ARGENT MINERALS LIMITED
A.B.N. 89 124 780 276
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2020
TABLE OF CONTENTS
OPERATIONS REVIEW ............................................................................................................. 1
CORPORATE GOVERNANCE STATEMENT ............................................................................ 8
DIRECTORS’ REPORT .............................................................................................................. 9
LEAD AUDITOR’S INDEPENDENCE DECLARATION ............................................................. 21
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME ................................................................................................................................... 22
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................... 23
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................... 24
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................. 25
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................. 26
DIRECTORS' DECLARATION ................................................................................................. 56
INDEPENDENT AUDITOR’S REPORT .................................................................................... 57
ADDITIONAL STOCK EXCHANGE INFORMATION ................................................................ 62
SCHEDULE OF MINERAL TENEMENTS................................................................................. 65
MINERAL RESOURCES AND ORE RESERVES STATEMENT .............................................. 67
CORPORATE DIRECTORY ..................................................................................................... 75
ARGENT MINERALS LIMITED
Operation Review
Argent Minerals Limited (‘Argent’ or the ‘Company’) has concluded the 2020 financial year with drilling at
Kempfield and the advancement of the West Wyalong Porphyry, Pine Ridge Gold Mine and commenced its
divestment of the Sunny Corner project.
Highlights of this year include:
EXPLORATION
Kempfield
■
3,000m drilling programme commenced on the Kempfield project covering four strategic zones
Pine Ridge Gold Mine
■
■
Award of $55,000 NSW drilling grants
Geophysical survey completed over the historic Pine Ridge Gold Mine covering the entire tenement.
o Silver Mines Limited and Alkane Resources Limited completed their independent geophysical survey
over adjoining tenements sharing costs with Argent.
■
Pine Ridge project drilling programme
o NSW Government Resources Regulator approval received for the extension infill RC drilling programme
over the Pine Ridge Gold Mine.
o Drill targets review pending imminent geophysical survey report.
West Wyalong
■
■
Award of $200,000 NSW drilling grants
Geophysical survey completed over 22.5 km2.
o Six new targets identified.
o West Wyalong porphyry copper - gold project drilling programme approval process underway.
Sunny Corner
■
Sunny Corner project sale agreement in progress.
CORPORATE
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■
$3.051M before costs raised through two private placements. A third placement for $2.2M before costs was
completed after the end of financial year.
Conversion of New $0.025 options listed under ASX ticker ARDOB.
Appointment of George Karageorge as the new Managing Director/CEO.
Appointment of Stuart Till as Non-executive Director
AusIndustry Internal Independent Review and Administrative Appeals Tribunal on 2015/16 and 2016/17
R&D tax incentive claims finalises agreement with Argent
Cash position $1.96M
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ARGENT MINERALS LIMITED
Operation Review
Exploration
KEMPFIELD PROJECT
KEMPFIELD PROJECT DRILLING PROGRAMME
Following the March 2020 field activity, Argent commenced a 3,000 metre RC drilling program targeting
the highly prospective Au-Cu footwall area to the west and reconnaissance drilling north and east of the
existing Ag-Pb-Zn resource. The four strategic zones are:
• Gold-copper footwall (reconnaissance zones) targeting the anomaly defined in March 2020 from
rock chip sampling combined with historical soil sampling across strike from the polymetallic
deposit.
• Higher-grade Ag-Pb-Zn-Ba Henry zone mineralisation in the north targeting extensions to the
•
•
current resource
Ag-Pb-Zn mineralisation within the main Kempfield project area targeting infill and extension drilling
to increase the current resource
Silver and barite mineralization identified along strike from rock chip sampling and historical
reconnaissance drill holes open to the north and south of the current JORC compliant resource.
Difficult weather has significantly delayed drilling which is ongoing.
PINE RIDGE GOLD MINE
GEOPHYSICAL SURVEY PINE RIDGE GOLD MINE COMPLETED
Argent completed the airborne magnetic and radiometric geophysical survey over the historic Pine Ridge
Gold Mine on 8 December 2019.
The historical Pine Ridge Gold Mine lies within EL8213, located 80km south of Orange in New South Wales,
and within 10km of the Argent Minerals Limited Kempfield Polymetallic Deposit.
The Pine Ridge area consists of numerous historical gold mines which operated from the 1820’s until the
1940’s and produced grades in excess of 250g/t Au (NSW Government reports). Recent diamond drilling
conducted by Argent confirmed the position and tenor of gold mineralisation that was reported in historic
drill intersections including 19m @ 3.2g/t Au from 98.4mand 1m @ 40.7 g/t Au from 106m in APDD031.
The Heli-borne geophysical survey flew approximately 645-line kilometres across the entire tenement area
of EL8213 (Pine Ridge) at a line spacing of 100m and 30m height. The raw survey data collected is being
processed and interpreted by an external geophysical consultant which will assist in definition of infill and
extension targets for the Phase 2 RC Drilling Programme.
GEOPHYSICAL SURVEY SHARED COST AND ADJOINING TENEMENT HOLDERS
In early November 2019, Argent together with Silver Mines Limited and Alkane Resources agreed to share
mobilisation and associated operating costs to jointly save expenditure for the survey.
Initial discussions have commenced with Silver Mines Limited to share data sets once both companies
receive their independent Geophysical Reports. Silver Mines Limited is the adjoining tenement holder of
the Tuena Project (gold-silver) EL8526.
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ARGENT MINERALS LIMITED
Operation Review
NSW REGULATORY APPROVAL PINE RIDGE DRILLING PROGRAMME
On 6 December 2019, the NSW Department of Planning, Industry & Environment notified Argent that it had
approved the Phase 2 RC Drill Programme over the Pine Ridge Gold Mine. Argent will design upgraded
drill targets and prepare drill pads for commencement of the Phase 2 RC Drilling Programme after review
of the recently processed geophysical data.
LOCH LILLY PROJECT
The NSW Government awarded Argent $55,000 towards direct drilling costs on the Loch Lilly Project. Land
access agreements are progressing and reconnaissance drilling on geophysical targets is planned for 2021.
This will be provided for future drilling and will be received in-line with amounts expended.
WEST WYALONG PROJECT
WEST WYALONG PORPHYRY GOLD COPPER MOLYBDENUM UPDATE
On 26 August 2019, Argent announced the results of geophysical exploration activities performed by the
Company at its majority-owned (78%) West Wyalong exploration Porphyry Cu-Au-Mo Project in central
NSW.
Argent identified six new drill targets through a 22.5 km2, 2,200 station ground gravity geophysical survey
and subsequent 3D inversion modelling by combining the Company’s substantial data base on the project.
The database includes results from the Company’s 2017 drilling programme, the 2014 high resolution
airborne magnetic survey, extensive basement geochemical data and historical induced polarisation (IP)
survey data.
The most recent drill programme design was completed late in December 2019 for the proposed West
Wyalong Discovery Drilling Programme at target areas Hyperion, Theia and Narragudgil.
Argent has reviewed all data on hand implementing a target rationale generated by the 3D inversion
modelling. An assessment matrix method was used assessing the copper, gold, molybdenum, magnetic
gravity intensity, chargeability and alteration mineralogical data on hand to generate the upgraded targets.
The NSW Government also awarded Argent $200,000 for funding for drilling the West Wyalong Cu-Au-Mo
porphyry project. This will be provided for future drilling and will be received in-line with amounts expended.
SUNNY CORNER PROJECT
SUNNY CORNER SILVER MINE SALE AGREEMENT
The Company announced the sale of the historic Sunny Corner Silver Mine on Exploration Licence 5964
to Sunshine Reclamation Pty Ltd (SRP).
The Company and SRP entered into a binding agreement where SRP will pay Argent $540,000 in
instalments by 17 October 2020 as below.
a.
A non-refundable payment of $30,000 (initial deposit) on execution of the binding term sheet
(which has been paid). Argent then paid this deposit to Golden Cross Operations (GCO) to
dissolve the original JV between GCO and Argent and for GCO to transfer its 30% legal and
beneficial interest in Exploration Licence 5964 into Sunny Silver Pty Ltd.
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ARGENT MINERALS LIMITED
Operation Review
b.
c.
A non-refundable payment of $110,000 (commitment payment) (which
the parties
acknowledge includes $10,000 as reimbursement of cash security with the regulator), This
payment shall be the means by which SRP shall communicate its election to complete this
transaction and;
A subsequent and non-refundable payment $400,000 to Argent’s nominated bank account
(Final Payment) as a remaining obligation of SRP falling due and payable by 17 October 2020.
The Commitment Payment was paid by SRP to Argent on 17 December 2019 and Argent is in the process
of transferring the remaining 70% interest in the Exploration licence 5964 to Sunny Silver Pty Ltd. Argent
will register a security on the Personal Property Security Register (PPSR) and with the Regulator (Security
Registration) before the legal and beneficial interest in Sunny Silver Pty Ltd is transferred from Argent to
SRP. Argent will be free carried for any current and planned expenditure by SRP.
Upon receiving the final payment, Argent shall do all things necessary to discharge both the security interest
created by Security Deed and Security Registration. If SRP does not make the Final Payment by 17 October
2020, Argent will then take ownership of 100% interest in Sunny Silver Pty Ltd and in turn will own 100%
of Exploration Licence 5964.
ABOUT SUNSHINE RECLAMATION PTY LTD AND ARGENT
Sunshine Reclamation Pty Ltd is a mine reclamation and rehabilitation group specialising in complex
environmental and metallurgical problems. The main Sunny Corner mine is a contaminated site with
significant acid mine drainage and metal contamination issues. It has a mining history going back almost
150 years and has been classified as a derelict mine site under the Mining Act 1992.
Sunshine Reclamation plans to process the contaminated waste from the site and ameliorate the acid mine
drainage as part of its site reclamation.
The Sunny Corner project has a small resource compared to the Company’s Kempfield Silver Project (which
is more than 20 times larger) and the Kempfield deposit has less complicated metallurgy with no legacy
issues. The West Wyalong and Pine Ridge projects offer potential significant upside and Sunny Corner was
considered a lower priority project. The opportunity to divest this project for a significant sum is opportune
and provides additional capital to commit towards Argent’s core projects.
As SRP is not an exploration or mining company, potential future collaboration exists for Argent and SRP
regarding exploration targets within the exploration licence or to re-acquire the project once reclamation
has been undertaken. This deal allows Argent to participate in improving the environment and addressing
our industry’s historic legacies while keeping the Company’s options open for future exploration and realise
capital during this important time for the Company.
CORPORATE
PRIVATE PLACEMENTS RAISE $3.051 MILLION
During the year Argent completed two private placements which raised approximately $3.051M before costs
• On 25 October 2019, Argent completed a private placement offer to sophisticated investors that
raised $1,901,350 before costs through the issue of 90,540,475 new fully paid ordinary shares were
issued at $0.021 cents per share, 22,635,119 attaching listed options (ASX: ARDOA) on a 1:4 basis
and 90,540,475 new attaching listed options on a 1:1 basis (ASX: ARDOB).
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ARGENT MINERALS LIMITED
Operation Review
• On 25 May 2020, Argent completed a private placement offer to sophisticated investors that raised
$1,150,000 before costs through the issue of 95,833,335 fully paid ordinary shares at $0.012 per
share. In conjunction with this, the Argent Board applied for 12,500,001 fully paid ordinary shares
issued at the same price to raise a further $150,000, which was approved by shareholders
subsequent to year end.
Subsequent to the end of the year, Argent completed a private placement to sophisticated and professional
investors which raised $2,200,000 before costs through the issue of 40,000,000 fully paid ordinary shares
at $0.055 per share. The placement shares also attracted a 1 for 2 free attaching ARDOA listed option,
each with an exercise price of $0.05 and expiry date of 29 October 2021 (Placement Options), totalling
20,000,000 Options.
CASH POSITION
Argent’s cash position as at 30 June 2020 was $1.96M
APPOINTMENT OF NEW MANAGING DIRECTOR/CEO
On 21 October 2019, the Argent board announced the appointment of George Karageorge as the
Company’s Managing Director and Chief Executive Officer.
George is a geologist and a rare, base and precious metal expert with over 25 years’ experience in the
mining sector. He has worked in senior technical and executive management roles for exploration and
mining companies across the globe including Western Mining Corporation, ASARCO, Anglo Gold Ashanti,
Barrick Mines, and Bluebird Battery Metals.
George is best known for his role as one of the founding geologists and the first registered alternate mine
manager of Pilbara Minerals (ASX: PLS), where he was instrumental in the discovery of the Pilgangoora
Lithium and Tantalum deposits. His role was paramount in developing the project from the first drill hole
through to the first lithium concentrate and he was part of the project team that took the company into
production, helping it grow it into a $1.5 B market cap mining company in less than 4 years.
APPOINTMENT OF NON-EXECUTIVE DIRECTOR
On 6 March 2020, Mr Stuart Till was appointed to the Board of the Company as Non-Executive Director.
Mr. Till is a highly qualified and experienced geologist and holds a Bachelor of Science degree in
Geology from Curtin University. He completed MSc. coursework in Ore Deposit Geology at the
University of WA and he is also a long-term member of the Australasian Institute of Mining and
Metallurgy.
Mr. Till has more than 35 years’ experience as a successful geologist in mineral exploration and
mining for numerous commodities including, but not limited to, precious metals, base metals and
industrial minerals.
In conjunction with Mr Till’s appointment, Mr Tim Hronsky retired from the Board.
AUS INDUSTRY FINDINGS AND THE ADMINISTRATIVE CLAIMS TRIBUNAL
Argent received advice in January 2019 from AusIndustry (as the Delegate of Innovation and Science
Australia) in relation to its review of the R&D Tax Incentive claims made by the Company for the 2015/16
5
ARGENT MINERALS LIMITED
Operation Review
and 2016/17 financial years (R&D Tax Claims), advising that the activities were not eligible for the R&D Tax
Incentive.
Subsequent to this, the Company then requested an internal review of the negative finding. The internal
review was conducted by AusIndustry’s Victorian Branch. The internal review was completed and the
Company was has now entered into a settlement agreement in relation to the 2015/16 and 2016/17 R&D
Tax claims which were identified as not being eligible for the Research and Development Tax Incentive.
The Company is also in the process of finalizing a suitable payment arrangement with the ATO. It is
expected that this will include a payment plan to repay any amounts owing over a reasonable period of
time, to assist the company to preserve its cash and to direct it on ongoing exploration activities.
The Company will provide a further update by way of an ASX announcement once the final settlement
amount and the payment plan has been finalised and agreed.
CHANGE OF COMPANY SECRETARY AND REGISTERED OFFICE
On 16 April 2020, Argent appointed Mr James Bahen as Company Secretary, replacing Mr Vinod
Manikandan who has resigned as Company Secretary.
The Company also advises that the Company’s registered office and principal place of business have
changed, with immediate effect to:
Suite 1, Ground Floor
18 Kings Park Road,
WEST PERTH WA 6005
Postal Address:
PO Box 308
WEST PERTH WA 6872
ARDOB – NEW CLASS OF QUOTED OPTIONS
The new 90,540,475 ARDOB options offered under the Placement on 25 October 2019 were quoted on the
ASX on 30 October 2019 under the ticker code ARDOB.
The ARDOB Options have an exercise price of $0.025 each and are exercisable at any time on or before
5.00 pm (AEST) on 29 October 2020.
COMPETENT PERSON STATEMENTS
PREVIOUSLY RELEASED INFORMATION
This ASX announcement contains information extracted from the following reports which are available for
viewing on the Company's website http://www.argentminerals.com.au
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22 Dec 2015 - Significant intersections at Kempfield including Cu and Au
27 July 2017 - Copper and Gold in West Wyalong Porphyry – Final Assays
26 August 2019 - Compelling West Wyalong Targets Identified
26 August 2019 - Maiden Pine Ridge Results – Significant Intercept Recorded
29 August 2019 - $1.9M Raised by Private Placement
21 October 2019 Appointment of a Managing Director and Appendix 3X
15 November 2019 - Airborne Survey Over Old Pine Ridge Gold Mine
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ARGENT MINERALS LIMITED
Operation Review
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23 December 2019 - Argent AusIndustry Review Findings
6 March 2020 - Board and Management Changes
15 March 2020 - Change of Company Secretary and Registered Office
27 April 2020 - $255K NSW Government Funding Grants Awarded
29 April 2020 - Exploration and Operations Updated
22 May 2020 - Argent Reaches Settlement of Disputed R&D Tax Claim
25 May 2020 - Heavily Oversubscribed Private Placement Advances Drilling
5 June 2020 - Drill Rig Arrives To Argent's Flagship Kempfield Deposit
22 July 2020 - Exploration and Drilling Program Update
12 August 2020 - Heavily Oversubscribed Placement To Fast Track Drilling
Competent Person:
1. Stuart Leslie Till
The Company confirms 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 or Ore
Reserves, Exploration Targets, and historical Pre-JORC Code mineralisation estimates (‘Historical
Estimates’), that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcements continue to apply and have not materially changed. The Company
confirms that the form and context in which the Competent Person’s findings are presented have not been
materially modified from the original market announcement.
7
ARGENT MINERALS LIMITED
Operation Review
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 2020 corporate governance statement is dated as at 30 September 2020 and reflects the corporate
governance practices throughout the 2020 financial year. The 2020 corporate governance was approved
by the Board on 30September 2020. 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.
8
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
DIRECTORS’ REPORT
The names and particulars of the directors of the Company during the financial year and as at the date of
this report are as follows. Directors were in office 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
firm) 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 Master 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 significant experience in dealing in cross border transactions.
During the past three years he has also served on the board of the following listed companies:
Technologies
Company
Minbos Resources Limited
MMJ PhytoTech Limited
MyFiziq Ltd
Transcendence
Limited
Pursuit Minerals Limited
Sky & Space Global Ltd
Bronson Group Limited
Activistic Ltd
Zyber Holdings Limited
Ookami Limited
Date of Appointment
February 2014
August 2014
May 2015
Date of Resignation
Not Applicable
Not Applicable
Not Applicable
October 2015
January 2016
October 2015
June 2017
June 2015
January 2015
October 2015
Not Applicable
Not Applicable
4 December 2018
5 August 2019
February 2018
January 2018
January 2018
George Karageorge BAppSc. Geology, MAusIMM
Managing Director and Chief Executive Officer
Appointed: 21 October 2019
Mr Karageorge is a geologist and is a rare, base and precious metal exploration expert with over 25 years’
experience in the mining sector. He has worked in senior technical and executive management roles for
exploration and mining companies across the globe, including Western Mining Corporation, ASARCO,
Anglo Gold Ashanti, Barrick Mines, Pilbara Minerals and Bluebird Battery Metals.
Mr Karageorge has had multiple management and technical roles as Project Geologist, Project Manager,
and most recently President and Chief Executive Officer of TSX listed company Bluebird Battery Metals.
He has extensive expertise in taking projects from exploration through to development and production
stages.
Mr. Karageorge is best known for his role as the founding geologist and registered mine manager of lithium
producer, Pilbara Minerals Limited (ASX: PLS). He was instrumental in the discovery of the Pilbara Minerals
multi-Billion Dollar Pilgangoora Lithium and Tantalum Deposit. His role was paramount in developing the
project from the first drill hole through to the first Lithium Concentrate, taking the company into production
and growing it into a A$1.5B market cap mining company in less than 4 years.
9
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
In addition to his technical and corporate leadership roles, Mr. Karageorge has occupied the position of
company director for a number of private, public listed and unlisted public companies over the last 30 years.
He holds a Bachelor Degree, BAppSc. (Geology) and is a senior member of the Australasian Institute of
Mining and Metallurgy (AUSIMM).
EMMANUEL CORREIA BBus, CA
Non-Executive Director and Joint Company Secretary
Appointed: 6 December 2017.
Mr Emmanuel Correia has over 25 years’ public company and corporate finance 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/officer 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
firm seeking advisory capabilities in Australia.
Mr Correia has also held various senior positions with Deloitte and other boutique corporate finance 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
Canyon Resources Limited
Orminex Limited
Date of Appointment
July 2016
April 2018
Date of Resignation
Not Applicable
August 2019
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 firm, based in Subiaco, specialising in developing resource exploration companies. He is also
a director of a not for profit group that specialises in delivering exercise programs for people with diabetes
in WA and Vanuatu.
STUART TILL BApp Sc. Geology, MAusIMM
Non-Executive Director
Appointed: 6 March 2020.
Mr Till has more than 35 years’ experience as a successful geologist in mineral exploration and mining for
numerous commodities including, but not limited to, precious metals, base metals and industrial minerals.
For the last 12 years Mr Till has been a consultant and director to numerous companies. He has held roles
as an Exploration Manager with Thor Mining PLC & Consultant Chief Geologist with Tennant Creek Gold,
Davenport Resources, Orion Minerals, Bardoc Gold, and more recently Chief Geologist for Pilbara Minerals
during the DFS resource definition of the world class Pilgangoora Lithium deposit.
10
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
TIM HRONSKY B.Eng (Geology) Mausimm, MSEG
Non-Executive Director
Appointed 6 December 2017.
Resigned 6 March 2020.
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 fields 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
St George Mining Limited
Date of Appointment
November 2009
Date of Resignation
2 January 2019
James Bahen B.Comm, GIA
Joint Company Secretary
Appointed: 16 April 2020
Mr Bahen is a Chartered Secretary with over 5 years company secretary and public company experience.
Mr Bahen has experience in assisting company boards with navigating ASX listing rule requirements in
matters such as acquisitions/disposals and capital raisings. Mr Bahen is a member of the Governance
Institute of Australia and holds a Graduate Diploma of Applied Finance and a Bachelor of Commerce degree
majoring in Accounting and Finance.
VINOD MANIKANDAN B.Comm, CPA, GradDipACG
Joint Company Secretary
Appointed: 4 November 2015.
Resigned: 16 April 2020
11
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
DIRECTORS INTERESTS
At the date of this report, the Directors held the following interests in Argent Minerals.
Name
Peter Wall
Fully Paid
Ordinary Shares
6,563,859
Emmanuel Correia
2,063,860
Peter Michael
2,797,195
Options
666,666
4,000,000
333,333
4,000,000
333,333
4,000,000
Option Terms
(Exercise Price and Term)
$0.05 at any time up to 29 October 2021
$0.031 at any time up to 27 October 2022
$0.05 at any time up to 29 October 2021
$0.031 at any time up to 27 October 2022
$0.05 at any time up to 29 October 2021
$0.031 at any time up to 27 October 2022
Stuart Till
-
George Karageorge
5,535,109
-
-
-
-
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 financial year.
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
97,302,004
16,000,000
90,540,475
$0.03
$0.06
$0.10
$0.05
$0.031
$0.025
30 September 2021
30 September 2021
30 September 2021
29 October 2021
27 October 2022
29 October 2020
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 two months of the date of termination of employment. Any options not exercised within this two 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 of silver, lead, zinc, copper and gold in Australia.
RESULTS AND REVIEW OF OPERATIONS
The results of the consolidated entity for the financial year ended 30 June 2020 is a comprehensive loss
after income tax of $2,185,012 (2019: loss of $3,539,654).
A review of operations of the consolidated entity during the year ended 30 June 2020 is provided in
the ‘Operations Review’.
12
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
LIKELY DEVELOPMENTS
The Group’s focus over the next financial year will be on its key projects, Kempfield, 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 financial year, 8 meetings of directors were held. Attendances by each director during the
year were as follows:
Directors’ Meetings
No. of Eligible Meetings to
Attend
No. of Meetings
Attended
8
8
8
5
3
5
8
8
8
4
3
5
Director
Peter Wall
Emmanuel Correia
Peter Michael
Tim Hronsky
Stuart Till
George Karageorge
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 fixed 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, benefit plans and share plans. Independent advice is obtained when considered necessary
to confirm that executive remuneration is in line with market practice and is reasonable within Australian
executive reward practices.
13
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Remuneration Report - Audited (continued)
▪ 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 profit 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 2020.
Directors/Executives
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Stuart Till
George Karageorge
Position Held as at 30 June 2020
Non-Executive Chairman
CEO – Terminated 19 December 2019
Non-Executive Director/ Joint Company Secretary
Non-Executive Director
Non-Executive Director - Resigned 6 March 2020
Non-Executive Director – Appointed 6 March 2020
Managing Director, CEO – Appointed 2 October 2019
Executive Officer’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 financial year or since the financial year end, a benefit because of a contract made by the
Company or a related body corporate with a director, a firm of which a director is a member or an entity in
which a director has a substantial financial interest. This statement excludes a benefit 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 fixed salary of a
full time employee of the Company.
14
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Remuneration Report - Audited (continued)
Details of remuneration for the year ended 30 June 2020 – 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
and Fees
Termination
Benefits
Super
-annuation
Other Long
Term
Total
Share
Based
Payment
s –
Options
%
of
Remuneration
as Share
Payments
$
$
$
$
$
$
Directors
Peter Wall
2020
2019
Emmanuel
Correia
2020
2019
Peter Michael
2020
2019
Tim Hronsky
2020
2019
Stuart Till
2020
2019
George
Karageorge
2020
2019
CEO
David Busch
2020
2019
43,800
43,800
45,730
43,800
40,000
40,000
29,606
43,800
89,600
-
184,169
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,800
3,800
-
-
-
-
-
-
40,045
-
40,045
-
40,045
-
40,045
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
83,845
43,800
85,775
43,800
83,845
43,800
69,651
43,800
89,600
-
184,169
-
48%
-
47%
-
48%
-
57%
-
-
-
-
-
133,250
263,596
36,923
-
16,166
25,655
-
11,753
-
16,843
186,339
317,847
-
3.69%
15
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Remuneration Report - Audited (continued)
Options Granted as Compensation – Audited
Details of options granted as compensation to each key management person:
Director
Grant Date
Peter Wall
Emmanuel
Correia
Peter
Michael
Tim Hronsky
David Busch
David Busch
David Busch
28 October
2019
28 October
2019
28 October
2019
28 October
2019
2 November
2016
2 November
2016
2 November
2016
Number of
Options
Granted
4,000,000
4,000,000
4,000,000
4,000,000
2,000,000
Vesting Date
Fair Value
at Grant
Date
28 October
2019
28 October
2019
28 October
2019
28 October
2019
2 November
2016
$40,045
$40,045
$40,045
$40,045
$41,982
2,000,000
31 December
2017
$37,417
3,000,000
31 December
2018
$50,397
Option Terms
(Exercise Price and
Term)
$0.031 at any time to 27
October 2022
$0.031 at any time to 27
October 2022
$0.031 at any time to 27
October 2022
$0.031 at any time to 27
October 2022
$0.03 at any time to 30
September 2021.
$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. Refer to note
23 for further details on the inputs used. David Busch options were vesting based on a continued service
arrangement with the company.
16,000,000 Options were granted as compensation during 2020 under the employee option plan, which
was approved at the 2019 Annual General Meeting and none in 2019 financial year. The number of options
that vested during the year ended 30 June 2020 is 16,000,000 (2019 – 3,000,000).
Other transactions and balances with Key Management Personnel
•
•
During the year ended 30 June 2020, Peter Wall had a beneficial interest in an entity, Steinepreis
Paganin Lawyers & Consultants, which provided legal consulting services. Fees paid to Steinepreis
Paganin Lawyers & Consultants amounted to $45,209 (2019 - $34,008). A balance of $nil remained
outstanding at 30 June 2020 in relation to these services (2019 - $3,000).
During the year ended 30 June 2020, Tim Hronsky had provided consulting services to the value of
$14,000 (2019: $Nil). A balance of $nil remained outstanding at 30 June 2020 in relation to these
services (2019 - $Nil).
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 a consultancy agreement with Mr George Karageorge whereby Mr
Karageorge receives remuneration of $242,000 per annum (exclusive of GST). The agreement may be
terminated subject to a 3-month notice period.
16
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Remuneration Report - Audited (continued)
The Company has entered into a consultancy agreement with Mr Stuart Till whereby Mr Till receives
remuneration of $43,800 per annum (exclusive of GST). In addition, Mr Till can receive an additional service
fee of A$1,000 per day for a maximum 150 days per annum. Any additional days over 150 days per annum
requires approval from the board. The agreement may be terminated subject to a 3-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
Stuart Till
George Karageorge
Directors and other key
management personnel
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Balance at 1 July
2019
(i)
1,333,333
9,619,383
666,667
1,420,001
380,000
-
-
Balance at 1 July
2018
(i)
-
5,866,751
-
753,334
180,000
Net other change
(ii)
-
-
-
-
1,000,000
-
-
Net other change
(ii)
1,333,333
3,752,632
666,667
666,667
200,000
Balance at 30 June
2020
(iii)
1,333,333
9,619,383
666,667
1,420,001
1,380,000
-
-
Balance at 30 June
2019
(iii)
1,333,333
9,619,383
666,667
1,420,001
380,000
Balance at the beginning of the financial year or at the date of appointment.
(i)
(ii) On market transactions for cash consideration.
(iii) Balance at the end of the financial year or at the date of retirement.
No remuneration shares were issued or options exercised during the financial years ended 30 June 2020 and 30 June
2019.
Option holdings of key management personnel
Directors and other
key management
personnel
Balance at
1 July 2019
Peter Wall
David Busch
Emmanuel Correia
Peter Michael
Tim Hronsky
Stuart Till
George Karageorge
(i)
666,666
9,402,632
333,333
333,333
100,000
-
-
Issued during the
period
Expired during
the period
4,000,000
-
4,000,000
4,000,000
4,000,000
-
-
-
(7,000,000)
-
-
-
-
-
Balance at
30 June 2020
(vested and
exercisable)
(ii)
4,666,666
2,402,632
4,333,333
4,333,333
4,100,000
-
-
17
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Remuneration Report - Audited (continued)
Option holdings 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
(i)
-
11,784,933
-
666,668
-
Issued during the
period
Expired during
the period
666,666
2,402,632
333,333
333,333
100,000
-
4,784,933
-
666,668
-
Balance at
30 June 2019
(vested and
exercisable)
(ii)
666,666
9,402,632
333,333
333,333
100,000
Balance at the beginning of the financial year or at date of appointment.
(i)
(ii) Balance at the end of the financial year or at date of retirement.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholders’ wealth, the Board has regard to the
following indices in respect of the current financial year and the previous four financial years.
Net loss attributable to equity
holders of the Company
Dividends paid
$2,185,012
-
$3,539,654
-
$1,712,330
-
$2,120,074
-
$2,115,199
-
2020
2019
2018
2017
2016
Change in share price
1.4 cents
(0.9) cents
(1.1) cents
0.2 cents
0.6 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 financial performance of the Company.
End of Remuneration Report.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer
or agent of the Company shall be indemnified out of the property of the entity against any liability incurred
by him or her in their capacity as officer 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 24 July 2020, the Company held a general meeting with all resolutions passed. Resolutions passed are
summarised as follows:
• Ratification of prior issue of shares being 95,833,335 at an issue price of $0.012 per share to raise
•
•
$1,300,000.
Issue of 12,500,001 ordinary shares to related party being Peter Wall, George Karageorge, Peter
Michael and Emmanuel Correia to participate in the placement announced in May 2020.
Issue shares to Peter Wall, George Karageorge, Peter Michael, Emmanuel Correia in lieu of fees.
$48,450 of outstanding fees to be settled via 2,040,021 at a 5-day VWAP of $0.02375.
• Ratification of prior issue of shares exploration manager of $40,000 shares at a deemed issue price
of $0.01582.
18
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
Events subsequent to balance date (Cont.)
On 12, August 2020, the Company announced and shortly completed thereafter, a private placement to
sophisticated investors, raising $2.2 million. The maximum number of new securities that will be issued
under the offer is 40,000,000 new fully paid ordinary shares at an issue price of 5.5 cents per share
(Placement Shares), 20,000,000 attaching listed ASX: ARDOA (ARDOA Placement Options) on a 1:2
basis. Subsequent to year end, 25,611,257 listed options have been exercised, which has resulted in raising
up to $640,552 before cost.
Except for the above, no other matters or circumstances have arisen since the end of the financial year
which significantly affected or could significantly affect the operations of the consolidated entity, the results
of those operations, or the state of the affairs of the consolidated entity in future financial 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.
19
ARGENT MINERALS LIMITED
DIRECTORS’ REPORT
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 financial reports - KPMG
2020
$
2019
$
57,000
55,250
Lead Auditor’s Independence Declaration
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 2020.
This report has been signed in accordance with a resolution of the directors and is dated 30 September
2020.
Peter Wall
Chairman
20
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 2020 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
30 September 2020
21
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
ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Continuing operations
Research & Development Claim –
(expense)/income
Other Income
Notes
2020
$
2019
$
6
6
-
(1,402,997)
11,245
-
Administration and consultants' expenses
Depreciation
Employee and director expenses
Exploration and evaluation expenses
14,15
7
(812,115)
(50,078)
(546,741)
(794,216)
(638,353)
(45,481)
(284,430)
(1,183,603)
Operating loss before financing income
(2,191,905)
(3,554,864)
Interest income
Interest expense
Net financing income
Loss before tax
Income tax expense
Loss for the year
Other comprehensive income
7,806
(913)
6,893
15,210
-
15,210
(2,185,012)
(3,539,654)
10
-
-
(2,185,012)
(3,539,654)
-
-
Total comprehensive loss for the year
(2,185,012)
(3,539,654)
Basic and diluted loss per share (cents)
8
(0.36) cents
(0.72) cents
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the accompanying notes.
22
ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Notes
2020
$
2019
$
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Asset licence held for sale
Total current assets
Non-current assets
Other financial asset – security deposits
Plant and equipment
Right of use asset
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee entitlements
Lease liabilities
R&D claims repayable
Total current liabilities
Non-current liabilities
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
9
11
12
13
14
15
17
18
16
22
16
19
19
1,956,724
8,751
10,090
39,000
725,933
19,562
22,904
-
2,014,565
768,399
96,000
318,477
40,216
454,693
2,469,258
483,227
6,884
14,124
1,428,050
1,932,285
26,353
26,353
93,100
362,707
-
455,807
1,224,206
101,542
104,746
-
1,395,276
1,601,564
-
-
1,958,638
1,601,564
510,620
(377,358)
33,368,098
30,462,609
249,220
211,515
(33,106,698)
(31,051,482)
510,620
(377,358)
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
23
ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Notes
Issued
Capital
Reserves
Accumulated
Losses
Total
$
$
$
$
30,462,609
211,515
(31,051,482)
(377,358)
Attributable to equity holders of
the Company
Balance at 1 July 2019
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
Cost of shares issued
Share based payments
Expiry of options
Balance at 1 July 2018
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
Cost of shares issued
Share based payments
Exercise of options
Expiry of options
Ordinary shares/options issued
19
3,051,350
(185,861)
40,000
167,501
-
(129,796)
129,796
-
Balance at 30 June 2020
33,368,098
249,220
(33,106,698)
510,620
29,274,380
193,529
(27,530,820)
1,937,089
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,185,012)
(2,185,012)
-
-
(2,185,012)
(2,185,012)
-
-
-
3,051,350
(185,861)
207,501
(3,539,654)
(3,539,654)
-
-
(3,539,654)
(3,539,654)
-
-
1,268,939
(80,983)
-
-
18,992
36,978
273
-
Ordinary shares/options issued
19
1,268,939
(80,983)
-
273
-
36,978
-
(18,992)
Balance at 30 June 2019
30,462,609
211,515
(31,051,482)
(377,358)
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
24
ARGENT MINERALS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flows used in operating activities
Cash receipts in the course of operations
Government Subsidy
Notes
2020
$
-
11,245
2019
$
-
-
Exploration and evaluation expenditure
(616,054)
(1,165,086)
Cash payments in the course of operations
(1,119,295)
(941,578)
Interest received
7,806
15,210
Net cash used in operating activities
20
(1,716,298)
(2,091,454)
Cash flows used in investing activities
Acquisition of Sunny Corner Asset License
Proceeds from Sunny Corner Divestment
Payments for plant and equipment
(Payments)/receipts for security deposits
Net cash from/(used) in investing activities
Cash flows from financing activities
(39,000)
130,000
-
(2,900)
88,100
-
-
(10,308)
(10,000)
(20,308)
Proceeds from issue of shares and options
3,051,350
1,269,212
Lease payments
Cost of issue of shares and options
Net cash from financing activities
Net increase/(decrease) in cash held
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
9
(6,500)
(185,861)
2,858,989
1,230,791
725,933
1,956,724
-
(80,983)
1,188,229
(923,533)
1,649,466
725,933
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying
notes.
25
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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 office is at Suite 1, 18 Kings Park Road, West Perth, WA 6005. The consolidated financial
statements of the Company as at and for the year ended 30 June 2020 comprise the Company and its
subsidiaries (together referred to as the 'Group'). The Group is a for-profit 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 financial statements are general purpose financial 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 financial statements comply with
the International Financial Reporting Standards ('IFRSs') adopted by the International Accounting Standards
Board ('IASB').
The consolidated financial statements were authorised for issue by the directors on 30 September 2020.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis.
(c) Functional and presentation currency
These consolidated financial statements are presented in Australian dollars, which is the Group’s functional
currency.
(d) Use of estimates and judgements
The preparation of the consolidated financial 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 significant areas of estimation uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the financial
statements are described in the following notes:
•
•
•
•
Note 2(e)
10
Note
23
Note
22
Note
- Going concern
-
-
-
Unrecognised deferred tax asset
Share based payments
R&D claims payable
The Group has incorporated judgements, estimates and assumptions specific to the impact of the COVID-
19 pandemic in determining the amounts recognised in the financial statements based on conditions existing
at balance date, recognising uncertainty still exists in relation to the duration of the COVID-19 pandemic-
related restrictions, the anticipated government stimulus and regulatory actions.
26
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2
BASIS OF PREPARATION (Cont.)
(e) Going concern
The financial 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 $2,185,012 for the year ended
30 June 2020 and has accumulated losses of $33,106,698 at 30 June 2020. The Group has cash and cash
equivalents of $1,956,724 at 30 June 2020 and used $1,716,298 of cash in operations, including payments
for exploration and evaluation, for the year ended 30 June 2020.
On 12 August 2020, the Company announced and shortly completed thereafter a private placement to
sophisticated investors, raising $2.2 million before costs. Subsequent to year end, 25,611,257 listed options
have been exercised, which has resulted in raising up to $640,552 before cost.
As outlined in note 22, the Group is under a payment plan with the Australian Taxation Office (‘ATO’) whereby
the Company continues to make monthly payments of $5,000 until an outcome is reached with the ATO on
the amount payable and revised payment plan reviewed with respect to its R&D claims. The Company will
need to assess how payment can be made within the shortest possible timeframe whilst taking into its
account its financial position.
The directors have prepared cash flow projections up until 12 months from the date of this report that support
the ability of the Group to continue as a going concern. These cash flow projections are prepared on the
basis that the Group achieves a positive outcome from the negotiations with the ATO on a repayment plan
in line with the current arrangements, and significant and active E&E expenditure continues on the Group’s
areas of interest.
These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability
to continue as a going concern. The ongoing operation of the Group is dependent upon the Group negotiating
a repayment plan with the ATO to settle the outstanding R&D liability over an extended period of time. Should
this not be achieved the Group will need to raise additional funding from existing option holders or other
parties and/or the Group reduce expenditures to be in-line with available funding.
In the event that the Group does not successfully negotiate a favourable repayment plan with the ATO upon
settlement of the outstanding matters, or reduce expenditure in line with available funding, 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 financial
statements.
3 SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by all entities in the Group with the
exception of the new accounting policies for new standards.
(a) Finance income and finance costs
Finance income comprises interest income on funds invested, dividend income and gains on the disposal of
financial assets. Interest income is recognised as it accrues in profit or loss, using the effective interest
method. Dividend income is recognised in profit 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 financial assets and
impairment losses recognised on financial assets. Borrowing costs that are not directly attributable to the
acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective
interest method.
27
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(b) 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 reclassified to development
costs.
(c) 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 fixed 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 fixed asset
Depreciation rates
Depreciation basis
Buildings
7.50%
Straight-Line
Plant and equipment
5% to 37.5%
Straight-Line
(d) 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.
(e) Financial instruments
Non-derivative financial assets
Recognition and initial measurement
The Company initially recognises trade receivables on the date that they are originated. All other financial
assets are recognised initially on the trade date at which the Company becomes a party to the contractual
provisions of the instrument.
28
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3 Significant accounting policies (Cont.)
(f) Financial instruments (Cont.)
Non-derivative financial assets (Cont.)
Recognition and initial measurement (Cont.)
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in
which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest
in such transferred financial 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 financial 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.
Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at:
- Amortised cost;
- Fair value through other comprehensive income (FVOCI) – equity investment; or
- Fair value through profit or loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its
business model for managing financial assets, in which case all affected financial assets are reclassified on
the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both the following conditions and is not designated
as fair value through profit or loss:
-
-
It is held within a business model whose objective is to hold assets to collect contractual cash flows;
and
Its contractual terms give rise on specified dates to cash flows 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 financial assets not classified as measured at amortised cost or fair value through other comprehensive
income as described above are measured at fair value through profit or loss. This includes all derivative
financial assets. On initial recognition, the Company may irrevocably designate a financial 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 profit or loss if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.
29
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3 Significant accounting policies (Cont.)
(f) Financial instruments (Cont.)
Non-derivative financial assets (Cont.)
Subsequent measurement and gains and losses
Financial assets at
amortised cost
Equity instruments at
FVOCI
Financial assets at
FVPTL
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
profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
These assets are subsequently measured at fair value. Dividends are
recognised as income in profit 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 reclassified to profit
or loss.
These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in profit or loss.
Non-derivative financial 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 financial 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 financial liability when its contractual obligations are discharged, cancelled or
expire.
Other financial liabilities comprise loans and borrowings and trade and other payables.
Share capital
Ordinary shares
Ordinary shares are classified 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 financial statements of subsidiaries are included in the consolidated financial
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 profit or loss and net assets in subsidiaries not held by the
Group and are presented separately in the Statement of Profit 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 deficit 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 reflect their relative interests
in the subsidiary.
30
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)
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 deficit arising on the loss
of control is recognised in profit 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 a financial asset depending on the level of influence
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 financial statements.
(h) Tax
Current tax and deferred tax is recognised in profit 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 financial 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 profit 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 reflects 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 profits 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 benefit will be realised.
31
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(i) Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three
months or less.
(k) Impairment
Financial instruments
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 financial instrument) has not increased significantly 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 financial assets carried at amortised cost
and debt securities at fair value through other comprehensive income are credit-impaired.
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof.
Financial assets measured at amortised cost
Individually significant financial assets are tested for impairment on an individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the
original effective interest rate. Losses are recognised within profit 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 profit or loss.
Non-financial assets
The carrying amounts of the Group's non-financial 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 indefinite 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 flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset or CGU. For impairment testing, assets are grouped together
into the smallest group of assets that generates cash inflows from continuing use that are largely independent
of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit 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.
32
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
3
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
(l) 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 office expenses, and income tax assets and liabilities.
(m) Employee benefits
Short-term employee benefits
Short-term employee benefit 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 reflect 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
reflect such conditions and there is no true-up for differences between expected and actual outcomes.
(n) 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 outflow of economic benefits will be
required to settle the obligation. Provisions are determined by discounting the expected future cash flows at
a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as a finance 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.
(o) 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 2019 and have not been applied in preparing these financial statements. The
following amended standards and interpretations are not expected to have a significant impact on the
financial statements.
• Amendments in References to Conceptual Frameworks in IFRS standards;
• Definition of a Business (Amendments to AASB 3); and
• Definition of Material (Amendments to AASB 101 and AASB 108).
33
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
4 DETERMINATION OF FAIR VALUES
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial 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 specific 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 CHANGES IN ACCOUNTING POLICIES
This note describes the nature and effect of the adoption of AASB 16: Leases on the Group’s financial
statements and discloses the new accounting policies that have been applied from 1 July 2019, where they
are different to those applied in prior periods. As a result of the changes in the Group’s accounting policies,
prior year financial statements have not required restatement and has applied AASB 117: Leases accounting
standard.
AASB 117 Prior year application:
Finance leases
The economic ownership of a leased asset is transferred to the lessee if the lessee bears substantially all
the risks and rewards of ownership of the leased asset. Where the Group is a lessee in this type of
arrangement, the related asset is recognised at the inception of the lease at the fair value of the leased asset
or, if lower, the present value of the lease payments plus incidental payments, if any. A corresponding amount
is recognised as a finance lease liability. Leases of land and buildings are classified separately and are split
into a land and a building element, in accordance with the relative fair values of the leasehold interests at the
date the asset is recognised initially.
The corresponding finance lease liability is reduced by lease payments net of finance charges. The interest
element of lease payments represents a constant proportion of the outstanding capital balance and is
charged to profit or loss, as finance costs over the period of the lease.
Operating leases
All other leases are treated as operating leases. Where the Group is a lessee, payments on operating lease
agreements are recognised as an expense on a straight-line basis over the lease term. Associated costs,
such as maintenance and insurance, are expensed as incurred.
AASB 16 Current year application:
a.
Leases
The Group as lessee
At inception of a contract, the Group assesses if the contract contains or is a lease. If there is a lease present,
a right-of-use asset and a corresponding lease liability are recognised by the Group where the Group is a
lessee. However, all contracts that are classified as short-term leases (ie a lease with a remaining lease term
of 12 months or less) and leases of low-value assets are recognised as an operating expenses on a straight-
line basis over the term of the lease.
34
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
CHANGES IN ACCOUNTING POLICIES (Cont.)
Leases (Cont.)
5
a.
Initially the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Group uses the incremental borrowing rate.
–
–
–
–
Lease payments included in the measurement of the lease liability are as follows:
fixed lease payments less any lease incentives;
variable lease payments that depend on an index or rate, initially measured using the index
or rate at the commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options, if the lessee is reasonably certain to exercise the
options;
lease payments under extension options, if the lessee is reasonably certain to exercise the
options; and
payments of penalties for terminating the lease, if the lease term reflects the exercise of an
option to terminate the lease.
–
–
The right-of-use assets comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is
the shortest.
Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of
the underlying asset.
The Group as lessor
Upon entering into each contract as a lessor, the Group assesses if the lease is a finance or operating lease.
A contract is classified as a finance lease when the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases not within this definition are classified as operating
leases.
Rental income received from operating leases is recognised on a straight-line basis over the term of the
specific lease.
Initial direct costs incurred in entering into an operating lease (for example, legal cost, costs to set up
equipment) are included in the carrying amount of the leased asset and recognised as an expense on a
straight-line basis over the lease term.
Rental income due under finance leases are recognised as receivables at the amount of the Group’s net
investment in the leases.
When a contract is determined to include lease and non-lease components, the Group applies AASB 15 to
allocate the consideration under the contract to each component.
Initial Application of AASB 16: Leases
b.
The Group has adopted AASB 16: Leases retrospectively with the cumulative effect of initially applying AASB
16 recognised at 1 July 2019. In accordance with AASB 16 the comparatives for the 2019 reporting period
have not been restated.
The Group was not a lessee in any lease arrangement under AASB 117 Leases. As such, the Group did not
recognise lease liabilities or right-of-use assets on transition to AASB 16 on 1 July 2019.
35
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
CHANGES IN ACCOUNTING POLICIES (Cont.)
Initial Application of AASB 16: Leases (Cont.)
5
b.
There has been no significant change from prior year treatment for leases where the Group is a lessor.
Lease liabilities are measured at the present value of the remaining lease payments, where applicable. The
Group's incremental borrowing rate is used to discount lease payments.
The right-of-use assets, where applicable for the remaining leases have been measured and recognised in
the statement of financial position as at 1 July 2019 by taking into consideration the lease liability and the
prepaid and accrued lease payments previously recognised as at 1 July 2019 (that are related to the lease).
The following practical expedients have been used by the Group in applying AASB 16 for the first time:
–
for a portfolio of leases that have reasonably similar characteristics, a single discount rate has been
applied.
the use of hindsight to determine lease terms on contracts that have options to extend or terminate.
not applying AASB 16 to leases previously not identified as containing a lease under AASB 117 and
Interpretation 4.
–
–
6 OTHER INCOME AND EXPENSES
Research and development claim – (expense)/income (refer
note 22)
Government subsidy
7
LOSS FROM OPERATING ACTIVITIES - EXPENSES
Loss from ordinary activities have been arrived after charging
the following items:
Auditors' remuneration accrued and paid during the year
- Audit and review of financial reports – KPMG
Depreciation
- Land and Building
- Plant and equipment
- Right of Use Asset
Exploration and evaluation expenditure
expensed as incurred
2020
$
2019
$
-
11,245
11,245
2020
$
(1,402,997)
-
(1,402,997)
2019
$
57,000
55,250
24,307
19,923
5,848
24,080
21,401
-
794,216
1,183,603
36
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
8
LOSS PER SHARE
The calculation of basic and diluted loss per share at 30 June 2020 was based on the loss attributable
to ordinary shareholders of $2,185,012 (2019 - $3,539,654 loss) and a weighted average number of
ordinary shares outstanding during the financial year ended 30 June 2020 of 607,862,928 (2019 –
494,819,677), calculated as follows:
Net loss for the year
2020
$
2019
$
2,185,012
3,539,654
2020
Number
2019
Number
Weighted average number of ordinary shares (basic and
diluted)
Issued ordinary shares at 1 July
539,561,347
463,959,479
Weighted average number of ordinary shares at 30 June
607,862,928
494,819,677
As the Company is loss making, none of the potentially dilutive securities are currently dilutive.
2020
$
2019
$
9 CASH AND CASH EQUIVALENTS
Cash at bank
1,956,724
Cash and cash equivalents in the statement of cash flows
1,956,724
725,933
725,933
37
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
10
INCOME TAX EXPENSE
Current tax expense
Current year
Tax losses not recognised
Deferred tax expense
Current year
De-recognition of temporary differences
Numerical reconciliation between tax expense and pre-tax
net profit
Loss before tax - continuing operations
Prima facie income tax benefit at the Australian tax rate of
27.5% (2019: 27.5%)
Increase in income tax expense due to:
- Adjustments not resulting in temporary differences
- Effect of tax losses not recognised
- Unrecognised temporary differences
2020
$
2019
$
(586,475)
586,475
(607,775)
607,775
-
-
62,572
(62,572)
23,426
(23,426)
-
-
(2,185,012)
(3,539,654)
(600,878)
(973,405)
88,107
586,475
(73,704)
(479,249)
1,476,080
(23,426)
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
101,330
8,439,964
79,521
8,208,026
8,541,293
8,287,546
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 profit will be available against which the Company can utilise the benefits of the deferred
tax asset.
38
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
11 TRADE AND OTHER RECEIVABLES
Current
Other debtors
12 OTHER ASSETS
Current prepayments
13 SUNNY CORNER DIVESTMENT
2020
$
2019
$
8,751
19,562
10,090
22,904
During the year, Argent announced the sale of the historic Sunny Corner Silver Mine on Exploration
Licence 5964 to Sunshine Reclamation Pty Ltd (SRP).
The Company and SRP have entered into a binding agreement where SRP will pay Argent $540,000
in instalments by 17 October 2020 as below;
a. A non-refundable payment of $30,000 (Initial deposit) on execution of the binding term sheet (which
was received on 19 September 2019). Argent transferred the Initial Deposit to Golden Cross
Operations (GCO) to dissolve the original JV between Argent and GCO and to get GCO to transfer its
30% legal and beneficial interest in Exploration Licence 5964 into Sunny Silver Pty Ltd, a wholly owned
subsidiary of Argent. As at 30 June 2020 costs of $39,000 have been capitalised to acquire GCO’s
interest in the licence.
b. A non-refundable payment of $110,000 (Commitment Payment) (which the parties acknowledge
includes $10,000 (received 16 December 2019) as reimbursement of cash security with the regulator),
the payment shall be the means by which SRP shall communicate its election to complete this
transaction and;
c. A subsequent and non-refundable payment $400,000 to Argent’s nominated bank account (Final
Payment) as a remaining obligation of SRP falling due and payable by 17 October 2020.
Per consolidated statement of cash flows:
Proceeds from Sunny Corner
Divestment
Acquisition of Sunny Corner
Asset License
a.
b.
c.
Total
$30,000
$100,000
-
$130,000
$30,000
$9,000
-
$39,000
Upon receipt of Commitment Payment and Final Payment, Argent is obliged to make a payment of
$9,000 and $120,000 respectively to GCO as consideration for the 30% legal and beneficial interest in
the tenement. Argent received the Commitment Payment from SRP on 17 December 2019. As at 30
June 2020, payment of $9,000 to GCO has been made.
Argent is in the process of transferring the remaining 70% interest in the Exploration licence 5964 to
Sunny Silver Pty Ltd. Argent will register a security on the Personal Property Security Register (PPSR)
and with the Regulator (Security Registration) before the legal and beneficial interest in Sunny Silver
Pty Ltd is transferred from Argent to SRP. Argent will be free carried for any current and planned
expenditure by SRP. As at 30 June 2020 there has been no transfer of control of the licence to SRP,
the licence is classified as held for sale on the balance sheet and no sale has been recognised. Control
of the licence will transfer to SRP once Final Payment has been received and legal and beneficial
interest in Sunny Silver Pty Ltd is transferred from Argent to SRP.
39
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
14 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
2020
$
502,763
(216,816)
285,947
157,443
(124,913)
32,530
2019
$
502,763
(192,509)
310,254
157,443
(104,990)
52,453
Total plant and equipment - net book value
318,477
362,707
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 financial year
Plant and equipment
Balance at 1 July
Additions
Disposals
Depreciation
Carrying amount at the end of the financial year
Total carrying amount at the end of the financial year
15 RIGHT OF USE ASSET
Office Lease
Balance at 1 July
Additions¹
Depreciation
Disposal
2020
$
310,254
-
(24,307)
285,947
2020
$
52,453
-
-
(19,923)
32,530
318,477
-
46,064
(5,848)
-
40,216
2019
$
331,849
2,485
(24,080)
310,254
2019
$
66,522
7,823
(491)
(21,401)
52,453
362,707
-
-
-
-
-
¹On 18th of February 2020 Argent minerals entered into an office lease with a 12 month term with an option to extend for an additional
24 months. Annual Rent is $15,600 with a fix increase of 3.5%. The right of use asset has been assessed at an incremental borrowing
rate of 5%. Total cash outflow to date was $6,500 and interest charged for the year was $913 for the year.
40
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
16 LEASE LIABILITIES
Office lease
Lease Liabilities- Current
Lease Liabilities- Non- Current
Office Lease Reconciliation
Balance at 1 July
Additions¹
Interest
Lease Payment
Closing Balance
17 TRADE AND OTHER PAYABLES
Current
Creditors
Accruals
18 EMPLOYEE ENTITLEMENTS
Current
Employee annual leave provision
Long service leave provision
2020
$
14,124
26,353
40,477
-
46,064
913
(6,500)
40,477
239,242
243,985
483,227
6,884
-
6,884
2019
$
-
-
-
-
-
-
-
-
33,599
67,943
101,542
68,807
35,939
104,746
Numbers of employees at the end of the financial year: 3 (2019:3)
19 CAPITAL AND RESERVES
Issued and paid up capital
728,463,885 (2019 – 539,561,347) fully paid ordinary shares
Fully paid ordinary shares
Balance at the beginning of the financial year
Issue of shares
Exercise of options
Costs of issue
33,368,098
30,462,609
30,462,609
3,091,350
-
(185,861)
29,274,380
1,268,939
273
(80,983)
Balance at the end of financial year
33,368,098
30,462,609
The Company does not have authorised capital or par value in respect of its issued shares. All issued
shares are fully paid.
41
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
19 CAPITAL AND RESERVES (Cont.)
During the year ended 30 June 2020 the following shares were issued:
• On 9 October 2019, the Company issued 58,956,627 ordinary shares under Tranche 1 of the private
placement conducted. Total amount receipted was $1,238,089. Total issue cost of $78,168 was
recognised as a reduction in proceeds of issue of these shares.
• On 25 October 2019, the Company issued 31,583,848 ordinary shares and 22,635,119 listed options
under Tranche 2 of the private placement. Total amount receipted was $663,261. Total issue cost of
$41,582 was recognised as a reduction in proceeds of issue of these shares.
• On 22 October 2019, the company issued 2,528,728 ordinary shares issued as part of remuneration
to an employee. Total value of the share based payment was $40,000.
• On 25 May 2020, the Company issued 95,833,335 ordinary shares under a private placement
conducted. Total amount receipted was $1,150,000. Total issue cost of $66,111 was recognised as a
reduction in proceeds of issue of these shares.
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 ending 30 June 2019, 5,458 ordinary shares were issued through the exercise of listed
options for cash totalling $273.
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.
2020
$
2019
$
211,515
(129,796)
167,501
193,529
(18,992)
36,978
249,220
211,515
Option Reserves
At the beginning of the year
Options lapsed during the reporting period
Share Based Payments - Options
Balance at the end of the year
42
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
19 CAPITAL AND RESERVES (Cont.)
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 2019
Number
Options Issued
Options
Expired/Exercised
Number
(vii) (viii) (xi)
Number
(ix) (xii)
Closing
Balance
30 June 2020
Number
On or before 29
October 2021
On or before 29
October 2020
$0.05
54,666,885
22,635,119
$0.025
-
90,540,475
-
-
77,302,004
90,540,475
Exercise Period
Exercise
Price
Opening
Balance
1 July 2018
Number
Options Issued
Number
(iv)(v)(viii)
Options
Expired/Exercised
Number
(vi)(ix)
Closing
Balance
30 June 2019
Number
On or before 27
June 2019
On or before 29
October 2021
$0.10
187,000,000
-
187,000,000
-
$0.05
-
54,672,343
5,458
54,666,885
Unlisted 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 2019
Number
Options
Issued/(Expired)/(Exercised)
Number
Closing
Balance
30 June 2020
Number
(iv) (v) (vi) (x)
On or before 30
September 2021
On or before 30
September 2021
On or before 30
September 2021
On or before 27
October 2022
$0.03
6,000,000
(2,000,000)
4,000,000
$0.06
5,000,000
(2,000,000)
3,000,000
$0.10
6,500,000
(3,000,000)
3,500,000
$0.031
-
16,000,000
16,000,000
43
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
19
CAPITAL AND RESERVES (Cont.)
Exercise Period
On or before 30
September 2021
On or before 30
September 2021
On or before 30
September 2021
Exercise
Price
Opening Balance
1 July 2018
Number
Options Issued/
(Expired)/(Exercised)
Number
(i)(ii)(iii)(vii)
Closing Balance
30 June 2019
Number
$0.03
3,500,000
2,500,000
6,000,000
$0.06
3,500,000
1,500,000
5,000,000
$0.10
4,500,000
2,000,000
6,500,000
(i)
On 9 October 2018, the Company issued 3,000,000 3 cents unlisted options to its employees under
the Employee Share Scheme. These options expired on 18 February 2020, two months after
termination of the employee.
(ii) On 9 October 2018, the Company issued 2,000,000 6 cents unlisted options to its employees under
the Employee Share Scheme. These options expired on 18 February 2020, two months after
termination of the employee.
(iii) On 9 October 2018, the Company issued 2,000,000 10 cents unlisted options to its employees under
the Employee Share Scheme. These options expired on 18 February 2020, two months after
termination of the employee.
(iv) 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.
(v) 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.
(vi) On 20 December 2018, the 5,458 5 cents listed options were exercised by an option holder.
(vii) On 14 February 2019, 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.
(viii) On 30 April 2019, the Company issued 33,748,315 5 cents listed options to sophisticated investors
with respect to April 2019 capital raising.
(ix) On 27 June 2019, 187,000,000 10 cents listed options expired.
(x) On 22 October 2019, the Company issued 22,635,119 5 cents listed options and 90,540,475 2.5 cent
listed options offer with respect to a private placement conducted in October 2019
(xi) On 22 October 2019, the Company issued 16,000,000 $0.031 cents unlisted options issued under the
Employee Option Plan pursuant to Resolutions 11,12,13 and 14 carried at the Company’s 2019 Annual
General Meeting held on 22 October 2019.
44
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
20 STATEMENT OF CASH FLOWS
Reconciliation of cash flows from operating activities
Loss for the period
Adjustments for:
Depreciation of plant and equipment
Loss on disposal of plant and equipment
Share based payments
Interest Expense
Changes in assets and liabilities
R&D claims payable
Decrease/(Increase) in receivables and prepayments
(Decrease)/Increase in payables and provisions
2020
$
2019
$
(2,185,012)
(3,539,654)
50,078
-
207,501
913
32,776
23,624
153,822
45,481
491
36,978
-
1,395,276
(19,201)
(10,825)
Net cash used in operating activities
(1,716,298)
(2,091,454)
21 RELATED PARTIES
Key management personnel and director transactions
The following key management personnel holds a position in another entity that results in them having control
or joint control over the financial or operating policies of that entity, and this entity transacted with the
Company during the year as follows:
• During the year ended 30 June 2020, Peter Wall had a beneficial interest in an entity, Steinepreis
Paganin Lawyers & Consultants, which provided legal consulting services. Fees paid to Steinepreis
Paganin Lawyers & Consultants amounted to $45,209 (2019 - $34,008). A balance of $nil remained
outstanding at 30 June 2020 in relation to these services (2019 - $3,000).
• During the year ended 30 June 2020, Tim Hronsky had provided consulting services totalling $14,000
(2019: $Nil). A balance of $nil remained outstanding at 30 June 2020 in relation to these services (2019
- $Nil).
Key management personnel compensation
During the year ended 30 June 2020 compensation of key management personnel totalled $783,224 (2019
- $493,047), which comprised primary salary and fees of $566,155 (2019 - $434,996), superannuation of
$19,966 (2019 - $29,455), share based payments of $160,180 (2019 - $11,753) and long service leave of
$Nil (2019 – $16,843). During the 2020 year termination benefits amounted to $36,923 (2019: $Nil).
45
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
22 R&D CLAIMS REPAYABLE
2020
$
2019
$
R&D Claim repayable
1,428,050
1,395,276
The Group has been undergoing a review by AusIndustry in relation to the R&D claims it made for the 2016
and 2017 financial years totalling $1,402,997.
On 23 December 2019, Argent announced that the AusIndustry Independent Internal Review issued negative
findings on the R&D Claims made by the Company for the 2015/16 and 2016/17 financial years (R&D
Claims). The law provides the Company with full rights to a multi-stage review and dispute resolution process,
with the rights of appeal to both the Administrative Appeals Tribunal (AAT) and thereafter the Federal Court.
The Company remains of the view that the R&D claims were made in compliance with the applicable
legislation and is now evaluating its options.
Argent was under a payment plan with the Australian Taxation Office (ATO) whereby the Company, made a
nominal $5,000 monthly payments for an interim period until AusIndustry completed its Independent Internal
Review process and issued its Determination. On receiving an outcome from the AusIndustry Independent
Internal Review, the Company proposed a new payment plan to the ATO.
On 24 January 2020, the Commissioner agreed to the proposal submitted by Argent whereby the Company
continues to make nominal $5,000 monthly payments. As announced on the 22nd May 2020, Argent entered
into a negotiated arrangement with the ATO around the settlement of the amounts, with a payment plan to
be agreed. The Company will need to consider how payment can be made within the shortest possible
timeframe whilst taking into its account its financial position.
The Company has lodged the 30 June 2016, 30 June 2017, 30 June 2018 and 30 June 2019 Income Tax
Returns with research and development tax incentive schedules to the Australian Taxation Office.
As at the signing date of this Annual Report these tax returns are still being reviewed by the Australian
Taxation Office and therefore no amendments to the balance outstanding with the Australian Taxation Office
has been made at balance date.
The Company accrued a General Interest Charge (GIC) for interest incurred from 1 July 2019 to 30 June
2020 of $114,883. As at 30 June 2020, payments totalling $82,109 were made towards the payment of the
potential tax liability in accordance with the payment arrangements outlined above.
At 30 June 2020, a provision for $1,428,050 has been recognised equal to the amount repayable (including
general interest charges) in relation to the R&D claim for the 2016 and 2017 financials years.
46
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
23 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 office of the option holder is terminated, any options which have not
reached their exercise period will lapse and any options which have reached their vesting date may be
exercised within two months of the date of termination of employment. Any options not exercised within this
two month period will lapse.
The following options were granted during the year ended 30 June 2020 and were on issue at 30 June 2020.
Grant Date
Expiry Date
Vesting Date
Fair
Value of
Options
Granted
Exercise
Price
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
28 October 2019 27 October 2022
28 October 2019
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.03
$0.03
$0.06
$0.06
$0.10
$0.031
$30,154
$26,826
$24,052
$41,982
$37,417
$50,397
$5,600
$5,600
$5,600
$3,200
$3,200
$3,800
$160,180
$398,008
Expired
During the
Period
Number
Balance at
the end of
the period
Number
-
1,000,000
-
1,000,000
-
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
- 16,000,000
(7,000,000) 26,500,000
47
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
23 SHARE BASED PAYMENTS (Cont.)
The following options were on issue at 30 June 2019:
Grant Date
Expiry Date
Vesting Date
Exercise
Price
Fair
Value of
Options
Granted
Expired
During the
Period
Number
Balance at
the end of
the period
Number
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
$0.03
$0.06
$0.10
$0.03
$0.06
$0.10
$0.03
$0.03
$0.03
$0.06
$0.06
$0.10
$30,154
$26,826
$24,052
$41,982
$37,417
$50,397
$5,600
$5,600
$5,600
$3,200
$3,200
$3,800
$237,828
500,000
500,000
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
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
1,000,000 17,500,000
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 reflect the actual number of options that vest.
On 28 October 2019, the Company issued 4,000,000 3.1 cent unlisted options to Peter Wall under the
Executive Option Plan. The options vested immediately and expire on 27 October 2022.
On 28 October 2019, the Company issued 4,000,000 3.1 cent unlisted options to Emmanuel Correia under
the Executive Option Plan. The options vested immediately and expire on 27 October 2022.
On 28 October 2019, the Company issued 4,000,000 3.1 cent unlisted options to Peter Michael under the
Executive Option Plan. The options vested immediately and expire on 27 October 2022.
On 28 October 2019, the Company issued 4,000,000 3.1 cent unlisted options to Tim Hronsky under the
Executive Option Plan. The options vested immediately and expire on 27 October 2022.
On 6 December 2019, the Company issued 2,528,728 ordinary shares for nil consideration to Mr. Clifton
McGilvray as part of his employment contract. The transaction was recorded at a fair value of $40,000 at an
issue price of 1.5 cent per share, based on the one month volume weighted average price immediately prior
to his 2018 employment anniversary date being 14 September 2018.
The fair value of options granted on 28 October 2019 was $160,180. The Black-Scholes formula model inputs
were the Company's share price of $0.019 at the grant date, the volatility factor of 101% based on historic
share price performance, a risk free interest rate of 0.74% based on government bonds, and a dividend yield
of 0%.
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%.
48
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
23 SHARE BASED PAYMENTS (Cont.)
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 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 2020, share based payment expense of $207,501 was recorded in the profit
and loss (2019 - $36,978). This includes $40,000 share based payment in relation to ordinary shares issued
to Clifton McGilvray was recorded as an exploration and evaluation expense in the profit and loss during the
period.
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 financial year.
During the year ended 30 June 2020, 16,000,000 (2019 - 7,500,000) share options vested and Nil options
were yet to be vested at balance date. During the year, 7,000,000 options lapsed following the resignation
of an employee (2019 – 1,000,000).
A summary of the movements of all the Company’s options issued as share based payments is as follows:
2020
2019
Number
of options
Weighted
average
exercise
price
Number
of options
Weighted
average
exercise
price
Outstanding at the beginning
Granted
Expired
Options outstanding at year end
Exercisable at year end
17,500,000
16,000,000
(7,000,000)
26,500,000
26,500,000
$0.054
$0.031
$0.069
$0.036
$0.036
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
The weighted average remaining contractual life of share options outstanding at the end of 30 June 2020
was 1.9 years (2019 – 2.25 years), and the weighted average exercise price was $0.036 (2019 - $0.054).
49
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
24 FINANCIAL INSTRUMENTS
Financial risk management objectives and policies
The Group’s financial instruments comprise deposits with banks, receivables, other deposits, trade and other
payables, and R&D claims repayable 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 financial 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
financial 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 financial 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 financial assets:
Cash and cash equivalents
Trade and other receivables
Security deposits
Note
Carrying amount
9
11
2020
$
1,956,724
8,751
96,000
2,061,475
2019
$
725,933
19,562
93,100
838,595
Management have determined ECLs to be not material at balance date and accordingly no allowance for
impairment has been recognised.
Cash and cash equivalents
The Group mitigates credit risk on cash and cash equivalents by dealing with regulated banks in Australia.
Trade and other receivables
Expected credit losses were assessed to be immaterial. 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 $96,000 held as deposits with government departments and regulated banks within
Australia are the only non-current financial assets held by the Group. All other financial 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 financial instruments entered into by the Group.
50
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
24 FINANCIAL INSTRUMENTS (Cont.)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The
Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group’s reputation.
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 $1,956,724 for its immediate use.
The following are the contractual maturities of financial liabilities, including estimated interest payments:
Carrying
amount
Contractual
cash flows
Less than
one year
$
$
$
Between
one and
five
years
$
Interest
$
30 June 2020
Trade and other payables
483,227
483,227
483,227
-
-
Lease Liabilities
40,477
43,361
15,830
27,531
2,884
R&D Claims repayable
1,428,050
1,428,050
1,428,050
-
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
-
-
-
-
-
It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at
significantly 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 financial 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 0.45% (2019 - 1.27%).
At balance date, the Group had the following mix of financial assets exposed to variable interest rate risk that
are not designated as cash flow hedges:
Financial assets
Cash and cash equivalents
Security deposits
Net exposure
Note
9
2020
$
1,956,724
96,000
2019
$
725,933
35,000
2,052,724
819,033
51
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
24 FINANCIAL INSTRUMENTS (Cont.)
The Group did not have any interest-bearing financial liabilities in the current or prior year other than the R&D
claim payable and lease liability. The interest rate for the R&D was variable with a current rate of 7.6% and
the lease liability had an interest charge of 5%.
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 financing.
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.
2020
$
2019
$
31,705
12,007
Currency risk
The Consolidated entity is not exposed to any foreign currency risk as at 30 June 2020 (2019 - $nil).
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence 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 financial assets and liabilities approximate their net fair values, given the short time
frames to maturity and or variable interest rates.
25 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 financial information is reported to the Board as a single segment. Accordingly, all significant
operating decisions are based upon analysis of the consolidated entity as one segment.
The financial results from this segment are equivalent to the financial 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 financial statements.
52
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
26 SUBSIDIARIES
The parent entity, Argent Minerals Limited, has a 100% interest in Argent (Kempfield) 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 financial and operating policy decisions for these subsidiaries.
Subsidiaries of Argent Minerals
Limited
Country of
incorporation
Ownership percentage
2019
2020
Argent (Kempfield) Pty Ltd
Loch Lilly Pty Ltd
West Wyalong Pty Ltd
Sunny Silver Pty Ltd
Mt Read Pty Ltd
Australia
Australia
Australia
Australia
Australia
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
27 PARENT COMPANY DISCLOSURE
(a) Financial Position as at 30 June 2020
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
2020
$
2019
$
1,950,253
82,788
2,033,041
756,097
53,194
809,291
1,898,166
26,353
1,924,519
1,517,318
-
1,517,318
108,522
(708,027)
33,368,098
249,220
(33,508,796)¹
108,522
30,462,609
211,515
(31,382,151)
(708,027)
There are no contingencies, commitments and guarantees by the Parent other than disclosed in Note 22.
¹ The movement in the accumulated losses included a $129k movement in relation to lapse options.
(b) Financial Performance for the year ended 30 June 2020
Loss for the year
Other comprehensive income
Total comprehensive loss
2,256,441
-
2,256,411
3,422,986
-
3,422,986
53
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
28 JOINT OPERATIONS
West Wyalong
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 2020, the joint venture partner decided to not contribute their share of exploration expenditure
amounting to $16,900 (2019 - $6,312). Following this election, the Company now owns 79.71% (2019 –
78.38%) of the West Wyalong Project. There was $Nil receivable outstanding as at 30 June 2020 (2019 –
$19,532).
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 significant 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.
54
ARGENT MINERALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
29 SUBSEQUENT EVENTS
On 24 July 2020, the Company held a general meeting with all resolutions passed. Resolutions passed are
summarised as follows:
• Ratification of prior issue of shares being 95,833,335 at an issue price of $0.012 per share to raise
•
•
$1,300,000.
Issue of 12,500,001 ordinary shares to related party being Peter Wall, George Karageorge, Peter
Michael and Emmanuel Correia to participate in the placement announced in May 2020.
Issue shares to Peter Wall, George Karageorge, Peter Michael, Emmanuel Correia in lieu of fees.
$48,450 of outstanding fees to be settled via 2,040,021 at a 5-day VWAP of $0.02375.
• Ratification of prior issue of shares exploration manager of $40,000 shares at a deemed issue price
of $0.01582.
On 12, August 2020, the Company announced and shortly completed thereafter, a private placement to
sophisticated investors, raising $2.2 million. The maximum number of new securities that will be issued under
the offer is 40,000,000 new fully paid ordinary shares at an issue price of 5.5 cents per share (Placement
Shares), 20,000,000 attaching listed ASX: ARDOA (ARDOA Placement Options) on a 1:2 basis. Subsequent
to year end, 25,611,257 listed options have been exercised, which has resulted in raising up to $640,552
before cost.
Except for the above, no other matters or circumstances have arisen since the end of the financial year which
significantly affected or could significantly affect the operations of the consolidated entity, the results of those
operations, or the state of the affairs of the consolidated entity in future financial years.
55
ARGENT MINERALS LIMITED
DIRECTORS' DECLARATION
1.
In the opinion of the directors of Argent Minerals Limited (the Company):
(a)
the consolidated financial statements and notes thereto, set out on pages 22 to 55, and
the Remuneration Report in the Directors Report, as set out on pages 13 to 18 are in
accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2020 and
of its performance for the financial 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 officer and chief financial officer for the financial year ended
30 June 2020.
3. The directors draw attention to note 2(a) of the consolidated financial statements, which
includes a statement of compliance with International Financial Reporting Standards.
Signed at Perth this 30th day of September 2020 in accordance
with a resolution of the Board of Directors.
Peter Wall
Chairman
56
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 2020 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 2020;
• 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.
57
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
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:
•
Analysing the cash flow projections by:
• 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;
• 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;
•
•
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
Key Audit Matters are those matters that, in our professional judgement, were of most significance in our
audit of the Financial Report of the current period.
These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
In addition to the matter described in the Material uncertainty related to going concern section, we have
determined the matter described below to be the Key Audit Matter.
58
Independent Auditor’s Report
Exploration and evaluation expenditure - $794,216
Refer Note 7 to the Financial Report
The key audit matter
How the matter was addressed in our audit
Exploration and evaluation expenses is a key audit
matter due to the significance of the amount (being
36% of total expenses) and the audit effort
associated with assessing the completeness and
accuracy of the amounts recorded by the Group.
Our procedures included:
•
•
•
•
•
Assessing the Group’s policy for exploration and
evaluation expenses against the requirements of
the accounting standards;
Selecting a statistical sample of items recorded
as exploration and evaluation expenses and
checking the expenses amount recorded for
consistency to invoices from third parties or
other underlying documentation;
For the sample identified above, checking the
nature of the expenses for consistency with its
classification as exploration and evaluation
expenses in accordance with the Group’s
accounting policy and the criteria in the
accounting standards;
Testing the completeness of the Group’s
exploration and evaluation expenses 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 2020 trade payables schedule
and unprocessed invoices post balance date,
and the underlying documentation of the
transaction; and
For each area of interest, we assessed the
Group’s current rights to tenure by evaluating
the ownership of the relevant licences to
government registries and evaluating
agreements in place with other parties.
59
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 and whether the use of the going concern
basis of accounting is appropriate. 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: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This
description forms part of our Auditor’s Report.
60
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 2020, 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 13 to 18
of the Directors’ report for the year ended 30 June 2020.
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
30 September 2020
61
ARGENT MINERALS LIMITED
SHAREHOLDER INFORMATION
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 22 September 2020, the distribution of each class of equity was as follows:
Quoted Securities
Range
Fully Paid Ordinary
Share Holders
Total Number of
Shares
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
147
177
216
1,381
783
2,704
15,394
615,851
1,920,133
62,115,816
739,797,987
804,465,181
29 October
2021 $0.05
Listed Option
Holders
17
46
12
96
126
297
Total Number of
Listed Options
5,739
126,477
95,171
4,270,719
92,793,092
97,291,198
62
ARGENT MINERALS LIMITED
SHAREHOLDER INFORMATION
Unquoted Securities
29 October
2021 $0.025
Listed Option
Holders
Total Number of Listed
Options
1
-
-
8
58
67
1
-
-
477,000
69,213,023
69,690,024
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
At 22 September 2020, 405 shareholders held less than a marketable parcel of shares and 107
listed option holders held less than a marketable parcel of options.
Twenty Largest Quoted Shareholders
At 22 September 2020 the twenty largest fully paid ordinary shareholders held 37.68% of fully
paid ordinary as follows:
Name
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
1
2 MR MARC DAVID HARDING
3 OCEANIC CAPITAL PTY LTD
4
5
6
CITICORP NOMINEES PTY LIMITED
SHIPBARK PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
REDLAND PLAINS PTY LTD
ST BARNABAS INVESTMENTS PTY LTD
7
8
Fully Paid
Ordinary
Shares
%
64,457,416 8.01
42,000,000 5.22
40,454,545 5.03
17,027,505 2.12
15,052,048 1.87
13,079,534 1.63
11,250,988 1.40
10,623,863 1.32
9 MR DANNY MURPHY + MRS SUSAN MURPHY
JRMA GROUP PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
10
9,296,323
11 MR DAVID IAN RAYMOND HALL + MRS DENISE ALLISON HALL 8,364,368
7,571,658
12
7,500,000
13 DIXTRU PTY LIMITED
7,500,000
13 METUGO PTY LTD
7,500,000
13 WHOLESALE HORTICULTURAL GROUP PTY LTD
7,142,857
16 ELPHINSTONE HOLDINGS PTY LTD
17 CAVES ROAD INVESTMENTS PTY LTD
6,315,000
18 BUSCH CUSTODIANS PTY LIMITED 6,049,074
6,000,000
19 SHIPBARK PTY LTD
6,000,000
20 MS MARILYN YUE
1.16
1.04
0.94
0.93
0.93
0.93
0.89
0.78
0.75
0.75
0.75
There are no current on-market buy-backs.
63
ARGENT MINERALS LIMITED
SHAREHOLDER INFORMATION
Twenty Largest Quoted Option Holders
At 22 September 2020 the twenty largest option holders held 77.85% of listed options as follows:
Name
ELPHINSTONE HOLDINGS PTY LTD
1
2 OCEANIC CAPITAL PTY LTD
3 MR ALAN KENNETH MORCOMBE
JORAC PTY LTD
4
5 MR DEAN MATHEWS
DIXTRU PTY LIMITED
6
CITICORP NOMINEES PTY LIMITED
7
REDLAND PLAINS PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
MR DAVID IAN RAYMOND HALL + MRS DENISE ALLISON
HALL
ST BARNABAS INVESTMENTS PTY LTD
9
8
10
11
12 MR GOPI KRISHNA HARAN
13
14
MR ALAN KENNETH MORCOMBE + MRS NIKI MORCOMBE +
MS CHRISTINE MARIE KAGIS
ALEXIOS ADAMIDES NEUROSURGERY PTY LTD
15 MR ANDREW DAVID LEIGHTON
16 DR JAN PAWEL WIECZOREK + MRS ANNA WIECZOREK
17 MR ANTHONY JOHN VETTER + MRS JEANNETTE VETTER
BUSCH CUSTODIANS PTY LIMITED
THE TRUST COMPANY (AUSTRALIA) LIMITED
19
20 CAVES ROAD INVESTMENTS PTY LTD
18
Quoted
Options
8,928,571
8,136,161
8,000,000
6,000,000
5,948,335
5,405,055
5,015,791
%
8.77
8.00
7.86
5.85
5.85
5.31
4.93
,4,962,098
4.88
4,076,796
4.01
2,651,500
2.61
2,517,548
2.47
2,150,000
2.11
2,000,000
1.97
2,000,000
1.97
2,000,000
2,000,000
1,900,000
1.97
1.97
1.87
1,900,000
1.87
1,818,183
1,815,000
1.79
1.78
Substantial Shareholders
The names of the substantial shareholders who have notified 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
42,000,000
40,454,545
Percentage interest %
5.22%
5.03%
64
ARGENT MINERALS LIMITED
MINERAL RESOURCES AND ORE RESERVES STATEMENT
SCHEDULE OF MINERAL TENEMENTS
New South Wales - Australia
Tenement Identifier
Kempfield
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)
Location
Current
Equity
Interest
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
NSW
100%2
100%2
100%2
100%2
-6
100%2
100%2
100%2
100%2
100%2
NSW
79.46%3
NSW
NSW
NSW
NSW
51%4
51%4
51%4
51%4
TAS
100%
TAS
100%
NSW
70%5
Notes
1.
The definition of “Mining Tenement” in ASX Listing Rule 19.12 is “Any right to explore or extract
minerals in a given place”.
2.
For all Kempfield tenements the tenement holder is Argent (Kempfield) Pty Ltd, a wholly owned
subsidiary of Argent Minerals Limited.
3. Under the West Wyalong Joint Venture and Farm in 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 Farm in 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
65
ARGENT MINERALS LIMITED
MINERAL RESOURCES AND ORE RESERVES STATEMENT
the first 51% interest to be earned by completing the drill test for the Eaglehawk and Netley targets.
For further details on Farm in 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.
6. EL 7968 is in the process of being replaced by ELA5864 due to an inadvertent administration
oversight by an external tenement agent, that caused EL7964 to lapse. Argent is the sole application
for ELA5864.
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MINERAL RESOURCES AND ORE RESERVES STATEMENT
KEMPFIELD (NSW, AUSTRALIA - 100% ARGENT)
RESOURCE SUMMARY
The updated Kempfield 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 - Kempfield Mineral Resource summary
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Contained Metal
Equivalents2
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)
Oxide/
Transitional* 6.0
55
11
0.11
21
N/Ri
N/Ri
N/Ri
N/Ri
1.0
62
64
Primary**
Total***
20
26
35
40
23
0.13
81
0.60
120
33
0.12
100
0.46
120
1.3
1.0
250
2.3
450
140
250
2.0
520
120
100
12
91
* 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 2020:
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Contained Metal
Equivalentsb
Zn Eq
Ag Eq
Approx.
Range
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)
Lower
20
20
13
0.1
64
0.3
60
0.7
140
1.3
300
80
58
Upper
50
40
64
0.2
320
0.5
250
1.0
500
2.1
1,000
130
190
Exploration Target Notes:
a) An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined 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 insufficient exploration to estimate a Mineral Resource. The potential quantity and grade of the
Exploration Target is conceptual in nature, there has been insufficient 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 infill drilling programme’ in the 8 November 2017 announcement – Kempfield 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.
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
67
MINERAL RESOURCES AND ORE RESERVES STATEMENT
RESOURCE DETAILS
Table 2 - Kempfield 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)
Zinc
(Zn)
(%)
Lead
(Pb)
(%)
Zinc Equivalent
(Zn Eq)
(%)
Silver Equivalent
(Ag Eq)
(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
1.2
0.37
0.29
0.62
0.53
0.06
0.05
0.17
0.14
0.27
0.27
0.13
1.2
1.4
1.2
1.3
1.6
1.6
1.3
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 4 Kempfield North = C Horizon and D Horizon
Southern Conglomerate Zone 4 Kempfield South = C Horizon and D Horizon
Quarries Zone 4 Henry Zone = C Horizon & D Horizon
McCarron Zone 4 Kempfield South = A Horizon and B Horizon
West McCarron Zone 4 Kempfield West = FW1 Horizon
Table 3 - Kempfield Mineral Resource by category
Grade (g/t)
Grade (%)
Category
Resource
Tonnes
(Mt)
Silver
(Ag)
Gold
(Au)
Lead
(Pb)
Zinc
(Zn)
In-situ Grade
(Contained Zn Eq and Ag
Eq)b
Zinc
Equivalent
(Zn Eq %)
Silver
Equivalent
(Ag Eq g/t)
Oxide/Transitional
Measured
Indicated
Inferred
Total Oxide/Transitional
Primary
Measured
Indicated
Inferred
Total Primary
Total Resource
2.7
2.7
0.6
6.0
4.7
10
4.9
20
26
68
47
39
55
49
34
25
35
40
-
-
-
-
0.65
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
0.11
0.11
0.08
0.11
0.12
0.13
0.12
0.13
0.12
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ARGENT MINERALS LIMITED ANNUAL REPORT 2018
MINERAL RESOURCES AND ORE RESERVES STATEMENT
Table 4 - Kempfield 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)
‘000 t
In-situ Zinc
Equivalent
(Zn Eq)
Moz
In-situ Silver
Equivalent
(Ag Eq)
Oxide/Transitional
Measured
Indicated
Measured + Indicated
As % of Total
Oxide/Transitional
Primary
Measured
Indicated
Measured + Indicated
As % of Total Primary
Oxide/Transitional + Primary
Measured
Indicated
Total Measured + Indicated
2.7
2.7
5.4
5.8
4.1
9.9
9.3
9.9
19
90%
93%
93%
4.7
10
15
7.5
11
19
19
44
63
-
-
-
-
31
60
90
-
-
-
-
60
130
190
76%
83%
78%
76%
74%
7.4
13
21
13
15
29
28
54
82
31
60
90
59
130
190
As % of Total Resource
79%
86%
81%
76%
74%
33
25
57
6.6
4.9
11
93%
93%
120
230
350
76%
150
250
400
78%
24
46
69
76%
30
51
81
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:
Gold price:
Zinc price:
Lead price:
Silver recoverable:
Gold recoverable:
Zinc recoverable:
Lead recoverable:
$US 16.77/oz
$US 1,295/oz
$US 3,129/tonne
$US 2,402/tonne
86% of head grade
90% of head grade
92% of head grade
53% of head grade
The metals pricing is based on the one year historical average daily market close on which the 30 May 2018 Significant
Kempfield 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.
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 Kempfield 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
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
69
MINERAL RESOURCES AND ORE RESERVES STATEMENT
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 Significant Figures
Figures in the tables in this Mineral Resources and Ore Reserves Statement may not sum precisely due to rounding; the
number of significant figures 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 reflect the
significant 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 significant increases to contained metal equivalents (approximately
doubling the Ag Eq ounces), and the addition of a zinc equivalent for the first 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 2020.
Accordingly no comparison is provided for Mineral Resource estimate statement as at 30 June 2020 versus 30 June 2019.
JORC 2012 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON
STATEMENT
The information in the Mineral Resources and Ore Reserves Statement for the Kempfield 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 sufficient 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
defined 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 Kempfield 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.
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
70
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 Kempfield 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 2020. This information was
prepared and first 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
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 2019. Accordingly, no comparison is provided.
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 sufficient 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 defined 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.
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
71
MINERAL RESOURCES AND ORE RESERVES STATEMENT
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
The following table sets out the Sunny Corner Mineral Resource statement as at 30 June 2020. This information
was prepared and first 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 combined base metals (cbm) cut-off grade of 2.5%:
Table 7 - Sunny Corner Mineral Resource Estimate
Resource
Tonnes
(Mt)
Density
cbm
(%)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Ag
(g/t)
Inferred
1.5
2.8
6.2
0.17
2.13
3.70
0.39
24
for contained metal as:
n 55,000 tonnes of zinc;
n 32,000 tonnes of lead;
n 5,800 tonnes of copper; and
n 1.2 million ounces of silver.
Note 1 - Qualification
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 figures 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 2019. Accordingly, no comparison is provided.
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
72
MINERAL RESOURCES AND ORE RESERVES STATEMENT
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 sufficient 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 defined 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 sufficient 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 defined 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, fire assay with AAS finish for Au, and X-ray fluorescence
(XRF) for Sn; 265 samples were used for specific gravity determination.
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 confirm 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 financial 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 2019/20 year.
Queensberry Mine deposit
Hyperspectral studies were conducted by Mineral Resources Tasmania (MRT) on drillholes
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
73
MINERAL RESOURCES AND ORE RESERVES STATEMENT
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.
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. Stuart Leslie Till who is a member of the
Australasian Institute of Mining and Metallurgy, a director of Argent Minerals, and who has sufficient 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 defined in the 2012 Edition of the ‘Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code).
Mr. Till consents to the inclusion in this report of the matters based on the information in the form and context in
which it appears, and confirms 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 qualified 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 financial 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 significant 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 reflected 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 qualified 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.
ARGENT MINERALS LIMITED ANNUAL REPORT 2018
74
ARGENT MINERALS LIMITED
CORPORATE DIRECTORY
CORPORATE DIRECTORY
Directors:
Peter Wall – Non-Executive Chairman
Emmanuel Correia – Non-Executive Director
Peter Michael – Non-Executive Director
George Karageorge – Executive Director
Company Secretary:
James Bahen
Emmanuel Correia
Registered Office and Principal Place of Business:
Suite 1, Ground Floor
18 Kings Park Road,
West Perth WA 6005
SYDNEY NSW 2000
Phone: +61 8 6555 2950
+61 8 6166 0261
Fax:
E-mail: admin@argentminerals.com.au
Website: https://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:
KPMG Level 16, Riparian Plaza
71 Eagle Street
BRISBANE QLD 4000
Home Exchange:
ASX Limited Level 40, Central Park
152-158 St George’s Terrace
PERTH WA 6000
Solicitors:
Steinepreis Paganin
Argent Minerals Limited, incorporated and domiciled in Australia, is a publicly listed company limited by
shares.
75