORS'
REPORT continued
ROUNDING OF AMOUNTS
The company is of a kind referred in 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 dollar, unless
otherwise stated.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration for the year ended 30 June 2021 has been received and is included on page 17 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, 30 September 2021
ANNUAL REPORT 2021 ALTURA
29
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.
17
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 2021, 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
30 SEPTEMBER 2021
WEST PERTH,
WESTERN AUSTRALIA
AUDITOR'S INDEPENDENCE
DELCARATION
ALTURA ANNUAL REPORT 2021
30
ANNUAL REPORT 2021 ALTURA
31
CONSOLIDATED STATEMENT OF
PROFIT AND LOSS
FOR THE YEAR ENDED 30 JUNE 2021
Note
2021
$
2020
$
Continuing operations
Revenue
5(a)
133,382
106,336,352
Cost of sales
5(c)
(457,565)
(123,681,882)
Gross profit / (loss)
(324,183)
(17,345,530)
Other income
Sundry income
5(b)
8,821
687,076
Expenses
Administration costs
(4,427,189)
(5,012,905)
Employee benefits expense
5(f)
(2,456,126)
(4,447,547)
Exploration expenditure written off
-
(217,776)
Other expenses
5(d)
(33,835)
(159,793)
Profit on sale of subsidiary
-
1,202,437
Profit / (loss) before foreign exchange and finance costs
(7,232,512)
(25,294,038)
Net foreign exchange loss
5(e)
(5,922,920)
(3,690,510)
Profit / (loss) before finance costs
(13,155,432)
(28,984,548)
Finance costs
Interest on funding facility
(77,008)
(34,206,592)
Amortisation of transaction costs
17
-
(26,424,824)
Profit / (loss) before income tax
(13,232,440)
(89,615,964)
Income tax (expense) / benefit
7(a)
-
(21,069)
Profit / (loss) after income tax from continuing operations
(13,232,440)
(89,637,033)
Discontinued operations
Loss from discontinued operations after tax
3
(59,767,776)
(4,190,056)
Net profit / (loss) for the year
(73,000,216)
(93,827,089)
Profit / (loss) attributable to:
Owners of Altura Mining Limited – Continuing Operations
(13,034,710)
(89,546,824)
Owners of Altura Mining Limited – Discontinued Operations
(59,767,776)
(4,190,056)
Non-controlling interest
(197,730)
(90,209)
(73,000,216)
(93,827,089)
(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
6
(2.44)
(3.75)
Basic and diluted (loss) per share from continuing operations
6
(0.44)
(3.59)
Basic and diluted (loss) per share from discontinued operations
6
(2.00)
(0.17)
The above Consolidated Statement of Profit and Loss should be read in conjunction with the accompanying Notes.
ALTURA ANNUAL REPORT 2021
32
CONSOLIDATED STATEMENT OF
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
Note
2021
$
2020
$
Profit / (loss) for the year
(73,000,216)
(93,827,089)
Other comprehensive income / (loss) for the year
Items that may be reclassified to profit and loss
Changes in the fair value of financial assets
13
3,768,316
637,174
Exchange differences on translation of foreign controlled entities
5,183,696
(1,376,533)
Other comprehensive income / (loss) for the year, net of tax
8,952,012
(739.359)
Total comprehensive income / (loss) for the year
(64,048,204)
(94,566,448)
Total comprehensive income / (loss) attributable to:
Members of the parent entity
(64,068,267)
(94,577,032)
Non-controlling interest
20,063
(10,584)
(64,048,204)
(94,566,448)
Total comprehensive income / (loss) attributable to members
of the parent entity arises from:
Continuing operations
(64,944,909)
(90,178,602)
Discontinued operations
876,642
(4,398,430)
(64,068,267)
(94,577,032)
The above Consolidated Statement of Other Comprehensive Income should be read in conjunction with the accompanying Notes.
ANNUAL REPORT 2021 ALTURA
33
CONSOLIDATED
BALANCE SHEET
AS AT 30 JUNE 2021
Note
2021
$
2020
$
Current assets
Cash and cash equivalents
8
372,419
2,298,091
Trade and other receivables
9
799,358
9,394,919
Held to maturity investments
11
-
26,070
Inventories
10
-
22,515,268
Current tax prepaid
63,817
65,893
Other current assets
12
202,493
5,739,189
Assets classified as held for sale
3c
-
6,369,703
Financial assets
13
5,691,673
-
Total current assets
7,129,760
46,409,133
Non-current assets
Financial assets
13
-
1,923,357
Property, plant, equipment and mine properties
14
29,074
288,492,318
Exploration and evaluation
15
79,946
3,311,790
Right-of-use assets
21
-
1,757,416
Total non-current assets
109,020
295,484,881
Total assets
7,238,780
341,894,014
Current liabilities
Trade and other payables
16
2,472,473
42,956,322
Borrowings
17
3,539,458
17,736,253
Short term provisions
18
489,533
1,900,591
Lease liabilities
21
-
524,071
Liabilities classified as held for sale
3c
-
2,362,597
Total current liabilities
6,501,464
65,479,834
Non-current liabilities
Borrowings
17
-
191,692,943
Lease liabilities
21
-
1,299,642
Rehabilitation provision
20
-
18,435,046
Total non-current liabilities
-
211,427,631
Total liabilities
6,501,464
276,907,465
Net assets
737,316
64,986,549
Equity
Contributed equity
22
290,860,299
290,860,299
Reserves
22
6,174,940
(2,358,250)
Accumulated losses
(296,543,867)
(223,741,381)
Capital and reserves attributable to owners of Altura Mining Limited
491,372
64,760,668
Non-controlling interest
245,944
225,881
Total equity
737,316
64,986,549
The above Consolidated Balance Sheet should be read in conjunction with the accompanying Notes.
.
ALTURA ANNUAL REPORT 2021
34
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying Notes.
Contributed
equity
$
Accumulated
losses
$
Option &
performance
rights reserve
$
Change in fair
value - market
valuation
$
Foreign
currency
translation
reserve
$
Non-
controlling
interests
$
Total
$
Balance as at 30 June 2019
233,955,398
(130,004,502)
-
756,011
(4,076,456)
215,297 100,845,748
Total comprehensive income for the year
-
(93,736,879)
-
637,175
(1,477,326)
10,584
(94,566,446)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction
costs
56,904,901
-
-
-
-
56,904,901
Share based payments transactions
-
-
1,802,346
-
-
-
1,802,346
Sub-total
56,904,901
(93,736,879)
1,802,346
637,175
(1,477,326)
10,584
(35,859,199)
Balance as at 30 June 2020
290,860,299
(223,741,381)
1,802,346
1,393,186
(5,553,782)
225,881
64,986,549
Balance as at 30 June 2020
290,860,299
(223,741,381)
1,802,346
1,393,186
(5,553,782)
225,881
64,986,549
Net Loss
-
(72,802,486)
-
-
-
(197,730)
(73,000,216)
Other Comprehensive income Fair Value
-
-
-
3,768,316
-
-
3,768,316
Other Comprehensive income Foreign
Exchange
-
-
-
-
4,965,903
217,793
5,183,696
Total comprehensive income for the year
-
(72,802,486)
-
3,768,316
4,965,903
20,063
(64,048,204)
Transactions with owners in their capacity as
owners:
Contributions of equity, net of transaction
costs
-
-
-
-
-
-
Share based payments transactions
-
-
(201,028)
-
-
-
(201,028)
Sub-total
-
-
(201,028)
-
-
-
(201,028)
Balance as at 30 June 2021
290,860,299
(296,543,867)
1,601,318
5,161,501
(587,879)
245,944
737,316
ANNUAL REPORT 2021 ALTURA
35
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
Note
2021
$
2020
$
Cash flows from operating activities
Receipts from customers
49,004,866
89,171,663
Payments to suppliers and employees
(54,993,396)
(116,525,190)
Sundry income
2,403
-
Interest received
192
3,345
Interest paid
-
(15,926,510)
Proceeds from jobkeeper
723,000
470,000
Net cash provided by / (used in) in operating activities
28(b)
(5,262,935)
(42,806,692)
Cash flows from investing activities
Expenditure on exploration and evaluation activities
(299,784)
(619,055)
Purchase of property, plant, equipment and mine properties
(696,271)
(5,505,995)
Proceeds from disposal of subsidiaries
202,419,388
259,938
Proceeds from held to maturity investments
-
51,965
Proceeds from sale of property, plant and equipment
-
2,041
Net cash (used in) / provided by investing activities
201,423,333
(5,811,106)
Cash flows from financing activities
Proceeds from the issue of shares
-
42,755,143
Transaction costs on issue of shares
-
(60,000)
Proceeds from borrowings
27 / 28(c)
7,163,881
7,878,908
Repayment of borrowings
27 / 28(c)
(204,436,487)
(7,878,908)
Payment of lease liabilities
(132,760)
(503,676)
Transaction costs related to borrowing
(739,362)
(714,301)
Net cash provided by / (used in) financing activities
(198,144,728)
41,477,166
Net increase / (decrease) in cash and cash equivalents held
(1,984,330)
(7,140,632)
Cash and cash equivalents at the beginning of year
28(a)
2,308,386
9,512,967
Effect of exchange rate changes on cash holdings in foreign currencies
57,790
(63,949)
Cash and cash equivalents at the end of year
28(a)
381,846
2,308,386
Non-cash investing and financing activities
Share based payments
23
201,028
(1,802,346)
Interest on loan facility capitalised
(10,952,587)
(16,202,052)
Transaction fees - borrowings
(7,690,621)
(11,661,219)
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying Notes.
ALTURA ANNUAL REPORT 2021
36
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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 30 September 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
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 raising of capital because of the assets now controlled by
the Group including the investment in Lithium Corporation based in the USA. The Directors have impaired
the Tabalong Project to reflect its near-term contribution to the Groups cashflow and are confident that
a suitable counterparty will be found.
If the Directors are unable to relist and raise the 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.
ANNUAL REPORT 2021 ALTURA
37
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
ii)
New accounting standards for application in the current period
New Accounting Standards and Interpretations not yet mandatory or early adopted Australian
Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the consolidated entity for the annual reporting period
ended 30 June 2021. The consolidated entity has not yet assessed the impact of these new or amended
Accounting Standards and Interpretations
iii) 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.
iv) 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).
b)
Carrying value of exploration and evaluation expenditure
The Group has capitalised exploration and evaluation expenditure of $79,946 as at 30 June 2021 (2020:
$3,311,790). This amount includes additions of $79,946 administration costs for the lithium project,
transfers to mine properties $1,428,800 and transfer held for sale $1,882,990 during the year.
Exploration and evaluation expenditure is capitalised 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 2021 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.
ALTURA ANNUAL REPORT 2021
38
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
ANNUAL REPORT 2021 ALTURA
39
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
d)
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.
e)
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.
ALTURA ANNUAL REPORT 2021
40
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f)
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.
ANNUAL REPORT 2021 ALTURA
41
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
f)
Property, plant, equipment and mine properties (continued)
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Plant and equipment
10% - 50%
Leased plant and equipment
25%
Mine properties
units of production
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.
g)
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.
ALTURA ANNUAL REPORT 2021
42
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
h)
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
•
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.
ANNUAL REPORT 2021 ALTURA
43
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
i)
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.
j)
Financial assets Investments and other financial assets
Investments and other financial assets are initially measured at fair value. Transaction costs are included as
part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are
subsequently measured at either amortised cost or fair value depending on their classification. Classification
is determined based on both the business model within which such assets are held and the contractual cash
flow characteristics of the financial asset unless an accounting mismatch is being avoided.
Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred
and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there
is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off
Financial assets at fair value through profit or loss
Financial assets not measured at amortised cost or at fair value through other comprehensive income are
classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:
(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of
making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value
movements are recognised in profit or loss.
Financial assets at fair value through other comprehensive income
Financial assets at fair value through other comprehensive income include equity investments which the
consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as
such upon initial recognition.
Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are
either measured at amortised cost or fair value through other comprehensive income. The measurement of
the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as
to whether the financial instrument's credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month
expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit
losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset
has become credit impaired or where it is determined that credit risk has increased significantly, the loss
allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
ALTURA ANNUAL REPORT 2021
44
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
For financial assets mandatorily measured at fair value through other comprehensive income, the loss
allowance is recognised in other comprehensive income with a corresponding expense through profit or loss.
In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through
profit or loss.
k)
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.
l)
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.
ANNUAL REPORT 2021 ALTURA
45
NOTES TO THE
FINANCIAL STATEMENTS continued
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.
m)
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.
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.
b.
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.
ALTURA ANNUAL REPORT 2021
46
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
n)
Significant accounting estimates and judgements (continued)
c.
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.
d.
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.
e.
Coronavirus (COVID-19)
Judgement has been exercised in considering the impacts of the COVID-19 has had, or may have
on the consolidated entity based on known information. This consideration extends to the nature
of product sold, customers, supply chains, staffing and geographical regions in which the
consolidated entity operates. COVID-19 has impacted in the financial statements mainly in the
ability to progress and complete the sale of the Tabalong Group.
f.
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and
judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and
makes assumptions to allocate an overall expected credit loss rate for each group. These
assumptions include recent sales experience, historical collection rates, the impact of the
Coronavirus (COVID-19) and forward-looking information that is available. The allowance for
expected credit losses, as disclosed in note 9, is calculated based on the information available at
the time of preparation. The actual credit losses in future years may be higher or lower.
g.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and
amortisation charges for its property, plant and equipment and finite life intangible assets. The
useful lives could change significantly as a result of technical innovations or some other event. The
depreciation and amortisation charge will increase where the useful lives are less than previously
estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold
will be written off or written down.
ANNUAL REPORT 2021 ALTURA
47
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
.
n)
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.
o)
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.
p)
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.
ALTURA ANNUAL REPORT 2021
48
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
q)
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:
(a) 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.
(b) 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.
(c) 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.
r)
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.
ANNUAL REPORT 2021 ALTURA
49
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
s)
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.
t)
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.
u)
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.
v)
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.
w)
Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
ALTURA ANNUAL REPORT 2021
50
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
x)
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.
y)
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed
in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected
to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless
restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal
operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after
the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12
months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
ANNUAL REPORT 2021 ALTURA
51
NOTES TO THE
FINANCIAL STATEMENTS continued
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
z)
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due
for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses
a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been
grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
aa) Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the
end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised
cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.
bb) Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
cc)
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Altura Mining
Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares
issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares
ALTURA ANNUAL REPORT 2021
52
NOTES TO THE
FINANCIAL STATEMENTS continued
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:
2021
$
2020
$
FINANCIAL ASSETS
Cash and cash equivalents
372,419
2,298,091
Trade and other receivables
799,358
9,394,919
Held to maturity investments
-
26,070
Other financial assets
5,691,673
1,923,357
6,863,450
13,642,437
FINANCIAL LIABILITIES
Trade and other payables (note 16)
2,472,473
42,956,322
Borrowings
3,539,458
211,252,909
6,011,931
254,209,231
a)
Market risk
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.
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 2021, the Group held funds in foreign currency amounting to US$27,700 (2020: US$585,000).
The Group does not currently enter into any hedging arrangements.
ANNUAL REPORT 2021 ALTURA
53
NOTES TO THE
FINANCIAL STATEMENTS continued
2.
FINANCIAL RISK MANAGEMENT (continued)
Foreign currency risk sensitivity analysis
At 30 June 2021, 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:
2021
$
2020
$
Change in profit
—
Improvement in AUD to USD by 11%
52,162
674,485
—
Decline in AUD to USD by 11%
(52,162)
(674,485)
Change in equity
—
Improvement in AUD to USD by 11%
52,162
674,485
—
Decline in AUD to USD by 11%
(52,162)
(674,485)
ii)
Price risk
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.
2021
$
2020
$
Change in profit
—
Increase in equity value by 10%
-
-
—
Decrease in equity value by 10%
-
-
Change in equity
—
Increase in equity value by 10%
569,167
192,336
—
Decrease in equity value by 10%
(569,167)
(192,336)
iii)
Interest rate risk
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 2021, 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:
2021
$
2020
$
Change in profit
—
Increase in interest rate by 1%
(30,395)
(2,355,110)
—
Decrease in interest rate by 1%
30,395
2,355,110
Change in equity
—
Increase in interest rate by 1%
(30,395)
(2,355,110)
—
Decrease in interest rate by 1%
30,395
2,355,110
Term deposits have been treated as a floating rate due to the short-term nature of the deposits.
ALTURA ANNUAL REPORT 2021
54
NOTES TO THE
FINANCIAL STATEMENTS continued
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.
The Group
Weighted
average
effective
interest rate
Floating
interest rate
Fixed interest rate maturing
Total
Within 1 year
1 to 5 years
Over 5 years
Non-interest bearing
2021
%
2020
%
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
2021
$
2020
$
Financial
assets:
Cash & cash
equivalents
0.25%
0.25%
372,419
2,298,091
-
-
-
-
-
-
-
-
372,419
2,298,091
Trade and other
receivables
-
-
-
-
-
-
-
-
-
799,358
9,394,919
799,358
9,394,919
Financial assets
-
-
-
-
-
-
-
-
-
5,691,673
1,923,357
5,691,673
1,923,357
Term deposit
-
1%
-
-
26,070
-
-
-
-
-
-
-
26,070
Total financial
assets
372,419
2,298,091
-
26,070
-
-
-
-
6,491,031
11,318,276
6,863,450
13,642,437
Financial
liabilities:
Trade & other
payables
-
-
-
-
-
-
-
-
-
-
2,472,473
42,956,322
2,472,473
42,956,322
Borrowings
8%
15%
-
-
3,539,458
-
-
211,252,909
-
-
-
-
3,539,458
211,252,909
Total financial
liabilities
-
-
3,539,458
-
-
211,252,909
-
-
2,472,473
42,956,322
6,011,931
254,209,211
ANNUAL REPORT 2021 ALTURA
55
NOTES TO THE
FINANCIAL STATEMENTS continued
2.
FINANCIAL RISK MANAGEMENT (continued)
2021
$
2020
$
Trade and other payables are expected to be paid as follows:
Less than 6 months (note 16)
2,472,473
42,456,322
More than 6 months (note 16)
-
500,000
2,472,473
42,956,322
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:
a)
Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
b)
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
c)
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 2021 and 30 June 2020.
2021
Level 1
$
Level 2
$
Level 3
$
Total
$
Assets
Listed investments
5,691,673
-
-
5,691,673
Total assets
5,691,673
-
-
5,691,673
2020
Assets
Listed investments
1,923,357
-
-
1,923,357
Total assets
1,923,357
-
-
1,923,357
ii)
Valuation techniques
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.
ALTURA ANNUAL REPORT 2021
56
NOTES TO THE
FINANCIAL STATEMENTS continued
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$2,750,000 a 100% equity
basis.
At the end of the reporting period the Board considered the valuation of the Tabalong Group and the ability
to progress and complete the sale in the current transactional climate and attract a suitable counterparty in
the near term. To present a conservative position, the Board has impaired the value of the Tabalong Group
to Nil whilst continuing to actively market the project.
Financial information relating to the discontinued operation for the period to the date of disposal is set out
below.
Altura Lithium Operations Group (ALO)
The Altura Lithium Operations Disposal Group consists of the Groups wholly owned subsidiary, Altura Lithium
Operations Pty Ltd and the Groups Australian operationally related assets.
On the 26 October 2020 the Group was deemed to be in default on its funding facility with the Secured
Senior Loan Note Holders, resulting with administrators being appointed to satisfy the facility by selling the
ALO Group assets.
The consideration of $200,725,201 was paid on the 20 January 2021 completing the disposal and providing
funds to settle the loan notes by the administrator. The estimated loss on disposal of the ALO Group is circa
$23,220,000 and was principally reported in the lithium mining segment of the consolidated Group in
previous periods.
ANNUAL REPORT 2021 ALTURA
57
NOTES TO THE
FINANCIAL STATEMENTS continued
3.
DISCONTINUED OPERATIONS (continued)
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 2021.
2021
2021
2020
2020
$
$
$
$
ALO
Tabalong
ALO
Tabalong
Revenue
Sale of Product
47,168,575
-
-
-
Cost of sales
-
-
-
Mining and processing costs
(33,985,923)
-
-
-
Royalty expenses
(2,310,755)
-
-
-
Depreciation and amortisation
(4,426,124)
-
-
-
Impairment Expense
-
(3,393,905)
-
(4,196,242)
Product inventory movement
(16,163,391)
-
-
-
Total cost of sales
(56,886,193)
(3,393,905)
-
(4,196,242)
Profit / (Loss)
(9,717,618)
-
-
(4,196,242)
Other Income
513,000
-
-
6,185
Expenses
Administration
(3,395,205)
-
-
-
Expenses
-
12,649
-
-
(Loss) before foreign exchange and finance costs
(12,599,823)
(3,381,256)
-
(4,190,056)
Foreign exchange gain
28,696,549
-
-
-
Profit / (Loss) before Finance costs
16,096,726
(3,381,256)
-
(4,190,056)
Finance costs
Interest on funding facility
(20,404,164)
-
-
-
Amortisation of transaction costs
(28,859,442)
(32)
-
-
Net (Loss) before income tax
(33,166,880)
(3,381,224)
-
(4,190,056)
Loss on disposal before income tax
Debt forgiveness
41,617,240
-
-
-
Impairment expense
(64,836,912)
-
-
-
Loss on disposal before income tax
(23,219,672)
-
-
-
Income Tax expense
-
-
-
-
(Loss) from discontinued operations after income tax
(56,386,552)
(3,381,224)
-
(4,190,056)
Net cash (outflow) from financing activities
-
(1,000)
-
(9,000)
Net decrease in cash generated by the division
-
(1,000)
-
(9,000)
ALTURA ANNUAL REPORT 2021
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 2021
3.
DISCONTINUED OPERATIONS (continued)
c)
Carrying amounts of assets and liabilities
2021
2021
2020
2020
$
$
$
$
ALO
Tabalong
ALO
Tabalong
Cash and cash equivalents
-
-
-
10,237
Trade and other receivables
-
-
-
2,177,129
Inventories
-
-
-
-
Other current assets
-
-
-
315,533
Trade and other receivables
-
-
-
473,554
Property, plant and equipment
-
-
-
5,347
Exploration and evaluation
-
-
-
3,387,903
Mine Development at cost
-
-
-
-
Total assets of disposal group held for sale
-
-
-
6,369,703
Trade and other payables
-
-
-
626,970
Borrowings
-
-
-
1,735,739
Provisions
-
-
-
-
Total liabilities
-
-
-
2,362,709
Net Assets
-
-
-
4,006,994
2021
$
2020
$
Details of the disposal – ALO
Total sale consideration
200,725,201
-
Carrying amount of net assets disposed
(265,562,113)
-
Debt forgiven
41,617,240
-
(23,219,672)
-
ANNUAL REPORT 2021 ALTURA
59
NOTES TO THE
FINANCIAL STATEMENTS continued
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 Lithium mining
segment has been disposed of during the period and is disclosed in discontinued operations. 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
$
Exploration
services
$
Mineral
exploration
$
Eliminations
$
Total
$
2021
Revenue
External sales
-
133,382
-
-
133,382
Other income
-
7,851
970
-
8,821
Other segments
-
-
-
-
-
Total segment revenue
-
141,233
970
-
142,203
Unallocated revenue
-
Total consolidated revenue
142,203
Segment result
-
(235,626)
(4,226,833)
-
(4,462,459)
Other segments
Unallocated expenses net of unallocated
revenue
-
Profit / (loss) before income tax and finance
costs
(4,462,459)
Finance costs
(8,769,981)
Income tax revenue/(expense)
-
Profit / (loss) after income tax
(13,232,440)
Profit / (loss) from discontinued
operations
(59,767,776)
Net profit / (loss) for the year
(73,000,216)
Assets and liabilities
Segment assets
-
369,080
6,869,699
-
7,238,779
Unallocated assets
-
Total assets
7,238,779
Segment liabilities
-
721,131
5,780,332
-
6,501,463
Unallocated liabilities
-
Total liabilities
6,501,463
Other segment information
Exploration expenditure
-
-
79,946
-
79,946
Depreciation and amortisation
-
36,296
31,014
-
67,309
ALTURA ANNUAL REPORT 2021
60
NOTES TO THE
FINANCIAL STATEMENTS continued
4.
SEGMENT INFORMATION (continued)
Lithium
mining
$
Exploration
services
$
Mineral
exploration
$
Eliminations
$
Total
$
2020
Revenue
External sales
103,538,206
2,798,146
-
-
106,336,352
Other income
630,000
9,235
47,841
-
687,076
Other segments
-
-
3,999,997
(3,999,997)
-
Total segment revenue
104,168,206
2,807,381
4,047,838
(3,999,997) 107,023,428
Unallocated revenue
-
Total consolidated revenue
107,023,428
Segment result
(22,220,656)
596,176
(3,669,518)
-
(25,293,998)
Other segments
Unallocated expenses net of unallocated
revenue
-
Profit / (loss) before income tax and finance
costs
(25,293,998)
Finance costs
(64,321,966)
Income tax revenue/(expense)
(21,069)
Profit / (loss) after income tax
(89,637,033)
Profit / (loss) from discontinued
operations
(4,190,056)
Net profit / (loss) for the year
(93,827,089)
Assets and liabilities
Segment assets
328,745,534
827,995
5,951,782
-
335,524,311
Unallocated assets
6,369,703
Total assets
341,894,014
Segment liabilities
251,901,201
780,286
21,863,269
-
274,544,756
Unallocated liabilities
2,362,709
Total liabilities
276,907,465
Other segment information
Exploration expenditure
3,311,790
-
-
-
3,311,790
Depreciation and amortisation
12,734,067
46,669
156,213
-
12,936,948
ANNUAL REPORT 2021 ALTURA
61
NOTES TO THE
FINANCIAL STATEMENTS continued
4.
SEGMENT INFORMATION (continued)
Geographical segments
The Group’s geographical segments are determined based on the location of the Group’s assets.
2021
Australia
$
Indonesia
$
Other
$
Eliminations
$
Total
$
Revenue
External sales
-
133,382
-
-
133,382
Other income
970
7,851
-
-
8,821
Other segments
-
-
-
-
Total segment revenue
970
141,233
-
-
142,203
Unallocated revenue
-
Total revenue
142,203
Segment assets
6,145,217
927,679
165,829
-
7,238,779
Unallocated assets
-
Total assets
7,238,779
Segment liabilities
5,087,510
1,272,405
141,548
-
6,501,463
Unallocated liabilities
-
Total liabilities
6,501,463
Exploration expenditure
79,946
-
-
-
79,946
Depreciation and amortisation
31,014
36,296
-
-
67,309
2020
Australia
$
Indonesia
$
Other
$
Eliminations
$
Total
$
Revenue
External sales
103,538,206
2,798,146
-
-
106,336,352
Other income
677,841
9,235
-
-
687,076
Other segments
3,999,997
-
-
(3,999,997)
-
Total segment revenue
108,216,044
2,807,381
-
(3,999,997)
107,023,428
Unallocated revenue
-
Total revenue
107,023,428
Segment assets
334,467,239
822,358
234,714
-
335,524,311
Unallocated assets
6,369,703
Total assets
341,894,014
Segment liabilities
273,536,943
782,660
225,153
-
274,544,756
Unallocated liabilities
2,362,709
Total liabilities
276,907,465
Exploration expenditure
3,311,790
-
-
-
3,311,790
Depreciation and amortisation
12,889,345
47,603
-
-
12,936,948
The Group has a number of customers to whom it provides exploration services. The exploration services group
supplies three external customers who account for 52% (US$52,000), 23% (US$23,000) and 21% (US$21,000) of
external revenue (2020: 71%).
ALTURA ANNUAL REPORT 2021
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 2021
2021
$
2020
$
5.
PROFIT / (LOSS) FROM ORDINARY ACTIVITIES
(a)
Revenue
Revenue from sales of product
-
103,538,206
Revenue from exploration services
133,382
507,610
Revenue from royalties
-
2,290,536
Total revenue from ordinary activities
133,382
106,336,352
(b)
Other income
Interest received
-
3,159
Profit on sale of assets
-
2,091
Other income
8,821
681,826
Total other revenues from ordinary activities
8,821
687,076
(c)
Cost of sales
Mining and processing costs
-
102,239,296
Royalty expenses
-
9,257,084
Depreciation and amortisation
33,474
12,777,155
Product inventory movement
-
(1,189,178)
Mining services drilling costs
424,091
597,525
Total cost of sales
457,565
123,681,882
(d)
Other expenses
Depreciation of plant & equipment
33,835
159,793
Total other expenses from ordinary activities
33,835
159,793
(e)
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.
(f)
Employee benefits expense
Employee share scheme expense
(201,028)
201,028
Bonus paid by way of issue of shares to directors and staff
-
-
Salaries and on-costs expense
2,657,154
4,246,519
Total employee benefits expense
2,456,126
4,447,547
ANNUAL REPORT 2021 ALTURA
63
NOTES TO THE
FINANCIAL STATEMENTS continued
6.
EARNINGS / (LOSS) PER SHARE
2021
cents per share
2020
cents per share
(a)
Basic earnings / (loss) per share
From continuing operations, attributable to the ordinary equity holders of the
Company
(0.44)
(3.59)
From discontinued operations
(2.00)
(0.17)
Total basic earnings per share attributable to the ordinary equity
holders of the Company
(2.44)
(3.75)
(b)
Diluted earnings / (loss) per share
From continuing operations, attributable to the ordinary equity holders of the
Company
(0.44)
(3,59)
From discontinued operations
(2.00)
(0.17)
Total basic earnings per share attributable to the ordinary equity
holders of the Company
(2.44)
(3.75)
2021
Number
2020
Number
(c)
Weighted average number of ordinary shares used as the denominator in
calculating the basic and diluted earnings per share.
2,986,243,275
2,499,149,183
2021
$
2020
$
(d)
Earnings used in the calculation of basic earnings per share reconciles to net
profit in the income statement as follows:
Net profit / (loss)
(13,232,440)
(89,637,033)
Less - profit /(loss) from discontinued operations
(59,767,776)
(4,190,056)
Earnings / (loss) used in the calculation of basic EPS
(73,000,216)
(93,827,089)
ALTURA ANNUAL REPORT 2021
64
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
7.
INCOME TAX EXPENSE
(a)
The components of tax expense comprise:
Current Tax
Current year
-
-
Adjustments in respect of prior periods
-
21,069
Deferred Tax
Current year deferred tax
-
-
Total income tax expense / (benefit) per income statement
-
21,069
(b)
Income tax expense / (benefit) is attributable to:
Profit / (loss) from continuing operations
-
21,069
Profit / (loss) from discontinued operations
-
-
-
21,069
(c)
The prima facie tax on profit / (loss) before income tax is reconciled to the
income tax as follows:
Profit / (loss) from continuing operations
(13,232,440)
(89,615,964)
Profit / (loss) from discontinued operations
(59,767,776)
(4,190,056)
Profit / (loss) before tax
(73,000,216)
(93,806,020)
Income tax calculated at the Australian rate of 30% (2020 - 30%)
(21,900,065)
(28,141,806)
Increase in income tax due to:
Non-deductible expenses
6,100,298
3,915,916
Share compensation costs
(60,308)
60,308
Effect of current year tax losses not recognised
25,235,909
24,165,582
Under / (over) provision in prior year
(9,375,834)
21,069
Income tax expense / (benefit)
-
21,069
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% (2020 - 30%)
55,352,119
48,195,179
(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.
ANNUAL REPORT 2021 ALTURA
65
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
8.
CASH AND CASH EQUIVALENTS
Cash at bank and on hand
372,419
2,298,091
9.
TRADE AND OTHER RECEIVABLES
Current
Trade and other receivables
1,156,713
9,590,443
Provision for expected credit losses
(357,355)
(195,524)
799,358
9,394,919
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.
0-30
days
$0
31-60
days
$0
61-90
days
$0
90+
days
$0
Total
$0
2021 Consolidated
-
-
796,576
2,782
799,358
2020 Consolidated
1,583,956
3,745,734
343,976
3,721,253
9,394,919
As at 30 June 2021, $233,000 (2020 $7,812,000) trade receivables were past due but not impaired.
2021
$
2020
$
10. INVENTORIES
Consumables stores – at cost
6,910,299
6,351,877
Transfer to held for sale **
(6,910,299)
Product and processing stock – at lower of cost and net realisable value #
-
16,163,391
-
22,515,268
# Write-down of inventories to net realisable value amounted to $ Nil (2020:
$12,215,815). 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.
**Consumable Stores were transferred to Assets classified as held for sale. Refer to
Note 3 for further details on discontinued operations.
11. HELD TO MATURITY INVESTMENTS
Term deposits
-
26,070
-
26,070
The term deposits are held to their maturity of less than one year and carry a weighted
average fixed interest rate of 0.25% (2020: 0.65.0%). 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.
ALTURA ANNUAL REPORT 2021
66
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
12. OTHER CURRENT ASSETS
Financial assets (security deposits)
34,185
55,108
Prepayments
168,308
5,684,081
202,493
5,739,189
13. FINANCIAL ASSETS
Listed investments at fair value
Carried forward from previous year
1,923,357
1,286,182
Changes in fair value
3,768,316
637,175
Total listed investments at fair value
5,691,673
1,923,357
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).
The Board of Directors has placed instructions with a US brokerage to divest its
investment in Lithium Corporation and determining this to be a current asset.
14. PROPERTY, PLANT, EQUIPMENT AND MINE PROPERTIES
Property plant and
equipment
$
Mine properties
in production
$
Total
$
2021
Gross carrying amount
Balance at 30 June 2020
7,670,398
300,093,917
307,764,315
Additions
-
3,856,343
3,856,343
Impairment
(1,385,250)
(62,618,285)
(64,003,535)
Transfer to held for sale **
(5,337,969)
(236,051,419)
(241,389,388)
Exchange difference
(82,957)
-
(82,957)
Disposals
-
(5,280,556)
(5,280,556)
Balance at 30 June 2021
864,222
-
864,222
Accumulated depreciation
Balance at 30 June 2020
3,551,072
15,720,925
19,271,997
Depreciation expense
67,309
4,426,124
4,493,433
Impairment
(561,187)
(3,871,654)
(4,432,841)
Exchange difference
(42,715)
-
(42,715)
Transfer to held for sale **
(2,179,331)
(16,275,395)
(18,454,726)
Balance at 30 June 2021
835,149
-
835,149
Net book value
as at 30 June 2021
29,074
-
29,074
** Property, Plant, Equipment and Mine Properties were transferred to Assets classified as held for sale.
Refer to Note 3 for further details on discontinued operations.
ANNUAL REPORT 2021 ALTURA
67
NOTES TO THE
FINANCIAL STATEMENTS continued
14.
PROPERTY, PLANT, EQUIPMENT AND MINE PROPERTIES (continued)
Property plant and
equipment
$
Mine properties
in production
$
Total
$
2020
Gross carrying amount
Balance at 30 June 2019
10,119,989
290,343,356
300,463,345
Additions
2,335,135
3,309,997
5,645,132
Increase/(decrease) in provision for rehabilitation #
-
6,440,564
6,440,564
Transfers
-
-
-
Exchange difference
27,383
-
27,383
Disposals
(4,812,109)
-
(4,812,109)
Balance at 30 June 2020
7,670,398
300,093,917
307,764,315
Accumulated depreciation
Balance at 30 June 2019
7,875,568
3,905,974
11,781,542
Depreciation expense
552,022
11,814,951
12,366,973
Exchange difference
22,464
-
22,464
Disposals
(4,898,982)
-
(4,898,982)
Balance at 30 June 2020
3,551,072
15,720,925
19,271,997
Net book value
as at 30 June 2020
4,119,326
284,372,992
288,492,318
2021
$
2020
$
15. EXPLORATION AND EVALUATION
Exploration and evaluation expenditure at cost:
Carried forward from previous year
3,311,790
3,264,791
Incurred during the year
79,946
577,908
Transferred to property, plant and equipment and mine properties
(1,428,800)
(313,133)
Transferred to assets classified as held for sale **
(1,882,990)
-
79,946
3,529,566
Written off during the year
-
(217,776)
Total exploration and evaluation expenditure
79,946
3,311,790
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.
** Exploration and Evaluation expenditure was transferred to Assets classified as held
for sale. Refer to Note 3 for further details on discontinued operations.
ALTURA ANNUAL REPORT 2021
68
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
16. TRADE AND OTHER PAYABLES
Trade payables and accruals
2,395,465
28,864,879
Accrued interest on loan note facility
77,008
14,091,443
2,472,473
42,956,322
17. BORROWINGS
Current borrowings
Loan note facility #
-
16,049,542
Director related facility ##
3,539,458
-
Other
-
1,686,711
Total current borrowings
3,539,458
17,736,253
Non-current borrowings
Loan note facility
-
191,692,944
Total non-current borrowings
-
191,692,944
Total borrowings
3,539,458
209,429,197
Reconciliation borrowings - loan note facility
Opening balance
207,742,486
179,099,798
Loan notes issued
-
-
Interest and fees capitalised
15,926,109
27,863,343
Exchange rate differences
(8,907,936)
3,753,758
Amortisation of transaction costs
27,581,782
22,896,636
Transaction costs incurred
-
(25,871,049)
Adjustment on completion of facility
(41,617,240)
-
Repayment
(200,725,201)
-
Total borrowings – loan note facility
-
207,742,486
Reconciliation borrowings – Director related facility
Opening balance
-
-
Loan funds received
3,452,551
-
Exchange rate differences
86,907
-
Total borrowings – Director related facility ##
3,539,458
-
# In October 2020 the Group was considered in default on the loan note facility and receivers were appointed. Following
the sale of Altura Lithium operations Pty Ltd and associate assets the facility was repaid in January 2021.
## In February 2021 the Directors via ACN 647 358 987 Pty Ltd, a Director related entity provided the funds for a deed of
company arrangements to be entered into with the Group’s external manager. External control was returned to the
Directors in March 2021. The facility comprises a US $ 2,000,000 component and the balance is denominated in Australian
dollars. The facility attracts interest @ 8% pa and is due for repayment in April 2022.
ANNUAL REPORT 2021 ALTURA
69
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
18. SHORT TERM PROVISIONS
Employee benefits
489,533
1,900,591
489,533
1,900,591
Movements in provisions
Short term employee benefits
Opening balance
1,900,591
1,668,748
Provision increase / (decrease)
16,469
1,176,546
Expense incurred
(1,427,526)
(944,703)
Balance at year end
489,533
1,900,591
The aggregate employee entitlement liability recognised and included in the financial
statements is as follows:
Provision for employee entitlements:
Current
489,533
1,900,591
Total
489,533
1,900,591
19. CURRENT TAXATION & DEFERRED TAX LIABILITIES & ASSETS
(a)
Liabilities
Current
Income tax paid / payable
-
-
Non-Current
Deferred tax liability comprises:
Lease ROU asset
-
527,225
Tax allowances relating to exploration
23,984
962,908
Property, plant & equipment
-
30,033,682
Unrealised foreign exchange gains
2,261,091
-
Other
-
252,572
2,285,075
31,776,387
(b)
Assets
Non-Current
Deferred assets comprise:
Provisions
205,853
6,077,687
Revenue losses
57,268,382
69,125,463
Revenue losses not recognised
(55,352,119)
(48,195,179)
Lease liabilities
-
547,114
Unrealised foreign exchange loss
-
3,782,699
Other
162,959
438,603
2,285,075
31,776,387
Net deferred tax balance recognised in the Consolidated Balance Sheet
-
-
ALTURA ANNUAL REPORT 2021
70
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
20. REHABILITATION PROVISION
Non-current provision
Rehabilitation and demobilisation
-
18,435,046
-
18,435,046
Movements in provisions
Rehabilitation and demobilisation
Opening balance
18,435,046
11,994,482
Provision increase/(decrease)
-
6,440,564
Transfer to held for sale **
(18,435,046)
-
Expense incurred
-
-
Balance at year end
-
18,435,046
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.
** Rehabilitation provision was transferred to Liabilities classified as held for sale. Refer
to Note 3 for further details on discontinued operations.
21. LEASES
Set out below is a summary of the amounts disclosed in the Consolidated Balance Sheet:
Lease liability
Current
-
524,071
Non-current
-
1,299,642
-
1,823,713
Right of use assets
Properties
-
1,757,416
-
1,757,416
ANNUAL REPORT 2021 ALTURA
71
NOTES TO THE
FINANCIAL STATEMENTS continued
22. CONTRIBUTED EQUITY
Issued capital
2021
$
2020
$
2,986,243,275 (2020: 2,986,243,275) ordinary shares issued and fully paid
290,860,299
290,860,299
2021
2020
Number
$
Number
$
Fully paid ordinary shares
Balance at the beginning of the financial year
2,986,243,275
290,860,299
2,125,462,476
233,955,398
Shares issued in lieu of loan note fees
-
-
284,195,159
14,209,764
Share issue - Rights Offer #
-
-
152,585,610
9,155,137
Share placement – Shanshan ##
-
-
200,000,000
22,400,000
Share placement - Sophisticated Investors ###
-
-
224,000,000
11,200,000
Exercise of Listed Options
-
-
30
-
Share issue costs
-
-
-
(60,000)
Balance at the end of the financial year
2,986,243,275
290,860,299
2,986,243,275
290,860,299
# On 20 November 2019 Altura announced that it had completed a non-renounceable Entitlement Offer raising a
total of $9,155,137. 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.
ALTURA ANNUAL REPORT 2021
72
NOTES TO THE
FINANCIAL STATEMENTS continued
22. CONTRIBUTED EQUITY (continued)
Option and performance rights reserve
Movements in option and performance rights reserve
2021
$
2020
$
Opening balance
1,802,346
-
Share based payment expense
(201,028)
201,028
Other share based options
-
1,601,318
Performance rights exercised and transferred to contributed equity
-
-
Balance at year end
1,601,318
1,802,346
Foreign currency translation reserve
Movements in foreign currency translation reserve
Opening balance
(5,553,782)
(4,076,456)
Foreign currency translation differences
4,965,903
(1,477,326)
Balance at year end
(587,879)
(5,553,782)
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
1,393,185
756,011
Change in fair value of financial assets
3,768,316
637,174
Balance at year end
5,161,501
1,393,185
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. With the repayment of the loan facility and the removal of consent from the loan
note holders there were no other changes to the consolidated entity's approach to capital management during the
year. 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.
ANNUAL REPORT 2021 ALTURA
73
NOTES TO THE
FINANCIAL STATEMENTS continued
23. SHARE BASED PAYMENTS
During the year, the Company had the following share-based payments expenses:
2021
$
2020
$
Performance rights
(201,028)
201,028
Share options
-
-
Bonus shares
-
-
(201,028)
201,028
a)
Performance Rights
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 2021 and the value
attributed:
Number of
performance
rights
Expiry
Date
Fair Value
($/right)
Total Value
$
-
-
-
-
The Performance Rights granted and outstanding under the LTIP as at 30 June 2021 are as follows:
Expiry
Date
Granted
Vested
Unvested
-
-
-
-
The Performance Rights issued during 2020 (8,500,000) have lapsed during the reporting period.
ALTURA ANNUAL REPORT 2021
74
NOTES TO THE
FINANCIAL STATEMENTS continued
23. SHARE BASED PAYMENTS (continued)
b)
Share Options
During the year the Company did not issue any unlisted options.
The options granted and outstanding as at 30 June 2021 are as follows:
The valuation was performed using a Black-Scholes model with the following assumptions resulting in a
valuation of Nil (30 June 2020: 1,601,318):
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
Managing Director
Paul Mantell
Executive Director (resigned April 2021)
Allan Buckler
Non-Executive Director
Dan O’Neill
Non-Executive Director
BT Kuan
Non-Executive Director
Xiaoyu Dai
Non-Executive Director (resigned June 2021)
Key Management Personnel
Alex Cheeseman
Chief Executive Officer (appointed April 2021)
Rod Wheatley
Chief Financial Officer (resigned November 2020)
Damon Cox
Company Secretary (resigned April 2021)
b)
Key management personnel remuneration
2021
$
2020
$
Short-term employee benefits
771,098
1,773,905
Post-employment benefits
38,306
100,629
Termination benefits
523,543
116,170
Share based payments
-
29,955
1,332,947
2,020,659
ANNUAL REPORT 2021 ALTURA
75
NOTES TO THE
FINANCIAL STATEMENTS continued
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.
2021
Balance at the
start of the
year
Granted as
compensation
Shares issued/
rights lapsed
Balance at the
end of the year
Vesting
31 Jan 2022
J Brown
-
-
-
-
-
P Mantell
-
-
-
-
-
A Buckler
-
-
-
-
-
D O’Neill
-
-
-
-
-
B Kuan
-
-
-
-
-
X Dai i)
-
-
-
-
-
A Cheeseman ii)
-
-
-
-
-
R Wheatley iii)
1,000,000
-
(1,000,000)
-
-
D Cox iv)
-
-
-
-
-
2020
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
J Brown
-
-
-
-
-
P Mantell
-
-
-
-
-
A Buckler
-
-
-
-
-
D O’Neill
-
-
-
-
-
B Kuan
-
-
-
-
-
X Dai i)
-
-
-
-
-
R Wheatley iii)
-
1,000,000
-
1,000,000
1,000,000
P Robinson v)
-
-
-
-
-
D Cox iv)
-
-
-
-
-
N Young vi)
-
-
-
-
-
i) X Dai resigned as Non-Executive Director effective from June 2021
ii) A Cheeseman appointed as Chief Executive Officer effective from April 2021
iii) R Wheatley resigned as Chief Financial Officer effective from November 2020
iv) D Cox resigned as Company Secretary effective from April 2021
v) P Robinson appointed Chief Operating Officer effective from February 2019 and resigned as Chief
Operating Officer effective from August 2019
vi) N Young resigned as Financial Controller effective from February 2020
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.
ALTURA ANNUAL REPORT 2021
76
NOTES TO THE
FINANCIAL STATEMENTS continued
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
performance
rights
Placement &
Securities
Purchase
Plan
Other
Balance at
the end of
the year
2021
J Brown
31,788,301
-
-
-
-
31,788,301
P Mantell ~
36,899,238
-
-
-
(36,899,238)
-
A Buckler
459,738,505
-
-
-
-
459,738,505
D O’Neill
13,633,336
-
-
-
-
13,633,336
B Kuan
26,600,000
-
-
-
-
26,600,000
X Dai $
-
-
-
-
-
-
A Cheeseman “
-
-
-
-
100,000
100,000
R Wheatley @
-
-
-
-
-
-
D Cox #
1,875,000
-
-
-
(1,875,000)
-
2020
J Brown
30,088,301
-
-
1,700,000
-
31,788,301
P Mantell ~
35,273,084
-
-
1,626,154
-
36,899,238
A Buckler
311,773,371
-
-
147,965,134
-
459,738,505
D O’Neill
13,633,336
-
-
-
-
13,633,336
B Kuan
23,000,000
61,537
-
3,538,463
-
26,600,000
X Dai $
-
-
-
-
-
-
R Wheatley @
-
-
-
-
-
-
P Robinson ^
1,000,000
-
-
-
(1,000,000)
-
N Young *
18,641,801
-
-
820,000
(19,461,801)
-
D CoX #
1,875,000
-
-
-
-
1,875,000
~ P Mantell resigned as Executive Director effective from April 2021. These amounts represent the balance
of shares held upon resignation.
“ A Cheeseman appointed as Chief Executive Officer effective from April 2021. These amounts represent the
balance of shares held upon appointment.
$ X Dai resigned as Non-Executive Director effective from June 2021. These amounts represent the balance
of shares held upon resignation.
@ R Wheatley resigned as Chief Financial Officer effective from November 2020. These amounts represent
the balance of shares held upon resignation.
^ P Robinson 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.
# D Cox resigned as Company Secretary effective from April 2021. These amounts represent the balance of
shares held upon retirement.
ANNUAL REPORT 2021 ALTURA
77
NOTES TO THE
FINANCIAL STATEMENTS continued
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
2021
J Brown
385,000
-
-
-
385,000
P Mantell ~
385,000
-
-
(385,000)
-
A Buckler
58,466,808
-
-
-
58,466,808
D O’Neill
-
-
-
-
-
B Kuan
1,000,000
-
-
-
1,000,000
X Dai $
-
-
-
-
-
R Wheatley @
-
-
-
-
-
D Cox #
-
-
-
-
-
2020
J Brown
385,000
-
-
-
385,000
P Mantell ~
385,000
-
-
-
385,000
A Buckler
58,466,808
-
-
-
58,466,808
D O’Neill
-
-
-
-
-
B Kuan
1,000,000
-
-
-
1,000,000
X Dai $
-
-
-
-
-
R Wheatley @
-
-
-
-
-
P Robinson ^
-
-
-
-
-
N Young *
385,000
-
-
(385,000)
-
D Cox #
-
-
-
-
-
~ P Mantell resigned as Executive Director effective from April 2021. These amounts represent the balance
of shares held upon resignation.
$ X Dai resigned as Non-Executive Director effective from June 2021. These amounts represent the balance
of shares held upon resignation.
@ R Wheatley resigned as Chief Financial Officer effective from November 2020. These amounts represent
the balance of shares held upon resignation.
^ P Robinson 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.
# D Cox resigned as Company Secretary effective from April 2021. These amounts represent the balance of
shares held upon retirement.
ALTURA ANNUAL REPORT 2021
78
NOTES TO THE
FINANCIAL STATEMENTS continued
25.
INVESTMENTS IN OTHER ENTITIES
a)
Joint operations
For the year ending 30 June 2021 Altura Mining Limited holds no interests in any joint operations or ventures.
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:
Country of
incorporation
Ownership interest
Name of entity
2021
%
2020
%
Altura Lithium Operations Pty Ltd
Australia
-
100
Altura Drilling Pty Ltd
Australia
100
100
Altura Minerals Pty Ltd
Australia
100
100
Minvest Australia Pty Ltd
Australia
100
100
Minvest International Corporation
Mauritius
100
100
Altura Asia Pte Ltd
Singapore
100
100
Altura Mining Philippines Inc. *
Philippines
40
40
PT Altura Indonesia
Indonesia
100
100
PT Minvest Mitra Pembangunan
Indonesia
100
100
PT Cakrawala Jasa Pratama
Indonesia
100
100
PT Minvest Jasatama Teknik
Indonesia
100
100
PT Cybertek Global Utama
Indonesia
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:
Country of
incorporation
Principal activities
Parent ownership
interest
Non-controlling
interest
Name of entity
2021
%
2020
%
2021
%
2020
%
PT Velseis Indonesia *
Indonesia
Mining services
50
50
50
50
PT Jasa Tambang Pratama #
Indonesia
Mining and exploration
70
70
30
30
PT Cahaya Permata Khatulistiwa #
Indonesia
Mining and exploration
70
70
30
30
PT Suryaraya Permata Cemerlang #
Indonesia
Mining and exploration
70
70
30
30
PT Suryaraya Cahaya Khatulistiwa #
Indonesia
Mining and exploration
70
70
30
30
PT Suryaraya Cahaya Cemerlang #
Indonesia
Mining and exploration
70
70
30
30
PT Suryaraya Permata Khatulistiwa #
Indonesia
Mining and exploration
70
70
30
30
PT Suryaraya Pusaka #
Indonesia
Mining and exploration
70
70
30
30
PT Kodio Multicom
Indonesia
Mining and exploration
56
56
44
44
PT Marangkayu Bara Makarti
Indonesia
Mining and exploration
56
56
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.
ANNUAL REPORT 2021 ALTURA
79
NOTES TO THE
FINANCIAL STATEMENTS continued
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
$
2021
Summarised statement of financial position
Current assets
262,555
Non-current assets
274,704
Total assets
537,260
Current liabilities
272,175
Non-current liabilities
(226,802)
Total liabilities
45,373
Net assets
491,887
Summarised statement of profit or loss and other
comprehensive income
Revenue
141,233
Expenses
308,936
Profit / (loss) before income tax expense
(167,703)
Income tax expense / (benefit)
-
Profit / (loss) after income tax expense
(167,703)
Other comprehensive income
(50,339)
Total comprehensive income
(218,043)
Statement of cash flows
Net cash from operating activities
(17,129)
Net cash used in investing activities
-
Net cash used in financing activities
-
Net increase / (decrease) in cash and cash equivalents
(17,129)
Other financial information
Profit attributable to non-controlling interests
(109,021)
Accumulated non-controlling interest at the end of
reporting period
245,944
The subsidiaries summarised financial information (PT Suryaraya Pusaka, PT Kodio Multicom, & PT Marangkayu
Bara Makarti) have not been disclosed for the current reporting period as these companies are part of the Tabalong
Group. The Tabalong Group has been fully impaired as at June 2021.
ALTURA ANNUAL REPORT 2021
80
NOTES TO THE
FINANCIAL STATEMENTS continued
26.
INTERESTS IN SUBSIDIARIES (continued)
PT Velseis
Indonesia
PT Suryaraya
Pusaka
PT Kodio
Multicom
PT Marangkayu
Bara Makarti
$
$
$
$
2020
Summarised statement of financial position
Current assets
475,608
184,178
1,086,154
1,085,105
Non-current assets
338,389
1,798,279
1,068,687
1,976,651
Total assets
813,997
1,982,457
2,154,841
3,061,756
Current liabilities
295,417
76,003
134,704
150,256
Non-current liabilities
(200,871)
1,289,811
894,133
1,755,873
Total liabilities
94,546
1,365,814
1,028,838
1,906,130
Net assets
719,451
616,643
1,126,003
1,155,626
Summarised statement of profit or loss and other
comprehensive income
Revenue
514,753
-
-
-
Expenses
701,142
(326)
(3,139)
(4,931)
Profit / (loss) before income tax expense
(186,389)
326
3,139
4,931
Income tax expense / (benefit)
-
-
-
-
Profit / (loss) after income tax expense
(186,389)
326
3,139
4,931
Other comprehensive income
250,450
(2,836)
(8,336)
(8,443)
Total comprehensive income
64,061
(2,510)
(5,197)
(3,512)
Statement of cash flows
Net cash from operating activities
74,333
1,496
14
14
Net cash used in investing activities
-
-
-
-
Net cash used in financing activities
-
-
-
-
Net increase / (decrease) in cash and cash equivalents
74,333
1,496
14
14
Other financial information
Profit attributable to non-controlling interests
32,031
(753)
(2,287)
(1,545)
Accumulated non-controlling interest at the end of
reporting period
329,444
(5,705)
8,586
21,250
27.
RELATED PARTIES
Transactions within the wholly-owned Group
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.
ANNUAL REPORT 2021 ALTURA
81
NOTES TO THE
FINANCIAL STATEMENTS continued
27.
RELATED PARTIES (continued)
Transactions other related parties
a)
Altura announced in June 2020 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 $1,500,000 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.
b)
Altura announced in May 2020 that it had signed a Letter of Intent (LOI) with lithium project developer Lithium
Corporation over its Nevada, USA Fish Lake Valley lithium tenements. Lithium Corporation is a related party
due a common director. Under the LOI, Altura will spend US$50,000 on documentation and project due
diligence for a 60-day extendable exclusivity period.
c)
In February 2021, The Directors via a director related entity ACN 647 358 987 Pty Ltd provided an un-secured
loan facility to fund the DOCA and the short-term working capital requirements of the Group. The facility of
$3,539,458. The facility contains a US$2,000,000 component and is provided at 8%pa repayable in April 2022.
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:
2021
$
2020
$
Cash at bank and on hand (Note 8)
372,419
2,298,091
Cash in assets classified as held for sale (note 3c))
8,426
10,237
Cash per statement of cash flows
380,845
2,308,328
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 2021:
Cash at bank and on hand
380,845
2,308,328
Short-term deposits
-
-
Cash at bank and on hand
380,845
2,308,328
ALTURA ANNUAL REPORT 2021
82
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
28.
NOTES TO STATEMENT OF CASH FLOWS (continued)
b)
Reconciliation of operating profit / (loss) after income tax to
net cash used in operating activities
Operating loss after income tax
(73,000,216)
(93,827,089)
Adjustments for non-cash income and expense items:
Share based payments
(201,028)
201,028
Loan facility fees
28,859,442
26,424,824
Depreciation of property, plant and equipment
4,493,433
12,933,368
Interest on funding facility
20,103,483
16,202,525
Foreign currency exchange rate movement
(620,984)
3,690,510
Profit on sale of subsidiary
-
(1,202,437)
Exploration expenditure written off
-
217,776
Profit on sale of assets
-
(2,091)
Impairment on assets held for sale
3,393,905
4,190,058
Loss on sale of subsidiary
23,219,672
-
(Increase) / decrease in current tax prepaid
-
21,069
Changes in assets and liabilities:
(Increase) / decrease in receivables
8,595,561
(7,245,821)
(Decrease) / increase in other creditors and accruals
(40,483,849)
182,223
(Increase) / decrease in inventories
22,515,268
(1,795,232)
(Increase) / decrease in deposits and prepayments
(202,493)
(2,983,344)
Increase / (decrease) in current lease liabilities
(524,071)
(45,902)
Increase / (decrease) in current provisions
(1,411,058)
231,843
Net cash used in operating activities
(5,262,935)
(42,806,692)
c)
Net debt reconciliation
Net debt
Cash and cash equivalents
380,845
2,308,328
Borrowings – repayable within one year
(3,539,458)
(17,736,253)
Borrowings – repayable after one year
-
(191,692,943)
Net debt
(3,158,613)
(207,120,868)
Cash and liquid investments
380,845
2,308,328
Gross debt - fixed interest rate
(3,539,458)
(209,429,196)
Gross debt - variable interest rate
-
-
Net debt
(3,158,613)
(207,120,868)
ANNUAL REPORT 2021 ALTURA
83
NOTES TO THE
FINANCIAL STATEMENTS continued
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 2020
2,308,328
(17,736,253)
(191,692,943)
(207,120,868)
Cash flows
(1,984,274)
14,109,889
182,785,007
194,910,622
Foreign exchange adjustments
56,791
86,906
8,907,936
9,501,633
Other non-cash movements
-
-
Net debt as at 30 June 2021
380,845
(3,539,458)
-
(3,158,613)
d)
Acquisition of entities
The Group did not acquire any interest in entities during the year.
2021
$
Parent
2020
$
Parent
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
373,652
3,260,320
Total assets
(1,388,218)
151,241,850
Current liabilities
1,525,892
3,148,850
Total liabilities
1,525,892
3,148,850
Net assets
(2,914,110)
148,093,000
Equity
Contributed equity
290,860,299
290,860,299
Reserves
1,601,318
1,802,346
Retained profits / (accumulated losses)
(295,375,727)
(144,569,645)
Total shareholder equity
(2,914,110)
148,093,000
Loss for the year
(155,685,726)
(41,141,431)
Total comprehensive loss for the year
(155,685,726)
(41,141,431)
(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
-
-
-
-
ALTURA ANNUAL REPORT 2021
84
NOTES TO THE
FINANCIAL STATEMENTS continued
2021
$
2020
$
30.
AUDITORS’ REMUNERATION
a)
Auditors of the Group – PKF and related network firms
Audit of financial report
-
Group (PKF Brisbane)
-
47,700
-
Group (PKF Perth)
153,750
77,250
Total audit of financial reports
153,750
124,950
Other non-audit services (PKF Brisbane)
-
84,133
Total services provided by PKF
153,750
209,083
b)
Other auditors and their related network firms
Audit of financial report
-
Foreign Subsidiaries
-
17,467
Total audit of financial reports
-
17,467
Other non-audit services
-
1,123
Total services provided by other auditors
-
18,590
31.
SUBSEQUENT EVENTS
Subsequent to the end of the financial year the following events occurred:
5 August 2021 – Altura satisfied the Conditions Precedent and formally commenced the Earn-in period for
Sayona’s (ASX: SYA) Pilbara tenements (lithium only).
19 August 2021 – Altura terminated the Put Option Agreement (POA) with LDA Capital LLC and LDA Capital
Limited (together LDA). The POA provided Altura with a standby equity finance facility, with a total valve of AUD
$50,000,000 over a three-year term period. Given the current situation it was mutually agreed between Altura
and LDA to formally terminate the agreement.
The impact of the Coronavirus (COVID-19) is ongoing and while it has not been financially positive for the
consolidated entity up to 30 June 2021, it is not practicable to estimate the potential impact, positive or
negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed
by the Australian Government and other countries, such as maintaining social distancing requirements,
quarantine, travel restrictions and any economic stimulus that may be provided
No further events have occurred since 30 September 2021, which would require disclosure in the financial report.
ANNUAL REPORT 2021 ALTURA
85
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:
2021
$
2020
$
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.
-
26,070
No losses are anticipated in respect of any of the above contingent liabilities.
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 2021.
2021
$
2020
$
No later than one year
110,832
251,600
Later than one year and not later than five years
332,496
348,400
Later than five years
-
1,024,800
443,328
1,624,800
c)
Asset acquisitions
The Group has the following commitments for asset acquisitions at 30 June 2021.
2020
$
2020
$
Capital expenditures contracted for at the balance sheet date but not recognised
in the financial statements
Property, plant and equipment
-
622,233
Mine development at cost
-
255,990
-
878,223
NOTES TO THE
FINANCIAL STATEMENTS continued
ALTURA ANNUAL REPORT 2021
86
DIRECTORS'
DECLARATION
In the Directors’ opinion:
(a)
The financial statements and notes set out on pages 17 to 72 and the remunerations report designated as audited in the
Directors Report 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 2021 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, 30 September 2021
ANNUAL REPORT 2021 ALTURA
87
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.
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”), which comprises
the consolidated statement of balance sheet as at 30 June 2021, the consolidated statement of profit or loss and
other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of
cash flows for the year then ended, 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 accompanying 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 2021 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.
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.
Material Uncertainty related to going concern
As detailed in Note 1. a), i) 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.
INDEPENDENT AUDITOR'S
REPORT
ALTURA ANNUAL REPORT 2021
88
75
PKF Perth
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.
The Directors have decided to seek a relisting of the company on the Australian Securities Exchange (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. Our opinion is not
modified in respect of this matter.
Key Audit Matter
key audit matter is a matter that, in our professional judgement, was of most significance in our audit of the
financial report of the current year. This matter was addressed in the context of our audit of the financial report as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on this matter. For the
matter below, our description of how our audit addressed this matter is provided in that context.
1 - Disposal of Altura Lithium Operations Pty Ltd and Repayment of Loan Facility
Why significant
How our audit addressed the key audit
matter
To repay the loan facility to the noteholders, the
receivers sold the main subsidiary (operations) of the
Group, Altura Lithium Operations Pty Ltd, as
disclosed in Note 3.
Significant judgement and complexity was required:
•
In determining the loss of control (disposal asset)
and the settlement date (repayment of the loan).
•
In determining the identifiable assets as part of
the sale agreement.
•
In determining the consideration received from
the sale of the asset, which was the amount to
repay to the loan note holders.
•
In determining the loss associated with sale of the
asset.
•
In determining the interest expense to account for
up until the settlement date of the loan facility.
Furthermore,
significant
auditor
attention
was
required regarding the presentation and disclosures
required per the Australian Accounting Standards in
relation to the disposal of the asset and the settlement
of the loan.
Our work included, but was not limited to, the
following procedures:
• Conducting a detailed review of the signed
agreements and deeds in relation to the sale of
the asset.
• Reviewing the approach adopted by the
receivers and administrators in arranging the
sale and repaying the secured loan noteholders.
• Reviewing the ASX announcements made by
the receivers and administrators.
• Assessing
the
appropriateness
of
the
presentation and disclosures of the sale of the
asset and repayment of the secured loan
noteholders, as noted in Note 3.
ANNUAL REPORT 2021 ALTURA
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76
PKF Perth
Other Information
Those charged with governance are responsible for the other information. The other information comprises the
information included in the consolidated entity’s annual report for the year ended 30 June 2021, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
form of assurance conclusion thereon, with the exception of the Remuneration Report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors’ for the Financial Report
The Directors of the Company are responsible for the preparation of 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:
• 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.
ALTURA ANNUAL REPORT 2021
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77
PKF Perth
• 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 2021.
In our opinion, the Remuneration Report of Altura Mining Limited for the year ended 30 June 2021, complies with
section 300A of the Corporations Act 2001.
ANNUAL REPORT 2021 ALTURA
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78
PKF Perth
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
30 September 2021
WEST PERTH,
WESTERN AUSTRALIA
ALTURA ANNUAL REPORT 2021
92
ADDITIONAL ASX
INFORMATION
CORPORATE GOVERNANCE
Pursuant to the ASX listing rules, the company’s corporate governance statement will be released in conjunction
with this report. The company’s corporate governance statement is available on the company’s website.
SCHEDULE OF MINERAL PROPERTIES
Location
Tenement Number
Interest
Tanami, Northern Territory
EL 26626
10%
ELA 26627
10%
EL 26628
10%
EL 29828
10%
Tabalong, South Kalimantan
PT Suryaraya Permata Khatulistiwa
70%
PT Suryaraya Cahaya Cemerlang
70%
PT Suryaraya Pusaka
70%
PT Kodio Multicom
56%
PT Marangkayu Bara Makarti
56%
Catanduanes, Philippines
COC 182 (Area 3) – Catanduanes
100%
Albay Region, Philippines
COC 200 (Area 4) – Rapu-Rapu
100%
Bislig Region, Philippines
COC 202 (Area 17) – Surigao del Sur
100%
Key to tenement type:
EL: Exploration Licence; P: Prospecting Licence
Notes: All Pilbara tenements are registered against Sayona Mining Limited or its wholly owned subsidiaries and therefore not reported by Altura
Mining Limited. Fish Lake Valley Claims are registered against Lithium Corporation and therefore not reported by Altura Mining Limited.
ISSUED CAPITAL
The issued capital of the company as at 30 September 2021 consists of 2,986,243,275 fully paid ordinary shares,
and 148,797,979 listed options (expiring 28 February 2022).
ANNUAL REPORT 2021 ALTURA
93
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
Shares
Options
AC Buckler (Calida Holdings Pty Ltd)
459,738,505
58,466,808
Shanshan Forever International Co., Ltd
451,361,249
Nil
MT Smith
313,239,925
48,695
20 LARGEST SHAREHOLDERS – FULLY PAID ORDINARY SHARES
Rank
Holder name
Units
% of issued
1
SHANSHAN FOREVER INTERNATIONAL CO., LTD
451,361,249
15.11%
2
CALIDA HOLDINGS PTY LTD
422,254,584
14.14%
3
MT SMITH
313,239,925
10.49%
4
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LTD
179,570,697
6.01%
5
FARJOY PTY LTD
89,207,149
2.99%
6
JP MORGAN NOMINEES AUSTRALIA LIMITED
59,279,951
1.99%
7
CITICORP NOMINEES PTY LTD
47,908,852
1.60%
8
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
46,777,583
1.57%
9
BNP PARIBAS NOMINEES PTY LTD
42,6777,841
1.43%
10
CVI EMCVF LUX FINANCE SARL
33,250,834
1.11%
11
MR ALLAN CHARLES BUCKLER
33,168,536
1.11%
12
MR JAMES STUART BROWN & MRS MICHELLE LILLIAN BROWN
27,698,914
0.93%
13
MR PAUL KEVIN MANTELL & MRS MARGRET ANN MANTELL
24,563,083
0.82%
14
CVI EMCVF LUX FINANCE SARL
19,382,110
0.65%
15
BNP PARIBAS NOMS PTY LTD
18,314,084
0.61%
16
MR BEN TEIK KUAN
15,984,616
0.65%
17
E.M. ENTERPRISES (QLD) PTY LTD
12,700,000
0.43%
18
NOMURA CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C2
12,255,740
0.42%
19
CVIC LUC FINANCE SARL
12,646,684
0.42%
20
HSMC CUSTODY NOMINEES (AUSTRALIA) LIMITED – A/C2
12,255,740
0.41%
Total
1,887,554,653
63.21%
DISTRIBUTION OF SHAREHOLDERS AS AT 30 SEPTEMBER 2021
Number of shareholders in the following distribution categories:
Fully paid ordinary shares
Options
% of issued
1–1,000
399
3.10
1,001–5,000
2,820
21.91
5,001–10,000
1,947
15.13
10,001–100,000
5,702
44.30
100,001 and over
2,004
15.57
Total
12,875
100.00
Holders of less than a marketable parcel
3,854
ADDITIONAL ASX
INFORMATION continued
ALTURA ANNUAL REPORT 2021
94
ADDITIONAL ASX
INFORMATION continued
20 LARGEST OPTION HOLDERS – LISTED OPTIONS EXPIRING 28 FEBRUARY 2022
Rank
Holder name
Units
% of issued
1
CALIDA HOLDINGS PTY LTD
58,466,808
39.29%
2
FARJOY PTY LTD
7,741,003
5.20%
3
SY CHUA
3,846,154
2.58%
4
M1NT PROPERTY PTY LTD
3,805,024
2.56%
5
P AINSWORTH
3,401,420
2.29%
6
Z INTERNATIONAL (HKG) LTD
3,343,625
2.25%
7
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED (NO 2 A/C)
2,933,329
1.97%
8
WP WAGNER
2,500,000
1.68%
9
DJ WANG
1,500,000
1.01%
10
DG & AB CARSON
1,393,726
0.94%
11
LJ COBBAN
1,355,850
0.91%
12
CS FOURTH NOMINEES PTY LTD (HSBC CUSTODY 11 A/C)
1,326,923
0.89%
13
PS TAN
1,300,000
0.87%
14
JM HEUSER & VM GILLAM (JMH SUPER A/C)
1,118,695
0.75%
15
MZ WANG
1,110,000
0.75%
16
AVGLEN PTY LTD
1,000,000
0.67%
17
BT KUAN
1,000,000
0.67%
18
CITICORP NOMINEES PTY LTD L
760,945
0.51%
19
GHJC PTY LTD
613,697
0.48%
20
ROBIS WEALTH MANAGEMENT PTY LTD
700,000
0.47%
Total
99,617,199
66.74%
DISTRIBUTION OF OPTION HOLDERS AS AT 30 SEPTEMBER 2021
Number of option holders in the following distribution categories:
Fully paid ordinary shares
Options
% of issued
1–1,000
5
0.00
1,001–5,000
3
0.01
5,001–10,000
328
2.12
10,001–100,000
832
21.00
100,001 and over
74
76.87
Total
1,242
100.00
ANNUAL REPORT 2021 ALTURA
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ADDITIONAL ASX
INFORMATION continued
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 23 September 2021 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 23 September 2021 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 23 September 2021 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.
ALTURA ANNUAL REPORT 2021
96
The information in this statement is based on,
and fairly represents, information and supporting
documentation prepared by the competent persons
listed below.
The information in this report that relates to
Exploration Results is based on and fairly represents
information and supporting documentation
prepared by Mr Stephen John Barber (Exploration
Manager of Altura Mining Limited). Mr Barber is a
member of the Australasian Institute of Mining and
Metallurgy (AuslMM) and has sufficient experience
of relevance to the styles of mineralisation and types
of deposits under consideration, and to the activities
undertaken to qualify as a Competent Person as
defined in the 2012 Edition of the Joint Ore Reserves
Committee (JORC) Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore
Reserves. Mr Barber consents to the inclusion in this
report of the matters based on his information in the
form and context in which they appear.
COMPETENT PERSON
STATEMENT
ANNUAL REPORT 2021 ALTURA
97
alturamining.com