ANGLO AUSTRALIAN RESOURCES NL
AND ITS CONTROLLED ENTITIES
ABN 24 651 541 976
Annual Report
For the year ended 30 June 2021
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Contents
Contents
Corporate Directory ...................................................................................................................................................... 2
Review of Operations.................................................................................................................................................... 3
Directors’ Report......................................................................................................................................................... 28
Auditor’s Independence Declaration ............................................................................................................................ 44
Independent Auditor’s Report ...................................................................................................................................... 45
Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................ 49
Consolidated Balance Sheet ....................................................................................................................................... 50
Consolidated Statement of Cash Flows ....................................................................................................................... 51
Consolidated Statement of Changes in Equity ............................................................................................................. 52
Notes to the Consolidated Financial Statements .......................................................................................................... 53
Director’s Declaration.................................................................................................................................................. 80
ASX Additional Information ......................................................................................................................................... 81
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Corporate Directory
Corporate Directory
This financial report includes the consolidated financial statements and notes of Anglo Australian Resources NL (Anglo
Australian or the Company) and its controlled entities (the Group). The Group’s functional and presentation currency is
AUD ($).
A description of the Group’s operations and of its principal activities is included in the review of operations and activities in
the Directors’ report. The Directors’ report is not part of the financial report.
Directors
Leigh Warnick - Non-Executive Chairman
Marc Ducler - Managing Director
John Jones - Non-Executive Director
Peter Stern - Non-Executive Director
David Varcoe - Non-Executive Director
Company Secretary
Brendon Morton
Registered Office & Principal Place of Business
Suite 2, 6 Lyall Street
South Perth WA 6151
Telephone: +61 8 9382 8822
E-mail: info@anglo.com.au
Website: www.anglo.com.au
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: +1300 288 664
Auditors
BDO Audit (WA) Pty Ltd
38 Station Street
Subiaco WA 6008
Bankers
National Australia Bank
197 St George’s Terrace
Perth WA 6000
Solicitors
Thomson Geer
Level 27, Exchange Tower
2 The Esplanade
Perth WA 6000
Stock Exchange
Australian Securities Exchange Limited
Level 40, Central Park
152-158 St George’s Terrace
Perth WA 6000
ASX Code: AAR
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Review of Operations
Anglo Australian Resources NL’s (AAR or the Company) principal activity during the financial year was progressing the
Company’s 100% owned Mandilla Gold Project (Mandilla).
Mandilla was the subject of significant exploration and resource definition effort during the financial year, with more than
34km of reverse circulation (RC) and diamond drilling completed. This culminated in the release of a maiden Mineral
Resource Estimate (MRE) for the Mandilla Gold Project during May 2021 of 15.57Mt at 1.0g/t Au for 500.4koz of
contained gold. An updated MRE was then released during August 2021 for 19.8Mt at 1.0g/t Au for 664.6koz of
contained gold.
Mineralisation at Mandilla has to date been identified over a strike length of approximately 3.1km, inclusive of the Mandilla
East prospect, Mandilla South prospect and the newly identified Eos prospect. The Eos prospect, which is not included in
the MRE, is situated to the south of Mandilla South. Eos is a consistent zone of high-grade gold mineralisation that has to
date been identified for more than 600m along strike at just 40m below surface.
AAR completed the farm-out transaction with AuKing Mining Limited (AuKing) during the June 2021 Quarter with respect
to the Koongie Park Base Metals Project (Koongie Park). The completion of this transaction is consistent with the
Company’s strategy to focus on its flagship Mandilla Gold Project and the nearby Feysville Gold Project (Feysville).
The Group’s operations during the financial year have been affected by COVID-19; however, the combined collaborative
support of Government, representative industry bodies, employees, contractors, suppliers and our host communities has
allowed the Company to adapt and mitigate, as far as practicable, the risks this infectious disease presents. The Company
will continue to pursue its exploration activities, subject to the evolving and unforeseen impacts of COVID-19.
Mandilla Gold Project
Anglo Australian – 100%
Mandilla is situated in the northern Widgiemooltha greenstone belt in the western part of the Kalgoorlie geological domain,
some 70 kilometres south of Kalgoorlie, Western Australia, a significant gold mining centre. The location of Mandilla in
relation to Kalgoorlie and other nearby gold projects is set out in Figure 1.
Mandilla lies on the western margin of a porphyritic granitic intrusion, the Emu Rocks Granite. The granite intrudes
volcanoclastic sedimentary rocks in the project area which form part of the Spargoville Group. Mandilla comprises the
Mandilla East prospect, the Mandilla South prospect, the previously mined paleochannel pit and the newly discovered Eos
prospect.
Significant NW to WNW-trending structures along the western flank of Mandilla are interpreted from aeromagnetic data to
cut through the granitic intrusion and may be important in localising mineralisation at Mandilla East. A second sub-parallel
structure appears to host Mandilla South. Both prospects are covered by Mining Leases.
A map of Mandilla, illustrating key locations and geological features, is shown in Figure 2.
During the year, the Company’s primary focus was on exploration and resource definition drilling at Mandilla, in order to
delineate the maiden MRE and advance the project towards a potential development. The maiden MRE was declared on
27 May 2021 and was subsequently updated on 17 August 2021. The MRE is discussed in detail below.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
Figure 1 – Mandilla location map.
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Figure 2: Mandilla local area geology.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
Drill Programs
Four separate drilling programs were undertaken during the year, combining for a total of 34,499m of drilling, comprising
28,932m of RC drilling and 6,601m of diamond drilling. The drill programs are summarised into four programs each of
which is discussed in further detail below.
1. 2020 Diamond Program
The 2020 Diamond Drilling Program (DD20) commenced during June 2020 and was completed during late August 2020.
DD20 included a planned 13-hole diamond drilling program for an aggregate of 3,000m. Upon completion, a total of 13
holes and an aggregate of 3,931m was drilled, of which 3,080m were completed during the year.
Diamond drill holes were collared on 40m spaced sections to provide data to assist in the geological interpretation and test
down-plunge extensions of the mineralisation at Mandilla East.
A total of 11 diamond holes were drilled on Mandilla East for a total of 3,414m. A single diamond hole was drilled to follow
up the Mandilla East southern extension (MDRCD184) for a total of 219m and a single diamond hole was drilled to test
Mandilla South (MDRCD237) for a total of 298m.
2. 2020 RC Program
The 2020 RC Program (RC20) commenced during September 2020 and was completed during December 2020 for a total
of 99 holes and 14,863m of drilling, incorporating the following:
27 holes for 3,955m of drilling to in-fill the Mandilla East mineralisation to a 40m x 40m drill density over the
majority of the delineated strike extent; and
74 holes for 10,908m of drilling testing the scale of mineralisation at Mandilla South and testing the potential of
the corridor between Mandilla East and Mandilla South.
3. 2021 RC Program
The 2021 RC Program (RC21) commenced on 6 January 2021 and concluded during April 2021 and comprised a total of
97 RC holes and 4 pre-collars for a total of 14,074m comprising:
1 hole for 160m testing mineralisation north of Mandilla East;
19 holes for 3,531m of in-fill drilling at Mandilla East;
11 holes for 1,540m to test the south-eastern extension to Mandilla East;
16 holes for 2,345m to test the potential linkage of Mandilla East to Mandilla South;
18 holes for 2,613m of in-fill drilling at Mandilla South;
13 holes for 1,040m of drilling to test the supergene zone located south-east of Mandilla South; and
19 holes for 2,845m of drilling at Mandilla East incorporating in-fill drilling and testing the south/south-east
extension.
4. 2021 Diamond Program
The 2021 Diamond Program (DD21) commenced during February 2021 and concluded during April 2021 with drilling
focused on resource definition at Mandilla East, drill testing for mineralisation between Mandilla East and Mandilla South
and geotechnical drilling. A total of 16 holes for 2,669m of diamond drilling was completed. This included five geotechnical
diamond holes for a total of 537m.
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Image 1 – RC drilling at Mandilla East
To 30 June 2021, across a number of drilling campaigns, the Company has undertaken a total of 49,145m of RC drilling
and 7,626m of diamond drilling for a total of 56,771m of drilling. This represents a significant investment in exploration
drilling and demonstrates the Company’s belief in the geological potential of Mandilla.
Drill Results
The Company released a significant number of drill results from the four separate drilling programs undertaken during the
year. A summary of the drill results released during the year and post-year-end, are provided in chronological order below:
11 August 2020
On 11 August 2020, the Company announced the results from a total of 4 diamond holes for an aggregate of 1,152m,
drilled as part of the DD20 program.
Results included the following:
76.5m @ 1.21g/t Au from 296m in MDRCD191;
13.4m @ 7.02g/t Au from 180.4m plus 1.82m @ 15.71g/t Au from 222.28m in MDRCD228;
9.35m @ 1.04g/t Au from 201.4m plus 11.1m @ 1.83g/t Au from 261.7m in MDRCD217; and
10.9m @ 1.52g/t Au from 196.2m plus 15.55m @ 1.12g/t Au from 260.45m in MDRCD229.
Visible gold was logged within the quartz vein zones of all the significant diamond drill intersections reported for each of
the four holes.
15 September 2020
On 15 September 2020, the Company announced the results from the remaining 8 diamond drill holes from the DD20
program for an aggregate 2,376m drilled.
Six diamond drill holes were collared on 40m spaced sections to provide data to assist in the geological interpretation and
test down-plunge extensions of the mineralisation at Mandilla East.
One diamond hole was drilled to follow up the Mandilla East southern extension (MDRCD184) and one hole to test Mandilla
South (MDRCD237).
One diamond drill hole (MDRCD236) was utilised for geotechnical evaluation and formed part of the metallurgical test
program discussed in subsequent sections.
Results included the following:
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
81.4m @ 1.63g/t Au from 179.6m in MDRCD230;
40.5m @ 1.91g/t Au from 274.5m plus 10.1m @ 1.39g/t Au from 130.6m plus 13.7m @ 1.00g/t Au from
250.7m in MDRCD231;
2.8m @ 6.41g/t Au from 131.6m plus 5.0m @ 4.23g/t Au from 264.7m in MDRCD232;
8.2m @ 1.84g/t Au from 129.3m in MDRCD234; and
16.9m @ 1.39g/t Au from 165.8m plus 6.4m @ 2.06g/t Au from 197.5m in MDRC237.
17 February 2021
On 17 February 2021, the Company announced the results from a total of 62 RC holes for an aggregate of 9,066m,
completed as part of the RC20 program drilled up until the Christmas/New Year break at Mandilla South, including the
exploration targets to the east and south-east.
Results included the following:
17m @ 3.29g/t Au from 101m in MDRC301;
52m @ 1.00g/t Au from 123m in MDRC303;
21m @ 1.11g/t Au from 105m plus 1m @ 14.96g/t Au from 63m in MDRC310;
24m @ 0.83g/t Au from 88m in MDRC299;
10m @ 1.36g/t Au from 50m in MDRC298;
11m @1.21g/t Au from 114m in MDRC296; and
19m @ 0.84g/t Au from 58m in MDRC281.
These results demonstrate a growing footprint of mineralisation at Mandilla South, delineating wide zones of mineralisation
that remain open at depth and along strike to the north. This confirmed the potential for the bedrock mineralisation between
Mandilla South and Mandilla East to link up.
26 March 2021
On 26 March 2021, the Company announced the results from a total of 34 RC holes for an aggregate of 5,307m, completed
as part of the RC20 program drilled up until the Christmas/New Year break. Of the reported 34 RC holes, 23 holes for an
aggregate of 3,620m represented in-fill and extensional drilling at Mandilla East with the remaining 11 holes for an
aggregate of 1,687m drilled at Mandilla South.
At the northern extents of the Mandilla East mineralisation, results returned broad zones of low-grade mineralisation that
were consistent with previous drilling in this area.
Results included:
19m @ 0.58g/t Au from 116m in MDRC241;
27m @ 0.50g/t Au from 70m in MDRC245;
19m @ 0.59g/t Au from 130m in MDRC242; and
28m @ 0.41g/t Au from 37m in MDRC246.
A high-grade zone at the northern extent of Mandilla East, which returned a previously reported intersection of 9m @
5.89g/t Au from 76m in MDRC195, returned further high-grade intercepts from holes drilled nearby including:
18m@ 4.74g/t Au from 54m in MDRC351; and
16m @ 1.40g/t Au from 36m in MDRC352.
Further south of the above intersections, in-fill drilling intersected:
29m @ 1.81g/t Au from 105m in MDRC357;
7m @ 4.61g/t Au from 74m in MDRC364; and
19m @ 0.83g/t Au from 30m in MDRC358.
At Mandilla South, significant results included:
21m @ 1.07g/t Au from 57m in MDRC318; and
10m @ 1.89g/t Au from 108m in MDRC307.
20 April 2021
On 20 April 2021, the Company announced the results from a total of 18 RC holes for an aggregate of 3,061m of in-fill
drilling in the Mandilla East Main Zone of which 15 holes for an aggregate of 2,531m were drilled as part of the RC21
program. The remaining three holes for an aggregate of 530m were completed as part of the RC20 program up to
December 2020. Best reported results from the Mandilla East Main Zone drilling included:
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
83m @ 1.47g/t Au from 96m in MDRC326;
64m @ 1.88g/t Au from 44m in MDRC324;
84m @ 1.00g/t Au from 91m in MDRC329;
53m @ 0.92g/t Au from 58m plus 36m @ 1.24g/t Au from 124m in MDRC327; and
37m @ 0.97g/t Au from 113m in MDRC330.
MDRC324 which returned an intersection of 64m at 1.88g/t Au from 44m, also demonstrated significant quantities of
visible gold when panned (refer to Image 2). The interval from 102 to 103m assayed 8.02g/t Au and is further testament
to the significant quantities of visible gold evident at Mandilla.
Image 2 - Visible gold in MDRC324 from 102m - 103m
The Mandilla East in-fill results demonstrate a continuous wide zone of gold mineralisation. Historically this area has
delivered the widest and highest-grade intersections and the most recent in-fill results continue to build on this high-grade
zone.
20 May 2021
On 20 May 2021, the Company announced the results from a total of 15 RC holes completed as part of the RC21 program
for an aggregate of 2,200m with the drilling targeting mineralisation to the south of Mandilla East. Best results include:
66m at 1.77g/t Au from 70m in MDRC334;
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
9m at 4.21g/t Au from 85m in MDRC341;
38m at 1.06g/t Au from 78m and 17m at 1.08g/t Au from 124m in MDRC347;
86m at 0.61g/t Au from 105m in MDRC348;
18m at 1.23g/t Au from 121m in MDRC340;
10m at 2.12g/t Au from 48m in MDRC335; and
11m at 1.75g/t Au from 41m in MDRC346.
29 July 2021
On 29 July 2021 (post reporting date), the Company announced the results from a total of 51 RC holes completed as part
of the RC21 program for an aggregate 7,071m of drilling and two diamond holes for 584.5m of drilling. The results relate
to drill samples submitted for assay from February to April 2021.
At Mandilla East, assay results were reported for 21 RC holes (including a 75m RC pre-collar) for an aggregate 3,052m
and two diamond holes for an aggregate 584.5m. Best results included:
64.57m at 3.49g/t Au from 190m, 14.39m at 2.89g/t Au from 169.37m and 13.8m at 0.91g/t Au from 139.7m in
MDRCD377;
30m at 4.76g/t Au from 84m in MDRC433;
37m at 3.07g/t Au from 89m and 20m at 1.15g/t Au from 38m in MDRC426;
39m at 1.23g/t Au from 141m, 14m at 0.63g/t Au from 119m and 10m at 0.60g/t Au from 102m in MDRC427;
34m at 1.15g/t Au from 105m in MDRC438;
24.45m at 1.40g/t Au from 133.5m in MDRCD376;
17m at 1.76g/t Au from 99m in MDRC424;
28m at 0.98g/t Au from 45m in MDRC423;
6m at 3.61g/t Au from 142m and 17m @ 1.15g/t Au from 117m in MDRC435;
12m at 1.41g/t Au from 141m in MDRC421;
8m at 1.92g/t Au from 132m in MDRC428;
8m at 1.77g/t Au from 102m and 20m at 0.52g/t Au from 14m in MDRC429;
9m at 1.11g/t Au from 41m in MDRC437.
Of these 21 holes, 15 returned results with gram metre intervals (i.e. the product of grams and metres) of greater than 5.
Much of this drilling was conducted over a lightly-drilled area covering a 300m strike length extending Mandilla East to the
south-east.
Three RC holes were drilled 80m to the north of the Mandilla East Main Zone. Holes were drilled 40m apart along section,
with assays returning the following result highlights:
2m at 1.39g/t Au from 23m in MDRC436;
9m at 1.11g/t Au from 41m in MDRC437; and
34m at 1.15g/t Au from 105m in MDRC438.
At Mandilla South, assay results were reported for 27 RC holes (including two RC pre-collars) for an aggregate 3,554m.
Best results included:
10m at 1.30g/t Au from 86m in MDRC394;
7m at 1.68g/t Au from 68m in MDRC374;
8m at 1.03g/t Au from 131m in MDRC387; and
3m at 2.56g/t Au from 82m in MDRC385.
MDRCD377 located in the northern portion of Mandilla East, returned significant zones of mineralisation at depth. The
laminated gold enriched veining is similar to, and potentially represents a deeper zone of increased enrichment currently
thought to be associated with previously-reported holes MDRCD230 (81.45m at 1.63g/t Au from 179.6m) and MDRCD191
(76.5m at 1.21g/t Au from 296m), located 170m and 260m to the south respectively.
There were 42 observations of visible gold in core from MDRCD377. Two examples are illustrated below:
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Image 3 – MDRCD377 which assayed 0.64m @ 35.97 g/t
Au from 181m
Image 4 – MDRCD377 which assayed 0.7m @ 143.56 g/t Au from
223m
26 August 2021
On 26 August 2021 (post reporting date), the Company announced the results from a total of 21 RC holes for an aggregate
of 2,432m of drilling. The results relate to drill samples completed as part of the RC21 program submitted for assay from
February to April 2021 from in-fill drilling at Mandilla South and from drilling designed to target a shallow weathered zone
south of Mandilla South (known as Eos), where previous drilling encountered mineralisation. Best new results include:
3m at 8.62g/t Au from 51m in MDRC402;
12m at 1.52g/t Au from 96m and 16m at 0.66g/t Au from 59m in MDRC395;
12m at 1.29g/t Au from 47m in MDRC388;
4m at 3.43g/t Au from 52m in MDRC413;
4m at 3.14g/t Au from 55m in MDRC406; and
4m at 2.88g/t Au from 51m in MDRC414.
The newly-discovered mineralised zone at Eos is currently known to extend for 600m along strike and remains open to
both the north and south.
Previous drilling identified a shallow zone of high-grade mineralisation at Eos, approximately 40m below surface with
reported results including:
3m at 4.20g/t Au from 42m in MSRC001;
7m at 1.05g/t Au from 44m in WID2082;
2m at 3.42g/t Au from 47m in MNAC816; and
4m at 1.57g/t Au from 48m in WID2047.
As part of the recent campaign, previously identified mineralisation was followed up with 11 RC drill-holes for a total of
950m. The mineralisation is located within in-situ clays below the base of transported material. Best new results included:
3m at 8.62g/t Au from 51m, including 1m at 25.47g/t Au from 52m in MDRC402;
4m at 3.43g/t Au from 52m, including 1m at 5.91g/t Au from 53m in MDRC413;
4m at 3.14g/t Au from 55m, including 1m at 11.76g/t Au from 55m in MDRC406; and
4m at 2.88g/t Au from 51m, including 1m at 8.51g/t Au from 52m in MDRC414.
At Mandilla South a similar shallow zone of high-grade mineralisation has previously been identified above bedrock
mineralisation. Here, previously reported results include:
12m at 1.29g/t Au from 47m, including 1m at 11.33g/t Au from 57m in MDRC388;
4m at 1.8g/t Au from 55m in MDRC293;
4m at 1.28g/t Au from 54m in MDRC275;
3m at 1.71g/t Au from 53m, including 1m at 4.59g/t Au from 53m in MDRC255; and
6m at 1.08g/t Au from 54m in MDRC269.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
Drill-hole MDRC402 represents a paleochannel-style of mineralisation, while the other mineralised drill-holes appear to be
related to in-situ weathered clays which may be an important indicator for the presence of deeper bedrock mineralisation
and will be followed up during the current program. The paleochannel mineralisation will also require further delineation
drilling to determine its scale but could represent a valuable source of high-grade feed for a central processing hub at
Mandilla.
The Eos area represents a potential large zone of flat-lying, high-grade mineralisation, close to surface, that extends from
Mandilla South and remains open, with historic drill-holes holes south of the Proterozoic dyke (coloured green in Figure 3)
also returning gold anomalism, including 4m at 0.82g/t Au from 44m in MNAC861.
Figure 3 – Drill collar locations on local area geology for Mandilla
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Metallurgical Testwork
On 28 January 2021, the Company announced the results of metallurgical testwork completed on samples collected from
three diamond drill holes, MDRCD151, MDRCD228 and MDRCD 236.
These holes were selected as they covered the strike length of the zones of known mineralisation, as depicted in Figure 4
below.
Figure 4 – Location of Mandilla East diamond drill holes for metallurgical testing
The metallurgical testwork results demonstrate extremely high gold recoveries, fast leach kinetics and low reagent
consumptions in both the oxide and fresh rock samples tested. The results confirmed excellent metallurgical recoveries
as tabled below:
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
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Review of Operations
In the oxide zone
Table 1 – Oxide composite metallurgical test results
Grind Size
P80 (µm)
Au Calc Head
Grade (g/t)
75
106
0.92
0.96
Au Extraction (%)
Grav
68.8
2-hr
94.4
4-hr
96.9
8-hr
96.9
24-hr
48-hr
Au Tail
Grade
(g/t)
Reagents (kg/t)
NaCN
Lime
96.9
98.4
0.02
0.32
0.32
71.1
95.5
96.3
97.0
97.0
98.4
0.02
0.21
0.21
In the fresh zone:
Table 2 – LG fresh variability composite metallurgical test results
Grind Size
P80 (µm)
Au Calc Head
Grade (g/t)
75
106
0.60
0.75
Au Extraction (%)
Grav
80.7
2-hr
94.6
4-hr
94.6
8-hr
95.8
24-hr
48-hr
Au Tail
Grade
(g/t)
Reagents (kg/t)
NaCN
Lime
95.8
95.8
0.03
0.25
0.14
66.3
91.5
94.5
95.5
95.5
97.3
0.02
0.23
0.23
Importantly, the results demonstrate that gold recoveries of over 95% can be achieved after only 8 hours of leaching with
modest reagent consumption, albeit with testing conducted using Perth tap water. This should support a conventional
process plant design with low reagent costs.
These preliminary results were followed by the main fresh composite sample and additional variability testing to confirm
that the gold can be economically extracted (refer to ASX Announcement dated 17 February 2021). The detailed results
of the main Mandilla East fresh composite and Mandilla East fresh variability composite No.2 are tabled below.
Table 3 – Fresh composite metallurgical test results
Grind Size
P80 (µm)
Au Calc Head
Grade (g/t)
75
106
1.24
0.49
Au Extraction (%)
Grav
92.6
2-hr
98.6
4-hr
98.6
8-hr
99.2
24-hr
48-hr
Au Tail
Grade
(g/t)
Reagents (kg/t)
NaCN
Lime
99.2
99.2
0.01
0.29
0.24
71.4
93.0
93.0
94.4
95.9
95.9
0.02
0.29
0.23
Table 4 –Fresh variability composite No 2 metallurgical test results
Grind Size
P80 (µm)
Au Calc Head
Grade (g/t)
Au Extraction (%)
106
0.95
Grav
81.6
2-hr
95.8
4-hr
96.6
8-hr
96.6
24-hr
48-hr
Au Tail
Grade
(g/t)
Reagents (kg/t)
NaCN
Lime
97.4
97.4
0.03
0.29
0.29
The results serve to reinforce the excellent metallurgical characteristics of Mandilla. The mineralisation continues to
demonstrate an insensitivity to grind size, very high gravity recoverable gold content, exceptionally high overall gold
recovery and low reagent consumption.
In addition, results from the viscosity determination and oxygen uptake testing have demonstrated a slurry rheology that is
more than acceptable for mixing and screening applications. The oxygen uptake test demonstrated low oxygen
consumption.
This further demonstrates the amenability of the Mandilla Gold Project to a conventional gravity and CIP processing
pathway.
Mineral Resource Estimate
The Company announced a maiden JORC compliant (2012 Edition) MRE for Mandilla on 27 May 2021. The maiden MRE
prepared in accordance with the JORC Code (2012 Edition), was prepared by independent consultants Cube Consulting.
The maiden MRE incorporating the Mandilla East and Mandilla South deposits, reported 15.6Mt at 1.0 g/t Au for 500.4koz
of contained gold.
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Following receipt of assay from a further 7,700m of drilling, the MRE was subsequently updated on 17 August 2021. The
updated MRE reported a JORC 2012 Mineral Resource Estimate of 19.8Mt at 1.0 g/t Au for 664.6koz of contained gold,
encompassing the Mandilla East and Mandilla South deposits. This too was prepared by independent consultants Cube
Consulting in accordance with the JORC Code (2012 Edition).
The significant increase in Mineral Resources was, in the most part, a result of the successful in-fill and extensional drilling
extended the mineralisation at Mandilla by 150m to the south and by 250m to the south-east.
The MRE was estimated using a 0.39 g/t Au cut-off and is constrained within pit shells using a gold price of AUD$2,500
per ounce (consistent with the maiden MRE).
The MRE is summarised in Table 5 below, with a more detailed breakdown provided in Table 6. A grade and tonnage
sensitivity is provided in Table 7.
Table 5 - Mandilla Mineral Resource Estimate (August 2021)
Mineral Resource Estimate for the Mandilla Gold Project
(Cut-Off Grade >0.39g/t Au)
Classification
Indicated
Inferred
Total
The preceding statement of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric tonnes. Minor
discrepancies may occur due to rounding to appropriate significant figures.
Ounces (koz)
324.1
340.5
664.6
Tonnes (Mt)
9.4
10.4
19.8
Grade (g/t)
1.1
1.0
1.0
Indicated
Classification
Table 6 – MRE (August 2021) Grade and Tonnage by Weathering State
Tonnes (Mt)
7.1
2.1
0.1
9.4
7.9
2.3
0.2
10.4
19.8
All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant
figures.
Ounces (koz)
260.0
56.7
3.7
324.1
280.0
57.4
3.0
340.5
664.6
Grade (g/t)
1.1
0.8
0.8
1.1
1.1
0.8
0.6
1.0
1.0
Oxidation
Fresh
Transitional
Oxidised
Total
Fresh
Transitional
Oxidised
Total
Inferred
Table 7 – MRE (August 2021) Grade and tonnage by cut-off grade
Cut-off grade (g/t Au)
0.30
0.35
0.39
0.40
0.45
0.50
Tonnes (Mt)
23.4
21.5
19.8
19.6
17.8
16.3
Grade (g/t)
0.9
1.0
1.0
1.0
1.1
1.2
Ounces (koz)
704.6
684.3
664.6
661.6
637.4
613.9
All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant
figures.
The locations of the optimised pit shells at AUD$2,500 per ounce gold price are set out in plan view in Figure 5 below,
along with the drill collar locations defined by reported gram x metre intervals.
The cross-sections referenced in this announcement are also annotated on this plan.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
15
Review of Operations
Figure 5 – Optimised pit shell on local area geology
16
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Section 1, as illustrated in Figure 6 below, shows the Mineral Resource within the optimised pit shell on a section within
the Mandilla East Main Zone. This includes hole MDRCD377, released to the ASX on 29 July 2021, which returned 64.57m
at 3.49g/t Au from 190m, 14.39m at 2.89g/t Au from 169.37m and 13.8m at 0.91g/t Au from 139.7m.
MDRCD377 returned significant zones of mineralisation at depth, which notably included laminated gold enriched veining
which is similar to, and potentially represents a deeper zone of increased enrichment currently thought to be associated
with previously-reported holes MDRCD230 (81.45m at 1.63g/t Au from 179.6m) and MDRCD191 (76.5m at 1.21g/t Au from
296m), located 170m and 260m to the south respectively.
The mineralisation in MDRCD377 and the steepening inter-ramp angles (up to 58⁰) in the fresh rock contributed to an
increase in the MRE on this section as compared to the maiden MRE.
Figure 6 – Mandilla East cross-section (refer Figure 5 for section location)
Mandilla Section 2, as illustrated in Figure 7 below, shows the mineralisation at the currently defined southern limit of high-
grade mineralisation at Mandilla East.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
17
Review of Operations
Figure 7 – Mandilla East cross-section (refer Figure 5 for section location)
It is important to note that the Mandilla East Main Zone remains open in a number of directions, including to the north-west
of MDRCD377 beneath the previously developed Mandilla West paleochannels located close to the sediment contact.
A summary of information material to the understanding of the MRE was provided in the ASX Announcement dated 17
August 2021, in compliance with the requirements of ASX Listing Rule 5.8.1.
Royalties
On 31 August 2020, the Company announced that it had reached agreement with the respective owners to eliminate all
third-party royalties1 held over Mandilla.
One of the tenements which comprises the Mandilla Gold Project, M15/633, has historically been the subject of two third-
party royalties. These third-party royalties are legacy royalties that provided for the following:
Royalty # 1: $1 per tonne of gold ore mined and treated; and
Royalty # 2: Comprising:
o 4% NSR (net smelter royalty) on gold production in excess of 100,000oz; and
o A price participation royalty of 10% of every dollar the gold price exceeds A$600 for every ounce
produced.
The consideration provided to eliminate both third-party royalties is as follows:
Royalty # 1: Issue of 1,142,588 ordinary AAR shares at a deemed issue price of $0.175 per share (nominal value
of AUD$200,000) (issued on 6 August 2020); and
Royalty # 2: Payment of cash consideration of US$400,000.
1 With the exception of the Western Australian Government gold royalty of 2.5% NSR.
18
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Current and Forward Plan
AAR has embarked on a new 55,000m drilling program across the Mandilla and Feysville projects. A RC drill rig
commenced drilling at Mandilla during mid-August. Diamond drilling is expected to commence this September Quarter and
an air-core drill rig is planned to commence during the December Quarter.
Image 5 – RC drill rig at the MGP, recommenced drilling 11 August 2021.
The planned Phase 1 drilling at Mandilla is illustrated in Figure 8 below.
As the current phase of drilling at Mandilla is completed, the rigs are expected to relocate to Feysville.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
19
Review of Operations
Figure 8 – Phase 1 planned drill collar locations on the local area geology of Mandilla
Feysville Gold Project – WA
Anglo Australian - 100% interest
Feysville is located within the Archean Kambalda Domain in the Norseman-Wiluna belt of the Eastern Goldfields Province.
Significant gold mineralisation occurs within the belt, including the 70Moz Golden Mile deposit 14km to the north and the
St Ives goldfield to the south.
20
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Feysville is interpreted to contain upthrust ultramafics, emplaced within a sequence of volcanic sediments, the Black Flag
sediment group, granitic intrusions, mafic basalts, gabbro and andesite as shown in Figure 10. Large major faulting occurs
predominately north-west, with later cross-cutting faulting in a north-east orientation.
Figure 9 - Feysville tenements relative to KCGM’s Mt Shea prospect
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
21
Review of Operations
A maiden JORC Mineral Resource Estimate for Feysville was announced on 8 April 2019. The Mineral Resource Estimate,
separately identifying Indicated and Inferred Resources for cut-off grades of 0.5, 0.8 and 1.0 g/t Au, is set out in Table 8.
Figure 10 – Feysville local area geology
Category
Cut-off Grade
Tonnage
Grade
Ounces Au
Indicated
0.5 g/t Au cut-off
2,285,000
0.8 g/t Au cut-off
1,541,000
1.0g/t Au cut-off
1,214,000
Inferred
0.5 g/t Au cut-off
0.8 g/t Au cut-off
1.0g/t Au cut-off
572,000
416,000
299,000
TOTAL
0.5 g/t Au cut-off
2,857,000
0.8 g/t Au cut-off
1,957,000
1.0g/t Au cut-off
1,513,000
1.3
1.6
1.8
1.1
1.3
1.4
1.3
1.6
1.7
Table 8: Think Big Global Mineral Resource Estimate.
95,900
80,700
71,400
20,200
17,000
13,600
116,100
97,700
85,000
22
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
The Mineral Resource Estimate for the supergene enriched gold mineralisation (which is included within the Global
estimate in Table 8) is set out in Table 9.
Category
Cut-off Grade
Tonnage
Grade
Ounces Au
Indicated
0.5 g/t Au cut-off
0.8 g/t Au cut-off
1.0 g/t Au cut-off
279,000
250,000
209,000
3.0 g/t Au cut-off
54,600
2.2
2.4
2.7
5.5
20,100
19,500
13,300
9,800
Table 9: Think Big Supergene Enriched Gold Mineral Resource Estimate (included in Global estimate in Table 8).
Current and Forward Plan
A 29,000m drilling program is planned for Feysville for the current year. Upon receipt of the necessary approvals drilling
will commence at Feysville. It is expected that initial exploration will commence with diamond drilling at Think Big to improve
the structural understanding of this target. Following this, both aircore and RC drilling will commence focusing on the higher
priority targets in the first instance.
Internal resourcing is being increased to allow exploration activities at Feysville to be progressed simultaneously with
activities at Mandilla.
Koongie Park Gold and Base Metals Project - WA
Joint Venture with AuKing Mining Limited (25% participating interest)
Summary
Koongie Park is situated in north-eastern Western Australia in the highly mineralised Halls Creek region. The Koongie Park
project comprises 10 tenements (two mining leases and eight exploration licences) representing an area of over 500km2.
In February 2021, the Company entered into an earn-in and joint venture agreement (JVA) with AuKing Mining Limited
(AKN) having the opportunity to earn up to a 75% interest in the Koongie Park Joint Venture (Joint Venture) by funding
exploration and project development studies (as stipulated below).
AKN may earn a further 25% interest in the Joint Venture by incurring expenditure of $1.5 million over an initial
period of twenty-four (24) months, including expenditure on exploration, testwork and related analysis to establish
a commercially viable processing solution for the Koongie Park oxide ores (First Earn-In Milestone).
At AKN’s election, AKN can earn a further 25% interest in the Joint Venture by incurring additional expenditure of
$1,500,000 over a subsequent twelve (12) month period, including expenditure on exploration activities and
feasibility studies with a view to establishing mining operations on the Onedin and Sandiego deposits on the
Tenements (Second Earn-In Milestone).
This expenditure is in addition to the $1m already paid by AKN to the Company during the financial year to secure an initial
25% interest in the JV. The JVA commenced on 15 June 2021, following AKN paying the remaining $900,000 to AAR and
AKN being re-quoted on the ASX.
The Company retains the right to explore for and develop gold and other precious metals deposits within Koongie Park
project area.
Koongie Park has existing JORC 2012 resources of 6.8Mt at 1.3% Cu, 4.1% Zn, 0.3g/t Au and 26g/t Ag, as outlined in
the CSA Global Independent Technical Report included in the AKN prospectus dated 9 March 2021.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
23
Review of Operations
Figure 11 – Koongie Park, Location Map.
The information relating to the Mineral Resources at the Koongie Park copper/zinc project is extracted from the
Independent Technical Report of CSA Global (the CSA Global Report), which is included in AKN’s Prospectus dated 9
March 2021 and which was lodged with ASX on 10 March 2021 (Report). The Report is available to view on the AKN
website www.aukingmining.com.
24
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
In the CSA Global Report, a full combined Mineral Resource Estimate for Koongie Park is included in Table 10 below.
Koongie Park
Zone
Cut-off
Grade
Classification
Onedin +
Sandiego
Supergene
Cu >0.8%
Transitional
and Primary
Zn Dominant
Primary
Cu >0.8%
Zn >3%
All zones
Various
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
Indicated
Inferred
TOTAL
Various
Total
Tonnes
(Mt)
0.9
0.0
1.9
0.4
3.2
0.4
6.0
0.8
6.8
Copper
(%)
2.5
1.0
2.3
1.8
0.4
0.1
1.3
1.0
1.3
Zinc
(%)
1.7
0.1
1.3
2.0
6.6
6.2
4.2
3.8
4.1
Gold
(g/t)
0.3
0.1
0.4
0.3
0.2
0.1
0.3
0.2
0.3
Silver
(g/t)
39
3
21
5
30
9
28
7
26
Table 10 – Koongie Park combined Mineral Resource Estimate
Carnilya Hill Gold Project – WA
Anglo Australian – 100% of gold rights
Carnilya Hill is located approximately 20 kilometres east-south-east of the Company’s Feysville Project and approximately
40 kilometres south-east of Kalgoorlie, Western Australia.
The Project encompasses four tenements – M26/047-049 and M26/453, representing an aggregate area of approximately
2.65 square kilometres – with rights to nickel and other minerals held by Mincor Resources NL (ASX: MCR).
A prospect named Hang Glider Hill has been outlined by Lefroy Exploration Limited (ASX: LEX) immediately north of the
Carnilya Hill tenements. The prospect comprises a surface gold geochemical anomaly where a number of gold nuggets
have been recovered.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
25
Review of Operations
Schedule of Mining Tenements
The Company reports the following interests in mining tenements in Western Australia in accordance with ASX Listing Rule
5.20.
Project (Location)
Tenement Number
Beneficial Percentage
Interest
Status
Title Registered to
Mandilla
(Western Australia)
Feysville
(Western Australia)
Koongie Park
(Western Australia)
M15/96
M15/633
E15/1404
P26/3943-3944
P26/3948-3951
P26/4051-4052
M26/846
L26/295
P26/4390
M80/276, 277
E80/4389,4766, 4957,
4960
E80/5076, 5087,
E80/5127
E80/5263
P80/1802,1803
100% gold rights only
100% gold rights only
100%
Granted
Apollo Phoenix Resources Pty Ltd
Anglo Australian Resources NL
Anglo Australian Resources NL
100%
Granted
Feysville Gold Pty Ltd
-
Pending
Feysville Gold Pty Ltd
100%
Granted
Anglo Australian Resources NL
Carnilya Hill
(Western Australia)
M26/47 - 49
M26/453
100% gold rights only Granted
Mincor Resources NL
Leonora
(Western Australia)
E37/1287
E7/1355
100%
Granted
Anglo Australian Resources NL
26
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Review of Operations
Compliance Statement
The information in this Report that relates to Estimation and Reporting of Mineral Resources is based on information
compiled by Mr Michael Job, who is a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM). Mr Job is
an independent consultant employed by Cube Consulting. Mr Job has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Mr Job consents to the inclusion in this Report of the matters based on the information in the form and
context in which it appears.
The information in this Report that relates to exploration targets and exploration results is based on, and fairly represents,
information and supporting documentation compiled by Ms Julie Reid, who is a full-time employee of Anglo Australian
Resources NL. Ms Reid is a Competent Person and a Member of The Australasian Institute of Mining and Metallurgy. Ms
Reid has sufficient experience that is relevant to the style of mineralisation and type of deposit 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 Resources and Ore Reserves’. Ms Reid consents to the inclusion in this
Report of the material based on this information, in the form and context in which it appears.
The information in this Report that relates to metallurgical test work for the Mandilla Gold Project is based on, and fairly
represents, information and supporting documentation compiled by Mr Marc Ducler, who is a full-time employee of Anglo
Australian Resources NL. Mr Ducler is a Competent Person and a Member of The Australasian Institute of Mining and
Metallurgy. The information that relates to processing and metallurgy is based on work conducted by ALS Metallurgy Pty
Ltd (ALS Metallurgy) on diamond drilling samples collected under the direction of Mr Ducler and fairly represents the
information compiled by him from the completed ALS Metallurgy testwork. Mr Ducler has sufficient experience that is
relevant to the style of mineralisation and type of deposit 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 Resources and Ore Reserves’. Mr Ducler consents to the inclusion in this Report of the material based on this
information, in the form and context in which it appears.
The information in this Report that relates to Mineral Resources for the Feysville Gold Project was first reported in
accordance with JORC 2012 on 8 Apr 2019. The Company confirms that it is not in possession of any new information or
data relating to these historical Mineral Resource estimates that materially impacts on the accuracy or reliability of these
historical estimates. The Company also confirms that all material assumptions and technical parameters underpinning the
Resource estimate continue to apply and have not materially changed.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
27
Directors’ Report
Directors’ Report
Your Directors present the following report on Anglo Australian Resources NL and its controlled entities (referred to as the
Group) for the year ended 30 June 2021.
Directors
The names of the Directors in office during the financial year and until the date of this report are as follows.
Name
Leigh Warnick
Marc Ducler
John Jones
Peter Stern
David Varcoe
Role
Non-Executive Chair
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Date of Appointment / Resignation
Appointed 23 December 2019
Appointed 23 December 2019
Appointed 9 February 1990
Appointed 28 November 2011
Appointed 28 November 2019
Principal Activities
During the financial year, the principal activities of the Group consisted of progressing the Company’s 100% owned
Mandilla Gold Project and evaluating its portfolio of tenements and projects in order to identify opportunities to maximise
value for shareholders.
There were no significant changes in the nature of the activities of the Group during the year.
Dividends
There were no dividends paid or proposed during the year.
The Consolidated Statement of Profit or Loss and other Comprehensive Income shows a net loss from continuing
operations attributable to owners of $3,669,567 for the financial year ended 30 June 2021 (2020: loss of $2,710,042).
Significant changes in the state of affairs
During the year, a total of 122,222,222 fully paid ordinary shares were issued, raising a total of $13.7 million (before
costs), comprising:
On 6 August 2020, 1,142,858 fully paid ordinary shares were issued, pursuant to an agreement to eliminate
Royalty # 1, with shares issued at a deemed issue price of $0.20 per share.
On 25 September 2020, 64,705,882 fully paid ordinary shares were issued at $0.17, pursuant to a placement to
sophisticated and professional investors to raise $11 million (before costs).
On 23 October 2020, 5,023,482 fully paid ordinary shares were issued at $0.17 per share to raise $854,000
(before costs), pursuant to a Share Purchase Plan announced on 18 September 2020.
29,800,000 fully paid ordinary shares were issued, raising a total of $596,000, pursuant to the exercise of
29,800,000 unlisted options at $0.02, expiring 30 November 2020.
10,100,000 fully paid ordinary shares were issued, raising a total of $252,500, pursuant to the exercise of
10,100,000 unlisted options at $0.025, expiring 30 November 2020.
2,500,000 fully paid ordinary shares were issued, raising a total of $100,000, pursuant to the exercise of 2,500,000
unlisted options at $0.04, expiring 30 November 2020.
8,950,000 fully paid ordinary shares were issued, raising a total of $716,000, pursuant to the exercise of 8,950,000
unlisted options at $0.08, expiring 30 November 2020.
The following additional securities were issued during the year:
On 15 July 2020, 2,382,216 Long Term Incentive (LTI) unquoted performance rights were issued to a nominee
of the Managing Director. The LTI performance rights were issued under the Company’s Employee Incentive Plan
and were approved by shareholders at the General Meeting held 16 June 2020.
On 6 August 2020, 1,250,000 unquoted options were issued as settlement of a third-party agreement. The options
are exercisable at $0.133 and expire on 31 December 2021.
On 6 August 2020, 1,250,000 unquoted options were issued as settlement of a third-party agreement. The options
are exercisable at $0.15 and expire on 31 December 2022.
On 12 October 2020, 5,760,517 LTI unquoted performance rights were issued to eligible employees. The LTI
performance rights were issued under the Company’s Employee Incentive Plan.
On 12 October 2020, 2,000,000 unquoted options were issued to a key consultant of the Company under the
Company’s Employee Incentive Plan. The options are exercisable at $0.213 and expire on 7 October 2022.
28
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
On 2 June 2021, 1,194,062 LTI unquoted performance rights were issued to eligible employees under the
Company’s Employee Incentive Plan.
On 2 June 2021, 6,000,000 unquoted options were issued as settlement of third-party agreements. The options
are exercisable at $0.34 and expire on 31 December 2022.
Other than stated above, there were no significant changes in the state of affairs of the Group during the year.
Matters subsequent to the end of the period
Date
Details
26-August-2021
Announcement of updated Mineral Resource Estimate, an increase of 33% to 665,000oz of
contained gold.
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.
There are no other matters or circumstances that have arisen since the end of the financial year which significantly affected
or may significantly affect the operations of the Group, or the state of affairs of the Group in future financial years.
Likely developments and expected results of operations
The Group will continue its mineral exploration and development activities at Mandilla and Feysville and will continue to
evaluate opportunities to extract value from its other projects.
Environmental regulation
The Group operates within the resources sector and conducts its business activities with respect for the environment while
continuing to meet the expectations of the shareholders, employees and suppliers. The Company’s exploration activities
are currently subject to significant environmental regulation under laws of the Commonwealth and Western Australia. The
Group aims to ensure that the highest standard of environmental care is achieved, and that it complies with all relevant
environmental legislation.
As at the date of this report, the Group is not aware of any significant breaches of those environmental requirements.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
29
Directors’ Report
Information on directors
Leigh Warnick
Non-Executive Chairman, Independent
Qualifications
B.A, LL.B, LL.M.
Appointed
23 December 2019
Experience
Mr Warnick is an experienced corporate and mining lawyer and a recognised expert in
corporate governance. Mr Warnick was formerly a partner of the law firms now known as
King & Wood Mallesons and Ashurst. Mr Warnick now practises as a barrister in Perth. Mr
Warnick has 20 years’ experience as a director or chairman of ASX listed companies.
Interest in Shares and Options Nil.
Current directorships
Former directorships held in
past three years
Nil.
Nil.
Marc Ducler
Qualifications
Appointed
Experience
Managing Director
BSC (Metallurgy) WASM
23 December 2019
Mr Ducler has over 21 years’ experience in the mining industry. For the past 18 years, Mr
Ducler has been in senior operational management roles with GoldFields, BHP, Fortescue
Metals, Mineral Resources and Roy Hill. Mr Ducler’s most recent role was as Managing
Director of Egan Street Resources Limited (a gold exploration and near-term developer),
until its successful takeover by Silver Lake Resources Limited (ASX: SLR).
Interest in Shares and Options Shares – 4,893,680
Performance Rights (Incentive) – 1,830,780
Performance Rights (Long Term Incentive) – 2,382,216
Current directorships
Nil.
Former directorships held in
past three years
Egan Street Resources Limited (ASX: EGA) – Managing Director
30
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Information on directors (continued)
John Jones AM
Non-Executive Director
Appointed
Experience
9 February 1990
Mr Jones is a well-known and respected mining identity, who has been associated with a
number of successful mining corporations in his 46 years of business. Mr Jones has
previously been Chairman of North Kalgurli Mines, Jones Mining and Troy Resources
Limited. He is currently a director of Altan Rio Minerals Limited (TSXV: AMO.H) and Altan
Nevada Minerals Limited (TSXV: ANE). Mr Jones has a strong prospecting instinct, clear
strategic vision and a desire for exploration, mining and corporate success. He has been
a director of the Company since 1990.
Interest in Shares and Options Shares – 68,632,177
Current directorships
Altan Rio Minerals Limited (TSXV:AMO) – Chairman
Altan Nevada Minerals Limited (TSXV:ANE) - Chairman
Former directorships held in
past three years
Tanga Resources Limited
Troy Resources Limited
Peter Stern
Non-Executive Director, Independent
Qualifications
Appointed
Experience
BSc (Hons), FAICD
28 November 2011
Mr Stern is a graduate of Monash University with a Bachelor of Science (geology
major). Mr Stern’s career has been in corporate advisory, spending six years with
Macquarie Bank and three years with both UBS and Deutsche Bank. In 2000, Mr Stern
established Metropolis Pty Ltd, a corporate advisory firm specialising in mergers and
acquisitions, capital raisings and proxy contests. Mr Stern is a Fellow of the Australian
Institute of Company Directors. Mr Stern is Non-Executive Chairman of Troy Resources
Limited.
Interest in Shares and Options Shares – 22,206,252
Current directorships
Troy Resources Limited - Chairman (Non-Executive)
Former directorships held in
past three years
Entek Energy Limited (ASX: ETE) – Non-executive director
Altan Nevada Minerals Limited (TSXV:ANE) – Non-executive director
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
31
Directors’ Report
Information on directors (continued)
David Varcoe
Non-Executive Director, Independent
Qualifications
B.Eng (Mining)
Appointed
Experience
28 November 2019
Mr Varcoe is a mining engineer with more than 31 years’ experience in the industry. Mr
Varcoe has extensive operational and managerial experience across a number of
commodities including gold, iron ore, copper, diamonds, coal, uranium and rare earths. Mr
Varcoe is experienced in board positions and operations management as well as project
management and consulting. Mr Varcoe is a principal consultant with leading Australian
firm AMC Consulting.
Interest in Shares and Options Shares – 200,000
Options - $0.135 expiring 27-Nov-22 – 3,000,000
Current directorships
Former directorships held in
past three years
Nil.
Nil.
Directors’ meetings
The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company during the
period are:
Number of
meetings director
eligible to attend
Number of
meetings director
attended
6
6
6
6
6
5
6
6
6
6
Director
Mr Leigh Warnick
Mr Marc Ducler
Mr John Jones
Mr Peter Stern
Mr David Varcoe
Company secretary
Brendon Morton was appointed as Company Secretary and Chief Financial Officer on 13 January 2020. Mr Morton holds
a Bachelor of Business Degree and is a member of both the Institute of Chartered Accountants Australia (ICAA) and the
Governance Institute of Australia (GIA). Mr Morton has previously held Company Secretarial and Chief Financial Officer
roles with both ASX listed and unlisted public and private companies.
32
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Financial position
The net assets of the consolidated Group have increased to $22,718,499 (2020: $11,489,614). The Group’s working
capital, being current assets less current liabilities was $9,307,102 at 30 June 2021 (2020: 3,182,711).
Unissued shares under option
Unissued ordinary shares of Anglo Australian Resources NL under option at the date of this report are as follows:
Tranche
Grant date
Expiry date
E
F
G
H
I
J
K
2-Dec-19
2-Dec-19
2-Dec-19
18-Mar-20
18-Mar-20
9-Oct-20
25-Sep-20
27-Nov-22
27-Nov-22
27-Nov-22
31-Dec-21
31-Dec-22
9-Oct-22
31-Dec-22
Total unlisted options on issue at the date of this report
Securities granted during the year
Exercise
price
$0.135
$0.135
$0.135
$0.133
$0.15
$0.213
$0.34
Number
1,000,000
1,000,000
1,000,000
1,250,000
1,250,000
2,000,000
6,000,000
13,500,000
Options over ordinary shares granted during the year as share based payments are as follows:
Tranche
Class of
securities
Grant date
Number of
securities
Exercise price
Expiry
date
Vesting date
J
K
Consultant Options
9-Oct-20
2,000,000
Advisor Options
25-Sep-20
6,000,000
$0.213
$0.34
9-Oct-22
Immediate1
31-Dec-22
Immediate
1 - requires the eligible employee to continue service with the Company from Grant Date.
Performance rights granted during the year as share based payments are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
E
F
G
Director performance
rights (2020C LTI)
15-Jul-20
2,382,216
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
Employee / consultant
performance rights
(2020D LTI)
Employee / consultant
performance rights
(2020D LTI)
6-Oct-20
5,760,517
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
31-May-21
1,194,062
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
Refer to Note 22 for details of these performance rights.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
33
Directors’ Report
Insurance of Officers
During the year, Anglo Australian Resources NL paid a premium to insure the directors and officers of the Group. The
contract of insurance prohibits disclosure of the nature of the liability insured and the amount of the premium.
Proceedings on behalf of the group
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of any company in the Group, or to intervene in any proceedings to which any company in the Group is a party.
No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of
the Corporations Act 2001.
Non-audit services
The Group may decide to employ its auditor on assignments additional to their statutory audit duties where the auditor’s
expertise and experience with the Group is important.
During the year there were no fees paid or payable for non-audit services provided by either auditor of the Group (2020:
nil).
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out
on the page following this Directors’ Report.
34
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Remuneration Report - Audited
The remuneration report outlines the remuneration arrangements which were in place during the year and remain in
place as at the date of this report, for the Directors and key management personnel of Anglo Australian Resources NL.
The information provided in this remuneration has been audited as required by section 308(3C) of the Corporations Act
2001.
The remuneration report is set out under the following main headings:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Key management personnel (KMP) covered in this report
Remuneration policy and link to performance
Elements of remuneration
Link between remuneration and performance
Contractual arrangements for executive KMP
Non-executive director arrangements
KMP remuneration
Other statutory information
(a) Key management personnel (KMP) covered in this report
Figure 12: Directors (executive and non-executive)
Name
Mr Leigh Warnick
Mr Marc Ducler
Mr John Jones
Mr Peter Stern
Mr David Varcoe
Mr Graeme Smith
Mr Andrew Barclay
Mr Matthew Hardisty
Mr David Sanders
Position
Chairman (from 23 December 2019)
Managing Director (from 23 December 2019)
Executive Chairman (1 July 2019 to 22 December 2019)
Non-Executive Director (from 23 December 2019)
Non-Executive Director
Non-Executive Director (from 28 November 2019)
Non-Executive Director (to 23 December 2019)
Non-Executive Director (13 December 2019 to 23 December 2019)
Non-Executive Director (13 December 2019 to 23 December 2019)
Non-Executive Director (27 November 2019 to 28 November 2019)
Figure 13: Other key management personnel
Name
Jed Whitford
Brendon Morton
Julie Reid
Position
General Manager Projects & Business Development (from 13 January 2020)
Chief Financial Officer & Company Secretary (from 24 December 2019)
Geology Manager (from 2 January 2020)
(b) Remuneration policy and link to performance
The objective of the Company’s remuneration structure is to reward and incentivise key management personnel and
employees to ensure alignment with the interests of shareholders. The remuneration structure also seeks to reward key
management personnel and employees for their contribution to the Company in a manner that is appropriate for a company
at this stage of its development.
The full Board performs the function of the remuneration committee. The Board reviews and determines remuneration
policy and structure annually to ensure it remains aligned to the Company’s needs and meets the Company’s remuneration
principles. The Board, from time to time, may engage external remuneration consultants to assist with his review.
(c) Elements of remuneration
Fixed annual remuneration
Key management personnel receive their base pay and statutory benefits structured as a total fixed remuneration (TFR)
package. Base pay for key management is reviewed annually to ensure the remuneration is competitive with the market
and remains appropriate for the Company and its operations.
There are no guaranteed base pay increases included in any employment contracts.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
35
Directors’ Report
Remuneration Report - Audited
Short term incentives
Any payment of short-term incentives is at the Board’s absolute discretion. Due to the nature of the Company’s operations
and the stage of development, the Company has not paid any short-term incentives, nor has any formal short-term incentive
scheme been adopted.
Long term incentives
Options
Options are issued at the Board’s discretion. Other than the options disclosed in section (g) of this Remuneration Report,
there were no other options issued to employees during the year. The options issued are recognised as an expense over
the vesting period.
Performance Rights
During the year, the Company issued incentive Performance Rights to key management personnel and employees. The
performance rights have nil exercise prices and have an expiry date of 30 June 2022. The Performance Rights will convert
to ordinary shares on satisfaction of performance criteria/vesting conditions as detailed in Note 22 to the Consolidated
Financial Statements.
(d) Link between remuneration and performance
Remuneration of executives consists of an un-risked element (base pay) and long-term incentives (performance rights)
which vest upon the satisfaction of performance criteria, based on key strategic, non-financial measures linked to drivers
of performance in future reporting periods. The Company did not pay any short-term incentives (e.g. cash bonuses) during
the year (2020: nil).
The Group’s summary key performance information, including earnings and movement in shareholder wealth for the five
(5) years to 30 June 2021 is included at Figure 14 below:
Figure 14: Key performance indicators
Revenue
Net profit/(loss) before tax
Net profit/(loss) after tax
Share price at start of year
Share price at end of year
Basic earnings/(loss) per share (cents)
Diluted earnings/(loss) per share (cents)
30 June 2021
30 June 2020
30 June 2019
30 June 2018
30 June 2017
82,159
66,178
(3,437,159)
(3,437,159)
(2,710,042)
(2,710,042)
0.140
0.085
(0.62)
(0.62)
0.064
0.140
(0.67)
(0.67)
6,309
(656,006)
(656,006)
0.092
0.064
(0.20)
(0.20)
5,491
(920,462)
(920,462)
0.040
0.092
(0.32)
(0.32)
15,431
(517,148)
(517,148)
0.012
0.040
(0.22)
(0.22)
(e) Contractual arrangements for executive KMP
The executive remuneration framework is summarised in the table below:
Component
Managing Director
Other Key Management Personnel
Fixed remuneration
Short term incentive (STI)
Long term incentive (LTI)
Contract duration
$271,003
Range between $238,162 and $296,194
Company may invite the employee to participate at its sole discretion
Company may invite the employee to participate at its sole discretion
Ongoing contract
Ongoing contract
Notice by the individual/company
6 months
3 months
36
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Remuneration Report - Audited
(f) Non-executive director arrangements
Fees and payments to non-executive Directors reflect the demands which are made on, and the responsibilities of, the
directors. Non-executive directors’ fees and payments are reviewed annually by the board taking into account comparable
roles and market data. The Chair’s fees are determined independently to the fees of non-executive directors based on
comparative roles in the external market.
Non-executive Directors do not receive performance-based pay.
Non-executive Directors’ fees are determined within an aggregate directors’ fee pool limit, which is periodically
recommended for approval by shareholders. The maximum currently stands at $300,000 per annum and was approved by
shareholders at the Annual General Meeting held 27 November 2017.
Additional fees
A director may also be paid fees or other amounts as the Directors determine if a director performs special duties or
otherwise performs services outside the scope of the ordinary duties of a director.
A director may also be reimbursed for out-of-pocket expenses incurred as a result of their directorship or any special duties.
Post-employment benefits
Superannuation contributions required under the Australian Superannuation Guarantee Legislation continue to be made
and are deducted from the directors’ overall fee entitlements, where applicable.
Throughout the period the following fees applied: non-executive chair $70,000 per annum; non-executive directors
$50,000 per annum.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
37
Directors’ Report
Remuneration Report - Audited
(g) KMP Remuneration
Details of the remuneration expense recognised for the Group’s key management personnel during the current and previous financial year in accordance with the requirements of the accounting
standards is included below at Figure 15.
Figure 15: Executive remuneration
Name
Executive Directors
M. Ducler
(from 23-Dec-19)
J. Jones
(to 23-Dec-19)
Other KMP
J. Whitford
(from 13-Jan-20)
B. Morton
(from 24-Dec-19)
J. Reid
(from 2-Jan-20)
Non-Executive Directors
L. Warnick
(from 23-Dec-19)
P. Stern
D. Varcoe
(from 27-Nov-19)
J. Jones
(from 23-Dec-19)
G. Smith
(to 23-Dec-19)
Total
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
2021
2020
Salary
$
248,979
117,577
-
52,635
239,079
92,067
208,662
67,825
212,625
80,853
70,000
36,720
50,000
50,000
50,000
29,167
45,662
26,075
-
23,925
1,125,007
576,844
Fixed remuneration
Variable remuneration
Performance based percentage
Post-
employment
benefits
$
Other
$
Total fixed
$
Performance
Rights
$
Options
$
Total linked to
performance
Total
remuneration
Fixed
remuneration
$
$
%
21,694
10,501
-
-
21,455
8,746
19,291
6,443
20,199
7,681
-
-
-
-
-
-
4,338
-
-
-
86,977
33,371
-
-
-
40,000
-
-
-
-
-
-
-
-
-
30,000
-
-
-
-
-
-
-
270,673
128,078
-
92,635
260,534
100,813
227,953
74,268
232,824
88,534
70,000
36,720
50,000
80,000
50,000
29,167
50,000
26,075
-
23,925
350,082
2,184
-
-
297,787
2,118
273,799
1,947
214,406
1,525
-
-
-
-
-
-
-
-
-
-
1,211,984
1,136,074
70,000
680,215
7,774
-
-
-
-
-
-
-
-
-
-
-
-
-
-
350,082
2,184
-
-
297,787
2,118
273,799
1,947
214,406
1,525
-
-
-
-
33,056
67,046
33,056
67,046
-
-
-
-
-
-
-
-
620,755
130,262
-
92,635
558,321
102,931
501,752
76,215
447,231
90,059
70,000
36,720
50,000
80,000
83,056
96,213
50,000
26,075
-
23,925
33,056
67,046
1,169,130
2,381,114
74,820
755,035
44%
98%
-
100%
47%
98%
45%
97%
52%
98%
100%
100%
100%
100%
60%
30%
100%
100%
-
100%
51%
90%
Remuneration
linked to
performance
%
56%
2%
-
0%
53%
2%
55%
3%
48%
2%
0%
0%
0%
0%
40%
70%
0%
0%
-
0%
49%
10%
38
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Remuneration Report - Audited
(h) Other statutory information
(i) Terms and conditions of the share-based payment arrangements
Performance Rights
The terms and conditions of each grant of performance rights to KMP affecting remuneration in the current or future
reporting period are as follows:
Tranche Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
2020A
Director performance
rights1
16-Jun-20
3,661,560
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
23-Jun-24
Non-transferable
2020B
Employee / consultant
performance rights2
23-Jun-20
7,809,973
Nil – performance rights vest and are converted
to ordinary shares on achievement of
performance conditions
23-Jun-24
Non-transferable
2020C
LTI
Director performance
rights (2020C LTI)
15-Jul-20
2,382,216
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
2020D
LTI
Employee / consultant
performance rights
(2020D LTI)
6-Oct-20
3,939,574
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
1 – 1,830,780 2020A Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The
2020A Performance Rights were converted to fully paid ordinary shares on 7 July 2021. In accordance with AASB 2, the remaining share-
based payment expense has been recognised at 30 June 2021.
2 – 3,904,987 2020B Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The
2020B Performance Rights were converted to fully paid ordinary shares on 7 July 2021. In accordance with AASB 2, the remaining share-
based payment expense has been recognised at 30 June 2021.
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
2020A/2020B Performance Rights
The 2020A and 2020B performance rights shall vest on the later date to occur of:
a) The date when the milestones shown in the table below are met; and
Performance / Vesting Condition and Performance Period
Extent to which
Performance Rights vest
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 500,000 ounces.1
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 1,000,000 ounces.2
50%
50%
1 – 1,830,780 2020A Performance Rights and 3,904,987 2020B Performance Rights were deemed to have met their performance
conditions (as outlined below) during the year. The 2020A Performance Rights were converted to fully paid ordinary shares on 7 July
2021. In accordance with AASB 2, the remaining share-based payment expense has been recognised at 30 June 2021.
2 – No share based payment expense has been recognised for performance rights associated with this milestone.
b)
the date when the holder gives a notice to the Company confirming that the holder would like the Performance
Rights to vest.
The performance rights issued are subject to non-market vesting conditions. The performance rights were valued based
upon the share price at the deemed grant date.
Tranche
2020A
2020B
Grant
Date
16-Jun-20
23-Jun-20
Number of Instruments
Valuation at grant date
3,661,560
7,809,973
$0.125
$0.15
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
39
Directors’ Report
2020C LTI Performance Rights
The 2020C LTI Performance Rights which do not meet the performance/vesting conditions by the end of the
performance period will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 1 January 2020.
The performance rights issued are subject to both market and non-market vesting conditions. The performance rights
were valued using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for
the performance rights.
2020D LTI Performance Rights
The 2020D LTI Performance Rights which do not meet the performance/vesting conditions by the end of the
performance period will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 1 July 2020.
40
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
Remuneration Report - Audited
The performance rights issued are subject to both market and non-market vesting conditions. The performance rights
were valued using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for
the performance rights.
Tranche
2020C LTI
2020D LTI
Grant
date
15-Jul-20
6-Oct-20
Number of Instruments
Valuation at grant date
2,382,216
3,939,574
$0.1049
$0.1218
Options
The Company did not make a grant of unquoted options to KMP during the year.
The terms and conditions of each previous grant of options affecting remuneration in the current or a future reporting
period are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Vesting Date
E
F
G
Director Options
02-Dec-19
1,000,000
$0.135
27 Nov 2022
Immediate
Director Options
02-Dec-19
1,000,000
$0.135
27 Nov 2022
27 Nov 2020
Director Options
02-Dec-19
1,000,000
$0.135
27 Nov 2022
27 Nov 2021
In order for the Director Options to vest, the Director must remain a director as at the Vesting Date.
The Options were valued using a Black Scholes Model with the following inputs:
Tranche
Valuation Date
Expected
Volatility
Risk-Free
Interest Rate
Expiry
Underlying
Share Price
E
F
G
02-Dec-19
02-Dec-19
02-Dec-19
80%
80%
80%
0.70%
0.70%
0.70%
27 Nov 2022
27 Nov 2022
27 Nov 2022
$0.088
$0.088
$0.088
Value per
Options
($)
0.0359
0.0359
0.0359
Total
Value
($)
35,909
35,909
35,909
Subject to the Board’s discretion, options shall be cancelled for nil consideration where the recipient ceases to hold
employment or office with the Company.
(ii) Reconciliation of options, deferred shares and ordinary shares held by KMP
The numbers of options over ordinary shares in the Group held during the period by each Director of Anglo Australian
Resources NL and other key management personnel of the Group, including their personally related parties, are set out
below.
Figure 16: Option holdings
Balance at beginning of
the year
Vested
and
exercis-
able
31,530,000
6,700,000
Unvested
-
-
1,000,000
2,000,000
Name
J. Jones
P. Stern
D. Varcoe
Total
39,230,000
2,000,000
Granted
as compe-
nsation
-
-
-
-
Vested
Exercised
Number
%
Number
-
-
-
-
(31,530,000)
(6,700,000)
1,000,000
33%
-
Exercise
price1
$0.028
$0.037
-
1,000,000
(38,230,000)
$0.030
Net
Change
Other
Balance at the end of
the year
Vested
and
exercis-
able
Unvested
-
-
-
-
-
-
-
-
2,000,000
1,000,000
2,000,000
1,000,000
1 – Weighted average exercise price of options, given multiple tranches of options were exercised.
The numbers of shares in the Group held during the period by each Director of Anglo Australian Resources NL and other
key management personnel of the Group, including their personally related parties are set out below. There were no
shares granted during the reporting period as compensation.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
41
Directors’ Report
Remuneration Report - Audited
Figure 17: Shareholdings
Name
Directors
Mr Leigh Warnick
Mr Marc Ducler
Mr John Jones
Mr Peter Stern
Mr David Varcoe
Other key
management
personnel
Mr Jed Whitford
Mr Brendon Morton
Ms Julie Reid
Total
Balance at the
start of the year
Capital Raising
shares
subscribed for
Share Purchase
Plan shares
subscribed for
Shares issued
upon exercise
of options
Other changes1
Balance at the
end of the year
-
2,500,000
37,102,177
15,506,252
-
100,000
310,000
100,000
55,618,429
-
-
-
-
-
-
-
-
-
-
176,470
-
-
-
58,823
117,646
117,647
470,586
-
-
-
-
386,430
3,062,900
31,530,000
6,700,000
-
-
-
-
38,230,000
-
-
68,632,177
22,206,252
200,000
200,000
63,508
71,250
(50,000)
671,188
222,331
498,896
167,647
94,990,203
1 – Includes on-market acquisitions and disposals.
There were no shares subject to escrow at 30 June 2021.
The number of performance rights over ordinary shares in the Group held during the period by each Director of Anglo
Australian Resources NL and other key management personnel of the Group, including their personally related parties,
are set out below.
Figure 18: Performance Rights
Name
Directors
Mr Marc Ducler
Other key
management
personnel
Mr Jed Whitford
Mr Brendon Morton
Ms Julie Reid
Total
Balance at the start of the year
Vested and
exercisable
Un-vested
Granted as
compensation
Exercised/
Expired
Balance at the end of the year
Vested and
exercisable
Un-vested
-
-
-
-
-
3,661,560
2,382,216
2,958,988
1,492,576
2,720,589
1,372,343
2,130,440
11,471,577
1,074,655
6,321,790
-
-
-
-
-
1,830,780
4,212,996
1,479,494
2,972,070
1,360,295
2,732,637
1,065,220
2,139,875
5,735,789
12,057,578
(iii) Key Management Personnel Loans
There were no loans to or from key management personnel outstanding at 30 June 2021 (2020: nil).
(iv) Other transactions and balances with key management personnel
Metropolis Pty Ltd, a company of which Peter Stern is a Director, received $50,000 excluding GST (2020: $105,000) during
the year for non-executive directors fees, of which $12,500 related to fees owing at 30 June 2020. An amount of $12,500
was invoiced but unpaid at 30 June 2021 (2020: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June
2021 that are not already included in the Remuneration Report contained in the Directors’ Report.
(v) Remuneration consultants
The Board may, from time to time, engage independent remuneration consultants to assist with the review of the
Company’s remuneration policy and structure to ensure it remains aligned to the Company’s needs and meets the
Company’s remuneration principles. The Company did not engage any independent remuneration consultants during the
year.
(vi) Voting of shareholders at the Company’s 2020 Annual General Meeting
The Company received more than 99% of “yes” votes on its remuneration report for the 2020 financial year. The Company
did not receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
This is the end of the Remuneration Report.
42
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Directors’ Report
This report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of Directors.
Marc Ducler
Managing Director
Perth, Western Australia
22 September 2021
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
43
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF ANGLO AUSTRALIAN
RESOURCES NL
As lead auditor of Anglo Australian Resources NL 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 Anglo Australian Resources NL and the entities it controlled during the
period.
Dean Just
Partner
BDO Audit (WA) Pty Ltd
Perth, 22 September 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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.
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
INDEPENDENT AUDITOR'S REPORT
To the members of Anglo Australian Resources NL
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Anglo Australian Resources NL (the Company) and its
subsidiaries (the Group), which comprises the consolidated balance sheet as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, 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.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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.
Accounting for Share Based Payments
Key audit matter
How the matter was addressed in our audit
During the financial year ended 30 June 2021, the
Our procedures included, but were not limited to:
Group issued options, shares and performance rights
to key management personnel and other stakeholders.
(cid:127)
Reviewing market announcements and board
minutes to identify that all new share-based
Refer to Note 1(u) of the financial report for a
payments granted during the year have been
description of the accounting policy and significant
accounted for;
estimates and judgements applied to these
arrangements and Note 22 of the financial report for
disclosure of the arrangements.
(cid:127)
Reviewing the relevant supporting documentation
to obtain an understanding of the contractual
nature and terms and conditions of the share-
Share-based payments are a complex accounting area
based payments arrangements;
and due to the complex and judgemental estimates
used in determining the fair value of the share-based
payments in accordance with AASB 2 Share Based
Payment, we consider the Group’s calculation of the
share-based payments expense to be a key audit
matter.
(cid:127)
Evaluating management’s methodology for
calculating the fair value of the share-based
payments, including assessing the valuation inputs
using internal specialists where required;
(cid:127)
Recalculating estimated fair value of the share
based payments using relevant valuation
methodologies;
(cid:127)
Assessing the allocation of the share-based
payment expense over management’s expected
vesting period;
(cid:127)
(cid:127)
Assessing management’s determination of
achieving milestones; and
Assessing the adequacy of the related disclosures
in Notes 1(u) and 22 of the financial report.
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.
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 (http://www.auasb.gov.au/Home.aspx) 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 37 to 44 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Anglo Australian Resources NL, 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 (WA) Pty Ltd
Dean Just
Director
Perth, 22 September 2021
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 30 June 2021
Revenue from continuing operations
Other income
Consultants and advisors
Corporate costs
Depreciation and amortisation expense
Employee benefit expense
Exploration expenditure not capitalised
General and administrative expenses
Impairment expense
Interest expense
Investor relations
Loss on financial liabilities settled via equity
Share based payment expense
Loss before income tax
Income tax expense
Net loss for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Other comprehensive loss for the year, net of tax
Note
2021
$
2020
$
4
5
5
5
12
6
82,159
66,178
(108,966)
(451,444)
(77,580)
(753,162)
(20,337)
(129,252)
(464,190)
(3,290)
(117,721)
(28,571)
(1,597,213)
(3,669,567)
-
(3,669,567)
(1,013,816)
(416,023)
(72,951)
(319,562)
(61,842)
(164,266)
(457,480)
(4,946)
(79,579)
(108,881)
(76,874)
(2,710,042)
-
(2,710,042)
-
-
-
-
-
-
Total comprehensive loss for the year
(3,669,567)
(2,710,042)
Total comprehensive loss attributable to equity holders of
the Company
(3,669,567)
(2,710,042)
Loss per share attributable to ordinary equity holders
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
7
7
(0.66)
(0.66)
(0.67)
(0.67)
The above consolidated statement of profit or loss and other comprehensive income is to be read in conjunction with the
accompanying notes.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
49
Consolidated Balance Sheet
Consolidated Balance Sheet
As at 30 June 2021
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation expenditure
Right of use assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Employee benefits
Lease liabilities
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2021
$
2020
$
9
10
11
12
13
14
15
16
16
17
18
19
9,807,468
75,683
9,883,151
3,401,903
307,919
3,709,822
83,015
13,227,016
58,321
13,368,353
23,251,503
369,532
161,343
45,173
576,048
18,788
99,020
117,808
693,856
22,557,647
60,002
8,281,952
101,494
8,443,448
12,153,270
407,119
62,627
57,365
527,111
46,705
89,840
136,545
663,656
11,489,614
56,409,068
2,994,375
(36,845,796)
22,557,647
43,575,908
1,089,936
(33,176,230)
11,489,614
The above consolidated statement of financial position is to be read in conjunction with the accompanying notes.
50
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the year ended 30 June 2021
Cash flows from operating activities
Other income
Payments to suppliers and employees
Net cash flows used in operating activities
Cash flows from investing activities
Exploration and evaluation expenditure
Proceeds from joint venture partner
Settlement of third-party royalty
Payments for property, plant and equipment
Interest received
Net cash flows used in investing activities
Cash flows from financing activities
Proceeds from issue of shares and options
Interest paid
Repayment of principal portion of lease liabilities
Capital raising costs
Net cash flows from financing activities
Note
20
2021
$
2020
$
129,552
(1,399,743)
(1,270,191)
(22,178)
(1,251,798)
(1,273,976)
(5,538,539)
900,000
(541,360)
(31,871)
44,659
(5,167,111)
13,518,492
-
(68,948)
(606,677)
12,842,867
6,405,565
3,401,903
9,807,468
(3,013,091)
100,000
-
(62,259)
3,678
(2,971,672)
7,528,906
(311)
(72,754)
(257,209)
7,198,632
448,919
2,952,984
3,401,903
Cash and cash equivalents at beginning of the year
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at end of the year
9
The above consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
51
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
For the year ended 30 June 2021
Issued capital
$
Share-based
payment reserve
$
Accumulated
losses
$
Total
$
Balance at 1 July 2019
Loss for the year
Total comprehensive loss for the
year
35,292,993
-
-
Transactions with owners,
directly recorded in equity:
Issue of ordinary shares (net of
costs)
Issue/vesting of performance
rights
Issue/vesting of options
Balance at 30 June 2020
8,282,915
-
-
43,575,908
916,649
-
(30,466,188)
(2,710,042)
5,743,454
(2,710,042)
-
-
9,828
163,459
1,089,936
(2,710,042)
(2,710,042)
-
-
-
8,282,915
9,828
163,459
(33,176,230)
11,489,614
Issued capital
$
Share-based
payment reserve
$
Accumulated
losses
$
Total
$
Balance at 1 July 2020
Loss for the year
Total comprehensive loss for the
year
43,575,908
-
-
Transactions with owners,
directly recorded in equity:
Issue of ordinary shares (net of
costs)
Issue/vesting of performance
rights
Issue/vesting of options
Balance at 30 June 2021
12,833,160
-
-
56,409,068
1,089,936
-
(33,176,230)
(3,669,567)
11,489,614
(3,669,567)
-
-
1,446,999
457,440
2,994,375
(3,669,567)
(3,669,567)
-
-
-
12,833,160
1,446,999
457,440
(36,845,796)
22,557,647
The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.
52
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
1. Summary of significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out below.
These policies have been consistently applied to the period presented, unless otherwise stated. These financial statements
are for the consolidated Group consisting of Anglo Australian Resources NL and its subsidiaries, together referred to as
Anglo or the Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
(a) Conceptual Framework for Financial Reporting (Conceptual Framework)
The Group has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains
new definition and recognition criteria as well as new guidance on measurement that affects several Accounting
Standards, but it has not had a material impact on the consolidated entity's financial statements.
(b) New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
(c) Basis of preparation
The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Interpretations and other authoritative pronouncements issued by the Australian Accounting
Standards Board (AASB) and the Corporations Act 2001 (Cth).
Anglo Australian Resources NL is a listed public company, incorporated and domiciled in Australia. Anglo Australian
Resources NL is a for-profit entity for the purpose of preparing the financial statements.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial
report containing relevant and reliable information about transactions, events and conditions. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International
Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of this
financial report are presented below and have been consistently applied unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
An individual entity is no longer presented as the consequence of a change to the Corporations Act 2001. Financial
information for Anglo Australian Resources NL as an individual entity is included in Note 29.
(d) Principles of consolidation
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Anglo Australian
Resources NL (‘’the Company’’ or ‘’the Parent Entity’’) as at 30 June 2021 and the results of all subsidiaries for the
period then ended. Anglo Australian Resources NL and its subsidiaries together are referred to in this financial report
as “the Group” or “the Consolidated Entity”.
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. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.
Intercompany transactions, intercompany balances and unrealised gains on transactions between Group companies
are eliminated. Unrealised losses are also eliminated unless the transaction proves evidence of the impairment of the
asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement
of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Changes in Equity, and Consolidated
Balance Sheet respectively.
(e) Going concern
This financial report has been prepared on the going concern basis, which contemplates the continuity of normal
business activity and the realisation of assets and settlement of liabilities in the normal course of business.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
53
Notes to the Consolidated Financial Statements
As at 30 June 2021, the Group had cash and cash equivalents of $9,807,468 and had net working capital of
$9,307,102. The Group incurred a loss for the year ended 30 June 2021 of $3,669,567 (30 June 2020: loss of
$2,710,042) and net cash outflows used in operating activities and investing activities totalling $6,437,302 (30 June
2020: cash outflows of $4,245,648).
On the basis of the above, the directors believe that, as at the date of this report, there will be sufficient funds available
to meet the Group’s working capital requirements.
(f) Operating segments
Operating segments are presented using the ‘management approach’, where the information presented is on the
same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM are
responsible for the allocation of resources to operating segments and assessing their performance.
(g) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade
discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is
discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference
between the amount initially recognised and the amount ultimately received is interest revenue.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the
rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been
established.
All revenue is stated net of the amount of goods and services tax (GST).
(h) Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match
them with the costs that they are intended to compensate.
(i)
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where
applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied
when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively
enacted, except for:
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint
ventures, and the timing of the reversal can be controlled and it is probable that the temporary difference
will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amounts of recognised and unrecognised deferred tax assets are reviewed at each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will
be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to
the extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable
authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.
Anglo Australian Resources NL (the 'head entity') and its wholly-owned Australian subsidiaries have formed an
income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax
consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group
has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate
to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or
assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each
subsidiary in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that
54
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting
in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
(j) Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current
classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12
months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
(k) Cash and cash equivalents
For cashflow statement presentation, cash and cash equivalents include cash on hand, deposits held at call with
financial institutions, other short-term highly liquid investments with original maturities of three months or less that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of change in rate and bank
overdrafts.
(l) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for
settlement within 30 days.
The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected
loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
(m) Property, plant and equipment
All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure
that is directly attributable to the acquisition of the items. Cost may also include transfers from equity of any gains or
losses on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is
derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.
Depreciation on assets is calculated using the straight-line method to allocate their cost or re-valued amounts, net of
their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased
plant and equipment, the shorter lease term as follows:
Vehicles: 5 - 8 years
Furniture, fittings and equipment: 3 - 8 years
Field equipment: 3 - 8 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by
comparing proceeds with carrying amount. These are included in profit or loss.
(n) Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current
is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be
recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration
activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of
the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been
abandoned, the expenditure incurred thereon is written off in the year in which the decision is made.
(o) Farm-out arrangements
The Group does not record any expenditure made by the farmee on its account. It also does not recognise any gain
or loss on its exploration and evaluation farm-out arrangements but redesignates any costs previously capitalised in
relation to the whole interest as relating to the partial interest retained. Any cash consideration received directly from
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
55
Notes to the Consolidated Financial Statements
the farmee is credited against costs previously capitalised in relation to the whole interest with any excess accounted
for by the farmor as a gain on disposal.
(p) Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost,
which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or
before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except
where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing
the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated
useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at
the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to
impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to
profit or loss as incurred.
(q)
Impairment of assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use
is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to
the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are
grouped together to form a cash-generating unit.
(r) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted.
The amounts are unsecured and are usually paid within 30 days of recognition.
(s) Contributed equity
Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities.
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. Where any Group company purchases the Company’s equity instruments, for example as
the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly
attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of Anglo
Australian Resources NL as treasury shares until the shares are cancelled or reissued. Where such ordinary shares
are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs
and the related income tax effects, is included in equity attributable to the owners of Anglo Australian Resources NL.
(t) Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the
present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit
in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments
comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index
or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when
the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease
payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are
remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate
used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability
is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying
amount of the right-of-use asset is fully written down.
(u) Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed
in the period in which they are incurred.
(v) Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event,
it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount
of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability.
The increase in the provision resulting from the passage of time is recognised as a finance cost.
56
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
(w) Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to
be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the
liabilities are settled.
Other long-term employee benefits
The liabilities for annual leave and long service leave not expected to be settled within 12 months of the reporting
date are measured at 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 corporate bonds with terms to maturity and currency that
match, as closely as possible, the estimated future cash outflows.
Share-based payments
Equity-settled share-based compensation benefits are provided to eligible employees. Equity-settled transactions are
awards of performance rights or options over shares that are provided to employees in exchange for the rendering of
services. The cost of equity-settled transactions are measured at fair value on grant date.
(i) Options
The fair values of options are independently determined using either the Binomial or Black-Scholes option pricing
models. The calculation of fair value for options takes into account the exercise price, the term of the option, the
impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not
determine whether the Group receives the services that entitle the employees to receive payment. No account is
taken of any other vesting conditions.
(ii) Performance rights
The fair value of performance rights with market-based performance and vesting criteria are independently
determined using the Hoadleys Hybrid ESO Model (a Monte Carlo simulation model). The calculation of fair value for
rights takes into account the term of the right, the share price at grant date, the expected price volatility of the
underlying share, the expected dividend yield and the risk free interest rate for the term of the right, together with
non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to
receive payment. An exercise multiple is applied based on a Hull-White Model which is considered the de facto
standard for IFRS 2 and FASB 123R compliant employee share option valuations. No account is taken of any other
vesting conditions.
The fair value of performance rights granted to employees for nil consideration under the Employee Incentive Plan is
recognised as an expense over the relevant service period, being the vesting period of the performance rights. The
fair value is measured at the grant date of the performance rights and is recognised in equity in the share-based
payment reserve.
The cost of equity-settled transactions is recognised as an expense with a corresponding increase in equity over the
vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award,
the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The
amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less
amounts already recognised in previous periods.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market
conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other
conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification had not been
made. An additional expense is recognised, over the remaining vesting period, for any modification that increases
the total fair value of the share-based compensation benefit as at the date of modification.
If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated
as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the
vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.
If an equity-settled award is cancelled, it is treated as if it has vested on the date of cancellation, and any remaining
expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the new award
is treated as a modification of the cancelled award.
(x) Fair value measurement
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
57
Notes to the Consolidated Financial Statements
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes,
the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date; and assumes that the transaction will take place
either in the principal market, or in the absence of a principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on
its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects
the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date
and transfers between levels are determined based on a reassessment of the lowest level of input that is significant
to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is
either not available or when the valuation is deemed to be significant. External valuers are selected based on market
knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to
another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and
a comparison, where applicable, with external sources of data.
(y)
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds.
(z) Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Anglo Australian Resources
NL, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary
shares and the weighted average number of shares assumed to have been issued for no consideration in relation to
dilutive potential ordinary shares.
(aa) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost
of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial
position are shown inclusive of GST.
Cash flows are presented in the Consolidated Statement of Cash Flows on a gross basis, except for the GST
components of investing and financing activities, which are disclosed as operating cash flows.
(bb) Parent entity information
The financial information for the parent entity, Anglo Australian Resources NL, disclosed in Note 29 has been
prepared on the same basis as the consolidated financial statements.
(cc) Standards and Interpretations in use not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2021. The
Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.
2. Critical accounting estimates and judgments
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts in the financial statements. Management continually evaluates its judgements and
estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its
judgements, estimates and assumptions on historical experience and on other various factors, including expectations
of future events, management believes to be reasonable under the circumstances. The resulting accounting
judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions
58
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to
the respective notes) within the next financial year are discussed below.
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.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by using either the Hoadleys Hybrid
ESO Model (a Monte-Carlo simulation model) or Black-Scholes models (as the case may be), taking into account the
terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating
to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within
the next annual reporting period but may impact profit or loss and equity. Where performance rights are subject to
vesting conditions, Management has formed judgments around the likelihood of vesting conditions being met.
Expenses recognised during the year have been calculated accordingly. Refer to Note 22 for further information.
Exploration and evaluation costs
Exploration and evaluation expenditures are those expenditures incurred in connection with the exploration for and
evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource
are demonstrable. Expenditure incurred on activities that precede exploration and evaluation of mineral resources,
including all expenditure incurred prior to securing legal rights to explore an area, is expensed as incurred.
Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. An
‘area of interest’ is an individual geological area which is considered to constitute a favourable environment for the
presence of a mineral deposit or has been proved to contain such a deposit. These costs are carried forward only if
they relate to an area of interest for which rights of tenure are current and in respect of which:
Such costs are expected to be recouped through successful development and exploitation or from sale of the
area; and
Exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable resources, and active and
significant operations in, or relating to, this area are continuing.
A regular review is undertaken in each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to each area of interest. If costs do not meet the criteria noted above, they are written off in full against
the profit or loss statement.
Impairment of exploration and evaluation assets
Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility
and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable
amount.
Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exists:
The term of the exploration licence in the specific area of interest has expired during the reporting period or will
expire in the near future, and is not expected to be renewed;
Substantive expenditure on further exploration and evaluation of mineral resources in the specific area of
interest is not budgeted or planned;
Exploration for and evaluation of mineral resources in the specific area have not led to the discovery of
commercially viable quantities of mineral resource and the decision has been made to discontinue such
activities in the specific area; or
Sufficient data exists to indicate that, although development in the specific area of interest is likely to proceed,
the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful
development or by sale.
When a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger
than the area of interest.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Employee benefits provision
As discussed in Note 1, the liability for employee benefits expected to be settled more than 12 months from the
reporting date is recognised and measured at the present value of the estimated future cash flows to be made in
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
59
Notes to the Consolidated Financial Statements
respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition
rates and pay increases through promotion and inflation have been taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land explored or mined.
The Group's mining and exploration activities are subject to various laws and regulations governing the protection of
the environment. The Group recognises management's best estimate for assets retirement obligations and site
rehabilitations in the period in which they are incurred. Actual costs incurred in the future periods could differ materially
from the estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates and
discount rates could affect the carrying amount of this provision.
3. Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Board of Directors. The Group has determined that it has one operating
segment, being mineral exploration and development.
4. Other income
Bank interest
Government grant income
2021
$
44,659
37,500
82,159
2020
$
3,678
62,500
66,178
Government grant income relates to the ATO cash boost stimulus measure introduced during the COVID-19 pandemic.
5. Expenses
Profit/(Loss) before income tax for the year includes the following specific items:
Employee benefit expense
Employee expenses (including employment related expenses)
Superannuation
Capitalised as exploration and evaluation expenditure
Total employee benefits expense
Consultants and advisors
Accounting and secretarial
Legal
Other
Total consultant and advisor costs
Corporate costs
Compliance costs
Directors’ fees (inclusive of superannuation)
Due diligence costs
Share registry costs
Total corporate costs
2021
$
1,249,294
114,263
1,363,557
(610,395)
753,162
20,398
88,568
-
108,966
75,637
265,662
77,358
32,787
451,444
2020
$
462,926
42,527
505,453
(185,891)
319,562
97,310
795,812
120,694
1,013,816
65,134
285,822
-
65,067
416,023
60
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
6.
Income tax
a) Components of income tax expense
Current tax expense
Deferred tax expense
b) Prima facie tax payable
Loss before income tax
Prima facie income tax at 26% (2020: 30%)
Tax effect of amounts not deductible in calculating taxable income
- Entertainment
- Other non-deductible expenses
- Share-based payments
- Non-assessable income
- Tax losses not recognised
Income tax expense/(benefit) attributable to loss
c) Current tax liability
Current tax relates to the following:
Current tax liabilities / (assets)
Opening balance
Income tax
Instalments paid
d) Deferred Tax
Deferred tax relates to the following:
Deferred Tax Assets (DTA) balance comprises:
Plant and equipment under lease
Accruals
Provisions – annual and long service leave
Provisions - other
Capital raising costs
Business related costs
Tax losses
Offset against Deferred Tax Liabilities / Non-recognition
Deferred Tax Liabilities balance comprises:
Prepayments
Exploration assets
Offset against Deferred Tax Assets
2021
$
2020
$
-
-
-
(3,669,567)
(893,661)
(2,710,042)
(813,013)
380
-
422,704
(9,750)
480,327
-
-
-
-
-
16,630
24,919
18,844
27,404
179,688
135,695
9,376,155
(9,779,335)
-
(3,317)
(2,645,557)
2,648,873
-
576
135,975
55,727
(18,750)
639,485
-
-
-
-
-
31,221
25,497
9,877
-
61,730
219,452
9,471,933
(9,819,710)
-
-
(2,451,934)
2,451,934
-
Net Deferred Tax
-
-
e) Deferred income tax (revenue)/expense included in income tax expenses comprises:
Decrease / (increase) in deferred tax assets
(Decrease) / increase in deferred tax liabilities
Revaluation of DTA due to change in tax rate
Under/(over) provision
Non-recognition of deferred tax assets
f) Deferred income tax related to items charged or credited directly to equity
Decrease / (increase) in deferred tax assets
(Decrease) / increase in deferred tax liabilities
Non-recognition of deferred tax assets
g) Deferred tax assets not brought to account
Temporary differences
Operating tax losses
(1,972,540)
1,334,477
982,370
(106,993)
(237,314)
157,736
-
(157,736)
-
(1,459,465)
742,817
-
-
716,648
-
77,163
-
(77,163)
-
(2,260,856)
9,376,155
7,115,298
(2,134,605)
9,471,933
7,337,329
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
61
Notes to the Consolidated Financial Statements
7. Earnings per share
Basic earnings per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares outstanding during the year.
The following reflects the income and share data used in the total operations basic and diluted earnings per share
computations:
Basic and diluted profit/(loss) per share
Basic profit/(loss) per share (cents per share)
Diluted profit/(loss) per share (cents per share)
Profit/(Loss)
Profit/(loss) used in the calculation of basic and diluted earnings per share is as
follows:
Profit/(loss)
Loss from continuing operations
Weighted average number of ordinary shares
2021
Cents
(66)
(66)
2021
$
2020
Cents
(67)
(67)
2020
$
(3,669,567)
(3,669,567)
(2,710,042)
(2,710,042)
2021
No.
2020
No.
Weighted average number of ordinary shares outstanding during the period
used in calculating basic EPS
Weighted average number of ordinary shares outstanding during the period used
in calculating diluted EPS
555,744,472
406,063,700
555,744,472
406,063,700
8. Dividends paid or proposed
The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend
to the date of this report.
9. Cash and cash equivalents
Current
Cash at bank and in hand
2021
$
2020
$
9,807,468
3,401,903
Cash at bank and in hand earns interest at both floating rates based on daily bank rates and fixed rate term deposits. The
Company notes that $13,365 (included in the Cash at bank and in hand amount) is held as a guarantee with National
Australia Bank subject to the following lease agreement:
$13,365 held as a bank guarantee for the Company’s sub-lease agreement at its premises at Suite 2, 6 Lyall
Street, South Perth.
Refer to Note 21 on financial instruments for details on the Company’s exposure to risk in respect of its cash balance.
62
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
10. Trade and other receivables
Current
Trade debtors
Rental deposits
GST receivable
Prepayments
2021
$
-
11,224
51,702
12,757
75,683
2020
$
162,500
11,223
125,931
8,265
307,919
The Group did not have any receivables that were past due as at 30 June 2021 (30 June 2020: Nil). The Group therefore
did not consider a credit risk on the aggregate balances as at 30 June 2021. For more information, please refer to Note
21.
11. Property, plant and equipment
Motor vehicles – at cost
Less: Accumulated depreciation
Plant and equipment – at cost
Less: Accumulated depreciation
2021
$
52,596
(8,390)
44,206
41,534
(2,725)
38,809
2020
$
52,596
(2,074)
50,522
9,662
(182)
9,480
Total
83,015
60,002
As at 1 July 2019
Additions
Depreciation
As at 30 June 2020
As at 1 July 2020
Additions
Depreciation
As at 30 June 2021
Motor
Vehicles
$
Plant and
equipment
$
-
52,597
(2,075)
50,522
50,522
-
(6,316)
44,206
-
9,662
(182)
9,480
9,480
31,871
(2,543)
38,809
Total
$
-
62,259
(2,257)
60,002
60,002
31,871
(8,859)
83,015
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
63
Notes to the Consolidated Financial Statements
12. Exploration and evaluation expenditure
Non-Current
Exploration and evaluation - at cost
2021
$
2020
$
13,387,868
8,281,952
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
2021
$
2020
$
Movement
Opening balance
Exploration expenditure capitalised during the year
Consideration to extinguish third-party royalties
Impairment expense
Revaluation of rehabilitation provision
Proceeds from Koongie Park Project Joint Venture partner
Closing balance
Comprised of:
Carnilya Hill Project
Feysville Project
Koongie Park Project
Leonora Project
Mandilla Project
Impairment
Feysville Project
Koongie Park Project
Leonora Project
Carnilya Hill Project
8,281,952
5,558,713
741,360
(464,190)
9,180
(900,000)
13,227,016
-
3,460,145
675,917
-
9,090,954
13,227,016
(192,691)
(252,110)
(13,753)
(5,636)
(464,190)
5,873,285
2,962,017
-
(457,480)
4,130
(100,000)
8,281,952
-
3,357,957
1,646,689
-
3,277,306
8,281,952
(230,966)
(1,791)
(224,723)
-
(457,480)
During the year, the Company assessed the carrying amount versus the recoverable amount of the areas of interest above.
On the basis that a number of tenements had been relinquished and/or there is no substantive expenditure budgeted or
planned, the Company recorded an impairment charge of $464,190 (2020: $457,480).
The Group’s exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites of
significance to Aboriginal people. As a result, exploration properties or areas within the tenements may be subject to
exploration restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify
whether such claims exist, or the quantum of such claims.
13. Non-current assets – right-of-use assets
The Group leases land and buildings for its offices and regional operating bases, with lease agreements between one to
five years with, in some cases, options to extend.
Land and buildings
Opening balance
Additions to right-of-use assets
Depreciation charge for the year
Closing balance
64
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
2021
$
2020
$
101,494
25,549
(68,722)
58,321
-
172,188
(70,694)
101,494
Notes to the Consolidated Financial Statements
14. Trade and other payables
Current
Trade payables
Accrued directors’ fees
Other payables and accruals
All amounts are expected to be settled within 12 months.
15. Employee benefits
Current
Provision for annual leave
PAYG Withholding
Superannuation payable
16. Lease liabilities
Current
Lease liability
Non-current
Lease liability
2021
$
2020
$
288,874
12,500
68,158
369,532
316,411
12,500
78,208
407,119
2021
$
105,400
40,758
15,185
161,343
2020
$
32,922
26,701
3,004
62,627
2021
$
2020
$
45,173
57,365
18,788
63,961
46,705
104,070
17. Provision for rehabilitation
A provision has been made to cover the costs of rehabilitating the Company’s areas of interest. It is not expected that
this will be required in the next 12 months.
Non-current
Feysville
Koongie Park
Mandilla
18. Issued capital
2021
$
26,800
33,240
38,980
99,020
2020
$
28,400
33,240
28,200
89,840
Ordinary shares – fully paid
589,008,384
466,786,162
56,409,068
43,575,908
2021
Shares
2020
Shares
2021
$
2020
$
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
65
Notes to the Consolidated Financial Statements
(i) Movements in ordinary share capital
Date
Details
No. of Shares
30-Jun-19 Balance
30-Jun-20 Balance
Settlement of financial liability1
Placement – September 2020
Share Purchase Plan – October 2020
Exercise of $0.02 options expiring 30-Nov-20
Exercise of $0.025 options expiring 30-Nov-20
Exercise of $0.04 options expiring 30-Nov-20
Exercise of $0.08 options expiring 30-Nov-20
Share issue costs
30-Jun-21 Closing Balance
348,744,053
466,786,162
1,142,858
64,705,882
5,023,482
29,800,000
10,100,000
2,500,000
8,950,000
-
589,008,384
Issue
Price
-
-
$0.20
$0.17
$0.17
$0.02
$0.025
$0.04
$0.08
-
$
35,292,993
43,575,908
228,571
11,000,000
853,992
596,000
252,500
100,000
716,000
(913,903)
56,409,068
1 - Includes share-based payment consideration, in which the value of share-based payment consideration is subject to the provisions of
AASB Interpretation 19 – Extinguishing Financial Liabilities with Equity Instruments. The share price at the date of settlement was $0.20
being the deemed issue price.
(ii) Terms and conditions of issued capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to
participate in 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.
(iii) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk
management is the current working capital position against the requirements of the Group to meet exploration
programs and corporate overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet
anticipated operating requirements, with a view to initiating appropriate capital raisings as required.
(iv) Unissued ordinary shares
Unissued ordinary shares of Anglo Australian Resources NL under option at the date of this report are as follows:
Tranche
Grant date
Expiry date
E
F
G
H
I
J
K
2-Dec-19
2-Dec-19
2-Dec-19
18-Mar-20
18-Mar-20
9-Oct-20
25-Sep-20
27-Nov-22
27-Nov-22
27-Nov-22
31-Dec-21
31-Dec-22
9-Oct-22
31-Dec-22
Total unlisted options on issue at the date of this report
Exercise
price
$0.135
$0.135
$0.135
$0.133
$0.15
$0.213
$0.34
Number
1,000,000
1,000,000
1,000,000
1,250,000
1,250,000
2,000,000
6,000,000
13,500,000
66
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
(v) Equity settled transactions
Settlement of Third-Party Liabilities
The Group issued 1,142,588 fully paid ordinary shares at a deemed issue price of $0.20 per share to eliminate a royalty
on tenement M15/633 which comprises the Mandilla Gold Project. The royalty entitled the holder to $1 per tonne of gold
ore mined and treated from M15/633.
Pursuant to the provisions of AASB Interpretation 19 – Extinguishing Financial Liabilities with Equity Instruments, the
royalty was extinguished based on the fair value of equity instruments issued. As a result, $28,571 was recorded as an
expense in the Consolidated Statement of Profit or Loss.
19. Share based payment reserves
Share based payment reserves
Options reserve (i)
Performance rights reserve (ii)
2021
$
2020
$
1,537,548
1,456,827
2,994,375
1,080,108
9,828
1,089,936
(i) Options reserve
The share based payment reserve recognises options and performance rights issued as share based payments. The
following options were issued during the prior year:
Options
Opening balance as at 1 July 2019
Exercise of $0.02 options expiring 30 November 2019
Options issued to director
Options issued to advisors *
30 June 2020
Number
Reserve
81,250,000
(29,900,000)
3,000,000
2,500,000
916,649
-
67,046
96,413
56,850,000
1,080,108
* The Company issued 2,500,000 unquoted options to a third party on 6 August 2020 with respect to services rendered
under an agreement (refer to Note 22). The agreement was dated 6 March 2020. Consequently, the fair value of the
options issued has been recognised as an expense prior to 30 June 2020.
Options
Number
Reserve
Opening balance as at 1 July 2020
Exercise of $0.02 options expiring 30 November 2020
Exercise of $0.025 options expiring 30 November 2020
Exercise of $0.04 options expiring 30 November 2020
Exercise of $0.08 options expiring 30 November 2020
Options issued to consultant
Options issued to advisors
Share based payment expense (options issued prior to 1 July 2020)
30 June 2021
56,850,000
(29,800,000)
(10,100,000)
(2,500,000)
(8,950,000)
2,000,000
6,000,000
-
13,500,000
1,080,108
-
-
-
-
117,159
307,225
33,056
1,465,993
(ii)
Performance rights reserve
The share-based payment reserve recognises performance rights issued as share based payments. The following
performance rights were issued during the prior year:
Performance rights
Number
Reserve
Opening balance as at 1 July 2019
Performance Rights issued to directors and employees
30 June 2020
-
14,341,709
14,341,709
-
9,828
9,828
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
67
Notes to the Consolidated Financial Statements
Performance rights
Number
Reserve
Opening balance as at 1 July 2020
Performance Rights issued to directors and employees
Share based payment expense (rights issued prior to 1 July 2020)
Performance Rights vested during the year1
30 June 2021
14,341,709
9,336,795
-
(7,170,855)
16,507,649
9,828
422,054
255,534
769,411
1,456,827
1 – 7,170,855 Performance Rights were deemed to have met their performance conditions during the year. The
Performance Rights were converted to fully paid ordinary shares on 7 July 2021. In accordance with AASB 2, the
remaining share based payment expense has been recognised at 30 June 2021.
20. Operating cash flow reconciliation
Reconciliation of operating cash flows to net profit/(loss)
Profit/(loss) for the year
Interest income reported under investment activities
Interest expense on lease liabilities
Share based payments
Legal settlement/costs – settled via equity
Depreciation expense
Impairment expense
Exploration expenditure written off
Directors’ fees taken in equity
Consultancy fees taken in equity
Loss on financial liabilities settled via equity
Change in operating assets and liabilities
Change in trade and other receivables
Change in trade and other payables
Cash flow from/(used in) operations
2021
$
2020
$
(3,669,567)
(44,659)
3,290
1,597,213
-
77,580
464,190
20,337
-
-
28,571
58,008
194,846
(1,270,191)
(2,710,042)
(3,677)
4,946
76,874
444,875
72,951
457,480
61,842
170,362
134,664
108,882
(103,824)
10,691
(1,273,976)
Non-cash financing and investing activities
During the year, the Group agreed to settle the following financing and investing costs via the issue of the following equity
securities:
On 6 August 2020, the Company issued 1,142,588 ordinary shares at a deemed issue price of $0.20 per share
(nominal value of AUD$200,000) to eliminate a third-party royalty held over tenement M15/633 of the Mandilla Gold
Project. The royalty entitled the holders to receive $1 per tonne of gold ore mined and treated from M15/633.
On 2 June 2021, 6,000,000 unquoted options were issued as settlement of third-party agreements relating to capital
raising activities. The options are exercisable at $0.34 and expire on 31 December 2022. An expense of $307,225
was recognised in the current year.
The Company incurred interest expense on lease liabilities of $3,290 (2020: $4,946).
There are no other non-cash financing and investing activities other than the above.
68
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
21. Financial risk management
Overview
This note presents information about the Group’s exposure to credit, liquidity and market risks, the objectives, policies and
processes for measuring and managing risk, and the management of capital.
The Board has overall responsibility for the establishment and oversight of the risk management framework. Management
monitors and manages the financial risks relating to the operations of the Group through regular reviews of the risks.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual
obligations resulting in financial loss to the Group. Presently, the Group undertakes mineral exploration and evaluation
activities in Australia. At the balance sheet date, there were no significant concentrations of credit risk.
Cash and cash equivalents
(i)
The Group limits its exposure to credit risk by only investing with major Australian financial institutions. All cash and
cash equivalents are held with A+ rated financial institutions (2020: A+).
Trade and other receivables
(ii)
The Group’s trade and other receivables relates to government grant income, GST refunds and rental income.
The Group has determined that its credit risk exposure on trade and other receivables is low, as all counterparties
are considered reliable. Management does not expect any of these counterparties to fail to meet their obligations.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s
maximum exposure to credit risk at the reporting date was:
Trade and other receivables
Cash and cash equivalents
Total
Carrying Amount
2021
$
75,683
9,807,468
9,883,151
2020
$
307,919
3,401,903
3,709,822
(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. The Group manages liquidity risk by maintaining adequate cash reserves from capital raisings and
by continually monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and
liabilities. As at reporting date the Group had sufficient cash reserves to meet its requirements. The Group therefore had
no credit standby facilities or arrangements for further funding in place.
The financial liabilities of the Group at reporting date were trade payables incurred in the normal course of the business
and lease liabilities. Trade payables are non-interest bearing and were due within the normal 30-60 days terms of creditor
payments. The Group does not consider this to be material to the Group and have therefore not undertaken any further
analysis of risk exposure.
The following are the contractual maturities of financial liabilities, including estimated interest payments. The carrying
amount of the Group’s financial liabilities approximate their carrying amount at reporting date.
30 June 2021
Carrying
Amount
Contractual
Cash Flows
12 Months
or Less
1-2 years
2-5 years
>5 years
Trade and other payables
Lease liabilities
Total
369,532
63,961
433,493
369,532
68,956
438,488
369,532
47,956
417,488
-
6,000
6,000
-
15,000
15,000
-
-
-
30 June 2020
Carrying
Amount
Contractual
Cash Flows
12 Months
or Less
1-2 years
2-5 years
>5 years
Trade and other payables
Lease liabilities
Total
407,119
104,070
511,589
407,119
115,500
522,619
407,119
64,200
471,319
-
30,300
30,300
-
18,000
18,000
-
3,000
3,000
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
69
Notes to the Consolidated Financial Statements
(c) Market risk
Market risk is the risk that changes in market prices, such as commodity prices, foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters.
(i)
The Group is at a stage of development where it has little or no exposure to commodity price risk.
Commodity risk
Interest rate risk
(ii)
The Group is exposed to interest rate risk (primarily on its cash and cash equivalents and any interest-bearing
liabilities), which is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest
rates on interest-bearing financial instruments. The Group does not use derivatives to mitigate these exposures.
Profile
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
Variable rate instruments
Cash and cash equivalents
Carrying Amount
2021
$
2020
$
9,807,468
3,401,903
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would not materially affect equity and profit or loss
after tax.
(d) Fair values
The carrying value of cash and cash equivalents, trade and other receivables, trade and other payables and interest-
bearing liabilities is considered to be a fair approximation of their fair values.
22. Share based payments
(a) Employee Incentive Plan
The Company’s Employee Incentive Plan (the Plan) was approved by shareholders at a general meeting held on 16 June
2020. The Plan is intended to assist the Company to attract and retain key staff, including employees or contractors. The
Board believes that grants made to eligible participants under the Plan will provide a powerful tool to underpin the
Company's employment and engagement strategy, and that the Plan will:
enable the Company to incentivise and retain existing key management personnel and other eligible employees and
contractors needed to achieve the Company's business objectives;
enable the Company to recruit, incentivise and retain additional Key Management Personnel, and other eligible
employees and contractors, needed to achieve the Company's business objectives;
link the reward of key staff with the achievement of strategic goals and the long-term performance of the Company;
align the financial interest of participants of the Plan with those of shareholders; and
provide incentives to participants under the Plan to focus on superior performance that creates shareholder value.
Under the Plan, eligible Directors, employees and contractors may be invited to subscribe for Options and Performance
Rights, in order to increase the range of potential incentives available for eligible Directors, employees and contractors.
Participation in the plan is at the Board’s discretion and no individual has a contractual right to participate in the plan or to
receive any guaranteed benefits.
Incentive securities (performance rights and options) issued under the Plan are subject to vesting and performance
conditions imposed by the Board. Incentive securities granted under the plan carry no dividend or voting rights. Only upon
satisfaction of vesting and performance conditions and conversion to ordinary shares, will these incentive securities rank
equally with all other shares.
70
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
(b) Unlisted options
Options over ordinary shares have been issued for nil cash consideration. The options cannot be transferred and will not
be quoted on the ASX. Therefore, no voting rights are attached to the options unless converted into ordinary shares. All
options are granted at the discretion of the Board. The terms and conditions of options on issue at 30 June 2021 are as
follows:
Tranche
Number
Grant Date
Expiry Date
E
F
G
H
I
J1
K
1,000,000
1,000,000
1,000,000
1,250,000
1,250,000
2,000,000
6,000,000
2-Dec-19
2-Dec-19
2-Dec-19
18-Mar-20
18-Mar-20
9-Oct-20
27-Nov-22
27-Nov-22
27-Nov-22
31-Dec-21
31-Dec-22
9-Oct-22
25-Sep-20
31-Dec-22
Total
13,500,000
1 - Options issued under the Company’s Employee Incentive Plan.
Exercise
Price
(cents)
13.50
13.50
13.50
13.30
15.00
21.30
34.00
Fair Value at
Grant Date
Vesting Date
$0.0359
$0.0359
$0.0359
$0.0346
$0.0425
$0.0586
$0.0512
2-Dec-19
27-Nov-20
27-Nov-21
18-Mar-20
18-Mar-20
9-Oct-20
25-Sep-20
There have been no alterations of the terms and conditions of the above share-based payment arrangement since grant date.
The following table illustrates the number and weighted average exercise prices of and movements in share options during
the year:
2021
2020
Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at the end of year
Exercisable at the end of year
Weighted average remaining contractual
life of options outstanding at the end of
year
Number
56,850,000
8,000,000
-
Weighted
Average
Exercise Price
$
Number
Weighted
Average
Exercise Price
$
$0.038
$0.269
-
81,250,000
5,500,000
-
(51,350,000)
$0.032
(29,900,000)
-
13,500,000
12,500,000
-
$0.239
$0.247
-
56,850,000
52,350,000
1.36 years
0.53 years
$0.028
$0.135
-
$0.02
-
$0.038
$0.034
The fair values of the equity settled share options granted are estimated as at the date of the grant using the Black-Scholes
model taking into account the terms and conditions upon which the options were granted.
The terms and conditions of each grant of unquoted options affecting share-based payment expenditure in the current or a
future reporting period are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Vesting Date
E
F
G
J
K
Director Options
02-Dec-19
1,000,000
$0.135
27 Nov 2022
Immediate
Director Options2
02-Dec-19
1,000,000
$0.135
27 Nov 2022
27 Nov 2020
Director Options2
02-Dec-19
1,000,000
$0.135
27 Nov 2022
27 Nov 2021
Consultant Options
9-Oct-20
2,000,000
$0.213
9-Oct-22
Immediate1
Advisor Options
25-Sep-20
6,000,000
$0.34
31-Dec-22
Immediate
1 - Requires the eligible employee to continue service with the Company from Grant Date until the earlier of the date of exercise
or the expiry date.
2 - In order for the Director Options to vest, the Director must remain a director as at the Vesting Date.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
71
Notes to the Consolidated Financial Statements
The Options were valued using a Black-Scholes Model with the following inputs:
Tranche
Valuation Date
Expected
Volatility
Risk-Free
Interest Rate
Expiry
Underlying
Share Price
E
F
G
J
K
02-Dec-19
02-Dec-19
02-Dec-19
9-Oct-20
25-Sep-20
80%
80%
80%
80%
85%
0.70%
0.70%
0.70%
0.35%
0.35%
27 Nov 2022
27 Nov 2022
27 Nov 2022
9-Oct-22
31-Dec-22
$0.088
$0.088
$0.088
$0.213
$0.17
Value per
Options
($)
0.0359
0.0359
0.0359
0.0586
0.0512
Total
Value
($)
35,909
35,909
35,909
117,159
307,225
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may
occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also
not necessarily be the actual outcome. No other features of options granted were incorporated into the measurement of fair
value.
(c) Performance Rights
Performance rights granted during the year as share based payments are as follows:
Tranche
Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
E
F
G
Director performance
rights (2020C LTI)
15-Jul-20
2,382,216
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
Employee / consultant
performance rights
(2020D LTI)
Employee / consultant
performance rights
(2020D LTI)
6-Oct-20
5,760,517
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
31-May-21
1,194,062
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
30-Jun-22
Non-transferable
Performance rights issued in prior periods which affect share-based payment expenditure in the current or future
reporting periods are as follows:
Tranche Class of Securities
Grant Date
Number of
Securities
Exercise Price
Expiry
Date
Disposal
Restriction
2020A
Director performance
rights1
16-Jun-20
3,661,560
Nil – performance rights vest and are
converted to ordinary shares on achievement
of performance conditions
23-Jun-24
Non-transferable
2020B
Employee / consultant
performance rights2
23-Jun-20
10,680,149
Nil – performance rights vest and are converted
to ordinary shares on achievement of
performance conditions
23-Jun-24
Non-transferable
1 – 1,830,780 2020A Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The
2020A Performance Rights were converted to fully paid ordinary shares on 7 July 2021. In accordance with AASB 2, the remaining share-
based payment expense has been recognised at 30 June 2021.
2 – 5,340,075 2020B Performance Rights were deemed to have met their performance conditions (as outlined below) during the year. The
2020B Performance Rights were converted to fully paid ordinary shares on 7 July 2021. In accordance with AASB 2, the remaining share-
based payment expense has been recognised at 30 June 2021.
The performance/vesting conditions of the respective tranches of Performance Rights are outlined below.
72
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
2020A/2020B Performance Rights
The 2020A and 2020B performance rights shall vest on the later date to occur of:
a)
the date when the milestones shown in the table below are met; and
Performance / Vesting Condition and Performance Period
Extent to which
Performance Rights vest
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 500,000 ounces.1
Automatically vest upon the Company announcing a JORC compliant
Mineral Resource of at least 1,000,000 ounces.2
50%
50%
1 – 1,830,780 2020A Performance Rights and 3,904,987 2020B Performance Rights were deemed to have met their performance
conditions (as outlined below) during the year. The 2020A Performance Rights were converted to fully paid ordinary shares on 7 July
2021. In accordance with AASB 2, the remaining share-based payment expense has been recognised at 30 June 2021.
2 – No share based payment expense has been recognised for performance rights associated with this milestone.
b)
the date when the holder gives a notice to the Company confirming that the holder would like the Performance
Rights to vest.
The performance rights issued are subject to non-market vesting conditions. The performance rights were valued based
upon the share price at the deemed grant date.
Tranche
2020A
2020B
Grant
Date
16-Jun-20
23-Jun-20
Number of Instruments
Valuation at grant date
3,661,560
7,809,973
$0.125
$0.15
2020C LTI Performance Rights
The 2020C LTI Performance Rights which do not meet the performance/vesting conditions by the end of the
performance period will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 1 January 2020.
The performance rights issued are subject to both market and non-market vesting conditions. The performance rights
were valued using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for
the performance rights.
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
73
Notes to the Consolidated Financial Statements
2020D LTI Performance Rights
The 2020D LTI Performance Rights which do not meet the performance/vesting conditions by the end of the
performance period will automatically lapse. The following performance and vesting conditions apply:
Performance/Vesting Condition and Performance Period
% Vesting
Continuous employment with the Company until 30 June 2022 and:
Total Shareholder Return < 10% p.a.
Total Shareholder Return = 10% p.a.
10% < Total Shareholder Return < 20% p.a.
Total Shareholder Return > 20% p.a.
0%
33%
33% to 100%
100%
Where for the purposes of the above table:
Total Shareholder Return is calculated in accordance with the following formula:
Total Shareholder Return (%)
=
(
SP End
SP Start
)
-
1
SP End means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 30 June 2022.
SP Start means the volume weighted average price of fully paid ordinary shares of the Company trading on the ASX on
the 30 trading days prior to 1 July 2020.
The performance rights issued are subject to both market and non-market vesting conditions. The performance rights
were valued using the Hoadley’s Hybrid ESO Model (a Monte Carlo simulation model) with implied share price targets for
the performance rights.
Tranche
2020C LTI
2020D LTI
Grant
date
15-Jul-20
6-Oct-20
Number of Instruments
Valuation at grant date
2,382,216
5,760,517
$0.1049
$0.1218
(d) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year as part of share-based expense
were as follows:
Recognised in Statement of Profit or Loss
Performance rights issued to directors and employees (current and prior year)
Options issued to director (issued in prior year)
Options issued to consultant
Recognised in Statement of Financial Position (Assets and/or Equity)
Options issued to advisors
Shares issued as consideration for extinguishment of royalty1
2021
$
1,446,999
33,056
117,158
2020
$
9,828
67,046
-
1,597,213
76,874
307,225
228,571
535,796
96,412
-
96,412
2,133,009
173,286
Includes share-based payment consideration, in which the value of share-based payment consideration is subject to the
provisions of AASB Interpretation 19 – Extinguishing Financial Liabilities with Equity Instruments.
74
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
1 - On 6 August 2020, the Company issued 1,142,588 ordinary shares at a deemed issue price of $0.175 per share (nominal
value of AUD$200,000) to eliminate a third-party royalty held over tenement M15/633 of the Mandilla Gold Project. The
royalty entitled the holders to receive $1 per tonne of gold ore mined and treated from M15/633.
23. Contingent liabilities
The Group has given a bank guarantee at 30 June 2021 of $13,365 (2020: bank guarantees of $51,365) (refer to Note
9).
24. Commitments
(a) Exploration expenditure
In order to maintain mining tenements, the economic entity is committed to meet the prescribed conditions under which
tenements were granted. These commitments may be met in the normal course of operations by future capital raisings
and/or farm-out and under certain circumstances are subject to the possibility of adjustment to the amount and timing of
such obligations or by tenement relinquishment.
30 June 2021
Mandilla
$
Feysville
$
Koongie Park1
$
Other
$
Total
$
Exploration expenditure commitments
Payable:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
139,936
512,400
398,115
22,116
24,760
-
-
-
-
42,932
32,164
-
204,983
569,325
398,115
Total
1,172,423
1 – Expenditure commitments relating to Koongie Park are to be met by AuKing Mining Limited, in accordance with the terms of the Joint
Venture Agreement.
1,050,450
46,876
75,096
-
30 June 2020
Mandilla
$
Feysville
$
Koongie Park
$
Other
$
Total
$
Exploration expenditure commitments
Payable:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Sub-total
25. Related party transactions
(a) Key management personnel
148,100
524,236
526,214
74,313
50,236
-
368,454
693,187
315,034
50,000
75,096
640,867
1,342,754
-
841,248
1,198,550
124,549
1,376,675
125,096
2,824,870
Disclosures relating to compensation of key management personnel are set out in Note 22 and in the Remuneration Report
included in the Directors’ Report. Key management personnel covered in this report are listed below in Figure 19 and
Figure 20.
Figure 19: Directors (executive and non-executive)
Name
Mr Leigh Warnick
Mr Marc Ducler
Mr John Jones
Mr Peter Stern
Mr David Varcoe
Mr Graeme Smith
Mr Andrew Barclay
Mr Matthew Hardisty
Mr David Sanders
Position
Chairman (from 23 December 2019)
Managing Director (from 23 December 2019)
Executive Chairman (1 July 2019 to 22 December 2019)
Non-Executive Director (from 23 December 2019)
Non-Executive Director
Non-Executive Director (from 28 November 2019)
Non-Executive Director (to 23 December 2019)
Non-Executive Director (13 December 2019 to 23 December 2019)
Non-Executive Director (13 December 2019 to 23 December 2019)
Non-Executive Director (27 November 2019 to 28 November 2019)
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
75
Notes to the Consolidated Financial Statements
Figure 20: Other key management personnel
Name
Jed Whitford
Brendon Morton
Julie Reid
Position
General Manager Projects & Business Development (from 13 January 2020)
Chief Financial Officer & Company Secretary (from 24 December 2019)
Geology Manager (from 2 January 2020)
(b) Compensation of KMP
The aggregate compensation paid to directors and other members of key management personnel of the Group is set out
below:
Short-term employee benefits
Post-employment long term benefits
Share based payments
Total
2021
$
1,125,007
86,977
1,169,130
2,381,114
2020
$
646,844
33,371
74,820
755,035
As required by Corporations Regulation 2M.3.03, information regarding individual Directors’ and Executives’ compensation
and equity instrument disclosures is provided in the Remuneration Report section of the Directors’ Report.
During the current period, 6,321,790 performance rights were awarded to key management personnel. See Note 22 and
the Remuneration Report for further details of these related party transactions.
Issue of Performance Rights
During the year, the following securities were issued to key management personnel:
Tranche
Class of Securities
Recipient
Grant Date
Number of
Securities
Exercise Price
Expiry Date
2020C LTI
2020D LTI
2020D LTI
2020D LTI
Director
performance
rights
Employee /
consultant
performance
rights
Employee /
consultant
performance
rights
Employee /
consultant
performance
rights
Marc Ducler
15-Jul-20
2,382,216
Jed Whitford
6-Oct-20
1,492,576
Brendon Morton
6-Oct-20
1,372,343
Julie Reid
6-Oct-20
1,074,655
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance
conditions
30-Jun-22
30-Jun-22
30-Jun-22
30-Jun-22
1 Refer to Note 22 for further details with regards to performance rights issued during the period
(c) Compensation by category of KMP
Consulting fees were paid to directors, with the exception of Mr John Jones who elected to receive his non-executive
director fees as a salary from 1 July 2020. Details of the remuneration of directors is included in the Remuneration Report
contained in the Directors’ Report.
Salaries were paid to all other key management personnel, details of which are included in the Remuneration Report
contained in the Directors’ Report.
(d) Loans to/from related parties
There were no loans to or from key management personnel outstanding at 30 June 2021 (2020: nil).
76
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
(e) Other transactions and balances with related parties
The following transactions occurred with related parties are summarised below:
Payment for goods and services
Payment for legal settlement
Equity settlement of legal settlement
Receipts for goods and services
2021
$
50,000
-
-
-
2020
$
496,161
10,000
70,000
28,605
The summary above is inclusive of the following transactions with related parties.
Metropolis Pty Ltd, a company of which Peter Stern is a Director, received $50,000 excluding GST (2020: $105,000) during
the year for non-executive directors fees, of which $12,500 related to fees owing at 30 June 2020. An amount of $12,500
was invoiced but unpaid at 30 June 2021 (2020: $12,500).
There were no other transactions and outstanding balances with key management personnel for the year ended 30 June
2021 that are not already included in the Remuneration Report contained in the Directors’ Report.
There were no other transactions and outstanding balances with other related parties for the year ended 30 June 2021.
26. Interests in Subsidiaries
(a) Parent entities
Anglo Australian Resources NL is the ultimate Australian parent entity.
(b) Subsidiaries
The consolidated financial statements include the financial statements of Anglo Australian Resources NL and the
subsidiaries listed in the following table.
2021
2020
Country of
Incorporation
% Equity
Interest
Country of
Incorporation
% Equity
Interest
Mandilla Gold Pty Ltd
Feysville Gold Pty Ltd
Koongie Park Gold Pty Ltd
Koongie Park Pty Ltd 1
1 – Incorporated on 8 October 2020.
27. Auditor’s remuneration
Australia
Australia
Australia
Australia
100
100
100
100
Australia
Australia
Australia
-
100
100
100
-
2021
$
Principal Activity
Operating subsidiary
Operating subsidiary
Operating subsidiary
Operating subsidiary
2020
$
Audit Services
Amounts received or due and receivable by BDO Audit (WA) Pty Ltd
- An audit and review of the financial reports of the Group
(including subsidiaries)
Amounts received or due and receivable by Elderton Audit Pty Ltd
- An audit and review of the financial reports of the Group
(including subsidiaries)
Non-Audit Services
Total
38,960
20,284
-
38,960
23,700
-
43,984
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
77
Notes to the Consolidated Financial Statements
28. Events after the reporting date
Date
Details
26-August-2021
Announcement of updated Mineral Resource Estimate, an increase of 33% to 665,000oz of
contained gold.
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 matters or circumstances have arisen since the end of the year which significantly affected or may significantly
affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future
financial years.
78
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
29. Parent entity information
The following details information related to the parent entity, Anglo Australian Resources NL, as at 30 June 2021. The
information presented here has been prepared using consistent accounting policies as presented in Note 1.
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Contributed equity
Reserves
Accumulated losses
Total equity
Loss after income tax *
Other comprehensive income/ (loss) for the period
Total comprehensive loss for the period
* Includes an impairment charge of $160,853 (2020: $256,014).
2021
$
9,842,392
13,341,553
23,183,945
535,290
91,008
626,298
2020
$
3,709,822
8,415,049
12,124,871
527,111
108,145
635,256
22,557,647
11,489,614
56,409,068
2,922,820
(36,774,241)
22,557,647
(3,437,159)
(3,437,159)
(3,437,159)
43,575,908
1,089,936
(33,176,229)
11,489,614
(2,735,090)
(2,735,090)
(2,735,090)
Commitments
The parent entity has $1,125,547 (2020: $2,700,322) of commitments relating to minimum exploration expenditure on its
various tenements at financial year end.
Guarantees
The parent entity has given a bank guarantee of $13,365 as at 30 June 2021 (2020: bank guarantees of $51,365) (refer
to Note 9).
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
79
Director’s Declaration
Director’s Declaration
In the Directors’ opinion:
(a) The financial statements and notes are in accordance with the Corporations Act 2001, and:
(i)
(ii)
(iii)
comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements;
give a true and fair view of the financial position as at 30 June 2021 and of the performance for the period
ended on that date of the Group; and
are in accordance with International Financial Reporting Standards issued by the International Accounting
Standards Board, as stated in Note 1 to the financial statements.
(b) There are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due
and payable.
The Directors have been given the declarations by the Managing Director and the Chief Financial Officer as required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the
Directors by;
Marc Ducler
Managing Director
Perth, Western Australia
22 September 2021
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ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
ASX Additional Information
ASX Additional Information
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual Report is set out below.
1. Shareholdings
The issued capital of the Company as at 31 August 2021 is 596,179,239 ordinary fully paid shares and 13,500,000 unlisted
options (details below). All issued ordinary fully paid shares carry one vote per share.
Ordinary Shares
Shares Range
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and above
Total
Holders
74
82
426
977
463
2,022
Units
15,641
262,516
3,461,726
37,859,399
554,579,957
596,179,239
%
0.00%
0.04%
0.58%
6.35%
93.02%
100.00%
Unmarketable parcels
There were 266 holders of less than a marketable parcel of ordinary shares.
2. Top 20 Shareholders as at 31 August 2021
#
1
2
3
4
5
Name
Porter Street Investments Pty Ltd
Braham Consolidated Pty Ltd
Braham Investments Pty Ltd
ACN 106 966 401 Pty Ltd
HSBC Custody Nominees (Australia) Limited
6 Mr Peter Andrew Stern
7
8
S Loader Pty Ltd
Citicorp Nominees Pty Limited
9 Mr Graeme Ian Smith
10
Brazil Farming Pty Ltd
11 C Thwaites Pty Ltd
12
El-Raghy Kriewaldt Pty Ltd
13 Mr Matthew Lloyd Haddon
14 D & P Buckley Pty Ltd
15
Mrs Angela Orsaris & Mr Joseph Christopher Marsili
16 Mrs Sabina Fontana
17 M & R Haddon Pty Ltd
18
19
Valbonne II
Teringa George Pty Ltd
20 M & A Isaacs Pty Ltd
Total Top 20
Total remaining holders balance
Total
Number of shares
63,949,616
30,844,420
26,366,904
24,720,588
23,645,145
17,166,667
17,161,105
11,359,897
11,200,000
11,000,000
9,460,400
7,000,000
6,582,827
5,513,829
5,254,837
4,652,956
4,433,264
4,000,000
3,956,723
3,948,263
292,217,441
303,961,798
596,179,239
%
10.73%
5.17%
4.42%
4.15%
3.97%
2.88%
2.88%
1.91%
1.88%
1.85%
1.59%
1.17%
1.10%
0.92%
0.88%
0.78%
0.74%
0.67%
0.66%
0.66%
49.01%
50.99%
100.00%
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
81
ASX Additional Information
3. Unquoted securities
There are 13,500,000 unlisted options over shares in the Company as at 31 August 2021 as follows:
Tranche
Grant date
Expiry date
E
F
G
H
I
J
K
2-Dec-19
2-Dec-19
2-Dec-19
6-Aug-20
6-Aug-20
9-Oct-20
15-Sep-20
Total unquoted options on issue
27-Nov-22
27-Nov-22
27-Nov-22
31-Dec-21
31-Dec-22
9-Oct-22
31-Dec-22
Exercise
price
$0.135
$0.135
$0.135
$0.133
$0.15
$0.213
$0.34
number
1,000,000
1,000,000
1,000,000
1,250,000
1,250,000
2,000,000
6,000,000
13,500,000
There are 16,507,649 performance rights on issue as at 31 August 2021 as follows:
Tranche Class of Securities Grant Date
Exercise Price
Expiry
Date
Number of
Securities
B
D
E
F
G
Director
performance rights
(2020A)
Employee /
consultant
performance rights
(2020B)
Director
performance rights
(2020C LTI)
Employee /
consultant
performance rights
(2020D LTI)
Employee /
consultant
performance rights
(2020D LTI)
23-Jun-20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
23-Jun-24
1,830,780
23-Jun-20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
23-Jun-24
5,340,074
15-Jul-20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30-Jun-22
2,382,216
6-Oct-20
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30-Jun-22
5,760,517
31-May-21
Nil – performance rights vest and are
converted to ordinary shares on
achievement of performance conditions
30-Jun-22
1,194,062
Total performance rights on issue
16,507,649
The names of the security holders holding more than 20% of an unlisted class of security are listed below:
Security
Options expiring 27
November 2022
Options expiring 31
December 2021
Options expiring 31
December 2022
Options expiring 9
October 2022
Options expiring 31
December 2022
Exercise
Price
Number of
options
Number of
holders
Holders with > 20%
$0.135
3,000,000
1 David John Varcoe
$0.133
1,250,000
1 CG Nominees (Australia) Pty Ltd
$0.15
1,250,000
1 CG Nominees (Australia) Pty Ltd
$0.213
2,000,000
1 Mr Edward John Baltis
$0.34
6,000,000
2
CG Nominees (Australia) Pty Ltd – 50%
Circumference Capital Ct Pty Ltd – 50%
Total
13,500,000
4. Voting rights
See Note 18 of the financial statements.
82
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
ASX Additional Information
5. Substantial shareholders at 31 August 2021
Holder
John Load Cecil Jones / Porter Street Investments Pty Ltd
Number of
shares held
68,632,177
% of issued
capital held
Date of last
notice
11.51%
6-Oct-20
Braham Investments Pty Ltd / Braham Consolidated Pty Ltd and Simon
Anthony Richard Braham
57,211,324
9.60%
7-Oct-20
6. Restricted securities subject to escrow period
There are currently no securities on issue subject to escrow.
7. On-market buyback
There is currently no on
market buyback program for any of Anglo Australian Resources NL’s listed securities.
‐
ANGLO AUSTRALIAN RESOURCES NL / ANNUAL REPORT 2021
83