Anson Resources Limited
(ABN 46 136 636 005)
Financial Report
for the Year Ended 30 June 2022
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 Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
1
2
35
36
37
38
39
40
86
87
90
2022 Annual Financial Report
Anson Resources Limited
Auditor
Stantons
40 Kings Park Road
West Perth WA 6005
Corporate Information
Directors
Bruce Richardson
Executive Chairman and CEO
Peter (Greg) Knox
Executive Director
Michael van Uffelen
Non-executive Director
Company Secretary
Nicholas Ong
Registered and Principal Office
Share Registry
Level 1
35 Outram Street
West Perth WA 6005
Advanced Share Registry Limited
110 Stirling Highway
Nedlands WA 6009
Telephone: +61 478 491 355
Telephone: 1300 113 258
Email: info@ansonresources.com
Web address: www.advancedshare.com.au
Web Address
www.ansonresources.com
Securities Exchange Listings
Australian Securities Exchange: (ASX: ASN,
ASNOC, ASNOD)
OTC Markets Group (OTCQB: ANSNF)
ABN:
46 136 636 005
2022 Annual Financial Report
1
Anson Resources Limited
Directors’ Report
Your Directors submit their report on the Group consisting of Anson Resources Limited (the “Company” or
“Anson”) and its controlled entities (the “Group”) for the year ended 30 June 2022.
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 (Director since 30 April 2009)
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 (Director since 22 September 2011)
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 (Director since 18 October 2018)
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 27 May 2022)
-
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:
Fully paid
ordinary shares
No.
Performance
Rights
No.
Options Ex $0.20
expiring 31 July 2023
No. *
Bruce Richardson
Peter (Greg) Knox
25,094,223
15,320,270
Michael van Uffelen
* Bonus options resulting from the issuance of ordinary shares
531,300
12,200,000
5,200,000
3,600,000
-
162,000
48,300
2022 Annual Financial Report
2
Anson Resources Limited
Directors’ Report (continued)
Company Secretary
Nicholas Ong, B.Comm, MBA, GradDipAppFin, GradDipACG (Appointed on 30 November 2020)
Nicholas brings 18 years’ experience in listing rules compliance and corporate governance. He is experienced
in mining project finance, mining and milling contract negotiations, mine CAPEX & OPEX management, and
toll treatment reconciliation. Nicholas is a Fellow of the Governance Institute of Australia and Fellow of Institute
of Chartered Secretaries and Administrators. He holds a Bachelor of Commerce and a Master of Business
Administration from the University of Western Australia.
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;
➢ Development of the Paradox Lithium Project in Utah, primarily for the extraction of lithium and bromine
from brine; and
➢ Exploration of The Bull Project’s mafic-ultramafic intrusive complex which has similar geological
terrane as Chalice Gold Mines Limited’s (ASX:CHN) Julimar Ni-Cu-PGE Discovery.
Operating and financial review
Paradox Lithium Project – Utah, USA
Key focus areas during the year were resource expansion and advancing the Definitive Feasibility Study
(“DFS”) for the Paradox Lithium Project (“Project”). Anson intends to use these results to further discussions
with prospective off-take partners.
The DFS confirmed the Project’s advanced potential to become a major supplier of high purity, battery grade
Lithium Carbonate into the US Electrical Vehicle market, initially producing 13,074 tonnes per annum of high
purity Lithium Carbonate over an initial 10 years of project life, and then continuing producing at lower
commercial levels, if no further extraction wells were to come on- line, up to a production life of 23 years.
Anson has been steadily unlocking the lithium and bromine resource potential of the Paradox basin by re-
entering and sampling brine from various historical oil and gas wells, and strategic expansion of Paradox
Project area. Over the past year, Anson has successfully expanded the Paradox Lithium Project area via
staking of new claims:
1. 20% increase in Paradox Basin Project area, ASX announcement 18 October 2021
2. Strategic expansion of Paradox Lithium Project area, ASX announcement 2 February 2022
3. Further strategic expansion of Paradox Lithium Project area, ASX announcement 25 July 2022
Location:
The location of the Project within the Paradox Basin is shown in Figure 1.
2022 Annual Financial Report
3
Directors’ Report (continued)
Anson Resources Limited
Figure 1: Location of the Paradox Brine site.
Definitive Feasibility Study:
On 8 September 2022, Anson announced the completion of the DFS for Phase 1 of its Paradox Lithium Project.
Key financial highlights of Phase 1 DFS are presented in Table 1 below (unless otherwise stated, all cashflows
are in US Dollars, are undiscounted and are not subject to inflation/escalation factors, and all years are
calendar years):
SCENARIO
PRE-TAX (USD)
POST-TAX (USD)
Base Case
Spot Price Case1
NPV (7%)
$1,306m
$5,149m
IRR
47%
98%
NPV (7%)
$922m
$3,768m
IRR
37%
80%
Table 1: Paradox Lithium Project Phase 1 DFS Key financial highlights
1 Lithium Carbonate Spot Price – US$69,400/t Battery grade EXW China price. Source – S&P Capital IQ.
2022 Annual Financial Report
4
Anson Resources Limited
Directors’ Report (continued)
The DFS results confirm the Project’s advanced potential to become a major supplier of high purity, battery
grade Lithium Carbonate into the US Electrical Vehicle market, initially producing 13,074 tonnes per annum of
high purity Lithium Carbonate over an initial 10 years of project life, and then continuing producing at lower
commercial levels, if no further extraction wells were to come on-line, up to a production life of 23 years.
Global engineering group Worley Ltd (Worley) was the lead consultant for the DFS and responsible for the
Class-3 Estimate of the above-ground facilities. Capital and operating costs associated with Direct Lithium
Extraction technology has been provided by Anson’s technology partner, Sunresin New Materials Co. Ltd
(“Sunresin”).
Summary of Key DFS Parameters and Outcomes
Key outcomes and parameters of the DFS are presented in Table 2 below.
Production Parameters
Construction Period
Units
Years
Phase 1
2
Production Rate - Lithium Carbonate
Tonnes per annum
Up to 13,074
Indicated Mineral Resource – Lithium Carbonate
Contained (‘000t)
Recovery – direct lithium extraction
Recovery – carbonation from lithium eluate
Key Financial Parameters
Capital Cost
C1 Operating Costs
Price – Lithium Carbonate
Revenue
Annual EBITDA Margin
Average annual EBITDA
Payback period
IRR Pre Tax
IRR Post Tax
NPV7 pre-tax (Base Case)
NPV7 pre-tax (Spot Case)
%
%
$US Million
US$ / t LCE
239
91.5
88.6
495
4,368
$US/tonne
Forecast Curve
$US Million
5,080
%
$US Million
Years
%
%
$US Million
$US Million
69
153
2
47
37
1,306
5,149
Table 2: Paradox Lithium Project key parameters and outcomes
Mineral Resource Estimate
The Mineral Resource estimate was calculated only for the brine aquifers of Clastic Zones 17, 19, 29, 31, 33
and the Mississippian Units within the Project area and indicates 788,000 tonnes of contained lithium
carbonate equivalent (LCE); 3,523,000 tonnes of bromine. A summary table of JORC Compliant Mineral
Resource Estimate is presented below in Table 3. Significant amounts of other minerals including Boron (Boric
Acid, H3BO3) and Iodine (I2) have also been estimated.
The average mean lithium concentrations range from 11ppm to 196ppm with a maximum recorded
concentration of 253ppm. The bromine concentrations range from 2,240ppm to 3,705ppm with a maximum
recorded concentration of 5,041ppm. A 3D Model of the Paradox Lithium Project was performed with ARANZ
Leapfrog modelling software using stratigraphic data from the 38 wells in the database. The model has been
used to estimate recoverable brine within the Project area using a static model and takes no account of
pumping other than by the application of effective porosity. The 3D model also shows the extent of the clastic
zones sampled to date and Mississippian Units which contain the bine and are open in all directions, see
Figure 2 below.
2022 Annual Financial Report
5
Anson Resources Limited
Directors’ Report (continued)
Resource
Category
Clastic Zone
Brine
Tonnes
(Mt)
Effective
Porosity
(%)
Li
(ppm)
Br
(ppm)
Contained
(‘000t)1
Li2CO3
BR2
Indicated
Inferred
Resource
31
31
Indicated
17,19,29,33
Inferred
17,19,29,33
Resource
Indicated
Mississippian
Inferred
Mississippian
Resource
48
77
125
178
205
383
117
379
4962
15.1
17.1
172
3,043
181
2,540
44
75
178
2,723
118
14
14
7.6
7.6
83
89
86
187
187
187
3,377
3,386
3,382
3,793
3,793
79
97
176
116
377
145
196
341
603
695
1,298
444
1,439
3,793
4932
1,8832
TOTAL
1,005
788
3,523
Table 3: Paradox Lithium Project Mineral Resource Estimate.
Figure 2: Paradox Lithium Project View showing surface topography, wells and modelled clastic zones and
Mississippian Units.
The conceptual hydrogeological model for the brine aquifers within the clastic zones has four extensively
fractured geological units comprising of the following interbedded units (from top to bottom).
• Anhydrite (upper layer);
• Black Shale;
• Dolomite; and
• Anhydrite (lower layer).
2022 Annual Financial Report
6
Anson Resources Limited
Directors’ Report (continued)
Anson has re-entered historic oil wells to depths of up to 2,600 metres in the Paradox Lithium Project area.
The wells have an average spacing of 1.6km (ranging between 1.3km and 3.0km). The bores have delineated
aquifers containing hyper-saline brine with total dissolved solids (TDS) ranging between 350,000 mg/L and
410,000 mg/L. The brine is enriched with respect to lithium, bromine, and other recoverable minerals. The
sampling of the supersaturated brines from these aquifers within the Project area have yielded concentrations
of up to 253 ppm lithium and 5,041 ppm bromine.
The planned 23-year production is supported by the lithium in the Indicated category. The lithium that will be
extracted will then be processed into lithium carbonate (Li2CO3). The Mississippian units have been re-entered
in the Long Canyon Unit 2 well only, so the lithium resource is restricted to the area surrounding the well. The
depths of each clastic zone for the wells re-entered and sampled by Anson are shown below in Table 4.
Well
Clastic Zone
17
Clastic Zone 19 Clastic Zone 29 Clastic Zone 31 Clastic Zone 33
From
To
From
To
From
To
From
To
From
To
Gold Bar Unit 2
1,891
1,897
1,930
1,942
2,140
2,145
2,158
2,165
Cane Creek 32-1
1,683
1,687
1,744
1,754
1,891
1,897
1,940
1,943
1,955
1,958
Skyline Unit 1
1,642
1,652
1,695
1,706
1,878
1,884
1,896
1,903
Long Canyon Unit 2
1,665
1,679
1,725
1,737
1,909
1,914
1,926
1,934
1,970
1,973
Table 4: Clastic Zone depths for each horizon sampled by Anson during its exploration programs.
It should be noted that the Mineral Resource is a static estimate; it represents the volume of potentially
recoverable brine that is contained within the defined aquifer taking into account the Effective Porosity. The
Mineral Resource also takes no account of recharge to the aquifers within the clastic zones, which is a
modifying factor that may increase brine-recovery from the units.
Project Location
The Project is located within the Colorado Plateau physiographic province in Grand County, Utah,
approximately twenty miles southwest of the Town of Moab via Potash Road, as shown in Figure 3. The Moab
area is a popular tourist attraction, located roughly 200 miles southeast of Utah’s capital city, Salt Lake City.
The Project is situated on the north-western side of the Paradox Basin.
2022 Annual Financial Report
7
Figure 3: Location of the Paradox Brine Site
Anson Resources Limited
Directors’ Report (continued)
The operation will consist of the extraction of lithium from brines found within sedimentary sequences of the
Paradox Formation and the Mississippian units. See Figure 4 for the extraction site location and production
site. This current proposed site has been selected over the other studied sites due to the significant CAPEX
and OPEX savings to the Project. These savings are attributable to siting the Project close to a natural source
of water (the Colorado River) and closer to the production wells, while also having nearby utility infrastructure
to which to connect.
Figure 4: Extraction and Production Site Location
Production and Infrastructure
Production assumptions and mining plan
The DFS was prepared based on production of up to 13,074 tonnes per annum of lithium carbonate during
years 1 to 10 from extracting brine from Clastic Zone 31 and the Mississippian formation, before progressing
to Clastic Zones 19 and 29 during years 11 to 17, followed by Clastic Zones 17 and 33 during years 18 to 23
when production volumes are estimated at 7,723 tonnes per annum and 4,186 tonnes per annum, respectively.
Consistent with Anson’s approach to earlier engineering studies, in year 1 it is expected that production would
be at 80% of the plant design capacity to allow for plant optimisation after commissioning. Once complete, it
is expected that the plant would operate at its designed capacity supported by the brine extraction under its
own pressure.
Potential additional by-product revenue from production of bromine chemicals, caustic soda (NaOH), boron
(Boric Acid, H3BO3) and iodine (I2) have not been included and will be considered in future engineering and
profit improvement studies.
Anson’s mining plan is based upon the extremely high pressures and the porosity of the rock units that are
present in both the Paradox Clastic Zones and the Mississippian units. The pressure in both is
approximately 4,500 psi throughout the Project area, and along with the horizontal and vertical porosity of the
units, the pressure is sufficient to push the brine to the surface without pumping. Two pads of 5 acres each,
LCW 1 and LCW 2, are located at the intersection of two geological features, Robert’s Rupture and the Cane
Creek Anticline, which delivers uniformly high pressure at shallower depths with a higher porosity resulting in
the artesian flow of the brines to the surface. Anson recently conducted an exploration and sampling program
of the brine at the Long Canyon Unit 2 well which is in close proximity to these two extraction pads and
confirmed a high degree of fracturing and porosity which resulted in a high flow.
2022 Annual Financial Report
8
Anson Resources Limited
Directors’ Report (continued)
The mining plan is that two main wells will be drilled on each of the pads, initially targeting Clastic 31 at
approximately 6,500 feet. Directional drilling will be used to draw brine from other areas of the project and
brought to the surface at LCW1 and LCW2 wells. Once at the surface, the main well pipelines from both
well pads will be joined together to a main transport pipeline to the processing plant.
Once processed, the spent brine will be re-injected into multiple porous rock zones approximately 2,000 to
4,000 feet below surface. These zones are close to the Cane Creek Anticline which has resulted in an increase
in porosity and fracturing during the formation of this geological structure. Also, a shallowing of the rock units,
as occurs at the brine extraction point, reduces the size of the pumps required for disposal.
Brine Well Field Facilities and Pipelines
The Project involves approximately 0.44 miles of a gathering pipeline from the LCW 1 well site to the LCW 2
well site, and approximately 2.6 miles of mainline pipeline to transport a saturated brine solution to the
proposed Lithium Carbonate Plant. The construction of the gathering and mainline pipeline will also involve
the installation of shutdown valves, pressure control valves, pigging facilities, and remote valve control
instrumentation for the safe operation of the mainline pipeline.
There are already a considerable number of oil and gas wells and pipelines in the surrounding area. Many of
Anson’s wells were previously gas exploration and production wells, repurposed for brine well exploration. The
main brine pipeline will be routed from the LCW 2 well site via a Horizontal Directional Drill (HDD) bore under
the Dead Horse State Park. Once outside of the State Park boundary, the pipeline will be buried in a trench
with three feet of cover and will connect to the Lithium Carbonate Plant alongside an existing unsealed road.
The pipeline route is shown in Figure 5 below:
Gas
Figure 5: Paradox Lithium Project Infrastructure.
Propane/LPG is intended to be transported to the Paradox Brine Site via truckage and stored in bullets
(reinforced, purpose-built tanks).
2022 Annual Financial Report
9
Anson Resources Limited
Directors’ Report (continued)
Electricity
The local utility provider, Rocky Mountain Power (RMP), owns a 69 kV transmission line feeding the nearby
Intrepid Potash Plant, and this line runs approximately two miles east of the Plant Site. RMP has confirmed
that 40 MW is available from this line to support the Project. RMP will provide upgrades to their transmission
line at the point of interconnect to allow the Project Site to tie into their system. The tie in point to the
RMP system will be near the Intrepid Potash Plant. Anson will need to provide a circuit breaker at this tie-in
location and a new 69 kV transmission line from the interconnect to the Paradox Brine Site. The Utility
Interconnect Circuit Breaker will be controlled by RMP.
Preliminary investigation for the use of renewable energy was undertaken. All the options studied presented
good opportunities for supporting the Project’s ESG credential. Two most likely candidates include solar power
and pipeline hydrogeneration.
During the course of the DFS, a preliminary study for inclusion of pipeline based hydrogeneration of electricity
was completed by Advision. In comparison to previous studies on solar based renewable power generation,
pipeline hydrogeneration was considered to be the most cost-effective and reliable source of power. The DFS
includes a hydrogeneration unit which will be installed in year 2 of operations.
Water
The extraction and downstream process that Anson has selected for the Project has been designed to re-cycle
up to 80% of the water that is introduced into the process. This water will be extracted from the Colorado River
and purified before being used in the downstream process.
Anson is continuing commercial discussion with holders of water rights within the local area to secure the
purchase of water for the Lithium Carbonate Plant, which includes water capacity not just for the current
proposed throughput capacity, but also for future project expansion(s).
The potential for requirement of pre-treatment water facilities to process river water for use in the Lithium
Carbonate Plant will be further assessed as part of the Front-End Engineering Design (FEED). While a water
test was completed during the preparation of this DFS, further water tests over different times will be conducted
to better inform the FEED of potential water purification for the Lithium Carbonate Plant.
Spent Brine Disposal
Effluents being very close to the chemical composition of the brine that were originally extracted from the
Paradox Basin will be re-injected into the basin without additional treatment within the plant battery limits.
Spent brine will be disposed back into shallower horizons through underground injection control (UIC) wells.
Anson will be initiating permitting for Class V-1c UIC wells with the Utah Division of Water Quality (DWQ) which
will allow injection of spent brines back into the formation they originate. Spent brine will essentially have the
same characteristics as before processing minus lithium, bromine (in possible subsequent phases) and some
of the other transition metals captured through filtration.
Process Design and Description
Metallurgy and Laboratory Results
Aquifer parameters were determined by using three separate techniques to determine the Effective Porosity,
including High Pressure Mercury Injection (HPMI), Gas Transport Model Analysis (GTMA) and Scanning
Electron Microscopy (SEM) analysis. This test work was carried out by Core Labs and Stratum Reservoirs in
the USA.
Brine chemistry was undertaken by four different laboratories assaying for multiple elements utilising different
methodologies. SGS utilized EPA 6010B (ICP-AES) for analysis of cations, and a variety of standard methods
for analysis of anions. WETLAB completed density analysis, hydrocarbon analyses, and anions by ion
chromatography (EPA Method 300.0) for bromide, chloride, fluoride, and sulphate. WETLAB then
subcontracted out the analysis for bromine (via Schoniger Combustion) to Midwest Microlab of Indianapolis,
Indiana, and total metals by inductively coupled plasma – atomic emission spectrometry (ICP-AES) (EPA
Method 200.7) for lithium, boron, and magnesium were subcontracted to Asset Laboratories of Las Vegas,
Nevada.
2022 Annual Financial Report
10
Anson Resources Limited
Directors’ Report (continued)
Direct Lithium Extraction (DLE) - General Overview
The adsorption method is utilised to separate lithium from magnesium, sodium and other impurities from the
brine. The lithium concentration in the eluate increases through a series of filtration and nanofiltration
processes to further remove impurities. Throughout these processes, water is recovered and recycled for reuse
using Reverse Osmosis (RO) and nanofiltration technologies. The DLE process is designed and optimized to
recycle process water to limit the intake of added water.
Magnesium is removed within the membrane system using resin. The solution is then further concentrated by
RO for boron removal. In the first step, coarse boron is removed by ion exchange. Mechanical Vapor
Recompression (MVR) equipment is then used to further concentrate the eluate. Ion exchange resins are used
again to remove the finer boron from the MVR concentrated solution.
Lithium carbonate is obtained through a process of lithium precipitation involving sodium carbonate. From
there, refinement occurs from drying and demagnetization to produce battery-grade lithium carbonate. More
specific descriptions of each of the key processes for the Direct Lithium Extraction Process are provided in
Figure 6 below.
Figure 6: Direct Lithium Extraction Process
Adsorption
Sunresin’s adsorption process is a low-cost, organic, and environmental-friendly process to extract crude
lithium chloride from raw brine. The adsorption process extracts lithium from the brine containing other minerals
such as magnesium and sodium. The resin adsorbs the lithium in the brine. The lithium adsorbed in the resin
is desorbed with a demineralised water solvent to produce a lithium chloride eluate with lower levels of
impurities for further refinement.
Lithium Precipitation
The precipitation concentration process is the process for preparing lithium carbonate. It uses a saturated
solution of sodium carbonate to precipitate lithium in a lithium chloride solution to form the lithium carbonate
product. Lithium carbonate products with a purity content of above 99% can be obtained with further after
precipitation recovery processes and washing.
Scheduled Downtime
Scheduled downtime and durations, such as planned maintenance, will be minimized. The initial targets are
as follows:
1. Full Emergency Shutdown (ESD) testing every six months.
2. Monthly sequential changeover of the membranes, or as needed, to achieve targeted throughput. This
equates to approximately 15 days per year of downtime.
3. Five days of maintenance shutdown per quarter. This equates to approximately 20 days per year of
downtime.
2022 Annual Financial Report
11
Anson Resources Limited
Directors’ Report (continued)
All equipment is expected to be designed for a rigorous maintenance schedule due to the corrosivity of the
processing materials. Therefore, the overall target for days of operation is 330 days per year. It is assumed
that this would be achieved in the second year of operation.
Infrastructure
The is located in close proximity to all existing major utilities and transportation infrastructure. The utilities
include natural gas (Dominion) and high voltage powerlines (Rocky Mountain Power) which pass close to the
production site and will be used in the production facility. In addition, there are interstate highways (i70) and a
rail link (Union Pacific) suitable for transporting the products across the USA as well as to Pacific ports including
Long Beach which can be reached in approximately 11 hours. There is also a domestic airport which is linked
to the Denver International Airport.
Anson has opened discussions with infrastructure providers in the area and initial engineering studies have
already commenced with some of these companies to secure supply.
Permitting
Anson has conducted research into the permits that are required to take the Project into production as has
opened discussions regarding the approval processes with potential consultants that would provide assistance
with obtaining these approvals and the relevant government agencies. The extraction, transportation,
processing and disposal of brine are all intended to be conducted on ground administered by the State of Utah.
The Utah Administrative Code R850-30 allows for the leasing of lands administered by Schools Institutional
Trust & Lands Administration (SITLA) to be leases for the purposes of oil and gas processing plants,
compressor stations, wastewater disposal facilities, mining or extraction facilities, manufacturing facilities, and
other industrial uses (Utah Administrative Code, 2019c).
Anson/A1 Lithium has been granted two granted Special Use Lease Applications (SULA) by SITLA and has
three additional SULA leases under review for the transportation, processing and disposal of the brine to be
extracted. In addition, Anson has been granted the right to extract mineral enriched brine, including brine from
both SITLA and the BLM.
Additional permits will be required from other government agencies including an Air Quality Permit, a
Stormwater Management Permit, a Construction Permit, Industrial General Permit, an Underground Injection
Control Permit from the Government of Utah as well as a Height Variance Permit and a Conditional Usage
Permit from the County government. There is no known inhibitor to applications for these permits being
approval by the relevant government agencies.
A list of the permits that are required can be found on announcement dated 8 September 2022
Lithium Market and Product Marketing Strategy
Lithium Demand
Benchmark Minerals Intelligence (“Benchmark”), a leading independent EV metals forecasting and market
reporting agency, estimates demand of 540kt LCE in 2022 up 32% on 2021. Over the medium term,
Benchmark forecast Lithium demand to surpass 1mt LCE in 2025, with global EV penetration rates set to hit
21%.
2022 Annual Financial Report
12
Graph 1 Global EV Penetration rate forecast
Anson Resources Limited
Directors’ Report (continued)
Over the long term, Benchmark forecast Lithium demand to surpass 2mt LCE in 2030 and 3mt LCE by 2033,
with EV forecast rates set to hit 34% and 48%. Benchmark forecast the period from 2030-2033 and 2033-
2036 to likely be characterized by intense undersupply.
Graph 2 Forecast Lithium Carbonate demand (left); Lithium Carbonate price forecast (right).
Source – Benchmark Minerals Intelligence.
The Project will produce battery grade lithium carbonate for use in domestic manufacture of Li-ion EV batteries.
As of 2022, Benchmark estimate 62% of the lithium battery demand to comprise lithium carbonate as illustrated
in Chart 1 below.
Chart 1 Global EV Penetration rate forecast
Critical Mineral Status – US Government Initiatives
Lithium is designated as a critical mineral by the United States Geological Survey (USGS) and accordingly the
US Government has taken a number of initiatives to support the localisation of the EV battery supply chain
and promote the development of domestic critical mineral projects.
2022 Annual Financial Report
13
Directors’ Report (continued)
Chart 2 Current and Forecast EV manufacturing plants in the United States (2022).
Anson Resources Limited
The Biden Administration, United States Federal government, has recently passed into law the Inflation
Reduction Act (IRA). This act seeks to improve electric vehicle penetration and boosting local sourcing of raw
materials as well as processing in the EV battery supply chain. Particularly, the IRA specifies the following:
1.
2.
3.
4.
Two-part credits on certain percentage of materials used in a vehicle’s batteries being extracted,
processed, manufactured and/or assembled in the US or in certain US-allied countries.
for
the value of applicable critical
To qualify
minerals contained in a vehicle’s batteries must be extracted or processed in the US or in a country
with which the US has a free trade agreement or must have been recycled in North America.
first $3,750 credit, a percentage of
the
To qualify for the second $3,750 credit, a certain percentage of the value of the battery
components in an EV must be manufactured or assembled in North America; applicable percentages
increase from 50 percent prior to 2024 to 100 percent after 2028.
Further, after calendar year 2024, a clean vehicle will not qualify for the tax credit if it contains
any critical minerals that were “extracted, processed, or recycled by a foreign entity of concern” –
including companies owned by, controlled by or subject to the jurisdiction of the government of the
People’s Republic of China.
The growing lithium resource at the Project, rapid pace of project development and US government policy
initiatives such as the IRA, support Anson’s strategy of enabling a US based EV battery supply chain. Anson
continues to receive interest from a wide range of international and US based offtake parties for lithium
carbonate to be produced at the Project.
Financial Evaluation
Capital Costs
The capital cost estimate is accurate to within +25%/-15% and includes all material and installation labour for
civil, structural, mechanical, piping, electrical and instrumentation, and plant commissioning.
2022 Annual Financial Report
14
Directors’ Report (continued)
Anson Resources Limited
Capital Item
Direct Capital Costs
Indirect Capital Costs
Other Costs
Free-issue from Owner
Production and Disposal Wells
MTO allowances
Project Capex
Owners Costs
Total Capital Costs
USD $m
185.2
126.0
17.8
90.0
22.0
22.8
463.8
31.3
495.1
For the DFS, Worley has estimated a project capex contingency of $27.8m, which is included in the above
Total Capital Costs. The next stage of FEED will provide further updates.
Operating Costs
Costs are summarized below:
Lithium Carbonate Production (steady state)
13,074
OPEX
Raw materials
Freight on raw materials
Electricity
Gas
Gas trucking
Maintenance (1.14% at 50%)
Labour
Well disposal fee
Solid waste disposal and general costs
Purchase of water
Overheads - SULA lease
USD $
$ Per Tonne
15,529,200
1,242,336
7,695,060
6,012,320
480,986
3,465,890
6,775,351
15,648,394
72,300
129,894
50,000
1,188
95
589
460
37
265
518
1,197
6
10
4
By-products (none assumed in Stage 1)
OPEX after by-product sales
57,101,731
4,368
57,101,731
4,368
2022 Annual Financial Report
15
Directors’ Report (continued)
Benchmarking – Global Cost Curve
Lithium Carbonate Production Cost Curve 2022
Anson Resources Limited
Paradox
Lithium
Project
Graph 3 Global Lithium Carbonate Production Cost Curve 2022. Source – Benchmark Minerals Intelligence.
Discounted Cash Flow
A discounted cash flow (DCF) was derived by estimating net revenues, subtracting the operating costs to yield
the EBITDA, and then subtracting capital costs to arrive at a pre-tax DCF.
Taxes were calculated accounting for deductions, and then applied to yield a post-tax DCF. Tax and
Investment incentives (see opportunities section) potentially applicable to the project were not considered in
the current modelling. The project cash flows are summarized in Table 6 below.
SCENARIO
PRE-TAX (USD)
POST-TAX (USD)
Base Case
Spot Price Case2
NPV (7%)
$1,306m
$5,149m
IRR
47%
98%
NPV (7%)
$922m
$3,768m
IRR
37%
80%
Table 6: Paradox Lithium Project Results of Economic Analysis
For material economic assumptions and sensitivities please refer to ASX announcement dated 8 September
2022.
Project Funding
Anson plans to fund the Paradox Lithium Project capital requirements through a mix of conventional equity
and project finance. However, additional funding options such as offtake funding or strategic investments may
be considered at the time of final investment decision and based on conditions of the equity capital markets
and debt capital markets at the time.
Anson has engaged leading independent corporate advisory firm BurnVoir Corporate Finance to undertake a
competitive debt funding process with reputable finance lenders.
Debt process planning has been ongoing since the start of the DFS. Modelling of the Paradox Lithium Project
Stage 1 demonstrates a debt carrying capacity that is supportive of project financing. A number of factors
make the Project attractive for project financing, including:
•
Tier 1 jurisdiction of the Project
2 Lithium Carbonate Spot Price – US$69,400/t Battery grade EXW China price. Source – S&P Capital IQ.
2022 Annual Financial Report
16
Anson Resources Limited
Directors’ Report (continued)
• Strong ESG credentials and contribution to EV transition
• High project margins and strong lithium price outlook.
The project financing process will be formally launched following completion of the DFS. It is anticipated that
debt funding agreements will be finalised in advance of Final Investment Decision. Anson and its financial
advisor BurnVoir Corporate Finance have commenced discussions with financiers and will seek to progress
these discussions in line with expected Final Investment Decision in H1 2023.
Development Schedule
Phase 1 – Lithium Development
Post the completion of the DFS, Anson has entered a period of rapid development and value creation as it
progresses the advanced development of the Project. FEED will soon commence with support of Sunresin,
Anson’s strategic technology partner.
Phase 2 – Lithium Expansion and Bromine Development
The Sunresin plant is designed to be modular and thus can be scaled up to increase production capacity post
the initial 13,074 tpa production capacity.
The brine at Paradox basin is rich in a number of minerals alongside Lithium. These minerals include Iodine,
Boron and Bromine among others.
A number of bromine production facilities around the world successfully produce bromine and related
compounds from resources with lower concentrations of bromine than those present in the Paradox basin.
Anson remains committed to the development of the vast bromine resource and anticipate the construction of
a bromine production facility from free cash flows generated from the production of lithium carbonate. Studies
and work completed to date indicate to significant benefits of this approach to Anson shareholders. The lithium
and bromine production facilities are anticipated to share project infrastructure, reducing the incremental
capital spend required for a bromine plant.
Bromine is a key component of the rapidly developing stationary energy storage battery market. The planned
bromine development will aim to produce bromine and other bromine derivative products for use in zinc-
bromine batteries among other industrial applications.
2022 Annual Financial Report
17
Anson Resources Limited
Directors’ Report (continued)
The Bull Nickel-Copper-PGE Project – Western Australia
The Bull Project is located only 35km from Perth abutting Chalice Gold Mines Limited’s (Chalice) (ASX: CHN)
tenements, and is 20km south west along strike of Chalice’s high-grade Julimar Ni-Cu-PGE discovery (Figure
6). Anson also pegged an additional tenement that abuts the Bull Project area to the south, ELA70/5619.
Figure 6: TMI image showing the location of the Bull Project and the associated magnetic signatures in relation
to the Julimar discovery.
Negotiations continued with the 3 landowners in which exploration programs are planned. These negotiations
are in the final stages of completion. Priority drill targets have been defined based on geophysical surveys,
geological mapping and rock chip sampling programs. Stage 1 drilling consist of 18 holes focusing on priority
areas 1, 2 and 3, and will be drilled to a depth of 200m from west to east at a 600 angle to maximize potential
intersection of the targeted anomalous ultramafic units, See Figure 7.
Figure 7: Drone Mage RTP image at the Bull Project showing proposed drillhole locations.
2022 Annual Financial Report
18
Anson Resources Limited
Directors’ Report (continued)
Yellow Cat Project – Utah, USA
The Yellow Cat Project is located 30 km north of Moab, in the Thompson District, Grand County Utah. There
are two separate areas; the Yellow Cat claims and the Yellow Cat West claims.
The Yellow Cat Project is considered prospective for the development of both uranium and vanadium due to
the high historic grade mineralisation present on the claims. The project is located in a region that is
increasingly sought-after by companies exploring for uranium, supported by the recent increase in uranium
prices.
High grade assay values of up to 87,600ppm uranium (U) (10.33% U3O8) and 143,500ppm vanadium (V)
(25.61% V2O5) were reported. A summary of the results of the elemental values and the more common metal
oxides are shown in Table 7 below and the locations can be seen in Figure 8.
Location ID
Northing
Easting
Sample ID
U3O8 (%)
V2O5 (%)
Comments
YC2
4,299,798
627,312
YC20007
6.65
4.69
Exposed mineralisation, UG workings
YC20008
10.33
YC20010
YC3
4,301,989
634,173
YC20004
YC4
4,299,789
627,312
YC20014
YC8
4,300,420
627,803
YC20022
YC10
4,302,105
634,215
YC20006
YC11
4,302,017
633,665
YC20012
0.94
3.27
1.43
1.07
0.86
0.05
2.46
23.92
5.87
Exposed mineralisation, UG workings
1.77
Ore pad grab samples
10.16
Exposed mineralisation, UG workings
14.57
Exposed mineralisation, UG workings
25.61
Exposed mineralisation, UG workings
Notes:
Table 7: Selected assay results for Uranium and Vanadium at Yellow Cat.
1.
2.
3.
Underground sample location coordinates are based on location of the closest underground adit. Ore pad grad samples location coordinates
are for the ore pad sampled.
Conversion of uranium (U) to uranium oxide (U3O8) is by factor of 1.179.
Conversion of vanadium (V) to vanadium oxide (V2O5) is by a factor of 1.785.
Anson is sourcing quotes from contractors to carry out surveys required to get approvals for exploration drilling
programs. The aim of the exploration programs is to confirm existing drilling results and to extend the known
mineralisation along strike and down dip, see Figure 8.
Figure 8: Plan showing the Yellow Cat claims and the inferred mineralised trend to follow up.
2022 Annual Financial Report
19
Anson Resources Limited
Directors’ Report (continued)
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 Coastal Highway and 130km north of
Geraldton. Historical exploration in the area has concentrated on the search for lead and zinc deposits. Anson
has excised 12 blocks from the E66/89 tenement due to regulations relating to tenements if applying for an
extension after 5 years. The prospective ground on the tenements E66/89 and E66/94 is dominated by the
Northampton Metamorphic Complex.
Historical exploration in the area has concentrated on the search for lead and zinc deposits. The Ajana Project
contains several historic copper, lead and silver producing mines that date back to 1850.
The Mary Springs tenement contains a JORC 2012 Mineral Resource estimate which is summarised in Table
8. The global Indicated and Inferred Resource estimate is 390,000 tonnes grading at 6.5% Pb. Zones of Pb-
Zn-Cu-Ag rich mineralisation have been intersected in recent drilling but were not included in modelling the
resource. Further drilling may enable the zinc, copper and silver bearing zones to be modelled as part of a
future resource.
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 8: Mary Springs Mineral Resource Estimate, JORC 2012.
Anson had previously applied for three POW’s which were approved by the Department of Mines, Industry
Regulation and Safety (DMIRS) and completed a heritage survey, which included archaeological and
ethnographical work area clearance, at the proposed sites for the exploration programs to be carried out at the
Ajana Project, see Figure 9. The survey was undertaken with the full involvement of the Nanda representatives
who were nominated by the native title group. The survey was completed over the Surprise, Ethel Maud and
Block 1 prospect areas.
Figure 9: Plan showing the areas approved for exploration in the submitted POW’s and cleared in the heritage
survey (green) and local prospect locations.
The proposed three exploration programs will consist of reverse circulation (RC) drilling under and along strike
of existing pits and mine shafts in the areas approved for exploration in the POW’s and cleared by the heritage
survey.
2022 Annual Financial Report
20
Anson Resources Limited
Directors’ Report (continued)
Anson advanced planning for the 1,990m reverse circulation drilling program at the Ajana Project with the
appointment of a drilling company to carry out the program in the next quarter and a contractor was appointed
for the local clearance work to prepare access and drill sites prior to the drilling programs commencing.
Hooley Wells Nickel-Cobalt Laterite – Western Australia
The Hooley Well Nickel-Cobalt Laterite Project is located 800km north of Perth and 300km north-east of
Geraldton in Western Australia consisting of three tenements E9,2218, E9/2219 and E9/2462. Tenements
E9/2218 and E9/2219 contain historical shallow drilling which has intersected nickel and cobalt laterites. There
are also possible primary nickel sulphides (identified by IP response) at depth.
The project contains extensive nickel, cobalt and chromite mineralisation over an area of 1.5km x 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
With the completion of processing of the data collated from the drone surveys the interpretation of the data
started. Further work will continue which can provide a full litho-structural interpretation.
2022 Annual Financial Report
21
Anson Resources Limited
Directors’ Report (continued)
Operating results for the year
Net loss attributable to equity holders of the parent for the year ended 30 June 2022 was $6,751,488 (2021:
loss of $4,521,182) of which $3,307,756 (2021: $1,413,658) was spent on exploration and evaluation activities
and $nil (2021: $nil) was incurred in acquiring projects. The loss per share was 0.68 cents (2021: loss per
share of 0.54 cents).
Cash and cash equivalents at 30 June 2022 totalled $5.731 million (2021: $2.233 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 30 August 2022, Anson announced 158,765 shares were issued on the exercise of ASNOC listed options
at $0.035 per share
On 8 September 2022, Anson announced the completion of DFS confirming outstanding economics for its
Paradox Lithium Project.
On 9 September 2022, Anson announced 2,430,421 shares were issued on the exercise of ASNOC listed
options at $0.035 per share.
On 21 September 2022, Anson issued 4,757,359 shares following the exercise of various classes of listed and
unlisted options.
On 27 September 2022. Anson announced it had raised $50,000,000 before costs for the issue of 138,888,889
shares at $0.36 each.
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.
2022 Annual Financial Report
22
Directors’ Report (continued)
Share Options and Performance Rights
Options and performance rights granted
There were no performance rights granted during the year ended 30 June 2022.
The following options were granted in the financial year:
Class
Grant Date
Expiry Date
Listed Options
Listed Options
Listed Options
5 Nov 2021
1 Dec 2021
31 Jul 2023
31 Jul 2023
27 Sep 2021
29 Oct 2021
$0.091
Exercise
Price
$0.20
$0.20
Anson Resources Limited
Number Issued
26,273,496
10,000,000
97,702,126
Options exercised and performance rights converted
The following options and performance rights have been converted to fully paid ordinary shares during the
year ended 30 June 2022.
Class
Grant Date
Expiry Date
Unlisted Options
Unlisted Options
17 May 2019
16 May 2022
12 Nov 2019
10 Sep 2021
Listed Options
24 Jun 2020
30 Jun 2023
Exercise
Price
$0.035
$0.06
$0.035
Unlisted Options
Unlisted Options
17 May 2019
16 May 2022
$0.08685
29 Jan 2021
30 Jun 2023
$0.0555
Number Converted
10,860,780
10,000,000
4,345,425
653,325
671,974
Listed Options
27 Sep 2021
29 Oct 2021
$0.091
26,273,496
The following options have been converted to fully paid ordinary shares since 30 June 2022 to the date of
this report.
Class
Grant Date
Expiry Date
Exercise
Price
Number Issued
Listed Options
17 May 2019
16 May 2022
$0.035
Unlisted Options
29 Jan 2021
30 Jun 2023
$0.0555
Listed Options
5 Nov 2021
31 Jul 2023
$0.20
2,917,763
4,328,026
100,756
Options and performance rights expiry
During the year 71,428,630 Bonus options have expired.
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
Listed Options
24 June 2020
30 June 2023
$0.035
Listed Options
5 Nov 2021
31 Jul 2023
Listed Options
1 Dec 2021
31 Jul 2023
Performance rights
20 April 2018
18 April 2025
Performance rights
30 Nov 2018
29 Nov 2023
Performance rights
12 Nov 2019
16 Feb 2027
$0.20
$0.20
Nil
Nil
Nil
Number of
Options/rights
54,546,812
26,173,740
10,000,000
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.
2022 Annual Financial Report
23
Anson Resources Limited
Directors’ Report (continued)
Convertible note
At the date of this report, assumed unissued shares of the company equivalent to the 1 convertible note yet to
convert is 38,881,861.
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. The contract of insurance prohibits disclosure of the nature of the liability and the amount
of the premium.
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
Number of meeting
eligible to attend
3
3
3
Number of meetings
attended
3
3
3
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 35.
Non-Audit Services
The Company’s auditor, Stantons, 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.
Forward Looking Statements: Statements regarding plans with respect to Anson’s mineral projects are
forward looking statements. There can be no assurance that Anson’s plans for development of its projects will
proceed as expected and there can be no assurance that Anson 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 announcement that relates to exploration results
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 is a director of Anson and
a consultant to Anson.
2022 Annual Financial Report
24
Anson Resources Limited
Directors’ Report (continued)
Competent Person’s Statement 2: The information contained in this ASX release relating to Exploration
Results 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 Lithium
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. Anson 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. Anson 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.
Engineering Accuracy: The Definitive Feasibility Study (DFS) has been prepared by Worley according to the
Association for the Advancement of Cost Engineering (AACE) Class III standard. The Board of Directors,
Bruce Richardson, Greg Knox and Michael van Uffelen, as well as Worley consider to this to be a DFS.
2022 Annual Financial Report
25
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited)
This remuneration report for the year ended 30 June 2022 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. For this financial year the
CFO and company secretary are appointed through an outsourced private entity and hence are not classified
as KMP.
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
Executive Director
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 2022
Details of remuneration for the year ended 30 June 2021
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 2021 Annual General Meeting
2022 Annual Financial Report
26
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
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”).
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;
Link executive rewards to shareholder value;
Significant portion of executive compensation ‘at risk’, dependent upon meeting pre-determined
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.
2022 Annual Financial Report
27
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
2022 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.
2022 Annual Financial Report
28
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
B.
Details of remuneration for the year ended 30 June 2022
Salary &
Fees(i)
Non
monetary
benefits(ii) Superannuation
Share-based
payments(iii)
Proportion of
remuneration
performance
related
Total
%
Directors
Non-executive
M van Uffelen (iv)
132,361
-
3,636
(4,943)
131,054
Executive
B Richardson (v)
P G Knox (iv)(v)
Total KMPs
495,984
195,965
824,310
23,844
-
23,844
-
3,636
7,272
(24,134)
(9,787)
(38,864)
495,694
189,814
816,562
(4%)
(5%)
(5%)
(i)
(ii)
(iii)
This amount is gross of taxes and mandatory statutory deductions as applicable in Australia and the United States.
As such for Mr Knox income is not comparable to the prior period as prior periods were partially subject to USA and
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 are 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 financial year 2022.
Relates to annual leave accrued but not taken by Mr Richardson during the year.
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. The amount recorded above represents a write-back of share based payments made in the prior year.
Please refer to note 19(c) for further information.
(iv)
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.
(v)
Amounts exclude expatriate benefits.
2022 Annual Financial Report
29
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
C.
Details of remuneration for the year ended 30 June 2021
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 (iv)
Executive
132,528
-
3,470
28,112
164,110
B Richardson (vi)(vii)
P G Knox (iv)
Total Directors
455,966
192,652
781,146
56,333
-
56,333
-
3,470
6,940
84,881
40,138
153,131
597,180
236,260
997,550
Other KMPs
T Kapfumo (v)
53,327
-
5,066
-
58,393
Total KMPs
834,473
56,333
12,006
153,131
1,055,943
17%
14%
17%
15%
-
15%
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
This amount is gross of taxes and mandatory statutory deductions as applicable in Australia and the United States.
As such for Mr Knox income is not comparable to the prior period as prior periods were partially subject to USA and
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 financial year 2021.
Relates to annual leave accrued but not taken by Mr Richardson during the year.
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. See Note 19 for details of performance shares granted which converted to fully paid ordinary shares
in this financial year.
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.
Resigned on 30 November 2020.
Amounts exclude expatriate benefits.
Amount includes a gross payment of US$45,156 (2020: Nil) to Mr Richardson due to an underpayment of monies
owned under his employment contract. This has also had an impact on accruement of leave that was not taken by
Mr Richardson during this period.
2022 Annual Financial Report
30
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
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.
•
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.
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 $8,000 per month plus GST. Note that consulting fees are based on services provided and these fees are
dependent on the work required in any given month.
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)
No performance rights were granted as compensation during the year to KMPs.
No performance rights vested during the year to KMPs (2021: 1,800,000 performance rights vested).
2022 Annual Financial Report
31
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
A write-back of performance rights totalling $38,864 was recorded in the director and employee benefits
expense (2021: an expense of $153,131).
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 2022
Directors
B Richardson
12,200,000
P G Knox
M van Uffelen
5,200,000
3,600,000
-
-
-
-
-
-
-
-
-
12,200,000
5,200,000
3,600,000
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.
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 2022
Directors
B Richardson
P G Knox
M van Uffelen
Balance
at start of
the year
Granted/
Issued
Exercised
Options
Lapsed/
Expired
Balance at
end of the
year
Vested and
exercisable
-
-
-
2,536,421(1)
1,677,826(1)
96,600(1)
-
(2,536,421)(2)
-
-
-
(48,300)(3)
(1,515,826)(2)
-
162,000
162,000
48,300
48,300
Issue of bonus options pursuant to prospectus dated 17 September 2021
(1)
(2) Bonus options expired on 29 October 2021
(3) Bonus options exercised
2022 Annual Financial Report
32
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
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 2022
Directors
B Richardson
P G Knox
M van Uffelen
Balance at start
of the year
Issued upon
vesting of
performance
rights
Acquisitions/
(disposals)
Balance at end of
the year
25,094,223
15,158,270
483,000
-
-
-
-
162,000
25,094,223
15,320,270
48,300
531,300
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.
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.
2022 Annual Financial Report
33
Anson Resources Limited
Directors’ Report (continued)
Remuneration report (audited) (continued)
I.
Other transactions and balances with Key Management Personnel
Other than the compensation show above 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 2021 Annual General Meeting
At the 2021 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, 30 September 2022
2022 Annual Financial Report
34
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
West Perth WA 6005
Australia
Tel: +61 8 9481 3188
Fax: +61 8 9321 1204
ABN: 84 144 581 519
www.stantons.com.au
30 September 2022
The Directors
Anson Resources Limited
Level 1
35 Outram Street
West Perth, WA 6005
Dear Sirs
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 2022, I declare that to the best of my knowledge and belief, there have been no
contraventions of:
(i)
(ii)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
any applicable code of professional conduct in relation to the audit.
Yours sincerely
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LIMITED
(An Authorised Audit Company)
Martin Michalik
Director
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
Consolidated
Note
2022
$
2021
$
Other Income
Interest income
Other income
Expenses
Consultants
Depreciation
9
Director and employee benefits expenses
Exploration and evaluation costs
Foreign exchange loss/(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
Loss from continuing operations after income tax
expense
Other Comprehensive Income:
Items that will not be reclassified subsequently to profit or
loss
Changes in fair value of financial assets – fair value OCI
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign
subsidiaries
19
2
3
18
18
732
-
732
(375,389)
(127,639)
(766,214)
(3,307,756)
(79,252)
(983,593)
(204,716)
(117,177)
-
-
(52,334)
(738,150)
166
22,500
22,666
(119,386)
(111,955)
(1,088,715)
(1,413,658)
108,421
(1,070,196)
(276,411)
(109,306)
125,000
-
(10,933)
(576,709)
(6,751,488)
(4,521,182)
-
-
(6,751,488)
(4,521,182)
(22,843)
87,545
304,416
(233,023)
Total comprehensive loss for the year
(6,469,915)
(4,666,660)
Loss for the year attributable to members of the parent
entity
Total comprehensive loss for the year attributable to
members of the parent entity
(6,751,488)
(4,521,182)
(6,469,915)
(4,666,660)
Basic and diluted loss per share (cents per share)
5
(0.68)
(0.54)
The accompanying notes form part of these financial statements
2022 Annual Financial Report
36
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
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
2022
2021
$
$
6
7
8
9
10
11
8
12
13
14
15
16
13
14
17
18
5,730,923
2,232,947
10,171
137,497
21,466
87,857
5,878,591
2,342,270
450,327
5,557,616
104,165
941,892
201,363
2,799,392
130,594
611,625
7,054,000
3,742,974
12,932,591
6,085,244
1,214,696
144,657
107,821
909,355
2,688,911
5,065,440
396,095
91,128
63,450
674,113
1,705,318
2,930,104
324,349
168,673
493,022
278,448
24,748
303,196
5,558,462
3,233,300
7,374,129
2,851,944
37,061,281
26,657,184
3,754,799
(33,441,951)
2,885,223
(26,690,463)
7,374,129
2,851,944
The accompanying notes form part of these financial statements
2022 Annual Financial Report
37
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
Cash flows from Operating Activities
Payments to suppliers and employees
Payments for exploration
Interest paid
Other income received
Consolidated
2022
$
2021
$
Note
(1,401,762)
(1,583,967)
(3,150,350)
(1,216,278)
(7,561)
(10,670)
-
22,500
Net cash (used in) operating activities
26(i)
(4,559,673)
(2,788,415)
Cash Flows from Investing Activities
Purchase of property, plant and equipment
Proceeds from sale of financial assets – FVOCI
Interest received
Payment for 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
Repayment of lease liabilities
Net cash provided by financing activities
Net increase in cash held
Cash at the beginning of the financial year
Effect of foreign exchange on amounts held in foreign
currencies
(88,929)
10,225
732
(58,358)
102,434
155
(2,793,097)
(1,164,542)
(2,871,069)
(1,120,311)
7,357,322
4,613,800
(506,632)
(307,505)
4,180,273
1,373,078
(118,452)
(91,875)
10,912,511
5,587,498
3,481,769
1,678,772
2,232,947
568,250
16,207
(14,075)
Cash at the end of the financial year
6
5,730,923
2,232,947
The accompanying notes form part of these financial statements
2022 Annual Financial Report
38
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
Consolidated Group
Contributed
Equity
Accumulated
Losses
Share
Based
Payments
Reserve
Financial
Asset-Fair
Value OCI
Reserve
Foreign
Currency
Translation
Reserve
$
21,838,998
$
(22,169,281)
$
2,160,650
$
15,165
$
(159,432)
Balance at 1 July 2020
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
Share issue costs
Conversion of options
Conversion of performance rights
55,800
Vesting of performance rights
Issue of options
-
-
-
-
-
-
(4,521,182)
-
-
(4,521,182)
-
-
-
-
-
-
-
(55,800)
153,131
916,987
-
-
-
-
-
-
4,613,800
(1,224,492)
1,373,078
Anson Resources Limited
Total
$
1,686,100
(4,521,182)
87,545
-
87,545
-
-
-
(233,023)
(233,023)
87,545
(233,023)
(4,666,660)
-
-
-
-
-
-
-
-
-
-
-
-
4,613,800
(1,224,492)
1,373,078
-
153,131
916,987
Balance at 30 June 2021
26,657,184
(26,690,463)
3,174,968
102,710
(392,455)
2,851,944
Balance at 1 July 2021
26,657,184
(26,690,463)
3,174,968
102,710
(392,455)
2,851,944
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
Share issue costs
Conversion of options
Vesting of performance rights
-
-
-
-
(6,751,488)
-
-
(6,751,488)
7,357,322
(1,133,498)
4,180,273
-
-
-
-
-
-
-
-
-
626,866
-
(38,863)
-
(22,843)
-
-
(6,751,488)
(22,843)
-
304,416
304,416
(22,843)
304,416
(6,469,915)
-
-
-
-
-
-
-
-
7,357,322
(506,632)
4,180,273
(38,863)
Balance at 30 June 2022
37,061,281
(33,441,951)
3,762,971
79,867
(88,039)
7,374,129
2022 Annual Financial Report
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
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 30 September 2022.
(b)
Application of new and revised Accounting Standards
New standards and interpretations adopted
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.
Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted.
AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19 Related Rent
Concessions beyond 30 June 2021
The Group has applied AASB 2021-3: Amendments to Australian Accounting Standards – COVID-19-Related
Rent Concessions beyond 30 June 2021 this reporting period.
The amendment amends AASB 16 to extend by one year, the application of the practical expedient added to
AASB 16 by AASB 2020-4: Amendments to Australian Accounting Standards – COVID-19-Related Rent
Concessions. The practical expedient permits lessees not to assess whether rent concessions that occur as a
direct consequence of the COVID-19 pandemic and meet specified conditions are lease modifications and
instead, to account for those rent concessions as if they were not lease modifications. The amendment has
not had a material impact on the Group’s financial statements.
2022 Annual Financial Report
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(b)
Application of new and revised Accounting Standards (continued)
AASB 2020-8: Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform –
Phase 2
The Group has applied AASB 2020-8 which amends various standards to help listed entities to provide
financial statement users with useful information about the effects of the interest rate benchmark reform on
those entities’ financial statements. As a result of these amendments, an entity:
• will not have to derecognise or adjust the carrying amount of financial statements for changes required
by the reform, but will instead update the effective interest rate to reflect the change to the alternative
benchmark rate;
• will not have to discontinue its hedge accounting solely because it makes changes required by the reform,
if the hedge meets other hedge accounting criteria; and
• will be required to disclose information about new risks arising from the reform and how it manages the
transition to alternative benchmark rates. The amendment has not had a material impact on the Group’s
financials.
New and Amended Accounting Policies Not Yet Adopted by the Group
AASB 2020-1: Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current
The amendment amends AASB 101 to clarify whether a liability should be presented as current or non-current.
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The amendment
is not expected to have a material impact on the financial statements once adopted.
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments
AASB 2020-3: Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments is an omnibus standard that amends AASB 1, AASB 3, AASB 9, AASB 116, AASB 137
and AASB 141. The Group plans on adopting the amendment for the reporting period ending 30 June 2023.
The impact of the initial application is not yet known.
AASB 2021-2: Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
The amendment amends AASB 7, AASB 101, AASB 108, AASB 134 and AASB Practice Statement 2. These
amendments arise from the issuance by the IASB of the following International Financial Reporting Standards:
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) and Definition of
Accounting Estimates (Amendments to IAS 8).
The Group plans on adopting the amendment for the reporting period ending 30 June 2024. The impact of the
initial application is not yet known.
AASB 2021-5: Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
The amendment amends the initial recognition exemption in AASB 112: Income Taxes such that it is not
applicable to leases and decommissioning obligations – transactions for which companies recognise both an
asset and liability and that give rise to equal taxable and deductible temporary differences. The Group plans
on adopting the amendment for the reporting period ending 30 June 2024. The impact of the initial application
is not yet known.
2022 Annual Financial Report
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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
21(a).
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.
(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.
2022 Annual Financial Report
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e)
Impairment of non-financial assets
Critical accounting judgements and key sources of estimation uncertainty (continued)
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 consolidated statement of
financial position cannot be measured based on quoted prices in active markets, their fair value is measured
using valuation techniques.
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.
2022 Annual Financial Report
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(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.
(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.
2022 Annual Financial Report
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Income tax (continued)
(i)
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.
(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
2022 Annual Financial Report
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(k)
Property, plant and equipment (continued)
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 and
Other Comprehensive Income in the expense category that is consistent with the function of the intangible
assets.
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 consolidated statement of profit or loss and other comprehensive income.
2022 Annual Financial Report
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Intangible assets (continued)
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
2022 Annual Financial Report
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Financial Instruments - Initial recognition and subsequent measurement
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 and other 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 consolidated statement of financial position
at fair value with net changes in fair value recognised in the consolidated statement of profit or loss and other
comprehensive income.
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.
2022 Annual Financial Report
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Financial Instruments - Initial recognition and subsequent measurement (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.
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.
2022 Annual Financial Report
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
Financial Instruments - Initial recognition and subsequent measurement (continued)
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.
2022 Annual Financial Report
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(m)
(iii)
Financial Instruments - Initial recognition and subsequent measurement (continued)
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.
2022 Annual Financial Report
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(p)
Provisions (continued)
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.
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.
2022 Annual Financial Report
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(r)
Share-based payment transactions
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.
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.
2022 Annual Financial Report
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Fair value of assets and liabilities (continued)
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.
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.
2022 Annual Financial Report
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(v)
Fair value of assets and liabilities (continued)
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.
(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.
2022 Annual Financial Report
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(w)
Leases (continued)
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.
(x)
Going concern
The financial report has been prepared on a going concern basis, which contemplates the continuity of normal
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of
business.
Based upon the Group’s existing cash resources, the Directors consider there are reasonable grounds to
believe that the Group will be able to continue as a going concern after consideration of the following factors:
•
•
•
•
The Group has cash reserves of $5,730,923 at 30 June 2022;
The Group has no loans or borrowings;
The Group has the ability to adjust its expenditure outlays subject to results of its exploration activities
and the Group’s funding position; and
The Directors regularly monitor the Group’s cash position and on an on-going basis consider a number
of strategic and operational plans to ensure that adequate funding continues to be available for the Group
to meet its business objectives.
The Directors believe that the above indicators demonstrate that the Group will be able to pay its debts as and
when they fall due and continue as a going concern. Therefore, the Directors believe it is appropriate to adopt
the going concern basis for the preparation of the Group’s 2022 annual financial report.
NOTE 2: OTHER EXPENSES
Compliance costs
Conference costs
Legal fees
Printing and postage
Audit fees
Insurance
Share registry costs
Website and IT costs
Sundry expenses
Total other expenses
Consolidated
2022
$
216,950
13,299
14,548
37,651
59,949
70,883
67,406
28,932
228,532
2021
$
115,818
16,166
48,027
18,579
49,081
55,823
38,509
8,660
226,046
738,150
576,709
2022 Annual Financial Report
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
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
(6,751,488)
(4,521,182)
Income tax calculated at 25% (2021: 26%)
(1,687,872)
(1,175,507)
Tax effect of:
Cost of equity settled awards
Sundry amounts
Section 40-880 deduction
Exploration acquisition costs (reversed)/incurred
Derivative FVPL
(9,716)
9,608
(188,642)
-
245,898
39,814
14,847
(137,246)
(32,500)
278,251
Future income tax benefit not brought to account
1,630,724
1,012,341
Income tax benefit
(c) Tax losses
-
-
Unused tax losses for which no deferred tax asset has been
recognised (as recovery is currently not probable)
Potential at 25% (2021: 25%)
8,350,758
6,602,177
(d) Unrecognised temporary differences
Temporary differences for which deferred tax assets have not been
recognised (at 25%; 2021: 25%):
Accruals
Section 40-880 deduction
7,500
188,642
8,233
137,246
Unrecognised deferred tax assets relating to the above temporary
differences
196,142
145,479
The potential tax benefit at 30 June 2022 in respect of tax losses not
brought into account has been calculated at 25%. A rate of 25% was
applied for the year ended 30 June 2021.
2022 Annual Financial Report
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 4: SEGMENT REPORTING
Identification of reportable segments
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 assets and liabilities
2022 Annual Financial Report
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 4: SEGMENT REPORTING (Continued)
For the year ended 30 June 2022
Segment revenue
Segment loss/profit results
Amounts not included in segment results but
reviewed by the board:
Expenses not directly allocable to identified
segments or areas of interest
Depreciation
Consultants
Director and employee expenses
Interest Expense
Occupancy
Share based payment expense
Travel and accommodation
Foreign exchange gain
Other expenses
Loss after income tax
AS AT 30 JUNE 2022
Segment assets
Unallocated assets:
Trade and other receivables
Plant and equipment
Other assets
Total Assets
Mineral
Exploration
Australia
$
Mineral
Exploration
USA
$
Corporate
Total
$
$
-
(108,172)
-
(3,178,147)
732
(1,757)
732
(3,288,076)
(127,639)
(375,389)
(766,214)
(204,716)
(117,177)
-
(52,334)
(79,252)
(1,740,691)
(6,751,488)
-
6,473,144
5,825,401 12,298,545
10,171
450,327
173,548
12,932,591
Segment asset increases for the year
Capital expenditure – development
Total segment asset increases for the year
-
-
2,758,224
2,758,224
-
-
2,758,224
2,758,224
Segment Liabilities
Unallocated liabilities:
Trade and other payables
Provisions
Financial liabilities
Total Liabilities
6,245
324,349
3,598,266
3,928,860
1,208,451
144,657
276,494
5,558,462
2022 Annual Financial Report
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 4: SEGMENT REPORTING (Continued)
For the year ended 30 June 2021
Segment revenue
Segment loss/profit results
Amounts not included in segment results but
reviewed by the board:
Expenses not directly allocable to identified
segments or areas of interest
Depreciation
Consultants
Director and employee expenses
Interest Expense
Occupancy
Share based payment expense
Travel and accommodation
Foreign exchange gain
Other expenses
Loss after income tax
AS AT 30 JUNE 2021
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
Mineral
Exploration
Australia
$
-
(13,311)
Mineral
Exploration
USA
$
-
(1,275,599)
Corporate
Total
$
$
166
45,924
166
(1,242,986)
(111,955)
(119,386)
(1,088,715)
(276,411)
(109,306)
-
(10,933)
108,421
(1,669,911)
(4,521,182)
-
3,386,859
2,353,854
5,740,713
21,466
201,363
121,702
6,085,244
-
-
281,434
281,434
-
-
281,434
281,434
6,245
268,448
2,379,431
2,654,124
389,850
101,128
88,198
3,233,300
2022 Annual Financial Report
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
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 and diluted loss per share:
Consolidated
2022
(0.68)
(0.68)
2021
(0.54)
(0.54)
$
$
(6,751,488)
(4,521,182)
No.
No.
991,261,075 835,229,050
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
Consolidated
2022
$
2021
$
5,730,923 2,232,947
5,730,923 2,232,947
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 25(a).
As at 30 June 2022, The Group’s cash and cash equivalents denominated in USD amounted to $330,981
(2021: $118,686).
NOTE 7: TRADE AND OTHER RECEIVABLES
Current
GST recoverable (net)
Other receivables
NOTE 8: OTHER ASSETS
Current
Prepayments
Office lease security deposits
Non-current
Office lease security deposits
Exploration bonds
Consolidated
2022
$
2021
$
10,171
-
10,171
10,966
10,500
21,466
Consolidated
2022
$
2021
$
127,813
9,684
137,497
78,173
9,684
87,857
26,367
915,525
941,892
24,161
587,464
611,625
As at 30 June 2022, the Group’s other assets denominated in USD amounted to $941,892 (2021: $611,625)
2022 Annual Financial Report
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 9: PROPERTY, PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Cost
As at 1 July 2020
Additions
Disposals
Exchange differences
At 30 June 2021
Additions
Disposals
Exchange differences
Consolidated
2022
$
940,161
(489,834)
2021
$
535,002
(333,639)
450,327
201,363
Right of Use
Buildings
$
Motor
Vehicles
$
Plant and
Equipment
$
Office
Equipment
$
Total
$
268,831
48,170
-
(19,030)
297,971
279,768
-
18,206
56,738
46,162
-
(4,942)
97,958
62,800
-
8,944
82,129
6,650
-
(7,155)
81,624
-
-
7,453
56,989
3,602
-
(3,142)
57,449
26,129
-
1,859
464,687
104,584
-
(34,269)
535,002
368,697
-
36,462
As at 30 June 2022
595,945
169,702
89,077
85,437
940,161
Depreciation and impairment
As at 1 July 2020
Depreciation charge for the year
Disposals
Exchange differences
As at 30 June 2021
Depreciation charge for the year
Disposals
Exchange differences
As at 30 June 2022
Net Book Value
As at 30 June 2021
As at 30 June 2022
127,900
77,569
-
4,577
210,046
86,578
-
18,301
314,925
25,405
21,716
(44,545)
-
2,576
30,629
-
1,878
35,083
72,423
4,901
-
(6,926)
70,398
2,326
-
6,552
79,276
45,846
7,769
-
(2,996)
50,619
8,106
-
1,825
60,550
271,574
111,955
(44,545)
(5,345)
333,639
127,639
-
28,556
489,834
87,925
281,020
95,382
134,619
11,226
9,801
6,830
24,887
201,363
450,327
Included in the net carrying amount of property, plant and equipment are right-of-use assets as follows:
Right of Use Buildings
Consolidated
2022
$
281,020
281,020
2021
$
87,925
87,925
Depreciation in relation to right-of-use assets during the year was $86,578 (2021: $77,569)
2022 Annual Financial Report
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 9: PROPERTY, PLANT AND EQUIPMENT (continued)
During the year, an office lease was extended after the initial term has ended for a period of a further two
years. This addition to right of use assets was measured at its net present value at the commencement date
and the incremental borrowing rate applied to corresponding lease liability was 4%.
The useful life of the assets were estimated as follows for 2022 and 2021
Right of Use Buildings
Motor vehicles
Plant and equipment
Office equipment
2-4 years
2-5 years
2-5 years
2-5 years
NOTE 10: INTANGIBLE ASSETS
Development costs
Reconciliation of movements during the year:
Balance at the beginning of the year
Development costs capitalised
Consolidated
2022
$
2021
$
5,557,616
2,799,392
5,557,616
2,799,392
Consolidated
2022
$
2021
$
2,799,392
2,758,224
2,517,958
281,434
5,557,616
2,799,392
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 and
advanced engineering studies at its Paradox Brine Project in Utah, USA.
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
Disposals
Movements in fair value
Movements in foreign currency
Consolidated
2022
$
2021
$
104,165
104,165
130,594
130,594
130,594
(6,439)
(22,843)
2,853
104,165
94,810
(48,541)
87,545
(3,220)
130,594
These listed entities shares have been valued using quoted prices in active markets. The fair value of these
shares is denominated in Canadian Dollars.
2022 Annual Financial Report
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 12: TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables
Accruals
Convertible note interest payable
Consolidated
2022
$
1,037,054
20,031
30,000
127,611
1,214,696
2021
$
275,709
15,395
31,666
73,325
396,095
Trade payables are non-interest bearing and are normally settled on 30-day terms.
As at 30 June 2022 the Group’s trade and other payables denominated in USD amounted to $930,845 (2021:
$116,009).
NOTE 13: PROVISIONS
Current
Employee entitlements
Make good
Non-current
Make good
Rehabilitation
Consolidated
2022
$
2021
$
134,657
10,000
144,657
-
324,349
324,349
91,128
-
91,128
10,000
268,448
278,448
a
b
a. This relates to the estimated cost of making good the premises in relation to the lease entered into
during the year.
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.
2022 Annual Financial Report
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 14: LEASE LIABILITIES
Current
Non-Current
Consolidated
2022
$
2021
$
107,821
168,673
276,494
63,450
24,748
88,198
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.
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
1-3yrs
2.33yrs
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
2022 and 2021 were as follows:
Within 1
Year ($)
1-2
Years
($)
2-3 Years
($)
3-4 Years
($)
4-5
Years
($)
After 5
Years
($)
Minimum lease payments due
30 June 2022
Lease payments
Finance Charges
Net present values
117,829
(10,008)
107,821
97,372
(2,212)
95,160
74,723
(1,210)
73,513
-
-
-
-
-
-
-
-
-
Total ($)
289,924
(13,430)
276,494
2022 Annual Financial Report
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 14: LEASE LIABILITIES (continued)
Within 1
Year ($)
1-2
Years
($)
2-3 Years
($)
3-4 Years
($)
4-5
Years
($)
After 5
Years
($)
Minimum lease payments due
30 June 2021
Lease payments
Finance Charges
Net present values
67,122
(3,672)
63,450
25,199
(451)
24,748
-
-
-
-
-
-
-
-
-
-
-
-
Total ($)
92,321
(4,123)
88,198
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
Consolidated
2022
2021
($)
($)
18,077
-
18,077
11,898
3,510
15,408
The interest expense on lease liabilities during the year was $7,681 (2021: $13,668).
As at 30 June 2022, the Group’s lease liabilities denominated in USD amounted to $252,118 (2021: $41,788).
2022 Annual Financial Report
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 15: CONVERTIBLE NOTE
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
2022
$
2021
$
1,088,692
(179,337)
997,606
(323,493)
909,355
674,113
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
Consolidated
2022
$
2021
$
54,285
144,156
49,146
215,442
198,441
264,588
2022 Annual Financial Report
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 16: DERIVATIVE FINANCIAL LIABILITY
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 Consolidated 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 Consolidated Statement of Profit or Loss and
Other Comprehensive Income. During the year, the Group recognised $983,593 (2021: $1,070,196)
revaluation loss in the Consolidated Statement of Profit or Loss and Other Comprehensive Income relating to
the conversion feature derivative.
The fair value at year end is shown below:
Derivative financial liability (conversion feature on convertible note)
2,688,911
1,705,318
Total derivative financial liability
2,688,911
1,705,318
Consolidated
2022
2021
$
$
NOTE 17: CONTRIBUTED EQUITY
Paid up capital – ordinary shares
Capital raising costs
Consolidated
2022
$
2021
$
42,196,892
(5,135,611)
30,659,297
(4,002,113)
37,061,281
26,657,184
2022 Annual Financial Report
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 17: CONTRIBUTED EQUITY (continued)
(a)
Ordinary shares
2022 movements in ordinary share capital:
Balance at 1 July 2021
Issue of shares on conversion of options at $0.08685 each
Issue of shares in a private placement at $0.0910 each
Issue of shares on conversion of options at $0.035 each
Issue of shares on conversion of options at $0.06 each
Issue of shares on conversion of bonus options at $0.0910 each
Issue of shares on conversion of options at $0.0555 each
Issue of shares on conversion of options at $0.08685 each
Issue of shares on conversion of options at $0.035 each
Issue of shares on conversion of options at $0.08685 each
Capital raising costs (i)
Balance at 30 June 2022
Number of
shares
$
894,257,642
4,400,000
80,849,693
4,293,150
10,000,000
26,273,496
671,974
653,325
52,275
6,460,780
-
26,657,184
382,140
7,357,322
150,260
600,000
2,390,888
37,295
56,741
1,830
561,119
(1,133,498)
1,027,912,335
37,061,281
(i)
Included in the capital raising costs is the value of 10,000,000 options issued to the brokers which amounted to
$626,866. Refer to note 19(a).
2021 movements in ordinary share capital:
Balance at 1 July 2020
Issue of shares via private placement at $0.0185 each
Issue of shares via share purchase plan at $0.0185 each
Issue of shares on conversion of performance rights at $0.031 each
Issue of shares via private placement at $0.028 each
Issue of shares on conversion of unlisted options at $0.056 each
Issue of shares on conversion of listed options at $0.035 each
Capital raising costs (j)
Balance at 30 June 2021
662,461,778
62,702,704
56,486,587
1,800,000
86,028,573
24,088,000
690,000
-
21,838,998
1,160,000
1,045,000
55,800
2,408,800
1,348,928
24,150
(1,224,492)
894,257,642
26,657,184
(j)
Included in the capital raising costs is the value of 5,000,000 and 24,088,000 options issued to the underwriters of
the share purchase plan which amounted to $916,987
2022 Annual Financial Report
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 17: CONTRIBUTED EQUITY (continued)
(b)
Share options
Note (i)
Note (ii)
Note (iii)
Note (iv)
Note (v)
Note (vi)
Note (vii)
Note (viii)
Note (ix)
Note (x)
2022
Balance at 1 July 2021
Issued during the year
Exercised during the
year
Expired during the year
Balance at 30 June 2022
2021
-
-
-
-
-
-
-
-
-
-
11,514,105
10,000,000
61,810,000
-
-
-
(11,514,105)
(10,000,000)
(4,345,425)
-
-
-
-
-
57,464,575
Balance at 1 July 2020
5,681,819
10,000,000
11,514,105
10,000,000
62,500,000
-
-
-
-
-
-
Issued during the year
Exercised during the
year
Expired during the year
-
-
-
-
(5,681,819)
(10,000,000)
-
-
-
-
-
-
Balance at 30 June 2021
-
-
11,514,105
10,000,000
61,810,000
-
-
24,088,000
5,000,000
(690,000)
(24,088,000)
-
-
-
5,000,000
-
-
-
-
-
-
-
5,000,000
-
-
-
-
(671,974)
36,273,496
-
97,702,126
(26,273,496)
26,273,496
-
-
-
(71,428,630)
-
4,328,026
36,273,496
-
-
-
-
-
-
26,273,496
-
-
-
-
-
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
Unlisted options exercisable at 20c each on or before 18/07/20 issued as part of a private placement.
These options expired in prior year.
Unlisted options exercisable at 20c each on or before 18/07/20 issued to brokers as part of fees of
raising capital. These options expired in prior year.
Unlisted options exercisable at 8.7c each on or before 16/05/22 issued as part of an equity placement
agreement. All options were exercised in the period prior to expiry.
Unlisted options exercisable at 6c each on or before 10/09/21 issued as part of an equity placement
agreement. All options were exercised in the period prior to expiry.
Listed options exercisable at 3.5c each on or before 30/06/23 issued as part of an equity placement
agreement. During the year 4,354,425 listed options were exercised and converted into ordinary
shares at $0.035 each.
Unlisted options issued, exercisable at 5.6c each on or before 04/12/22 were issued as part of an
equity placement agreement. In the prior year, these options were exercised and converted into
ordinary shares at $0.0555 each.
Unlisted options exercisable at 5.55c each on or before 30/06/23 issued as part of an equity placement
agreement. During the year 671,974 unlisted options were exercised
Unlisted options exercisable at 20c each on or before 31/07/23 issued as part of an equity placement
agreement (26,273,496) and issued to brokers as part of the fees for a capital raising (10,000,000).
Unlisted bonus options exercisable at 9.1c each on or before 29/10/21 were issued as part of a bonus
option issue to shareholders. A total of 97,702,126 bonus options were issued, of which 26,273,496
were exercised during the year, and the balance of 71,428,630 expired during the year.
(x)
Listed bonus options exercisable at 20c each on or before 31/07/23 were issued as part of a bonus
option issue to shareholders. During the year no options were exercised.
Refer Note 19(a) for further details of options granted by the Company.
(c)
Performance Rights
Opening balance
Vested during the year
Closing balance
2022 (No.)
2021 (No.)
21,000,000
-
c.
22,800,000
(1,800,000)
21,000,000
21,000,000
2022 Annual Financial Report
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 17: CONTRIBUTED EQUITY (continued)
a. No performance rights were issued during the year.
b. During the financial year ended 30 June 2020, 16,600,000 Performance Rights were issued with the following
vesting milestones:
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. This milestone was assessed to be unachievable and hence no expense has
been recognized from date of grant.
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.
c.
In FY2021, these Performance Rights vested and were converted to ordinary shares as a result of the following
performance hurdles being achieved:
iv.
1.8m on completing a scoping or pre-feasibility study for lithium and / or bromine chemicals.
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 2021
3,174,968
102,710
(392,455)
2,885,223
Foreign currency translation of subsidiary
Revaluation of financial assets
Issue of options
Vesting of Performance Rights
Conversion of Performance Rights
-
-
626,866
(38,863)
-
-
(22,843)
-
-
-
304,416
-
-
-
-
304,416
(22,843)
626,866
(38,863)
-
As at 30 June 2022
3,762,971
79,867
(88,039)
3,754,799
As at 1 July 2020
Foreign currency translation of subsidiary
Revaluation of financial assets
Issue of options
Vesting of Performance Rights
Conversion of Performance Rights
Share-based
payments
$
2,160,650
Financial
Assets –
FVOCI
$
15,165
Foreign
currency
translation
$
Total
reserves
$
(159,432)
2,016,383
-
-
916,987
153,131
(55,800)
-
87,545
-
-
-
(233,023)
-
-
-
-
(233,023)
87,545
916,987
153,131
(55,800)
As at 30 June 2021
3,174,968
102,710
(392,455)
2,885,223
2022 Annual Financial Report
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 18: RESERVES (continued)
Share-based payments reserve
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.
Grant date
Expiry date
Share price
at grant
date
Exercise
Expected
Risk free
Dividend
price
volatility
rate
yield
Number of
options
Value per
Option
Total Value
Vesting terms
$
01/12/2021
31/07/23
$0.125
$0.20
129%
0.93%
0%
10,000,000
$0.0627
626,866
Immediately
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 capital raising costs.
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.
In addition, a range of further free attaching options were granted during the year. Refer to Note 17(b) (viii),
(ix) and (x) for further details options issued, exercised, cancelled average exercise prices.
2022 Annual Financial Report
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 19: SHARE BASED PAYMENTS (continued)
Options issued in prior year
During the prior 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
Exercise
Price
Number of
Options granted
Unlisted Options
4 Dec 2020
4 Dec 2022
$0.056
24,088,000
Unlisted Options
29 Jan 2021
30 June 2023
$0.0555
5,000,000
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 a capital raising cost as per Note 17(a) 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
04/12/20
04/12/22
24,088,000
Options
29/01/21
30/06/23
5,000,000
$0.034
$0.100
5.6c
0.12%
5.55c
0.11%
137%
168%
1.98c
8.79c
2022 Annual Financial Report
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 19: SHARE BASED PAYMENTS (continued)
(b) Performance Rights
The movement in performance rights during the year is presented below:
Balance at start of the year
Converted during the year:
Bruce Richardson
Greg Knox
Michael van Uffelen
30 June 2022
(No.)
30 June 2021
(No.)
21,000,000
22,800,000
-
-
-
-
(1,000,000)
(400,000)
(400,000)
(1,800,000)
Balance at year end
21,000,000
21,000,000
The Performance Rights issued in the prior year 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.
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 and 14,800,000 will lapse on 16 February 2027.
The assessed fair value at grant date of the Performance Rights granted in the prior years was 3.1 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
expense
Options Issued
2022
$
2021
$
(38,864)
153,131
-
-
(38,864)
153,131
The probability of achievement of several milestones and a re-assessment of the timeframe of achievement
by management during the year resulted in a write back of share based payments expense recognised in prior
years.
(d) 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 (2021: Nil). As at balance date, a total of 8,750,000 shares remain on issue under the Plan.
2022 Annual Financial Report
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 20: COMMITMENTS AND CONTINGENCIES
(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
Consolidated
2022
$
183,000
832,000
2021
$
132,000
832,000
1,015,000
964,000
(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%3.
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)
The Group is the lessee in respect of certain low value items which have not been capitalised.
Operating lease commitments:
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
(d)
Contingent liabilities
The are no contingent liabilities as at 30 June 2022.
Consolidated
2022
$
2021
$
-
-
-
-
629
-
-
629
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.
2022 Annual Financial Report
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 20: COMMITMENTS AND CONTINGENCIES (continued)
(e)
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
For terms please refer to Note 21(d).
NOTE 21: RELATED PARTY DISCLOSURE
(a)
Subsidiaries
Consolidated
2022
2021
$
$
189,957 175,399
189,957 175,399
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) (iii)
Rhodes Resources Pty Ltd (iii)
Western Cobalt Pty Ltd (iii)
A1 Lithium Inc.
Paradox Lithium LLC (iii)
Blackstone Resources Inc (ii) (iii)
State Exploration Pty Ltd (iii)
Country of
Incorporation
%
Equity Interest
2022
%
Equity interest
2021
Guatemala
Australia
Australia
USA
USA
USA
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
(i)
(ii)
(iii)
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.
Dormant entities
(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 22 for details of compensation to key management personnel.
There were no other transactions with KMPs or their associated entities during the year and in the prior year.
2022 Annual Financial Report
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 21: RELATED PARTY DISCLOSURE (continued)
(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
Consolidated
2022
$
189,957
189,957
2021
$
175,399
175,399
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.
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.
From the inception of the loan funded share plan no shares have been issued.
2022 Annual Financial Report
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 22: COMPENSATION FOR KEY MANAGEMENT PERSONNEL
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
2022
$
2021
$
848,154
890,806
7,272
12,006
(38,864)
153,131
816,562
1,055,943
Refer to the Remuneration Report for further information.
Included in the short-term employee benefits is an amount of $78,000 of consulting fees capitalised as
development cost (2021: $81,728).
NOTE 23: EVENTS AFTER BALANCE DATE
On 30 August 2022, Anson announced 158,765 shares were issued on the exercise of ASNOC listed options
at $0.035 per share
On 8 September 2022, Anson announced the completion of DFS confirming outstanding economics for its
Paradox Lithium Project.
On 9 September 2022, Anson announced 2,430,421 shares were issued on the exercise of ASNOC listed
options at $0.035 per share.
On 21 September 2022, Anson issued 4,757,359 shares following the exercise of various classes of listed and
unlisted options.
On 27 September 2022. Anson announced it had raised $50,000,000 before costs for the issue of 138,888,889
shares at $0.36 each.
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 24: AUDITOR’S REMUNERATION
Amounts received or due and receivable by the auditors for:
Audit or review of the financial reports of the Group
Consolidated
2022
$
2021
$
59,949
59,949
49,081
49,081
NOTE 25: FINANCIAL RISK MANAGEMENT
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.
2022 Annual Financial Report
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
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
2022
$
2021
$
5,730,923
2,232,947
10,171
951,576
104,165
21,446
621,309
130,594
6,796,835
3,006,296
1,214,696
276,494
909,355
396,095
88,198
674,113
2,688,911
1,705,318
5,089,456
2,863,724
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.
2022 Annual Financial Report
79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 25: 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
2022
$
2021
$
5,730,923
2,232,947
276,494
909,355
1,185,849
88,198
674,113
762,311
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 $57,309 (2021:
$22,329), based on the cash at bank at reporting date and calculated on an annual basis. The Board assessed
a 100 basis point movement as being reasonably possible based on short term historical movements. This
analysis assumes that all other variables remain constant.
Foreign currency risk
As a result of USD cash deposits, the Group's statement of financial performance can be affected significantly
by movements in the US$/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
2022
$
2021
$
330,981
941,892
1,272,873
118,686
611,625
730,311
930,845
252,118
1,182,963
116,009
41,788
157,797
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
2022
$
2021
$
104,165
104,165
130,594
130,594
2022 Annual Financial Report
80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 25: FINANCIAL RISK MANAGEMENT (continued)
Sensitivity analysis
The following table illustrates sensitivities to the Group’s exposures to exchange rates:
Year ended 30 June 2022
+/- 5% in $A/$US
+/- 5% in $A/$CAD
Year ended 30 June 2021
+/- 5% in $A/$US
+/- 5% in $A/$CAD
Other price risk
Consolidated
Profit/loss
$
Equity
$
4,495
-
4,495
5,208
21,520
-
21,520
6,530
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 2022, the Group had the following exposure to security price risk:
Financial Assets
Investments
Consolidated
2021
$
2022
$
104,165
130,594
104,165
130,594
The following table illustrates sensitivities to the Group’s exposures to security price risk:
Year ended 30 June 2022
+/- 20% in listed investments
Year ended 30 June 2021
+/- 20% in listed investments
(b)
Credit risk
Consolidated
Profit/loss
$
Equity
$
-
-
20,833
26,119
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.
2022 Annual Financial Report
81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 25: 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 31 December 2023, 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 (2021: $nil) under this equity placement facility during the financial year.
2022 Annual Financial Report
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 26: 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
Project acquisition costs
Unrealised foreign exchange differences
Changes in operating assets and liabilities:
Decrease in trade and other receivables
(Increase) /Decrease in other assets
Increase /(Decrease) in trade and other payables
Increase in provisions
Net cash outflow from operating activities:
Consolidated
2022
$
2021
$
(6,751,488)
(4,521,182)
127,639
983,593
(38,864)
(732)
204,716
-
-
411,945
111,955
1,070,196
153,131
(166)
276,411
1,696
(125,000)
411,027
(5,063,191)
(2,621,932)
11,295
(379,907)
818,601
53,529
2,337
14,759
(204,436)
20,857
(4,559,673)
(2,788,415)
(ii)
Changes in liabilities arising from financing activities
1 July 2021
New
Leases
Cash
Flows
Other
30 June
2022
Lease liabilities
88,198
279,768
(118,452)
26,980
276,494
Convertible note
Total liabilities from financing activities
674,113
762,311
-
279,768
-
(118,452)
235,242
909,355
262,222 1,185,849
1 July 2020
New
Leases
Cash
Flows
Other
30 June
2021
Lease liabilities
Convertible note
Total liabilities from financing activities
162,821
553,882
716,703
48,170
(91,875)
(30,918)
88,198
-
48,170
-
(91,875)
120,231
89,313
674,113
762,311
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.
2022 Annual Financial Report
83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 27: 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
Consolidated
2022
$
2021
$
5,515,145
2,204,957
706,144
669,289
6,221,289
2,874,246
(3,926,131)
(2,691,177)
(2,714)
(24,748)
(3,928,845)
(2,715,925)
2,292,444
158,321
37,061,281
26,657,184
3,842,837
3,277,677
(38,611,674)
(29,776,540)
2,292,444
158,321
(8,835,134)
(5,019,827)
(8,857,977)
(4,932,282)
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 20 to the
financial statements.
NOTE 28: 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.
2022 Annual Financial Report
84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
Anson Resources Limited
NOTE 28: FAIR VALUE MEASUREMENT (continued)
The following table details the Group’s assets and liabilities measured or disclosed at fair value.
2022
Assets
Financial Assets - FVOCI
Total assets
Liabilities
Derivative Liability
Total liabilities
2021
Assets
Financial Assets - FVOCI
Total assets
Liabilities
Derivative Liability
Total liabilities
Level 1
$
Level 2
$
Level 3
$
Total
$
104,165
104,165
-
-
-
-
104,165
104,165
- 2,688,911
- 2,688,911
- 2,688,911
- 2,688,911
130,594
130,594
-
-
-
-
130,594
130,594
- 1,705,318
- 1,705,318
- 1,705,318
- 1,705,318
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 (2021:
none).
2022 Annual Financial Report
85
Anson Resources Limited
DIRECTORS’ DECLARATION
1.
In the opinion of the Directors:
a)
the consolidated 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 2022 and of
its performance for the year ended 30 June 2022; 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 Group 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 2022.
This declaration is signed in accordance with a resolution of the Board of Directors.
Bruce Richardson
Executive Chairman and CEO
30 September 2022
2022 Annual Financial Report
86
PO Box 1908
West Perth WA 6872
Australia
Level 2, 40 Kings Park Road
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
Our 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 2022, the consolidated
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the financial 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)
giving a true and fair view of the Group's financial position as at 30 June 2022 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the 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.
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 year. 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.
We have determined the following matters described to be Key Audit Matters to be communicated in our
report.
Liability limited by a scheme approved under Professional Standards Legislation
Stantons Is a member of the Russell
Bedford International network of firms
Key Audit Matters
How these matters were addressed in the audit
Capitalised development costs
As disclosed in Note 10 to the consolidated
financial statements, the carrying value of the
capitalised development costs at 30 June 2022
totalled $5,557,616.
We identified the capitalisation of development
costs as a key audit matter due to the quantum
(43% of total assets) and nature of the amount in
addition to management’s judgment about the
future performance and viability of the Paradox
Brine Project to which the costs relate to.
The Group conducts a significant
level of
development activities and has to apply judgment in
for
that meet
identifying costs
capitalisation under
the
the
accounting standards.
the criteria
requirements of
Measurement of Share-based payments
As disclosed in Note 19 of the consolidated financial
statement,
the Company granted 10,000,000
unlisted options to brokers in consideration of the
services provided in managing and assisting with
raising capital. The total fair value recognised as
capital raising costs amounted to $626,866.
The Company accounted for these options in
accordance with AASB 2: Share-based Payment.
Measurement of share-based payments was a key
audit matter due to the complex and judgmental
estimates used in determining the fair value of the
share-based payments.
Inter alia, our audit procedures included the
following:
▪ Evaluated the nature of the development
that are capitalised as
incurred
costs
intangible assets;
▪ Assessed
the
the
capitalisation based on our knowledge of the
business and industry;
reasonableness of
▪ Evaluated the appropriateness of expenses
capitalised, on a sample basis, by agreeing
to external
the material costs
invoices and other
relevant supporting
documents; and
incurred
▪ Assessed whether any impairment of the
capitalised development costs was necessary
at 30 June 2022.
Inter alia, our procedures included the following:
▪ Examined relevant agreements to obtain an
understanding of the contractual nature and
terms and conditions of the share-based
payment arrangements;
▪ Assessed management’s determination of
the fair value of the share-based payments
granted, considering the appropriateness of
the valuation models used in assessing the
valuation inputs focusing on the Group’s
interpretation of grant date; vesting dates and
vesting conditions;
▪ Evaluated the allocation of the share-based
payment expense over the relevant period (as
applicable); and
▪ Considered the adequacy of the disclosures
in accordance with the applicable accounting
standards.
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 2022 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.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 26 to 34 of the directors’ report for the year
ended 30 June 2022.
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 2022
complies with section 300A of the Corporations Act 2001.
STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(An Authorised Audit Company)
Martin Michalik
Director
West Perth, Western Australia
30 September 2022
Anson Resources Limited
ASX ADDITIONAL INFORMATION
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report
is as follows. The information is current as at 27 September 2022.
(A)
DISTRIBUTION OF EQUITY SECURITIES
Ordinary share capital
• 1,174,147,769 fully paid ordinary shares are held by 7,534 individual shareholders.
All issued fully paid ordinary shares carry one vote per share and carry the rights to dividends.
Options
• 54,546,812 options expiring 30 June 2023 and exercisable at $0.035 are held by 210 option holders.
• 36,172,740 options expiring 31 June 2023 and exercisable at $0.20 are held by 851 option holders.
Options do not carry a right to vote.
The number of shareholders by size of holding are:
Range
Holders
1
1,001
-
-
1,000
5,000
5,001
- 10,000
10,001
- 100,000
100,001
- Over
Total
172
1,229
1,350
3,543
1,240
7,534
Units
25,550
4,054,008
10,696,299
133,134,795
1,026,237,117
1,174,147,769
The number of ASNOC Option holders by size of holding are:
Range
Holders
1
1,001
-
-
1,000
5,000
5,001
- 10,000
10,001
- 100,000
100,001
- Over
Total
4
9
11
108
78
210
Units
361
31,834
94,450
5,013,552
49,406,615
54,546,812
The number of ASNOD Option holders by size of holding are:
Range
Holders
1
1,001
-
-
1,000
5,000
5,001
- 10,000
10,001
- 100,000
100,001
- Over
Total
153
281
120
218
79
851
Units
103,110
811,580
955,322
7,492,996
26,809,732
36,172,740
%
0.00%
0.35%
0.92%
11.42%
87.31%
%
0.00%
0.06%
0.17%
9.19%
90.58%
%
0.29%
2.24%
2.64%
20.71%
74.12%
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
2022 Annual Financial Report
Number %
1 100
90
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
(B)
SUBSTANTIAL SHAREHOLDERS
Fully paid
Ordinary shareholders
Number
Percentage
CHIA TAI XINGYE INTNL
127,500,000
10.86%
(C)
TWENTY LARGEST SHAREHOLDERS
Ordinary shareholders
CHIA TAI XINGYE INTERNATIONAL
UBS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
MR DESHUN SHI
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY
LIMITED
JACK THE DOG PTY LTD
WARBONT NOMINEES PTY LTD
RICHARDSON BUSINESS CONSULTANTS PTY LTD
MR LEE SIMON BRIGGS
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
MR BASSAM OTHMAN
CS FOURTH NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
MRS XIAOXUAN LI
MR LI XIAO
MR ADAM ANDREW MACDOUGALL
MR PETER GREGORY KNOX
MR JASWANT SINGH
WO WAH INDUSTRIAL INVESTMENT LIMITED
Number
127,500,000
49,052,667
32,890,058
21,614,111
13,997,336
13,630,492
11,832,087
11,403,636
11,132,941
10,955,465
10,646,109
10,114,000
9,444,446
9,245,400
8,150,000
7,650,000
7,000,000
6,550,542
6,000,000
6,000,000
Percentage
10.86%
4.18%
2.80%
1.84%
1.19%
1.16%
1.01%
0.97%
0.95%
0.93%
0.91%
0.86%
0.80%
0.79%
0.69%
0.65%
0.60%
0.56%
0.51%
0.51%
TWENTY LARGEST ASNOC HOLDERS
Option holders
MR DESHUN SHI
MR PETER ANDREW PROKSA
MR MARTIN ALEXANDER ZIEGLER
MR TOMAS SONER
MR STEVEN JAMES APEDAILE + MRS MICHELLE LYNDA
APEDAILE
MR JASON GEORGE SPOONER
MR CLINTON RUSSELL KIRK
EVANDALE NELSON PTY LTD
MR XIAO YU
MR PHENG LAO
MR GRAHAM ROBERT FOREMAN
ITOKA PTY LTD
MR TONY TRAN
MR BLAIR ROBERT AITKEN
MR DEAN JOSEPH FARRANT
2022 Annual Financial Report
384,809,290
32.77%
Number
8,964,112
4,000,000
2,000,000
2,000,000
1,500,000
1,392,049
1,150,000
1,140,000
1,071,367
1,064,093
1,000,000
1,000,000
989,346
900,000
879,905
Percentage
16.43%
7.33%
3.67%
3.67%
2.75%
2.55%
2.11%
2.09%
1.96%
1.95%
1.83%
1.83%
1.81%
1.65%
1.61%
91
MR MICHAEL HEATON + MRS REBECCA JANE CATTELL
MISS KATHARINE ELIZABETH KNOWLES
MR RICHARD HENRY LAWRENCE PETERS + MRS MAUREEN
AUDREY PETERS
MR LEE SIMON BRIGGS
MR ADRIAN WILLIAM VAUGHAN
TWENTY LARGEST ASNOD HOLDERS
Option holders
MR FRANCESCO LUCIO MOLINO
MR DESHUN SHI
PETER CALDER GROVES
MRS DONNA LEE SMITH
MR BASSAM OTHMAN
MR TOMAS SONER
MR MATTHEW WILLIAM REYNOLDS
MR STEVEN JAMES APEDAILE + MRS MICHELLE LYNDA
APEDAILE
DR GREGORY CLAYTON JANES
MR KEITH RAYMOND BALLARD + MRS MICHELLE
KATHLEEN BALLARD
MR CRAIG LAWRENCE GRAHAM
MR GRAHAM ROBERT FOREMAN
CHARLFA INVESTMENTS PTY LTD
MR HOLDEN CHENG
MR EDWARD JAMES HARWOOD + MRS BEVERLEY MARIE
HARWOOD
MR STEVEN JAMES APEDAILE + MRS MICHELLE LYNDA
APEDAILE
MR DEAN JOSEPH FARRANT
MR STEPHEN SHERRIN
CITICORP NOMINEES PTY LIMITED
MR NATANAEL INDARTA
Anson Resources Limited
865,000
800,000
794,000
789,070
678,687
32,977,629
1.59%
1.47%
1.46%
1.45%
1.24%
60.46%
Number
Percentage
3,800,000
1,295,887
1,042,500
1,040,481
800,000
800,000
675,354
620,000
587,958
530,000
529,100
500,100
500,000
494,889
477,683
455,358
454,388
435,000
433,663
428,000
10.51%
3.58%
2.88%
2.88%
2.21%
2.21%
1.87%
1.71%
1.63%
1.47%
1.46%
1.38%
1.38%
1.37%
1.32%
1.26%
1.26%
1.2%
1.2%
1.18%
15,900,361
43.96%
(D)
UNMARKETABLE PARCELS
There were 316 holdings (227,785 shares in total) of less than a marketable parcel of ordinary shares as at
27 September 2022.
There were 316 holdings (227,785 shares in total) of less than a marketable parcel of ordinary shares as at 27
September 2022.
(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.
2022 Annual Financial Report
92
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued)
(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:
Project
Lease
Commodity
Holder
Locality
Status
Ajana
E66/89
Graphite and
base metals
Rhodes Resources Pty
Ltd
Western
Australia
E66/94
Graphite and
base metals
Anson Resources
Limited
Western
Australia
Hooley Well
E9/2218
Cobalt, nickel
E9/2219
Cobalt, nickel
ELA9/2462
Cobalt, nickel
Western Cobalt Pty
Ltd
Western
Australia
Anson Resources
Limited
Anson Resources
Limited
Western
Australia
Western
Australia
Granted
Granted
Granted
Granted
Under Application
The Bull
E70/5420
Ni-Cu-PGE
State Exploration Pty
Ltd
Western
Australia
Granted
ELA70/5619
Ni-Cu-PGE
Anson Resources
Limited
Western
Australia
Under Application
Paradox
Brine
Paradox
Brine
Paradox
Brine
Paradox
Brine
Paradox
Brine
87 Placer
Claims
155 Placer
Claims
71 Placer
Claims
191 Placer
Claims
66 Placer
Claims
Lithium
(i)
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)
2022 Annual Financial Report
93
Paradox
Brine
Paradox
Brine
178 Placer
Claims
334 Placer
Claims
Paradox
Brine
228 Placer
Claims
Paradox
Brine
3 Potash &
Mineral Lease
Paradox
Brine
2 Industrial
Permit
Anson Resources Limited
Lithium
A1 Lithium Inc
Utah, USA
Lithium
A1 Lithium Inc
Utah, USA
(vi)
(vii)
Lithium
A1 Lithium Inc
Utah, USA
(viii)
Lithium
A1 Lithium Inc
Utah, USA
(viii)
Lithium
A1 Lithium Inc
Utah, USA
(ix)
(x)
Yellow Cat
Project
151 Lode
Claims
Vanadium and
Uranium
Blackstone Resources
Inc
Utah, USA
2022 Annual Financial Report
94
Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued) (Tenements as at 30 June 2022)
(i) Anson currently holds a 50% interest in 87 Placer Claims in Utah, USA (the ULI Project).
At the date of this Report, the holder of the remaining 50% interest had not completed the formalities to
transfer the claims to the joint venture company (Paradox Lithium LLC) established for this purpose.
Further, achievement of the milestones which increased Anson’s interest to 50% may be subject to
finalisation under the terms of the agreement to earn-into the ULI Project
These claims are referred to as ULI-13, ULI-14, ULI-14S, ULI-15, ULI15S, ULI16, ULI16S, ULI-30, ULI-
31, ULI-32, ULI-33, ULI-34, ULI-35, ULI-36, ULI-37, ULI-38, ULI-39, ULI-40, ULI-41, ULI-42, ULI-43,
ULI-54, ULI-55, ULI-56, ULI-57, ULI-58, ULI-59, ULI-60, ULI-60-E, ULI-61-E, ULI-62-E, ULI-63, ULI-64,
ULI-64 N, ULI-65, ULI-65 W, ULI-66, ULI-67, ULI-68, ULI-69, ULI-70, ULI-71, ULI-77, ULI-78, ULI-79,
ULI-80, ULI-81, ULI-81 W, ULI-82, ULI-83, ULI-84, ULI-85, ULI-86, ULI-87, ULI-88, ULI-89, ULI-90, ULI-
91, ULI-92, ULI-93, ULI-93 E, ULI-94, ULI-95, ULI-96, ULI-97, ULI-97 E, ULI-98, ULI-98 N, ULI-99,
ULI-100, ULI-101, ULI-102, ULI-102 N, ULI-103, ULI-104, ULI-105, ULI-105 N, ULI-106, ULI-107, ULI-
107 N, ULI-108, ULI-109, ULI-110, ULI-111, ULI-112, ULI-113 and ULI-114.
(ii) 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, 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,
(iii) 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.
2022 Annual Financial Report
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Anson Resources Limited
ASX ADDITIONAL INFORMATION (continued) (Tenements as at 30 June 2022)
(iv) Anson currently holds a 100% interest in 191 Placer Claims in Utah, USA.
These claims are referred to as ULI649, ULI650, ULI651, ULI652, ULI 652W, ULI657, ULI658, ULI659,
ULI660, ULI660W, 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.
(v) Anson currently holds a 100% interest in 66 Placer Claims in Utah, USA.
These claims are referred to as CLOUD001, CLOUD002, CLOUD003, CLOUD004, CLOUD005,
CLOUD006, CLOUD007, CLOUD008, CLOUD009, CLOUD010, CLOUD011, CLOUD012, CLOUD013,
CLOUD014, CLOUD015, CLOUD016, CLOUD017, CLOUD018, CLOUD019, CLOUD020, CLOUD021,
CLOUD022, CLOUD023, CLOUD024, CLOUD025, CLOUD026, CLOUD027, CLOUD028, CLOUD029,
CLOUD030, CLOUD031, CLOUD032, CLOUD033, CLOUD034, CLOUD035, CLOUD036, CLOUD037,
CLOUD038, CLOUD039, CLOUD040, CLOUD041, CLOUD042, CLOUD043, CLOUD044, CLOUD045,
CLOUD046, CLOUD047, CLOUD048, CLOUD049, CLOUD050, CLOUD051, CLOUD052, CLOUD053,
CLOUD054, CLOUD055, CLOUD056, CLOUD057, CLOUD058, CLOUD059, CLOUD060, CLOUD061,
CLOUD062, CLOUD063, CLOUD064, CLOUD065 and CLOUD066
(vi) Anson currently holds a 100% interest in 178 Placer Claims in Utah, USA.
These claims are referred to as CANE001, CANE002, CANE003, CANE004, CANE005, CANE006,
CANE007, CANE008, CANE009, CANE010, CANE011, CANE012, CANE013, CANE014, CANE015,
CANE016, CANE017, CANE018, CANE019, CANE020, CANE021, CANE022, CANE023, CANE024,
CANE025, CANE026, CANE027, CANE028, CANE029, CANE030, CANE031, CANE032, CANE033,
CANE034, CANE035, CANE036, CANE037, CANE038, CANE039, CANE040, CANE041, CANE042,
CANE043, CANE044, CANE045, CANE046, CANE047, CANE048, CANE049, CANE050, CANE051,
CANE052, CANE053, CANE054, CANE055, CANE056, CANE057, CANE058, CANE059, CANE060,
CANE061, CANE062, CANE063, CANE064, CANE065, CANE066, CANE067, CANE068, CANE069,
CANE070, CANE071, CANE072, CANE073, CANE074, CANE075, CANE076, CANE077, CANE078,
CANE079, CANE080, CANE081, CANE082, CANE083, CANE084, CANE085, CANE086, CANE087,
CANE088, CANE089, CANE090, CANE091, CANE092, CANE093, CANE094, CANE095, CANE096,
CANE097, CANE098, CANE099, CANE100, CANE101, CANE102, CANE103, CANE104, CANE105,
CANE106, CANE107, CANE108, CANE109, CANE110, CANE111, CANE112, CANE113, CANE114,
CANE115, CANE116, CANE117, CANE118, CANE119, CANE120, CANE121, CANE122, CANE123,
CANE124, CANE125, CANE126, CANE127, CANE128, CANE129, CANE130, CANE131, CANE132,
CANE133, CANE134, CANE135, CANE136, CANE137, CANE138, CANE139, CANE140, CANE141,
CANE142, CANE143, CANE144, CANE145, CANE146, CANE147, CANE148, CANE149, CANE150,
CANE151, CANE152, CANE153, CANE154, CANE155, CANE156, CANE157, CANE158, CANE159,
CANE160, CANE161, CANE162, CANE163, CANE164, CANE165, CANE166, CANE167, CANE168,
CANE169, CANE170, CANE171, CANE172, CANE173, CANE314, CANE175, CANE176, CANE177,
and CANE178.
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ASX ADDITIONAL INFORMATION (continued) (Tenements as at 30 June 2022)
(vii) Anson currently has applied for a 100% interest in 334 Placer Claims in Utah, USA. Under the
terms of the earn-in agreement referred to in point (i) above for the ULI Project, 88 of these placer
claims may be subject to area of interest provisions of the agreement to earn-into the ULI Project.
Anson Resources Limited
These claims are referred
to as CLOUDIII001, CLOUDIII002, CLOUDIII003, CLOUDIII004,
CLOUDIII005, CLOUDIII006, CLOUDIII007, CLOUDIII008, CLOUDIII009, CLOUDIII010, CLOUDIII011,
CLOUDIII012, CLOUDIII013, CLOUDIII014, CLOUDIII015, CLOUDIII016, CLOUDIII017, CLOUDIII018,
CLOUDIII019, CLOUDIII020, CLOUDIII021, CLOUDIII022, CLOUDIII023, CLOUDIII024, CLOUDIII025,
CLOUDIII026, CLOUDIII027, CLOUDIII028, CLOUDIII029, CLOUDIII030, CLOUDIII031, CLOUDIII032,
CLOUDIII033, CLOUDIII034, CLOUDIII035, CLOUDIII036, CLOUDIII037, CLOUDIII038, CLOUDIII039,
CLOUDIII040, CLOUDIII041, CLOUDIII042, CLOUDIII043, CLOUDIII044, CLOUDIII045, CLOUDIII046,
CLOUDIII047, CLOUDIII048, CLOUDIII049, CLOUDIII050, CLOUDIII051, CLOUDIII052, CLOUDIII053,
CLOUDIII054, CLOUDIII055, CLOUDIII056, CLOUDIII057, CLOUDIII058, CLOUDIII059, CLOUDIII060,
CLOUDIII061, CLOUDIII062, CLOUDIII063, CLOUDIII064, CLOUDIII065, CLOUDIII066, CLOUDIII067,
CLOUDIII068, CLOUDIII069, CLOUDIII070, CLOUDIII071, CLOUDIII072, CLOUDIII073, CLOUDIII074,
CLOUDIII075, CLOUDIII076, CLOUDIII077, CLOUDIII078, CLOUDIII079, CLOUDIII080, CLOUDIII081,
CLOUDIII082, CLOUDIII083, CLOUDIII084, CLOUDIII085, CLOUDIII086, CLOUDIII087, CLOUDIII088,
CLOUDIII089, CLOUDIII090, CLOUDIII091, CLOUDIII092, CLOUDIII093, CLOUDIII094, CLOUDIII095,
CLOUDIII096, CLOUDIII097, CLOUDIII098, CLOUDIII099, CLOUDIII100, CLOUDIII101, CLOUDIII102,
CLOUDIII103, CLOUDIII104, CLOUDIII105, CLOUDIII106, CLOUDIII107, CLOUDIII108, CLOUDIII109,
CLOUDIII110, CLOUDIII111, CLOUDIII112, CLOUDIII113, CLOUDIII114, CLOUDIII115, CLOUDIII116,
CLOUDIII117, CLOUDIII118, CLOUDIII119, CLOUDIII120, CLOUDIII121, CLOUDIII122, CLOUDIII123,
CLOUDIII124, CLOUDIII125, CLOUDIII126, CLOUDIII127, CLOUDIII128, CLOUDIII129, CLOUDIII130,
CLOUDIII131, CLOUDIII132, CLOUDIII133, CLOUDIII134, CLOUDIII135, CLOUDIII136, CLOUDIII137,
CLOUDIII138, CLOUDIII139, CLOUDIII140, CLOUDIII141, CLOUDIII142, CLOUDIII143, CLOUDIII144,
CLOUDIII145, CLOUDIII146, CLOUDIII147, CLOUDIII148, CLOUDIII149, CLOUDIII150, CLOUDIII151,
CLOUDIII152, CLOUDIII153, CLOUDIII154, CLOUDIII155, CLOUDIII156, CLOUDIII157, CLOUDIII158,
CLOUDIII159, CLOUDIII160, CLOUDIII161, CLOUDIII162, CLOUDIII163, CLOUDIII164, CLOUDIII165,
CLOUDIII166, CLOUDIII167, CLOUDIII168, CLOUDIII169, CLOUDIII170, CLOUDIII171, CLOUDIII172,
CLOUDIII173, CLOUDIII174, CLOUDIII175, CLOUDIII176, CLOUDIII177, CLOUDIII178, CLOUDIII179,
CLOUDIII180, CLOUDIII181, CLOUDIII182, CLOUDIII183, CLOUDIII184, CLOUDIII185, CLOUDIII186,
CLOUDIII187, CLOUDIII188, CLOUDIII189, CLOUDIII190, CLOUDIII191, CLOUDIII192, CLOUDIII193,
CLOUDIII194, CLOUDIII195, CLOUDIII196, CLOUDIII197, CLOUDIII198, CLOUDIII199, CLOUDIII200,
CLOUDIII201, CLOUDIII202, CLOUDIII203, CLOUDIII204, CLOUDIII205, CLOUDIII206, CLOUDIII207,
CLOUDIII208, CLOUDIII209, CLOUDIII210, CLOUDIII211, CLOUDIII212, CLOUDIII213, CLOUDIII214,
CLOUDIII215, CLOUDIII216, CLOUDIII217, CLOUDIII218, CLOUDIII219, CLOUDIII220, CLOUDIII221,
CLOUDIII222, CLOUDIII223, CLOUDIII224, CLOUDIII225, CLOUDIII226, CLOUDIII227, CLOUDIII228,
CLOUDIII229, CLOUDIII230, CLOUDIII231, CLOUDIII232, CLOUDIII233, CLOUDIII234, CLOUDIII235,
CLOUDIII236, CLOUDIII237, CLOUDIII238, CLOUDIII239, CLOUDIII240, CLOUDIII241, CLOUDIII242,
CLOUDIII243, CLOUDIII244, CLOUDIII245, CLOUDIII246, CLOUDIII247, CLOUDIII248, CLOUDIII249,
CLOUDIII250, CLOUDIII251, CLOUDIII252, CLOUDIII253, CLOUDIII254, CLOUDIII255, CLOUDIII256,
CLOUDIII257, CLOUDIII258, CLOUDIII259, CLOUDIII260, CLOUDIII261, CLOUDIII262, CLOUDIII263,
CLOUDIII264, CLOUDIII265, CLOUDIII266, CLOUDIII267, CLOUDIII268, CLOUDIII269, CLOUDIII270,
CLOUDIII271, CLOUDIII272, CLOUDIII273, CLOUDIII274, CLOUDIII275, CLOUDIII276, CLOUDIII277,
CLOUDIII278, CLOUDIII279, CLOUDIII280, CLOUDIII281, CLOUDIII282, CLOUDIII283, CLOUDIII284,
CLOUDIII285, CLOUDIII286, CLOUDIII287, CLOUDIII288, CLOUDIII289, CLOUDIII290, CLOUDIII291,
CLOUDIII292, CLOUDIII293, CLOUDIII294, CLOUDIII295, CLOUDIII296, CLOUDIII297, CLOUDIII298,
CLOUDIII299, CLOUDIII300, CLOUDIII301, CLOUDIII302, CLOUDIII303, CLOUDIII304, CLOUDIII305,
CLOUDIII306, CLOUDIII307, CLOUDIII308, CLOUDIII309, CLOUDIII310, CLOUDIII311, CLOUDIII312,
CLOUDIII313, CLOUDIII314, CLOUDIII315, CLOUDIII316, CLOUDIII317, CLOUDIII318, CLOUDIII319,
CLOUDIII320, CLOUDIII321, CLOUDIII322, CLOUDIII323, CLOUDIII324, CLOUDIII325, CLOUDIII326,
CLOUDIII327, CLOUDIII328, CLOUDIII329, CLOUDIII330, CLOUDIII331, CLOUDIII332,
CLOUDIII333 and CLOUDIII334.
(viii) Anson currently holds a 100% interest in 228 Placer Claims in Utah, USA.
These claims are referred to ULI2 001, ULI2 002, ULI2 003, ULI2 004, ULI2 005, ULI2 006, ULI2 007,
ULI2 008, ULI2 009, ULI2 010, ULI2 011, ULI2 012, ULI2 013, ULI2 014, ULI2 015, ULI2 016, ULI2 017,
ULI2 018, ULI2 019, ULI2 020, ULI2 021, ULI2 022, ULI2 023, ULI2 024, ULI2 025, ULI2 026, ULI2 027,
ULI2 028, ULI2 029, ULI2 030, ULI2 031, ULI2 032, ULI2 033, ULI2 034, ULI2 035, ULI2 036, ULI2 037,
ULI2 038, ULI2 039, ULI2 040, ULI2 041, ULI2 042, ULI2 043, ULI2 044, ULI2 045, ULI2 046, ULI2 047,
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Anson Resources Limited
ULI2 048, ULI2 049, ULI2 050, ULI2 051, ULI2 052, ULI2 053, ULI2 054, ULI2 055, ULI2 056, ULI2 057,
ULI2 058, ULI2 059, ULI2 060, ULI2 061, ULI2 062, ULI2 063, ULI2 064, ULI2 065, ULI2 066, ULI2 067,
ULI2 068, ULI2 069, ULI2 070, ULI2 071, ULI2 072, ULI2 073, ULI2 074, ULI2 075, ULI2 076, ULI2 077,
ULI2 078, ULI2 079, ULI2 080, ULI2 081, ULI2 082, ULI2 083, ULI2 084, ULI2 085, ULI2 086, ULI2 087,
ULI2 088, ULI2 089, ULI2 090, ULI2 091, ULI2 092, ULI2 093, ULI2 094, ULI2 095, ULI2 096, ULI2 097,
ULI2 098, ULI2 099, ULI2 100, ULI2 101, ULI2 102, ULI2 I103, ULI2 104, ULI2 105, ULI2 106, ULI2
107, ULI2 108, ULI2 109, ULI2 110, ULI2 111, ULI2 112, ULI2 113, ULI2 114, ULI2 115, ULI2 116, ULI2
117, ULI2 118, ULI2 119, ULI2 120, ULI2 121, ULI2 122, ULI2 123, ULI2 124, ULI2 125, ULI2 126, ULI2
127, ULI2 128, ULI2 129, ULI2 130, ULI2 131, ULI2 132, ULI2 133, ULI2 134, ULI2 135, ULI2 136, ULI2
137, ULI2 138, ULI2 139, ULI2 140, ULI2 141, ULI2 142, ULI2 143, ULI2 144, ULI2 145, ULI2 146, ULI2
147, ULI2 148, ULI2 149, ULI2 150, ULI2 151, ULI2 152, ULI2 153, ULI2 154, ULI2 155, ULI2 156, ULI2
157, ULI2 158, ULI2 159, ULI2 160, ULI2 161, ULI2 162, ULI2 163, ULI2 164, ULI2 165, ULI2 166, ULI2
167, ULI2 168, ULI2 169, ULI2 170, ULI2 171, ULI2 172, ULI2 173, ULI2 174, ULI2 175, ULI2 176, ULI2
177, ULI2 178, ULI2 179, ULI2 180, ULI2 181, ULI2 182, ULI2 183, ULI2 184, ULI2 185, ULI2 186, ULI2
187, ULI2 188, ULI2 189, ULI2 190, ULI2 191, ULI2 192, ULI2 193, ULI2 194, ULI2 195, ULI2 196, ULI2
197, ULI2 198, ULI2 199, ULI2 200, ULI2 201, ULI2 202, ULI2 203, ULI2 204, ULI2 205, ULI2 206, ULI2
207, ULI2 208, ULI2 209, ULI2 210, ULI2 211, ULI2 212, ULI2 213, ULI2 214, ULI2 215, ULI2 216, ULI2
217, ULI2 218, ULI2 219, ULI2 220, ULI2 221, ULI2 222, ULI2 223, ULI2 224, ULI2 225, ULI2 226, ULI2
227, ULI2 228.
(ix) Anson currently holds a 100% interest in 3 SITLA Potash and Mineral Salts Lease in Utah, USA. This
claim is referred to as ML-53853-OBA, ML-54099-OBA and ML-54253-OBA.
(x) Anson currently holds a 100% interest in 2 SITLA Industrial Permit in Utah, USA. These claims are
referred to as SULA1872 and 1930.
(xi) Anson currently holds a 100% interest in 149 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, YELLOWCAT120, YELLOWCAT121, YELLOWCAT122,
YELLOWCAT123, YELLOWCAT124, YELLOWCAT125, YELLOWCAT126, YELLOWCAT127,
YELLOWCAT128, YELLOWCAT129, YELLOWCAT130, YELLOWCAT131, YELLOWCAT132,
YELLOWCAT133, YELLOWCAT162, YELLOWCAT163, YELLOWCAT164, YELLOWCAT165,
YELLOWCAT166, YELLOWCAT167, YELLOWCAT168, YELLOWCAT169, YELLOWCAT170,
YELLOWCAT171, YELLOWCAT172, YELLOWCAT173, YELLOWCAT174, YELLOWCAT175,
YELLOWCAT196, YELLOWCAT197, YELLOWCAT198, YELLOWCAT199,
YELLOWCAT200,
YELLOWCAT201, YELLOWCAT202, YELLOWCAT203, YELLOWCAT204, YELLOWCAT205,
YELLOWCAT206, YELLOWCAT207, YELLOWCAT208, YELLOWCAT209, YELLOWCAT210,
YELLOWCAT211, YELLOWCAT213, YELLOWCAT231, YELLOWCAT232, YELLOWCAT233,
YELLOWCAT234, YELLOWCAT235, YELLOWCAT236, YELLOWCAT237, YELLOWCAT238,
YELLOWCAT239, YELLOWCAT240, YELLOWCAT241, YELLOWCAT242, YELLOWCAT243,
YELLOWCAT244, YELLOWCAT246, YELLOWCAT267, YELLOWCAT268, YELLOWCAT269,
YELLOWCAT270, YELLOWCAT271, YELLOWCAT272, YELLOWCAT273, YELLOWCAT274,
YELLOWCAT275, YELLOWCAT276, YELLOWCAT277, YELLOWCAT278,
YELLOWCAT284,
YELLOWCAT308, YELLOWCAT309, YELLOWCAT310, YELLOWCAT311, YELLOWCAT312,
YELLOWCAT313, YELLOWCAT314, YELLOWCAT315, YELLOWCAT316, YELLOWCAT317 and
JM#1 to JM#22.
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