ARGENT MINERALS LIMITED
Annual Report 2019
CONTENTS
CHAIRMAN’S LETTER
OPERATIONS REVIEW
CORPORATE GOVERNANCE STATEMENT
DIRECTORS’ REPORT
LEAD AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL STOCK EXCHANGE INFORMATION
SCHEDULE OF MINERAL TENEMENTS
MINERAL RESOURCES AND ORE RESERVES STATEMENT
CORPORATE DIRECTORY
3
4
11
12
21
22
23
24
25
26
46
47
52
55
56
IBC
FRONT COVER: Drill core extraction during diamond drilling operations at the Pine Ridge Gold Mine in 2019
PAGE 2 | ARGENT MINERALS LIMITED
CHAIRMAN’S LETTER
Dear Shareholders,
On behalf of the Board, I am pleased to present this report for the 2018/19 fi nancial year (FY2019).
During FY2019, the Company refocused its efforts on its top three precious metal projects, as investors responded with renewed
enthusiasm to the price of gold awakening from several years of range-constrained trading, and more recently, silver as it emerged
from the shadows into the spotlight.
The year commenced with the announcement of the results of the Company’s application of modern exploration tools and fresh
analytical thinking to the Pine Ridge Gold Mine located a short distance to the south of Argent’s fl agship Kempfi eld project.
The modern techniques applied by our able staff have shed new light on this deposit, which is prized for its high grade gold.
This work revealed potential that extends way beyond an outlook limited to quartz vein-associated gold - over a much larger area
than considered historically.
During the year, the Company’s patient and persistent work with the various regulatory authorities and land holders was
rewarded with a completion of the granting of the necessary approvals and access required to conduct the fi rst drilling at the
Pine Ridge project in 20 years. In addition to validating the historical high grade intersections at Pine Ridge, the drilling results also
confi rmed depth extensions and 6 kilometres of along-strike potential, further elevating its strategic importance in the Company’s
asset portfolio.
Meanwhile Argent continued to advance the Kempfi eld project, fuelled by the signifi cant breakthroughs it achieved in the previous
year with 3D modeling and metallurgy. These breakthroughs opened up a new development scenario for Kempfi eld as a large-scale
opportunity in a NSW mining growth neighbourhood - providing signifi cant leverage to silver and gold, as refl ected by the Annual
Mineral Resources and Ore Reserves Statement in this report.
During FY2019, the Company designed a drilling programme comprising 37 new holes, for which Government approvals were sought
and granted. We look forward to drilling the fi rst stage of this programme, which is focused on the identifi ed copper-gold footwall and
feeder zone potential to the west of the known deposit.
The Company also conducted a gravity survey over an area of more than 22 square kilometres at its 78%-owned West Wyalong
project that is strategically located in a highly productive gold producer neighbourhood featuring Evolution Mining’s 6 million ounce
Cowal Mine 45 kilometres to the north. Analysis of the combined data resulted in the generation of 6 high priority targets. The
Company is also looking forward to commencing this drilling programme.
Our gratitude goes to the Argent employees and contractors, whose enthusiastic efforts have made this all happen, with special
thanks to CEO David Busch whose leadership over more than 7 years has developed Argent to the company that it is today,
positioned for growth in what we believe to be a very bright future ahead. We wish David all the best as he moves on in
December 2019 to pursue his next venture.
We also thank our shareholders for their ongoing support of the Argent Board and management team.
We look forward to the 2020 fi nancial year, as we continue to pursue the development of Argent to its full potential as a successful
leading mineral resources company.
Yours Sincerely,
Peter Wall
Chairman
Annual Report to Shareholders | 3
OPERATIONS REVIEW
2019 HIGHLIGHTS
KEMPFIELD - GOLD TARGETS IDENTIFIED FOR DRILLING
High grade gold-focussed strategy
- Complements major metallurgical breakthroughs achieved for the primary material.
- Advances Kempfi eld toward production in proven large-scale mining region.
- Potential early revenue from small-scale gold production.
Gold-drilling programme – Government approval granted for 37 holes
Initial 7 diamond holes designed to prioritise:
- Gold-copper footwall domain where historical drilling yielded several high grade gold intersections including 10.2 m @ 1.5 g/t
Au from 28 m (AKDD197), in the southwest region of the deposit where other drilling has yielded numerous high-grade gold
intersections, including the spectacular AKDD181 results highlights: 1 m @ 1,065 g/t Au and 143 g/t Ag from 97 m, and
1.8 m @ 1.21% Cu, 2.99 g/t Au and 50 g/t Ag from 136.8 m.
- Potential feeder zone including historic Kempfi eld Copper Mine where Government records reported very high historical assays
ranging from 23 to 27% Cu.
PINE RIDGE GOLD MINE – INITIAL DRILLING PROGRAMME INTERSECTS HIGH GRADE GOLD
Milestone hole with visual gold intersected 19 m @ 3.2 g/t Au from 98.4 m including 0.6 m @ 4.4 g/t Au from 98.4 m,
1 m @ 4.0 g/t Au from 101 m and 1 m @ 40.7 g/t Au from 106 m (APDD031).
Geological similarities to the economic McPhillamys 2.3 Moz deposit located north on the same structure.
Prospect enhanced through the fi rst drilling to be conducted in 20 years
- 40 metre increase in the depth of gold mineralisation.
- Geology consistent with identifi ed 6 km along-strike potential.
Accuracy of historical high-grade results confi rmed
Successful milestone in Argent’s economic gold-focussed strategy
WEST WYALONG – COMPELLING DRILL TARGETS IDENTIFIED IN HIGHLY PRODUCTIVE GOLD AREA
Large gravity survey completed over large area within signifi cant economic producer district
- Geological neighbours include Newcrest Cadia (+36 Moz Au) and Lake Cowal Mine (+6 Moz Au)
New 3D model generated for analysis of combined historical results
- Incorporates all data obtained by Argent – including geophysical, mineralogical and lithogeochemical data.
- Sophisticated analysis conducted.
6 new targets generated for priority drilling
EXPLORATION – KEMPFIELD AND PINE RIDGE (100% ARGENT)
GOLD-FOCUSSED STRATEGY TO ADVANCE TOWARD PRODUCTION
At the Company’s AGM presentation to investors on 28 November 2018 Argent issued its strategy to focus on high-grade gold
exploration within and to the immediate south of the Kempfi eld multi-metallic project.
The announcement followed several key developments during the year that enabled Argent to pursue this strategy, and in the opinion
of the board and management, is also well-timed to take advantage of any renewed interest in the global precious metals markets,
while the Company aggressively pursues the path to production revenue.
The gold-focused exploration strategy complements key achievements during 2018. Signifi cant breakthroughs in metallurgy have
enabled a major revision to the Company’s JORC-compliant Resource and Exploration Target for its Kempfi eld project. These
achievements have advanced the project in a region that has a track record of hosting some of the largest metallic mines in Australia,
including Newcrest’s Cadia Ridgeway gold mine.
PAGE 4 | ARGENT MINERALS LIMITED
In addition to advancing Kempfi eld toward production, Argent’s new high-grade gold-focused strategy provides potential for early
revenue from small scale gold production.
OPERATIONS REVIEW
Figure 1 – New potential development scale for Kempfi eld project in large-scale mining growth neighbourhood
Notes:
1. An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defi ned geological setting where the statement or estimate, quoted as a
range of tonnes and a range of grade, relates to mineralisation for which there has been insuffi cient exploration to estimate a Mineral Resource. The potential quantity and grade
of the Exploration Target is conceptual in nature, there has been insuffi cient exploration to estimate an additional Mineral Resource and it is uncertain if further exploration will
result in the estimation of an additional Mineral Resource.
2. Newcrest Mining Limited Mineral Resources and Ore Reserves Statement ASX:NCM 14 February 2019
3. Regis Resources Limited Mineral Resources and Ore Reserves Statement ASX:RRL 19 July 2019
4. All mineral resources are illustrated as in-situ contained metals.
KEMPFIELD GOLD DRILLING PROGRAMME – APPROVAL GRANTED
During the year Argent prepared a drilling programme for Kempfi eld, and submitted this to the relevant authorities for approval.
On 21 January 2019 the Company announced that it had received the regulator’s approval to drill.
Out of the 37 new holes approved by NSW Planning & Environment, Resources & Geoscience, Argent is currently planning to
complete an initial programme of 7 holes (1,200 m) in two main areas of the higher-grade western portion of the Kempfi eld deposit.
The holes are prioritised as:
Gold-copper footwall domain
Three diamond holes (approximately 800 metres) have been designed to test the gold-copper footwall domain (6 June 2018 –
Signifi cant Kempfi eld Exploration Target Revision) in the southwest area of the deposit where historical drilling yielded several
high grade gold intersections in an approximately north-south trend including hole AKDD197, which yielded 10.2 m @ 1.5 g/t Au
from 28 m.
Other drilling in the southwest part of the deposit has yielded numerous high-grade gold intersections, including the spectacular
AKDD181 results highlights: 1 m @ 1,065 g/t Au and 143 g/t Ag from 97 m, and 1.8 m @ 1.21% Cu, 2.99 g/t Au and 50 g/t Ag
from 136.8 m.
Potential feeder zone
Four diamond holes have been designed to test the feeder zone area, to the west of the main Kempfi eld Ag-Pb-Zn deposit, to test for
the gold-copper rich feeder zone, including the recently confi rmed Kempfi eld Copper Mine where Government records reported very
high historical assays ranging from 23 to 27% Cu.
Annual Report to Shareholders | 5
OPERATIONS REVIEW
PINE RIDGE – FIRST DRILLING IN 20 YEARS INTERSECTS HIGH GRADE GOLD
High-grade historical drilling results accuracy confi rmed
On 5 June 2019 Argent announced the drilling results for the Pine Ridge drilling programme
– the fi rst drilling to be conducted in 20 years on the Pine Ridge exploration licence area.
The drilling results confi rm the accuracy of high-grade historical intersections suffi cient
for JORC 2012 reporting and resource estimation purposes, to which the 2019 drilling
intersections will be added, including the following for diamond hole APDD031:
19 m @ 3.2 g/t Au from 98.4 m incl. 0.6 m @ 4.4 g/t Au from 98.4 m and 1 m @ 4.0
g/t Au from 101 m and 1 m @ 40.7 g/t Au from 106
Similarities to nearby 2.3 Moz McPhillamys deposit
The diamond drilling results from Pine Ridge confi rm that the gold deposit has strong
similarities to the economic 2.29 Moz McPhillamys gold deposit situated 50 kilometres to the
north, where a 2.02 Moz Ore Reserve has been reported by $2.6 billion market-capitalised
Regis Resources Ltd (ASX:RRL).
Figure 2 - Visible free gold observed
(magnifi ed) at 117.3 metres in hole
APDD031 within an intensely
silica-altered basalt.
The drilling confi rmed the Company’s 16 October 2018 analysis that the gold mineralisation
is hosted by mafi c volcanics, and is distributed over a much wider area. This is in contrast
with the historic view limited to quartz vein-associated gold, and substantially expands the
exploration search area.
Broad intercepts of gold mineralisation were discovered by this drilling programme, and high-grade intersections associated in quartz
vein may relate to a peripheral positioning of the veins where these higher grades correlate with a stronger rock strength and
a weaker fl uid pressure.
Historical high-grade gold intersections reported previously by Argent at Pine Ridge include:
21 m @ 5.6 g/t Au from 50 m (PR010) incl. 1.0 m @ 62.9 g/t Au from 59 m;
10 m @ 4.1 g/t Au from 51 m (PR009) incl. 1.0 m @ 20.6 g/t Au from 52 m;
10 m @ 3.7 g/t Au from 71 m (PR012) incl. 1.0 m @ 11.2 g/t Au from 76 m;
18 m @ 2.4 g/t Au from 68 m (PR023) incl. 1.0 m @ 5.3 g/t Au from 77 m.
Exploration upside
The potential commonalities between Pine Ridge the McPhillamys deposit allows for some key criteria to be applied to mineral
exploration at Pine Ridge. Argent has identifi ed an initial 40 metre depth extension consistent with the known mineralisation, which
appears to plunge toward the north.
The Company also confi rmed that the intersected geology is consistent with the early identifi ed 6-kilometre potential along strike –
one kilometre to the south and 5 kilometres to the north.
New gold strategy milestone
The 2019 Pine Ridge drilling programme results mark an important milestone as Argent works towards enhancing the economics of
its assets.
Having successfully produced separate commercial grade concentrates for the Kempfi eld volcanic-hosted massive sulphide (VHMS)
project, the Company announced that it will pursue satellite gold deposits within the well-endowed Trunkey Creek – Kings Plains gold
belt for processing at a central Kempfi eld location.
Successful implementation of this gold-focussed strategy will allow profi table mining of the lower grade shallow oxide material at
Kempfi eld, and unlock the value of the primary silver, zinc, lead and gold.
The Company also notes the potential for further Pine Ridge exploration to result in a standalone economic deposit, as other nearby
major gold producers also actively search for potential additional feedstock for their infrastructure investments.
PAGE 6 | ARGENT MINERALS LIMITED
OPERATIONS REVIEW
Figure 3 – Pine Ridge drilling April 2019
EXPLORATION – WEST WYALONG (ARGENT 78%)
NEW COMPELLING DRILL TARGETS IDENTIFIED
Strategic location in highly productive gold-hosting geology
Argent’s majority-owned West Wyalong porphyry copper-gold-molybdenum project is strategically located within an actively
producing region in central NSW that includes economic deposits such as Newcrest’s Cadia-Ridgeway porphyry project
(38 Moz in-situ gold resource1) and the Lake Cowal gold mine (7.4 Moz in-situ gold resource2). The mineral zoning of these alkalic
to calc-alkalic porphyries have been extensively documented with a signifi cant amount of predictive geological detail for exploration
at West Wyalong.
1 Newcrest Mining Limited Mineral Resources and Ore Reserves Statement ASX announcement 14 February 2019
2 Evolution Mining Limited Resources and Ore Reserves Statement ASX announcement 17 April 2019
Annual Report to Shareholders | 7
OPERATIONS REVIEW
Figure 4 – Location illustration - West Wyalong project
6 new drill targets
During the year the Company completed a gravity survey at West Wyalong.
Gravity low or high features may be typically associated with have specifi c magnetic responses as a result of mineral association.
The gravity survey allowed previously identifi ed magnetic responses to be further refi ned for enhanced targeting effi ciency.
The survey comprised 2,200 new stations on a 100 metre spaced grid and measured the precision gravity signature over an area of
9.0 km x 2.5 km. The data produced was combined with high resolution airborne magnetic data and induced polarisation (IP) survey
data to produce high resolution 3D inversion models.
On 26 August 2019 Argent announced the results of the gravity survey, which generated six new drill target areas for priority drilling.
Figure 5 – Satellite image showing surveyed and modelled area (left) and existing areas of interest, Theia and Narragudgil, with newly identifi ed areas
of interest Hyperion and Helios (right).
PAGE 8 | ARGENT MINERALS LIMITED
OPERATIONS REVIEW
Figure 6: Total Bouguer (TB) Gravity image (left) and Total Magnetic Intensity (TMI) image (right) with interpreted fault lines (black) and TMI trend lines (red)
CORPORATE
R&D CLAIM REVIEW
On 8 January 2019 Argent announced that it had received advice from AusIndustry concerning its negative fi ndings in its review of
the research and development claims made by the Company for the 2015/16 and 2016/17 fi nancial years (R&D Claims), for which
the Company may ultimately be required to repay up to $1,402,997 plus penalties and interest.
The law provides the Company with full rights to a multi-stage review and dispute resolution process, including the right to seek an
independent internal review by another state branch of AusIndustry (Independent Review), together with rights of appeal to both the
Administrative Appeals Tribunal and thereafter the Federal Court.
On 15 May 2019 Argent announced that AusIndustry is currently conducting an Independent Review of its earlier fi ndings in relation
to Argent’s R&D Claims (R&D Claim Review).
Amended Australian Taxation Offi ce assessment
At the request of the ATO, and to avail a reduction in the administrative penalties and interest charges that would normally apply,
Argent self-amended its income tax returns for FY2015/16 and FY2016/17.
The amended assessment was that the Company owed $709,249 for FY16 payable on or before 7 June 2019, and $693,748 for
FY17 payable on or before 28 May 2019 (Effective Dates). The total of $1,402,997 is less than the provision made in the Company’s
Interim Financial Report released to the ASX on 7 March 2019 and is in line with previous Argent market guidance in relation to
this matter.
Interim Review Arrangement agreed with the Australian Taxation Offi ce
On 14 May 2019 the Australian Taxation Offi ce (ATO) agreed to a proposal submitted by Argent whereby the Company, as a sign of
good faith, makes nominal $5,000 monthly payments for an interim period until AusIndustry has completed its review process and
issued its Determination (Review Arrangement).
The monthly Review Arrangement payments will be made toward the Company’s potential tax liability, commencing on 22 May 2019
and continuing until 22 October 2019. A single interest-only balloon payment is also required by the ATO on 22 November 2019 as a
General Interest Charge for interest incurred from the Effective Dates, estimated to be approximately $60,000. The ATO has explained
that this was necessary in order for the Review Arrangement to be approved, but if this is a problem for the Company at that time,
then after the last monthly payment on 22 October 2019 the Company should make contact with the ATO with a view to negotiating a
revised arrangement.
In the event that AusIndustry reverses/modifi es its fi ndings as a result of its R&D Claim Review, the income tax returns for FY2016
and FY2017 will be amended accordingly under the Income Tax Assessment Act.
Annual Report to Shareholders | 9
OPERATIONS REVIEW
The Company remains of the view that the R&D claims were made in compliance with the applicable legislation and intends to pursue
its rights under the law commencing with the Independent Review as provided for under Division 5 of the IR&D Act.
Federal Court fi nding in favour of Moreton Resources
The Company notes the key announcement made by Moreton Resources Limited on 29 July 2019 in relation to its R&D claim dispute
with AusIndustry (Moreton Resources vs. Innovation and Science Australia) (Announcement).
The Announcement reported that, “the Federal Court has considered the appeal of Moreton Resources Limited, and found in favour
of the appeal by Moreton Resources Limited, and as such have determined the prior decision of the Tribunal, is to be set aside
and the matter remitted to the Tribunal for determination according to the law”.
The Announcement concluded with comments by the Moreton Resources management, including that “The matter is by no means
resolved as yet, the fi ndings and observations have left the board feeling vindicated in the pursuit of this matter and certainly looking
forward to resolving the matter, be it an AAT hearing or through prior negotiation with AusIndustry.”
CEO DEPARTURE
On 19 June 2019 the Company announced that as part of its focus to cut costs and improve effi ciency, the board had reviewed the
Company structure and after full consideration, had elected to give six months’ termination notice to the Company CEO David Busch
in compliance with his employment contract. Mr. Busch will be leaving the Company after more than two years in this role and fi ve
years as a board member.
On behalf of the board Chairman Peter Wall thanks David for his signifi cant contribution in leading the development of the Company
including progressing the Company’s Kempfi eld and West Wyalong projects.
FUNDING
A total of $1,269,212 million before costs was raised during the year through an entitlement issue and a private placement.
Argent concluded the 2018/1¬¬97/18 fi nancial year with a cash position of approximately $725,933.
Subsequent to the year, the Company announced on 29 August 2019 that it had raised a further $1,901,350 before costs through a
two tranche private placement. The fi rst tranche provides the Company with $1,238,089 for immediate use, while the second tranche
is subject to shareholder approval.
As at the date of this report the fi rst tranche shares have been issued and the general meeting for approval of the second tranche has
not yet been determined.
COMPETENT PERSON STATEMENTS
Previously Released Information
This Annual Report contains information extracted from the following reports which are available for viewing on the Company’s
website https://argentminerals.com.au:
27 July 2017 Copper and Gold in West Wyalong Porphyry Final Assaysi
12 April 2018 Separate Commercial Grade Concentrates – Kempfi eld Milestoneii
30 May 2018 Signifi cant Kempfi eld Resource Updateiii
6 June 2018 Signifi cant Kempfi eld Exploration Target Revisioniv
16 October 2018 Major Event for Pine Ridge Gold Mine Acquisitioni
28 November 2018 AGM Presentation to Investors
8 January 2019 Argent to Seek Independent Review of AusIndustry Findings
21 January 2019 Argent Gold Strategy Exploration Update
15 May 2019 R&D Claim Review and Gold Exploration Results Update
5 June 2019 Maiden Pine Ridge Results – Signifi cant Intercept Recordedi
26 August 2019 Compelling West Wyalong Targets Identifi edi
Competent Person:
i. Clifton Todd McGilvray
ii. Roland Nice
iii. Arnold van der Heyden
iv. Arnold van der Heyden (Exploration Target), Clifton Todd McGilvray (Exploration Results)
The Company confi rms it is not aware of any new information or data that materially affects the information included in the original
market announcements and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcements continue to apply and have not materially changed.
PAGE 10 | ARGENT MINERALS LIMITED
CORPORATE GOVERNANCE STATEMENT
The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having a
set of core values and behaviours that underpin the Company’s activities and ensure transparency, fair dealing and protection of
the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate Governance
Principles and Recommendations (3rd edition) published by the ASX Corporate Governance Council.
The 2019 corporate governance statement is dated as at 4 September 2019 and refl ects the corporate governance practices
throughout the 2019 fi nancial year. The 2019 corporate governance was approved by the Board on 4 September 2019. A description
of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement which can
be viewed at https://argentminerals.com.au/about/corporate-governance.
Annual Report to Shareholders | 11
DIRECTORS’ REPORT
The names and particulars of the directors of the Company during the fi nancial year and as at the date of this report are as follows.
Directors were in offi ce for the entire period unless otherwise stated.
PETER WALL LLB BComm MAppFin FFin
Non-Executive Chairman
Appointed 23 April 2018.
Mr Wall is a corporate lawyer and has been a Partner at Steinepreis Paganin (Perth based corporate law fi rm) since July 2005.
Mr Wall graduated from the University of Western Australia in 1998 with a Bachelor of Laws and Bachelor of Commerce (Finance).
He has also completed a Masters of Applied Finance and Investment with FINSIA.
Mr Wall has a wide range of experience in all forms of commercial and corporate law, with a particular focus on resources (hard
rock and oil/gas), technology companies, equity capital markets and mergers and acquisitions. He also has signifi cant experience
in dealing in cross border transactions.
During the past three years he has also served on the board of the following listed companies:
Company
Date of Appointment
Date of Resignation
Minbos Resources Limited
February 2014
MMJ PhytoTech Limited
MyFizig Ltd
August 2014
May 2015
Transcendence Technologies Limited
October 2015
Pursuit Minerals Limited
Sky & Space Global Ltd
Bronson Group Limited
Activistic Ltd
Zyber Holdings Limited
Ookami Limited
January 2016
October 2015
June 2017
June 2015
January 2015
October 2015
EMMANUEL CORREIA BBus, CA
Non-Executive Director and Joint Company Secretary
Appointed 6 December 2017.
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
4 December 2018
5 August 2019
February 2018
January 2018
January 2018
Mr Emmanuel Correia has over 25 years’ public company and corporate fi nance experience in Australia, North America and the
United Kingdom and is a founding director of Peloton Capital and Peloton Advisory.
Mr Correia is an experienced public company director/offi cer and, prior to establishing Peloton Capital in 2011, he was a founder
and major shareholder of Cardrona Capital which specialised in providing advisory services to the small/mid cap market in Australia.
Cardrona was acquired by a UK backed private advisory fi rm seeking advisory capabilities in Australia.
Mr Correia has also held various senior positions with Deloitte and other boutique corporate fi nance houses. Mr Correia’s key
areas of expertise include IPOs, secondary capital raisings, corporate strategy, structuring, mergers and acquisitions and
corporate governance.
Mr Correia is currently a non-executive director of Canyon Resources Limited. Mr Correia is also the Company Secretary of
Bluglass Limited.
During the past three years he served on the board of the following listed companies:
Company
Date of Appointment
Date of Resignation
Canyon Resources Limited
Orminex Limited
July 2016
April 2018
Not Applicable
August 2019
PAGE 12 | ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
PETER MICHAEL
Non-Executive Director
Appointed 16 September 2015.
Peter has over 20 years’ experience in the property sector encompassing the arrangement and execution of commercial and
residential property transactions, land development, construction and joint venture operations utilising an extensive network of
contacts throughout Australia.
Peter is currently the Managing Director of a private aged care business, a private property development business and
privately-owned Real Estate Agency. Peter is also the Managing Director of a private investment fi rm, based in Subiaco,
specialising in developing resource exploration companies. He is also a director of a not for profi t group that specialises in
delivering exercise programs for people with diabetes in WA and Vanuatu.
TIM HRONSKY B.Eng (Geology) MAusIMM, MSEG
Non-Executive Director
Appointed 6 December 2017.
Mr Tim Hronsky is a geologist with 30 years of international experience in the mining and exploration industry. Tim has had a strong
focus on precious metals, base metals and nickel exploration. He is highly experienced in exploration targeting and management.
Previously, Tim spent 18 years with Placer Dome Inc, one of the largest gold companies in the world at that time.
Tim has extensive global consulting experience within the mining industry, providing clients with value-adding solutions. He worked in
the fi elds of business improvement, strategic management and sustainable development demonstrating a track record in establishing
new businesses and creating value in the early phases of exploration in Junior mining company development.
Tim has strong conceptual and analytical skills and has been able to integrate geological exploration and operational information to
create unique technical and commercial solutions.
During the past three years he served on the board of the following listed company:
Company
Date of Appointment
Date of Resignation
St George Mining Limited
November 2009
2 January 2019
VINOD MANIKANDAN
Joint Company Secretary
Appointed 4 November 2015.
Vinod Manikandan graduated with a Bachelor of Commerce degree from Mahatma Gandhi University and also attained a Graduate
Certifi cate of Professional Accounting from Deakin University. He has completed his post graduate studies in Applied Corporate
Governance and is a member of CPA Australia. For the past three years, Vinod has provided fi nancial reporting, accounting and
company secretarial services to a range of public listed companies in Australia.
DIRECTORS INTERESTS
At the date of this report, the Directors held the following interests in Argent Minerals.
Name
Peter Wall
Fully Paid Ordinary Shares
Options
Option Terms (Exercise Price and Term)
1,333,333
666,666
$0.05 at any time up to 29 October 2021
Emmanuel Correia
666,667
333,333
$0.05 at any time up to 29 October 2021
Peter Michael
1,420,001
333,333
$0.05 at any time up to 29 October 2021
Tim Hronsky
380,000
100,000
$0.05 at any time up to 29 October 2021
There were no options over unissued ordinary shares granted as compensation to directors or executives of the Company during or
since the end of the fi nancial year.
Annual Report to Shareholders | 13
DIRECTORS’ REPORT
UNISSUED SHARES UNDER OPTION
At the date of this report, unissued ordinary shares of the Company under option are:
Number of Shares
Exercise Price
Expiry Date
6,000,000
5,000,000
6,500,000
54,666,885
$0.03
$0.06
$0.10
$0.05
30 September 2021
30 September 2021
30 September 2021
29 October 2021
All options expire on the earlier of their expiry date or termination of the employee’s employment provided the exercise period has
been reached. In the event that the employment of the option holder is terminated, any options which have not reached their exercise
period will lapse and any options which have reached their exercise period may be exercised within three months of the date of
termination of employment. Any options not exercised within this three month period will lapse. The persons entitled to exercise the
options do not have, by virtue of the options, the right to participate in a share issue of the Company or any other body corporate.
PRINCIPAL ACTIVITIES
The principal activity of the Group is mineral exploration in Australia.
RESULTS AND REVIEW OF OPERATIONS
The results of the consolidated entity for the fi nancial year ended 30 June 2019 is a comprehensive loss after income tax of
$3,539,654 (2018: loss of $1,712,330).
A review of operations of the consolidated entity during the year ended 30 June 2019 is provided in the ‘Operations Review’.
LIKELY DEVELOPMENTS
The Group’s focus over the next fi nancial year will be on its key projects, Kempfi eld, West Wyalong and Pine Ridge. Further
commentary on planned activities in these projects over the forthcoming year is provided in the ‘Operations Review’. The Company
will also assess new opportunities, especially where these have synergies with existing projects.
ENVIRONMENTAL ISSUES
The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all
regulations when carrying out exploration work.
DIVIDENDS PAID OR RECOMMENDED
The directors do not recommend the payment of a dividend and no amount has been paid or declared by way of a dividend to the
date of this report.
BOARD MEETINGS
During the fi nancial year, 5 meetings of directors were held. Attendances by each director during the year were as follows:
Director Meetings
Director
Peter Wall
Emmanuel Correia
Peter Michael
Tim Hronsky
No. of Eligible Meetings to Attend
No. of Meetings Attended
5
5
5
5
5
4
5
5
PAGE 14 | ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
REMUNERATION REPORT - AUDITED
Remuneration Policy
The remuneration policy of Argent Minerals Limited has been designed to align directors’ objectives with shareholder and business
objectives by providing a fi xed remuneration component, which is assessed on an annual basis in line with market rates and equity
related payments. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the
best directors to run and manage the Group.
The Board’s policy for determining the nature and amount of remuneration for Board members is as follows:
The remuneration policy and setting the terms and conditions for the executive directors and other senior staff members is
developed and approved by the Board based on local and international trends among comparative companies and industry
generally. It examines terms and conditions for employee incentive schemes, benefi t plans and share plans. Independent advice
is obtained when considered necessary to confi rm that executive remuneration is in line with market practice and is reasonable
within Australian executive reward practices.
Executives receive a base salary (which is based on factors such as length of service and experience) and superannuation.
The entity is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and retaining
talented executives, directors and senior executives are paid market rates associated with individuals in similar positions within
the same industry. Options and performance incentives may be issued particularly as the entity moves from an exploration
to a producing entity, and key performance indicators such as profi t and production and reserves growth can be used as
measurements for assessing executive performance.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and
responsibilities. The Executive Directors, in consultation with independent advisors, determine payments to the non-executives and
review their remuneration annually, based on market practice, duties and accountability. The maximum aggregate amount of fees
that can be paid to non-executive directors is subject to approval by shareholders at the Annual General Meeting and is currently
$250,000 per annum. Fees for non-executive directors are not linked to the performance of the Company. However, to align
directors’ interests with shareholder interests, the directors are encouraged to hold shares in the Company.
DETAILS OF DIRECTORS AND EXECUTIVES
The following table provides details of the members of key management personnel of the entity as at 30 June 2019.
Directors/Executives
Position Held as at 30 June 2019
Peter Wall
David Busch
Non-Executive Chairman
CEO
Emmanuel Correia
Non-Executive Director/ Joint Company Secretary
Peter Michael
Tim Hronsky
Non-Executive Director
Non-Executive Director
Executive Offi cer’s remuneration and other terms of employment are reviewed annually by the Non-Executive Directors having regard
to performance against goals set at the start of the year, relative to comparable information and independent expert advice.
Except as detailed in the Remuneration Report, no director has received or become entitled to receive, during the fi nancial year or
since the fi nancial year end, a benefi t because of a contract made by the Company or a related body corporate with a director, a
fi rm of which a director is a member or an entity in which a director has a substantial fi nancial interest. This statement excludes a
benefi t included in the aggregate amount of emoluments received or due and receivable by directors and shown in the Remuneration
Report, prepared in accordance with the Corporations Regulations, or the fi xed salary of a full time employee of the Company.
Annual Report to Shareholders | 15
DIRECTORS’ REPORT
Details of remuneration for the year ended 30 June 2019 – Audited
Details of director and senior executive remuneration and the nature and amount of each major element of the remuneration of each
director of the Company, and other key management personnel of the Company are set out below
Salary, Fees
and Leave
Superannuation
Share Based
Payments –
Options
Other
Long Term
Total
% of
Remuneration as
Share Payments
Directors
Non-executive
Peter Wall
2019
2018
Emmanuel Correia
2019
2018
Peter Michael
2019
2018
Tim Hronsky
2019
2018
Klaus Eckhof
2019
2018
Stephen Gemell
2019
2018
Peter Nightingale
2019
2018
CEO
David Busch
2019
2018
43,800
8,260
43,800
24,865
40,000
39,999
43,800
24,961
-
16,320
-
28,258
-
21,900
-
-
-
-
3,800
3,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
43,800
8,260
43,800
24,865
43,800
43,799
43,800
24,961
-
16,320
-
28,258
-
21,900
-
-
-
-
-
-
-
-
-
-
-
-
-
-
263,596
266,883
25,655
25,650
11,753
39,095
16,843
5,494
317,847
3.69
337,122
11.60
PAGE 16 | ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Options Granted as Compensation – Audited
Details of options granted as compensation to each key management person:
Director
Grant Date
Number
of Options
Granted
Vesting Date
Fair Value
at Grant
Date
Option Terms
(Exercise Price and Term)
David Busch^
2 November 2016
2,000,000
2 November 2016
$41,982
$0.03 at any time to 30 September 2021.
David Busch^
2 November 2016
2,000,000
31 December 2017
$37,417
David Busch^
2 November 2016
3,000,000
31 December 2018
$50,397
$0.06 at any time from 31 December 2017
up to 30 September 2021.
$0.10 at any time from 31 December 2018
up to 30 September 2021.
The fair value of the options at grant date was determined based on Black- Scholes formula. The model inputs of the options issued,
were the Company’s share price of $0.027 at the grant date, a volatility factor of 110% based on historic share price performance, a
risk free rate of 1.87% based on the 5 year government bond rate and no dividends paid.
No Options were granted as compensation during 2019 and 2018 fi nancial year. The number of options that vested during the year
ended 30 June 2019 is 3,000,000 (2018 – 2,000,000).
Other transactions and balances with Key Management Personnel
During the year ended 30 June 2019, Peter Wall had a benefi cial interest in an entity, Steinepreis Paganin Lawyers & Consultants,
which provided legal consulting services on ordinary commercial terms. Fees paid to Steinepreis Paganin Lawyers & Consultants
amounted to $34,008 (2018 - $1,523). A balance of $3,000 remained outstanding at 30 June 2019 in relation to these services
(2018 - $1,523).
EMPLOYMENT CONTRACTS OF DIRECTORS AND EXECUTIVES
In accordance with best practice corporate governance, the Company provided each Director with a letter detailing the terms of
appointment, including their remuneration.
The Company has entered into an employment agreement with Mr David Busch whereby Mr Busch receives remuneration of
$270,000 per annum plus statutory superannuation. The agreement may be terminated subject to a 6 month notice period.
Ordinary shareholdings of key management personnel
Directors and other key
management personnel
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Balance at 1 July 2018
Net other change
Balance at 30 June 2019
(i)
-
5,866,751
-
753,334
180,000
(ii)
1,333,333
3,752,632
666,667
666,667
200,000
(iii)
1,333,333
9,619,383
666,667
1,420,001
380,000
Annual Report to Shareholders | 17
DIRECTORS’ REPORT
Directors and other key
management personnel
Balance at
1 July 2017
Net other change
Balance at
30 June 2018
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof
Stephen Gemell
Peter Nightingale
(i)
-
5,281,818
-
753,334
180,000
-
1,581,818
833,333
(ii)
-
584,933
-
-
-
-
-
-
(iii)
-
5,866,751
-
753,334
180,000
-
1,581,818
833,333
(i) Balance at the beginning of the fi nancial year or at the date of appointment.
(ii) On market transactions for cash consideration.
(iii) Balance at the end of the fi nancial year or at the date of retirement.
(iv) No remuneration shares were issued or options exercised during the fi nancial years ended 30 June 2019 and 30 June 2018.
Option holdings of key management personnel
Directors and other key
management personnel
Balance at
1 July 2018
Issued during
the period
Expired during
the period
Balance at
30 June 2019
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
(i)
-
4,784,933
-
666,668
-
666,666
2,402,632
333,333
333,333
100,000
-
4,784,933
-
666,668
-
(ii)
666,666
2,402,632
333,333
333,333
100,000
Option holdings of key management personnel
Directors and other key
management personnel
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Klaus Eckhof
Stephen Gemell
Peter Nightingale
Balance at
1 July 2017
(i)
-
4,200,000
-
666,668
-
-
800,000
1,666,666
Issued during
the period
Balance at
30 June 2018
-
584,933
-
-
-
-
-
-
(ii)
-
4,784,933
-
666,668
-
-
800,000
1,666,666
(i) Balance at the beginning of the fi nancial year or at date of appointment.
(ii) Balance at the end of the fi nancial year or at date of retirement.
PAGE 18 | ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefi ts for shareholders’ wealth, the Board has regard to the following indices in
respect of the current fi nancial year and the previous four fi nancial years.
Net loss attributable to equity holders
of the Company
2019
2018
2017
2016
2015
$3,539,654
$1,712,330
$2,120,074
$2,115,199
$1,528,384
Dividends paid
-
-
-
-
-
Change in share price
(0.9) cents
(1.1) cents
0.2 cents
0.6 cents
(0.5) cents
The overall level of key management personnel’s compensation is assessed on the basis of market conditions, status of the
Company’s projects, and fi nancial performance of the Company.
End of Remuneration Report
Annual Report to Shareholders | 19
DIRECTORS’ REPORT
INDEMNIFICATION OF DIRECTORS AND OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every offi cer or agent of the
Company shall be indemnifi ed out of the property of the entity against any liability incurred by him or her in their capacity as offi cer
or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in
defending any proceedings, whether civil or criminal.
EVENTS SUBSEQUENT TO BALANCE DATE
On 29, August 2019, the Company announced a private placement to sophisticated investors, raising up to $1.9 million. The
maximum number of new securities that will be issued under the offer is 90,540,475 new fully paid ordinary shares at an issue price
of 2.1 cents per share (Placement Shares), 22,635,119 attaching listed ASX:ARDOA (ARDOA Placement Options) on a 1:4 basis and
90,540,475 new attaching listed options on a 1:1 basis (ARDOB Placement Options).
Each ARDOA Placement Options will be exercisable at 5.0 cents on or before 29 October 2021 and each ARDOB Placement Option
will be exercisable at 2.5 cents up to one year from the date that the ARDOB options are listed on the ASX.
The private placement will be issued in two Tranches:
Tranche 1 – up to 58,956,627 Placement Shares under the Company’s existing capacity under ASX Listing Rule 7.1 and 7.1A; and
Tranche 2 – subject to shareholder approval, up to 31,583,848 Placement Shares, 22,635,119 ARDOA Placement Options and
subject to ASX approval, 90,540,475 ARDOB Placement Options.
On 9 September 2019, the Company issued Tranche 1 Placement Shares to raise $1,238,089 before costs. As at the date of this
report, Tranche 2 placement offer has not been issued as they are subject to shareholder approval at the general meeting, for which
the date and venue is yet to be determined.
Except for the above, no other matters or circumstances have arisen since the end of the fi nancial year which signifi cantly affected
or could signifi cantly affect the operations of the consolidated entity, the results of those operations, or the state of the affairs of the
consolidated entity in future fi nancial years.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which the
Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
During the year ended KPMG, the Company’s auditor, performed no other services in addition to their statutory duties.
A copy of the auditors’ independence declaration as required under Section 307C of the Corporations Act 2001 is included in the
Directors’ Report.
Details of the amounts paid and accrued to the auditor of the Company, KPMG, and its related practices for audit and non-audit
services provided during the year are set out below.
Statutory audit
Audit and review of fi nancial reports - KPMG
Lead Auditor’s Independence Declaration
2019
$
55,250
2018
$
45,500
The Lead Auditor’s Independence Declaration is set out on page 21 and forms part of the Directors’ Report for the year ended
30 June 2019.
This report has been signed in accordance with a resolution of the directors and is dated 11 September 2019.
Peter Wall
Chairman
Peter Michael
Director
PAGE 20 | ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
LEAD AUDITOR’S INDEPENDENCE DECLARATION
Under Section 307C of the Corporations Act 2001
To the Directors of Argent Minerals Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Argent Minerals Limited for the financial
year ended 30 June 2019 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001
in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Adam Twemlow
Partner
Brisbane
11 September 2019
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
Annual Report to Shareholders | 21
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Notes
2019
$
2018
$
Continuing operations
Research & Development Claim – (expense)/income
5
(1,402,997)
NSW co-operative drilling grant
Administration and consultants' expenses
Depreciation
Employee and director expenses
Exploration and evaluation expenses
Operating loss before fi nancing income
Interest income
Net fi nancing income
Loss before tax
Income tax expense
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Basic and diluted loss per share (cents)
12
6
9
7
-
(638,353)
(45,481)
(284,430)
(1,183,603)
(3,554,864)
15,210
15,210
693,749
141,966
(695,694)
(47,326)
(291,756)
(1,537,773)
(1,736,834)
24,504
24,504
(3,539,654)
(1,712,330)
-
-
(3,539,654)
(1,712,330)
-
-
(3,539,654)
(1,712,330)
(0.72) cents
(0.39) cents
The above Consolidated Statement of Profi t or Loss and Other Comprehensive Income should be read in conjunction with
the accompanying notes.
PAGE 22 | ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
AS AT 30 JUNE 2019
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Other fi nancial asset – security deposits
Plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee entitlements
R&D claims repayable
Total current liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Notes
8
10
11
12
13
14
18
15
15
2019
$
725,933
19,562
22,904
768,399
93,100
362,707
455,807
2018
$
1,649,466
-
23,265
1,672,731
83,100
398,371
481,471
1,224,206
2,154,202
101,542
104,746
1,395,276
1,601,564
(377,358)
125,787
91,326
-
217,113
1,937,089
30,462,609
29,274,380
211,515
193,529
(31,051,482)
(27,530,820)
(377,358)
1,937,089
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.
Annual Report to Shareholders | 23
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Attributable to equity holders of the Company
Notes
Issued
Capital
$
Option
Reserves
Accumulated
Losses
$
$
Total
$
Balance at 1 July 2018
29,274,380
193,529
(27,530,820)
1,937,089
Total comprehensive income for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners, recorded directly in equity
Contribution by and distribution to owners
Ordinary shares/options issued
Cost of shares issued
Share based payments – options
Exercise of options
Expiry of options
-
-
-
1,268,939
(80,983)
-
273
-
-
-
-
-
-
36,978
-
(3,539,654)
(3,539,654)
-
-
(3,539,654)
(3,539,654)
-
-
-
-
1,268,939
(80,983)
36,978
273
-
(18,992)
18,992
Balance at 30 June 2019
15
30,462,609
211,515
(31,051,482)
(377,358)
Balance at 1 July 2017
28,090,527
143,636
(25,830,094)
2,404,069
Total comprehensive income for the year
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
Transactions with owners, recorded directly in equity
Contribution by and distribution to owners
Ordinary shares/options issued
Cost of shares issued
Share based payments – Options
Expiry of options
-
-
-
1,268,000
(84,147)
-
-
-
-
-
-
-
61,497
(11,604)
(1,712,330)
(1,712,330)
-
-
(1,712,330)
(1,712,330)
-
-
-
11,604
1,268,000
(84,147)
61,497
-
Balance at 30 June 2018
15
29,274,380
193,529
(27,530,820)
1,937,089
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
PAGE 24 | ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF
CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash fl ows used in operating activities
Cash receipts in the course of operations
Government Subsidy
Exploration and evaluation expenditure
Cash payments in the course of operations
Interest received
Net cash used in operating activities
Cash fl ows used in investing activities
Payments for plant and equipment
(Payments)/receipts for security deposits
Net cash used in investing activities
Cash fl ows from fi nancing activities
Proceeds from issue of shares and options
Cost of issue of shares and options
Net cash from fi nancing activities
Net increase in cash held
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
Notes
16
12
15
15
8
2019
$
-
-
2018
$
693,749
141,966
(1,165,086)
(1,531,308)
(941,578)
15,210
(811,332)
24,504
(2,091,454)
(1,482,421)
(10,308)
(10,000)
(20,308)
1,269,212
(80,983)
1,188,229
(923,533)
1,649,466
725,933
(24,871)
11,900
(12,971)
1,200,000
(84,147)
1,115,853
(379,539)
2,029,005
1,649,466
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
Annual Report to Shareholders | 25
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Argent Minerals Limited (the ‘Company’) is a company domiciled in Australia. The address of the Company’s registered offi ce is at
Level 2, 66 Hunter Street, Sydney, NSW 2000. The consolidated fi nancial statements of the Company as at and for the year ended
30 June 2019 comprise the Company and its subsidiary (together referred to as the ‘Group’). The Group is a for-profi t entity and is
primarily engaged in the acquisition, exploration and development of mineral deposits in Australia.
2. BASIS OF PREPARATION
(a) Statement of compliance
The consolidated fi nancial statements are general purpose fi nancial statements which have been prepared in accordance with
Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Corporations
Act 2001. The consolidated fi nancial statements comply with the International Financial Reporting Standards (‘IFRSs’) adopted by the
International Accounting Standards Board (‘IASB’).
The consolidated fi nancial statements were authorised for issue by the directors on 11 September 2019.
(b) Basis of measurement
The consolidated fi nancial statements have been prepared on the historical cost basis.
(c) Functional and presentation currency
These consolidated fi nancial statements are presented in Australian dollars, which is the Group’s functional currency.
(d) Use of estimates and judgements
The preparation of the consolidated fi nancial statements requires management to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.
In particular, information about signifi cant areas of estimation uncertainty and critical judgements in applying accounting policies that
have the most signifi cant effect on the amounts recognised in the fi nancial statements are described in the following notes:
Note 2(e) - Going concern
Note 9
Note 15 - Capital and reserves
Note 19 - Share based payments
- Unrecognised deferred tax asset
(e) Going concern
The fi nancial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement
of liabilities in the ordinary course of business.
The Group recorded a loss attributable to equity holders of the Company of $3,539,654 for the year ended 30 June 2019 and has
accumulated losses of $31,051,482 at 30 June 2019. The Group has cash and cash equivalents of $725,933 at 30 June 2019 and
used $2,091,454 of cash in operations, including payments for exploration and evaluation, for the year ended 30 June 2019.
On 9 September 2019, the Company issued 58,956,627 ordinary shares for cash totalling $1,289,089 (before costs) under
Tranche 1 of the private placement offer to sophisticated investors.
During the year, the Company was issued with a negative fi nding by AusIndustry in relation to its research and development claims
for the 2016 (FY16) and 2017 (FY17) fi nancial years (R&D Claims). The Company pursued its rights to a multi-stage review and
dispute resolution process and pursued the right to seek an independent internal review by another state branch of AusIndustry
(currently underway).
At 30 June 2019 the Company has recorded a liability of $1,395,276 in relation to R&D Claims repayable including general interest
charges (refer to note 18). The Company has entered into a payment arrangement with the ATO whereby, the Company makes
monthly payments of $5,000 for an interim period until AusIndustry has completed its review process and issued its Determination
(Review Arrangement). The repayment arrangement commenced on 22 May 2019 and will continue until 22 October 2019. In the
event that the AusIndustry review is unsuccessful the Company intends to negotiate a repayment plan with the ATO over an extended
period of time.
These conditions give rise to a material uncertainty that may cast signifi cant doubt upon the Group’s ability to continue as a going
concern. The ongoing operation of the Group is dependent upon the Group achieving a positive outcome from the AusIndustry
review or negotiating a repayment plan with the ATO to settle the outstanding R&D liability over an extended period of time, the
Group raising additional funding from shareholders or other parties and the Group reducing expenditure in-line with available funding.
PAGE 26 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
The directors have prepared cash fl ow projections that support the ability of the Group to continue as a going concern. These cash
fl ow projections assume the Group achieves a positive outcome from the AusIndustry review or negotiates an extended repayment
plan with the ATO and obtains suffi cient additional funding from shareholders or other parties. If such funding is not achieved, the
Group plans to reduce expenditure to the level of funding available.
In the event that the Group does not obtain additional funding, reduce expenditure in line with available funding and successfully
resolve the AusIndustry review of the R&D claims, it may not be able to continue its operations as a going concern and therefore
may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the
fi nancial statements.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these consolidated fi nancial
statements, and have been applied consistently by all entities in the Group with the exception of the new accounting policies for
new standards.
(a) Revenue
Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the entities and the revenue can be
reliably measured.
(b) Finance income and fi nance costs
Finance income comprises interest income on funds invested (including available-for-sale fi nancial assets), dividend income and gains
on the disposal of available-for-sale fi nancial assets. Interest income is recognised as it accrues in profi t or loss, using the effective
interest method. Dividend income is recognised in profi t or loss on the date that the Group’s right to receive payment is established,
which in the case of quoted securities is the ex-dividend date.
Finance costs comprise interest expense on borrowings, losses on disposal of available-for-sale fi nancial assets and impairment
losses recognised on fi nancial assets. Borrowing costs that are not directly attributable to the acquisition, construction or production
of a qualifying asset are recognised in profi t or loss using the effective interest method.
(c) Exploration, evaluation and development expenditure
Expenditure on exploration and evaluation is accounted for in accordance with the ‘area of interest’ method and with AASB 6
Exploration for and Evaluation of Mineral Resources.
For each area of interest, exploration and evaluation expenditure is expensed in the period in which the expenditure is incurred.
Expenditure incurred in the acquisition of tenements and rights to explore may be capitalised and recognised as an exploration
and evaluation asset. Exploration and evaluation assets are initially measured at cost at recognition. Exploration and evaluation
expenditure incurred by the Group subsequent to acquisition of the rights to explore is expensed as incurred.
Capitalised acquisition costs are assessed for impairment when facts and circumstances suggest that the carrying amount of an
exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation
asset to which it has been allocated, being no larger than the relevant area of interest is estimated to determine the extent of the
impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset in previous years.
Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and
evaluation asset is tested for impairment and the balance is then reclassifi ed to development costs.
(d) Property, plant and equipment
Items of property, plant and equipment are measured on the cost basis less depreciation and impairment losses.
Depreciation
The depreciable amount of all fi xed assets is depreciated over the assets’ estimated useful lives to the Group commencing from the
time the asset is ready for use.
The depreciation rates and useful lives used for each class of depreciable assets are:
Class of fi xed asset
Depreciation rates
Depreciation basis
Buildings
Plant and equipment
7.50%
5% to 37.5%
Prime cost
Prime cost
Annual Report to Shareholders | 27
NOTES TO THE FINANCIAL STATEMENTS
(e) Government grants
Where a rebate is received relating to research and development costs or other costs that have been expensed, the rebate is
recognised as other income when the rebate becomes receivable and the Group complies with all attached conditions. If the
research and development costs have been capitalised, the rebate is deducted from the carrying value of the underlying asset
when the grant becomes receivable and the Group complies with all attached conditions.
(f) Financial instruments
Non-derivative fi nancial assets
Recognition and initial measurement
The Company initially recognises trade receivables on the date that they are originated. All other fi nancial assets are recognised
initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.
The Company derecognises a fi nancial asset when the contractual rights to the cash fl ows from the asset expire, or it transfers the
rights to receive the contractual cash fl ows on the fi nancial asset in a transaction in which substantially all the risks and rewards of
ownership of the fi nancial asset are transferred. Any interest in such transferred fi nancial assets that is created or retained by the
Company is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of fi nancial position when, and only when, the
Company has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the
liability simultaneously.
Classifi cation and subsequent measurement – Policy applicable from 1 July 2018
On initial recognition, a fi nancial asset is classifi ed as measured at:
- Amortised cost;
- Fair value through other comprehensive income (FVOCI) – equity investment; or
- Fair value through profi t or loss (FVTPL).
Financial assets are not reclassifi ed subsequent to their initial recognition unless the Company changes its business model for
managing fi nancial assets, in which case all affected fi nancial assets are reclassifi ed on the fi rst day of the fi rst reporting period
following the change in the business model.
A fi nancial asset is measured at amortised cost if it meets both the following conditions and is not designated as fair value through
profi t or loss:
-
-
It is held within a business model whose objective is to hold assets to collect contractual cash fl ows; and
Its contractual terms give rise on specifi ed dates to cash fl ows that are solely payments of principal and interest on the principal
amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent
changes in the investment’s fair value through OCI. This election is made on an investment-by-investment basis.
All fi nancial assets not classifi ed as measured at amortised cost or fair value through other comprehensive income as described
above are measured at fair value through profi t or loss. This includes all derivative fi nancial assets. On initial recognition, the
Company may irrevocably designate a fi nancial asset that otherwise meets the requirements to be measured at amortised cost or at
fair value through other comprehensive income as at fair value through profi t or loss if doing so eliminates or signifi cantly reduces an
accounting mismatch that would otherwise arise.
Subsequent measurement and gains and losses – Policy applicable from 1 July 2018
Financial assets at amortised cost
Equity instruments at FVOCI
These assets are subsequently measured at amortised cost using the effective interest
method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profi t or loss. Any gain or
loss on derecognition is recognised in profi t or loss.
These assets are subsequently measured at fair value. Dividends are recognised
as income in profi t or loss unless the dividend clearly represents a recovery of part
of the cost of the investment. Other net gains and losses are recognised in other
comprehensive income and are never reclassifi ed to profi t or loss.
Financial assets at FVPTL
These assets are subsequently measured at fair value. Net gains and losses, including
any interest or dividend income, are recognised in profi t or loss.
PAGE 28 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Prior to 1 July 2018, the Company classifi ed its fi nancial assets into one of the following:
Financial assets at fair value through profi t or loss
Financial assets at fair value through profi t or loss are fi nancial assets held for trading. A fi nancial asset is classifi ed in this category
if acquired principally for the purpose of selling in the short term. Derivatives are classifi ed as held for trading unless they are
designated as hedges. Assets in this category are classifi ed as current assets if they are expected to be settled within 12 months;
otherwise, they are classifi ed as non-current. Financial assets at fair value through profi t or loss are measured at fair value and
changes therein, which take into account any dividend income, are recognised in profi t or loss.
Amortised cost
Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active
market. Such assets are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition,
loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. They are
included in current assets, except for those with maturities greater than 12 months after the reporting period, which are classifi ed as
non-current assets. Loans and receivables comprise cash and cash equivalents and trade and other receivables.
Non-derivative fi nancial liabilities
Financial liabilities are measured at amortised cost.
The Company initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other
fi nancial liabilities are recognised initially on the trade date, which is the date that the Company becomes a party to the contractual
provisions of the instrument.
The Company derecognises a fi nancial liability when its contractual obligations are discharged, cancelled or expire.
Other fi nancial liabilities comprise loans and borrowings and trade and other payables.
Share capital
Ordinary shares
Ordinary shares are classifi ed as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity, net of any tax effects.
(g) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group 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. The fi nancial
statements of subsidiaries are included in the consolidated fi nancial statements from the date on which control commences until the
date on which control ceases. The accounting policies of the subsidiaries have been changed when necessary to align them with the
policies adopted by the Group.
Non-controlling interests represent the portion of profi t or loss and net assets in subsidiaries not held by the Group and are presented
separately in the Statement of Profi t or Loss and Other Comprehensive Income and within equity in the Consolidated Statement of
Financial Position. Losses are attributed to the non-controlling interests even if that results in a defi cit balance.
The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and
non-controlling interests to refl ect their relative interests in the subsidiary.
Loss of control
On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and other
components of equity related to the subsidiary. Any surplus or defi cit arising on the loss of control is recognised in profi t or loss.
If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is
lost. Subsequently that retained interest is accounted for as an equity accounted investee or as an available-for-sale fi nancial asset
depending on the level of infl uence retained.
Investments in associates and jointly controlled entities are accounted for under the equity method and are initially recognised at
cost. The cost of the investment includes transaction costs.
Transactions eliminated on consolidation
Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are
eliminated in preparing the consolidated fi nancial statements.
Annual Report to Shareholders | 29
NOTES TO THE FINANCIAL STATEMENTS
(h) Tax
Current tax and deferred tax is recognised in profi t or loss except to the extent that it relates to a business combination, or items
recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or
substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for fi nancial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that
affects neither accounting nor taxable profi t or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the reversal
of the temporary differences and it is probable that they will not reverse in the foreseeable future; or
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred tax refl ects the tax consequences that would follow the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates
enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or
on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be
realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profi ts will be available against which they can be utilised. Deferred tax assets are reviewed at each
reporting date and are reduced to the extent that it is no longer probable that the related tax benefi t will be realised.
(i) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.
(j) Impairment
Financial instruments
Policy applicable from 1 July 2018
The Company recognises expected credit losses (‘ECLs’), where material, on:
- Financial assets measured at amortised cost;
The Group measures loss allowances at an amount equal to lifetime ECLs, except for the following, which are measured at
12-month ECLs:
-
Other debt securities and bank balances for which credit risk (i.e the risk of default occurring over the expected life of the fi nancial
instrument) has not increased signifi cantly since initial recognition.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs. At each
reporting date, the Group assesses whether fi nancial assets carried at amortised cost and debt securities at fair value through other
comprehensive income are credit-impaired.
The gross carrying amount of a fi nancial asset is written off when the Group has no reasonable expectations of recovering a fi nancial
asset in its entirety or a portion thereof.
Non-derivative fi nancial assets
Policy applicable before 1 July 2018
A fi nancial asset not classifi ed as at fair value through profi t or loss is assessed at each reporting date to determine whether there
is any objective evidence that it is impaired. A fi nancial asset is considered to be impaired if objective evidence indicates that one or
more events have had a negative effect on the estimated future cash fl ows of that asset.
For an investment in an equity security classifi ed as available-for-sale, a signifi cant or prolonged decline in its fair value below its
cost is objective evidence of impairment. The Group consider a decline of 20 per cent to be signifi cant and a period of 9 months to
be prolonged.
PAGE 30 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Financial assets measured at amortised cost
Individually signifi cant fi nancial assets are tested for impairment on an individual basis. The remaining fi nancial assets are assessed
collectively in groups that share similar credit risk characteristics.
An impairment loss in respect of a fi nancial asset measured at amortised cost is calculated as the difference between its carrying
amount, and the present value of the estimated future cash fl ows discounted at the original effective interest rate. Losses are
recognised within profi t or loss. When an event occurring after the impairment was recognised causes the amount of impairment loss
to decrease, the decrease in impairment loss is reversed through profi t or loss.
Non-fi nancial assets
The carrying amounts of the Group’s non-fi nancial assets, other than deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.
For goodwill and intangible assets that have indefi nite lives or that are not yet available for use, the recoverable amount is estimated
each year at the same time.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value in use.
In assessing value in use, the estimated future cash fl ows are discounted to their present value using a pre-tax discount rate that
refl ects current market assessments of the time value of money and the risks specifi c to the asset or CGU. For impairment testing,
assets are grouped together into the smallest group of assets that generates cash infl ows from continuing use that are largely
independent of the cash infl ows of other assets or CGUs. Impairment losses are recognised in profi t or loss.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(k) Segment reporting
Determination and presentation of operating segments
The Group determines and presents operating segments based on the information that is provided internally to the CEO, who is the
Group’s chief operating decision maker.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating
segments’ operating results are regularly reviewed by the Group’s CEO to make decisions about resources to be allocated to the
segment and assess its performance.
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), head offi ce
expenses, and income tax assets and liabilities.
(l) Employee benefi ts
Short-term employee benefi ts
Short-term employee benefi t obligations are measured on an undiscounted basis and are expensed as the related service is
provided.
Share-based payment transactions
The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a
corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The amount
recognised as an expense is adjusted to refl ect the number of awards for which the related service and non-market vesting
conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards
that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with
non-vesting conditions, the grant date fair value of the share-based payment is measured to refl ect such conditions and there is no
true-up for differences between expected and actual outcomes.
(m) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outfl ow of economic benefi ts will be required to settle the obligation. Provisions are determined by
discounting the expected future cash fl ows at a pre-tax rate that refl ects the current market assessments of the time value of money
and the risks specifi c to the liability. The unwinding of the discount is recognised as a fi nance cost.
Site restoration
In accordance with the Group’s environmental policy and applicable legal requirements, a provision for site restoration in respect of
contaminated land, and the related expense, is recognised when the land is contaminated.
Annual Report to Shareholders | 31
NOTES TO THE FINANCIAL STATEMENTS
(n) New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after
1 July 2018, and have not been applied in preparing these consolidated fi nancial statements. The Group is in the process of
assessing the impact of new standards. Those which may be relevant to the Group are set out below. The Group does not plan
to adopt these standards early.
AASB 16 Leases
AASB 16 removes the lease classifi cation test for lessees and requires all the leases (including operating leases) to be brought onto
the balance sheet. The defi nition of a lease is also amended and is now the new on/off balance sheet test for lessees.
AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted.
The Group is assessing the potential impact on its fi nancial statements resulting from the application of AASB 16.
4. DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both fi nancial and
non-fi nancial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the
following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the
notes specifi c to that asset or liability.
Equity securities
The fair values of investments in equity securities are determined with reference to their quoted closing bid price at the
measurement date.
Share-based payment transactions
The fair value of the employee share options is measured using the Black-Scholes formula. Measurement inputs include share
price on the measurement date, exercise price of the instrument, expected volatility (based on an evaluation of the historic volatility
of the Company’s share price, particularly over the historical period commensurate with the expected term), expected term of the
instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate
(based on government bonds). Service and non-market performance conditions are not taken into account in determining fair value.
5. OTHER INCOME AND EXPENSES
Research and development claim – (expense)/income (refer note 18)
Government subsidy
6. LOSS FROM OPERATING ACTIVITIES - EXPENSES
Loss from ordinary activities have been arrived after charging the following items:
Auditors’ remuneration paid during the year
- Audit and review of fi nancial reports – KPMG
Depreciation
- Land and Building
- Plant and equipment
2019
$
(1,402,997)
-
(1,402,997)
2018
$
693,749
141,966
835,715
55,250
45,500
24,080
21,401
24,059
23,267
Exploration and evaluation expenditure expensed as incurred
1,183,603
1,537,773
PAGE 32 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
7. LOSS PER SHARE
The calculation of basic and diluted loss per share at 30 June 2019 was based on the loss attributable to ordinary shareholders
of $3,539,654 (2018 - $1,712,330 loss) and a weighted average number of ordinary shares outstanding during the fi nancial year
ended 30 June 2019 of 494,819,677 (2018 – 443,244,168), calculated as follows:
Net loss for the year
Weighted average number of ordinary shares (basic and diluted)
Issued ordinary shares at 1 July
Weighted average number of ordinary shares at 30 June
As the Company is loss making, none of the potentially dilutive securities are currently dilutive.
8. CASH AND CASH EQUIVALENTS
Cash at bank
Cash and cash equivalents in the statement of cash fl ows
9. INCOME TAX EXPENSE
Current tax expense
Current year
Tax losses not recognised
Deferred tax expense
Current year
De-recognition of temporary differences
2019
$
2018
$
3,539,654
1,712,330
2019
Number
2018
Number
463,959,479
421,414,516
494,819,677
443,244,168
2019
$
725,933
725,933
(607,775)
607,775
-
23,426
(23,426)
-
2018
$
1,649,466
1,649,466
(682,497)
682,497
-
32,621
(32,621)
-
Numerical reconciliation between tax expense and pre-tax net profi t
Loss before tax - continuing operations
(3,539,654)
(1,712,330)
Prima facie income tax benefi t at the Australian tax rate of 27.5%
(973,405)
(470,891)
Increase in income tax expense due to:
- Adjustments not resulting in temporary differences
- Effect of tax losses not recognised
- Unrecognised temporary differences
Income tax expense current and deferred
Deferred tax assets have not been recognised in respect of the following items
Deductible temporary differences (net)
Tax losses
Net
(479,249)
1,476,080
(23,426)
-
79,521
8,208,026
8,287,546
294,554
208,958
(32,621)
-
78,936
6,731,946
6,810,882
Annual Report to Shareholders | 33
NOTES TO THE FINANCIAL STATEMENTS
The deductible temporary differences and tax losses do not expire under the current tax legislation. Deferred tax assets have not
been recognised in respect of these items because it is not probable that future taxable profi t will be available against which the
Company can utilise the benefi ts of the deferred tax asset.
10. TRADE AND OTHER RECEIVABLES
Current
Other debtors
11. OTHER ASSETS
Current prepayments
12. PROPERTY PLANT AND EQUIPMENT
Land and Buildings
Land and Building - at cost
Accumulated depreciation
Total Land and Buildings – net book value
Plant and Equipment
Plant and equipment - at cost
Accumulated depreciation
Total plant and equipment - net book value
Reconciliations
Reconciliations of the carrying amounts for each class of assets are set out below:
Land and Buildings
Balance at 1 July
Additions
Depreciation
Carrying amount at the end of the fi nancial year
Plant and equipment
Balance at 1 July
Additions
Disposals
Depreciation
Carrying amount at the end of the fi nancial year
Total carrying amount at the end of the fi nancial year
PAGE 34 | ARGENT MINERALS LIMITED
2019
$
19,562
22,904
22,904
502,763
(192,509)
310,254
157,443
(104,990)
52,453
362,707
331,849
2,485
(24,080)
310,254
66,522
7,823
(491)
(21,401)
52,453
362,707
2018
$
-
23,265
23,265
500,278
(168,429)
331,849
155,259
(88,737)
66,522
398,371
355,908
-
(24,059)
331,849
64,918
24,871
-
(23,267)
66,522
398,371
NOTES TO THE FINANCIAL STATEMENTS
2019
$
2018
$
33,599
67,943
101,542
68,807
35,939
104,746
3
100,787
25,000
125,787
66,884
24,442
91,326
6
13. TRADE AND OTHER PAYABLES
Current
Creditors
Accruals
14. EMPLOYEE ENTITLEMENTS
Current
Employee annual leave provision
Long service leave provision
Number of employees at the end of the fi nancial year
15. CAPITAL AND RESERVES
Issued and paid up capital
539,561,347 (2018 – 463,959,479) fully paid ordinary shares
30,462,609
29,274,380
Fully paid ordinary shares
Balance at the beginning of the fi nancial year
Issue of shares
Exercise of options
Costs of issue
Balance at the end of fi nancial year
29,274,380
28,090,527
1,268,939
1,268,000
273
(80,983)
-
(84,147)
30,462,609
29,274,380
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid.
During the year ended 30 June 2019 the following shares were issued:
On 30 April 2019, the Company issued 33,748,315 ordinary shares and 33,748,315 listed options under a share placement offer
for cash totalling $641,218. Total issue cost of $38,520 was recognised as a reduction in proceeds of issue of these shares.
The listed options were each exercisable at 5 cents to acquire one fully paid ordinary share which expire on 29 October 2021.
On 20 December 2018, the Company issued 2,866,667 ordinary shares and 1,433,332 listed options under a shortfall offer on
the same terms as the non-renounceable entitlement offer for cash totalling $43,000. The listed options were each exercisable at
5 cents to acquire one fully paid ordinary share which expire on 29 October 2021.
On 20 November 2018, the Company issued 38,981,428 ordinary shares and 19,490,696 listed options under a non-renounceable
entitlement offer for cash totalling $584,721. Total issue cost of $42,463 was recognised as a reduction in proceeds of issue of
these shares. The listed options were each exercisable at 5 cents to acquire one fully paid ordinary share which expire on
29 October 2021.
During the year ended 30 June 2019, 5,458 ordinary shares (2018 – nil) were issued through the exercise of listed options for cash
totalling $273 (2018 – nil).
During the year ended 30 June 2018 the following shares were issued:
On 22 June 2018, the Company issued 1,304,347 ordinary shares for nil consideration under the Option to Purchase Box Hill farm.
This transaction was recorded at a fair value of $30,000 at an issue price based on the fi ve day volume weighted average price
immediately prior to issue date being $0.023 per share.
On 20 December 2017, the Company issued 40,000,000 ordinary shares and 40,000,000 listed options for cash totalling
$1,200,000. Total issue cost of $84,147 was recognised as a reduction in proceeds of issue of these shares. The listed options
were each exercisable at 10 cents to acquire one fully paid ordinary share which expire on 27 June 2019.
On 10 November 2017, The Company issued 1,240,616 ordinary shares for nil consideration to Mr Clifton McGilvray as part of his
employment contract. This transaction was recorded at a fair value of $38,000 at an issue price of $0.03 per share.
Annual Report to Shareholders | 35
NOTES TO THE FINANCIAL STATEMENTS
Terms and conditions - Shares
Holders of ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholders’
meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any proceeds
of liquidation.
Option Reserves
At the beginning of the year
Options lapsed during the reporting period
Share Based Payments - Options
Balance at the end of the period
2019
$
193,529
(18,992)
36,978
211,515
2018
$
143,636
(11,604)
61,497
193,529
Listed options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise Period
Exercise Price
Opening
Balance
1 July 2018
Number
Options
Issued
Number
Options
Expired/
Exercised
Number
(vii) (viii) (xi)
(ix) (xii)
Closing
Balance
30 June 2019
Number
On or before 27 June 2019
$0.10
187,000,000
-
187,000,000
-
On or before 29 October 2021
$0.05
-
54,672,343
5,458
54,666,885
Exercise Period
Exercise Price
Opening
Balance
1 July 2017
Number
Options
Issued
Number
(iii)
Options
Expired/
Exercised
Number
Closing
Balance
30 June 2018
Number
On or before 27 June 2019
$0.10
147,000,000
40,000,000
-
187,000,000
Unlisted options to take up ordinary shares in the capital of the Company have been granted as follows:
Exercise Period
Exercise Price
On or before 30 September 2021
On or before 30 September 2021
On or before 30 September 2021
$0.03
$0.06
$0.10
Exercise Period
Exercise Price
On or before 30 September 2021
On or before 30 September 2021
On or before 30 September 2021
$0.03
$0.06
$0.10
Opening
Balance
1 July 2018
Number
3,500,000
3,500,000
4,500,000
Opening
Balance
1 July 2017
Number
4,000,000
4,000,000
4,500,000
Options Issued/(Expired)/
(Exercised) Number
(iv) (v) (vi) (x)
Closing
Balance
30 June 2019
Number
2,500,000
6,000,000
1,500,000
5,000,000
2,000,000
6,500,000
Options Issued/(Expired)/
(Exercised) Number
(i), (ii)
Closing
Balance
30 June 2018
Number
(500,000)
3,500,000
(500,000)
3,500,000
-
4,500,000
(i) On 15 September 2017, the Company cancelled 500,000 6 cents unlisted options issued under the Employee Share Scheme
following the employee resignation.
(ii) On 15 November 2017, the Company cancelled 500,000 3 cents unlisted options issued under the Employee Share Scheme
following the employee resignation.
PAGE 36 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
(iii) On 20 December 2017, the Company issued 40,000,000 10 cents listed options to sophisticated investors with respect to
December 2017 capital raising.
(iv) On 9 October 2018, the Company issued 3,000,000 3 cents unlisted options to its employees under the Employee
Share Scheme.
(v) On 9 October 2018, the Company issued 2,000,000 6 cents unlisted options to its employees under the Employee
Share Scheme.
(vi) On 9 October 2018, the Company issued 2,000,000 10 cents unlisted options to its employees under the Employee
Share Scheme.
(vii) On 20 November 2018, the Company issued 19,490,696 5 cents listed options under a non-renounceable entitlement offer
with respect to November 2018 capital raising.
(viii) On 20 December 2018, the Company issued 1,433,332 5 cents listed options under a shortfall offer on the non-renounceable
entitlement offer with respect to December 2018 capital raising.
(ix) On 20 December 2018, the 5,458 5 cents listed options were exercised by an option holder.
(x) On 14 February2019, the Company cancelled 500,000 3 cent and 500,000 6 cent unlisted options issued under the Employee
Share Scheme following an employee’s resignation.
(xi) On 30 April 2019, the Company issued 33,748,315 5 cents listed options to sophisticated investors with respect to April 2019
capital raising.
(xii) On 27 June 2019, 187,000,000 10 cents listed options expired.
16. STATEMENT OF CASH FLOWS
Reconciliation of cash fl ows from operating activities
Loss for the period
Adjustments for:
Depreciation of plant and equipment
Loss on disposal of plant and equipment
Share based payments
Changes in assets and liabilities
R&D claims payable
Decrease/(Increase) in receivables
Decrease/ (Increase) in prepayments
(Decrease)/Increase in payables and provisions
Shares issued for non-cash
Net cash used in operating activities
17. RELATED PARTIES
Key management personnel and director transactions
2019
$
2018
$
(3,539,654)
(1,712,330)
45,481
491
36,978
1,395,276
(19,562)
361
(10,825)
-
47,326
-
61,497
-
17,610
(3,727)
39,203
68,000
(2,091,454)
(1,482,421)
The following key management personnel holds a position in another entity that results in them having control or joint control over the
fi nancial or operating policies of that entity, and this entity transacted with the Company during the year as follows:
During the year ended 30 June 2019, Peter Wall had a benefi cial interest in an entity, Steinepreis Paganin Lawyers & Consultants,
which provided legal consulting services on ordinary commercial terms. Fees paid to Steinepreis Paganin Lawyers & Consultants
amounted to $34,008 (2018 - $1,523). A balance of $3,000 remained outstanding at 30 June 2019 in relation to these services
(2018 - $1,523).
Annual Report to Shareholders | 37
NOTES TO THE FINANCIAL STATEMENTS
Key management personnel compensation
During the year ended 30 June 2019 compensation of key management personnel totalled $493,047 (2018 - $505,485), which
comprised primary salary and fees of $434,996 (2018 - $431,446), superannuation of $29,455 (2018 - $29,450), share based
payments of $11,753 (2018 - $39,095) and long service leave of $16,843 (2018 – $5,494). During the 2019 and 2018 fi nancial years,
no long-term benefi ts or termination payments were paid.
18. REPAYMENT OF R&D CLAIM
R&D Claim repayable
2019
$
1,395,276
2018
$
-
The Group has been undergoing a review by AusIndustry in relation to the R&D claims it made for the 2016 and 2017 fi nancial years
totalling $1,402,997.
During the year, AusIndustry issued negative fi ndings for the R&D Claims, for which the Company may ultimately be required to repay
up to $1,402,997 plus penalties and interest. The Company remains of the view that the R&D claims were made in compliance with
the applicable legislation and is currently pursuing its rights under the law commencing with an Independent Review by another state
branch of AusIndustry (Independent Review) as provided for under Division 5 of the Industry Research and Development Act 1986
(“IR&D Act”).
Subsequent to the negative fi nding issued by the AusIndustry, Argent informed the Australian Taxation offi ce (ATO) by providing
a preliminary voluntary disclosure on its R&D Claims. In addition the Company self- amended its income tax returns for the 2016
(FY2016) and 2017 (FY17) fi nancial years which resulted in an amended assessment and the Company owing $709,249 for FY16
and $693,748 for FY17. The ATO has agreed to a proposal submitted by the Company requiring monthly payments of $5,000 for an
interim period until AusIndustry has completed its review process and issued its Determination (Review Arrangement).
The monthly payments commenced on 22 May 2019 and continue until 22 October 2019 at which time the Company anticipates
the independent review by AusIndustry will be complete. The Company accrued a General Interest Charge (GIC) for interest incurred
from 9 May 2019 to 30 June 2019 of $9,932. As at 30 June 2019, payments totalling $10,000 under the payment arrangement plus
$7,653 from GST tax credits and FBT returns were used towards the payment of the potential tax liability.
In the event, AusIndustry reverses/modifi es its fi ndings as a result of its R&D Claim Review, the income tax returns for FY2016 and
FY2017 will be amended accordingly under the Income Tax Assessment Act. However, if the fi ndings are unfavourable, the law
provides the Company the right of appeal to both the Administrative Appeals Tribunal and thereafter the Federal Court.
At 30 June 2019, a provision for $1,395,276 has been recognised equal to the amount repayable in relation to the R&D claim for the
2016 and 2017 fi nancials years.
19. SHARE BASED PAYMENTS
The Company has an Incentive Option Plan to provide eligible persons, being employees or directors, or individuals whom the Plan
Committee determine to be employees for the purposes of the Plan, with the opportunity to acquire options over unissued ordinary
shares in the Company. The number of options granted or offered under the Plan will not exceed 10% of the Company’s issued share
capital and the exercise price of options will be the greater of the market value of the Company’s shares as at the date of grant of
the option or such amount as the Plan Committee determines. Options have no voting or dividend rights. The vesting conditions of
options issued under the plan are based on minimum service periods being achieved. There are no other vesting conditions attached
to options issued under the plan.
In the event that the employment or offi ce of the option holder is terminated, any options which have not reached their exercise
period will lapse and any options which have reached their exercise period may be exercised within two months of the date of
termination of employment. Any options not exercised within this three month period will lapse.
PAGE 38 | ARGENT MINERALS LIMITED
The following options were granted during the year ended 30 June 2019 and were on issue at 30 June 2019
NOTES TO THE FINANCIAL STATEMENTS
Grant Date
Expiry Date
Vesting Date
24 October 2016
30 September 2021
24 October 2016
24 October 2016
30 September 2021
31 December 2017
24 October 2016
30 September 2021
31 December 2018
2 November 2016
30 September 2021
2 November 2016
2 November 2016
30 September 2021
31 December 2017
2 November 2016
30 September 2021
31 December 2018
25 October 2018
30 September 2021
31 December 2018
25 October 2018
30 September 2021
30 June 2019
25 October 2018
30 September 2021
30 June 2020
25 October 2018
30 September 2021
30 June 2019
25 October 2018
30 September 2021
30 June 2020
25 October 2018
30 September 2021
30 June 2020
The following options were on issue at 30 June 2018:
24 October 2016
30 September 2021
24 October 2016
24 October 2016
30 September 2021
31 December 2017
24 October 2016
30 September 2021
31 December 2018
2 November 2016
30 September 2021
2 November 2016
2 November 2016
30 September 2021
31 December 2017
2 November 2016
30 September 2021
31 December 2018
30 November 2016
30 September 2021
30 November 2016
30 November 2016
30 September 2021
31 December 2017
Fair Value
of Options
Granted
Expired
During the
Period
Number
Balance at
the end of the
period
Number
Exercise
Price
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.03
$0.03
$0.06
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.06
$30,154
500,000
1,000,000
$26,826
500,000
1,000,000
$24,052
$41,982
$37,417
$50,397
$5,600
$5,600
$5,600
$3,200
$3,200
$3,800
-
-
-
-
-
-
-
-
-
-
1,500,000
2,000,000
2,000,000
3,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
$237,828
1,000,000
17,500,000
$30,154
$26,826
$24,052
$41,982
$37,417
$50,397
-
-
-
-
-
-
$7,884
500,000
$6,948
500,000
1,500,000
1,500,000
1,500,000
2,000,000
2,000,000
3,000,000
-
-
$225,660
1,000,000
11.500,000
Annual Report to Shareholders | 39
NOTES TO THE FINANCIAL STATEMENTS
Fair value of options
The fair value of options granted is measured at grant date and recognised as an expense over the period during which the key
management and the employees become unconditionally entitled to the options.
The fair value of the options granted is measured using an option valuation methodology, taking into account the terms and
conditions upon which the options were granted. The amount recognised as an expense is adjusted to refl ect the actual number of
options that vest.
There were 7,000,000 options granted as consideration during the year (2018 – nil) and 1,000,000 options lapsed during the year
(2018 – 1,000,000).
The fair value of options granted on 24 October 2016 was $81,032. The Black-Scholes formula model inputs were the Company’s
share price of $0.026 at the grant date, the volatility factor of 110% based on historic share price performance, a risk free interest rate
of 1.84% based on government bonds, and a dividend yield of 0%.
The fair value of options granted on 2 November 2016 was $129,796. The Black-Scholes formula model inputs were the Company’s
share price of $0.027 at the grant date, the volatility factor of 110% based on historic share price performance, a risk free interest rate
of 1.87% based on government bonds, and a dividend yield of 0%.
The fair value of options that expired on 30 November 2016 was $14,832. The Black-Scholes formula model inputs were the
Company’s share price of $0.021 at the grant date, the volatility factor of 111.53% based on historic share price performance, a risk
free interest rate of 2.16% based on government bonds, and a dividend yield of 0%.
The fair value of options granted on 25 October 2018 was $27,000. The Black-Scholes formula model inputs were the Company’s
share price of $0.016 at the grant date, the volatility factor of 76.82% based on historic share price performance, a risk free interest
rate of 2.11% based on government bonds, and a dividend yield of 0%.
During the year ended 30 June 2019, share based payment expense of $36,978 was recorded in the profi t and loss (2018 - $61,497).
No ordinary shares have been issued as a result of the exercise of any option granted pursuant to the Incentive Option Plan during
the current and prior fi nancial year.
During the year ended 30 June 2019, 7,500,000 (2018 - 3,500,000) share options vested and 4,000,000 were yet to be vested at
balance date. During the year, 1,000,000 options lapsed following the resignation of an employee (2018 – 1,000,000).
A summary of the movements of all the Company’s options issued as share based payments is as follows:
Outstanding at the beginning
Granted
Expired
Options outstanding at year end
Exercisable at year end
2019
2018
Number
of options
Weighted average
exercise price
Number
of options
Weighted average
exercise price
11,500,000
7,000,000
1,000,000
17,500,000
13,500,000
$0.067
$0.059
$0.045
$0.065
$0.062
12,500,000
-
1,000,000
11,500,000
7,000,000
$0.065
-
$0.045
$0.067
$0.045
The weighted average remaining contractual life of share options outstanding at the end of 30 June 2019 was 2.25 years
(2018 – 1.12 years), and the weighted average exercise price was $0.054 (2018 - $0.067).
(i) On 9 June 2017, the Company issued 666,666 fully paid ordinary shares as part consideration under the binding option term
sheet, to the owners of a key property within the proposed Kempfi eld Polymetallic Project site. The transaction was recorded
at a fair value of $20,000 at an issue price based on the fi ve day volume weighted average price immediately prior to issue date
being $0.03 per share.
(ii) On 10 November 2017, the Company issued 1,240,616 ordinary shares for nil consideration to Mr Clifton McGilvray as part of his
employment contract. This transaction was recorded at a fair value of $38,000 at an issue price of $0.03 per share.
(iii) On 22 June 2018, the Company issued 1,304,347 fully paid ordinary shares as part consideration under the binding option term
sheet, to the owners of a key property within the proposed Kempfi eld Polymetallic Project site. The transaction was recorded
at a fair value of $30,000 at an issue price based on the fi ve day volume weighted average price immediately prior to issue date
being $0.023 per share.
PAGE 40 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
20. FINANCIAL INSTRUMENTS
Financial risk management objectives and policies
The Group’s fi nancial instruments comprise deposits with banks, receivables, other deposits, trade and other payables and from time
to time short term loans from related parties. The Group does not trade in derivatives or in foreign currency.
The Group manages its risk exposure of its fi nancial instruments in accordance with the guidance of the audit and the risk
management committee and the Board of Directors. The main risks arising from the Group’s fi nancial instruments are market risk,
credit risk and liquidity risks. This note presents information about the Group’s exposure to each of these risks, its objectives, policies
and processes for measuring and managing risk, and the Group’s management of capital.
Risk management framework
The Board has overall responsibility for the establishment and oversight of the risk management framework. Informal risk
management policies are established to identify and analyse the risks faced by the Group. The primary responsibility to monitor the
fi nancial risks lies with the CEO and the Company Secretary under the authority of the Board.
Credit risk
Credit risk arises mainly from the risk of counterparties defaulting on the terms of their agreements.
The carrying amounts of the following assets represent the Group’s maximum exposure to credit risk in relation to fi nancial assets:
Cash and cash equivalents
Trade and other receivables
Security deposits
Cash and cash equivalents
Notes
8
10
Carrying Amount
2019
Carrying Amount
2018
$
725,933
19,562
93,100
838,595
$
1,649,466
-
83,100
1,732,566
The Group mitigates credit risk on cash and cash equivalents by dealing with regulated banks in Australia.
Trade and other receivables
Credit risk of trade and other receivables is very low as it consists predominantly of amounts recoverable from Golden Cross
Resources Limited for their share of exploration expenditure in the West Wyalong project. In the event that such amounts are not
recoverable, their share in the project will be diluted in accordance with the Farm in and Joint Venture Agreements.
Security deposits of $93,100 held as deposits with government departments and regulated banks within Australia are the only
non-current fi nancial assets held by the Group. All other fi nancial assets are current and are not past due or impaired and the Group
does not have any material credit risk exposure to any single debtor or group of debtors under fi nancial instruments entered into by
the Group.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its fi nancial obligations as they fall due. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will always have suffi cient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Ultimate responsibility for liquidity management rests with the Board. The Group monitors rolling forecasts of liquidity on the basis of
expected fund raisings, trade payables and other obligations for the ongoing operation of the Group. At balance date, the Group has
available funds of $725,933 for its immediate use.
Annual Report to Shareholders | 41
NOTES TO THE FINANCIAL STATEMENTS
The following are the contractual maturities of fi nancial liabilities, including estimated interest payments:
Carrying
amount
$
Contractual
cash fl ows
Less than
one year
Between one
and fi ve years
Interest
$
$
30 June 2019
Trade and other payables
101,542
(101,542)
(101,542)
R&D Claims repayable
1,395,276
1,395,276
1,395,276
30 June 2018
Trade and other payables
125,787
(125,787)
(125,787)
$
-
-
-
$
-
60,047
-
It is not expected that the cash fl ows included in the maturity analysis could occur signifi cantly earlier, or at signifi cantly
different amounts.
Market Risks
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the
Group’s income or the value of its holdings of fi nancial instruments. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return.
Interest rate risk
The Group’s income statement is affected by changes in interest rates due to the impact of such changes on interest income from
cash and cash equivalents and interest bearing security deposits. The average interest rate on funds held during the year was 1.27%
(2018 - 1.19%).
At balance date, the Group had the following mix of fi nancial assets exposed to variable interest rate risk that are not designated as
cash fl ow hedges:
Financial assets
Cash and cash equivalents
Security deposits
Net exposure
Notes
8
2019
$
725,933
35,000
819,033
2018
$
1,649,466
35,000
1,684,466
The Group did not have any interest bearing fi nancial liabilities in the current or prior year.
The Group does not have interest rate swap contracts. The Group always analyses its interest rate exposure when considering
renewals of existing positions including alternative fi nancing.
Sensitivity Analysis
The following sensitivity analysis is based on the interest rate risk exposures at balance date.
An increase of 100 basis points in interest rates throughout the reporting period would have decreased the loss for the period by the
amounts shown below, whilst a decrease would have increased the loss by the same amount. The Company’s equity consists of fully
paid ordinary shares. There is no effect on fully paid ordinary shares by an increase or decrease in interest rates during the period.
2019
$
12,007
2018
$
20,602
Currency risk
The Consolidated entity is not exposed to any foreign currency risk as at 30 June 2019 (2018 - $nil).
PAGE 42 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confi dence and to sustain
future development of the business.
The Board ensures costs are not incurred in excess of available funds and will seek to raise additional funding through issues of
shares for the continuation of the Group’s operations. There were no changes in the Group’s approach to capital management during
the year.
The Group is not subject to externally imposed capital requirements.
Estimation of fair values
The carrying amounts of fi nancial assets and liabilities approximate their net fair values, given the short time frames to maturity and or
variable interest rates.
21. SEGMENT REPORTING
For management purposes, the consolidated entity is organised into one main operating segment, which involves the exploration
of minerals in Australia. All of the consolidated entity’s activities are interrelated, and discrete fi nancial information is reported to the
Board as a single segment. Accordingly, all signifi cant operating decisions are based upon analysis of the consolidated entity as
one segment.
The fi nancial results from this segment are equivalent to the fi nancial statements of the consolidated entity as a whole.
The accounting policies applied for internal reporting purposes are consistent with those applied in the preparation of these fi nancial
statements.
22. SUBSIDIARIES
The parent entity, Argent Minerals Limited, has a 100% interest in Argent (Kempfi eld) Pty Ltd, Loch Lilly Pty Ltd, West Wyalong Pty
Ltd, Sunny Silver Pty Ltd and Mt Read Pty Ltd. Argent Minerals Limited is required to make all the fi nancial and operating policy
decisions for these subsidiaries.
Subsidiaries of Argent
Minerals Limited
Argent (Kempfi eld) Pty Ltd
Loch Lilly Pty Ltd
West Wyalong Pty Ltd
Sunny Silver Pty Ltd
Mt Read Pty Ltd
Country of incorporation
Ownership percentage 2019 Ownership percentage 2018
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Annual Report to Shareholders | 43
NOTES TO THE FINANCIAL STATEMENTS
23. PARENT COMPANY DISCLOSURE
(a) Financial Position as at 30 June 2019
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non- current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
2019
$
756,097
53,194
809,291
1,517,318
-
1,517,318
(708,027)
2018
$
1,603,739
20,992
1,624,731
131,979
-
131,979
1,492,752
30,462,609
29,274,380
211,515
193,529
(31,382,151)
(27,978,157)
(708,027)
1,492,752
There are no contingencies, commitments and guarantees by the Parent other than disclosed in Note 18.
(b) Financial Performance for the year ended 30 June 2019
Loss for the year
Other comprehensive income
Total comprehensive loss
24. JOINT VENTURES
West Wyalong
3,422,986
1,718,374
-
-
3,422,986
1,718,374
The Group has entered into the Farm in and Joint Venture Agreements with Golden Cross Operations Pty Ltd, a wholly owned
subsidiary of Golden Cross Resources Limited (ASX:GCR).
Under the terms of the Farm in and Joint Venture Agreement, Argent had previously earned a 70% interest in the West Wyalong
Project by spending a total of $1,350,000 by 31 March 2017.
Following the Company increasing its ownership of the West Wyalong project to 70%, under the West Wyalong Farm in and Joint
Venture Agreement, the Group’s 30% partner will either contribute their share of exploration expenditure or be diluted.
As at 30 June 2019, the joint venture partner decided to not contribute their share of exploration expenditure amounting to
$6,312 (2018 - $36,592). Following this election, the Company now owns 78.38% (2018 – 78.14%) of the West Wyalong Project.
There was $19,532 receivable outstanding as at 30 June 2019 (2018 – nil).
PAGE 44 | ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Loch Lilly
On 12 February 2017, the Group entered into joint venture agreement to earn a 51% interest, then 70% and 90% in the Loch Lilly
Project, with exploration licences and applications covering a signifi cant area of the Loch Lilly – Kars Belt of over 1,400km2. The joint
venture continues until the Company earns 90% or withdraws from the joint venture.
The Company earned a 51% interest in the joint venture completing a drill program to test two geophysical targets during the year.
A 70% interest will be earned by the Company investing a further $200,000 in exploration expenditure of the project area, plus a
payment of $50,000. There is no time limit by which the expenditure is to be completed other than that implied by the regulatory
expenditure requirements. A 90% interest will be earned by the Company investing a further $250,000 in exploration expenditure
of the project area, plus a payment of $50,000. There is no time limit by which the expenditure is to be completed other than that
implied by the regulatory expenditure requirements.
The Company continues as sole contributor to project expenditure until a decision to mine.
Either party may withdraw from the joint venture on provision of a 30 day notice of withdrawal. In the event that the Company
withdraws after it has earned a 51% interest but no further interest, its interest will revert to 49%. In any case if the Company
withdraws more than three months into the relevant tenement regulatory annual licence period, it must fund the other party’s
minimum regulatory expenditure for the reminder of that annual period.
Sunny Corner
The Group earned a 70% interest of the Sunny Corner Project tenements on 16 May 2013.
25. SUBSEQUENT EVENTS
On 29, August 2019, the Company announced a private placement to sophisticated investors, raising up to $1.9 million. The
maximum number of new securities that will be issued under the offer is 90,540,475 new fully paid ordinary shares at an issue price
of 2.1 cents per share (Placement Shares), 22,635,119 attaching listed ASX:ARDOA (ARDOA Placement Options) on a 1:4 basis and
90,540,475 new attaching listed options on a 1:1 basis (ARDOB Placement Options).
Each ARDOA Placement Option will be exercisable at 5.0 cents on or before 29 October 2021, and each ARDOB Placement Option
will be exercisable at 2.5 cents up to one year from the date that the ARDOB options are listed on the ASX.
The private placement will be issued in two Tranches:
Tranche 1 – up to 58,956,627 Placement Shares under the Company’s existing capacity under ASX Listing Rule 7.1 and 7.1A; and
Tranche 2 – subject to shareholder approval, up to 31,583,848 Placement Shares, 22,635,119 ARDOA Placement Options and
subject to ASX approval, 90,540,475 ARDOB Placement Options.
On 9 September 2019, the Company issued Tranche 1 Placement Shares to raise $1,238,089 before costs. As at the date of this
report, Tranche 2 of the placement offer has not been issued as they are subject to shareholder approval at the general meeting, for
which the date and venue is yet to be determined.
Except for the above, no other matters or circumstances have arisen since the end of the fi nancial year which signifi cantly affected
or could signifi cantly affect the operations of the consolidated entity, the results of those operations, or the state of the affairs of the
consolidated entity in future fi nancial years.
Annual Report to Shareholders | 45
DIRECTORS’ DECLARATION
1.
In the opinion of the directors of Argent Minerals Limited (the Company):
(a) the consolidated fi nancial statements and notes thereto, set out on pages 22 to 45, and the Remuneration Report in the
Directors Report, as set out on pages 15 to 19, are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s fi nancial position as at 30 June 2019 and of its performance for the fi nancial year
ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable.
2. The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive
offi cer and chief fi nancial offi cer for the fi nancial year ended 30 June 2019.
3. The directors draw attention to note 2(a) of the consolidated fi nancial statements, which includes a statement of compliance with
International Financial Reporting Standards.
Signed at Sydney this 11th day of September 2019 in accordance with a resolution of the Board of Directors.
Peter Wall
Chairman
Peter Michael
Director
PAGE 46 | ARGENT MINERALS LIMITED
INDEPENDENT AUDITORS REPORT
Independent Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF ARGENT MINERALS LIMITED
To the shareholders of Argent Minerals Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Argent Minerals Limited (the Company).
In our opinion, the accompanying Financial
Report of the Company is in accordance with
the Corporations Act 2001, including:
• giving a true and fair view of the Group's
financial position as at 30 June 2019 and of its
financial performance for the year ended on
that date; and
• complying with Australian Accounting
Standards and the Corporations Regulations
2001.
Basis for opinion
The Financial Report comprises:
• Consolidated statement of financial position as at 30 June 2019;
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of changes in
equity, and Consolidated statement of cash flows for the year then
ended;
• Notes including a summary of significant accounting policies; and
• Directors' Declaration.
The Group consists of the Company and the entities it controlled
at the year-end or from time to time during the financial year.
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the
Financial Report section of our report.
We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the
Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical
responsibilities in accordance with the Code.
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability
Professional Standards Legislation.
limited by a scheme approved under
Annual Report to Shareholders | 47
INDEPENDENT AUDITORS REPORT
Independent Auditor’s Report
Material uncertainty related to going concern
We draw attention to Note 2(e), “Going Concern” in the financial report. The conditions disclosed in Note 2(e),
indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business,
and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter.
In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty
regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included:
(cid:120)
Analysing the cash flow projections by:
(cid:120) Evaluating the underlying data used to generate the projections for consistency with other information
tested by us, our understanding of the Group’s intentions, and past results and practices;
(cid:120) Assessing the planned levels of operating and capital expenditures for consistency of relationships and
trends to the Group’s historical results, results since year end, and our understanding of the business,
industry and economic conditions of the Group;
(cid:120)
(cid:120)
Assessing significant non-routine forecast cash inflows and outflows for feasibility, quantum and timing. We
used our knowledge of the client, its industry and financial position to assess the level of associated uncertainty;
and
Evaluating the Group’s going concern disclosures in the financial report by comparing them to our
understanding of the matter, the events or conditions incorporated into the cash flow projection assessment,
the Group’s plans to address those events or conditions, and accounting standard requirements. We specifically
focused on the principal matters giving rise to the material uncertainty.
Key Audit Matters
In addition to the matter described in the
Material uncertainty related to going concern
section, the Key Audit Matter we identified is:
Key Audit Matters are those matters that, in our
professional judgment, were of most significance in our
audit of the Financial Report of the current period.
Exploration and evaluation expenditure.
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.
(cid:3)(cid:3)
PAGE 48 | ARGENT MINERALS LIMITED
INDEPENDENT AUDITORS REPORT
Independent Auditor’s Report
Exploration and evaluation expenditure - $1,183,603
Refer Note 6
The key audit matter
How the matter was addressed in our audit
Exploration and evaluation expenditure is a key audit
matter due to the significance of the amount (being
33% of total expenses) and the audit effort
associated with assessing the completeness and
accuracy of the amounts recorded by the Group.
Our procedures included:
(cid:120) Assessing the Group’s policy for exploration and
evaluation expenditure against the
requirements of the accounting standards;
(cid:120) Selecting a statistical sample of items recorded
as exploration and evaluation expenditure and
checking the expenditure amount recorded for
consistency to invoices from third parties or
other underlying documentation;
(cid:120) For the sample identified above, checking the
nature of the expenditure for consistency with
its classification as exploration and evaluation
expenditure in accordance with the Group’s
accounting policy and the criteria in the
accounting standards;
(cid:120) Testing the completeness of exploration and
evaluation expenditure recorded in the year by
checking payments recorded since year end for
evidence of the timing of the transactions. For
this procedure, we selected our sample from the
Group’s payments since balance date,
July/August trade payables schedule and
unprocessed invoices post balance date, and the
underlying documentation of the transaction;
and
(cid:120) For each area of interest, we assessed the
Group’s current rights to tenure by
corroborating the ownership of the relevant
tenement to exploration licences and evaluating
agreements in place with other parties.
(cid:3)
Annual Report to Shareholders | 49
INDEPENDENT AUDITORS REPORT
Independent Auditor’s Report
Other Information
Other Information is financial and non-financial information in Argent Minerals Limited’s annual reporting which is
provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other
Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an
audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our
related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so,
we 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.
We are required to report if we conclude that there is a material misstatement of this Other Information, and based
on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report
we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001;
• implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
• assessing the Group and Company's ability to continue as a going concern. This includes disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless they either intend to
liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement,
whether due to fraud or error; and
• to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar1.pdf. This description forms part
of our Auditor’s Report.
PAGE 50 | ARGENT MINERALS LIMITED
INDEPENDENT AUDITORS REPORT
Independent Auditor’s Report
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration Report
of Argent Minerals Limited for the year
ended 30 June 2019, complies with
Section 300A of the Corporations Act
2001.
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 responsibilities
We have audited the Remuneration Report included in pages 15 to 19
of the Directors’ report for the year ended 30 June 2019.
Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing
Standards.
KPMG
Adam Twemlow
Partner
Brisbane
11 September 2019
Annual Report to Shareholders | 51
ADDITIONAL STOCK EXCHANGE INFORMATION
Home Exchange
The Company is listed on the ASX Limited. The home exchange is Perth.
Use of Cash and Assets
Since the Company’s listing on the ASX, the Company has used its cash and assets in a way consistent with its stated business
objectives.
Class of Shares and Voting Rights
There is only one class of shares in the Company, fully paid ordinary shares.
The rights attaching to shares in the Company are set out in the Company’s Constitution. The following is a summary of the principal
rights of the holders of shares in the Company.
Every holder of shares present in person or by proxy, attorney or representative at a meeting of shareholders has one vote on a vote
taken by a show of hands, and, on a poll every holder of shares who is present in person or by proxy, attorney or representative has
one vote for every fully paid share registered in the shareholder’s name on the Company’s share register.
A poll may be demanded by the chairperson of the meeting, by at least 5 shareholders entitled to vote on the resolution or
shareholders with at least 5% of the votes that may be cast on the resolution on a poll.
Distribution of Equity Security holders
As at 9 September 2019, the distribution of each class of equity was as follows:
Quoted Securities
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Fully Paid Ordinary
Share Holders
Total Number
of Shares
29 October 2021 $0.05
Listed OptionHolders
Total Number of
Listed Options
131
186
162
964
628
2,071
13,285
648,759
1,426,078
43,340,918
553,088,934
598,517,974
24
48
14
70
63
219
6,210
133,773
109,252
2,546,734
51,870,916
54,666,885
At 9 September 2019, 747 shareholders held less than a marketable parcel of shares and nil listed option holders held less than a
marketable parcel of options.
Unquoted Securities
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
30 September 2021 $0.03
Unlisted Options
30 September 2021 $0.06
Unlisted Options
30 September 2021 $0.10
Unlisted Options
-
-
-
-
2
2
-
-
-
-
2
2
-
-
-
-
2
2
PAGE 52 | ARGENT MINERALS LIMITED
Twenty Largest Quoted Shareholders
At 9 September 2019 the twenty largest fully paid ordinary shareholders held 39.09% of fully paid ordinary as follows:
ADDITIONAL STOCK EXCHANGE INFORMATION
Name
Mr Marc David Harding
Oceanic Capital Pty Ltd
HSBC Custody Nominees (Australia) Limited
Mr John Henry Matterson
Redland Plains Pty Ltd
St Barnabas Investments Pty Ltd
Busch Custodians Pty Limited
Mr Danny Murphy+Mrs Susan Murphy
1215 Capital Pty Ltd
Metugo Pty Ltd
Caves Road Investments Pty Ltd
Mr David Ian Raymond Hall + Mrs Denise Allison Hall
Dixtru Pty Limited
Struven Nominees Pty Ltd
WGS Pty Ltd
Elphinstone Pty Ltd
First Investment Partners Pty Ltd
Payzone Pty Ltd
J P Morgan Nominees Australia Limited
Mr Owen Barry Merrett + Mrs Joanne Ross Merett
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
There are no current on-market buy-backs.
Fully Paid Ordinary Shares
43,046,966
42,216,967
24,042,797
18,343,747
11,462,612
11,238,714
9,619,383
8,450,210
7,961,303
7,500,000
6,315,000
6,229,709
5,538,124
4,800,000
4,800,000
4,776,781
4,681,246
4,552,000
4,415,600
4,387,498
%
7.98
7.04
4.01
3.06
1.91
1.87
1.60
1.41
1.33
1.25
1.05
1.04
0.92
0.80
0.80
0.80
0.78
0.76
0.74
0.73
Annual Report to Shareholders | 53
ADDITIONAL STOCK EXCHANGE INFORMATION
Twenty Largest Quoted Option Holders
At 9 September 2019 the twenty largest option holders held 70.40% of listed options as follows:
Name
Mr Marc David Harding
Oceanic Capital Pty Ltd
Busch Custodians Pty Limited
Mr David Ian Raymond Hall + Mrs Denise Allison Hall
Mr Mark Arlen Ishkanian
St Barnabas Investments Pty Ltd
Mr William Henry Hernstadt
Dixtru Pty Ltd
Caves Road Investments Pty Ltd
Redland Plains Pty Ltd
Mr Thomas Andrew Calvert Murrell
Mr Danny Murphy + Mrs Susan Murphy
Payzone Pty Ltd
Mr Dean Mathews
Mr Richard Joseph Smidt
Pooky Corporation Pty Ltd < K L Christensen Super A/C>
Pooky Corporation Pty Ltd < The Garfi eld Family A/C>
Mr Alistair James Mckenzie
Metugo Pty Ltd < Metugo PL Super Fund A/C>
Mr Brett James Rudd
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Quoted Options
7,552,567
4,932,696
2,402,632
2,256,060
2,202,448
2,063,003
2,000,000
1,930,055
1,815,000
1,487,098
1,315,000
1,052,000
1,052,000
1,048,341
1,000,000
1,000,000
1,000,000
900,000
750,000
725,000
%
13.82
9.02
4.40
4.13
4.03
3.77
3.66
3.53
3.32
2.72
2.41
1.92
1.92
1.92
1.83
1.83
1.83
1.65
1.37
1.33
Substantial Shareholders
The names of the substantial shareholders who have notifi ed the Company in Accordance with Section 671B of the Corporations Act
2001 are:
Shareholder
Mr Marc David Harding
Oceanic Capital Pty Ltd
Ordinary shares held
Percentage interest %
43,046,966
42,216,967
7.98%
7.04%
PAGE 54 | ARGENT MINERALS LIMITED
SCHEDULE OF MINERAL TENEMENTS
New South Wales - Australia
Tenement Identifi er
Location
Current Equity Interest
Kempfi eld
EL5645 (1992)
EL5748 (1992)
EL7134 (1992)
EL7785 (1992)
EL7968 (1992)
EL8213 (1992)
PLL517 (1924)
PLL519 (1924)
PLL727 (1924)
PLL728 (1924)
West Wyalong
EL8430 (1992)
Loch Lilly
EL8199
EL8200
EL8515
EL8516
Queensbury
EL9/2016
Ringville
EL12/2017
Sunny Corner
EL5964 (1992)
Notes
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
TAS
TAS
NSW
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
100%2
78.38%3
51%4
51%4
51%4
51%4
100%
100%
70%5
1. The defi nition of “Mining Tenement” in ASX Listing Rule 19.12 is “Any right to explore or extract minerals in a given place”.
2. For all Kempfi eld tenements the tenement holder is Argent (Kempfi eld) Pty Ltd, a wholly owned subsidiary of Argent Minerals Limited.
3. Under the West Wyalong Joint Venture and Farmin Agreement dated 8 June 2007 between Golden Cross Operations Pty Ltd and Argent as tenement holder
(WWJVA), Argent has earned a 70% interest. The ongoing interests of the parties includes WWJVA expenditure contribution and dilution provisions commencing on a
70/30 basis.
4. The tenement holder for EL8199 and EL8200 is San Antonio Exploration Pty Ltd (SAE), and for EL8515 and EL8516 it is Loch Lilly Pty Ltd (LLP), a 100% owned
subsidiary of Argent Minerals Limited. Under the Loch Lilly Farmin and Joint Venture Agreement (JVA) dated 12 February 2017 (effective date 17 February 2017),
the respective ownership of all the tenements by the JVA Parties (SAE and LLP) is according to their respective JVA Interests. LLP has the right to earn up to a 90%
interest, with the fi rst 51% interest to be earned by completing the drill test for the Eaglehawk and Netley targets. For further details on Farmin terms and conditions
see ASX announcement 20 February 2017 – Argent secures strategic stake in Mt. Read equivalent belt.
5. The tenement holder is Golden Cross Operations Pty Ltd.
Annual Report to Shareholders | 55
MINERAL RESOURCES AND ORE RESERVES STATEMENT
KEMPFIELD (NSW, AUSTRALIA - 100% ARGENT)
RESOURCE SUMMARY
The updated Kempfi eld JORC 2012 Mineral Resource estimate as announced on 30 May 2018 is summarised in the following table
at cut-off grades of 25 g/t Ag for Oxide/Transitional and 80 g/t Ag equivalent1 for Primary:
Table 1 - Kempfi eld Mineral Resource summary - 30 June 2019
Silver (Ag)
Gold (Au)
Lead (Pb)
Zinc (Zn)
Zn Eq
Ag Eq
Resource
Tonnes
(Mt)
Grade
(g/t)
Contained
Metal
(Moz)
Grade
(g/t)
Contained
Metal
(000 oz)
Grade
(%)
Contained
Metal
(000 t)
Grade
(%)
Contained
Metal
(000 t)
Grade
(Zn Eq
%)
Contained
Zn Eq
(000 t)
Grade
(Ag Eq
g/t)
Contained
Ag Eq
(Moz)
In-situ Contained Metal Equivalents2
Oxide/
Transitional*
Primary**
Total***
6.0
20
26
55
35
40
11
23
33
0.11
21
N/Ri
N/Ri
N/Ri
N/Ri
1.0
62
64
12
0.13
0.12
81
100
0.60
0.46
120
120
1.3
1.0
250
250
2.3
2.0
450
520
140
120
91
100
* 90% ** 76% *** 79%: % of material class tonnes in Measured or Indicated Category (see Table 4 for details).
1. See Note 1 for details.
2. See Note 2 for details.
i : Not recoverable.
EXPLORATION TARGET ESTIMATE
An Exploration Target for potential mineralisation, additional to the existing resource, was estimated by H&S Consultants Pty Ltd
(H&SC) and announced on 6 June 2018, and is restated as follows as at 30 June 2019:
Silver (Ag)
Gold (Au)
Lead (Pb)
Zinc (Zn)
Zn Eq
Ag Eq
Resource
Tonnes
(Mt)
Grade
(g/t)
Contained
Metal
(Moz)
Grade
(g/t)
Contained
Metal
(000 oz)
Grade
(%)
Contained
Metal
(000 t)
Grade
(%)
Contained
Metal
(000 t)
Grade
(Zn Eq
%)
Contained
Zn Eq
(000 t)
Grade
(Ag Eq
g/t)
Contained
Ag Eq
(Moz)
In-situ Contained Metal Equivalentsb
Lower
Upper
20
50
20
40
13
64
0.1
0.2
64
320
0.3
0.5
60
250
0.7
1.0
140
500
1.3
2.1
300
1,000
80
130
58
190
Exploration Target Notes:
a) An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defi ned geological setting
where the statement or estimate, quoted as a range of tonnes and a range of grade, relates to mineralisation for which there has been
insuffi cient exploration to estimate a Mineral Resource. The potential quantity and grade of the Exploration Target is conceptual in
nature, there has been insuffi cient exploration to estimate an additional Mineral Resource and it is uncertain if further exploration will
result in the estimation of an additional Mineral Resource.
b) Same as for the Mineral Resource, Ag Eq is based on US$16.77/oz Ag, US$1,295/oz Au, US$2,402/t Pb, and US$3,219/t Zn, recoverable at 86%
of head grade for Ag, 90% for Au, 92% for Zn, and 53% for Pb. For calculation details see Note 2.
c) The upper and lower grades of the Exploration Target estimate do not necessarily correspond to the upper and lower tonnages, nor do the upper
and lower grades for each element necessarily correspond.
d) The Exploration Target estimate is based on a cutoff grade 80 g/t Ag Eq.
e) The Exploration Target has been estimated on the basis of a combination of Exploration Results and the proposed exploration programmes set
out under the heading ‘About the resource infi ll drilling programme’ in the 8 November 2017 announcement – Kempfi eld Exploration Target.
A detailed technical description of the Exploration Target estimation methodology employed by H&SC (which remains unchanged) is provided
in Appendix B of that announcement.
f) The Exploration Target is based on 515 holes/49,229 metres, with drill hole spacing generally greater than 100 metres, and sample spacing
(downhole) predominantly 1.0 metres.
PAGE 56 | ARGENT MINERALS LIMITED
MINERAL RESOURCES AND ORE RESERVES STATEMENT
RESOURCE DETAILS
Table 2 - Kempfi eld Mineral Resource - Primary material tonnes and grades by mineralisation zone and locality
Contained Metal Grades
In-situ Contained Metal
Equivalent Grades2
Zone
Locality*
Resource
Tonnes (Mt)
Silver (Ag)
(g/t)
Gold (Au)
(g/t)
1
2
3
BJ Zone
Southern Conglomerate Zone
Zone 1 Total
Quarries Zone
McCarron Zone
Zone 2 Total
West McCarron
Zone 3 Total
Total
Zone 1 + Zone 2 + Zone 3
6.9
0.20
7.1
2.8
7.9
11.1
2.2
2.2
20
47
31
46
27
31
30
22
22
35
0.05
0.29
0.06
0.05
0.17
0.14
0.27
0.27
0.13
Zinc (Zn)
(%)
1.2
0.62
1.2
1.4
1.2
1.3
1.6
1.6
1.3
Lead (Pb)
(%)
Zinc Equivalent
(Zn Eq)
(%)
Silver
Equivalent
(Ag Eq) (g/t)
0.37
0.53
0.38
0.66
0.78
0.75
0.58
0.58
0.60
2.1
1.7
2.1
2.2
2.3
2.3
2.6
2.6
2.3
130
110
130
140
140
140
160
160
140
* Mineral Resource Model constructed prior to re-characterisation of mineralisation into Zones and Horizons:
BJ Zone > Kempfi eld North = C Horizon and D Horizon
Southern Conglomerate Zone > Kempfi eld South = C Horizon and D Horizon
Quarries Zone > Henry Zone = C Horizon & D Horizon
McCarron Zone > Kempfi eld South = A Horizon and B Horizon
West McCarron Zone > Kempfi eld West = FW1 Horizon
Table 3 - Kempfi eld Mineral Resource by category
Grade (g/t)
Grade (%)
Resource
Tonnes (Mt)
Silver (Ag)
(g/t)
Gold (Au)
(g/t)
Zinc (Zn)
(%)
Lead (Pb)
(%)
In-situ Grade
(Contained Zn Eq
and Ag Eq)b
Zinc Equivalent
(Zn Eq)
(%)
Silver
Equivalent
(Ag Eq) (g/t)
2.7
2.7
0.6
6.0
4.7
10
4.9
20
26
68
47
39
55
49
34
25
35
40
0.11
0.11
0.08
0.11
0.12
0.13
0.12
0.13
0.12
-
-
-
-
0.65
0.57
0.60
0.60
0.46
-
-
-
-
1.3
1.2
1.4
1.3
1.0
1.2
0.9
0.7
1.0
2.5
2.2
2.2
2.3
2.0
76
56
45
64
150
140
140
140
120
Category
Oxide/Transitional
Measured
Indicated
Inferred
Total Oxide/Transitional
Primary
Measured
Indicated
Inferred
Total Primary
Total Resource
Annual Report to Shareholders | 57
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Table 4 - Kempfi eld Mineral Resource tonnes and contained metal in Measured and Indicated categories
Contained Metal
Resource
Tonnes (Mt)
Moz
Silver (Ag)
‘000 oz
Gold (Au)
‘000 t
Lead (Pb)
‘000 t
Zinc (Zn)
Locality*
Oxide/Transitional
Measured
Indicated
Measured + Indicated
2.7
2.7
5.4
5.8
4.1
9.9
9.3
9.9
19
As % of Total Oxide/Transitional
90%
93%
93%
Primary
Measured
Indicated
Measured + Indicated
4.7
10
15
7.5
11
19
19
44
63
-
-
-
-
31
60
90
-
-
-
-
60
130
190
‘000 t
In-situ Zinc
Equivalent
(Zn Eq)
Moz
In-situ Silver
Equivalent
(Ag Eq)
33
25
57
6.6
4.9
11
93%
93%
120
230
350
24
46
69
As % of Total Primary
76%
83%
78%
76%
74%
76%
76%
Oxide/Transitional + Primary
Measured
Indicated
Total Measured + Indicated
7.4
13
21
13
15
29
28
54
82
31
60
90
59
130
190
150
250
400
30
51
81
As % of Total Resource
79%
86%
81%
76%
74%
78%
78%
Note 1 - 80 g/t Silver Equivalent Cut-off Grade for Primary
This Resource is only reported in Resource tonnes and contained metal (ounces of silver and gold, and tonnes for lead and zinc).
The Resource estimation for the Primary material is based on a silver equivalent (Ag Eq) cut-off grade of 80 g/t.
A silver equivalent was not employed for the oxide/transitional material estimation and is based on a 25 g/t silver only cut-off grade.
The contained metal equivalence formula is based on the following assumptions:
Silver price:
$US 16.77/oz
Gold price:
Zinc price:
Lead price:
$US 1,295/oz
$US 3,129/tonne
$US 2,402/tonne
Silver recoverable:
86% of head grade
Gold recoverable:
90% of head grade
Zinc recoverable:
92% of head grade
Lead recoverable:
53% of head grade
The metals pricing is based on the one year historical average daily market close on which the 30 May 2018 Signifi cant Kempfi eld
Resource Update report was based.
The metallurgical recovery assumptions are based on metallurgical testing to date, including the results announced on 12 April 2018.
It is the Company’s opinion that all the elements in the metals equivalents calculation have a reasonable potential to be recovered
and sold.
PAGE 58 | ARGENT MINERALS LIMITED
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Note 2 – In-situ contained metal equivalent (‘Zn Eq’ and ‘Ag Eq’) calculation details
(i)
The zinc equivalent (Zn Eq) continues to be reported for the Kempfi eld deposit on the basis that zinc is estimated to be a
material contributor to potential revenues, comparable to silver, with the relative order of zinc and silver contributions highly
sensitive to volatile market prices.
(ii) The formula for calculating the zinc equivalent grade (% Zn Eq) is:
% Zn Eq = % Zn + % Pb x 0.4422 + g/t Ag x 0.0161 + g/t Au x 1.3017
(iii) The silver equivalent (Ag Eq) continues to be reported on the basis that a) the estimated silver contribution to potential
revenues is also material, comparable to zinc, with the relative order of zinc and silver contributions highly sensitive to volatile
market prices; and b) since the Company has historically published a silver equivalent, the Company’s opinion is that continuing
to do so is in the interest of transparency for investors.
(iv) The formula for calculating the silver equivalent grade (g/t Ag Eq) is:
g/t Eq Ag = g/t Ag + g/t Au x 80.81 + % Pb x 27.46 + % Zn x 62.08
(v) The above Ag Eq and Zn Eq formulae apply to both the Oxide/Transitional and Primary. For Oxide/Transitional the grade value
for Pb and Zn is entered into each formula as zero.
Note 3 – Rounding and Signifi cant Figures
Figures in the tables in this Mineral Resources and Ore Reserves Statement may not sum precisely due to rounding; the number of
signifi cant fi gures does not imply an added level of precision.
Note 4 – Comparison with Previous Mineral Resource Estimate
The underlying Mineral Resource estimate that was initially reported on 26 April 2012, subsequently updated to JORC 2012 reporting
standard on 6 May 2014, and further updated on 16 October 2014 with the addition of the metal zonation detail in Table 2 of the
Mineral Resource statement.
On 30 May 2018 the Company announced substantial revisions to the contained metal equivalence formula to refl ect the signifi cant
impact of the metallurgical recoveries announced on 12 April 2018 for the primary material, and updated market pricing for zinc,
silver, lead and gold. This resulted in signifi cant increases to contained metal equivalents (approximately doubling the Ag Eq ounces),
and the addition of a zinc equivalent for the fi rst time.
Whilst the underlying mineral resource estimation methodology and individual metal grade estimates remain unchanged, the cut-off
grade for reporting of the primary material resource, which is based on the contained metal equivalence formula set out in Note 1
and Note 2, has been increased to 80 g/t Ag Eq (from 50 g/t Ag Eq previously).
The cut-off grade for the oxide/transitional material, which does not depend on the equivalence formula, remains unchanged at
25 g/t Ag.
There have been no further changes in the Mineral Resource estimate from 30 May 2018 to 30 June 2019.
Accordingly no comparison is provided for Mineral Resource estimate statement as at 30 June 2019 versus 30 June 2018.
Note 5 - Annual Review
The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore Reserves
for the Kempfi eld Polymetallic Project for reporting as at 30 June 2019. H&SC is an independent Mineral Resources estimation
consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements
and internal controls with respect to the estimation of Mineral Resources.
JORC 2012 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in the Mineral Resources and Ore Reserves Statement for the Kempfi eld deposit is based on information compiled
by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC).
The information in the Mineral Resources and Ore Reserves Statement, including the Exploration Target, is based on, and fairly
represents, information and supporting documentation prepared by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden is a
Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy. Mr. Arnold van der Heyden has
suffi cient experience which 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 defi ned in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australasian Institute of Mining
and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia’. The Mineral Resources and Ore Reserves
Statement for the Kempfi eld deposit as a whole, and the Exploration Target in the Operations Review section of this 2019 Annual
Report, are approved by Mr. Arnold van der Heyden in the form and context in which they appear.
Annual Report to Shareholders | 59
MINERAL RESOURCES AND ORE RESERVES STATEMENT
MT. DUDLEY (NSW, AUSTRALIA - 100% ARGENT)
On 1 March 2013 Argent announced a small maiden Resource for Mt. Dudley, a potential feedstock source located approximately
4 kilometres to the east of the Kempfi eld deposit. This Mineral Resource was restated in the Company’s Annual Report to the
shareholders for the year ended 30 June 2017.
The following table sets out the Mt. Dudley Mineral Resource statement as at 30 June 2019. This information was prepared and fi rst
disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the
information has not materially changed since it was last reported.
At a cut-off grade of 0.5 g/t Au:
Table 6 - Mt Dudley Mineral Resource Estimate - 30 June 2019
Category
Inferred
Resource Tonnes (Mt)
0.89
Au (g/t)
1.0
Contained Au Metal (oz)
28,000
Note 1 - Comparison with Previous Mineral Resource Estimate
There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously stated
as at 30 June 2018. Accordingly, no comparison is provided.
Note 2 - Annual Review
The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore Reserves
for the Mt Dudley deposit for reporting as at 30 June 2019. H&SC is an independent Mineral Resources estimation consulting
practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and
internal controls with respect to the estimation of Mineral Resources.
JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in the Mineral Resources and Ore Reserves Statement for the Mt Dudley deposit is based on information compiled
by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC). The information in the Mineral
Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation prepared
by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden is a Member and Chartered Professional (Geology) of the Australasian
Institute of Mining and Metallurgy. Mr. Arnold van der Heyden has suffi cient experience which 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 defi ned in the
2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the
Joint Ore Resources Committee, the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the
Mineral Council of Australia’. The Mineral Resources and Ore Reserves Statement for the Mt Dudley Deposit as a whole is approved
by Mr. Arnold van der Heyden in the form and context in which it appears.
SUNNY CORNER (NSW, AUSTRALIA - 70% ARGENT)
Background
In the 12 August 2008 announcement, the Company reported that “The GCO campaign comprised a total of 49 RC holes for a total
of 4,090 metres drilled beneath and adjacent to the historical Sunny Corner mine which is reported to have produced 210,000 tons
@ 13.8 ounces of silver per ton for 2.9 million ounces of silver between 1881 and 1893”.
On 12 August 2008 Argent announced a maiden Mineral Resource at Sunny Corner. The resource estimates were completed by
H&S Consultants Pty Ltd (H&SC) and were reported using a cut-off grade of 2.5% combined base metals (copper, lead & zinc) based
on data derived from Golden Cross Operations Pty Ltd’s (GCO) 2004 drilling campaign, and excludes results from the Company’s
three hole RC drilling campaign in June 2007 for a total of 340 metres (Three RC Holes). The Exploration Results were compiled by
Dr Vladimir David.
In April 2009 Argent announced its completion of a 5 hole HQ diamond hole drilling campaign at Sunny Corner. The vertical
holes were drilled for metallurgical testwork purposes, over a 100 metre north-south strike length for a total of 279.75 metres
(Metallurgical Holes).
In September 2013, H&SC was engaged by Argent to review the potential impact of the Metallurgical Holes on the Sunny Corner
resource statement announced in August 2008, for reporting as at 30 June 2013. The review concluded that the data from the
Metallurgical Holes were unlikely to have a material impact on the existing resource estimate.
Sunny Corner Mineral Resource Statement - 30 June 2019
The following table sets out the Sunny Corner Mineral Resource statement as at 30 June 2019. This information was prepared and
fi rst disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the
information has not materially changed since it was last reported.
PAGE 60 | ARGENT MINERALS LIMITED
MINERAL RESOURCES AND ORE RESERVES STATEMENT
At a combined base metals (cbm) cut-off grade of 2.5%:
Table 7 - Sunny Corner Mineral Resource Estimate - 30 June 2019
Resource
Tonnes
(Mt)
Density
Inferred
1.5
2.8
cbm
(%)
6.2
Au
(g/t)
0.17
Pb
(%)
Zn
(%)
CU
(%)
2.13
3.70
0.39
Ag
(g/t)
24
for contained metal as:
55,000 tonnes of zinc;
32,000 tonnes of lead;
5,800 tonnes of copper; and
1.2 million ounces of silver.
Note 1 - Qualifi cation
No account has been made for any historical production or mine development; and
The data from the Three RC Holes from within the resource and the Metallurgical Holes, have not been included in any resource
estimate. However, H&SC believes that they would have a minor impact on the resource estimate fi gures and spatial location
of grades.
Note 2 - Comparison with Previous Mineral Resource Estimate
There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously stated
as at 30 June 2018. Accordingly, no comparison is provided.
Note 3 - Annual Review
The Company has engaged H&SC to complete the annual review of Mineral Resources and Ore Reserves for the Sunny Corner
deposit for reporting as at 30 June 2019. H&SC is an independent Mineral Resources estimation consulting practice located in
Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and internal controls with
respect to the estimation of Mineral Resources.
JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results for the Sunny Corner Deposit is based on information compiled
by Dr. Vladimir David, who is a member of the Australian Institute of Geoscientists, a consultant to Argent, and who has suffi cient
experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to
qualify as a Competent Person as defi ned in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Dr. David consents to the inclusion in the report of the matters based on his information in the form
and context in which it appears.
The data in this report that relates to Mineral Resources for the Sunny Corner Deposit is based on information evaluated by
Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has suffi cient experience
relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as
a Competent Person as defi ned in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion of the
estimates in the report of the Mineral Resource in the form and context in which they appear.
RINGVILLE AND QUEENSBERRY (TAS, AUSTRALIA - 100% ARGENT)
Background
On 29 January 2018 Argent announced pre-JORC Code historical mineralisation estimates for the Company’s newly acquired
Ringville and Queensberry tenements in Tasmania (Historical Estimates). The following summaries are provided in accordance with
ASX Listing Rule 5.14 in relation to progress made by Argent in evaluating the Historical Estimates, and the status of further evaluation
and/or exploration work required to verify the Historical Estimates and report as Mineral Resources in accordance with the JORC
Code 2012 Edition.
Salmons and Pieman Lodes – Ringville tenement
The Salmons and Pieman Historical Estimates (being separate veins of the same deposit) were based on the drilling results for
50 drillholes totalling 18,308.4 metres; assays were attained using atomic absorption spectroscopy (AAS) for Cu, Pb, Zn, Ag, As,
Hg and Mn, fi re assay with AAS fi nish for Au, and X-ray fl uorescence (XRF) for Sn; 265 samples were used for specifi c gravity
determination.
Annual Report to Shareholders | 61
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Work conducted during the year included selective sampling of the main mineralised lode in representative drillholes and assay
of samples using the 4-acid ICPMS assay method. Assay results were comparable to historic reported assays. It is intended to
confi rm the location of the mineralised lodes through geological mapping and physical drilling as a next step to advance the historical
estimates to JORC 2012 status. These activities will continue into the 2019/20 fi nancial year.
Godkin deposit – Ringville Tenement
Historical information on which the Godkin Historical Estimate is based comprises 4 drillholes totalling 978.4 metres with full assay
results not reported, only highlighted intersections for Sn, Cu, and As. Little further work has been conducted during the 2018/19
year due to prioritisation of the Salmons area. This is intended to remain the case for the 2019/20 year.
Queensberry Mine deposit
Hyperspectral studies were conducted by Mineral Resources Tasmania (MRT) on drillholes
LCD01 and LCD04 in the previous year and results were assessed during the 2018/19 year. Further work will include regional and
local mapping to locate all outcrops of mineralisation followed by a series of stream sediment and soil sampling programs to identify
any further potential mineralisation in the area during the 2019/20 year
PRE-JORC CODE HISTORICAL MINERALISATION ESTIMATES - COMPETENT PERSON STATEMENT
The information in this report that relates to Exploration Results and the reporting of pre-JORC Code historical mineralisation
estimates is based on information compiled by Mr. Clifton Todd McGilvray who is a member of the Australasian Institute of Mining
and Metallurgy, an employee of Argent Minerals, and who has suffi cient experience relevant to the style of mineralisation and type of
deposit under consideration and to the activities being undertaken to qualify as a Competent Person as defi ned in the 2012 Edition of
the ‘Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code).
Mr. McGilvray consents to the inclusion in this report of the matters based on the information in the form and context in which it
appears, and confi rms that the information provided in this announcement under ASX Listing Rule 5.14 is an accurate representation
of the progress made by Argent in evaluating the Historical Estimates, and the status of further evaluation and/or exploration work
required to verify the Historical Estimates and report as Mineral Resources in accordance with the JORC Code 2012 Edition.
GOVERNANCE ARRANGEMENTS
Argent’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration and
mining industry who monitor all exploration programmes and oversee the preparation of reports on behalf of the Company by
independent consultants. The exploration data is produced by or under the direct supervision of qualifi ed geoscientists. In the case
of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The Company uses
only accredited laboratories for analysis of samples and records the information in electronic databases that are automatically backed
up for storage and retrieval.
DISCLAIMER
Certain statements contained in this report, including information as to the future fi nancial or operating performance of Argent and its
projects, are forward-looking statements that:
May include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves
and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital
expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social
and other conditions;
Are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Argent, are inherently
subject to signifi cant technical, business, economic, competitive, political and social uncertainties and contingencies; and,
Involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or
anticipated events or results refl ected in such forward-looking statements.
Argent disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information,
future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’,
‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward-looking statements.
All forward-looking statements made in this report are qualifi ed by the foregoing cautionary statements. Investors are cautioned that
forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue
reliance on forward-looking statements due to the inherent uncertainty therein.
PAGE 62 | ARGENT MINERALS LIMITED
CORPORATE DIRECTORY
Directors
Peter Wall – Non-Executive Chairman
Emmanuel Correia – Non-Executive Director
Peter Michael – Non-Executive Director
Tim Hronsky – Non-Executive Director
CEO
David Busch
Company Secretary
Vinod Manikandan
Emmanuel Correia
Registered Offi ce
Level 2, 66 Hunter Street
SYDNEY NSW 2000
Phone: 61-2 9300 3390
Fax: 61-2 9221 6333
E-mail: admin@argentminerals.com.au
Website: https://argentminerals.com.au
Principal Place of Business
Suite 128, Level 1
117 Old Pittwater Road
BROOKVALE NSW 2100
Phone: 61-2 9300 3390
Fax: 61-2 9221 6333
E-mail: admin@argentminerals.com.au
Share Registrar
Computershare Investor Services Pty Limited
Level 3, 60 Carrington Street
SYDNEY NSW 2000
Phone: 1300 850 505
Fax: +61 3 9473 2500
Auditors
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71 Eagle Street
BRISBANE QLD 4000
Home Exchange
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PERTH WA 6000
Solicitors
Steinepreis Paganin
Argent Minerals Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.
https://argentminerals.com.au/
https://argentminerals.com.au/