AMANI GOLD LIMITED
(ABN 14 113 517 203)
ANNUAL REPORT
2021
Amani Gold Limited
Corporate Directory
Directors
Klaus Eckhof
Tsang Sun King
Maohuai Cong
John Smyth
Peter Huljich
Company Secretary
James Bahen
Registered Office
Suite 1, 295 Rokeby Road
Subiaco, WA, Australia 6108
Telephone:
+61 1300 258 985
Auditors
Share Registry
BDO Audit (SA) Pty Ltd
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
Advanced Share Registry Limited
110 Stirling Highway
Nedlands Western Australia 6009
Telephone: +61 8 9389 8033
Facsimile: +61 8 9262 3723
Website:
www.amanigold.com
Securities trade on the Australian Securities Exchange – ANL
Page 1
Amani Gold Limited
Contents
For the year ended 30 June 2021
Chairman’s Message
Review of Operations
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
Additional Shareholder Information
3
4
8
24
25
26
27
29
30
60
61
64
Page 2
Amani Gold Limited
Chairman’s Message
For the year ended 30 June 2021
Dear Shareholders,
I am pleased to present the 2021 Annual Report for Amani Gold Limited (ASX: ANL).
This year has seen your Company focus on growing the resources at our flagship Giro Gold Project in the Democratic
Republic of Congo.
The Giro Gold Project global resource for Kebigada and Douze Match deposits now exceeds 4.4Moz contained gold;
with a total Indicated and Inferred Mineral Resource Estimate of 132Mt @ 1.04g/t Au, for 4.4Moz gold (0.5g/t Au
cut-off grade).
We believe we have a major gold deposit here at Giro, Amani now has a very solid resource base to move to our aim
of significant gold production from a new African gold mine.
Amani is currently finalising plans for a diamond drill program at its 4.1Moz Kebigada Deposit. The goal of this
drill program will be to undertake in-fill drilling to further define the Central Kebigada Ore Body. The program
will also target the Eastern Kebigada Ore Body which has seen limited drilling at depth but returned a series of
good intersections in previously drilled RC holes including GRRC204 (89m@1.58g/t Au from 8m including
38m@2.45g/t Au from 8m). For further information, see ASX Announcement First Results from further in-fill
drilling at Kebigada Giro Project dated 9 March 2017.
I look forward to more exploration successes at Giro Project this year.
I take this opportunity to thank all our staff and contractors for their dedicated work in substantially advancing our
gold projects this year.
The Company takes this opportunity to acknowledge the ongoing support of our long term shareholders and
welcomes new shareholders that have invested in Amani over the past year.
Klaus Eckhof
Chairman
Page 3
Amani Gold Limited
Review of Operations
For the year ended 30 June 2021
REVIEW OF OPERATIONS
Giro Gold Project
The Giro Gold Project comprises two exploration permits covering a surface area of 497km² and lies within the Kilo-
Moto Belt of the DRC, a significant under-explored greenstone belt which hosts Randgold Resources’ 17 million-
ounce Kibali group of deposits within 35km of Giro. The nearby Kibali Gold Project produces more than 600,000oz
gold per annum.
Giro Gold Project global resource for Kebigada and Douze Match deposits exceeds 4.4Moz contained gold; with a
total Indicated and Inferred Mineral Resource Estimate of 132Mt @ 1.04g/t Au, for 4.4Moz gold (0.5g/t Au cut-off
grade).
DRC Feasibility Study Upgrade
In December, Amani advised that the Beijing General Research Institute of Mining and Metallurgy (“BGRIMM”)
had commenced an update of the Kebigada deposit DRC Feasibility Study. The Feasibility Study will comply with,
and in many aspects exceed, current DRC regulations. BGRIMM have supplied the DRC FS in draft form which is
now under review and analysis by Amani Gold.
The updated DRC FS will incorporate the current Kebigada mineral resource estimate (MRE) of 4.1Moz Au (0.5g/t
Au cut-off grade, Figures 1 and 2, Table 1 and refer ASX Announcement 19 March 2020), which is substantially
larger than the Kebigada maiden mineral resource estimate of 2.1Moz Au (0.9g/t Au cut-off grade, Figures 1 and 2,
Table 3, see ASX Announcement 27 August 2017) used in previous studies.
Figure 1 - Map of Haute Uele Province of the Democratic Republic of Congo, showing the location of the Kebigada and Douze Match gold
deposits and tenement, Giro Gold Project
(significant figures do not imply precision and rounding may occur in totals)
Page 4
Amani Gold Limited
Review of Operations
For the year ended 30 June 2021
The Kebigada resource followed diamond core drilling results which successfully targeted deeper high-grade
sulphide associated gold mineralisation within the central core of the Kebigada deposit. Drillholes GRDD034 and
GRDD035 are 240m apart and both outlined high-grade gold mineralisation deeper than previously intersected at the
Kebigada deposit. These gold assay results and the current Kebigada MRE indicate the potential for the Kebigada
deposit to substantially grow via targeted deeper drilling along the entire strike of the orebody.
Figure 2 - Map of Giro Gold Project, showing Kebigada and Douze Match deposits, tenement, surface geology, prospect
locations and diamond core drillholes GRDD034 and GRDD035 (Green)
Page 5
Amani Gold Limited
Review of Operations
For the year ended 30 June 2021
Table 1. Giro Gold Project Global MRE at 0.5 g/t Au Cut-off Grade
Kebigada Deposit
Douze Match Deposit
Combined
Tonnes
(Mt)
69
54
Au
(g/t)
1.09
0.95
Au
(Moz)
Tonnes
(Mt)
2.4
1.7
2.2
5.8
Au
(g/t)
1.2
1.2
Au
(Moz)
0.09
0.23
Tonnes
(Mt)
71
60
Au
(g/t)
1.10
0.98
Au
(Moz)
2.5
1.9
4.4
Classification
Indicated
Inferred
Total
124
1.04
(significant figures do not imply precision and rounding may occur in totals)
1.03
0.32
132
1.2
8.1
4.1
Table 2. Grade-Tonnage Data for Kebigada MRE (MSA, August 2017)
Classification
Cut-Off
(Au g/t)
Tonnes
(Mt)
Au
(g/t)
Au
(Moz)
Indicated
Inferred
Total
0.6
0.9
1.3
1.5
0.6
0.9
1.3
1.5
0.6
0.9
1.3
1.5
24.76
16.48
7.56
5.21
50.40
29.14
11.78
8.63
75.16
45.62
19.34
13.84
1.27
1.53
2.08
2.38
1.14
1.42
1.94
2.15
1.18
1.46
2.00
2.24
1.01
0.81
0.50
0.40
1.84
1.33
0.74
0.60
2.85
2.14
1.24
0.99
(significant figures do not imply precision and rounding may occur in totals)
Table 3. Grade-Tonnage Data for Kebigada MRE (MSA, August 2017)
Classification
Cut-Off
(Au g/t)
Tonnes
(Mt)
Au
(g/t)
Au
(Moz)
Indicated
Inferred
Total
0.6
0.9
1.3
1.5
0.6
0.9
1.3
1.5
0.6
0.9
1.3
24.76
16.48
7.56
5.21
50.40
29.14
11.78
8.63
75.16
45.62
19.34
1.27
1.53
2.08
2.38
1.14
1.42
1.94
2.15
1.18
1.46
2.00
1.01
0.81
0.50
0.40
1.84
1.33
0.74
0.60
2.85
2.14
1.24
13.84
(significant figures do not imply precision and rounding may occur in totals)
2.24
0.99
1.5
Page 6
Amani Gold Limited
Review of Operations
For the year ended 30 June 2021
GOLD TRADING, TANZANIA (Amani 60%)
Amani secured a Gold Dealer Licence in Tanzania in November 2019 via a 60% equity interest in Amago Trading
Limited. The Gold Dealer Licence No. DL013/GTA/2019-2020 was granted to Amago by Ministry of Minerals
Mining Commission, The United Republic of Tanzania.
Amago Trading Limited sources gold from local artisanal miners from the Geita region of Tanzania. The gold is
smelted at the Amago office and the local miners are paid at an agreed price. The gold is transported to a Hong Kong
smelter by a security firm. Amago receives payment for the smelted gold from the Hong Kong gold refinery the same
day as is processed. Amago pays the Hong Kong smelter a processing fee of $8 US per ounce of smelted gold.
Revenue is recognized when control of the goods and services have passed to the gold refinery and costs incurred or
to be incurred in respect of the transaction can be measured reliably. Control is considered passed to the gold refinery
at the time of “delivery of goods to the customer”, hence revenue is recognized at a point in time.
Amani temporarily ceased gold trading in Tanzania in early 2020 when Covid-19 made it difficult for staff to travel
and source gold in the Geita region. The company is currently in the process of disposing of the business at the date
of this report.
CORPORATE BOARD REORGANIZATION
In May 2021, Amani announced that changes to the Board of Directors, Non-Executive Director Mr Antony
Truelove and Company Secretary Nick Harding resigned from their duties with Amani Gold. Mr Peter Huljich and
Mr Campbell Smyth were appointed to the board as Non-Executive Directors, Mr James Bahen was appointed
Company Secretary and Mr Conrad Karageorge appointed as Chief Operating Officer
Competent Person’s Statement
The information in this report that relates to exploration results, mineral resources and ore reserves is based on, and
fairly represents information and supporting documentation prepared by Mr Klaus Eckhof, a Competent Person who
is a member of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of
Geoscientists. Mr Eckhof is Executive Chairman of Amani Gold Limited. He has sufficient experience that is relevant
to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resource and Ore Reserves”. Mr Eckhof consents to the inclusion in this report of the matters based on his
information in the form and context in which it appears.
The information in this report that relates to the Giro Gold Project has been previously reported by the Company in
compliance with JORC 2012 in various market releases. The Company confirms that it is not aware of any new
information or data that materially affects the information included in those earlier market announcements.
Page 7
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Your Directors present their report together with the financial statements of Amani Gold Limited and the entities it
controlled at the end of, or during, the year ended 30 June 2021 (“the consolidated entity” or “Group”) and the
auditor’s report thereon.
DIRECTORS
The names and details of the Directors in office during or since the end of the financial year are as follows. Directors
were in office for the entire year unless otherwise stated.
Klaus Eckhof 1
Company’s Chairman and Acting
Managing Director
Dip. Geol. TU, AusIMM
(appointed Director on 30 January 2019)
1 With effect from 9 April 2019, Mr Eckhof was
appointed as the Company’s Chairman.
2 With effect from 28 August 2020, Mr Eckhof was
appointed as Executive Chairman.
3With effect from 25 February 2021, Mr Eckhof was
appointed as Acting Managing Director
Mr Eckhof is a geologist with more than 25 years experience identifying,
exploring and developing mineral deposits around the world.
Mr Eckhof worked for Mount Edon Gold Mines Ltd as Business
Development Manager before it was acquired by Canadian mining company,
Teck. In 1994, he founded Spinifex Gold Ltd and Lafayette Mining Ltd, both
of which successfully delineated gold and base metal deposits. Mr. Eckhof
has spent numerous years developing contacts within the DRC with several
mining deals being very successfully executed.
In late 2003, Mr Eckhof founded Moto Goldmines, which acquired the Moto
Gold Project in the DRC. There Mr Eckhof and his team raised over $100
million and delineated more than 12Moz of gold and delivered a feasibility
study within four years from the commencement of exploration. Moto
Goldmines was subsequently acquired by Randgold Resources for $488m,
who poured first gold in September 2013. The resource now stands at some
22Moz of gold.
Mr Eckhof previously served as Amani’s Managing Director and Chief
Executive Officer up to 12 August 2014, and as part-time Executive
Chairman up to 27 March 2018.
In the last three years, Mr Eckhof has been a director of Argent Minerals
Limited (resigned 23 April 2018), AVZ Minerals Limited (resigned 26 June
2018), Okapi Resources Limited (retired 29 November 2019) and is current
a director of and Lachlan Star Limited.
Sik Lap Chan
Managing Director and CEO
MAusIMM, MAIG
(appointed Director on 11 July 2017 and
resigned 27 August 2020)
Mr Sik Lap Chan holds a Bachelor of Science degree with first class honors
in the Department of Earth Sciences from the University of Hong Kong in
2004. He subsequently obtained a Masters in Philosophy and lectured, both
at the University of Hong Kong from 2013 to 2014.
Mr Chan is a professional geologist and valuer with more than 12 years
experience in the mining industry. He has been involved in the planning,
implementation and supervision of various exploration programs,
resources/reserve estimation, open pit and underground production,
feasibility
compilation,
JORC
Engineering/Procurement/Construction (EPC)/Management, valuation and
listing preparation for mineral assets in Australia, China, North America,
Central and South-East Asia.
studies,
report
Mr Chan has held senior management positions in diverse international
exploration and mining companies providing him experience in corporate
management,
and
environmental, health and safety. He has also undertaken a number of senior
executive roles with mining consulting and valuation companies.
development
government
business
liaisons,
Page 8
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Grant Thomas
Executive Director
BSc (Hon)
(Director from 1 January 2018 to 16
November 2018. Reappointed as a Director
on 21 December 2018 and resigned 17
August 2020)
Qiuming Yu
Executive Director
(appointed Director on 11 July 2017 and
removed on 15 October 2020)
In the last three years Mr Chan has not been, and is currently not, a director
of any other ASX listed companies.
Mr Thomas is a geoscientist and experienced company director having
served as Managing Director of ASX listed Tianshan Goldfields Limited,
Celsius Coal Limited and ActiveX Limited. He has also held senior positions
with Rio Tinto Exploration (Australia, Brazil and China) and Hamersley
Iron.
Mr Thomas has over 35 years of professional experience covering project
acquisition, mineral exploration and resource project evaluations for several
minerals, including diamonds, gold, iron ore, copper, lead, zinc, uranium,
fluorspar and coal in Australia, China, South Africa, Tajikistan, Kazakhstan,
Brazil, Cambodia and Mongolia.
Mr Thomas has completed several substantial capital raisings in London,
Australia, Hong Kong and Singapore. He has also been involved with
successful project leadership and exploration discoveries within Australia
and China including; Homestead, Mount Sheila and Mount Sylvia (iron ore)
and the 2.4Moz Au Xinjiang Gold Mountain and Kuan Gou (gold)
discoveries.
In the past three years Mr Thomas has been a director of ASX listed
companies ActivEX Limited (resigned 19 February 2018) and Kazakhstan
Potash Corporation Limited (resigned 8 May 2019).
Mr Qiuming Yu holds a Bachelor’s degree from Nanjing University of
China. He has a wealth of mine investment, development and management
experience. In 2006, Mr Yu initiated the creation of China Poly Group
Energy Sector (Poly Energy Holdings Limited) (Poly Energy), the main
business of which is the development of nonferrous metals and coal
resources. He has been instrumental in the development of a number of
producing copper-zinc mines in China.
In the last three years Qiuming Yu has not been, and is currently not, a
director of any other ASX listed companies.
Maohuai Cong
Non-Executive Director
(appointed Director on 27 August 2020)
Mr Cong Mr Cong is currently General Director of Amani Consulting and
Director of Shining Mining Limited, which is the Company’s largest
shareholder. Mr. Cong brings to the Board over 20 years of mining and
construction experience in the DRC.
In the last three years Maohuai Cong has not been, and is currently not, a
director of any other ASX listed companies.
King Sun Tsang
Non-Executive Director
(appointed Director on 29 January 2020)
Mr Tsang is a certified public accountant and experienced Company
Director. Currently, he is the CFO and Co, Sec of Amber Hill Financial
Holdings Limited which is a listed company in HKEX.
Mr Tsang has 10 years of professional experience providing advice to
businesses across various industries, with a particular focus on corporate
finance and business advisory services. His career has spanned both the
professional practice and commercial arenas and he has held executive roles
with HKEX listed companies as Executive Director, Chief Financial Officer,
and Company Secretary. Those roles aided in the development of a
Page 9
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Antony Truelove2
Non-Executive Director
BSc (Hon)
(Director since 27 March 2018 and resigned
27 May 2021)
2 Mr Truelove is considered to be an Independent
Non-Executive Director
John Smyth
Non-Executive Director
(appointed Director on 27 May 2021)
comprehensive understanding of businesses and provided exposure to
management and oversight of significant corporate transactions (M&A),
acquisitions and divestments, and financing initiatives.
Mr Tsang holds a Juris Doctor Degree and Bachelor degree in Business and
Finance from The Chinese University of Hong Kong and Hong Kong
Polytechnic University respectively.
In the last three years King Sun Tsang has not been, and is currently not, a
director of any other ASX listed companies.
Mr Truelove is a geologist and experienced company director and is
currently technical director of unlisted UK based companies Anglo Saxony
Mining Ltd and Brazil Tungsten Holdings Ltd and COO of AIM listed
company Panthera Resources Plc. Mr Truelove has previously floated, and
served as Managing Director of, ASX listed company Southern Cross
Goldfields Limited and has held senior positions with Billiton, Newmont,
Newcrest and Delta Gold. Mr Truelove has 35 years of professional
experience in the resource industry covering project acquisition, mineral
exploration and feasibility studies for gold and tin mineralisation. He has
been involved with the discovery and definition of over 15 million ounces of
gold and 120,000t tin, plus associated zinc and indium. He also has
considerable experience in base metals, iron ore and nickel exploration. Mr
Truelove has experience working in Australia, Indonesia, India, China, UK,
Germany, Zimbabwe, Brazil and West Africa. Mr Truelove graduated from
Adelaide University with a Bachelor of Science with First Class Honors in
1981.
In the last three years Mr Truelove has not been, and is currently not, a
director of any other ASX listed companies.
Extensive experience in the investment banking industry in both fund
management and capital raising. Former fund manager with Lion Resource
Management where he co-managed mining funds – both mutual and
specialist portfolios focused on TSX Venture and ASX listed junior resource
companies that grew to be among the top performing sector funds at the time
and also with Phoenix Gold Fund, a specialty precious metals fund and key
investor in many growth companies in the precious metals sector including,
most notably Bolnisi Gold, Avoca Resources and Wesdome Gold Mines. He
also established Cornerstone Advisors, a corporate finance, market
development and asset acquisition consultancy with clients including TNG
Ltd., Aquiline Resources, Exeter Resources and Paramount Gold. Mr.
Smyth currently manages personal assets, investing in the resources, energy,
technology and medical sectors and assists management in asset acquisition
and corporate development. Mr. Smyth holds a Finance Degree from the
University of Australia.
Mr Smyth is also an independent Non-Executive Director of GoldOz Limited
(ASX:G79).
Page 10
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Peter Huljich
Non-Executive Director
(appointed Director on 27 May 2021)
Peter has over 25 years' experience in the legal, natural resources and
banking sectors with a particular expertise in capital markets, mining,
commodities and African related matters.
He has worked in London for several prestigious investment banks, including
Goldman Sachs, Barclays Capital, Lehman Brothers and Macquarie Bank,
with a focus on Commodities and Equity and Debt Capital markets. He has
extensive on-the-ground African mining, oil & gas and infrastructure
experience as the Senior Negotiator and Advisor for Power, Mining and
Infrastructure at Industrial Promotion Services, the global infrastructure
development arm of the Aga Khan Fund for Economic Development
(AKFED) whilst resident in Nairobi, Kenya.
Peter holds a Bachelor of Commerce and a Bachelor of Laws from the
University of Western Australia and is a Graduate of the Securities Institute
of Australia, with national prizes in Applied Valuation and Financial
Analysis. He is also a graduate of the Australian Institute of Company
Directors' course.
Peter is also an independent Non-Executive Director of ASX listed, AVZ
Minerals Limited (ASX: AVZ), Kogi Iron Limited (ASX:KFE) and GoldOz
Limited (ASX:G79).
COMPANY SECRETARY
Nick Harding (resigned 27 May
2021)
Mr Harding was appointed as Company Secretary of Amani Gold Limited
on 30 November 2019. Mr Harding resigned 27 May 2021.
James Bahen (appointed 27 May
2021)
Mr Bahen was appointed as Company Secretary of Amani Gold Limited on
27 May 2021.
CORPORATE STRUCTURE
Amani Gold Limited is a limited liability company that is incorporated and domiciled in Australia. During the
financial year, it had the following subsidiaries:
Amani Consulting sarl
Giro Goldfields sarl
Amani Minerals (HK) Limited
Congold sasu
Amago Trading Tanzania Limited
Burey Resources Pty Limited
PRINCIPAL ACTIVITIES
The principal activity of the consolidated entity during the course of the year was acquiring and exploring mineral
interests, prospective for precious metals and energy in DRC.
RESULTS AND DIVIDENDS
The consolidated loss after tax for the year ended 30 June 2021 was $4,188,210 (30 June 2020: $3,983,939). No
dividends were paid during the year and the Directors do not recommend payment of a dividend.
Page 11
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
EARNINGS PER SHARE
Basic loss per share for the year was 0.044 cents (30 June 2020: 0.067 cents).
REVIEW OF OPERATIONS / OPERATING AND FINANCIAL REVIEW
The Group is engaged in mineral exploration in the Democratic Republic of Congo (“DRC”) and gold trading in
Tanzania.
A review of the Group’s operations, including information on exploration activity and gold trading and results
thereof, financial position, strategies and projects of the consolidated entity during the year ended 30 June 2021 is
provided in this Financial Report and, in particular, in the "Review of Operations" section immediately preceding
this Directors’ Report. The Group’s financial position, financial performance and use of funds information for the
financial year is provided in the financial statements that follow this Directors’ Report.
The Group is primarily an exploration entity, although gold trading in Tanzania contributed in a minor way to
operating revenue during the year. Gold trading was curtailed in early 2020 due travel restrictions caused by Covid-
19. The Directors’ consider the Group’s performance to be primarily based on the success of exploration activity,
acquisition of additional prospective mineral interests and, in general, the value added to the Group’s mineral
portfolio during the course of the financial year. The gold trading business ceased operations and is currently in the
process of being disposed.
Whilst performance can be gauged by reference to market capitalisation, that measure is also subject to numerous
external factors. These external factors can be specific to the Group, generic to the mining industry and generic to
the stock market as a whole and the Board and management would only be able to control a small number of these
factors.
The Group’s business strategy for the financial year ahead and, in the foreseeable future, is to continue exploration
activity on the Group’s existing mineral project, identify and assess new mineral project opportunities in the DRC
and review development strategies where individual projects have reached a stage that allows for such an assessment.
Due to the inherent risky nature of the Group’s activities, the Directors are unable to comment on the likely results
or success of these strategies. The Group’s activities are also subject to numerous risks, mostly outside the Board’s
and management’s control. These risks can be specific to the Group, generic to the mining industry and generic to
the stock market as a whole. The key risks, expressed in summary form, affecting the Group and its future
performance include but are not limited to:
Geological and technical risk posed to exploration and commercial exploitation success;
Sovereign risk, change in government policy, change in mining and fiscal legislation;
Prevention of access by reason of political or civil unrest, disease, outbreak of hostilities, inability to obtain
regulatory or landowner consents or approvals, or native title issues;
force majeure events;
change in metal market conditions;
mineral title tenure and renewal risks; and
capital requirement and lack of future funding.
Amago Trading Limited sources gold from local artisanal miners from the Geita region of Tanzania. The gold trading
activities were ceased in March 2020 when Covid-19 made it difficult for staff to travel and source gold in the Geita
region. The gold trading business ceased operations and is currently in the process of being disposed.
This is not an exhaustive list of risks faced by the Group or an investment in it. There are other risks generic to the
stock market and the world economy as a whole and other risks generic to the mining industry, all of which can
impact on the Group.
Page 12
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
In the opinion of the Directors, significant changes in the state of affairs of the Group that occurred during the year
ended 30 June 2021 were as follows:
On 27 August 2020, Mr. Maohuai Cong was appointed as a Director of Amani Gold Limited. Resignation of
Mr Chan Sik Lap as Managing Director On 27 August 2020, Mr. Chan Sik Lap resigned as Managing
Director of Amani Gold Limited.
On 15 October 2020, Mr. Qiuming Yu, a representative of Luck Winner, was removed as Executive Director
of Amani Gold Limited.
On 23 December 2020, Amani advised that the Beijing General Research Institute of Mining
and Metallurgy (“BGRIMM”) had commenced an update of the Kebigada deposit D RC
Feasibility Study.
On 23 December 2020, Amani announced that after further detailed Due Diligence, including technical and
legal aspects, along with recent field inspections of tenement areas by field geologists, the Company has
decided not to pursue the Gada project (see ASX Announcement 23 December 2020). In the short-term funds
and resources will be allocated to Giro Project such as the DRC Feasibility Study and Kebigada drill testing.
Medium term, Amani will seek to acquire additional gold projects that closely complement Giro.
On 8 February 2021, Amani announced a two Tranche placement of 3,000,000,000 shares at $0.001 per share
to raise $3.0m (refer ASX announcement 8 February 2021), each Placement Share included a 1.0 free
attaching listed options, with each having an exercise price of 0.15 cents and expiry date 15 January 2024.
Tranche 1 was completed on 18 February 2021.
On 25 February 2021, Mr. Klaus Eckhof, was appointed Executive Chairman and Managing Director of
Amani Gold Limited. Mr Eckhof will be paid a salary of $20,000 per month and receive 1 billion performance
rights, which will have a term of 3 years and are subject to approval by shareholders at a General Meeting to
be convened.
On 27 May 2021, Amani announced that changes to the Board of Directors, Non-Executive Director Mr
Antony Truelove and Company Secretary Nick Harding resigned from their duties with Amani Gold. Mr
Peter Huljich and Mr Campbell Smyth were appointed to the board as Non-Executive Directors, Mr James
Bahen was appointed Company Secretary and Mr Conrad Karageorge appointed as Chief Operating Officer.
EVENTS SUBSEQUENT TO REPORTING DATE
Since the end of the financial year and to the date of this report no matter or circumstance has arisen which has
significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those
operations or the state of affairs of the consolidated entity in subsequent financial years other than the matters referred
to below.
Subsequent to year end, the Group announced that it had received commitments for a two tranche placement to
sophisticated and professional investors to raise to $7 million to fund ongoing exploration activities at the Giro gold
projects in the DRC and meet ongoing working capital requirements. Tranche 1 had raised $1.8 million with Tranche
2 is subject to shareholder approval but will raise up to $5.2m when approved.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the
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 other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly
affect the entity's operations, the results of those operations, or the entity's state of affairs in future financial years.
Page 13
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Company’s objective is to maximise shareholder value through the discovery and delineation of significant
mineral deposits. The Directors will also continue to assess additional opportunities within the mineral and energy
sectors in Central Africa.
The Directors are unable to comment on the likely results from the Company’s planned exploration and pre-
development activities due to the speculative nature of such activities.
DIRECTORS’ MEETINGS
The number of meetings of the Company’s Directors and the number of meetings attended by each Director during
the year ended 30 June 2021 are:
Directors’ meetings held during
period of office
Directors’ meetings attended
Klaus Eckhof
Chan Sik Lap (resigned 27 August 2020)
Grant Thomas (resigned 18 August 2020)
Yu Qiuming (removed 15 October 2020)
Antony Truelove (resigned 27 May 2021)
Tsang King Sun
Maohuai Cong (appointed 27 August 2020)
John Smyth (appointed 27 May 2021)
Peter Huljich (appointed 27 May 2021)
6
-
-
-
5
6
6
1
1
6
-
-
-
5
5
-
1
1
There were 6 directors’ meetings held during the year. However, matters of Board business have also been resolved
by circular resolutions of Directors, which are a record of decisions made at a number of informal meetings of the
Directors held to control, implement and monitor the Group’s activities throughout the period.
At present, the Company does not have any formally constituted committees of the Board. The Directors consider
that the Group is not of a size nor are its affairs of such complexity as to justify the formation of special committees.
DIRECTORS’ INTERESTS
The interests of each Director in the securities of Amani Gold Limited at the date of this report are as follows:
Fully Paid
Ordinary
Shares
Listed Options
Performance
Rights
(Expiring 11/11/22)
Performance
Rights
(Expiring 27/5/22)
Performance
Rights
(Expiring 25/05/24)
Klaus Eckhof
Tsang King Sun
-
-
-
-
John Smyth
91,847,737
142,500,000
Peter Huljich
10,800,000
35,000,000
Maohuai Cong
833,880,368
-
137,500,000(1)
240,000,000(2) 1,000,000,000(3)
-
-
-
-
-
-
-
-
-
-
-
-
Page 14
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
(1) Performance rights vest over three equal tranches and convert into shares on a one-for-one basis in the event that the company’s
shares trade at minimum volume weighted average prices (tranche 1: $0.0075; tranche 2: $0.01; and tranche 3: $0.0125) for 10
consecutive trading days.
(2) Performance rights vest over three equal tranches and convert into shares on a one-for-one basis in the event that the company’s
shares trade at minimum volume weighted average prices (tranche 1: $0.0075; tranche 2: $0.01; and tranche 3: $0.0125) for 10
consecutive trading days.
(3) Performance rights vest over three equal tranches and convert into shares on a one-for-one basis in the event that the company’s
shares trade at minimum volume weighted average prices (tranche 1: $0.0015; tranche 2: $0.002; and tranche 3: $0.003) for 20
consecutive trading days.
SHARE OPTIONS AND PERFORMANCE RIGHTS
As at the date of this report, the following listed options were on issue.
Number
Listed Options
8,328,749,997
Exercise
Price
$0.0015
Expiry Date
15 Jan 2024
1.5 billion listed options were issued to a corporate advisor as part of the cost for a placement. With each option
having an exercise price of $0.0015 and expiry date three years from date of issue. The fair value of the Listed
Options estimated was $1,498,435. None of the Listed Options vested during the reporting period. An amount of
$1,498,435 was recognized as share issue costs within contributed equity in the current period. The remaining
options were free attaching for share placements conducted.
As at the date of this report, the following unlisted options were on issue.
Unlisted Options
Number
40,000,000
40,000,000
40,000,000
12,000,000
12,000,000
12,000,000
Exercise Price
$0.0075
$0.01
$0.0125
$0.0075
$0.01
$0.0125
Expiry Date
27 May 2022
27 May 2022
27 May 2022
15 Jan 2023
15 Jan 2023
15 Jan 2023
There were no unlisted options issued to employees during the year under the Employee Option Plan. During the
prior year, 36 million unlisted options were issued to a corporate advisor during the year, with such options issued
with shareholder approval. No unlisted options were exercised.
As at the date of this report, the following performance rights were on issue.
Performance Rights
Number
229,000,000
229,000,000
229,000,000
10,000,000
10,000,000
10,000,000
116,666,666
116,666,667
116,666,667
333,333,333
333,333,333
333,333,334
Vesting Price
$0.0075
$0.01
$0.0125
$0.0075
$0.01
$0.0125
$0.0075
$0.01
$0.0125
$0.0015
$0.002
$0.003
Expiry Date
27 May 2022
27 May 2022
27 May 2022
31 December 2021
31 December 2021
31 December 2021
11 November 2022
11 November 2022
11 November 2022
25 February 2024
25 February 2024
25 February 2024
Page 15
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
1,000,0000,000 million performance rights were granted during the current year, in which they were issued to Klaus
Eckof. No performance rights vested during the year.
During the prior year, 350 million performance rights were granted, which were all issued to directors. No
performance rights vested during the year.
This report outlays the remuneration arrangements in place for the Directors of Amani Gold Limited. The information
provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001.
Remuneration Report – Audited
The Directors in office during the period are contained on Page 19 of this report. Other than the Directors there were
no Key Management Personnel.
Remuneration philosophy
The Board reviews the remuneration packages applicable to the executive Directors, Managing Director and Chief
Executive Officer, and non-executive Directors on an annual basis. The broad remuneration policy is to ensure the
remuneration package properly reflects the person’s duties and responsibilities and level of performance and that
remuneration is competitive in attracting, retaining and motivating people of the highest quality. Independent advice
on the appropriateness of remuneration packages is obtained, where necessary, although no such independent advice
was sought during the financial year.
Remuneration is not linked to past company performance but rather towards generating future shareholder wealth
through share price performance. As a minerals explorer, the Company does not generate operating revenues or
earnings and company performance, at this stage, can only be judged by exploration success and ultimately
shareholder value. Market capitalisation is one measure of shareholder value but this is subject to many external
factors over which the Company has no control. Consequently linking remuneration to past performance is difficult
to implement and not in the best interests of the Company. Presently, total fixed remuneration for senior executives
is determined by reference to market conditions and incentives for our performance are provided by way of options
or performance rights over unissued shares. The Directors believe that this best aligns the interests of the shareholders
with those of the senior executives.
Remuneration committee
The Company does not have a formally constituted remuneration committee of the Board. The Directors consider
that the Group is not of a size nor are its affairs of such complexity as to justify the formation of a Remuneration
committee.
The Board assesses the appropriateness of the nature and amount of remuneration of Directors and senior managers
on a periodical basis by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention of a high quality board and management team.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive Directors and executive
Director remuneration is separate and distinct.
Non-executive Directors remuneration
Objective
The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and
retain directors of the highest calibre, whilst incurring a cost which is acceptable to shareholders.
Structure
Page 16
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive Directors shall
be determined from time to time by a general meeting. An amount not exceeding the amount determined is then
divided between the directors as agreed. The present limit of approved aggregate remuneration is $200,000 per year.
The Board aims to reviews the remuneration packages applicable to the non-executive Directors on a regular basis.
The Board considers fees paid to non-executive directors of comparable companies when undertaking its review
process. The Board determines the level of remuneration to be paid to non-executive Directors as considered
appropriate in the circumstances. Non-executive Directors fees are currently $40,500 per annum.
The remuneration of the non-executive Directors for the year ending 30 June 2021 is detailed in Table 2 of this report.
Executive Directors remuneration
Objective
The Company aims to reward Executive Directors with a level of remuneration commensurate with their position
and responsibilities within the Company and so as to:
align the interests of the Executive Directors with those of shareholders;
link reward with the strategic goals and performance of the Company; and
ensure total remuneration is competitive by market standards.
Structure
Remuneration consists of the following key elements:
Fixed remuneration
Variable remuneration
Fixed remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the
position and is competitive in the market. The Board aims to review fixed remuneration annually and the process
consists of a review of companywide, business unit and individual performance, relevant comparative remuneration
in the market and internal and, where appropriate, external advice on policies and practice.
The fixed component of the Executive Director remuneration for the year ending 30 June 2021 is detailed in Table 2
of this report.
Variable remuneration – Long Term Incentive (‘LTI’)
Objective
The objective of the LTI plan is to reward executives and senior managers in a manner which aligns this element of
remuneration with the creation of shareholder wealth.
As such LTI grants are only made to executives who are able to influence the generation of shareholder wealth and
thus have a direct impact on the Group’s performance.
Structure
LTI grants to executives are delivered in the form of options and performance rights. The issue of options /
performance rights as part of the remuneration packages of executive and non-executive directors is an established
Page 17
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
practice of junior public listed companies and, in the case of the Company, has the benefit of conserving cash whilst
properly rewarding each of the directors.
Remuneration is not linked to past group performance but rather towards generating future shareholder wealth
through share price performance. Amani Gold Ltd listed on 14 December 2006 at 20c per share and the share price
at 30 June 2021 was 0.1 cents (2020: 0.15cents). With the exception of the 2017 year, the Company has recorded a
loss each financial year to date as it carries out exploration activities on its tenements. The profit recorded in the 2017
year was due to the disposal of foreign subsidiaries. No dividends have been paid.
2021
2020
2019
2018
2017
Net Profit/(loss) attributable
to equity holders of the
Company
Dividends paid
Change in share price
Service agreements
($4,188,210)
-
($3,983,939)
-
($32,856,510)
-
($1,562,315)
-
257,624
-
Nil cents
(0.001) cents
(0.005) cents
(0.028) cents
(0.011)cents
Mr Eckhof is not employed under a formal employment or services agreement with Amani Gold Limited. The
arrangement with Mr Eckhof is verbal and provides for a base payment of $240,000 per annum. Both parties may
terminate the arrangement at any time by giving 1 months notice.
Mr Chan is employed under an employment agreement with Amani Gold Limited which provides for base salary
arrangements of HK$125,000 per month until 31 August 2019 and a base salary of HK$150,000 per month starting
from 1 September 2019. In addition, Amani Gold Limited has paid HK$358,000 towards insurance for Mr. Chan
during the current year. The agreement with Mr Chan provides for 3 months notice of intention to resign. Amani may
terminate the agreement by giving 3 months notice. if a change of control event occurs Mr Chan will be entitled to a
termination payment equal to 12 months cash salary in lieu of notice. Mr Chan resigned 27 August 2020.
Mr Thomas is employed under a written employment agreement with Amani Gold Limited which provides for base
salary arrangements as follows: i) $19,500 (plus superannuation) per month for the year ending 31 December 2019;
and ii) $24,000 (plus superannuation) per month from 1 January 2020. The agreement with Mr Thomas provides for
3 months notice of intention to resign. Amani may terminate the agreement by giving 3 months notice. If a change
of control event occurs Mr Thomas will be entitled to a termination payment equal to 12 months cash salary in lieu
of notice. Mr Thomas resigned on 27 August 2020.
Mr. Yu Qiuming is not employed under a formal employment or services agreement with Amani Gold Limited. The
arrangement with Mr. Yu Qiuming is verbal and provides for a base payment of $120,000 per annum. Both parties
may terminate the arrangement at any time by the giving 1 months notice. Mr. Yu Qiuming was removed on 15
October 2020.
Mr. Tsang King Sun is not employed under a formal employment or services agreement with Amani Gold Limited.
The arrangement with Mr. Tsang King Sun is verbal and provides for a base payment of $20,000 per month. On 16
May 2020 Mr Tsang agreed to change his remuneration to $3,000 per month. On 24 June 2020 Mr. Tsang moved to
the role of non-executive director.
Page 18
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Table 2: Director and other Executives Remuneration for the year ended 30 June 2021
Director
K P Eckhof (i)
Chairman
Chan Sik Lap (ii)
Managing Director
G Thomas (iii)
Executive Director
Yu Qiuming (iv)
Executive Director
T Truelove (v)
Non-executive
K S Tsang (vi)
Non-executive
Maohuai Cong (vii)
Non-executive
John Smyth (viii)
Non-executive
Peter Huljich (ix)
Non-executive
Total
Cash
Salary/Fees
$
Non-
Cash
Benefits
$
Termination
Benefits
$
Post
Employment
Superannuatio
n
$
EquityValu
e of
Incentive
securities
$
Total
$
Incentive
securities as a
Percentage of
Remuneratio
n %
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
170,000
110,000
311,962
293,845
264,000
237,000
35,000
157,500
33,000
36,000
36,000
59,833
-
-
3,500
-
3,500
-
-
-
52,226
66,352
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
75,400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28,202
29,364
31,920
22,515
-
-
-
-
-
-
-
-
-
-
-
-
268,963
438,963
199,778
309,778
117,167
509,557
125,778
515,339
72,000
65,333
443,320
324,848
208,167
243,167
195,111
352,611
8,667
8,667
-
-
-
-
-
-
-
-
41,667
44,667
36,000
59,833
-
-
3,500
-
3,500
-
856,962
52,226
75,400
60,122
674,964
1,719,674
894,178
66,352
-
51,879
594,667
1,607,076
61%
64%
23%
24%
16%
20%
86%
55%
21%
19%
-
-
-
-
-
-
-
-
(i) Mr Eckhof was appointed as a director on 30 January 2019. During the current year Mr. Eckhof was issued 1 billion performance rights
valued at $695,333. The value of the performance rights (including the performance rights issued in previous year) is recognised over the
vesting period and the total charge to the profit or loss account for the reporting period was $268,963 for all performance rights(2020:
$199,778).
(ii) Mr Chan was appointed as a director on 11 July 2017 and with effect from 1 September 2017 was appointed in an executive role. From 1
April 2018, Mr Chan has been appointed as Managing Director and CEO. The value of the performance rights (including the performance
rights issued in previous year) is recognised over the vesting period and the charge to the profit or loss account for the reporting period
was $117,167 (2020: $125,778). Mr Chan resigned on 27 August 2020.
(iii) Mr Thomas was appointed as an executive director on 21 December 2018. The value of the performance rights (including the performance
rights issued in previous year) is recognised over the vesting period and the charge to the profit or loss account for the reporting period
was $72,000 (2020: $65,333). Mr Thomas resigned on 27 August 2020.
(iv) Mr. Yu was appointed as a director on 11 July 2017. The value of the performance rights (including the performance rights issued in
previous year) is recognised over the vesting period and the charge to the profit or loss account for the reporting period was $196,666
(2020: $195,111). Mr Yu was removed as a Director on 15 October 2020.
(v) Mr Truelove was appointed as a director on 27 March 2018. The value of the performance rights (including the performance rights issued
in previous year) is recognised over the vesting period and the charge to the profit or loss account for the reporting period was $8,667
(2020: $8,667). Mr Truelove resigned on 27 May 2021.
(vi) Mr Tsang was appointed as an executive director on the 29 January 2020. On 24 June 2020 Mr Tsang moved to the role of non-executive
director.
(vii) Mr Cong was appointed as a non-executive director on the 27 August 2020.
(viii)Mr Smyth was appointed as a non-executive director on the 27 May 2021
(ix) Mr Huljich was appointed as a non-executive director on the 27 May 2021.
Performance Rights Granted as Compensation
Details on performance rights that were granted as compensation to each key management person during the year ended
30 June 2021 and details on performance rights that vested during the year ended 30 June 2021 are as follows:
Page 19
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Performance Rights
Klaus Eckhof:
11/11/2022 Rights
- tranche 1
- tranche 2
- tranche 3
27/05/22 Rights
- tranche 1
- tranche 2
- tranche 3
25/05/24 Rights
- tranche 1
- tranche 2
- tranche 3
Chan Sik Lap:
11/11/2022 Rights
- tranche 1
- tranche 2
- tranche 3
27/05/22 Rights
- tranche 1
- tranche 2
- tranche 3
G Thomas:
11/11/2022 Rights
- tranche 1
- tranche 2
- tranche 3
27/05/22 Rights
- tranche 1
- tranche 2
- tranche 3
Yu Qiuming:
11/11/2022 Rights
- tranche 1
- tranche 2
- tranche 3
27/05/22 Rights
- tranche 1
- tranche 2
- tranche 3
T Truelove:
27/05/22 Rights
- tranche 1
- tranche 2
- tranche 3
Number
granted Grant Date
Fair value per
right at grant
date
Exercise
price
per right Vesting price
Expiry date
Maximum total
value of grant
yet to vest
45,833,333
45,833,333
45,833,334
11/11/2019
11/11/2019
11/11/2019
0.002
0.002
0.002
80,000,000
80,000,000
80,000,000
27/05/19
27/05/19
27/05/19
$0.0018
$0.00173
$0.00167
333,333,333
333,333,333
333,333,334
30/04/2021
30/04/2021
30/04/2021
$0.00073
$0.00072
$0.00064
13,333,333
13,333,333
13,333,334
11/11/2019
11/11/2019
11/11/2019
0.002
0.002
0.002
45,000,000
45,000,000
45,000,000
27/05/19
27/05/19
27/05/19
$0.0018
$0.00173
$0.00167
10,000,000
10,000,000
10,000,000
11/11/2019
11/11/2019
11/11/2019
0.002
0.002
0.002
30,000,000
30,000,000
30,000,000
27/05/19
27/05/19
27/05/19
$0.0018
$0.00173
$0.00167
45,833,333
45,833,333
45,833,334
11/11/2019
11/11/2019
11/11/2019
0.002
0.002
0.002
60,000,000
60,000,000
60,000,000
27/05/19
27/05/19
27/05/19
$0.0018
$0.00173
$0.00167
5,000,000
5,000,000
5,000,000
27/05/19
27/05/19
27/05/19
$0.0018
$0.00173
$0.00167
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$0.0075
$0.01
$0.0125
11/11/2022
11/11/2022
11/11/2022
$71,296
$71,296
$71,296
$0.0075
$0.01
$0.0125
$0.0015
$0.002
$0.003
27/05/22
27/05/22
27/05/22
25/05/24
25/05/24
25/05/24
$92,000
$88,422
$85,356
$243,333
$239,667
$212,333
$0.0075
$0.01
$0.0125
11/11/2022
11/11/2022
11/11/2022
$0.0075
$0.01
$0.0125
27/05/22
27/05/22
27/05/22
$0.0075
$0.01
$0.0125
11/11/2022
11/11/2022
11/11/2022
$0.0075
$0.01
$0.0125
27/05/22
27/05/22
27/05/22
$0.0075
$0.01
$0.0125
11/11/2022
11/11/2022
11/11/2022
$0.0075
$0.01
$0.0125
27/05/22
27/05/22
27/05/22
$20,741
$20,741
$20,741
$51,750
$49,738
$48,013
$15,556
$15,556
$15,556
$34,500
$33,158
$32,008
$71,296
$71,296
$71,296
$69,000
$66,317
$64,017
$0.0075
$0.01
$0.0125
27/05/22
27/05/22
27/05/22
$5,750
$5,526
$5,335
Performance rights will vest subject to meeting specific performance conditions. Tranche 1, 2 and 3 performance rights have
market vesting conditions being a daily volume weighted average share price at the vesting price outlined in the table above over
a minimum of 10 trading days (in the case of the 27/05/22 and 11/11/22 performance rights) and 20 trading days (in the case of
the 31/12/20 and 30/4/2021 performance rights). Market vesting conditions have not been met and the rights have not been
converted into shares.
Each right is converted to one ordinary share upon vesting. The performance rights vest when the vesting conditions are met. No
performance rights will vest if the conditions are not satisfied, hence the minimum value of the performance rights yet to vest is
Page 20
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
nil. The maximum value of the performance rights yet to best has been determined as the amount of the grant date fair value of
the performance rights that is yet to be expensed.
The fair values at grant date of performance rights issued during the year were determined using a Barrier model simulation that
takes into account the exercise price, the term of the rights, the share price at grant date and expected price volatility of the
underlying share, and the risk free interest rate for the term of the rights. The model inputs for performance rights granted in year
included:
Grant date
Expiry date
Share price at grant
Risk free rate
Volatility rate
Performance rights
granted Apr 21
30/04/21
27/05/24
$0.001
0.10%
110%
Shareholdings of Key Management Personnel
The numbers of shares in the Company held during the financial period by Directors and other Key Management
Personnel, including shares held by entities they control, are set out below:
Directors
Klaus Eckhof
Chan Sik Lap
G Thomas
Yu Qiuming
A Truelove
K S Tsang
Maohuai Cong
John Smyth
Peter Huljich
Balance at
1 July 2020
Nil
Nil
400,000
600,000,000
Nil
Nil1
833,880,3681
91,847,7971
10,800,0001
Acquired
Other
Movements
Balance at
30 June 2021
-
-
-
-
10,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
Nil
Nil
400,0002
600,000,0002
10,000,0002
Nil
833,880,368
91,847,797
10,800,000
1Balance represents the shares held at the date of appointment as a director
2Balance represents the shares held at the date of resignation as a director
Options of Key Management Personnel
The numbers of Unlisted and Listed options in the Company held during the financial period by Directors and other
Key Management Personnel, including shares held by entities they control, are set out below:
Directors
Klaus Eckhof
Chan Sik Lap
G Thomas
Yu Qiuming
A Truelove
K S Tsang
Maohuai Cong
John Smyth
Peter Huljich
Balance at
1 July 2020
Acquired
Other
Movements
Balance at
30 June 2021
Nil
Nil
Nil
Nil
Nil
Nil
Nil 1
142,500,000 1
35,000,000 1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Nil
Nil2
Nil2
Nil2
Nil2
Nil
Nil
142,500,000
35,000,000
1Balance represents the options held at the date of appointment as a director
2Balance represents the options held at the date of resignation as a director
Page 21
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
Performance Rights of Key Management Personnel
The numbers of performance rights in the Company held during the financial period by Directors and other Key
Management Personnel, including those held by entities they control, are set out below:
Balance at
1 July 2020
Received as
Remuneration
Exercised /
Vested
Expired
Balance at
30 June 2021
Directors
Klaus Eckhof
Sik Lap Chan
Grant Thomas
Yu Qiuming
A Truelove
K S Tsang
Maohuai Cong
John Smyth
Peter Huljich
377,500,000
1,000,000,000
205,000,000
120,000,000
347,500,000
15,000,000
Nil
Nil1
Nil1
Nil1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,377,500,000
205,000,0002
120,000,0002
347,500,0002
15,000,0002
Nil
Nil
Nil
Nil
1Balance represents the performance rights held at the date of appointment as a director
2Balance represents the performance rights held at the date of resignation as a director
Loans to key management personnel and their related parties
There were no loans outstanding at the reporting date to key management personnel and their related parties.
Use of Remuneration Consultants
The Company did not use any remuneration consultants during the period.
Voting at the group’s 2020 Annual General Meeting
The 2020 Remuneration Report tabled at the 2020 Annual General Meeting received a “yes” vote of 90.09%.
End of Audited Remuneration Report
INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS
The Company’s Constitution requires it to indemnify directors and officers of any entity within the consolidated
entity against liabilities incurred to third parties and against costs and expenses incurred in defending civil or criminal
proceedings, except in certain circumstances. An indemnity is also provided to the Company’s auditors under the
terms of their engagement. Directors and officers of the consolidated entity have been insured against all liabilities
and expenses arising as a result of work performed in their respective capacities, to the extent permitted by law. The
insurance premium, amounting to $18,071 (2020 - $18,191) relates to:
costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and
whatever the outcome;
other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of
duty or improper use of information or position to gain a personal advantage.’
Page 22
Amani Gold Limited
Directors’ Report
For the year ended 30 June 2021
ENVIRONMENTAL REGULATIONS
The consolidated entity’s exploration activities in the Democratic Republic of Congo during the year were subject to
environmental laws, regulations and permit conditions in that jurisdiction. There have been no known breaches of
environmental laws or permit conditions while conducting operations in the Democratic Republic of Congo during
the year.
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which
requires entities to report annual greenhouse gas emissions and energy use. For the measurement period 1 July 2020
to 30 June 2021 the Directors have assessed that there are no current reporting requirements, but may be required to
do so in the future.
NON-AUDIT SERVICES
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the Company and/or consolidated entity is important. During the year ended
30 June 2021 BDO Corporate Finance provided $Nil (2020: 1,750) in non-audit related services. Refer to Note 4 in
the financial statements for further details. The directors are satisfied that the provision of non-audit services by the
auditor did not compromise the auditor independence requirements of the Corporations Act.
AUDITOR’S INDEPENDENCE DECLARATION
The auditor, BDO Audit (SA) Pty Ltd, has provided the Board of Directors with an independence declaration in
accordance with section 307C of the Corporations Act 2001.
The independence declaration is located on the next page.
Signed in accordance with a resolution of Directors.
Klaus Eckhof
Executive Chairman
29th September 2021
Page 23
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
Level 7, BDO Centre
420 King William Street
Adelaide SA 5000
GPO Box 2018, Adelaide SA 5001
AUSTRALIA
DECLARATION OF INDEPENDENCE
BY ANDREW TICKLE
TO THE DIRECTORS OF AMANI GOLD LIMIITED
As lead auditor of Amani Gold Limited for the year ended 30 June 2021, I declare that, to the best of
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Amani Gold Limited and the entities it controlled during the period.
Andrew Tickle
Director
BDO Audit (SA) Pty Ltd
Adelaide, 29 September 2021
BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd
ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO (Australia) Ltd are members of BDO International
Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme
approved under Professional Standards Legislation.
2020
$
28,345
-
28,345
(1,024,550)
(650,559)
(638,037)
(61,563)
(114,332)
(69,388)
109,327
-
(6,664)
(2,427,421)
-
(2,427,421)
(1,556,518)
(3,983,939)
(3,801,519)
(182,420)
(3,983,939)
Amani Gold Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2021
Revenue from continuing operations
2
48,536
Notes
2021
$
Cost of sales
Gross loss
Consultants and corporate costs
Employee benefits expense
Share based payments expense
Depreciation expense
Occupancy expenses
Travel expenses
Foreign exchange gain/(loss)
Impairment of exploration and evaluation assets
Other
Loss before related income tax
Income tax (expense)/benefit
Loss for the year from continuing operations
-
48,536
(706,387)
(822,345)
(719,445)
(32,039)
(112,362)
(2,305)
(137,926)
(1,014,806)
-
(3,499,079)
-
(3,499,079)
3, 14
11
5
Loss for the year from discontinued operations
9(a)
(689,131)
Loss for the year
Net Loss attributable to:
Owners of Amani Gold Limited
Non-controlling interest
Other comprehensive income/(loss)
Exchange differences on translation of foreign
operations
Total comprehensive income for the year
Total comprehensive income attributable to:
Owners of Amani Gold Limited
Non-controlling interest
(4,188,210)
(4,110,159)
(78,051)
(4,188,210)
(1,533,332)
(5,721,542)
658,342
(3,325,597)
(6,405,579)
684,037
(5,721,542)
(3,086,476)
(239,121)
(3,325,597)
Earnings/(Loss) per share from continuing operations attributable to the
members of Amani Gold Limited
Basic and diluted loss per share
Earnings/(Loss) per share from discontinued operations attributable to
the members of Amani Gold Limited
Basic and diluted loss per share
Earnings/(Loss) per share from discontinued operations attributable to
the members of Amani Gold Limited
Basic and diluted loss per share
6
6
6
(0.037) cents
(0.041) cents
(0.007) cents
(0.026) cents
(0.044) cents
(0.067) cents
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
Page 25
Amani Gold Limited
Consolidated Statement of Financial Position
As at 30 June 2021
Current Assets
Cash and cash equivalents
Other receivables
Total Current Assets
Non-Current Assets
Property, plant & equipment
Exploration and evaluation expenditure
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Funds received in advance
Interest-bearing convertible notes
Total Current Liabilities
Non-Current Liabilities
Interest-bearing convertible notes
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed equity
Reserves
Accumulated losses
Capital and reserves attributed to the owners of
Amani Gold Limited
Non-controlling interest
Total Equity
Notes
2021
$
2020
$
8
9
874,608
62,404
1,129,978
417,785
937,012
1,547,763
10
11
30,231
22,611,498
148,217
23,451,883
22,641,729
23,600,100
23,578,741
25,147,863
12
17
18
18
903,105
-
2,100,000
3,003,105
1,692,476
985,884
-
2,678,360
-
-
2,100,000
2,100,000
3,003,105
4,778,360
20,575,636
20,369,503
13
15
80,352,042
76,642,247
12,258,954
(58,770,006)
12,336,495
(54,659,846)
33,840,990
(13,265,354)
34,318,896
(13,949,393)
20,575,636
20,369,503
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
Page 26
Amani Gold Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Contributed
Equity
$
72,101,504
-
Accumulated
Losses
$
(50,858,328)
(3,801,519)
Option Premium
Reserve
$
1,531,794
-
Share based
Reserves
$
5,931,935
-
Balance at 1 July 2019
Loss for the year
Exchange differences on translation of
foreign operations
-
-
-
(3,801,519)
Total comprehensive income for the year
Transactions with equity holders in their
capacity as equity holders
Share issue
Share issue costs
Convertible note issues (net of costs)
Share based payments expense – options
issue
Share based payments expense – rights
Transactions with non-controlling interests
4,797,141
(256,399)
-
-
-
-
-
-
-
-
-
-
-
-
53,899
-
-
-
-
-
-
-
-
-
-
-
638,037
-
Foreign
Currency
Translation
Reserve
$
3,465,788
-
Non-controlling
interest
$
(13,710,272)
(182,420)
Total Equity
$
18,462,421
(3,983,939)
715,042
(56,700)
658,342
715,042
(239,120)
(3,325,597)
-
-
-
-
-
-
-
-
-
-
-
-
4,851,040
(256,399)
-
-
638,037
-
Balance at 30 June 2020
76,642,246
(54,659,847)
1,585,693
6,569,972
4,180,830
(13,949,392)
20,369,503
Page 27
Amani Gold Limited
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Contributed
Equity
Accumulated
Losses
Option Premium
Reserve
Share based
Reserves
Foreign
Currency
Translation
Reserve
Non-controlling
interest
Total Equity
$
$
$
$
$
$
$
76,642,246
-
(54,659,847)
(4,110,159)
1,585,693
-
6,569,972
-
4,180,830
-
(13,949,392)
(78,051)
20,369,503
(4,188,210)
-
-
-
(4,110,159)
-
-
-
-
(2,295,421)
(2,295,421)
762,089
684,038
(1,533,332)
(5,721,542)
5,552,500
(1,842,704)
-
-
-
-
80,352,042
-
-
-
-
-
-
(58,770,006)
-
1,498,435
-
-
-
-
3,084,128
-
-
-
-
719,445
-
7,289,417
-
-
-
-
-
-
1,885,409
-
-
-
-
-
-
(13,265,354)
5,552,500
(344,269)
-
-
719,445
-
20,575,636
Balance at 1 July 2020
Loss for the year
Exchange differences on translation of
foreign operations
Total comprehensive income for the year
Transactions with equity holders in their
capacity as equity holders
Share issue
Share issue costs
Convertible note issues (net of costs)
Share based payments expense – options
issue
Share based payments expense – rights
Transactions with non-controlling interests
Balance at 30 June 2021
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Page 28
Amani Gold Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2021
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Notes
2021
$
2020
$
67,264
(2,776,046)
137
795,876
(2,122,434)
815
Net Cash outflows from Operating Activities
21
(2,708,645)
(1,325,743)
Cash Flows from Investing Activities
Payments for plant and equipment
Payments for exploration and development expenditure
Net Cash outflows from Investing Activities
Cash Flows from Financing Activities
Proceeds from securities issues
Securities issue expenses
Proceeds from issue of convertible notes
Net Cash inflows from Financing Activities
Net increase / (decrease) in Cash and Cash Equivalents
Cash and cash equivalents at the beginning of the year
Effects of exchange rate fluctuations on the balances of cash
held in foreign currencies
Cash and Cash Equivalents at End of Year
(27,610)
(1,829,613)
(87,383)
(7,636,362)
(1,857,223)
(7,723,745)
18
4,566,616
(248,270)
-
4,797,141
(256,399)
2,100,000
4,318,346
6,640,742
(247,522)
1,129,978
(2,408,746)
3,521,896
(7,848)
16,828
8
874,608
1,129,978
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Page 29
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Board, and the Corporations Act 2001.
The financial statements are for the consolidated entity consisting of Amani Gold Limited and its subsidiaries (the
“group” or the “consolidated entity”). Amani Gold Limited is a listed for-profit public company, incorporated and
domiciled in Australia. During the year ended 30 June 2021, the consolidated entity conducted operations in
Australia, and the Democratic Republic of Congo. The financial statements have also been prepared on a historical
cost basis. Cost is based on the fair values of the consideration given in exchange for assets.
The financial report is presented in Australian dollars.
Going Concern Basis
The financial report has been prepared on the basis of accounting principles applicable to a “going concern” which
assumes the Group will continue in operation for the foreseeable future and will be able to realise its assets and
discharge its liabilities in the normal course of operations.
The Group has operating cash inflows, including gold trading sales and interest income, and has incurred net cash
outflows from operating and investing activities for the year ended 30 June 2021 of $4,565,868 (2020: $9,049,488).
At 30 June 2021, the Group had cash balances of $874,608 (2020: $1,129,978).
The directors have prepared cash flow projections that support the ability of the Group to continue as a going concern.
These cash flow projections assume the Group obtains sufficient additional funding from shareholders or other
parties. If such funding is not achieved, the Group plans to reduce expenditure significantly, which may result in an
impairment loss on the book value of exploration and evaluation expenditure recorded at reporting date.
These conditions give rise to a material uncertainty that may cast doubt upon the Group’s ability to continue as a
going concern. The ongoing operation of the Group is dependent upon:
The Group raising additional funding from shareholders or other parties; and/or
The Group reducing expenditure in line with available funding.
The Group has the ability to seek to raise funds from shareholders or other investors and intends to raise such funds
as and when required to complete its projects. Subsequent to year end, the Group announced that it had received
commitments for a two tranche placement to sophisticated and professional investors to raise to $7 million to fund
ongoing exploration activities at the Giro gold projects in the DRC and meet ongoing working capital requirements.
In the longer term, the development of economically recoverable mineral deposits found on the Group’s existing or
future exploration properties depends on the ability of the Group to obtain financing through equity financing, debt
financing or other means. If the Group’s exploration programs are ultimately successful, additional funds will be
required to develop the Group’s properties and to place them into commercial production. The ability of the Group
to arrange such funding in the future will depend in part upon the prevailing capital market conditions as well as the
business performance of the Group. There can be no assurance that the Group will be successful in its efforts to
arrange additional financing, if needed, on terms satisfactory to the Group. If adequate financing is not available, the
Group may be required to delay, reduce the scope of, or eliminate its current or future exploration activities or
relinquish rights to certain of its interests. Failure to obtain additional financing on a timely basis could cause the
Group to forfeit its interests in some or all of its properties and reduce or terminate its operations.
Should the Group not be able to continue as a going concern, it may be required to realise its assets and discharge its
liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial
statements and that the financial report does not include any adjustments relating to the recoverability and
classification of recorded asset amounts or liabilities that might be necessary should the group not continue as a going
concern.
Page 30
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Adoption of New and Revised Standards and change in Accounting Standards
Early adoption of accounting standards
The Group has not elected to apply any pronouncements before their operative date in the annual reporting year
beginning 1 July 2020.
New and amended standards adopted by the Group
A number of new or amended standards became applicable for the current reporting period and the consolidated
entity has changed its accounting policies as a result of the adoption of the following standards. All new standards
were adopted and did not have any significant impact to the financial performance or position of the consolidated
entity.
New and amended standards not yet adopted by the Group
At the date of authorisation of the financial report, a number of Standards and Interpretations including those
Standards and Interpretations issued by the IASB/IFRIC, where an Australian equivalent has not been made by the
AASB, were in issue but not yet effective for which the Entity has considered it unlikely for there to be a material
impact on the financial statements.
Gold Trading
Amani secured Gold Dealer Licence in Tanzania in November 2019 via a 60% equity interest in Amago Trading
Limited. The Gold Dealer Licence No. DL013/GTA/2019-2020 was granted to Amago by Ministry of Minerals
Mining Commission, The United Republic of Tanzania.
Amago Trading Limited sources gold from local artisanal miners from the Geita region of Tanzania. The gold is
smelted at the Amago office and the local miners are paid at an agreed price. The gold is transported to a Hong Kong
smelter by a security firm. Amago receives payment for the smelted gold from the Hong Kong gold refinery the
same day as is processed. Amago pays the Hong Kong smelter a processing fee of $8 US per ounce of smelted gold.
Revenue is recognized when control of the goods and services have passed to the gold refinery and costs incurred or
to be incurred in respect of the transaction can be measured reliably. Control is considered passed to the gold refinery
at the time of “delivery of goods to the customer”, hence revenue is recognized at a point in time.
Statement of Compliance
These financial statements were authorised for issue on 29 September 2021.
The consolidated financial statements comprising the financial statements and notes thereto, comply with
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board
(IASB).
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Amani Gold Limited (the “Company”)
and subsidiaries. Subsidiaries are all entities over which the group has control. The group controls an entity when the
group is exposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect
those returns through its power to direct the activities of the entity.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profit or losses resulting from intra-group transactions have been eliminated in full. Subsidiaries are fully
Page 31
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
consolidated from the date on which control is transferred to the consolidated entity and cease to be consolidated
from the date on which control is transferred out of the consolidated entity.
Parent Entity Financial Information
The financial information for the parent entity, Amani Gold Limited, disclosed in Note 23 has been prepared on the
same basis as the consolidated financial statements.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term highly liquid
investments readily convertible to cash.
Foreign currency transactions and balances
The functional and presentation currency of Amani Gold Limited is Australian dollars.
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate
of exchange ruling at the end of the reporting period.
Foreign currency transactions are translated into the functional currency using the exchange rates ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of
exchange ruling at the end of the reporting period. Foreign exchange gains and losses resulting from settling foreign
currency transactions, as well as from restating foreign currency denominated monetary assets and liabilities, are
recognised in profit or loss, except when they are deferred in other comprehensive income as qualifying cash flow
hedges or where they relate to differences on foreign currency borrowings that provide a hedge against a net
investment in a foreign entity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date
the fair value was determined.
The functional currencies of the overseas subsidiaries are as follows:
Democratic Republic of Congo, Hong Kong, Tanzania and Kenya subsidiaries United States Dollars (USD).
At the end of the reporting period, the assets and liabilities of these overseas subsidiaries are translated into the
presentation currency of Amani Gold Limited at the closing rate at the end of the reporting period and income and
expenses are translated at the weighted average exchange rates for the year. All resulting exchange differences are
recognised in other comprehensive income as a separate component of equity (foreign currency translation reserve).
On disposal of a foreign entity, the cumulative exchange differences recognised in foreign currency translation
reserves relating to that particular foreign operation is recognised in profit or loss.
Taxes
Income tax
Deferred income tax is provided for on all temporary differences at reporting date between the tax base of assets and
liabilities and their carrying amounts for financial reporting purposes.
Page 32
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
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 that are expected to apply to the period when the asset is realised or liability
is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income 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 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 Group will derive sufficient
future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed
by the law. The carrying amount of deferred tax assets is reviewed at each reporting date and only recognised to the
extent that sufficient future assessable income is expected to be obtained.
At the reporting date, the Directors have not made a decision to elect to be taxed as a single entity. In accordance
with Australian Accounting Interpretations, “Substantive Enactment of Major Tax Bills in Australia”, the financial
effect of the legislation has therefore not been brought to account in the financial statements for the year ended 30
June 2021, except to the extent that the adoption of the tax consolidation would impair the carrying value of any
deferred tax assets.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the
same taxation authority.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost
of acquisition of the asset or as part of an item of the expense.
Receivables and payables on the statement of financial position 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.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation
authority.
Property, plant and equipment
Items of plant and equipment are carried at cost less accumulated depreciation and impairment losses (see accounting
policy “impairment testing”).
Plant and equipment
Plant and equipment acquired is initially recorded at their cost of acquisition at the date of acquisition, being the fair
value of the consideration provided plus incidental costs directly attributable to the acquisition.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the consolidated entity and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or
loss and other comprehensive income during the financial period in which they are incurred.
Page 33
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Depreciation
All assets have limited useful lives and are depreciated using the straight line method over their estimated useful lives
commencing from the time the asset is held ready for use.
Depreciation and amortisation rates and methods are reviewed annually for appropriateness. When changes are
made, adjustments are reflected prospectively in current and future periods only. The estimated useful lives used in
the calculation of depreciation for plant and equipment for the current and corresponding period are between three
and ten years.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the statement of profit or loss and other comprehensive income.
Mineral interest acquisition, exploration and development expenditure
Mineral interest acquisition, exploration and evaluation expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that the Group’s rights of tenure to that
area of interest are current and either the costs are expected to be recouped through the successful development and
commercial exploitation of the area of interest or where exploration activities in the area of interest have not yet
reached a stage that permits reasonable assessment of the existence of economically recoverable reserves and active
and significant operations, in, or in relation to, the area of interest are continuing.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which
the decision to abandon the area is made.
Impairment testing
The carrying amount of the consolidated entity’s assets, other than deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. Where such an indication exists, a formal assessment
of recoverable amount is then made and where this is in excess of carrying amount, the asset is written down to its
recoverable amount.
Recoverable amount is the greater of fair value less costs to sell and value in use. Value in use is the present value of
the future cash flows expected to be derived from the asset or cash generating unit. In estimating value in use, a pre-
tax discount rate is used which reflects current market assessments of the time value of money and the risks specific
to the asset. Any resulting impairment loss is recognised immediately in the statement of profit or loss and other
comprehensive income.
Impairment losses are reversed when there is an indication that the impairment loss may no longer exist and there
has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the assets’ carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognised.
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services
provided to the consolidated entity prior to the end of the financial year that are unpaid and arise when the
consolidated entity becomes obliged to make future payments in respect of the purchase of these goods and services.
Page 34
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Employee benefits
Wages, salaries and annual leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12
months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting
date. They are measured at the amounts expected to be paid when the liabilities are settled.
Contributions are made by the consolidated entity to superannuation funds as stipulated by statutory requirements
and are charged as expenses when incurred.
Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the present
value of expected future payments to be made in respect of services provided by employees up to the reporting date
using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience
of employee departures and periods of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currency that match, as closely as possible,
the estimated future cash outflows.
Contributed equity
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.
Convertible Notes
Compound financial instruments issued by the Group comprise convertible notes that can be converted to ordinary
shares at the option of the holder, when the number of shares to be issued is fixed. The liability component of a
compound financial instrument is recognised initially at the fair value of a similar liability that does not have an
equity conversion option. The equity component is recognised initially at the difference between the fair value of the
compound financial instrument as a whole and the fair value of the liability component. Any directly attributable
transaction costs are allocated to the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at
amortised cost using the effective interest method. The equity component of a compound financial instrument is not
remeasured subsequent to initial recognition. Interest related to the financial liability is recognised in the statement
of profit or loss and other comprehensive income. On conversion the financial liability is reclassified to equity and
no gain or loss is recognised.
Earnings per share
Basic earnings per share is determined by dividing the net result attributable to members, adjusted to exclude costs
of servicing equity (other than dividends), by the weighted average number of ordinary shares, adjusted for any bonus
element.
Diluted earnings per share is determined by dividing the net result attributable to members, adjusted to exclude costs
of servicing equity (other than dividends) and any expenses associated with dividends and interest of dilutive potential
ordinary shares, by the weighted average number of ordinary shares (both issued and potentially dilutive) adjusted
for any bonus element.
Page 35
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Share based payments
The Group provides compensation benefits to employees (including directors) of the Group in the form of share-
based payment transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-
settled transactions’).
The cost of these equity-settled transactions with employees is measured by reference to the fair value at the date at
which they are granted. The fair value is determined by a Black Scholes model or similar such market based valuation
models.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period
in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully
entitled to the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects
(i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the directors
of the Group, will ultimately vest. This opinion is formed based on the best available information at reporting date.
No adjustment is made for the likelihood of market performance conditions being met as the effect of these conditions
is included in the determination of fair value at grant date.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon
a market condition.
Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had
not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result
of the modification, as measured at the date of modification.
Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense
not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled
award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated
as if they were a modification of the original award, as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings per share.
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief decision maker has been identified as the Board of Directors.
Page 36
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
Critical accounting estimates
The preparation of financial statements in conformity with AIFRS 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 that may have a significant risk of causing a material adjustment to the carrying amounts of certain
assets and liabilities within the next annual reporting period are:
(a) Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or
may have, on the company based on known information. This consideration extends to the nature of the products and
services offered, customers, supply chain, staffing and geographic regions in which the company operates. Other than
as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial
statements or any significant uncertainties with respect to events or conditions which may impact the company
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
(b) Exploration and evaluation expenditure
In accordance with accounting policy note described above under “Mineral interest acquisition, exploration and
development expenditure” the Board determines when an area of interest should be abandoned. When a decision is
made that an area of interest is not commercially viable, all costs that have been capitalised in respect of that area of
interest are written off. In determining this, assumptions, including the maintenance of title, ongoing expenditure and
prospectivity are made.
As described in Note 19, under existing contractual terms of a shareholder agreement a feasibility study was required
to be completed by 31st December 2018 at the Giro Gold Project. Based on the amendment to the shareholder
agreement, concluded in December 2017, with Societe Miniere De Kilo Moto SA (“Sokimo”), a company wholly
owned by the DRC Government (the original holder of the Giro exploitation permits), an agreement was reached
between the parties that the deadline for completion of the feasibility study would be extended up to 31st December
2018. A draft feasibility study is with JV partner SOKIMO and Ministry of Mines for review and a further extension
to complete the feasibility study by end 2020 has been agreed with SOKIMO.
Amani has requested a quote from Beijing General Institute of Mining and Metallurgy (BGRIMM) to update the
Giro Feasibility Study given that the Giro global resource estimates have substantially increased since the initial
Feasibility Study which was based on Kebigada resource estimate of 75Mt @ 1.18g/t Au, for 2.9Moz gold (0.6g/t
Au cut-off grade, see ASX Announcement 27 August 2017). New combined Indicated and Inferred Mineral Resource
Estimate for Kebigada and Douze Match deposits is 132Mt @ 1.04g/t Au, for 4.4Moz contained gold (0.5g/t Au cut-
off grade, see ASX Announcement 19 March 2020).
Page 37
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
At the date of this report, feasibility study discussion have not formally concluded with Sokimo and no decision to
mine has been made.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the
exploration and evaluation asset is estimated to determine the extent of the impairment loss (if any). Significant
judgment is involved in determining the recoverable amount for an exploration and evaluation, refer to note 11 for
details.
(c) Share Based Payments to employees
The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value
of the equity instruments at the date at which they are granted. The fair value of options with non-market conditions
is determined by an internal valuation using a Black-Scholes option pricing model taking into account the terms and
conditions upon which the instruments were granted. The fair value of performance rights with market conditions is
determined by an internal valuation using a Trinomial Barrier option pricing model.
(d) Control Over Subsidiaries
In determining whether the consolidated group has control over subsidiaries that are not wholly owned, judgement
is applied to assess the ability of the consolidated group to control the day to day activities of the partly owned
subsidiary and its economic outcomes. In exercising this judgement, the commercial and legal relationships that the
consolidated group has with other owners of partly owned subsidiaries are taken into consideration. Whilst the
consolidated group is not able to control all activities of a partly owned subsidiary, the partly owned subsidiary is
consolidated within the consolidated group where it is determined that the consolidated group controls the day to day
activities and economic outcomes of a partly owned subsidiary. Changes in agreements with other owners of partly
owned subsidiaries could result in a loss of control and subsequently de-consolidation.
During the year ended 30 June 2015, Amani Gold Limited acquired 85% of the issued shares of Amani Consulting
sarl (Amani Consulting) by the issue of shares, options and cash. Amani Consulting holds a 65% shareholding in
Giro Goldfields sarl (Giro). Giro explores the Giro gold project in the Haut-Uele Province, northeast DRC. Under
the terms of shareholders agreements the Company is at this stage solely responsible for funding exploration activities
and therefore has control over the day to day activities and economic outcomes of Amani Consulting and Giro. Future
changes to the shareholders agreements may impact on the ability of the Company to control Amani Consulting and
Giro.
(e) Contingent liabilities
Under the terms of the agreement to acquire an interest in Amani Consulting sarl (Amani Consulting) the Company
may be liable in the future to make additional payments subject to certain events occurring as described in Note 19.
After an assessment of the conditions that would require these payments to be made in the future, the Company has
judged that these possible future payments are a contingent liability.
Change in circumstances or the future occurrence of specified events may cause liabilities that are currently assessed
as being contingent to be reclassified as financial liabilities.
Page 38
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued
(f) Tax in foreign jurisdictions
The consolidated entity operates in overseas jurisdictions and accordingly is required to comply with the taxation
requirements of those relevant countries. This results in the consolidated entity making estimates in relation to taxes
including but not limited to income tax, goods and services tax, withholding tax and employee income tax. The
consolidated entity estimates its tax liabilities based on the consolidated entity’s understanding of the tax law. Where
the final outcome of these matters is different from the amounts that were initially recorded, such differences will
impact profit or loss in the period in which they are settled.
2. REVENUE
Other revenue includes the following:
Interest - other parties
Other
Consolidated
2021
$
2020
$
137
48,399
48,536
412
27,933
28,345
(a) During the previous year Amani secured a Gold Dealer Licence in Tanzania via a 60% equity interest in Amago
Trading Ltd. The Gold Dealer Licence permits Amago to buy, sell or deal in gold to produce a revenue stream
for Amani.
3. EXPENSES
During the year share based payments expense of $719,445 (2020: $638,037) were recorded as an
expense with a further $1,498,435 (2020: $256,399) recorded in equity as share issue costs related to
a capital raising. $52,500 (2020: $23,013) was recorded as interest expenses on Converitible Notes
issued during the year.
4. AUDITOR’S REMUNERATION
Audit services:
- Amounts paid or payable to auditors of the Group – BDO
Audit (WA) Pty Ltd
Amounts paid or payable to auditors of the Group – BDO
Audit (SA) Pty Ltd
-
62,247
51,656
-
In addition, during the year BDO Corporate Finance provided $Nil (2020: $2,500) in non-audit
related services.
Page 39
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
5.
INCOME TAX EXPENSE
(a) The prima facie tax benefit at 26% (2020: 27.5%) on
loss for the year is reconciled to the income tax
provided in the financial statements as follows:
Profit / (loss) before income tax
Prima facie income tax expense / (benefit) @ 26%
Tax effect of permanent differences:
Capital raising costs
Legal fees
Changes in tax rates
Prior period adjustment
Exploration expenses
Impairment
Employee option expense / share based payments
Income tax benefit not brought to account
Income tax expense
(b) The following deferred tax balances have not been
recognised:
Deferred Tax Assets at 26% (2020: 27.5%):
- Carry forward revenue losses
- Capital raising costs
- Provisions and accruals
Consolidated
2021
$
2020
$
(4,188,935)
(3,983,939)
(1,088,935)
(1,095,583)
(89,510)
-
828,912
(20,589)
(511,182)
262,248
187,056
(432,000)
432,000
-
(124,914)
25,281
-
-
(2,093,848)
-
(175,460)
(3,3464,524)
3,464,524
-
15,437,567
139,104
31,463
15,011,426
182,584
(17,875)
15,608,134
15,176,135
The tax benefits of the above deferred tax assets will only be obtained if:
the Group derives future assessable income of a nature and of an amount sufficient to enable the benefits to be
utilised;
the Group continues to comply with the conditions for deductibility imposed by law; and
no changes in income tax legislation adversely affect the Group in utilising benefits.
Deferred tax liabilities in relation to capitalised exploration costs have been recognised and offset against deferred
tax assets above.
Consolidated
2021
Cents
2020
Cents
6. EARNINGS PER SHARE
Basic and diluted loss per share- Continuing Operations
(0.036)
(0.041)
Basic and diluted loss per share – Discontinued Operations
(0.007)
(0.026)
Weighted average number of ordinary shares used in the
calculation of basic and diluted loss per share
2021
Number
2020
Number
9,563,414,829 5,963,164,059
The Company’s potential ordinary shares, being its options and performance rights granted, are not considered dilutive
as the conversion of these options would result in a decrease in the net profit per share.
Page 40
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
7. SEGMENT INFORMATION
The Directors have determined that the Group has two reportable segments, being mineral exploration and
gold trading in Africa. As the Group is focused on mineral exploration and gold trading. The Board monitors
the Group based on actual versus budgeted exploration expenditure incurred by area of interest for
exploration activities. The Board monitors the Group based on actual versus budgeted gold sales incurred by
area of interest (Tanzania).
This internal reporting framework is the most relevant to assist the Board with making decisions regarding the
Group and its ongoing exploration activities, while also taking into consideration the results of exploration
work that has been performed to date.
Revenue from
external sources
$
Reportable
segment loss
$
Reportable segment
assets
$
Reportable segment
liabilities
$
For the year end 30 June 2021
Gold Trading
Investment in Gold Trading
Mineral Exploration
Exploration Activity
Total
Gold Trading
Investment in Gold Trading
Mineral Exploration
Exploration Activity
Total
-
(99,854)
-
-
-
-
(4,088,356)
(4,188,210)
23,629,174
23,629,174
(3.003,105)
(3,003,105)
For the year end 30 June 2020
795,876
(427,859)
154,658
(490,097)
-
795,876
(3,556,080)
(3,983,939)
24,993,205
25,147,863
(4,288,734)
(4,768,831)
8. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Consolidated
2021
$
2020
$
874,608
1,129,978
- Cash at bank earns interest at floating rates based on daily bank deposit rates. Refer Note 16.
9. OTHER RECEIVABLES
Current
Other receivables
Asset held for Sale – Refer (a)
Consolidated
2021
$
2020
$
33,028
29,376
62,404
417,785
-
417,785
None of the reported receivables are past due or require impairment.
Refer to Notes 16(a) and 16(b) for information about the Group’s exposure to credit and liquidity risk.
Page 41
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
9(a) – Discontinued Operations
During the year, the Group entered into an exclusive, binding conditional term sheet for the sale of shares in of
Amani Minerals HK for consideration of $60,000 USD.
As a result, the Group has classified the Amani Minerals HK and its’ subsidiaries as a discontinued operation in the
30 June 2021 annual report. Total Net asset of Amani Minerals Hong Kong was $29,376 which is the lower of the
carrying value less cost to sell. Losses for discontinued operations amount to $689,131(2020: $1,556,518).
10. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment
At cost
Less accumulated depreciation
Reconciliation
Movement in the carrying amounts for each class of property,
plant and equipment between the beginning and the end of the
current financial period.
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Foreign currency translation difference movement
Carrying amount at the end of the year
11. EXPLORATION AND EVALUATION
EXPENDITURE
Exploration and evaluation phase – at cost
Balance at the beginning of the year
Expenditure incurred during the year
Impairment
Foreign currency translation difference movement
Carrying amount at the end of the year
Consolidated
2021
$
2020
$
536,635
(506,404)
30,231
621,962
(473,745)
148,217
148,217
27,610
(50,315)
(89,081)
(6,199)
30,231
257,093
87,384
(8,926)
(190,256)
2,922
148,217
Consolidated
2021
$
2020
$
(a)
(b)
23,451,883
1,966,085
15,248,690
7,613,992
(1,014,806)
(1,791,664)
-
589,201
22,611,498
23,451,883
The expenditure above relates principally to the exploration and evaluation phase. The ultimate recoupment of this
expenditure is dependent upon the successful development and commercial exploitation, or alternatively, sale of the
respective areas of interest.
(a) During the previous year, Amani Group has issued 699,047,035 shares to Shining Mining Limited at an issue price
of $0.003 per Share to raise up to $2,097,141. The raised amount was applied to set off an outstanding amount due
the Company’s joint venture partner Société Minière de Kilo-Moto SA (SOKIMO).
On the formation of the Giro Gold Project Joint Venture in 2012 and as part of the agreed terms of the agreement
with SOKIMO, the Company was required to make a USD 5.0 million payment. The Company has an outstanding
amount of USD$ 897,606 recorded as a contingent liability as detailed in note 19 given a final feasibility study and
decision to mine has yet to be made.
Page 42
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
11. EXPLORATION AND EVALUTION EXPENDITURE – continued
The sole director of Shining Mining provided a personal loan to SOKIMO of approximately USD 1.45 million in
2018 under an arrangement that has no association with the Company and its activities in the DRC. The director of
Shining Mining made a confidential approach to the Company in July 2019 to propose an arrangement whereby the
amount he lent to SOKIMO is settled by the issue of the Company’s shares to Shining Mining at an issue price of
$0.003 per share and that the amount of $2,097,141 would be offset against the above mentioned contingent liability.
The shares were issued to Shining Mining on 20 April 2020 and the amount of $2,097,141 was to settle a liability to
Simon Cong, the sole shareholder of Shining Mining. It has been recognized as exploration and evaluation
expenditure during the previous financial year as this relates to the tenement for the appropriate Giro project.
Amani Group has also recognized the settlement US$850,000 outstanding goodwill to SOKIMO in cash during the
previous financial year.
(b) During the previous year, Amani Group conducted diamond core drilling operations (drillholes GRDD034 and
GRDD035) at Kebigada Gold deposit, Giro Gold Project. Drilling targeted deeper high-grade sulphide associated
gold mineralisation within the central core of Kebigada deposit. Drillholes GRDD034 and GRDD035 both
successfully targeted deeper high-grade sulphide associated gold mineralisation within the central core of Kebigada
deposit and these assays are the deepest yet at Kebigada. Reverse circulation drilling was also completed at Peteku
prospect, Giro Gold Project targeted near surface gold mineralisation below a regional gold in soil anomaly. These
activities, at a cost of approximately 625,092 (direct drilling charges and assay costs) during the previous reporting
period, are included in the above expenditure incurred during the previous period.
The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases are
dependent on the successful development and commercial exploitation or sale of the respective areas.
Impairment
For the consolidated entity has written off an exploration and evaluation asset of $1,008,647 relating the
capitalised expenditure of Gada project. On 23 December 2020, Amani announced that further detailed due
diligence including technical and legal aspects, along with recent field inspects of tenement areas by field
geologist, the Company has decided not to pursue the Gada Project.
12. TRADE AND OTHER PAYABLES
Current
Trade and other payables
Consolidated
2021
$
2020
$
903,105
903,105
1,692,476
1,692,476
Terms and conditions relating to the above financial instruments:
- Trade and other creditors are non-interest bearing and are normally settled on 30 day terms.
Risk exposure:
-
Information about the group’s risk exposure to foreign exchange risk is provided in Note 16.
Page 43
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
13. CONTRIBUTED EQUITY
(a) Issued and paid-up share capital
CONSOLIDATED
2021
$
2020
$
Ordinary shares, fully paid 12,386,996,747 (2020: 6,834,496,747)
80,352,042
76,642,247
Movements in Ordinary Shares:
Details
Balance at 1 July 2019
August 2019 placement at $0.003 per share
January 2020 placement at $0.00225 per share
April 2020 placement at $0.003 per share
Less: Share issue costs
Balance at 30 June 2020
Balance at 1 July 2020
July 2020 placement at $0.001 per share
Nov 2020 placement at $0.001 per share
Feb 2021 placement at $0.001 per share
Feb 2021 placement at $0.001 per share
Less: Share issue costs
Balance at 30 June 2021
(b) Listed Share Options
Number of
Shares
$
5,213,227,494
72,101,504
833,333,330
2,500,000
88,888,888
200,000
699,047,035
2,097,141
-
(256,399)
6,834,496,747
76,642,246
6,834,496,747
76,642,246
1,003,700,000
1,003,700
1,548,800,000
1,548,800
1,400,000,000
1,400,000
1,600,000,000
1,600,000
-
(1,842,704)
12,386,996,747
80,352,042
Exercise Period
Note
Exercise
Price
Opening
Balance
1 July
2020
Issued
2020/21
Exercised/
Cancelled/
Expired
2020/21
Closing
Balance
30 June 2021
15 Jan 2021 – 15 Jan 2024
(i)
$0.0015
15 Jan 2021 – 15 Jan 2024
$0.0015
Number
Number
Number
Number
-
-
-
1,500,000,000
6,828,747,997
8,328,747,997
-
-
-
1,500,000,000
6,828,747,997
8,328,749,997
(i) 1.5 billion listed options were issued to a corporate advisor as part of the cost for a placement. With each option having
an exercise price of $0.0015 and expiry date three years from date of issue. The fair value of the Listed Options
estimated was $1,498,435. None of the Listed Options vested during the reporting period. An amount of $1,498,435
was recognized as share issue costs within contributed equity in the current period.
Page 44
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
13.
CONTRIBUTED EQUITY - continued
The fair value per Listed Options and the following inputs were used in the valuation model:
Listed Options
Grant Date
Expiry Date
Underlying security price at issue ($)
Exercise Price
Expected Volatility
Risk-free rate
Life of Options
Fair Value per Listed Options ($)
15-Oct-20201
15-Jan-2024
$0.0010
$0.0015
385%
0.25%
3 years
$0.0010
1For accounting purposes the grant date is considered the date of the general meeting where the issue of options was approved. The
options were actually issued on 15 January 2021.
(c) Unlisted Options
2021 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Note
Exercise
Price
Opening
Balance
1 July 2020
Options
Issued
2020/21
Exercised/
Cancelled/
Expired
2020/21
Closing
Balance
30 June 2021
Number
Number
Number
Number
15 Apr 2016 – 31 Dec 2020
15 Apr 2016 – 31 Dec 2020
15 Apr 2016 – 31 Dec 2020
27 May 2019 – 27 May 2022
27 May 2019 – 27 May 2022
27 May 2019 – 27 May 2022
15 Jan 2020 – 15 Jan 2023
15 Jan 2020 – 15 Jan 2023
15 Jan 2020 – 15 Jan 2023
(i)
(i)
(i)
(iii)
(iii)
(iii)
(iv)
(iv)
(iv)
0.03
0.04
0.05
7,500,000
7,500,000
7,500,000
0.0075
40,000,000
0.01
0.0125
0.0075
0.01
40,000,000
40,000,000
12,000,000
12,000,000
0.0125
12,000,000
-
-
-
-
-
-
-
-
-
(7,500,000)
(7,500,000)
(7,500,000)
-
-
-
-
-
-
-
-
-
40,000,000
40,000,000
40,000,000
12,000,000
12,000,000
12,000,000
Weighted average exercise price ($)
0.0138
-
0.04
0.0100
178,500,000
- (22,500,000) 156,000,000
Page 45
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
13.
CONTRIBUTED EQUITY - continued
2020 - Options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise
Period
Note
Exercise
Price
Opening
Balance
1 July 2019
Options
Issued
2019/20
Exercised/
Cancelled/
Expired
2019/20
Closing
Balance
30 June 2020
Number
Number
Number
Number
15 Apr 2016 – 31 Dec 2020
15 Apr 2016 – 31 Dec 2020
15 Apr 2016 – 31 Dec 2020
2 Nov 2016 - 2 Nov 2019
2 Nov 2016 - 2 Nov 2019
27 May 2019 – 27 May 2022
27 May 2019 – 27 May 2022
27 May 2019 – 27 May 2022
15 Jan 2020 – 15 Jan 2023
15 Jan 2020 – 15 Jan 2023
15 Jan 2020 – 15 Jan 2023
(i)
(i)
(i)
(ii)
(ii)
(iii)
(iii)
(iii)
(iv)
(iv)
(iv)
0.03
0.04
0.05
0.08
0.1
7,500,000
7,500,000
7,500,000
9,500,000
9,500,000
0.0075
40,000,000
40,000,000
40,000,000
0.01
0.0125
0.0075
0.01
0.0125
-
-
-
12,000,000
12,000,000
12,000,000
-
-
-
-
-
-
-
-
-
-
-
7,500,000
7,500,000
7,500,000
(9,500,000)
(9,500,000)
-
-
-
-
-
-
-
-
40,000,000
40,000,000
40,000,000
12,000,000
12,000,000
12,000,000
Weighted average exercise price ($)
0.0236
0.01
0.09
0.0138
161,500,000
36,000,000 (19,000,000) 178,500,000
(i) In the 2016 year, 22.5 million options were issued to a corporate advisor for equity market and strategic advice in market
positioning and corporate strategy. These expired during the year.
(ii) In the 2017 year, 19 million options were issued under the Employee Option Plan for nil consideration as part of the
remuneration package of employees of the Company. Refer to Note 14 for further details.
(iii) In the 2019 year, 120 million options were issued to a corporate advisor for equity market and strategic advice in market
positioning and corporate strategy.
(iv) In the 2020 year, 36 million options were issued to a corporate advisor for financial advisory services.
The weighted average contractual life of the unlisted options are 1.07 (2020: 1.50) years.
None of the options have any voting rights, any entitlement to dividends or any entitlement to the proceeds of liquidation in the
event of a winding up.
(d) Performance Rights
2021 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Expiry date
31 December 2020
27 May 2022
31 December 2021
31 December 2022
25 February 2024
Note
(i)
(ii)
(iii)
(iv)
(v)
Opening
Balance
1 July 2020
Issued
2020/21
Exercised/
Cancelled
2020/21
Closing
Balance
30 June 2021
Number
Number
Number
Number
60,000,000
687,000,000
30,000,000
349,999,998
-
-
-
-
-
1,000,000,000
(60,000,000)
-
-
-
-
-
687,000,000
30,000,000
349,999,998
1,000,000,000
1,126,999,998 1,000,000,000 (60,000,000)
2,066,999,998
Page 46
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
13.
CONTRIBUTED EQUITY - continued
2020 - Performance Rights over ordinary shares in the capital of the Company have been granted as follows:
Expiry date
31 December 2020
27 May 2022
31 December 2021
31 December 2022
Note
(i)
(ii)
(iii)
(iv)
Opening
Balance
1 July 2019
Issued
2019/20
Exercised/
Cancelled
2019/20
Closing
Balance
30 June 2020
Number
Number
Number
Number
-
-
-
-
60,000,000
687,000,000
30,000,000
349,999,998
777,000,000
349,999,998
-
-
-
-
-
60,000,000
687,000,000
30,000,000
349,999,998
1,126,999,998
(i) Performance rights vest subject to meeting specific performance conditions. 60 million performance rights were issued
comprising three tranches of 20 million each. All tranches of performance rights have market vesting conditions being
share prices of $0.02 (tranche 1); $0.04 (tranche 2); and $0.06 (tranche 3) or more over a consecutive 20 day business
period. Each right is converted to one ordinary share upon vesting. No performance rights vested during the year.
(ii) Performance rights vest subject to meeting specific performance conditions. 687 million performance rights were issued
comprising three tranches of 229 million each. All tranches of performance rights have market vesting condition being
share prices of $0.0075 (tranche 1); $0.01 (tranche 2); and $0.0125 (tranche 3) or more over a consecutive 10 day business
period. Each right is converted to one ordinary share upon vesting. No performance rights vested during the year.
(iii) Performance rights vest subject to meeting specific performance conditions. 30 million performance rights were issued
comprising three tranches of 10 million each. All tranches of performance rights have market vesting condition being share
prices of $0.0075 (tranche 1); $0.01 (tranche 2); and $0.0125 (tranche 3) or more over a consecutive 10 day business period.
Each right is converted to one ordinary share upon vesting. No performance rights vested during the year.
(iv) Performance rights vest subject to meeting specific performance conditions. 350 million performance rights were issued
comprising three tranches of 117 million each. All tranches of performance rights have market vesting condition being
share prices of $0.0075 (tranche 1); $0.01 (tranche 2); and $0.0125 (tranche 3) or more over a consecutive 10 day business
period. Each right is converted to one ordinary share upon vesting. No performance rights vested during the year.
(v) Performance rights vest subject to meeting specific performance conditions. 1 billion performance rights were issued
comprising three tranches of 333.333 million each. All tranches of performance rights have market vesting condition being
share prices of $0.0015 (tranche 1); $0.002 (tranche 2); and $0.003 (tranche 3) or more over a consecutive 20 day business
period. Each right is converted to one ordinary share upon vesting.
(e) Terms and conditions of contributed equity
Ordinary Shares:
Ordinary shares have the right to receive dividends as declared and, in the event of winding up of the Company, to participate in
the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary
shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company.
Page 47
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
14. SHARE BASED PAYMENTS EXPENSE
Employee Option Plan
In August 2007, the Company adopted the Amani Gold Limited Employee Option Plan (“Plan”). The Plan allows Directors from
time to time to invite eligible employees to participate in the Plan and offer options to those eligible persons. The Plan is designed
to provide incentives, assist in the recruitment, reward, retention of employees and provide opportunities for employees (both
present and future) to participate directly in the equity of the Company. The contractual life of each option granted is three years
or as otherwise determined by the Directors. There are no cash settlement alternatives. During the current and prior year no
options were issued to employees of the Company (refer to Note 13(c)).
Non Plan based payments
The Company also makes share based payments to consultants and / or service providers from time to time, not under any specific
plan. The Amani Gold Limited Employee Option Plan does not allow for issue of options to the directors of the parent entity.
Hence, specific shareholder approval is obtained for any share based payments to directors of the parent entity. Nil options (2020:
36 million) were issued during the year under an engagement letter with a corporate advisor for services related to raising of new
capital.
The expense recognised in the statement of profit or loss and other comprehensive income in relation to share-based payments
is disclosed in Note 3.
Expenses arising from share-based payment transactions
Other share based payments, not under any plans, are as follows (with additional information provided in Note 13 above):
2019 Performance rights to director, Mr Yu (i)
2019 Performance rights to director, Mr Chan (i)
2019 Performance rights to director, Mr Yu (ii)
2019 Performance rights to director, Mr Chan (ii)
2019 Performance rights to director, Mr Eckhof (ii)
2019 Performance rights to director, Mr Thomas (ii)
2019 Performance rights to director, Mr Truelove (ii)
2019 Performance rights to other parties (ii)
2019 Performance rights to other parties (iii)
2020 Performance rights to director, Mr Yu (iv)
2020 Performance rights to director, Mr Chan (iv)
2020 Performance rights to director, Mr Eckhof (iv)
2020 Performance rights to director, Mr Thomas (iv)
2020 Performance rights to other parties (iv)
2021 Performance rights to Mr Eckof (v)
Total
2021
Number
30,000,000
30,000,000
180,000,000
135,000,000
240,000,000
90,000,000
15,000,000
27,000,000
30,000,000
137,500,000
40,000,000
137,500,000
30,000,000
4,999,998
1,000,000,000
2,126,999,998
2021
$
12,500
12,500
104,000
78,000
138,667
52,000
8,667
15,600
25,548
91,667
26,667
91,667
20,000
3,333
38,630
719,445
2020
Number
30,000,000
30,000,000
180,000,000
135,000,000
240,000,000
90,000,000
15,000,000
27,000,000
30,000,000
137,500,000
40,000,000
137,500,000
30,000,000
4,999,998
-
1,126,999,998
2020
$
30,000
30,000
104,000
78,000
138,667
52,000
8,667
15,600
25,548
61,111
17,778
61,111
13,333
2,222
-
638,037
(i)
(ii)
(iii)
60 million performance rights were granted during the year ended 30 June 2019 (refer to Note 13(d) for more
information). The fair value of the performance rights estimated at that time was $120,000. None of the performance
rights vested during the current year. A balance of $25,000 was recognised as a share based payment expense in the
current year.
687 million performance rights were granted during the year ended 30 June 2019 (refer to Note 13(d) for more
information). The fair value of the performance rights estimated at that time was $1,190,800. None of the performance
rights vested during the current year. A balance of $396,934 was recognised as a share based payment expense in the
current year.
30 million performance rights were granted during the year ended 30 June 2019 (refer to Note 13(d) for more
information). The fair value of the performance rights estimated at that time was $66,000. None of the performance
rights vested during the current year. A balance of $25,548 was recognised as a share based payment expense during
the year.
Page 48
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
14. SHARE BASED PAYMENTS EXPENSE – continued
(iv)
(v)
350 million performance rights were granted during the year ended 30 June 2020 (refer to Note 13(d) for more
information). The fair value of the performance rights estimated at that time was $700,000. None of the performance
rights vested during the current year. A balance of $233,333 was recognised as a share based payment expense during
the year.
1 billion performance rights were granted during the year ended 30 June 2021 (refer to Note 13(d) for more
information). The fair value of the performance rights estimated at that time was $695,333. None of the performance
rights vested during the current year. A balance of $38,630 was recognised as a share based payment expense during
the year. This was valued using the Barrier pricing model.
The fair value per Performance Right and the following inputs were used in the valuation model:
Performance Rights
Tranche 1
Tranche 2
Tranche 3
Grant Date
Expiry Date
30/4/2021
30/4/2021
30/4/2021
29/04/2024
29/04/2024
29/04/2024
Fair Value per Performance Right ($)
0.00073
0.00071
0.00063
Exercise Price
Expected volatility
Risk-free rate
Life of rights
Underlying security price at issue ($)
Nil
110%
0.10%
3 years
0.001
Nil
110%
0.10%
3 years
0.001
Nil
110%
1.02%
3years
0.001
The fair value of the equity-settled share options and performance rights granted is estimated as at the date of grant using the
Black Scholes model or the Barrier pricing model as appropriate, and taking into account the terms and conditions upon which
the options and rights were granted, including by reference to the market value of the shares trading on the Australian Securities
Exchange (ASX) on or around the date of grant. No new options were granted during the year, other than those issued to advisors
as located in note 13(b).
The total share based payment expense of $719,445(2020: $638,037) during the year ended 30 June 2021.
Page 49
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
15. RESERVES
The following table shows a breakdown of the statement of financial position line item ‘other reserves’ and the movements in
these reserves during the year. A description of the nature and purpose of each reserve is provided below the table.
Share based payments reserve (Note 15a)
Option premium reserve (Note 15b)
Foreign currency translation reserve (Note 15c)
Consolidated
2021
$
7,289,417
3,084,128
1,885,409
12,258,954
2020
$
6,569,972
1,585,693
4,180,830
12,336,495
Non-controlling interest reserve (Note 15d)
(13,265,354)
(13,949,392)
(a) Movement During the Year – Share based payment
Opening balance
Issue of options and performance rights
Closing balance
(b) Movement During the Year – Option premium
Opening balance
Issue of options
Closing balance
(c) Movement During the Year – Foreign Currency
Translation
Opening balance
Foreign currency translation differences
Closing balance
(d) Movement During the Year – Non-controlling interest
Opening balance
NCI share of loss for the year
Foreign currency translation differences
Closing balance
Nature and purpose of reserves
Share based payment Reserve
6,569,972
719,445
5,931,935
638,037
7,289,417
6,569,972
1,585,693
1,498,435
3,084,128
1,531,794
53,899
1,585,693
4,180,830
(2,295,421)
1,885,409
3,465,788
715,042
4,180,830
(13,949,392)
(78,051)
762,089
(13,265,354)
(13,710,272)
(182,420)
(56,700)
(13,949,392)
The share based payments reserve is used to record the fair value of options and performance rights issued but not exercised.
Option Premium Reserve
Option premium reserves is used to record the fair value for the issue of options to subscribe for ordinary shares in the Company.
Foreign Currency Translation Reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of the financial
statements of foreign operations where their functional currency is different to the presentation currency of the reporting entity.
Page 50
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
16. FINANCIAL RISK MANAGEMENT
Overview
The Group has exposure to the following risks from their use of financial instruments:
- credit risk
- liquidity risk
- market risk
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and processes for
measuring and managing risk, and the management of capital.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The
Board monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks.
(a) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s receivables from customers and investment securities.
(i)
Investments
The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have an
acceptable credit rating.
(ii) Receivables
As the Group operates in the mineral exploration sector rather than trading, it does not have receivables.
Presently, the Group undertakes exploration and evaluation activities in the DRC. At the reporting date there were no significant
concentrations of credit risk.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group does not have any
material risk exposure to any single debtor or group of debtors. A very large proportion of the bank deposits are held in Australia
with leading banks and a minor percentage of the Group’s bank deposits is held in well established DRC banks.
(b) Liquidity Risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
The Group manages liquidity risk by maintaining adequate reserves by continuously monitoring forecast and actual cash flows.
Due to the nature of the Group’s activities and the present lack of operating revenue, the Group has to raise additional capital
from time to time in order to fund its exploration activities. The decision on how and when the Group will raise future capital
will depend on market conditions existing at that time and the level of forecast activity and expenditure.
Typically the Group ensures that it has sufficient cash on demand to meet expected operational expenses for a period of at least
three to six months, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters.
The following table details the Group’s expected maturity for its non-derivative financial liabilities. These have been drawn up
based on undiscounted contractual maturities of the financial liabilities based on the earliest date on which the Group can be
required to pay.
Page 51
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
16. FINANCIAL RISK MANAGEMENT – continued
Less than 6
months
$
6 – 12
months
$
Over 1 year
Total
$
$
Group at 30 June 2021
Financial Liabilities:
Current:
Trade and other payables
Short-term borrowings
Total Financial Liabilities
903,106
-
903,106
-
2,100,000
2,100,000
-
-
-
903,106
2,100,000
3,003,106
Less than 6
months
6 – 12
months
Over 1 year
Total
Group at 30 June 2020
Financial Liabilities:
Current:
Trade and other payables
1,591,561
100,914
-
1,692,476
Short-term borrowings
-
-
2,100,000
2,100,000
Total Financial Liabilities
1,591,561
100,914
2,100,000
3,792,476
(c) Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to mitigate
market risk exposures such as predicting the amount of foreign currencies on a quarterly basis and monitoring closely exchange
rates fluctuations.
The company’s assets include 4.65 million shares in Blox Inc. The Company is exposed to fluctuations in the share price of
Blox Inc. The investment will be recorded at fair value at each reporting date, with changes in value recognised directly in other
comprehensive income. As at 30 June 2020 and 2021, the investment has been impaired to nil.
(i) Foreign exchange risk
The Group is exposed to foreign exchange risk on investments, purchases and borrowings that are denominated in a currency
other than the respective functional currency of Group entities, primarily the Australian dollar (AUD). The currencies in which
these transactions are primarily denominated are AUD and USD.
The Group has not entered into any derivative financial instruments to hedge such transactions and anticipated future receipts or
payments that are denominated in a foreign currency.
Page 52
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
16. FINANCIAL RISK MANAGEMENT – continued
(ii) Exposure to foreign exchange risk
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting
date explained in Australian dollars are as follows:
Notes
30 June 2021
Assets
$
Liabilities
$
30 June 2020
Assets
$
Liabilities
$
United States Dollar
Hong Kong Dollar
Tanzania Shillings
448,247
9,037
73,107
530,931
612,936
-
4,236
617,172
456,796
2,304
88,760
547,860
665,454
-
684
666,138
The following significant exchange rates applied during the year:
United States Dollar
Hong Kong Dollar
Tanzania Shillings
Notes
Average rate
Reporting date spot rate
2021
$
0.74
5.79
0.00058
2020
$
2021
$
2020
$
0.67
5.23
0.00065
0.75
5.83
0.00061
0.69
5.31
0.00063
There has been no material exposure to non functional currency amounts during the financial year.
(iii)
Sensitivity analysis
A 10 percent strengthening (based on forward exchange rates) of the Australian dollar against the above currencies at 30 June
would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant.
Consolidated
+10% Strengthening of the Australian Dollar
(Profit) or loss
Equity
-10% Weakening of the Australian Dollar
(Profit) or loss
Notes
(i)
(ii)
(i)
2021
$
(5,776)
22,706
7,103
Equity
(i)
(ii) this is mainly related to the translation of foreign operations at reporting date
this is mainly attributable to the exposure on USD cash
(ii)
(26,033)
2020
$
(12,686)
10,962
15,505
(13,398)
(iv)
Interest Risk
The Group’s exposure to the risk of changes in market interest rate relates primarily to the Group’s cash and cash equivalents.
At 30 June 2021 the weighted average interest rate on cash and cash equivalents was $Nil (2020: $Nil).
Sensitivity analysis
An increase of 50 basis points in interest rates would not have had a material impact on the Consolidated Entity’s profit or loss.
Page 53
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
16. FINANCIAL RISK MANAGEMENT – continued
(d)
Net fair values
For assets and other liabilities, the net fair value approximates their carrying value. No financial assets and financial liabilities
are readily traded on organised markets in standardised form.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of
financial position and in the notes to and forming part of the financial statements.
(e)
Capital risk management
Management controls the capital of the Group in order to ensure that the Group can fund its operations on an efficient and timely
basis and continue as a going concern.
There are no externally imposed capital requirements.
Management effectively manages the Group’s capital by assessing the Group’s cash projections up to twelve months in the future
and any associated financial risks. Management will adjust the Group’s capital structure in response to changes in these risks
and in the market.
There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.
17. FUNDS RECEIVED IN ADVANCE
In the prior year the Company completed a bookbuild for a two tranche placement to sophisticated and professional investors to
raise up to $2.55 million (“Placement”) to fund ongoing exploration activities at the Giro and Gada gold projects in the DRC and
meet ongoing working capital requirements.
Under the fundraising, the Company agreed to issue up to 2,550 million fully paid ordinary shares at an issue price of 0.1 cents
per share (Placement Shares), raising up to $2.55 million (before costs).
A total of $985,884 was received from investors as at 30 June 2020 and was recognized as funds received in advance.
Tranche 1 of the Placement, which comprises 1,003,700,000 Shares, was issued under the Company’s existing placement
capacity under ASX Listing Rule 7.1, was completed on 2 July 2020.
Tranche 2 of the Placement was approved by shareholders in the general meeting on 15 October 2020. There is no funds received
in advance as at 30 June 2021.
18. CONVERTIBLE NOTES
During the previous year the Company issued unsecured convertible notes with a face value of $2,100,000 as part of a capital
raising exercise.
Terms of the convertible note are as follows:
i.
ii.
iii.
Maturity date – 24 months from the date of advance;
Interest payable – 2.5% per annum, commencing 4 months from the date of issue;
Repayment: The Company could elect to repay all or part of the outstanding convertible notes at any time prior to
the maturity date. In addition, the Subscriber could elect to convert any of the convertible notes into new shares at
$0.003 per share.
The issue of shares upon conversion of the notes was approved at a meeting of shareholders convened on 25 March 2020.
During the reporting period the subscriber has not elect to convert any convertible notes to shares.
The convertible notes are classified as liability as NeoGold has the sole discretion to convert and if NeoGold does not elect to
convert, the Company has the obligation to repay the principal. The convertible remains outstanding as at 30 June 2021.
Page 54
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
19. CONTINGENCIES
If 3moz (measured and indicated category) gold resources at a cut-off grade of 2.5g/t Au are estimated at the Giro Project, Amani
will be required to pay US$5,350,000 to the former shareholders of Amani Consulting sarl (“Amani Consulting”) from whom
Amani acquired its 85% interest in the capital of Amani Consulting. At Amani’s election, 50% of this amount can be settled by
an issue of Amani shares at the then market value of Amani shares. In any case, the liability for this amount of US$5.35M only
falls due for payment upon drawdown of development funds. At the date of this report, the condition has not been met.
Under existing contractual terms of a shareholder agreement a feasibility study was required to be completed by 31 st December
2018 at the Giro Gold Project. Based on the amendment to the shareholder agreement, concluded in December 2017, with Societe
Miniere De Kilo Moto SA (“Sokimo”), a company wholly owned by the DRC Government (the original holder of the Giro
exploitation permits), an agreement was reached between the parties that the deadline for completion of the feasibility study
would be extended up to 31st December 2018. A draft feasibility study is with JV partner SOKIMO and Ministry of Mines for
review and a further extension to complete the feasibility study by end 2020 has been agreed with SOKIMO. The Company is
expecting to submit the feasibility study before the end of Q4 2021 and such plan has been informed to SOKIMO. In the absence
of a completed study, SOKIMO has the right to terminate the shareholders’ agreement with Amani Consulting by issuing a
termination notice with a six-month duration.
Amani has requested a quote from Beijing General Institute of Mining and Metallurgy (BGRIMM) to update the Giro Feasibility
Study by end 2020 given that the Giro global resource estimates have substantially increased since the initial Feasibility Study
which was based on Kebigada resource estimate of 75Mt @ 1.18g/t Au, for 2.9Moz gold (0.6g/t Au cut-off grade, see ASX
Announcement 27 August 2017). New combined Indicated and Inferred Mineral Resource Estimate for Kebigada and Douze
Match deposits is 132Mt @ 1.04g/t Au, for 4.4Moz contained gold (0.5g/t Au cut-off grade, see ASX Announcement 19 March
2020).
At the date of this report, feasibility study discussion have not formally concluded with Sokimo and no decision to mine has
been made.
On conclusion of feasibility studies and a decision to mine at the Giro Project, payments of US$ 897,606 will be required to be
made by Amani to Societe Miniere De Kilo Moto SA (Sokimo).
In view of the nature of the trigger events and the early stage of exploration activity at the Giro Gold Project, these liabilities are
contingent in nature and no values were allocated as liabilities in this financial report (2020: Nil).
On 14 October 2019 Amani Gold provided an update in relation to the Gada Gold Project. The update provided background to
the acquisition of the Gada Gold Project and that it had been made aware that BN Mining had commenced proceedings against
SOKIMO for the wrongful termination of an Option Agreement over the Gada Gold Project. Amani Gold also advised that it
understood that BN Mining had, or intended to, commence proceedings against the Company. Amani Gold has now confirmed
that proceedings have also been commenced against the Company for purportedly causing SOKIMO to terminate the Option
Agreement and has sought damages amounting to USD$100m as a result of the termination of the Option Agreement. The court
case with Amani Gold and BN Mining is continuing. On 29 January 2020 the Kinshasa Court gave a decision stating that
SOKIMO had not wrongfully terminated their Option Agreement with BN Mining. Furthermore, our lawyers reported that BN
failed to appear at the last hearing session on the 25th February 2020. The Company has requested the simple cancellation of the
matter. In April of the year 2021, the commercial court of Kinshasa/Gombé had rendered its final judgment in favour of the
Company by declaring the action of BN Mining not receivable for lack of quality.
In view of the nature of the trigger events relating to the Giro Gold Project and unlikeliness of a successful claim by BN Mining
on Gada Gold Project legal proceedings, these liabilities are contingent in nature and no values were allocated as liabilities in
this financial report (30 June 2020: Nil).
Page 55
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
20. COMMITMENTS
(a)
Capital commitments
There were no capital commitments, not provided for in the financial statements as at 30 June 2021.
(b)
Lease commitments: non-cancellable operating lease
Amago Trading Tanzania Limited entered into a lease agreement for the use of office space at its corporate office expiry date of
30th November 2020.
Commitments for minimum lease payments in relation to
non-cancellable operating leases are payable as follows:
Within one year
One year to five years
Total
Consolidated
2021
$
-
-
-
2020
$
899
-
899
21. STATEMENTS OF CASH FLOWS
(a) Reconciliation of loss after income tax to net cash outflow from
operating activities
Profit / (loss) after income tax
Add back non-cash items:
Depreciation
Share based payments expense
Impairment
. Net exchange differences
Change in assets and liabilities:
(Increase) / Decrease in receivables
Increase / (Decrease) in operating payables
Net cash outflow from operating activities
(b) Non-Cash Financing and Investing Activities
2021
$
2020
$
(4,188,210)
(3,983,939)
44,799
719,445
1,014,806
73,135
638,037
-
7,847
(16,828)
(65,216)
(74,538)
(242,116)
2,038,389
(2,708,645)
(1,325,743)
Share based payment expenses of $1,498,435 (2020 - $135,750) were classified as share issue costs and recorded directly in
equity. During the previous year, the company has issued 699,047,035 shares at $0.003 per share to Shining Mining Limited as
approved by Shareholders at a reconvened General Meeting held on 8 April 2020 to settle a liability of $2,097,141 to Simon
Cong, the sole shareholder of Shining Mining Limited.
During the year the company has not repaid any loan outstanding from the prior year (2020: $Nil).
Page 56
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
22. RELATED PARTY TRANSACTIONS
(a) Key Management Personnel
Short term remuneration
Termination Benefit
Post Employment Superannuation
Share based payments
2021
$
909,188
75,400
60,122
674,964
1,719,674
2020
$
960,530
-
51,879
594,667
1,607,076
A number of key management persons, or their related parties, hold positions in other entities that result in them having control
or significant influence over the financial or operating policies of those entities. Transactions between related parties are on
normal commercial terms and conditions unless otherwise stated.
Accounting, and corporate service fees paid or payable to Mrs Miao
Wang, a spouse of Technical Director Mr Grant Thomas.
Payment of introduction incentive to Mr. Yu Qiuming, non-executive
director. The incentive was approved by Shareholders at the general
meeting held 15 October 2019
(b) Parent entity
Amani Gold Limited is the ultimate parent entity.
Consolidated
2021
$
2020
$
114,450
56,940
-
37,500
Page 57
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
23. PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets (note i)
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net Assets
Equity
Issued capital
Accumulated losses
Reserves
Share based reserves
Option premium reserve
Foreign current translation reserve
Total equity
Financial performance
Loss for the year
Total comprehensive Income
Parent
2021
$
2020
$
812,082
22,112,029
22,924,111
996,322
23,557,952
24,554,274
656,494
2,100,000
2,756,494
2,012,222
2,100,000
4,112,222
20,167,617
20,442,052
80,352,042
(71,657,023)
76,642,246
(65,452,640)
7,289,417
3,084,128
1,099,054
6,569,972
1,585,693
1,096,781
20,167,617
20,442,052
Parent
2021
$
(6,204,383)
(6,204,383)
2020
$
(2,353,269)
(2,353,269)
(i) The recoupment of the parent entity’s investments and loans to its subsidiaries is dependent upon the successful
development and commercial exploitation or sale of the underlying exploration assets.
Contingent liabilities of the parent entity
The parent entity’s contingent liabilities are noted in Note 19.
For details on commitments, see Note 20.
Commitments for the acquisition of property, plant and equipment by the parent entity
The parent entity has not made any commitments for the acquisition of property, plant and equipment.
Page 58
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
23. PARENT ENTITY DISCLOSURES – continued
Interest in Subsidiaries
Parent Entity
Amani Gold Limited
Subsidiary
Amani Consulting SARL1
- Giro Goldfields SARL
Burey Resources Pty Ltd
Amani Minerals (HK) Limited
Congold SASU
Amago Resources Kenya Limited2
Amago Trading Tanzania Limited
Place of
Incorporation
Consolidated
Entity Interest
2021
%
Consolidated
Entity Interest
2020
%
Class of
Shares
Australia
DRC
DRC
Australia
Hong Kong
DRC
Kenya
Tanzania
85%
65%
100%
100%
100%
-
60%
85%
65%
100%
100%
100%
100%
60%
Ord
Ord
Ord
Ord
Ord
Ord
Ord
1. Amani Consulting SARL is the parent entity of Giro Goldfields SARL with a 65% interest.
2. Amago Resources Kenya Limited was dissolved on 8 May 2020.
24.
EVENTS OCCURRING AFTER THE REPORTING DATE
Since the end of the financial year and to the date of this report no matter or circumstance has arisen which has
significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those
operations or the state of affairs of the consolidated entity in subsequent financial years other than the matters referred
to below.
Subsequent to year end, the Group announced that it had received commitments for a two tranche placement to
sophisticated and professional investors to raise to $7 million to fund ongoing exploration activities at the Giro gold
projects in the DRC and meet ongoing working capital requirements. Tranche 1 had raised $1.8 million with Tranche
2 is subject to shareholder approval but will raise up to $5.2m when approved.
The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not significantly impacted the
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 other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly
affect the entity's operations, the results of those operations, or the entity's state of affairs in future financial years.
Page 59
Amani Gold Limited
Notes to the Consolidated Financial Statements
for the year ended 30 June 2021
In the opinion of the Directors:
a)
The financial statements and the notes and the additional disclosures included in the directors’ report
designated as audited of the consolidated entity are in accordance with the Corporations Act 2001, including:
(i)
(ii)
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
Complying with Accounting Standards (including Australian Accounting Standards) and
Corporations Regulations 2001 and other mandatory professional reporting requirements; and
There are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
The financial statements and notes thereto include an explicit and unreserved statement of compliance with
International Financial Reporting Standards issued by the International Accounting Standards Board.
b)
c)
This declaration has been made after receiving the declarations required to be made to the Directors in accordance
with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.
Signed in accordance with a resolution of the Directors made pursuant to s 295(5) of the Corporations Act 2001.
On behalf of the Board
Klaus Eckhof
Executive Chairman
Dated 29th day of September 2021
Page 60
Tel: +61 8 7324 6000
Fax: +61 8 7324 6111
www.bdo.com.au
BDO Centre
Level 7, 420 King William Street
Adelaide SA 5000
GPO Box 2018 Adelaide SA 5001
Australia
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AMANI GOLD LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Amani Gold Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report which describes the events and/or conditions which
give rise to the existence of a material uncertainty that may cast significant doubt about the group’s
ability to continue as a going concern and therefore the group may be unable to realise its assets and
discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this
matter.
C:\Users\Andrew.Bruce\Downloads\2.3 ASX Listed_Audit Report_Group_MUGC_Unmodified_All (1).docx
BDO Audit (SA) Pty Ltd ABN 33 161 379 086 is a member of a national association of independent entities which are all members of BDO
Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (SA) Pty Ltd and BDO Australia Ltd are
members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent
member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. In addition to the matter described in the Material uncertainty
related to going concern section, we have determined the matters described below to be the key audit
matters to be communicated in our report.
Carrying Value of exploration and evaluation assets
KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN OUR AUDIT
Refer to note 11 in the financial report.
Our procedures included, but were not limited to:
The Group has recognised exploration and
evaluation assets totalling $22,611,498 per
the application of the Group's accounting
policy for exploration and evaluation
expenditure, as set out in Note 1.
The carrying value of the exploration and
evaluation assets is a key audit matter due
to:
The significance of the total balance;
and
The risk that these assets, comprising
areas of interest, may be impaired due
to the existence of impairment
indicators that have not been
sufficiently considered and require
significant judgements by management.
Agreeing the status of tenements directly to
government databases;
Considering management’s impairment assessment
over each area of interest, including the
impairment expense of $1,014,806 recognised
during the period;
Obtaining and reviewing budgets and assumptions
made by management to ensure that expenditure
on further exploration for and evaluation of the
mineral resources in the areas of interest were
planned;
Considering whether there is any indication of
impairment from ASX announcements, Board
minutes and other documents; and
Assessing the adequacy of the related disclosures in
Note 11 to the Financial Statements.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Other matter
The financial report of Amani Gold Limited, for the year ended 30 June 2020 was audited by another
auditor who expressed an unmodified opinion on that report on 30 September 2020.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 16 to 22 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Amani Gold Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (SA) Pty Ltd
Andrew Tickle
Director
Adelaide, 29 September 2021
Amani Gold Limited
Annual Report 2021
Additional Shareholder Information
The shareholder information set out below was applicable as at 28 September 2021.
Corporate Governance Statement
In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Amani
Gold Limited support and adhere to the principles of corporate governance. Please refer to the Company’s website
the year ended 30 June 2021:
for details of
https://www.amanigold.com/corporate/corporate-governance/
the Corporate Governance Statement effective for
Substantial shareholders
An extract of the Company’s register of substantial shareholders is set out below (28 September 2021).
Shareholders
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
SHINING MINING COMPANY LIMITED
Number of Shares
2,047,000,923
1,608,745,180
904,862,697
833,880,368
Distribution of equity security holders
SPREADS OF HOLDINGS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 999,999,999,999
TOTAL
NUMBER
OF
HOLDERS
72
84
139
722
2,233
3,250
NUMBER OF UNITS
11,391
266,618
1,164,723
32,650,830
14,171,103,185
14,205,196,747
% OF TOTAL ISSUED
CAPITAL
0.00%
0.00%
0.01%
0.23%
99.76%
100%
The number of shareholdings comprising less than a marketable parcel was 1,801
Twenty Largest Shareholder
Rank Name
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
CITICORP NOMINEES PTY LIMITED
SHINING MINING COMPANY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
LUCK WINNER INVESTMENT LIMITED
MCNEIL NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
MR JEAN MARC ALLEGRET
NOTRE DAME INVESTMENT LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HON HAK KA
GREGORY DENISE PTY LTD
REDLAND PLAINS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
15
16 WHEAD PTY LTD
17
AMAX PACIFIC PTY LIMITED
MR KIN WING CHAN + MRS WAI SHAN YAP
ST BARNABAS INVESTMENTS PTY LTD
MR REUBEN MICHAEL CIAPPARA
1
2
3
4
5
6
7
8
9
10
11
12
13
14
18
19
20
Units
2,047,000,923
1,608,745,180
904,862,697
833,880,368
707,463,308
600,000,000
454,705,943
373,437,804
341,041,476
340,000,000
293,691,068
250,000,000
116,576,229
104,000,000
83,651,943
76,000,000
70,500,000
65,000,000
63,000,000
60,902,051
% of Units
14.41
11.33
6.37
5.87
4.98
4.22
3.2
2.63
2.4
2.39
2.07
1.76
0.82
0.73
0.59
0.54
0.5
0.46
0.44
0.43
Totals: Top 20 holders of ANL ORDINARY FULLY PAID
Total Remaining Holders Balance
Total Holders Balance
9,394,458,990
4,810,737,757
14,205,196,747
66.13
33.87
100
Page 64
Amani Gold Limited
Annual Report 2021
Additional Shareholder Information
Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. On a show of hands every person
present who is a member or representative of a member shall have one vote and on a poll, every member present in
person or by proxy or by attorney or duly authorised representative shall have one vote for each share held. None of
the options has any voting rights.
On-market buy-back
There is no current on-market buy-back.
Options and Performance Rights
ANLOA $0.0015 15 JAN 2023
Ex $0.0075 ex 27 May 2022
Ex $0.01 ex 27 May 2022
Ex $0.0125 ex 27 May 2022
Ex $0.0075 ex 15 DEC 2023
Ex $0.01 ex 15 DEC 2023
Ex $0.0125 ex 15 DEC 2023
Performance Rights
Mineral Interests
Location
Concession
name
and type
8,310,549,997
40,000,000
40,000,000
40,000,000
12,000,000
12,000,000
12,000,000
2,066,999,998
Registered
Amani’s Maximum
Notes
Holder
current
equity
interest
equity
interest
capable of
being earned
DRC
Giro Exploitation
Permits
PEs 5046 & 5049
Giro Goldfields SARL
55.25%
55.25%
1
DRC - Democratic Republic of Congo
Notes:
1.
In September 2014 Amani Gold completed the acquisition of 85% of the share capital in Amani Consulting sarl (“Amani
Consulting”), which entity owns 65% of the capital in Giro Goldfields sarl (“Giro sarl”), a DRC registered company and the
registered holder of the two exploitation permits comprising the Giro Project. Amani Gold is responsible for sole funding
exploration on the Giro Project. Societe Miniere De Kilo Moto SA (“Sokimo”), a limited liability company wholly owned
by the DRC Government holds the other 35% interest in Giro sarl.
Under existing contractual terms with Sokimo a feasibility study was required to be completed by 31st December 2018 at
the Giro Gold Project. Based on the amendment to the shareholder agreement, concluded in December 2017, with Sokimo,
an agreement was reached between the parties that the deadline for completion of the feasibility study would be extended
up to 31st December 2018, a further 12-month extension could be requested if Amani shows that the work to complete the
feasibility study is progressing positively.
Page 65
Amani Gold Limited
Annual Report 2021
Additional Shareholder Information
Amani has requested a quote from Beijing General Institute of Mining and Metallurgy (BGRIMM) to update the Giro
Feasibility Study by end 2020 given that the Giro global resource estimates have substantially increased since the initial
Feasibility Study which was based on Kebigada resource estimate of 75Mt @ 1.18g/t Au, for 2.9Moz gold (0.6g/t Au cut-
off grade, see ASX Announcement 27 August 2017). New combined Indicated and Inferred Mineral Resource Estimate for
Kebigada and Douze Match deposits is 132Mt @ 1.04g/t Au, for 4.4Moz contained gold (0.5g/t Au cut-off grade, see ASX
Announcement 19 March 2020).
At the date of this report, feasibility study discussion have not formally concluded with Sokimo and no decision to mine has
been made. The company is also under negotiation with Sokimo to extend the date for submission of the final feasibility
study.
Page 66