Anson Resources Limited
(ABN 46 136 636 005)
Financial Report
for the Year Ended 30 June 2020
Anson Resources Limited
Index
Corporate Information
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
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2
22
23
24
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26
27
68
69
72
2020 Annual Financial Report
Corporate Information
Directors
Auditors
Anson Resources Limited
Stantons International
Level 2, 1 Walker Avenue
West Perth WA 6005
Bruce Richardson
Executive Chairman and CEO
Peter (Greg) Knox
Executive Director
Michael van Uffelen
Non-executive Director
Company Secretary
Tino Kapfumo
Registered and Principal Office
Share Registry
Level 1
35 Outram Street
West Perth, WA 6005
Automic Pty Ltd
Level 2 – 267 St Georges Tce
Perth, WA 6000
Telephone: +61 478 491 355
Telephone: 1300 288 644
Email: info@ansonresources.com
Web address: www.automicgroup.com.au
Web Address
www.ansonresources.com
ASX Code:
ASN
ABN:
46 136 636 005
2020 Annual Financial Report
1
Anson Resources Limited
Directors’ Report
Your Directors submit their report on the Group consisting of Anson Resources Limited and its controlled
entities for the year ended 30 June 2020.
Directors
The names of directors who held office during or since the end of the financial year and until the date of this
report are as follows. Directors were in office for this entire financial year unless otherwise stated.
Bruce Andrew Richardson, B.A (Hons)
Executive Chairman and CEO from 18 October 2019
Mr Richardson has a proven track record of over ten years in exploration, mining and production in public and
private companies, and over 30 years of international business experience, with a particular focus on China.
He has raised over $170 million of investment in mining projects.
He is fluent in Mandarin and has 10 years’ experience in the public sector having worked as an Australian
Trade Commissioner in the Australian Embassy in Beijing, with responsibility for the resources portfolio, and
Trade Development Director, Australian Commerce & Industry Office Taipei, Taiwan. In 2006 and 2007 Mr
Richardson worked for the Government of Western Australia as Manager China, Department of Industry and
Resources developing business and political relationships with China.
Directorships in other listed entities in the past 3 years: None
Peter (Greg) Knox, B.Sc (Geology)
Non-executive Director
Mr Knox is a qualified geologist with over 30 years of experience in the resources industry in exploration, mine
development and mining operations. He has worked on projects from grass-roots exploration through to mine
development and production and has extensive experience in gold, base metals and iron for several ASX listed
companies.
Directorships in other listed entities in the past 3 years: None
Michael van Uffelen, B.Comm, CA
Non-executive Director
Mr van Uffelen holds a Bachelor of Commerce from the University of Western Australia and is a Chartered
Accountant. He has more than 30 years accounting and finance experience gained with major accounting
firms, investment banks and public companies both in Australia and internationally.
Directorships in other listed entities in the past 3 years:
- Nanoveu Limited (14 February 2018 to present)
- Tian Poh Resources Limited (31 May 2015 to present)
Alex Grant, B.Eng. (Chemical), M.S. (Chemical Engineering)
Non-executive Director – Appointed 26 March 2019 – Resigned 31 July 2019
Mr. Grant is a co-founder of Lilac Solutions Inc, a Silicon Valley direct lithium extraction technology company.
He co-invented core families of patents on direct lithium extraction from brine, and led work on engineering
scoping studies for lithium developers, flowsheet development, and cost structure modelling.
Directorships in other listed entities in the past 3 years: None
2020 Annual Financial Report
2
Anson Resources Limited
Directors’ Report (continued)
Directors’ interests in securities of the Company and related bodies corporate
The relevant interests of each Director in the securities of Anson Resources Limited at the date of this Report
are as follows:
Bruce Richardson
Peter (Greg) Knox
Michael van Uffelen
Alexander Grant
Fully paid
ordinary shares
No.
Performance
Rights
No.
25,094,223
12,200,000
15,158,270
483,000
-
5,200,000
3,600,000
-
Company Secretary
Mr Tino Kapfumo, B.Comm CA
Mr Kapfumo holds a Bachelor of Commerce from the University of Western Australia and is a Chartered
Accountant. He has gained experience with both major and mid-tier accounting firms dealing with a wide variety
of entities including listed entities; not for profit entities and large private companies with operations both in
Australia and internationally.
Dividends
No dividends have been paid or declared since the start of the financial year and the Directors do not
recommend the payment of a dividend in respect of this financial year.
Principal Activities
The principal activities during the year of the entities within the Group were:
➢ Exploration for minerals in the State of Utah in the United States of America and the mid-west of
Western Australia;
➢ Process development primarily for the extraction of lithium, bromine, iodine and boron chemicals; and
➢ Searching for further resource projects.
Operating and financial review
Paradox Brine Project – Utah, USA
The Paradox Brine Project is prospective for the extraction of lithium, bromine, iodine and boron chemicals.
The Paradox Brine Project is located within a mature oil and gas district with brines with historically high
published concentrations of lithium. The Paradox Formation, host to these brines, is a Pennsylvanian aged
evaporite sequence deposited during multiple transgressive/regressive cycles. Following deposition, the basin
was subject to structural alteration due to the further basin development. Deep structures which developed in
this time, such as the Roberts Rupture which strikes to the north-east through the claims, potentially create a
conduit for rising heated fluids. The Paradox Formation presents the factors required for genesis of a brine
hosted lithium deposit.
2020 Annual Financial Report
3
Anson Resources Limited
Directors’ Report (continued)
The geologic model for the Paradox Basin brine aquifers has similar affinities to brine concentrations in Tertiary
aged closed evaporative basins, as well as those associated with brine aquifer hosted in older Carboniferous
and Palaeozoic sediments and commonly associated with hydrocarbon deposits.
Location:
The location of the Paradox Brine Project within the Paradox Basin is shown in Figure 1.
Figure 1: Location of the Paradox Brine Project.
Upgraded Mineral Resource:
During the period the Group upgraded its JORC Code (2012) compliant Mineral Resource estimate multiple
times building on the maiden resource announced at the end of the previous period.
The upgrades were achieved by a re-entry program and also by creating a 3D geological model that identified
that there are no geological features that limit the extent of the Mineral Resource and by conducting test work
on core and cutting samples in addition to review of geological logs from previous drilling programs to
determine “Effective Porosity” an important measurement of the recoverable brine from the clastic zones.
The Mineral Resource estimate was calculated only for the brine aquifers of Clastic Zones 17, 19, 29, 31 and
33 within the Project area. A summary table of JORC Compliant Mineral Resource Estimate is presented in
Table 1. Significant amounts of other minerals including Boron (Boric Acid, H3BO3) and Iodine (I2) have also
been estimated.
The Mineral Resource is centred within an Exploration Target of a further 365 to 700 million tonnes of brine
and does not take into account the potential replenishment of the brine zones.
The Mineral Resource could be further increased by re-entering historic holes in the western and southern
areas of the Project which are only classified as an Exploration Target due to the lack of data to date.
Figure 2 shows the Mineral Resource classification over the Project area for Clastic Zone 31.
(See announcement of 11 May 2020 titled Anson Further De-risks Paradox Brine Project).
2020 Annual Financial Report
4
Anson Resources Limited
Directors’ Report (continued)
JORC (2012) Resource Estimate:
Category
Clastic
Zone
Brine
Tonnes
Effective
Porosity
(Mt)
(%)
Li
Br
B
I
Contained (‘000t)1
(ppm)
(ppm)
(ppm)
(ppm)
LCE
Br2
Indicated
Inferred
Resource
31
31
37
74
111
Indicated
17,19,29,33
39
Inferred
17,19,29,33
191
Resource
TOTAL
230
341
14.4
175
3,909
3,867
150
16.4
172
2,987
3,056
154
34
68
173
3,292
3,324
153
102
14
14
76
73
74
3,664
3,227
3,510
3,113
3,537
3,132
54
51
44
16
74
90
143
221
364
142
670
812
192
1,176
Table 1: Paradox Brine Project JORC Resource.
1 Lithium is converted to lithium carbonate (Li2CO3) using a conversion factor of 5.32 and boron is converted to boric acid (H3BO3) using
a conversion factor of 5.72. Rounding errors may occur.
Figure 2: Plan showing the Resource classification for Clastic Zone 31.
2020 Annual Financial Report
5
Anson Resources Limited
Directors’ Report (continued)
Exploration Targets for all Clastic Zones:
In addition to the Mineral Resource, an exploration target of a further 365 - 700 million tonnes of brine grading
in the range of 50 mg/L to 300 mg/L lithium and 3,000 mg/L to 4,000 mg/L bromine was estimated for Clastic
Zones 17, 19, 29, 31 and 33, see Table 2 below. The Exploration Target occurs within the Project’s placer
claims totalling 11,373 hectares, see Figure 3 below.
Clarification Statement: An Exploration Target is not a Mineral Resource. The potential quantity and grade of
an Exploration Target is conceptual in nature. A Mineral Resource has been identified in the centre of the
Exploration Target, but there has been insufficient exploration to estimate any extension to the Mineral
Resource and it is uncertain if further exploration will result in the estimation of an additional Mineral Resource.
(See announcement of 11 May 2020 titled Anson Further De-risks Paradox Brine Project)
Category
Clastic Zone
Brine Tonnes
(Mt)
Li
(ppm)
Br
(ppm)
Min
Max
Min
Max
Min
Max
Exploration
Target
31
15
30
100
300
3,000
4,000
17, 19, 29, 33
350
670
50
300
3,000
4,000
TOTAL
365
700
Table 2: The calculated Exploration Targets for each horizon of the JORC Resource.
The Mineral Resource could be further increased by re-entering historic holes in the western and southern
areas of the Project which is only classified as an Exploration Target due to the lack of data to date. This would
result in a significant increase in the block model tonnages and grades for the additional Clastic Zones as there
has been no recorded assays in those locations.
Figure 3: Plan showing the Resource and Exploration Target areas for additional horizons.
2020 Annual Financial Report
6
Directors’ Report (continued)
Conceptual Commercial Plant Flow Sheet:
During the year as a result of the test work conducted the conceptual flow sheet for the Paradox Brine Project’s
commercial plant was updated. See Figure 4.
Anson Resources Limited
Figure 4: Simplified Commercial Plant Conceptual Flow Sheet
Test Work:
Lithium Carbonate Bulk Sample
Small-scale demonstration of the complete process to produce battery grade lithium carbonate (Li2CO3) was
conducted which produced it directly from concentrated Lithium Chloride brine via a Lithium Hydroxide
Electrolysis process (See Announcement of 12 December 2019 titled Anson Produces Lithium Carbonate Bulk
Sample).
Battery Grade Lithium Hydroxide
Veolia Water Technologies Inc. (Veolia) successfully produced battery grade lithium hydroxide monohydrate
(LiOH.H2O) using brine from the Paradox Brine Project. The grade of the composite sample was 56.2% LiOH
in dry crystal product (See Announcement of 5 March 2020 titled Anson Produces Battery Grade Lithium
Hydroxide).
Elemental bromine production
De Dietrich Process Systems GmbH (De Dietrich) successfully completed the second stage of test work to
extract bromine from brine from Anson’s Paradox Brine Project. The test work was conducted in De Dietrich’s
bromine pilot plant in Germany and achieved a yield of 90% (See Announcement of 20 December 2019 titled
Anson Bromine Piloting Successful).
De Dietrich has extensive experience in bromine plants having designed, engineered and supplied equipment
to 31 bromine projects throughout the world, most recently to companies in India.
Preliminary Economic Assessment:
During the year the Group completed its Preliminary Economic Assessment (“PEA”) for its Paradox Brine
Project. The PEA indicated a high economic viability and return on investment due to the unique nature of the
brine which flows to surface under its own pressure with high concentration of a number of minerals; including
world class bromine (Br) grades.
The strategy of taking advantage of the existing wells, utilities and other infrastructure as well as the use of
proven technology and processes; has resulted in not only decreasing the risk of the project but also lowering
capital and operating costs. (See Announcement of 5 June 2020 titled Revised Announcement – PEA Results
for Paradox Project).
Two phases were considered in the PEA, being:
a)
b)
phase 1 production of 15,000tpa of NaBr; and
phase 2 addition of a 24tpa lithium pilot plant, to finalise the design of the lithium processing plant.
2020 Annual Financial Report
7
Anson Resources Limited
Directors’ Report (continued)
Key financial highlights by phase are presented in Table 3:
PHASE
Phase 1
Phase 2
PRE-TAX
POST-TAX
NPV (7%)
US$576m
US$566m
IRR
40%
39%
NPV (7%)
US$416m
US$409m
IRR
33%
32%
Table 3: Paradox Brine Project key financial highlights
The capital cost is estimated at US$121m.
All material assumptions underpinning the production target and the forecast financial information derived
continue to apply and have not materially changed.
Yellow Cat Project – Utah, USA
The Yellow Cat Project is located 30km north of Moab, in the Thompson District, Grant Country, Utah. There
are two separate areas; the Yellowcat claims and the Yellowcat West claims. In total the project consists of 85
lode claims for a total of 708 hectares and can be reached from Moab via State Highways 191 and 50 and
then by country roads. The region is host to historic vanadium and uranium production beginning in the early
1900s.
Activities During the Year:
During the year a review of historical drilling programs was conducted in addition to prepatory work for an
exploration program.
Ajana Project – Western Australia
The Ajana Project is located in Northampton, Western Australia, a proven and established mining province for
zinc, lead and silver. The Ajana Project is adjacent to the North West Coast Highway and 130km north of
Geraldton. The prospective ground on the 222km2 of tenements E66/89 and E66/94 contain extensive areas
of graphitic schist mineralization. The Ajana area is dominated by the Proterozoic gneiss with conformable
lenses of meta-sediment, pelitic gneiss, meta-quartzite, mafic gneiss and graphitic schist known as the
Northampton Metamorphic Complex, which typically hosts high-grade graphite deposits in Western Australia
and graphite deposits worldwide.
Activities During the Year:
Following drilling programs carried out in the previous years, interpretation of data, including the acquired soil
sampling results, is ongoing to assist in planning the next stages of exploration.
JORC (2012) Resource Estimate:
The 100% owned Mary Springs tenement, E66/94, contains a JORC 2012 Mineral Resource estimate for lead
and is summarised in Table 4. The Ore Block Modelling and the interpretative work was carried out using a
1% lead cut-off.
Category
Indicated
Inferred
Total
BCM
Tonnes % Pb BCM
Tonnes % Pb BCM
Tonnes % Pb
+ 1% Pb
80,000
240,000
6.6
50,000
150,000
6.2
130,000
390,000
6.5
Table 4: Mary Springs Mineral Resource Estimate, JORC 2012.
Zones of Pb-Zn-Cu-Ag rich mineralisation were intersected in drilling which has yet to be modelled into the
resource. Additionally, further drilling may enable the zinc, copper and silver bearing zones to be modelled as
part of a future resource.
2020 Annual Financial Report
8
Anson Resources Limited
Directors’ Report (continued)
Hooley Wells Nickel-Cobalt Laterite – Western Australia
The Hooley Wells Nickel-Cobalt Laterite Project is located 800km north of Perth and 300km east of Geraldton
in Western Australia. Tenement E9/2218 and E9/2219 contain historical shallow drilling which has intersected
nickel and cobalt laterites.
The project contains extensive cobalt mineralisation over an area of 1.5km * 0.8km. Results of some historic
drilling are shown below.
• HAC004, 22m @ 0.97% Ni & 0.06% Co & 1.05% Cr
o
Incl. 4m @ 1.41% Ni & 0.11% Co & 1.99% Cr
• HAC003, 33m @ 0.5% Ni & 0.04 % Co & 0.55% Cr
o
Incl. 8m @ 0.84% Ni & 0.10% Co & 0.22% Cr
Bull Nickel-Copper-PGE Project – Western Australia
During the year the Group acquired the Bull Ni-Cu-PGE Project. The project is located only 35km from Perth
with access to all major infrastructure requirements and is 12km south west along strike of the Julimar Ni-Cu-
PGE high grade discovery.
The pending exploration licence application covers an area of 56km2 and is underlain by magnetic features
that are similar to the Julimar discovery. The project area has not been previously explored for Nickel-Copper-
Platinum Group Elements (PGE).
COVID-19
Beginning in February 2020, governments worldwide issued increasingly stringent orders to contain the spread
of COVID-19, including shelter-in-place orders and travel bans. In response to this Anson ceased travel for all
employees. The Group however continued to operate at full capacity including enacting necessary precautions
for essential staff attending offices in accordance with local restrictions, which also included some staff working
from home at times. The continued safe operation of the Group during this period allowed the completion and
publication of the PEA, resulting in the project advancing despite uncertain and difficult operating conditions.
As a result of the uncertain environment and despite Australian Government COVID-19 measures to improve
liquidity being received by Anson, the board and management accepted voluntary reductions in remuneration
effective 1 April 2020 for the duration of the financial year. This reduction of remuneration was accepted even
though there was no reduction in working hours, while there was increased complexity in delivering the
upgraded JORC Resource and PEA in the United States during the pandemic. Refer to the remuneration report
for further details.
The COVID-19 pandemic is a new risk to human health and is a concern the Anson Board takes seriously and
is confident appropriate procedures are in place to navigate the Group through this period.
Government assistance during the year as a result of the pandemic amounted to $51,237.
Operating results for the year
Net loss attributable to equity holders of the parent for the year ended 30 June 2020 was $3,596,915 (2019:
loss of $6,179,749) of which $1,055,559 (2019: $3,872,050) was spent on exploration and evaluation activities
and $193,388 (2019: $317,325) was incurred in acquiring projects. The loss per share was 0.60 cents (2019:
loss of 1.25 cents).
Cash on hand at 30 June 2020 totalled $0.568 million (2019: $1.855 million).
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the Group during the financial year.
Significant events after balance date
On 15 July 2020 the Company announced it had closed its Share Purchase Plan (SPP) and had received
$1.045 million in valid acceptances.
On 18 July 2020, 15,816,819 unlisted options with an exercise price of 20 cents per option expired unexercised.
On 22 July 2020 the Company announced it has received firm commitments to raise $0.9 million (before costs)
in its Top Up Placement (Placement).
On 22 July 2020 Anson announced 1,800,000 shares were issued upon the vesting of performance rights,
being the completion of the PEA for the Paradox Brine Project.
2020 Annual Financial Report
9
Anson Resources Limited
Directors’ Report (continued)
Significant events after balance date (continued)
On 24 July 2020 the Company announced it had completed its Placement raising $1.160 million (before costs)
and a combined $2.205 million (before costs) from the SPP and Placement.
On 10 September 2020 the Company announced that a Plan of Operations (PoO) had been submitted to the
USA Federal Government, Bureau of Land Management (BLM) for the re-entry of two additional wells.
On 21 September 2020 the Company announced the results of a review of historical data from the Ajana
project and the intention to commence an initial low-cost base metals exploration program.
Other than the above there has not arisen in the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors
of the Company, to affect significantly the operations of the Group and the results of those operations.
Likely developments and expected results
Likely developments, future prospects and business strategies of the operations of the Group and the expected
results of those operations have not been included in this report as the Directors believe that the inclusion of
such information would likely to result in unreasonable prejudice to the Group.
Environmental legislation
The Group’s projects are subject to the respective laws and regulations regarding environmental matters and
the discharge of hazardous wastes and materials in the countries in which the projects are located.
As with all exploration, these projects would be expected to have a variety of environmental impacts should
development proceed.
The Group intends to conduct its activities in an environmentally responsible manner and in accordance with
applicable laws and industry standards. Areas disturbed by the Group’s activities will be rehabilitated as
required by the respective laws and regulations.
Share Options and Performance Rights
Options and performance rights granted
The following options and performance rights were granted since the end of the previous financial year:
Class
Grant Date
Expiry Date
Unlisted Options
Unlisted Options
12 Nov 2019
10 Sept 2021
24 June 2020
30 June 2023
Performance Rights
12 Nov 2019
16 Feb 2027
Exercise
Price
$0.06
$0.035
Nil
Number Issued
10,000,0000
62,500,000
16,600,000
Options exercised and performance rights converted
There were no options exercised or performance rights converted during the year ended 30 June 2020.
The following Performance rights have been converted to fully paid ordinary shares since 30 June 2020 to
the date of this report.
Class
Grant Date
Expiry Date
Exercise
Price
Performance Rights
12 Nov 2019
16 Feb 2027
Nil
Number
Converted
1,800,000
2020 Annual Financial Report
10
Anson Resources Limited
Directors’ Report (continued)
Options and performance rights expiry
Options and performance rights on issue
At the date of this report, unissued ordinary shares of the Company under option and performance rights yet
to convert are:
Class
Grant Date
Expiry Date
Exercise
Price
Number of
Options/rights
Unlisted Options
17 May 2019
16 May 2022
$0.087
11,514,105
Unlisted Options
12 Nov 2019
10 Sep 2021
$0.06
10,000,000
Unlisted Options
24 June 2020
30 June 2023
$0.035
62,500,000
Performance rights
20 April 2018
18 April 2025
Performance rights
30 November 2018
29 November 2023
Performance rights
12 Nov 2019
16 Feb 2027
Nil
Nil
Nil
4,800,000
1,400,000
14,800,000
These options and rights do not entitle the holder to participate in any share issue of the Company or any other
entity.
Subsequent to the end of the financial year 15,618,819 options with an exercise price of 20 cents per option
expired unexercised on 18 July 2020.
Indemnification and insurance of Directors and Officers
The Company has agreed to indemnify directors and executive officers against all liabilities to another person
(other than the Company or related body corporate) that may arise from their position as officers of the
Company and its controlled entities, except where the liability arises out of conduct involving a lack of good
faith. The agreement stipulates that the Company will meet the full amount of any such liabilities, including
costs and expenses.
No indemnity has been paid in respect of auditors of the Group.
Directors’ Meetings
The number of meetings of Directors held during the financial year and the number of meetings attended by
each Director was as follows:
Name
B Richardson
G Knox
M van Uffelen
A Grant
Number of meeting
eligible to attend
6
6
6
-
Number of meetings
attended
6
6
6
-
Auditor Independence and Non-Audit Services
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 22.
Non-Audit Services
The Company’s auditor, Stantons International, did not provide any non-audit services to the Company during
the year.
Proceedings on Behalf of the Company
There are no proceedings on behalf of the Company under section 237 of the Corporations Act 2001 in the
financial year or at the date of this report.
2020 Annual Financial Report
11
Anson Resources Limited
Directors’ Report (continued)
Forward Looking Statements: Statements regarding plans with respect to the Group’s mineral projects are
forward looking statements. There can be no assurance that the Group’s plans for development of its projects
will proceed as expected and there can be no assurance that the Group will be able to confirm the presence
of mineral deposits, that mineralisation may prove to be economic or that a project will be developed.
Competent Person’s Statement 1: The information in this Financial Report that relates to exploration results;
exploration target and geology is based on information compiled and/or reviewed by Mr Greg Knox, a member
in good standing of the Australasian Institute of Mining and Metallurgy. Mr Knox is a geologist who has
sufficient experience which is relevant to the style of mineralisation 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 and consents to the inclusion in
this report of the matters based on information in the form and context in which they appear. Mr Knox has
reviewed and validated the metallurgical data and consents to the inclusion in this Announcement of this
information in the form and context in which it appears. Mr Knox is a director of Anson Resources Limited and
an employee of A1 Lithium Inc.
Competent Person’s Statement 2: The information contained in this Financial Report relating to Exploration
Results; exploration target and Mineral Resource Estimates has been prepared by Mr Richard Maddocks, MSc
in Mineral Economics, BSc in Geology and Grad Dip in Applied Finance. Mr Maddocks is a Fellow of the
Australasian Institute of Mining and Metallurgy (111714) with over 30 years of experience. Mr Maddocks 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 Maddocks is an independent consultant to Anson Resources Ltd. Mr Maddocks consents to the inclusion
in this announcement of this information in the form and context in which it appears. The information in this
announcement is an accurate representation of the available data from exploration at the Paradox Brine
Project.
Information is extracted from reports entitled ‘Anson Obtains a Lithium Grade of 235ppm at Long Canyon No
2’ created on 1 April 2019, ‘Anson Estimates Exploration Target For Additional Zones’ created on 12 June
2019, ‘Anson Estimates Maiden JORC Mineral Resource’ created on 17 June 2019, ‘Anson Re-enters Skyline
Well to Increase Br-Li Resource’ created on 19 September 2019, ‘Anson Confirms Li, Br for Additional Clastic
Zones’ created on 23 October 2019 and all are available to view on the ASX website under the ticker code
ASN.
The Group confirms that it is not aware of any new information or data that materially affects the information
included in the original market announcement and, in the case of estimates of Mineral Resources or Ore
Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant
market announcement continue to apply and have not materially changed. The Group confirms that the form
and context in which the Competent Person’s findings are presented have not been materially modified from
the original market announcement.
2020 Annual Financial Report
12
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited)
This remuneration report for the year ended 30 June 2020 outlines remuneration arrangements of the
Company and the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its
regulations. This information has been audited as required by section 308(3C) of the Act.
The remuneration report details the remuneration arrangements for key management personnel (KMP) who
are defined as those persons having authority and responsibility for planning, directing and controlling the
major activities of the Company and the Group, directly or indirectly, including any director (whether executive
or otherwise) of the parent company, and including the executives in the Parent and the Group receiving the
highest remuneration.
For the purposes of this report, the term “executive” includes the executive directors, Chief Executive Officer
(CEO), Chief Finance Officer (CFO) and other senior management of the Company.
Individual key management personnel disclosures
The following were key management personnel of the Group at any time during the financial year and unless
otherwise indicated were key management personnel for the entire year:
(i) Directors
B Richardson Executive Chairman and Chief Executive Officer
G Knox
M van Uffelen Non-executive Director
A Grant
Executive Director
Non-executive Director (appointed on 26 March 2019 – resigned 31 July 2019)
(ii) Executives
T Kapfumo
Company Secretary (appointed 6 May 2019)
The Remuneration Report is set out under the following main headings:
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Principles used to determine the nature and amount of remuneration
Details of remuneration for the year ended 30 June 2020
Details of remuneration for the year ended 30 June 2019
Service agreements
Share-based compensation
Option holdings of key management personnel
Share holdings of key management personnel
Loans to key management personnel
Other transactions and balances with key management personnel
Use of remuneration consultants
Voting and comments made at the Company’s 2019 Annual General Meeting
The information provided under headings A-I includes remuneration disclosures that are required under
Accounting Standard AASB 124 Related Party Disclosures. These disclosures have been transferred from
the financial report and have been audited.
This report outlines the remuneration arrangements in place for Directors and executives of Anson Resources
Ltd and its controlled entities (the “Company” and the “Group”).
2020 Annual Financial Report
13
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
A.
Principles used to determine the nature and amount of remuneration
Remuneration philosophy
The performance of the Group depends upon the quality of its directors and executives. To prosper, the Group
must attract, motivate and retain highly skilled directors and executives.
To this end, the Group embodies the following principles in its compensation framework:
• Provide competitive rewards to attract high calibre executives;
•
• Significant portion of executive compensation ‘at risk’, dependent upon meeting pre-determined
Link executive rewards to shareholder value;
performance benchmarks; and
• Establish appropriate, demanding performance hurdles in relation to variable executive compensation
Remuneration consists of fixed remuneration and variable remuneration.
Fixed Remuneration
Fixed remuneration is reviewed annually by the Board of Directors. The process consists of a review of relevant
comparative remuneration in the market and internally and, where appropriate, external advice on policies and
practices.
Variable Remuneration
For the purposes of assisting in incentivising the board and management, an employee share plan was
introduced in 2013 under which loan funded shares and performance rights have been issued. Given the
current structure of that plan, there exists a direct link between the creation of shareholder wealth performance
and the financial rewards for Directors and key management personnel.
Remuneration Reviews
The Board of Directors of the Company is responsible for determining and reviewing compensation
arrangements for the directors, the Executive Chairman and CEO and all other key management personnel.
The Board of Directors assesses the appropriateness of the nature and amount of compensation of key
management personnel on a periodic basis by reference to relevant employment market conditions with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and
executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of non-executive director and executive
remuneration is separate and distinct.
Non-executive Director remuneration
The Board seeks to set aggregate remuneration at a level that provides the Company with the ability to attract
and retain directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
2020 Annual Financial Report
14
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors
shall be determined from time to time by a general meeting. The amount of aggregate remuneration sought to
be approved by shareholders and the manner in which it is apportioned amongst directors is reviewed annually.
The Board considers advice from external shareholders as well as the fees paid to non-executive directors of
comparable companies when undertaking the annual review process. Non-executive directors receive a fee
for being a director of the Company. The compensation of non-executive directors for the year ended 30 June
2020 is detailed below.
Senior Manager and Executive Director remuneration
Objective
The entity aims to reward executives with a level and mix of compensation commensurate with their position
and responsibilities within the entity so as to:
•
•
•
•
reward executives for company, business unit and individual performance against targets set to
appropriate benchmarks;
align the interests of executives with those of shareholders;
link rewards with the strategic goals and performance of the company; and
ensure total compensation is competitive by market standards.
Compensation consists of the following key elements:
•
•
Fixed Compensation; and
Variable Compensation - Long Term Incentive (LTI).
The proportion of fixed compensation and variable compensation (potential short term and long term
incentives) is established for each key management person by the Directors.
Fixed Compensation
Objective
Fixed compensation is reviewed annually by the Directors. The process consists of a review of individual
performance, relevant comparative compensation in the market and internally and, where appropriate, external
advice on policies and practices.
Structure
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash
and fringe benefits such as motor vehicles and expense payment plans.
Variable Pay — Long Term Incentive (LTI)
Objective
The objective of the LTI plan is to reward executives in a manner that aligns this element of compensation with
the creation of shareholder wealth. As such LTI grants are only made to executives who are able to influence
the generation of shareholder wealth and thus have a direct impact on the Group's performance against the
relevant long term performance hurdle.
Structure
LTI grants to key management personnel are delivered in the form of loan funded share plans, options and
performance rights.
2020 Annual Financial Report
15
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
B.
Details of remuneration for the year ended 30 June 2020
Salary &
Fees(i)
Non
monetary
benefits(ii) Superannuation
Share-based
payments(iii)
Total(iv)
Proportion of
remuneration
performance
related
%
Directors
Non-executive
M van Uffelen (v)
A Grant (vi)
Executive
B Richardson (vii)
P G Knox (vii)
Total Directors
Other KMPs
T Kapfumo
166,527
31,624
409,402
187,179
794,732
123,390
Total other KMPs
123,390
-
-
38,530
-
38,530
3,470
-
-
3,470
6,940
66,879
-
236,876
31,624
187,475
83,687
635,407
274,336
338,041
1,178,243
4,514
4,514
11,723
11,723
-
-
139,627
139,627
Total KMPs
918,122
43,044
18,663
338,041
1,317,870
28
-
30
31
29
-
-
26
(i)
(ii)
(iii)
(iv)
(v)
This amount is gross of taxes and mandatory statutory deductions as applicable in Australia and the United States.
As such for Messrs. Richardson and Knox incomes are not comparable to the prior period as prior periods were
partially subject to Australian tax regulations. Further to this Messrs. Richardson and Knox’s income derived in the
United States includes deductions for Medicare and Social Security which they will not benefit from as they not
citizens of the United States. Finally, these amounts are presented in Australian Dollars, however some payments
are made in United States Dollars, as such the Australian Dollar value varies depending on the exchange rate,
which experienced an increased level of volatility in calendar year 2020.
Relates to annual leave accrued but not taken during the period. No net leave was accrued in the prior period.
Share based payments comprise the amortisation of the measured cost of performance rights issued at grant date.
This grant date cost is based on the price of the Company’s shares which is amortised to the estimated date of the
hurdle being achieved based on an assessment of the probability of achievement of the hurdles specified in the
performance rights. See Note 19 for further information. The ultimate benefit received by the participant may be
materially different to this calculated value, and may be received at a significantly different time to the date presented
in this table. No performance shares granted converted to fully paid ordinary shares in this financial year.
Effective 1 April 2020 to 30 June 2020 the board and management took voluntarily reductions in remuneration in
light of the uncertainty brought about by the COVID-19 pandemic. Refer Section D Service Agreements for further
details.
Includes consulting fees for services provided by a related entity. Note consulting fees are based on services
provided and these fees are dependent on the work required in any given month.
(vi)
Resigned on 31 July 2019
(vii)
Amounts exclude expatriate benefits.
2020 Annual Financial Report
16
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
C.
Details of remuneration for the year ended 30 June 2019
Salary &
Fees
Non
monetary
benefits
Superannuation
Share-based
payments
Total
Proportion of
remuneration
performance
related
%
Directors
Non-executive
B McLeod (i)
P G Knox
M van Uffelen (ii)
A Grant (iii)
Executive
-
206,228
103,465
152,328
B Richardson (vi)
331,801
Total Directors
793,822
Other KMPs
K Hogg (iv)
T Kapfumo (v)
59,909
19,590
Total other KMPs
79,499
Total KMPs
873,321
-
-
-
-
-
-
-
-
-
-
-
3,470
2,444
-
-
5,914
-
1,861
1,861
7,775
-
6,519
-
-
-
216,217
105,909
152,328
16,296
348,097
22,815
822,551
-
-
-
59,909
21,451
81,360
22,815
903,911
-
3
-
-
5
3
-
-
-
3
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Passed away on 11 September 2018
Appointed 18 October 2018
Appointed 26 March 2019 and resigned 31 July 2019
Resigned 4 April 2019
Appointed 6 May 2019
Amounts exclude expatriate benefits.
D.
Service agreements
Executive Directors
Bruce Richardson
Executive Chairman and CEO, Mr Richardson, is employed under contract. The current employment contract
commenced on 19 February 2019 and has no fixed term.
The main terms of the employment contract with Mr Richardson are as follows:
• Remuneration of US$300,000 p.a.;
• 25 days of annual leave p.a.;
• 6-month notice period
• Expatriate benefits to ensure the employee is no worse off as a result of relocation.
Effective 1 April 2020 remuneration was reduced to US$200,000 pa.
P. Gregory Knox
Mr Knox receives a Director fee of $40,000 per annum inclusive of superannuation that was set by the Board
in 2011.
In addition to this fee the Company also pays Attadale Land Access Pty Ltd (an entity controlled by Mr Knox)
a daily fee of $650 for geological services for work performed in Australia.
When work is performed in the United States instead of a daily fee of $650 to Attadale Land Access Pty Ltd,
Mr Knox receives a salary of US$120,000 pa.
Effective 1 April 2020 this was reduced to US$70,000 pa.
2020 Annual Financial Report
17
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
Non-executive Directors’ remuneration
Michael van Uffelen
Mr van Uffelen receives a Non-executive Director fee of $40,000 per annum inclusive of superannuation. In
addition to the director fees, Mr van Uffelen is paid for additional services provided to the board under contract
with Black Tourmaline Consulting, an entity in which Mr van Uffelen has a beneficial interest, for remuneration
of $13,000 per month plus GST. Note consulting fees are based on services provided and these fees are
dependent on the work required in any given month.
Effective 1 April 2020 the consulting fee paid to Black Tourmaline Consulting was reduced to $4,333 per month
plus GST.
Alexander Grant
Mr Grant received a Non-executive Director fee of $40,000 per annum. In addition to the director fees, the
Company also paid Jade Cove Inc (an entity controlled by Mr Grant) a consultancy fee of US$250 per hour for
technical services.
Company Secretarial
The Company Secretary, Mr T Kapfumo, is employed under contract. The current employment contract
commenced on 6 May 2019 and has no fixed term.
The main terms of the employment contract with Mr Kapfumo are as follows:
• Remuneration of $140,000 p.a. inclusive of superannuation
• 20 days of annual leave p.a.
• 4 week notice period
Effective 1 April 2020 remuneration was reduced to $110,000 pa.
E.
Share-based compensation
Options granted to key management personnel
No options were granted as compensation during the year to KMPs.
No options vested during the year.
Performance rights issued to Key Management Personnel (KMP)
Details of performance rights over ordinary shares in the Company granted as compensation to key
management personnel during the year are as follows:
Name of KMP
Number of rights
granted during
the year
Vesting
condition
Grant date
Fair value at
grant date
Expiry date
B Richardson
8,600,000
see below
12 Nov 2019
0.031
16 Feb 2027
M van Uffelen
4,000,000
see below
12 Nov 2019
0.031
16 Feb 2027
P G Knox
4,000,000
see below
12 Nov 2019
0.031
16 Feb 2027
The vesting of the Performance Rights is subject to the following performance hurdles:
2020 Annual Financial Report
18
Directors’ Report (continued)
Remuneration report (audited) (continued)
Anson Resources Limited
Number of Performance Rights by Director
Bruce Andrew
Richardson
Michael van
Uffelen
P. Gregory
Knox
1,000,000
1,000,000
1,000,000
1,000,000
1,200,000
1,200,000
1,000,000
1,200,000
400,000
800,000
400,000
400,000
400,000
400,000
800,000
400,000
400,000
400,000
400,000
400,000
400,000
400,000
800,000
800,000
8,600,000
4,000,000
4,000,000
Tranche
Tranche L
Tranche M
Tranche N
Tranche O
Tranche P
Tranche Q
Tranche R
Tranche S
Total
L. passing first stage battery/cathode manufacturer lithium chemical acceptance testing;
M. securing an off-take agreement for lithium and / or bromine chemicals;
N. securing funding for a full-scale production plant;
O. completing a scoping or pre-feasibility study for lithium and / or bromine chemicals;
P. securing an off-take agreement(s) for chemical products other than lithium or bromine from
the Paradox Brine project;
Q. securing a strategic investor to finance boron, bromine and/or iodine production in an on-
site pilot plant program;
R. divestment, joint venture or financing of any project; and
S. establishing a JORC Resource for a mineral exploration project other than the Paradox
Brine project.
The initial undiscounted value of the performance rights is the value of an underlying share in the Company
as traded on ASX at the deemed date of grant of the performance right. As the performance conditions are not
market-based performance conditions, no discount is applied. The grant value of the performance rights is
$514,600. The value of the performance rights is recognised as a share-based payment expense and
amortised over the estimated period during which the respective performance hurdles may be achieved.
The amount recognised as share-based payment expense for the performance rights issued to the KMPs
during the year was $263,253. This is disclosed under director and employee benefits expenses.
The table below shows the number of Performance Rights granted, converted and forfeited during the year.
Balance at
start of year
Granted
Converted
Forfeited
Balance at
end of year
30 June 2020
Directors
B Richardson
4,600,000
8,600,000
P G Knox
1,600,000
4,000,000
M van Uffelen
A Grant
Other KMP
T Kapfumo
-
-
-
4,000,000
-
-
-
-
-
-
-
-
-
-
-
-
13,200,000
5,600,000
4,000,000
-
-
The shares to be issued in the event of vesting of the Performance Rights shall rank pari-passu in all respects
with other fully paid ordinary shares in the Company.
2020 Annual Financial Report
19
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
F.
Option holdings of key management personnel
The movement during the reporting period in the number of options over ordinary shares held directly, indirectly
or beneficially by each key management person, including their related parties, is as follows:
30 June 2020
Directors
B Richardson
P G Knox
M van Uffelen
A Grant
Other KMP
T Kapfumo
Balance
at start of
the year
Granted
Exercised
Options
Lapsed
Balance at
end of the
year
Vested and
exercisable
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
G.
Share holdings of key management personnel
The movement during the reporting period in the number of ordinary shares in the Company held directly,
indirectly or beneficially by each key management person, including their related parties, is as follows:
30 June 2020
Directors
B Richardson
P G Knox
Balance at start
of the year
23,847,723
14,758,270
M van Uffelen
83,000
A Grant
Other KMP
T Kapfumo
-
-
1. This is at the date of Mr Grant’s resignation
Issued upon
vesting of
performance
rights
-
-
-
-
-
On-market
acquisitions/
(disposals)
246,500
-
-
-
58,824
Balance at end of
the year
24,094,223
14,758,270
83,000
-1
58,824
H.
Loans to Key Management Personnel
On 27 February 2014, the Company issued 3,000,000 shares at 1.4 cents per share to Key Management
Personnel (KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company
held on 28 November 2013.
On 10 December 2014, the Company issued 5,000,000 shares at 1.3 cents per share to Key Management
Personnel (KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company
held on 26 November 2014.
On 21 December 2015, the Company issued 4,250,000 shares at 0.9 cents per share to Key Management
Personnel (KMPs) under a loan funded share plan approved at the Annual General Meeting of the Company
held on 27 November 2015.
2020 Annual Financial Report
20
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
The cost of the loan funded share plan is recognised as a share-based payment expense. The terms of the
loans are:
Interest rate: 8% per annum.
• Term of loan: 10 years.
•
• Lien: The Company shall have a lien over the shares until the loan is repaid and the Company shall
be entitled to sell the shares in accordance with the terms of the Employee Share Plan if the loan is
not repaid when due.
• Payments in relation to shares: Any dividends or capital returns in relation to the shares shall be
applied against repayment of the loan.
• Proceeds of sale: In the event of sale of the shares all sales proceeds shall be applied against
repayment of the loan.
• Limit of liability: The liability of the employee to repay the loan is limited to the payments received by
the employee in relation to the shares and any proceeds from the disposal of the shares.
I.
Other transactions and balances with Key Management Personnel
In addition to the compensation shown above in the remuneration report, during the year the Group was party
to an agreement with Lilac Solutions Inc. (“Lilac”) an entity associated with Non-executive Director Alex Grant
in relation to the design and engineering of an ion exchange plant. The services were provided at arm’s length
commercial rates. During the current year this amounted to $28,713 (2019: $134,489).
There were no other transactions with KMPs or their associated entities during the year. No other transactions
with key management personnel occurred during the year.
J.
Use of remuneration consultants
The Group did not engage the services of a remuneration consultant during the year.
K.
Voting and comments made at the Company’s 2019 Annual General Meeting
At the 2019 AGM, no comments were made on the remuneration report considered at the meeting and votes
cast against adoption of the remuneration report were fewer than the threshold of 25%.
END OF THE REMUNERATION REPORT
Signed in accordance with a resolution of the Directors:
Bruce Richardson
Executive Chairman and Chief Executive Officer
Perth, 25 September 2020
2020 Annual Financial Report
21
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
25 September 2020
Board of Directors
Anson Resources Limited
Level 1
35 Outram Street
West Perth WA 6005
Dear Directors
RE:
ANSON RESOURCES LIMITED
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Anson Resources Limited.
As Audit Director for the audit of the financial statements of Anson Resources Limited for the year
ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
(ii)
any applicable code of professional conduct in relation to the audit.
Yours faithfully,
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
Martin Michalik
Director
Liability limited by a scheme approved
under Professional Standards Legislation
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
Consolidated
Note
2020
$
2019
$
Other Income
Interest income
Other income
Expenses
Consultants
Depreciation
9
Director and employee benefits expenses
Exploration and evaluation costs
Foreign exchange gain
Loss on derivative instrument at fair value profit and loss
16
Interest expense
Occupancy costs
Project acquisition costs
Share-based payment expenses
Travel and accommodation
Other expenses
Loss from continuing operations before income tax
expense
Income tax expense
19
2
3
335
51,237
51,572
(33,267)
(158,019)
(1,260,340)
(1,055,559)
658
(2,610)
(142,020)
(133,992)
(193,388)
(82,901)
(203,388)
(383,661)
10,655
-
10,655
(257,172)
(91,813)
(798,645)
(3,872,050)
9,369
-
(10,134)
(96,841)
(317,235)
-
(266,268)
(489,615)
(3,596,915)
(6,179,749)
-
-
Loss from continuing operations after income tax expense
(3,596,915)
(6,179,749)
Other Comprehensive Income:
Items that will not be reclassified subsequently to profit or loss
Changes in fair value of financial assets – fair value OCI
18
(35,916)
6,457
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign subsidiaries
27,905
(141,621)
Total comprehensive loss for the year
(3,604,926)
(6,314,913)
Loss for the year attributable to members of the parent
entity
Total comprehensive loss for the year attributable to
members of the parent entity
(3,596,915)
(6,179,749)
(3,604,926)
(6,314,913)
Basic and diluted loss per share (cents per share)
5
(0.60)
(1.25)
The accompanying notes form part of these financial statements
2020 Annual Financial Report
23
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Anson Resources Limited
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Other assets
Total Current Assets
NON-CURRENT ASSETS
Property, plant and equipment
Intangible assets
Financial assets - fair value OCI
Other assets
Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
Lease liabilities
Convertible note
Derivative financial liability
Total Current Liabilities
NON-CURRENT LIABILITIES
Provisions
Lease liabilities
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Accumulated losses
TOTAL EQUITY
Consolidated
Note
2020
2019
$
$
6
7
8
9
10
11
8
12
13
14
15
16
13
14
17
18
568,250
23,803
47,521
639,574
193,113
2,517,958
94,810
666,720
1,855,438
3,226
171,552
2,030,216
342,982
1,095,826
146,833
771,924
3,472,601
2,357,565
4,112,175
4,387,781
600,531
179,650
112,488
553,882
635,122
749,944
530,077
86,729
-
-
2,081,673
1,366,750
294,069
50,333
344,402
336,177
147,720
483,897
2,426,075
1,850,647
1,686,100
2,537,134
21,838,998
19,700,213
2,016,383
(22,169,281)
1,409,287
(18,572,366)
1,686,100
2,537,134
The accompanying notes form part of these financial statements
2020 Annual Financial Report
24
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
Cash flows from Operating Activities
Payments to suppliers and employees
Payments for acquisition of projects
Payments for exploration
Interest paid
Other income received
Consolidated
Note
2020
$
2019
$
(1,455,081)
(4,602,257)
(85,623)
(1,386,139)
(25,733)
30,990
-
-
(2,797)
-
Net cash (used in) operating activities
27(i)
(2,921,586)
(4,605,055)
Cash Flows from Investing Activities
Purchase of property, plant & equipment
Proceeds on the sale of property, plant & equipment
Purchase of financial assets - FVOCI
Proceeds from sale of financial assets – FVOCI
Payment for office rental bonds
Proceeds from return of office rental bonds
Payments for refundable exploration bonds
Proceeds from return of refundable exploration bonds
Interest received
Development expenditures
Net cash (used in) investing activities
Cash Flows from Financing Activities
Proceeds from the issue of shares
Capital raising costs
Proceeds from exercise of options
Proceeds from issue of convertible note
Repayment of lease liabilities
Net cash provided by financing activities
Net (decrease)/increase in cash held
Cash at the beginning of the financial year
Effect of foreign exchange on amounts held in foreign currencies
(4,831)
19,000
-
13,933
(14,548)
-
(18,617)
-
-
(32,941)
10,782
(25,538)
124,663
(331,878)
335
10,654
(1,594,640)
(1,070,300)
(1,456,296)
(1,457,630)
2,100,000
5,047,704
(33,120)
(200,785)
-
1,410,761
1,089,554
(71,627)
-
(8,518)
3,084,807
6,249,162
(1,293,075)
186,477
1,855,438
1,656,320
5,887
12,640
Cash at the end of the financial year
6
568,250
1,855,438
The accompanying notes form part of these financial statements
2020 Annual Financial Report
25
Anson Resources Limited
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Consolidated Group
Ordinary
Shares
Accumulated
Losses
Share
Based
Payment
Reserve
Financial
Asset-Fair
Value OCI
Reserve
Foreign
Currency
Translation
Reserve
$
13,817,200
$
(12,517,300)
$
722,399
-
-
-
-
(6,179,749)
-
-
(6,179,749)
Balance at 1 July 2018
Loss attributable to members of the
parent entity
Change in fair value of financial
assets – Fair Value OCI
Exchange differences on translation
of foreign subsidiaries
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Issue of share capital
Exercise of options
Shares issued for acquisition of an
asset
Payment by Director for loan funded
shared
Share based payment for services
Vesting of performance rights
5,008,701
1,610,761
219,000
39,003
158,000
304,000
Share issue costs
(1,456,452)
Issue of performance rights
Issue of options
Expiry of options
-
-
-
124,683
(124,683)
$
44,624
-
6,457
$
Total
$
(45,716)
2,021,207
-
-
(6,179,749)
6,457
(141,621)
(141,621)
6,457
(141,621)
(6,314,913)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,008,701
1,410,761
219,000
39,003
158,000
-
(1,456,452)
270,399
1,181,428
-
-
-
-
-
-
(200,000)
-
-
-
(304,000)
-
270,399
1,181,428
-
-
-
-
-
-
-
-
-
Balance at 30 June 2019
19,700,213
(18,572,366)
1,545,543
51,081
(187,337)
2,537,134
Balance at 1 July 2019
Loss attributable to members of the
parent entity
Change in fair value of financial
assets – Fair Value OCI
Exchange differences on translation
of foreign subsidiaries
Total comprehensive loss for the
year
Transactions with owners in their
capacity as owners:
Issue of share capital
Shares issued for acquisition of an
asset
Share issue costs
Issue of performance rights
Issue of options
19,700,213
(18,572,366)
1,545,543
51,081
(187,337)
2,537,134
-
-
-
-
(3,596,915)
-
-
(3,596,915)
2,100,000
300,000
(261,215)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
338,041
277,066
-
(35,916)
-
-
(3,596,915)
(35,916)
-
27,905
27,905
(35,916)
27,905
(3,604,926)
-
-
-
-
-
-
-
-
-
-
2,100,000
300,000
(261,215)
338,041
277,066
Balance at 30 June 2020
21,838,998
(22,169,281)
2,160,650
15,165
(159,432)
1,686,100
2020 Annual Financial Report
26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Basis of preparation
i. Statement of Compliance
The financial report is a general-purpose financial report, which has been prepared in accordance with
Australian Accounting Standards, including Australian Accounting Interpretations, other authoritative
pronouncements of the Australian Accounting Standards Board (“AASB”) and the Corporations Act 2001 (Cth).
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 to which
they apply. 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 these financial statements are presented below. They have been
consistently applied unless otherwise stated.
The financial report has also been prepared on an accruals basis and are based on historical cost basis other
than for certain financial assets which are carried at fair value.
The financial report is presented in Australian dollars.
The Company has been an ASX listed public company since 6 July 2010 and is incorporated in Australia. It
has operations in Australia and the United States of America. The principal activities are the exploration for
minerals primarily for the extraction and development of lithium, bromine, iodine and boron chemicals from a
project in the United States of America.
The financial statements were authorised for issue on 25 September 2020.
ii. Going Concern
The financial report has been prepared on the going concern basis, which contemplates the continuity of
normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of
business.
The Group incurred a loss for the year of $3,596,915 (2019: $6,179,749) and net cash outflows from operating
activities of $2,921,586 (2019: $4,605,055). At 30 June 2020 the Group had a net working capital deficit of
$1,442,099 (2019: Surplus $663,466).
The ability of the Group to continue as a going concern is principally dependent upon the ability of the Company
to secure funds by raising capital from equity markets and managing cashflow in line with available funds.
These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Group
to continue as a going concern. In the event the above matters are not achieved, the Company will be required
to raise funds for working capital from debt or equity sources.
Subsequent to the end of the year the Company raised $2.205 million (before costs) via a Share Purchase
Plan and Top Up Placement.
Management have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows
to meet all commitments and working capital requirements for the 12-month period from the date of signing
this financial report by raising capital from equity markets.
Based on the cash flow forecasts and other factors referred to above, the directors are satisfied that the going
concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date,
the directors are confident of the Company’s ability to raise additional funds as and when they are required.
Should the Group be unable to continue as a going concern it may be required to realise its assets and
extinguish its liabilities other than in the normal course of business and at amounts different to those stated in
the financial statements. The financial statements do not include any adjustments relating to the recoverability
and classification of asset carrying amounts or to the amount and classification of liabilities that might result
should the Group be unable to continue as a going concern and meet its debts as and when they fall due.
2020 Annual Financial Report
27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Application of new and revised Accounting Standards
New standards and interpretations adopted
The Group has considered the application of new standards and amendments for the first time in the annual
reporting period commencing 1 July 2019.
AASB 3 Business Combinations
The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies
the requirements for a business combination achieved in stages, including remeasuring previously held
interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its
entire previously held interest in the joint operation.
An entity applies those amendments to business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after 1 January 2019, with early application
permitted.
These amendments had no impact on the consolidated financial statements of the Group as there is no
transaction where joint control is obtained.
AASB 112 Income Taxes
The amendments clarify that the income tax consequences of dividends are linked more directly to past
transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity
recognises the income tax consequences of dividends in profit or loss, other comprehensive income or equity
according to where it originally recognised those past transactions or events.
An entity applies the amendments for annual reporting periods beginning on or after 1 January 2019, with early
application permitted. When the entity first applies those amendments, it applies them to the income tax
consequences of dividends recognised on or after the beginning of the earliest comparative period.
Since the Group has not previously and is unlikely to pay a dividend in the near future these amendments had
no impact on the consolidated financial statements of the Group.
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations issued by the AASB which are not
yet mandatorily applicable to the Group have not been applied in preparing these consolidated financial
statements. None are likely to impact the Group.
(c)
Statement of compliance
The financial report complies with Australian Accounting Standards, which include Australian equivalents to
International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report,
comprising the financial statements and notes thereto, complies with International Financial Reporting
Standards (IFRS).
(d)
Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Anson
Resources Limited) and its subsidiaries. Subsidiaries are entities the parent controls. The parent controls an
entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in Note 22.
The assets, liabilities and results of all the subsidiaries are fully consolidated into the financial statements of
the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or
losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests". The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation
at either fair value or at the non-controlling interests' proportionate share of the subsidiary's net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of comprehensive income
2020 Annual Financial Report
28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e)
Critical accounting judgements and key sources of estimation uncertainty
The preparation of the Group’s consolidated financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount
of assets or liabilities affected in future periods.
In the process of applying the Group’s accounting policies, management has made the following judgements,
which have the most significant effect on the amounts recognised in the consolidated financial statements:
Determining the lease term of contracts with renewal and termination options – Group as lessee
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has a lease contract
that includes an extension option. The Group applies judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew the lease. That is, it considers all relevant factors that create an
economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the
lease term if there is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or to terminate (e.g., construction of significant
leasehold improvements or significant customisation to the leased asset).
Share-based payment transactions:
Estimating fair value for share-based payment transactions requires determination of the most appropriate
valuation model, which depends on the terms and conditions of the grant. This estimate also requires
determination of the most appropriate inputs to the valuation model including the expected life of the share
option or appreciation right, volatility and dividend yield and making assumptions about them.
The Group measures the cost of equity-settled share-based payments at fair value at the grant date using an
option pricing model, taking into account the terms and conditions upon which the instruments were granted.
The fair value is determined by a valuation using a Black Scholes Option Pricing Model, using the assumptions
detailed in Note 19.
Impairment of non-financial assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use.
The fair value less costs of disposal calculation is based on available data from binding sales transactions,
conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing
of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the
budget for the next five years and do not include restructuring activities that the Group is not yet committed to
or significant future investments that will enhance the asset’s performance of the CGU being tested. The
recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes.
Deferred taxation
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will
be available against which the losses can be utilised. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognised, base level of future taxable profits
together with future tax planning strategies.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only when management considers
that it is probable that sufficient future tax profits will be available to utilise those temporary differences.
Significant management judgement is required to determine the amount of deferred tax assets that can be
recognised, based upon the likely timing and the level of future taxable profits over the next two years together
with future tax planning strategies.
Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the statement of financial position
cannot be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the discounted cash flow (DCF) model.
2020 Annual Financial Report
29
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the
reported fair value of financial instruments.
Leases - Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in a lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to
pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a
similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the
Group ‘would have to pay’, which requires estimation when no observable rates are available (such as for
subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms
and conditions of the lease. The Group estimates the IBR using observable inputs (such as market interest
rates) when available and is required to make certain entity-specific estimates.
(f)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are
readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash
and cash equivalents as defined above.
(g)
Trade and other receivables
Trade receivables are measured on initial recognition at fair value and are subsequently measured at
amortised cost using the effective interest rate method, less provision for impairment. Trade receivables are
generally due for settlement within periods ranging from 30 to 90 days.
(h)
Foreign currency translation
Both the functional and presentation currency of the Company is Australian dollars. Each entity in the Group
determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange
rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies
are retranslated at the rate of exchange ruling at the balance sheet date.
All exchange differences in the consolidated financial report are taken to profit or loss with the exception of
differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity.
These are taken directly to equity until the disposal of the net investment, at which time they are recognised in
profit or loss.
Tax charges and credits attributable to exchange differences on those borrowings are also recognised in
equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at
the date when the fair value was determined.
The functional currency of the foreign operations, Tikal Minerals SA; A1 Lithium Inc., Paradox Lithium LLC and
Blackstone Resources Inc is USD.
As at the reporting date the assets and liabilities of these subsidiaries are translated into the presentation
currency of Anson Resources Limited at the rate of exchange prevailing at the balance date and their
statements of profit or loss are translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to a separate component of equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that particular
foreign operation is recognised in profit or loss.
2020 Annual Financial Report
30
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(i)
Income tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the balance sheet date.
Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
•
when the deferred income tax liability arises from the initial recognition of goodwill or of 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 profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled
and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused
tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses
can be utilised, except:
•
•
when the deferred income tax asset relating to the deductible temporary difference arises from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
when the deductible temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it
is probable that the temporary difference will reverse in the foreseeable future and taxable profit will
be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted
or substantively enacted at the balance date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same
taxable entity and the same taxation authority.
(j)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
•
•
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part
of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables
or payables in the Consolidated Statement of Financial Position.
Cash flows are included in the Consolidated Statement of Cash Flows on a gross basis and the GST
component of cash flows arising from investing and financing activities, which is recoverable from, or payable
to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
2020 Annual Financial Report
31
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Property, plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment
losses. Such cost includes the cost of replacing parts that are eligible for capitalisation when the cost of
replacing the parts is incurred. Similarly, when each major inspection is performed, its cost is recognised in
the carrying amount of the plant and equipment as a replacement only if it is eligible for capitalisation.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Office Equipment – over 2 to 5 years
Computer Equipment – over 2.5 years
Motor vehicles – over 2 to 5 years
Plant and Equipment – over 2 to 5 years
Right to use Buildings – over 2 to 4 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate,
at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each reporting date, with the
recoverable amount being estimated when events or changes in circumstances indicate that the carrying value
may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined for
the cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated to be
close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the Consolidated Statement of Profit or Loss
and Other Comprehensive Income.
(ii) De-recognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.
(l)
Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed
at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset are considered to modify the amortisation
period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation
expense on intangible assets with finite lives is recognised in the Consolidated Statement of Profit or Loss in
the expense category that is consistent with the function of the intangible assets.
2020 Annual Financial Report
32
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to
determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite
to finite is made on a prospective basis.
An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no
future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of
the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is included in the statement of profit or loss and other comprehensive income.
Research and development costs
Research costs are expensed as incurred. Development expenditures on an individual project are recognised
as an intangible asset when the Group can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available for
use or sale
Its intention to complete and its ability and intention to use or sell the asset
•
• How the asset will generate future economic benefits
• The availability of resources to complete the asset
• The ability to measure reliably the expenditure during development
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any
accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when
development is complete and the asset is available for use. It is amortised over the period of expected future
benefit. Amortisation is recorded in cost of sales. During the period of development, the asset is tested for
impairment annually.
(m)
Financial Instruments - Initial recognition and subsequent measurement
(i) Financial assets
Initial recognition and measurement
Financial assets are classified at initial recognition and subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables
that do not contain a significant financing component or for which the Group has applied the practical
expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient are measured at the
transaction price determined under AASB 15.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs
to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in
order to generate cash flows. The business model determines whether cash flows will result from collecting
contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
• Financial assets at amortised cost (debt instruments)
• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments)
• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses
upon derecognition (equity instruments)
• Financial assets at fair value through profit or loss
2020 Annual Financial Report
33
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial assets at amortised cost (debt instruments)
The Group measures financial assets at amortised cost if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order
to collect contractual cash flows and;
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding
The Group’s financial assets at amortised cost includes trade receivables.
Financial assets at fair value through OCI (debt instruments)
The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
• The financial asset is held within a business model with the objective of both holding to collect
contractual cash flows and selling and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost.
The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change
recognised in OCI is recycled to profit or loss.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments
designated at fair value through OCI when they meet the definition of equity under AASB 132 Financial
Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-
instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as
other income in the statement of profit or loss when the right of payment has been established, except when
the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case,
such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to
impairment assessment.
The Group elected to classify irrevocably its listed equity investments under this category.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives,
are also classified as held for trading unless they are designated as effective hedging instruments. Financial
assets with cash flows that are not solely payments of principal and interest are classified and measured at
fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt
instruments to be classified at amortised cost or at fair value through OCI, as described above, debt
instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates,
or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value
with net changes in fair value recognised in the statement of profit or loss.
This category includes derivative instruments and any listed equity investments which the Group decides not
irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are also
recognised as other income in the statement of profit or loss when the right of payment has been established.
2020 Annual Financial Report
34
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the
host and accounted for as a separate derivative if: the economic characteristics and risks are not closely
related to the host; a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative; and the hybrid contract is not measured at fair value through profit or loss. Embedded
derivatives are measured at fair value with changes in fair value recognised in profit or loss. Reassessment
only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that
would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss
category.
A derivative embedded within a hybrid contract containing a financial asset host is not accounted for
separately. The financial asset host together with the embedded derivative is required to be classified in its
entirety as a financial asset at fair value through profit or loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
• The rights to receive cash flows from the asset have expired; Or
• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass-through’
arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the
asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-
through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its
continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that reflects the rights and obligations that the Group has
retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
of the original carrying amount of the asset and the maximum amount of consideration that the Group could
be required to repay.
Impairment of financial assets
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase
in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that
are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been
a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment.
2020 Annual Financial Report
35
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every
reporting date, the Group evaluates whether the debt instrument is considered to have low credit risk using all
reasonable and supportable information that is available without undue cost or effort. In making that evaluation,
the Group reassesses the internal credit rating of the debt instrument. In addition, the Group considers that
there has been a significant increase in credit risk when contractual payments are more than 30 days past
due.
The Group considers a financial asset in default when contractual payments are 90 days past due. However,
in certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before
taking into account any credit enhancements held by the Group. A financial asset is written off when there is
no reasonable expectation of recovering the contractual cash flows.
(ii)
Financial Liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge,
as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction costs.
The Group’s financial liabilities include trade and other payables, loans and borrowings including a convertible
note, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group that are not
designated as hedging instruments in hedge relationships as defined by AASB 9. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in AASB 9 are satisfied. The Group has designated the
convertible note embedded derivative liability as at fair value through profit or loss.
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the effective interest rate method. Gains and losses are recognised in profit or loss when the liabilities
are derecognised as well as through the effective interest rate amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the effective interest rate. The effective interest rate amortisation is included as
finance costs in the statement of profit or loss.
This category generally applies to interest-bearing loans and borrowings.
Convertible Notes
Convertible notes are recognised as a liability on an amortised cost basis using the effective interest method
until extinguished upon conversion or at the instrument’s maturity date.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as
the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.
2020 Annual Financial Report
36
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(iii)
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement
of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
(n)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If
any such indication exists, or when annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less
costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate
cash inflows that are largely independent of those from other assets or groups of assets and the asset's value
in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part
of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit
exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset. Impairment losses relating to continuing operations are recognised in those expense categories
consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case
the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been
a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount.
That increased amount cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised
in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a
revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the
asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
(o)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods and
services provided to the Group prior to the end of the period that are unpaid and arise when the Group becomes
obliged to make future payments in respect of the purchase of these goods and services.
(p)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract,
the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the statement of profit or loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing
cost.
Provision for Rehabilitation
In accordance with the Group’s environmental policy and applicable legal requirements, a provision for site
rehabilitation is recognised in respect of the estimated cost of rehabilitation, decommissioning and restoration
of the area disturbed during mining activities up to the reporting date but not yet rehabilitated.
When the liability is initially recognised, the estimated cost is included within exploration expenditure. At each
reporting date the site rehabilitation provision is re-measured to reflect any changes in discount rates and
timing or amounts of the costs to be incurred. Additional disturbances or changes in rehabilitation costs will be
recognised as additions or changes to the corresponding exploration expenditure and rehabilitation provision,
prospectively from the date of change.
2020 Annual Financial Report
37
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Employee entitlements
A current liability is recognised for the amount expected to be paid an employee for annual leave they are
presently entitled to as a result of past service. The liability includes allowances for on-costs such as
superannuation and payroll taxes as well as any future salary and wage increases that the employee may be
reasonably entitled to.
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that
employees have earned in return for their service up to reporting date, plus related on costs. The benefit is
discounted to determine its present value and the discount rate is the yield at reporting date on high-quality
corporate bonds that have maturity dates approximating the terms of the Group’s obligations.
(q)
Employee leave benefits
(i) Wages, salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits expected to be settled within 12 months of
the reporting date are recognised in other payables in respect of employees’ services up to the reporting date,
they are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-
accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
(ii) Long service leave
The liability for long service leave is recognised in the provision for employee benefits and measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
reporting date. Consideration is given to expected future wage and salary levels, experience of employee
departures, and period of service. Expected future payments are discounted using market yields at the
reporting date on national government bonds with terms to maturity and currencies that match, as closely as
possible, the estimated future cash outflows.
(r)
Share-based payment transactions
The Group provides benefits to directors, employees (including senior executives) and consultants of the
Group in the form of share-based payments, whereby services are rendered in exchange for shares or rights
over shares (equity-settled transactions).
The cost of these equity-settled transactions with employees is measured by reference to the fair value of the
equity instruments at the date at which they are granted. The fair value is determined by an internal valuation
model, further details of which are given in Note 19.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions
linked to the price of the shares of Anson Resources Limited (market conditions) if applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over
the period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date
reflects (i) the extent to which the vesting period has expired and (ii) the Group’s best estimate of the number
of equity instruments that will ultimately vest. No adjustment is made for the likelihood of market performance
conditions being met as the effect of these conditions is included in the determination of fair value at grant
date. The statement of comprehensive income charge or credit for a period represents the movement in
cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is only
conditional upon a market condition. If the terms of an equity-settled award are modified, as a minimum an
expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any
modification that increases the total fair value of the share-based payment arrangement, or is otherwise
beneficial to the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any
expense not yet recognised for the award is recognised immediately. However, if a new award is substituted
for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled
and new award are treated as if they were a modification of the original award, as described in the previous
paragraph.
2020 Annual Financial Report
38
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of
earnings per share (see Note 5).
The value of shares issued to employees financed by way of a non-recourse loan under the Employee Share
Plan is recognised with a corresponding increase in equity when the Company receives funds from either the
employees repaying the loan or upon the loan termination. All shares issued under the plan with non-recourse
loans are considered, for accounting purposes, to be options.
(s)
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.
(t)
Earnings/(loss) per share
Basic earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the parent, adjusted
to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the
weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings/(loss) per share is calculated as net profit/(loss) attributable to members of the parent,
adjusted for:
•
•
•
costs of servicing equity (other than dividends) and preference share dividends;
the after tax effect of dividends and interest associated with dilutive potential ordinary shares
that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result
from the dilution of potential ordinary shares; divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
(u)
Exploration and evaluation expenditure
Exploration and evaluation costs are expensed as incurred. Acquisition costs will normally be expensed but
will be assessed on a case by case basis and if appropriate may be capitalised. These acquisition costs are
only carried forward to the extent that they are expected to be recouped through the successful development
or sale of the area. Accumulated acquisition costs in relation to an abandoned area are written off in full against
profit in the year in which the decision to abandon the area is made.
The carrying values of acquisition costs are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable.
(v)
Fair value of assets and liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis,
depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an
orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the
measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used
to determine fair value. Adjustments to market values may be made having regard to the characteristics of the
specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are
determined using one or more valuation techniques.
These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability
(ie the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such
a market, the most advantageous market available to the entity at the end of the reporting period (ie the market
that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability,
after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant's ability to
use the asset in its highest and best use or to sell it to another market participant that would use the asset in
its highest and best use.
2020 Annual Financial Report
39
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The fair value of liabilities and the entity's own equity instruments (excluding those related to share-based
payment arrangements) may be valued, where there is no observable market price in relation to the transfer
of such financial instruments, by reference to observable market information where such instruments are held
as assets. Where this information is not available, other valuation techniques are adopted and, where
significant, are detailed in the respective note to the financial statements.
Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more
valuation techniques to measure the fair value of the asset or liability, The Group selects a valuation technique
that is appropriate in the circumstances and for which sufficient data is available to measure fair value. The
availability of sufficient and relevant data primarily depends on the specific characteristics of the asset or
liability being measured. The valuation techniques selected by the Group are consistent with one or more of
the following valuation approaches:
• Market approach: valuation techniques that use prices and other relevant information generated by
market transactions for identical or similar assets or liabilities.
•
•
Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current
service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when
pricing the asset or liability, including assumptions about risks. When selecting a valuation technique, the
Group gives priority to those techniques that maximise the use of observable inputs and minimise the use of
unobservable inputs. Inputs that are developed using market data (such as publicly available information on
actual transactions) and reflect the assumptions that buyers and sellers would generally use when pricing the
asset or liability are considered observable, whereas inputs for which market data is not available and therefore
are developed using the best information available about such assumptions are considered unobservable.
Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises
fair value measurements into one of three possible levels based on the lowest level that an input that is
significant to the measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or
more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable
market data. If all significant inputs required to measure fair value are observable, the asset or liability is
included in Level 2. If one or more significant inputs are not based on observable market data, the asset or
liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
•
•
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice
versa; or
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice
versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value
hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change
in circumstances occurred.
2020 Annual Financial Report
40
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
Leases
For any new contracts entered into on or after 1 July 2018, the Group considers whether a contract is, or
contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset
(the underlying asset) for a period of time in exchange for consideration’. To apply this definition the Group
assesses whether the contract meets three key evaluations which are whether:
•
•
•
the contract contains an identified asset, which is either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is made available to the Group
the Group has the right to obtain substantially all of the economic benefits from use of the identified
asset throughout the period of use, considering its rights within the defined scope of the contract
the Group has the right to direct the use of the identified asset throughout the period of use. The
Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout
the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease
liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the
asset at the end of the lease, and any lease payments made in advance of the lease commencement date
(net of any incentives received).
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to
the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also
assesses the right-of-use asset for impairment when such indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the
Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including
in substance fixed), variable payments based on an index or rate, amounts expected to be payable under a
residual value guarantee and payments arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest.
It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed
payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or
profit and loss if the right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical
expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are
recognised as an expense in profit or loss on a straight-line basis over the lease term.
On the statement of financial position, right-of-use assets have been included in property, plant and equipment
and lease liabilities have been shown separately.
2020 Annual Financial Report
41
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2: OTHER EXPENSES
Compliance costs
Conference costs
Legal fees
Printing and postage
Audit fees
Gain on sale of property plant and equipment
Insurance
Share registry costs
Website and IT costs
Sundry expenses
Total other expenses
NOTE 3: INCOME TAX
(a) Income tax benefit
No income tax is payable by the parent or consolidated entities as they
recorded losses for income tax purposes for the financial year.
(b) Numerical reconciliation between income tax benefit and pre-tax
net loss
Loss before income tax benefit
Income tax calculated at 27.5%
Tax effect of:
-
-
-
-
Cost of equity settled awards
Sundry amounts
Section 40-880 deduction
Exploration acquisition costs incurred
Future income tax benefit not brought to account
Income tax benefit
Anson Resources Limited
Consolidated
2020
$
71,009
-
55,284
26,273
29,625
(12,273)
73,726
16,330
42,080
81,607
2019
$
89,974
23,942
126,632
29,912
55,604
-
70,935
42,805
34,260
15,551
383,661
489,615
-
-
(3,596,915)
(6,179,749)
(989,152)
(1,699,431)
92,961
7,986
(89,395)
53,182
74,360
56,200
(77,671)
87,240
924,418
1,559,302
-
-
(c) Tax losses
Unused tax losses for which no deferred tax asset has been
recognised (as recovery is currently not probable)
Potential at 27.5%
5,628,773
4,709,451
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised (at 27.5%):
-
-
Accruals
Section 40-880 deduction
Unrecognised deferred tax assets relating to the above temporary
differences
The potential tax benefit at 30 June 2020 in respect of tax losses not
brought into account has been calculated at 27.5%. The same rate was
applied for the year ended 30 June 2019.
17,453
89,395
48,394
77,671
106,848
126,065
2020 Annual Financial Report
42
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: SEGMENT REPORTING
Identification of reportable segments
Anson Resources Limited
The Group operates predominantly in the mineral exploration industry in Australia and USA. Inter-segment
transactions are priced at cost to the Consolidated Group.
The Group has identified its operating segments based on monthly internal reports. Management has identified
the operating segments based on the two principal locations of its projects – Australia and the United States
of America (“USA”). The Group also maintains a treasury function primarily responsible for overall
management of the operating segments, raising capital and distributing funds to operating segments.
Segment assets include the costs to acquire tenements (where applicable) and the capitalised development
costs of those tenements. Financial assets including cash and cash equivalents, and investments in financial
assets, are reported in the Corporate segment.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the board of directors, being the chief decision maker with
respect to operating segments, are determined in accordance with accounting policies that are consistent to
those adopted in the annual financial statements of the Group.
Inter-segment transactions
An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly and is
based on what would be realised in the event the sale was made to an external party at arm's length. All such
transactions where applicable are eliminated on consolidation of the Group's financial statements.
Corporate charges, where applicable are allocated to reporting segments based on the segments' overall
proportion of revenue generation within the Group. The board of directors believes this is representative of
likely consumption of head office expenditure that should be used in assessing segment performance and cost
recoveries.
Inter-segment loans payable and receivable are initially recognised at the consideration received/to be
received net of transaction costs. If inter-segment loans receivable and payable are not on commercial terms
these are not adjusted to fair value based on market interest rates. This policy represents a departure from
that applied to the statutory financial statements.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority
economic value from that asset. In the majority of instances, segment assets are clearly identifiable on the
basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and
the operations of the segment. Borrowings and tax liabilities are generally considered to relate to the Group
as a whole and are not allocated. Segment liabilities include trade and other payables and certain direct
borrowings.
Unallocated items
The following items of expenses, assets and liabilities are not allocated to operating segments as they are not
considered part of the core operations of any segment:
Income tax expense
• Non-exploration impairment of assets and other non-recurring items of revenue or expense
•
• Deferred tax assets and liabilities
• Current tax liabilities
• Other financial liabilities
2020 Annual Financial Report
43
Mineral
Exploration
Australia
$
-
(241,303)
Mineral
Exploration
USA
$
-
(993,449)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: SEGMENT REPORTING (CONTINUED)
For the year ended 30 June 2020
to
identified
Segment revenue
Segment loss
Amounts not included in segment results but
reviewed by the board:
Expenses not directly allocable
segments or areas of interest
Depreciation
Consultants
Director and employee expenses
Loss on derivative instrument at FVPL
Occupancy
Share based payment expense
Travel and accommodation
Foreign exchange gain
Other expenses
Loss after income tax
Anson Resources Limited
Treasury
Total
$
$
335
(90,448)
335
(1,325,200)
(158,019)
(33,267)
(1,260,340)
(2,610)
(133,992)
(82,901)
(203,388)
658
(397,856)
(3,596,915)
AS AT 30 JUNE 2020
Segment assets
Unallocated assets:
Trade and other receivables
Plant and equipment
Other assets
Total Assets
Segment asset increases for the year
Capital expenditure – development
Total segment asset increases for the year
Segment Liabilities
Unallocated liabilities:
Trade and other payables
Provisions
Financial liabilities
Total Liabilities
-
3,184,681
636,590
3,821,271
23,803
193,113
73,988
4,112,175
-
-
1,422,132
1,422,132
-
-
1,422,132
1,422,132
6,269
613,628 1,189,004
1,808,901
274,703
179,650
162,821
2,426,075
2020 Annual Financial Report
44
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: SEGMENT REPORTING (CONTINUED)
For the year ended 30 June 2019
to
Segment revenue
Segment profit/(loss)
Amounts not included in segment results but
reviewed by the board:
Expenses not directly allocable
segments or areas of interest
Depreciation
Consultants
Director and employee expenses
Occupancy
Travel and accommodation
Foreign exchange loss
Other expenses
Loss after income tax
identified
Anson Resources Limited
Mineral
Exploration
Australia
$
-
(21,645)
Mineral
Exploration
USA
$
-
(4,167,640)
Treasury
$
Total
$
10,655
521
10,655
(4,188,764)
(91,813)
(257,172)
(798,645)
(96,841)
(266,268)
9,369
(489,615)
(6,179,749)
AS AT 30 JUNE 2019
Segment Assets
Unallocated assets:
Trade and other receivables
Plant and Equipment
Other assets
Total Assets
Segment asset increases for the year:
Capital expenditure – development
Total segment asset increases for the year
Segment Liabilities
Unallocated liabilities:
Trade and other payables
Provisions
Financial liabilities
Total Liabilities
-
1,820,817
2,002,270
3,823,087
-
-
1,095,826
1,095,826
-
1,112,936
-
-
-
3,226
342,982
218,486
4,387,781
1,095,826
1,095,826
1,112,936
261,657
241,605
234,449
1,850,647
2020 Annual Financial Report
45
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5: LOSS PER SHARE
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
The loss and weighted average number of ordinary shares used in the
calculation of basic loss per share is as follows:
Loss for the year
Weighted average number of shares outstanding during the year used in
calculations of basic loss per share:
Anson Resources Limited
Consolidated
2020
(0.60)
(0.60)
2019
(1.25)
(1.25)
$
$
(3,596,915)
(6,179,749)
No.
No.
597,769,997 492,772,487
There is no dilution of shares due to options; performance rights and the convertible note, as the potential
ordinary shares are not dilutive and therefore not included in the calculation of diluted loss per share.
NOTE 6: CASH AND CASH EQUIVALENTS
Cash at bank and term deposits
Cash at bank earns interest at floating rates based on daily bank deposit rates.
The Group’s exposure to interest rate risk and a sensitivity analysis for
financial assets and liabilities are disclosed in note 26(a).
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
GST recoverable
Other receivables
NOTE 8: OTHER ASSETS
Current
Prepayments
Office lease security deposits
Non-current
Office lease security deposits
Exploration bonds
Consolidated
2020
$
2019
$
568,250 1,855,438
568,250 1,855,438
Consolidated
2020
$
2019
$
3,556
20,247
23,803
3,226
-
3,226
Consolidated
2020
$
2019
$
37,837
9,684
171,552
-
47,521
171,552
26,467
640,253
666,720
46,933
724,991
771,924
2020 Annual Financial Report
46
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Anson Resources Limited
Consolidated
2020
$
464,687
(271,574)
2019
$
479,381
(136,399)
193,113
342,982
Cost
As at 1 July 2018
Additions
Exchange differences
At 30 June 2019
Additions
Disposals
Exchange differences
Right to Use
Buildings
$
Motor
Vehicles
$
Plant and
Equipment
$
Office
Equipment
$
Total
$
-
259,865
5,613
265,478
-
-
3,353
80,920
-
1,458
82,378
-
(28,378)
2,738
76,057
-
3,437
79,494
-
-
2,635
37,093
14,548
390
52,031
4,831
-
127
194,070
274,413
10,898
479,381
4,831
(28,378)
8,853
As at 30 June 2020
268,831
56,738
82,129
56,989
464,687
Depreciation and impairment
As at 1 July 2018
Depreciation charge for the year
Exchange differences
As at 30 June 2019
Depreciation charge for the year
Disposals
Exchange differences
As at 30 June 2020
Net Book Value
As at 30 June 2019
As at 30 June 2020
-
28,705
745
29,450
98,039
-
411
127,900
16,581
16,557
490
33,628
15,146
(23,386)
17
25,405
15,297
33,762
1,758
50,817
21,525
-
81
72,423
9,642
12,789
73
22,504
23,309
-
33
45,846
41,520
91,813
3,066
136,399
158,019
(23,386)
542
271,574
236,028
140,931
48,750
31,333
28,677
9,706
29,527
11,143
342,982
193,113
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
Right to Use Buildings
Consolidated
2020
$
140,931
2019
$
236,028
140,931
236,028
Depreciation in relation to right-of-use assets during the year was $98,039 (2019: 28,705)
The useful life of the assets were estimated as follows for 2020:
Right to Use Buildings
Motor vehicles
Plant and equipment
Office equipment
2-4 years
2-5 years
2-5 years
2-5 years
2020 Annual Financial Report
47
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 10: INTANGIBLE ASSETS
Development costs
Reconciliation of movements during the year:
Balance at the beginning of the year
Development costs capitalised
Anson Resources Limited
Consolidated
2020
$
2019
$
2,517,958
1,095,826
2,517,958
1,095,826
Consolidated
2020
$
2019
$
1,095,826
1,422,132
-
1,095,826
2,517,958
1,095,826
During the year the Group continued the development of its bromine and lithium extraction process flowsheet
including metallurgical testing test work that produced bromine; lithium carbonate and lithium hydroxide.
The recoverability of the carrying amount of the development costs is dependent on the successful
development and commercial exploitation or sale of chemical products of the project.
Capitalised development costs will be amortised over the expected useful life of the intangible asset once full
commercialisation of production commences.
NOTE 11: FINANCIAL ASSETS – FAIR VALUE OCI
Non-Current
Shares in listed entities
Shares in listed entities
Opening balance
Additions
Disposals
Movements in fair value
Movements in foreign currency
These listed entities have been valued using quoted prices in active markets.
NOTE 12: TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables
Accruals
Convertible note interest payable
Consolidated
2020
$
2019
$
94,810
94,810
146,833
146,833
146,833
-
(15,253)
(34,626)
(2,144)
94,810
117,373
18,617
-
6,457
4,386
146,833
Consolidated
2020
$
483,272
29,613
63,467
24,179
600,531
2019
$
569,361
4,604
175,979
-
749,944
Trade payables are non-interest bearing and are normally settled on 30-day
terms.
2020 Annual Financial Report
48
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: PROVISIONS
Current
Employee entitlements
Project acquisition
Rehabilitation
Make good
Non-current
Make good
Rehabilitation
Anson Resources Limited
Consolidated
2020
$
2019
$
44,650
125,000
-
10,000
179,650
-
294,069
294,069
1,606
230,000
298,471
-
530,077
10,000
326,177
336,177
a
b
c
c
b
a. The Group has recognised a provision for the estimated costs required in relation to hurdles pursuant
to an agreement entered into for the acquisition of the Paradox Lithium Brine Project. There is currently
litigation on-going regarding the definition of said hurdles.
b. The rehabilitation provision relates to the Group’s rehabilitation obligations in the United States. Such
activities include dismantling infrastructure; removal of waste material and land rehabilitation. The
provision is shown at its present value taking into account the time value of money. During the year
$214,951 was reversed upon completion of the rehabilitation of one of the tenements.
c. This relates to the estimated cost of making good the premises in relation to the lease entered into in
the prior year.
NOTE 14: LEASE LIABILITIES
Current
Non-Current
Consolidated
2020
$
2019
$
112,488
50,333
162,821
86,729
147,720
234,449
The Group has leases for its offices and some IT equipment. With the exception of short-term leases and
leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and
a lease liability. Variable lease payments which do not depend on an index or a rate (such as lease payments
based on a percentage of Group sales) are excluded from the initial measurement of the lease liability and
asset. The Group classifies its right-of-use assets in a consistent manner to its property, plant and equipment
(see Note 9).
Each lease generally imposes a restriction that, unless there is a contractual right for the Group to sublet the
asset to another party, the right-of-use asset can only be used by the Group. Leases are either non-cancellable
or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to purchase
the underlying leased asset outright at the end of the lease, or to extend the lease for a further term. The Group
is prohibited from selling or pledging the underlying leased assets as security.
For leases over office buildings the Group must keep those properties in a good state of repair and return the
properties in their original condition at the end of the lease. Further, the Group must insure items of property,
plant and equipment and incur maintenance fees on such items in accordance with the lease contracts.
2020 Annual Financial Report
49
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 14: LEASE LIABILITIES (continued)
Anson Resources Limited
The table below describes the nature of the Group’s leasing activities by type of right-of-use asset recognised
on balance sheet:
Right of use
asset
Number leased
Range of
remaining term
Average
remaining term
Office Building
2
1-1.5yrs
1.25yrs
Leases with
extension
options
1
Leases with
purchase
option
nil
The lease liabilities are secured by the related underlying assets. Future minimum lease payments at 30 June
2020 and 2019 were as follows:
Right of use asset
Within 1
Year ($)
1-2
Years
($)
2-3 Years
($)
3-4 Years
($)
4-5
Years
($)
After 5
Years
($)
Minimum lease payments due
30 June 2020
Lease payments
Finance Charges
Net present values
126,399
(14,702)
111,697
53,404
(2,280)
51,124
-
-
-
-
-
-
-
-
-
-
-
-
Right of use asset
Within 1
Year ($)
1-2
Years
($)
2-3 Years
($)
3-4 Years
($)
4-5
Years
($)
After 5
Years
($)
Minimum lease payments due
30 June 2019
Lease payments
Finance Charges
Net present values
105,407
(18,678)
86,729
97,399
(10,670)
86,729
63,099
(2,108)
60,991
-
-
-
-
-
-
-
-
-
Total ($)
179,803
(16,982)
162,821
Total ($)
265,905
(31,456)
234,449
Lease payments not recognised as a liability
The Group has elected not to recognise a lease liability for short term leases (leases with an expected term of
12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a
straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease
liabilities and are expensed as incurred.
The expense relating to payments not included in the measurement of the lease liability is as follows:
Short term leases
Leases of low value assets
Variable lease payments
Consolidated
2020
2019
($)
($)
34,684
4,885
-
39,569
-
3,780
-
3,780
Variable lease payments expensed on the basis that they are not recognised as a lease liability include excess
use charges on office equipment. Variable lease payment terms are used for a variety of reasons, including
minimising costs for IT equipment with infrequent use. Variable lease payments are expensed in the period
they are incurred.
The interest expense on lease liabilities during the year was $25,733 (2019: $10,146).
2020 Annual Financial Report
50
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: CONVERTIBLE NOTE
Anson Resources Limited
On 21 January 2020, the Company completed the issue of a convertible note to its strategic investor, Chia Tai
Xingye International, Zhongfan Group (Chia Tai).
The convertible note is unsecured; has a face value of US$750,000; and matures on 20 January 2023. The
convertible note has a coupon interest rate of 5% per annum. Chia Tai may convert the note into fully paid
ordinary shares at a conversion price of A$0.028 per share at any time before maturity date and the Company
may redeem the notes at any time before conversion.
The conversion feature of the note is required to be separated from the note and is accounted for a as
derivative financial liability. The fair value of the embedded derivative at the time of issuance was $632,512
and was recorded at a discount for purposes of accounting for the debt component of the notes. The discount
is amortised as interest expense using the effective interest method over the term of the convertible note.
The principal amount, unamortised debt discount and net carrying amount of the liability component of the
convertible note as at year end is as follows:
Principal amount
Unamortised debt discount
Carrying value
Consolidated
2019
$
2020
$
1,092,817
(538,935)
553,882
Coupon interest expense and amortisation of debt discount for the year is as follows:
Coupon interest expense
Amortisation of debt discount
Total finance expense on convertible note
NOTE 16: DERIVATIVE FINANCIAL LIABILITY
Consolidated
2019
$
2020
$
24,179
93,577
117,756
-
-
-
-
-
-
The Group’s derivative financial liability consists of the conversion feature of the convertible note issued during
the year (See Note 15).
The fair value of this conversion feature is determined using valuation techniques. These valuation techniques
maximise the use of observable market data where it is available and rely as little as possible on entity specific
estimates. Inputs into the valuation include share price volatility and time to expiration. At initial recognition,
the proceeds received on issue of the convertible note are split between the host debt contract and the
embedded derivative liability. The embedded derivative liability is calculated first and the residual value is
assigned to the debt host liability component.
The conversion feature derivative liability represents an embedded derivative financial instrument in the host
debt contract. The conversion feature represents the Group’s obligation to issue Anson Resources Limited
shares should the note holder exercise their conversion option. The embedded conversion derivative is carried
in the Statement of Financial Position at its estimated fair value and adjusted at the end of each reporting
period, with any unrealised gain or loss reflected in the Statement of Profit or Loss. During the year, the Group
recognised $2,610 revaluation loss in the Statement of Profit or Loss relating to the conversion feature
derivative.
2020 Annual Financial Report
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 16: DERIVATIVE FINANCIAL LIABILITY (continued)
The fair value at year end is shown below:
Derivative financial liability (conversion feature on convertible note)
Total derivative financial liability
NOTE 17: CONTRIBUTED EQUITY
Paid up capital – ordinary shares
Capital raising costs
(a)
Ordinary shares
2020 movements in ordinary share capital:
Balance at 1 July 2019
Issue of shares via private placement at $0.03 each
Issue of shares via private placement at $0.012 each
Issue of shares to vendors for acquisition of State Exploration Pty Ltd
Capital raising costs
Balance at 30 June 2020
2019 movements in ordinary share capital:
Balance at 1 July 2018
Exercise of options at $0.025
Issue of shares via private placement at $0.11 each
Issue of shares to various consultants for services rendered
Payment by director for loan funded shares
Issue of shares to vendor for acquisition of tenements
Issue of shares as security for an equity placement agreement
Issue of shares via private placement at $0.06 each
Issue of shares via Share Purchase Plan at $0.06 each
Issue of shares via private placement at $0.055 each
Conversion of Performance Rights (refer note 17(c) for further details)
Capital raising costs
Balance at 30 June 2019
Consolidated
2020
2019
$
$
635,122
635,122
-
-
Consolidated
2020
$
2019
$
24,616,619
(2,777,621)
22,216,619
(2,516,406)
21,838,998
19,700,213
Number of
shares
$
549,961,778
50,000,000
50,000,000
12,500,000
-
19,700,213
1,500,000
600,000
300,000
(261,215)
662,461,778
21,838,998
415,204,623
56,430,434
22,727,274
2,208,981
-
3,000,000
5,000,000
27,500,000
10,145,011
4,545,455
3,200,000
-
13,817,200
1,610,761
2,500,000
158,000
39,003
219,000
-
1,650,000
608,701
250,000
304,000
(1,456,452)
549,961,778
19,700,213
2020 Annual Financial Report
52
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 17: CONTRIBUTED EQUITY (continued)
Anson Resources Limited
(b)
Share options
2020
Balance at 1 July 2019
Issued during the year
Exercised during the year
Expired during the year
Balance at 30 June 2020
2019
Balance at 1 July 2018
Issued during the year
Exercised during the year
Expired during the year
Note (i)
Note (ii)
Note (iii)
Note (iv)
Note (v)
5,681,819
-
-
-
10,000,000
-
-
-
11,514,105
-
10,000,000
-
-
-
62,500,000
-
-
5,681,819
10,000,000
11,514,105
10,000,000
62,500,000
-
5,681,819
-
-
-
10,000,000
-
-
-
11,514,105
-
-
-
-
-
-
-
-
-
-
-
-
Balance at 30 June 2019
5,681,819
10,000,000
11,514,105
(i)
(ii)
(iii)
(iv)
(v)
Unlisted options exercisable at 20c each on or before 18/07/20 issued as part of a private placement.
Unlisted options exercisable at 20c each on or before 18/07/20 issued to brokers as part of fees of
raising capital.
Unlisted options exercisable at 8.7c each on or before 16/05/22 issued as part of an equity placement
agreement.
Unlisted options exercisable at 6c each on or before 10/09/21 issued as part of an equity placement
agreement.
Unlisted options exercisable at 3.5c each on or before 30/06/23 issued as part of an equity placement
agreement.
(c)
Performance Rights
Opening balance
Issued during the year
Vested during the year
Forfeited during the year
Closing balance
2020 (No.)
2019 (No.)
a. b.
c.
d.
6,200,000
16,600,000
-
-
10,000,000
1,400,000
(3,200,000)
(2,000,000)
22,800,000
6,200,000
a. These Performance Rights were issued during the year and will vest upon:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
1.8m on passing first stage battery/cathode manufacturer lithium chemical acceptance testing;
2.2m on securing an off-take agreement for lithium and / or bromine chemicals;
1.8m on securing funding for a full-scale production plant;
1.8m on completing a scoping or pre-feasibility study for lithium and / or bromine chemicals;
2m on securing an off-take agreement(s) for chemical products other than lithium or bromine from the
Paradox Brine project;
2m on securing a strategic investor to finance boron, bromine and/or iodine production in an on-site pilot
plant program
2.6m on divestment, joint venture or financing of any project; and
2.4m on establishing a JORC Resource for a mineral exploration project other than the Paradox Brine
Project.
2020 Annual Financial Report
53
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 17: CONTRIBUTED EQUITY (continued)
Anson Resources Limited
b.
In the prior year these Performance Rights were issued with the following vesting milestones:
i.
ii.
the sale by the Company of the Paradox Lithium Project or a majority interest in the Project, where the
sale consideration values the Project at a higher value than the sum of the acquisition cost of the Project
and all money spent by the Company developing the Project; or
the farm-out by the Company of the Project where the sum of any consideration received by the
Company in consideration of the farm-out and the value of the retained interest of the Company in the
Project is higher than the sum of the acquisition cost of the Project and all money spent by the Company
in developing the Project.
c. These Performance Rights vested and were converted to ordinary shares as a result of the following 2
performance hurdles being achieved:
i.
ii.
successful completion of bench-top test work to produce battery grade lithium carbonate equivalent; and
establishing a JORC or NI43-101 equivalent compliant resource.
d. These were forfeited by Bruce McLeod on his passing.
Refer Note 19(b) for further details of Performance Rights granted by the Company.
NOTE 18: RESERVES
The following table shows a breakdown of the Consolidated Statement of Financial Position line item
‘Reserves’ and the movements in these reserves during the year. A description of the nature and purpose of
each reserve is provided below the table.
Share-based
payments
$
Financial
Assets –
FVOCI
$
Foreign
currency
translation
$
Total
reserves
$
As at 1 July 2019
1,545,543
51,081
(187,337)
1,409,287
Foreign currency translation of subsidiary
Revaluation of financial assets
Issue of options
Issue of Performance Rights
-
277,066
338,041
-
(35,916)
-
-
27,905
-
-
-
27,905
(35,916)
277,066
338,041
As at 30 June 2020
2,160,650
15,165
(159,432)
2,016,383
Share-based
payments
$
Financial
Assets –
FVOCI
$
Foreign
currency
translation
$
Total
reserves
$
As at 1 July 2018
722,399
44,624
(45,716)
721,307
Foreign currency translation of subsidiary
Revaluation of financial assets
Issue of options
Exercise of options
Lapsed options
Issue of Performance Rights
Conversion of Performance Rights
-
-
1,181,428
(200,000)
(124,683)
270,399
(304,000)
-
6,457
-
-
-
-
-
(141,621)
-
-
-
-
-
-
(141,621)
6,457
1,181,428
(200,000)
(124,683)
270,399
(304,000)
As at 30 June 2019
1,545,543
51,081
(187,337)
1,409,287
2020 Annual Financial Report
54
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18: RESERVES (continued)
Share-based payments reserve
Anson Resources Limited
The share-based payment reserve represents the fair value of the actual or estimated number of unexercised
share options and performance rights granted to management and consultants of the Company recognised in
accordance with the accounting policy adopted for share-based payments and the cash price of rights options
issued to investors and the proceeds raised from the issue of options under an entitlement issue.
Financial Assets - FVOCI
Changes in the fair value and exchange differences arising on translation of financial assets that are classified
as fair value through other comprehensive income (FVOCI), are recognised in other comprehensive income
and accumulated in a separate reserve within equity. Amounts are not reclassified to profit or loss when the
associated assets are sold or impaired.
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of
the financial statements of foreign subsidiaries.
NOTE 19: SHARE BASED PAYMENTS
(a) Options
During the year, the following options were granted to brokers and equity providers in consideration for services
provided in managing and assisting with raising capital.
Class
Grant Date
Expiry Date
Unlisted Options
12 Nov 2019
10 Sept 2021
Unlisted Options
24 June 2020
30 June 2023
Exercise
Price
Number of
Options granted
$0.060
$0.035
10,000,000
12,500,000
The fair value of the equity-settled share options granted is estimated as at the date of grant using the Black
Scholes model taking into account the terms and conditions upon which the options and shares were granted,
unless the share options are listed and have a quoted market price.
The fair value of the options granted are recognised as an expense over the period from grant to vesting date.
The Black Scholes Option Pricing Model assumes that the securities the subject of the valuation can be sold
on a secondary market. The terms and conditions of the Options state that no application will be made for the
Shares to be listed for official quotation on ASX, until certain milestones are met. Accordingly, a discount for
lack of marketability is required to determine an indicative fair value of the Options.
For the purposes of arriving at an appropriate discount rate, the Company has considered:
•
•
that discounts have traditionally been applied in the range of 10% to 30% to reflect the non-negotiability
of unlisted equities; and
the fact that the Securities will be unlisted.
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.
The below table lists the assumptions used in the valuation:
Grant
Date
Vesting
Date
Number
Issued
Stock Price at
Grant Date
Exerc.
Price
Risk Free
Rate
Volatility
Value Per
option
Options
12/11/19
12/11/19
10,000,000
Options
24/06/20
24/06/20
12,500,000
$0.031
$0.024
6c
0.84%
86%
3.5c
0.27%
120%
0.83c
1.55c
2020 Annual Financial Report
55
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: SHARE BASED PAYMENTS (continued)
Anson Resources Limited
In addition, a further 50,000,000 free attaching options were granted during the year, with a weighted average
exercise price of 3.5 cents and expiring on 30 June 2023. These were issued as part of a private placement.
None were exercised during the year.
(b) Performance Rights
The movement in performance rights during the year is presented below:
Balance at start of the year
Issued during the year:
Bruce Richardson
Greg Knox
Michael van Uffelen
Converted during the year:
Bruce Richardson
Greg Knox
Forfeited during the year:
Bruce McLeod
30 June 2020
(No.)
30 June 2019
(No.)
6,200,000
10,000,000
8,600,000
4,000,000
4,000,000
1,000,000
400,000
-
16,600,000
1,400,000
-
-
-
-
-
(2,400,000)
(800,000)
(3,200,000)
(2,000,000)
(2,000,000)
Balance at year end
22,800,000
6,200,000
The Performance Rights issued were for nil cash consideration and nil issue price.
The vesting of the Performance Rights is conditional upon the Group’s achievement of various performance
hurdles in relation to the Group’s projects.
The shares to be issued in the event of vesting of the Performance Rights shall rank pari-passu in all respects
with other fully paid ordinary shares in the Company.
Any unvested Performance Rights issued in prior periods (1,400,000) will lapse on 29 November 2023 and
(4,800,000) will lapse on 18 April 2025 while the Performance Rights issued during the year (16,600,000) will
lapse on 16 February 2027.
The assessed fair value at grant date of the Performance Rights granted during the year was 3.1 cents per
Performance Right (2019: 8 cents). The initial undiscounted value of the Performance Rights is the value of
an underlying share in the Company as traded on ASX at the deemed date of grant of the Performance Right.
As the performance conditions are not market based performance conditions, no discount is applied. The value
of the Performance Rights is amortised over the period during which the respective performance hurdle may
be achieved. In the event the performance hurdle is achieved before the end of the vesting period, the
remaining unamortised value is immediately expensed.
(c) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year were as follows:
Performance rights issued (Included in director and employee benefits)
338,041
270,399
2020
$
2019
$
Options Issued
2020 Annual Financial Report
82,901
-
420,942
270,399
56
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 19: SHARE BASED PAYMENTS (continued)
(d) Other share-based payments
Anson Resources Limited
Shares issued to consultants as consideration for services provided
On 6 December 2018, the Company issued a total of 1,000,000 shares to a consultant of the Group as
consideration for his services in relation to securing exploration tenements in Utah, USA.
On 27 March 2019, the Company issued 3,000,000 shares to a vendor as consideration for the acquisition of
exploration tenements in Utah, USA.
On 20 May 2019 the Company issued 1,208,981 shares to an equity participant in lieu of fees for entering into
an equity placement agreement.
On 30 June 2020, the Company issued 12,500,000 shares to two vendors as consideration for the acquisition
of an exploration tenement in Western Australia via the acquisition of State Exploration Pty Ltd.
Options issued as fees or capital raisings
On 20 July 2018 the Company granted 10,000,000 options to a broker with an exercise price of 20 cents and
expiring on 18 July 2020 as part of the costs of a capital raising. At grant date they had a value of $969,621.
On 17 May 2019 the Company granted 11,514,105 options to a financer with an exercise price of 9 cents and
expiring on 10 September 2021 as part of the costs of entering into an equity placement agreement. At grant
date they had a value of $211,807.
On 12 November 2019 the Company granted 10,000,000 options to a financer with an exercise price of 6 cents
and expiring on 16 May 2022 as part of the costs of entering into an equity placement agreement. At grant
date they had a value of $82,901.
On 24 June 2020 the Company granted 12,500,000 options to a broker with an exercise price of 3.5 cents and
expiring on 30 June 2023 as part of the costs of a capital raising. At grant date they had a value of $194,165.
(e) Loan Funded Share Plan Shares
The Company has established a Loan Funded Share Plan for the purposes of attracting and retaining the
services of Directors and employees of a high calibre. No shares were issued under the Plan in the current
financial year (2019: Nil). As at balance date, a total of 8,750,000 shares remain on issue under the Plan.
NOTE 20: ASSET ACQUISITION
State Exploration Pty Ltd
On 24 June 2020, the Group obtained shareholder approval for the acquisition of State Exploration Pty Ltd
(State) satisfying the final condition precedent. State held a sole asset being the application for tenement
E70/5420 (The Bull Ni-Cu-PGE Project). State did not meet the definition of a business under AASB 3 Business
Combinations and thus the acquisition has been accounted for an asset acquisition. The acquisition details
are outlined below:
Purchase Consideration
12,500,000 fully paid ordinary shares
Amount expensed during the period
2020
$
300,000
300,000
2020 Annual Financial Report
57
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 21: COMMITMENTS AND CONTINGENCIES
Anson Resources Limited
(a)
Expenditure commitments contracted for exploration tenements:
In order to maintain current rights of tenure to exploration tenements, the Group is required to meet minimum
expenditure requirements. These obligations are not provided for in the financial statements are summarised
below:
No later than 12 months
Between 12 months and 5 years
Greater than 5 years
Consolidated
2020
$
65,500
58,125
-
2019
$
81,000
166,000
-
123,625
247,000
(b)
Earn-in agreement for exploration claims:
In September 2016 the Group agreed to earn into a project comprising of 87 Placer Claims (ULI Project). Legal
agreements were completed in March 2017 with Voyageur Minerals Inc. (Voyageur) for the Group to earn up
to a 70% interest in these 87 Placer Claims.
An initial 10% interest was earned upon signing the joint venture agreement and in consideration for payment
of a fee of US$75,000.
A further 40% interest was earned through completion of agreed milestones, which included defining the
location(s) for one or more drill holes, completing a NI 43-101 technical report, and expending US$666,000
(any underspent portion of which could be deferred to the next stage of the earn-in without the additional 40%
interest being affected). The achievement of these milestones increased the Group’s intertest in the 87 claims
of the ULI Project to 50%1.
At the date of this Report, the joint venture partner, Voyageur, (current holding of 50% interest) had not
completed the formalities to transfer the claims to the joint venture company as required under the agreement.
This has not had any impact on this financial report.
(c)
Operating lease commitments:
The Group is the lessee in respect of certain low value items which have not been capitalised.
At the reporting date, the Group had outstanding minimum commitments under these non-cancellable
operating leases, which fall due as follows:
No later than 12 months
Between 12 months and 5 years
Greater than 5 years
Consolidated
2020
$
2019
$
5,977
629
-
6,606
1 Anson commenced with a 10% interest in these 87 claims which increased to 50% from the work done and may be
subject to finalisation under the terms of the agreement to earn-into the ULI Project.
2020 Annual Financial Report
-
-
-
-
58
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 21: COMMITMENTS AND CONTINGENCIES (continued)
(d)
Hire purchase commitments
The Group leases certain plant and equipment under a lease of 3 years. The Group’s obligations under the
lease are secured by the lessors’ title to the leased assets.
Consolidated
2020
$
2019
$
-
-
-
-
-
3,465
-
3,465
(104)
3,361
- no later than 12 months
- between 12 months and 5 years
- Total minimum lease payments
- Less: amounts representing finance charges
- Present value of minimum lease payments
(e)
Contingent liabilities
The are no contingent liabilities as at 30 June 2020.
(f)
Loan funded share plan contingent asset
The Company has issued shares to key management personnel under a loan funded share plan. The grant
of these securities is accounted for as a share based payment with the value having been calculated using a
Black-Scholes option pricing model at the date of issue. Notwithstanding the accounting treatment of the loan
funded share plan as an option, the shares are restricted and can only be released upon the holder paying the
loan attached to the shares. The balance of the contingent asset increased due to interest and was:
Loan funded share plan contingent asset
NOTE 22: RELATED PARTY DISCLOSURE
(a)
Subsidiaries
Consolidated
2020
2019
$
$
161,957 149,512
161,957 149,512
The consolidated financial statements include the financial statements of Anson Resources Limited and the
subsidiaries listed in the following table:
Name
Tikal Minerals SA (i)
Rhodes Resources Pty Ltd
Western Cobalt Pty Ltd
A1 Lithium Inc.
Paradox Lithium LLC
Blackstone Resources Inc (ii)
State Exploration Pty Ltd
Country of
Incorporation
%
Equity Interest
2020
%
Equity interest
2019
Guatemala
Australia
Australia
USA
USA
USA
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
-
(i)
(ii)
One share owned by Bruce Richardson, Executive Chairman and CEO, beneficially held on behalf of Anson
Resources Limited. 4,999 shares held by Anson Resources Limited directly.
Incorporated 15 November 2018.
2020 Annual Financial Report
59
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 22: RELATED PARTY DISCLOSURE (continued)
(b)
Ultimate parent
Anson Resources Limited is the ultimate Australian parent entity and ultimate parent of the Group.
(c)
Key management personnel (KMP)
Refer to Note 23 for details of compensation to key management personnel.
In addition to the compensation shown at Note 23, during the prior year the Group entered into an agreement
with Lilac Solutions Inc. (“Lilac”) an entity associated with Non-executive Director Alex Grant in relation to the
design and engineering of an ion exchange plant. The services were provided at arm’s length commercial
rates. During the current year this amounted to $28,713 (2019: $134,489).
There were no other transactions with KMPs or their associated entities during the prior year or the current
year.
(d)
Loan funded share plan contingent asset
The Company has issued shares to key management personnel under a loan funded share plan. The grant
of these securities is accounted for as a share based payment with the value having been calculated using a
Black-Scholes option pricing model at the date of issue. Notwithstanding the accounting treatment of the loan
funded share plan as an option, the shares are restricted and can only be released upon the holder paying the
loan attached to the shares. The balance of the contingent asset increased due to interest and was:
Loan funded share plan contingent asset
NOTE 23: COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2020
$
161,957
161,957
2019
$
149,512
149,512
Consolidated
2020
$
2019
$
961,166
873,321
18,663
338,041
7,775
22,815
1,317,870
903,911
Refer to the Remuneration Report for further information.
NOTE 24: EVENTS AFTER BALANCE DATE
On 15 July 2020 the Company announced it had closed its Share Purchase Plan (SPP) and had received
$1.045 million in valid acceptances.
On 18 July 2020, 15,816,819 unlisted options with an exercise price of 20 cents per option expired unexercised.
On 22 July 2020 the Company announced it has received firm commitments to raise $0.9 million (before costs)
in its Top Up Placement (Placement).
On 22 July 2020 Anson announced 1,800,000 shares were issued upon the vesting of performance rights,
being the completion of the PEA for the Paradox Brine Project.
On 24 July 2020 the Company announced it had completed its Placement raising $1.160 million (before costs)
and a combined $2.205 million (before costs) from the SPP and Placement.
2020 Annual Financial Report
60
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 24: EVENTS AFTER BALANCE DATE (continued)
On 10 September 2020 the Company announced that a Plan of Operations (PoO) had been submitted to the
USA Federal Government, Bureau of Land Management (BLM) for the re-entry of two additional wells.
On 21 September 2020 the Company announced the results of a review of historical data from the Ajana
project and the intention to commence an initial low-cost base metals exploration program.
Other than the above there has not arisen in the interval between the end of the financial year and the date of
this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors
of the Company, to affect significantly the operations of the Group and the results of those operations.
NOTE 25: AUDITOR’S REMUNERATION
Amounts received or due and receivable by the auditors for:
Audit or review of the financial reports of the Group
NOTE 26: FINANCIAL RISK MANAGEMENT
Consolidated
2020
$
2019
$
29,625
29,625
42,949
42,949
The Group’s financial situation is not complex. Its activities may expose it to a variety of financial risks in the
future: market risk (including currency risk and fair value interest rate risk), credit risk, liquidity risk and cash
flow interest rate risk. At that stage the Group’s overall risk management program will focus on the
unpredictability of the financial markets and seek to minimise potential adverse effects on the financial
performance of the Group.
Risk management is carried out under an approved framework covering a risk management policy and internal
compliance and control by management. The Board identifies, evaluates and approves measures to address
financial risks.
The Group holds the following financial instruments:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Other assets - deposits and bonds paid
Financial Assets – Fair Value OCI
Financial Liabilities
Trade and other payables
Lease liabilities
Convertible Note
Derivative financial liability
(a)
Market risk
Cash flow and fair value interest rate risk
Consolidated
2020
$
2019
$
568,250
1,855,438
23,803
676,403
94,810
3,226
771,924
146,833
1,363,266
2,777,421
600,531
162,821
553,882
635,122
749,944
234,449
-
-
1,952,356
984,393
The Group receives interest on its cash management accounts based on daily balances at variable rates. The
Group’s operating accounts do not attract interest. The Group did not have any deposits at fixed rates during
the year. Deposits at variable rates expose the Group to cash flow interest rate risk.
2020 Annual Financial Report
61
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 26: FINANCIAL RISK MANAGEMENT (continued)
At reporting date the interest rate profile of the Group’s interest bearing financial instruments was:
Variable rate instruments
Cash at bank
Fixed rate instruments
Lease liabilities
Convertible note
Consolidated
2020
$
2019
$
568,250
1,855,438
162,821
553,882
716,703
234,449
-
234,449
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates would increase or decrease the Group’s loss by $5,683 (2019:
$18,554), based on the cash at bank at reporting date and calculated on an annual basis. The Board assessed
a 100 basis point movement as being reasonably possible based on short term historical movements. This
analysis assumes that all other variables remain constant.
Foreign currency risk
As a result of USD cash deposits, the Group's statement of financial performance can be affected significantly
by movements in the US$/A$ exchange rates.
The Group also has transactional currency exposures. Such exposure arises from sales or purchases by an
operating entity in currencies other than the functional currency.
The Group had the following exposure to US$ foreign currency expressed in A$ equivalents, which are not
designated as cash flow hedges:
Financial Assets
Cash and cash equivalents
Other assets - deposits and bonds paid
Financial Liabilities
Trade and other payables
Lease Liabilities
Consolidated
2020
$
2019
$
269,992
666,720
936,712
430,932
786,646
1,217,578
452,915
141,399
594,314
432,539
271,614
704,513
The Group had the following exposure to Canadian Dollar foreign currency expressed in A$ equivalents, which
are not designated in cash flow hedges:
Financial Assets
Investments
Consolidated
2020
$
2019
$
94,810
94,810
146,833
146,833
2020 Annual Financial Report
62
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 26: FINANCIAL RISK MANAGEMENT (continued)
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to exchange rates:
Year ended 30 June 2020
+/- 5% in $A/$US
+/- 5% in $A/$CAD
Year ended 30 June 2019
+/- 5% in $A/$US
+/- 5% in $A/$CAD
Other price risk
Consolidated
Profit/loss
$
Equity
$
-
-
248
-
352,805
4,515
280,751
6,738
Other price risk relates to the risk that the fair value of future cash flows on a financial instrument will fluctuate
because of changes in market prices due to demand and supply factors (other than those arising from interest
rate or currency risk).
The Group is exposed to securities price risk on financial assets FVOCI listed on the TSX Venture Exchange
in Canada in the metals and mining sector.
At 30 June 2020, the Group had the following exposure to security price risk:
Financial Assets
Investments
Consolidated
2019
$
2020
$
94,810
146,833
94,810
146,833
The following table illustrates sensitivities to the Group’s exposures to security price risk:
Year ended 30 June 2020
+/- 20% in listed investments
Year ended 30 June 2019
+/- 20% in listed investments
(b)
Credit risk
Consolidated
Profit/loss
$
Equity
$
-
18,962
-
29,367
The Group has no significant concentrations of credit risk. Cash transactions are limited to high credit quality
financial institutions.
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well
as credit exposures on outstanding receivables and committed transactions. In relation to other credit risk
areas management assesses the credit quality of the customer, taking into account its financial position, past
experience and other factors.
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets as
summarised at the beginning of this note.
2020 Annual Financial Report
63
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 26: FINANCIAL RISK MANAGEMENT (continued)
(c)
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an
adequate amount of committed credit facilities and the ability to close-out market positions. The Group
manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity
profiles of financial assets and liabilities. The Group will aim at maintaining flexibility in funding by accessing
appropriate committed credit lines available from different counterparties where appropriate and possible.
Surplus funds when available are generally only invested in high credit quality financial institutions in highly
liquid markets.
The Group has no borrowing facilities.
(d)
Capital Risk Management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising
the return to shareholders. The capital structure of the Company consists of equity attributable to equity
holders, comprising issued capital and reserves as disclosed in Notes 17 and 18.
The Board reviews the capital structure on a regular basis and considers the cost of capital and the risks
associated with each class of capital. The Company will balance its overall capital structure through new share
issues as well as the issue of debt, if the need arises.
As part of the management of capital in the prior period the Company arranged an equity funding facility of
$15 million. Under the terms of the facility, the Company may, at its discretion, call for the subscriber to
subscribe for shares in the Company at any time until April 2021, up to a total placement amount of
$15,000,000. Each placement amount is up to $250,000 in any period of 20 trading days (and up to $1,500,000
with the prior consent of the subscriber).
Shares issued to the subscriber will be priced at the average of 2 daily volume weighted average prices
(VWAP) of Company shares nominated by the subscriber from those during the 20 trading days which follow
a placement notice being given by the Company to the subscriber (but cannot be priced at less than the
minimum acceptable price specified by the Company in a placement notice). A commission of 5% will be
payable by the Company at the time of issue.
The Company raised $nil (2019: $250,000) under this equity placement facility during the financial year. See
note 17(a).
(e)
Changes in liabilities arising from financing activities
1 July 2019
New
Leases
Cash
Flows
Other
30 June
2020
Current Finance Leases and hire
purchase contracts
Current right of use leases
Convertible note
Non - Current Finance Leases and hire
purchase contracts
Non - Current right of use leases
Total liabilities from financing activities
3,627
83,102
-
-
147,720
234,449
-
-
-
-
-
-
(3,627)
-
-
(71,732)
101,118
112,488
1,089,554
(535,672)
553,882
-
-
1,014,195
-
(97,387)
(531,941)
-
50,333
716,703
1 July
2018
New
Leases
Cash
Flows
Other
30 June
2019
Current Finance Leases and hire
purchase contracts
3,354
-
(3,354)
3,627
3,627
Current right of use leases
-
81,748
(19,649)
21,003
83,102
Non - Current Finance Leases and hire
purchase contracts
Non - Current right of use leases
Total liabilities from financing activities
2020 Annual Financial Report
3,627
-
6,981
-
159,286
-
-
(3,627)
(11,566)
-
147,720
241,034
(23,003)
9,437
234,449
64
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Anson Resources Limited
NOTE 26: FINANCIAL RISK MANAGEMENT (continued)
The ‘Other’ column includes the effect of reclassification of non-current portion of interest-bearing loans and
borrowings, including obligations under finance leases and hire purchase contracts to current due to the
passage of time and the effect of accrued but not yet paid interest on interest-bearing loans and borrowings.
The Group classifies interest paid as cash flows from operating activities.
NOTE 27: CASH FLOW INFORMATION
(i)
Reconciliation of loss after income tax to net cash flows from operating activities:
Loss for the year
Adjustments for:
Depreciation
Loss on derivative instrument FVPL
Share-based payments
Interest income
Interest expense
Gain on sale of property, plant & equipment
Unrealised foreign exchange differences
Changes in operating assets and liabilities:
Decrease/(increase) in trade and other receivables
Decrease/(Increase) in other assets
(Decrease)/Increase in trade and other payables
(Decrease)/Increase in provisions
Net cash outflow from operating activities:
(ii) Non-cash investing and financing activities
Consolidated
2020
$
2019
$
(3,596,915)
(6,179,749)
158,019
2,610
720,941
(335)
116,287
(12,273)
27,247
91,813
-
270,399
(10,654)
7,336
-
(9,369)
(2,584,419)
(5,830,224)
(20,577)
229,236
(153,289)
(392,537)
18,140
(136,381)
477,155
866,255
(2,921,586)
(4,605,055)
During the year the Group undertook the following non-cash investing and financing activities:
•
Issue of 12,500,000 shares valued at $300,000 to two vendors as consideration for the acquisition of
an exploration tenement in Western Australia via the acquisition of State Exploration Pty Ltd.
During the previous financial year the Group undertook the following non-cash investing and financing
activities:
•
Issue of 1,000,000 shares to a consultant of the Group as consideration for his services in relation to
securing exploration tenements in Utah, USA.
Issue of 3,000,000 shares to a vendor as consideration for the acquisition of exploration tenements
in Utah, USA.
Issue of 1,208,981 shares to an equity participant in lieu of fees for entering into an equity placement
agreement.
•
•
• Acquisition of 2 properties with a cost value of $257,830 via lease and recorded in accordance with
AASB 16 Leases.
2020 Annual Financial Report
65
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 28: PARENT ENTITY INFORMATION
(a)
Information relating to Anson Resources Limited
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net (liabilities)/assets
Contributed equity
Reserves
Accumulated losses
Total shareholders’ equity
Loss of the parent entity
Total comprehensive loss of the parent entity
(b) Guarantees
Anson Resources Limited
Consolidated
2020
$
2019
$
317,900
435,202
1,431,585
329,594
753,102
1,761,179
(1,495,001)
(566,945)
-
(32,805)
(1,495,001)
(599,750)
(741,899)
1,161,428
21,838,998
19,700,213
2,175,816
1,596,624
(24,756,713)
(20,135,409)
(741,899)
1,161,428
(4,621,304)
(7,405,138)
(4,657,220)
(7,398,681)
No guarantees have been entered into by the Company in relation to the debts of its subsidiaries.
(c) Commitments and Contingencies
Commitments and contingencies of the Company as at reporting date are disclosed in Note 21 to the
financial statements.
NOTE 29: FAIR VALUE MEASUREMENT
Fair value hierarchy
The following table details the Group’s assets and liabilities, measured or disclosed at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly.
• Level 3: Unobservable inputs for the asset or liability.
2020 Annual Financial Report
66
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
NOTE 29: FAIR VALUE MEASUREMENT (continued)
Anson Resources Limited
The following table details the Group’s assets and liabilities measured or disclosed at fair value.
2020
Assets
Financial Assets - FVOCI
Total assets
Liabilities
Derivative Liability
Total liabilities
2019
Assets
Financial Assets - FVOCI
Total assets
Level 1
$
Level 2
$
Level 3
$
Total
$
94,810
94,810
-
-
-
-
94,810
94,810
635,122
635,121
-
635,122
635,121
-
146,833
146,833
-
-
-
-
146,833
146,833
Estimates of fair value take into account factors and market conditions evident at balance date. Uncertainty
and changes in global market conditions in the future may impact fair values in the future.
Transfers between level 1 and 3
There were no movements between different fair value measurement levels during the financial year (2019:
none).
2020 Annual Financial Report
67
Anson Resources Limited
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors:
a)
the financial statements and notes of the Group are 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 2020 and of
its performance for the year ended 30 June 2020; and
(ii)
complying with Accounting Standards and Corporations Regulations 2001;
(iii)
the financial statements and notes thereto are in accordance with International
Financial Reporting Standards issued by the International Accounting Standards
Board; and
b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
2.
This declaration has been made after receiving the declarations required to be made to the Directors
in accordance with Section 295A of the Corporations Act 2001 for the year ended 30 June 2020.
This declaration is signed in accordance with a resolution of the Board of Directors.
Bruce Richardson
Executive Chairman and CEO
25 September 2020
2020 Annual Financial Report
68
Stantons International Audit and Consulting Pty Ltd
trading as
Chartered Accountants and Consultants
PO Box 1908
West Perth WA 6872
Australia
Level 2, 1 Walker Avenue
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
ANSON RESOURCES LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Anson Resources Limited (the “Company”) and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2020, the
consolidated statement of profit and 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 statements, 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)
(ii)
giving a true and fair view of the Group's financial position as at 30 June 2020 and of its financial
performance for the year then ended; and
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 auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards
Board's APES 110 Code of Ethics for Professional Accountants (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1(a)(ii) in the financial report, which describes the financial report being prepared
on a going concern basis. The Group incurred a loss for the year of $3,596,915, had cash and cash
equivalents of $568,250, a net working capital deficit of $1,442,099 and net cash outflows from operating
activities of $2,921,586.
The ability of the Group to continue as a going concern and meet its planned exploration, administration and
other commitments is dependent upon the Group raising further working capital and/or successfully exploiting
its mineral assets. In the event that the Group is not successful in raising further equity or successful in
exploiting its mineral assets, the Group may not be able to meet its liabilities as and when they fall due and the
realisable value of the Group’s current and non-current assets may be significantly less than book values.
Our opinion is not modified in respect of this matter.
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.
Liability limited by a scheme approved
under Professional Standards Legislation
Key audit matter
How our audit addressed the key audit matter
Classification and valuation of convertible notes
As disclosed in Note 15 to the consolidated financial
statements, in January 2020, the Company completed the
issue of a convertible note to its strategic investor. This
convertible note has a face value of US$750,000, with a
maturity date of 20 January 2023 and an annual coupon
rate of 5% per annum.
Accounting for convertible note was considered a key
audit matter due to:
▪
the complexity involved in assessing whether to
account for the notes as equity, a liability or a
combination of both;
▪ measurement at initial recognition of the individual
components of the liability based on the terms and
conditions of the agreement and the significant
judgment in determining the fair value of the separate
components of the liability; and
Inter alia, our procedures included the following:
▪ Obtaining an understanding of and assessing the
terms and conditions of the convertible note
agreement to determine if the convertible note is
to be accounted for as equity, liability or a
combination of both;
▪ Considering the appropriateness of the valuation
methodology against the requirements of the
relevant Australian Accounting Standards;
▪ Considering the reasonableness of the inputs to
the valuation; and
▪
Assessing the adequacy of the disclosures in
accordance with
the applicable accounting
standards.
▪ measurement subsequent
recognition
including the fair value measurement at balance date.
initial
to
Capitalised development costs
As disclosed in Note 10 to the consolidated financial
statements,
the capitalised
development costs at 30 June 2020 was $2,517,958
(2019: $1,095,826).
the carrying value of
We identified the capitalisation of development costs as a
key audit matter due to the size and nature of the amount
and due to the significant management judgment about
the future performance and viability of the project.
The Group conducts a significant level of development
activities and has to apply judgment in identifying costs
the
that meet
requirements of the accounting standards.
for capitalisation under
the criteria
Inter alia, our procedures included the following:
▪
▪
▪
▪
Evaluating
expenses
intangible assets;
the nature of
incurred
the development
that are capitalised as
the
Assessing
the
capitalisation based on our knowledge of the
business and industry;
reasonableness
of
Evaluating
the appropriateness of expenses
capitalised, on a sample basis, by agreeing
material costs incurred to external invoices and
other relevant supporting documents; and
Assessing whether any
the
capitalised development costs was necessary at
30 June 2020.
impairment of
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group's annual report for the year ended 30 June 2020, but does not include the financial
report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
have performed, we conclude 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.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the financial report.
The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and
fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial
report.
We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures
in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
We evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that achieves
fair presentation.
We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.
The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance
in the audit of the consolidated financial report of the current period and are therefore key audit matters. We
describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 13 to 21 of the directors’ report for the year
ended 30 June 2020. 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.
Opinion on the Remuneration Report
In our opinion the Remuneration Report of Anson Resources Limited for the year ended 30 June 2020
complies with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
25 September 2020
Anson Resources Limited
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report
is as follows. The information is current as at 22 September 2020.
(A)
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
• 783,451,069 fully paid ordinary shares are held by 3,274 individual shareholders.
All issued fully paid ordinary shares carry one vote per share and carry the rights to dividends.
Options
• 11,514,105 options expiring 15 May 2022 and exercisable at $0.08685 are held by 1 option holder.
• 10,000,000 options expiring 10 Sept. 2021 and exercisable at $0.06 are held by 1 option holder.
• 62,500,000 options expiring 30 June 2023 and exercisable at $0.035 are held by 66 option holders.
Options do not carry a right to vote.
The number of security holders by size of holding are:
Fully paid ordinary shares
Options
Range
Holders
Units
%
Holders
Units
1,000
-
-
5,000
- 10,000
- 100,000
- Over
1
1,001
5,001
10,001
100,001
Total
101
369
470
1,475
859
3,274
5,775
1,290,340
3,927,168
60,744,571
717,483,215
0.00
0.16
0.50
7.75
91.59
783,451,069
100.00
-
-
-
41
27
68
Unquoted equity securities shareholdings greater than 20%
-
-
-
1,450,000
82,564,105
%
-
-
-
1.73
98.27
84,014,105
100.00
Unlisted options with an exercise price of $0.08685 and expiring 16 May 2022
LS WHITEHALL GROUP INC
Number %
11,514,105 100
Unlisted options with an exercise price of $0.06 and expiring 10 September 2021
CHIA TAI XINGYE INTERNATIONAL
Number %
10,000,000 100
Unlisted convertible note with a face value of US750,000, maturing 20 January 2023 with a conversion price
of A$0.028
CHIA TAI XINGYE INTERNATIONAL
Number %
1 100
(B)
SUBSTANTIAL SHAREHOLDERS
Fully paid
Ordinary shareholders
Number
Percentage
CHIA TAI XINGYE INTNL
117,500,000
15.00%
2020 Annual Financial Report
72
ASX ADDITIONAL INFORMATION (continued)
(C)
TWENTY LARGEST SECURITY HOLDERS
Ordinary shareholders
CHIA TAI XINGYE INTERNATIONAL
MR DESHUN SHI
RICHARDSON BUSINESS CONSULTANTS PTY LTD
P.G. KNOX
APEDAILE STEVEN J + ML
CITICORP NOMINEES PTY LIMITED
MR DARREN MICHAEL WARNE
MR BASSAM OTHMAN
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
JACK THE DOG PTY LTD
BRUCE RICHARDSON
MRS XIAOXUAN LI
MR LI XIAO
MRS BHAVYA RAVIKIRAN
MR TOMAS SONER
WO WAH INDUSTRIAL INVESTMENT LIMITED
LS WHITEHALL GROUP INC
SABA NOMINEES PTY LTD
BULL EQUITIES PTY LTD
MR HOLDEN CHENG
Anson Resources Limited
Fully paid
Number
117,500,000
16,641,925
15,403,636
15,158,270
12,200,000
10,666,256
10,000,000
9,640,000
9,283,267
9,018,850
8,326,951
8,150,000
7,650,000
6,713,640
6,500,000
6,000,000
5,542,564
5,141,000
5,000,000
4,948,894
Percentage
15.00%
2.12%
1.97%
1.93%
1.56%
1.36%
1.28%
1.23%
1.18%
1.15%
1.06%
1.04%
0.98%
0.86%
0.83%
0.77%
0.71%
0.66%
0.64%
0.63%
289,485,253
36.96%
2020 Annual Financial Report
73
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
(D)
UNMARKETABLE PARCELS
There were 1,550 holdings (16,136,063 shares in total) of less than a marketable parcel of ordinary shares at
22 September 2020.
(E)
VOTING RIGHTS
The voting rights attaching to ordinary shares are:
On a show of hands, each member present in person or by proxy has one vote, and upon a poll, each share
has one vote.
Options do not carry any voting rights.
(F)
ON-MARKET BUY BACK
There is no current on-market buy-back.
(G)
PRINCIPLES OF GOOD CORPORATE GOVERNANCE AND RECOMMENDATIONS
The Board has adopted and approved the Company’s Corporate Governance Statement, which can be found
on the Company’s website at www.ansonresources.com/corporate.
(H)
RESTRICTED SECURITIES
There are currently 8,750,000 employee loan plan shares on issue which can be released once the amounts
owing on them are paid.
(I)
MINERAL TENEMENTS
The Group holds the following tenements:
2020 Annual Financial Report
74
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
Project
Lease
Commodity
Holder
Locality
Status
Ajana
E66/89,
Graphite and
base metals
Rhodes Resources
Pty Ltd
Western
Australia
Granted
E66/94 and
E66/100
Graphite and
base metals
Anson Resources
Limited
Western
Australia
Hooley Well
E9/2218
Cobalt, nickel Western Cobalt Pty
Ltd
Western
Australia
E9/2219
Cobalt, nickel
Anson Resources
Limited
Western
Australia
E66/94 granted,
E66/100 under
application
Granted
Granted
The Bull
E70/5420
Ni-Cu-PGE
State Exploration
Pty Ltd
Western
Australia
Under Application
Paradox
Brine
155 Placer
Claims
Paradox
Brine
32 Placer
Claims
Paradox
Brine
191 Placer
Claims
Paradox
Brine
1Potash &
Mineral
Lease
Paradox
Brine
1 Oil & Gas
Lease
Paradox
Brine
1 Industrial
Permit
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Yellow Cat
Project
85 Lode
Claims
Vanadium
and Uranium
Blackstone
Resources Inc
Utah, USA
(vii)
(i) Anson currently holds a 100% interest in 155 Placer Claims in Utah, USA. Under the terms of an
earn-in agreement for the ULI Project, these placer claims may be subject to area of interest
provisions of the agreement to earn-into the ULI Project.
These claims are referred to as ULI201, ULI202, ULI203, ULI204, ULI205, ULI206, ULI207, ULI208,
ULI209, ULI210, ULI211, ULI212, ULI213, ULI214, ULI215, ULI216, ULI217, ULI218, ULI219,
ULI220, ULI225, ULI226, ULI227, ULI228, ULI229, ULI230, ULI231, ULI232, ULI233, ULI234,
ULI235, ULI236, ULI237, ULI238, ULI239, ULI240, ULI241, ULI242, ULI243, ULI244, ULI245,
ULI249, ULI250, ULI251, ULI252, ULI253, ULI254, ULI255, ULI256, ULI257, ULI258, ULI259,
ULI260, ULI261, ULI262, ULI263, ULI264, ULI265, ULI266, ULI267, ULI268, ULI269, ULI273,
ULI274, ULI275, ULI276, ULI277, ULI278, ULI279, ULI280, ULI281, ULI282, ULI283, ULI284,
ULI285, ULI286, ULI287, ULI288, ULI289, ULI293, ULI294, ULI295, ULI296, ULI297, ULI298,
ULI299, ULI300, ULI301, ULI302, ULI303, ULI304, ULI305, ULI306, ULI307, ULI311, ULI312,
ULI313, ULI314, ULI315, ULI316, ULI317, ULI318, ULI319, ULI320, ULI321, ULI322, ULI323,
ULI324, ULI325, ULI326, ULI330, ULI331, ULI332, ULI333, ULI334, ULI335, ULI336, ULI337,
ULI338, ULI339, ULI340, ULI341, ULI342, ULI343, ULI344, ULI345, ULI350, ULI351, ULI352,
2020 Annual Financial Report
75
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
ULI353, ULI354, ULI355, ULI356, ULI357, ULI358, ULI359, ULI360, ULI361, ULI362, ULI369,
ULI370, ULI371, ULI372, ULI373, ULI374, ULI375, ULI376, ULI379, ULI380, ULI381, ULI382,
ULI383, ULI384, ULI385, ULI386,
(ii) Anson currently holds a 100% interest in 71 Placer Claims in Utah, USA. Under the terms of an
earn-in agreement for the ULI Project, these placer claims may be subject to area of interest
provisions of the agreement to earn-into the ULI Project.
These claims are referred to as ULI501, ULI525, ULI549, ULI573 ULI597, ULI621, ULI645, ULI646,
ULI647, ULI648, ULI653, ULI654, ULI655, ULI656, ULI661, ULI662, ULI663, ULI664, ULI665,
ULI666, ULI667, ULI668, ULI669, ULI670, ULI671, ULI672, ULI673, ULI674, ULI675, ULI676,
ULI677, ULI678, ULI679, ULI680, ULI681, ULI682, ULI683, ULI688, ULI689, ULI690, ULI691,
ULI696, ULI697, ULI698, ULI699, ULI700, ULI701, ULI702, ULI703, ULI704, ULI705, ULI706,
ULI707, ULI708, ULI709, ULI710, ULI711, ULI712, ULI713, ULI714, ULI715, ULI716, ULI717,
ULI718, ULI719, ULI720, ULI721, ULI722, ULI723, ULI724, and ULI725.
(iii) Anson currently holds a 100% interest in 191 Placer Claims in Utah, USA.
These claims are referred to as, ULI620,ULI644, ULI649, ULI650, ULI651, ULI652, ULI657,
ULI658, ULI659, ULI660, ULI726, ULI727, ULI728, ULI729, ULI730, ULI731, ULI732, ULI733,
ULI734, ULI735, ULI736, ULI737, ULI738, ULI739, ULI740, ULI741, ULI742, ULI743, ULI744,
ULI745, ULI746, ULI747, ULI748, ULI749, ULI750, ULI751, ULI752, ULI753, ULI754, ULI755,
ULI756, ULI757, ULI758, ULI759, ULI760, ULI761, ULI762, ULI763, ULI764, ULI765, ULI766,
ULI767, ULI768, ULI769, ULI770, ULI771, ULI772, ULI773, ULI774, ULI775, ULI776, ULI777,
ULI778, ULI779, ULI780, ULI781, ULI782, ULI783, ULI784, ULI785, ULI786, ULI787, ULI788,
ULI789, ULI790, ULI791, ULI792, ULI793, ULI794, ULI795, ULI844, ULI845, ULI846, ULI847,
ULI848, ULI849, ULI850, ULI851, ULI852, ULI853, ULI854, ULI855, ULI856, ULI857, ULI858,
ULI859, ULI860, ULI861, ULI862, ULI863, ULI864, ULI865, ULI866, ULI867, ULI868, ULI869,
ULI870, ULI871, ULI872, ULI873, ULI874, ULI875, ULI876, ULI877, ULI878, ULI879, ULI880,
ULI881, ULI882, ULI883, ULI884, ULI885, ULI886, ULI887, ULI888, ULI889, ULI890, ULI891,
ULI892, ULI893, ULI894, ULI895, ULI896, ULI897, ULI898, ULI899, ULI900, ULI901, ULI902,
ULI903, ULI904, ULI905, ULI906, ULI907, ULI908, ULI909, ULI910, ULI911, ULI912, ULI913,
ULI914, ULI915, ULI916, ULI917, ULI918, ULI919, ULI920, ULI921, ULI922, ULI923, ULI924,
ULI925, ULI926, ULI927, ULI928, ULI929, ULI930, ULI931, ULI932, ULI933, ULI934, ULI935,
ULI936, ULI937, ULI938, ULI939, ULI940, ULI941, ULI942, ULI943, ULI944, ULI945, ULI946,
ULI947, ULI948, ULI949, ULI950, ULI951, ULI952, ULI953 and ULI954.
(iv) Anson currently holds a 100% interest in 1SITLA Potash and Mineral Salts Lease in Utah, USA.
This claim is referred to as ML53853-OBA.
(v) Anson currently holds a 100% interest in 1 SITLA Oil and Gas Lease in Utah, USA. This claim is
referred to as ML53883-OBA.
(vi) Anson currently holds a 100% interest in 1 SITLA Industrial Permit in Utah, USA. This claim is
referred to as SULA1872.
(vii) Anson currently holds a 100% interest in 85 lode claims. These claims are referred to as
YELLOWCAT002, YELLOWCAT011, YELLOWCAT012, YELLOWCAT013, YELLOWCAT014,
YELLOWCAT015, YELLOWCAT016, YELLOWCAT017, YELLOWCAT018, YELLOWCAT019,
YELLOWCAT020, YELLOWCAT021, YELLOWCAT022, YELLOWCAT023, YELLOWCAT024,
YELLOWCAT025, YELLOWCAT039, YELLOWCAT041, YELLOWCAT042, YELLOWCAT043,
YELLOWCAT044, YELLOWCAT045, YELLOWCAT046, YELLOWCAT047, YELLOWCAT048,
YELLOWCAT049, YELLOWCAT050, YELLOWCAT051, YELLOWCAT052, YELLOWCAT053,
YELLOWCAT054, YELLOWCAT055, YELLOWCAT056, YELLOWCAT057, YELLOWCAT058,
YELLOWCAT059, YELLOWCAT060, YELLOWCAT061, YELLOWCAT073, YELLOWCAT074,
YELLOWCAT076, YELLOWCAT078, YELLOWCAT080, YELLOWCAT082, YELLOWCAT083,
YELLOWCAT084, YELLOWCAT086, YELLOWCAT236, YELLOWCAT238, YELLOWCAT240,
2020 Annual Financial Report
76
ASX ADDITIONAL INFORMATION (continued)
YELLOWCAT242, YELLOWCAT244, YELLOWCAT246, YELLOWCAT271, YELLOWCAT272,
YELLOWCAT273, YELLOWCAT274, YELLOWCAT275, YELLOWCAT276, YELLOWCAT277,
YELLOWCAT278, YELLOWCAT284, YELLOWCAT312, YELLOWCAT314, and JM#1 to
JM#22.
Anson Resources Limited
2020 Annual Financial Report
77