2020
Annual
Report
Corporate Directory
Directors
Mark Potter (Non-Executive Chairman)
Alastair Clayton (Executive Director)
Edward Mead (Executive Director)
Daniel Smith (Non-Executive Director)
Share Registry
Automic Registry Service
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Web: www.automicgroup.com.au
Company Secretary
Bankers
Guy Robertson
Westpac Limited
Royal Exchange
Corner Pitt & Bridge Streets
Sydney NSW 2000
Principal Registered Office
Auditors
Level 8, 99 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9486 4036
Email: info@artemisresources.com.au
Web: www.artemisresources.com.au
HLB Man Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Telephone: +61 8 9227 7500
Facsimile: +61 8 9227 7533
Securities Exchange Listing
Australia Securities Exchange Limited
(ASX: ARV)
OTC Markets Group (OTCQB: ARTFF)
Frankfurt Stock Exchange (Frankfurt: ATY)
Table of Contents
CHAIRMAN’S LETTER
REVIEW OF OPERATIONS
ANNUAL MINERAL RESOURCES STATEMENT
TENEMENT SCHEDULE
CORPORATE GOVERNANCE
DIRECTORS’ REPORT
REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS DECLARATION
INDEPENDENT AUDITOR’S REPORT
ASX ADDITIONAL INFORMATION
1
2
16
18
19
20
25
33
34
35
36
37
38
82
83
87
Chairman’s Letter
Dear Shareholders,
On behalf of the Directors of Artemis Resources Limited, I am pleased to report on the activities of the
Company for the year ended 30 June 2020.
Our focus remains on advancing the Carlow Castle and Paterson Central gold projects in the Pilbara,
Western Australia.
The Carlow Castle Inferred Mineral Resource estimate was upgraded in late 2019 to 418oz Au, 48kt
Cu and 7kt Co within 8Mt @ 0.51% Cu, 1.6 g/t Au and 0.08% Co. In early 2020 the Company launched
Project One Million, an exploration programme to further increase the scale and size of the Carlow
Castle resource. The first drill programme of 4,000 metres returned excellent grades and widths below
the existing resource, extended mineralisation at depth and continued to show it remained open to
the east and south. A follow-up drill programme commenced early in the new financial year designed
to substantially increase and upgrade the resource with a view to processing at the Company’s 100%
owned Radio Hill processing plant, approximately 35km from the project.
Artemis’ 100% owned Paterson project covers 605km2 and is located approximately 40km east of
Newcrest Mining’s multi-million-ounce Telfer Gold-Copper mine and is contiguous to the recent
Havieron gold and copper discovery by Greatland Gold Plc, subject to a farm-in by Newcrest. Following
an extensive review by external consultants Resource Potentials, Artemis has identified 7 key target
zones each to be drill tested. Five southern drill targets sit within the same geological and structural
domain as the Havieron gold discovery, are within 4km of Havieron and are sited with the same
favourable structural corridor, and two northern targets are geophysical and structural targets
adjacent to a favourable N-S trending structural corridor extending north from Havieron.
With two significant projects Artemis’ Board resolved to dispose of non-core assets. The Company’s
joint venture interests in the Purdy’s Reward and 47K Patch gold projects were sold to Novo Resources
Inc. for a cash and shares consideration that realised approximately $6.6 million. Early in the new
financial year Artemis sold its 80% interest in Mt Clement to its joint venture partner Northern Star
Resources Limited for $319,000 in cash and a 1% royalty. The Company continues to assess
opportunities to dispose of other non-core assets as appropriate.
The Company raised $8 million during the year, in placements of $5.9 million and $2.1 million and a
share purchase plan of $2.7 million, well supported by shareholders. In July 2020 the Company raised
a further $5.6m in a well oversubcribed share placement, with participation from both existing
shareholders and new institutional investors. The Company is well funded to enable it to execute its
project strategy in the year ahead.
My appointment on 24 February 2020 followed the resignation of Sheikh Maktoum Hasher Al
Maktoum. We take this opportunity to thank Sheikh Maktoum for his contribution to the Company.
Alastair Clayton a geologist with significant mining industry experience joined the Board in early 2020
as an Executive Director.
I take this opportunity to thank my fellow directors, the Artemis team, and our shareholders for their
ongoing support as we look forward to an exciting and successful year ahead.
Mark Potter
Chairman
Artemis Resources Limited Annual Financial Report – June 2020
1 | P a g e
Operations Report
Artemis Resources Limited (“Artemis” or the “Company”) is pleased to outline the Company’s progress
for the financial year end 30 June 2020. Artemis is a gold and copper focused resources company with
major projects being Paterson Central and The Greater Carlow Castle Project, both located in the
Pilbara region of Western Australia. The Company owns 100% of the strategically located Radio Hill
processing plant and infrastructure, located approximately 30km south of Karratha.
During the financial year, the Company made significant progress with its Greater Carlow Castle and
Paterson Central projects, including a major resource upgrade at Carlow Castle.
The following is a summary of the key work programs completed or resources updates during the
current financial year.
Figure 1: West Pilbara project map highlighting ARV’s Greater Carlow Castle project and the location of the Radio
Hill processing plant.
Artemis Resources Limited Annual Financial Report – June 2020
2| P a g e
Operations Report
HIGHLIGHTS
CARLOW CASTLE GOLD-COPPER-COBALT PROJECT
The Carlow Castle gold, copper and cobalt project is located in the West Pilbara region of Western
Australia, ~45 km by road east of the city of Karratha (Figure 1). Access is via the Northwest
Coastal Highway and then by the unsealed Cheratta public road, which passes through the Project
area. Carlow Castle is on the granted exploration license E47/1797 and is ~35 km from Artemis’
100% owned Radio Hill Processing Plant.
The current Carlow Castle Mineral Resource covers a strike length of 1.2 km, and was successfully
identified using SAM exploration in early 2018. In conjunction with geochemical anomalies, SAM
targeting drove the Carlow Castle drilling program in 2018 that increased the maiden resource by
71% in February 2019, and subsequent SAM survey which has identified 21 new targets to the
west of the current resource.
Recent structural mapping and evaluation of historical diamond core and trenching through the
top of the resource area, led to a significant increase in the confidence levels of the project, and
culminated in the new inferred Mineral Resource Estimate (MRE) announced on 20 November
2019, that increased metal content by 60% for gold, 25% for copper and 15% for cobalt.
The inferred MRE is now 418koz Au, 48kt Cu and 7kt Co within 8Mt @ 0.51% Cu, 1.6 g/t
Au and 0.08% Co 1. The structural mapping programs and MRE have been carried out by
independent mining Industry consultants, CSA Global.
During March 2020, 31 RC drill holes were completed for 3,716 metres (Figure 2), with the assay
results released to the ASX on 6 May 2020. The RC drill program had three aims:
1. Continue to define limits of mineralisation at depth and down dip and add ounces to
further resource updates;
2. Capture DHEM signatures of mineralisation for use in future resource and extensional
and regional drill planning; and
3. Commence systematic exploration of 21 undrilled SAM targets to the west and south of
the Carlow Castle resource area.
Pleasingly in terms of the first objective, RC drilling below the resource (Figures 2 & 3) returned
excellent grades and widths. It also extended mineralisation at depth and continued to show it
remained open down dip to the east and to the south.
Secondly, a first-ever downhole electromagnetic (DHEM) programme at Carlow Castle was
successful and revealed an identifiable signature of the higher-grade sulphide mineralisation. This
will be used to efficiently target our future drilling to increase the resource area.
The final objective began with the first phase of systematic drilling of SAM targets, starting with
1-4 (Figure 4). This was designed to explore completely untested and open-strike geological
1 See ASX Announcement 20 November 2019. The Company is not aware of any new information or data that materially
affects the information included in this market announcement and, in the case of estimates of mineral resources, that
all material assumptions and technical parameters underpinning the estimates in this market announcement continue
to apply and have not materially changed.
Artemis Resources Limited Annual Financial Report – June 2020
3| P a g e
Operations Report
extensions to the west of and adjacent to the current resource area. Several fence lines of shallow
holes were completed over a strike of ~1km. Much of this area was deeply weathered but did
not return widespread significant gold values.
Figure 2: Carlow Castle drill hole location plan of April RC programme and interpreted open directions
(yellow) of mineralisation following completion of programme
Artemis Resources Limited Annual Financial Report – June 2020
4| P a g e
Operations Report
Figure 3: Carlow Castle composite long section, showing additional RC drilling that has increased
mineralisation down dip at the eastern end of the resource (open indications in purple), and pit optimisation
(in black) looking north, above which Mineral Resources were reported to the ASX on 20 November 2019.
Drilling intersected gold mineralisation in ARC208 (SAM target 4).
Figure 4: Carlow Castle geology, SAM survey results with 21 anomalies and drilling and resource area to
date, which indicates mineralisation is open to the west and east. The planned RC drill programme will
target anomalies 1-4, immediately to the west of the current resource. Anomalies 1-4 are over a strike of
~1km.
Artemis Resources Limited Annual Financial Report – June 2020
5| P a g e
Operations Report
CARLOW WEST GOLD PROJECT (Part of the Greater Carlow Area)
RC drilling at Carlow West (12km west of Carlow Castle and 25km south-east of Karratha, Figure
1) was completed with an 11 hole, 550m drill traverse through a section of the prospect that
retuned rock chip assays of 1 to 9.89 g/t Au as reported to the ASX on 5 November 2018.
Figure 5: Carlow West rock chip results and planned Aircore drilling. Central high grade rock chip line over
200 metres will be RC drilled. Results previously released to the ASX on 5 November 2018 (the project was
previously referred to as Patersons Hut).
PATERSON CENTRAL GOLD-COPPER PROJECT
Background to the Paterson Central Project
The Paterson Central Gold-Copper Project covers 605 km2 and is located in the Yaneena Basin of the
Paterson Province, which hosts large scale mineral deposits, such as the World class Telfer Gold-
Copper Mine, recently discovered Winu copper-gold deposit, Nifty Copper Mine, and the rapidly
growing Havieron gold and copper deposit. The Company’s Paterson Central project forms a 100%
owned exploration tenement E45/5276, which surrounds the Havieron gold deposit on three sides,
and covers the same continuous geological domain (Figures 6 and 10).
The geology of the project area consists of Canning Basin sediments, primarily Permian siltstones in
this part of the basin, which overlie Proterozoic meta-sedimentary basement rocks which form the
main host rocks to large mineral deposits in the region. The sedimentary cover is 300m thick in the
western part of the project area and is interpreted to deepen to over 800m in the far east. The
Havieron gold and copper deposit is associated with a strong magnetic anomaly and sits under about
450m of sedimentary cover. Mineralisation at Havieron extends over deep intervals to at least 600m
below the base of sedimentary cover, where the mineralisation starts, and it continues to remain
open at depth. The Company is exploring the Paterson Central Project for both Havieron and Telfer
styles of gold and copper mineralisation.
Artemis Resources Limited Annual Financial Report – June 2020
6| P a g e
Operations Report
Figure 6: Paterson Central Tenement E45/5276 (yellow outline) with 7 new target areas proposed for
drilling, overlying main geological units, and showing locations of major gold and base metal deposits.
Summary of New Targeting at Paterson Central
A detailed review of all Artemis data by Perth based Resource Potentials, led by Dr Jayson Meyers,
has led to a revision of initial targets and identification of new targets, to come up with 7 key target
zones to each be tested by a single deep drillhole: Juno, Voyager, Enterprise East, Enterprise West,
Nimitz, Atlas and Apollo (Figures 5 to 8).
Artemis Resources Limited Annual Financial Report – June 2020
7| P a g e
Operations Report
Figure 7: Paterson Central Tenement E45/5276 (yellow outline), with 7 target areas for proposed drilling
(yellow dots), interpreted bedrock geology units and structures, on top of a merged magnetic anomaly
image, and location of 2D seismic reflection survey line shown in Figure 4.
Phase One Drill Programme
The Company’s Phase One Drill Programme is targeting the completion of 7 holes of about 800m
depth each for circa 5,600 total metres. Given the wildcat nature of the drilling, the Company may
choose to further extend the scope of the drill programme pending initial results. Given the
predominance of E-W parallel sand dunes in the region (Figure 7), access to the northern targets of
Juno and Voyager may require extra time and attention. As such, drilling is likely to commence
around the more southerly targets located only several kilometres from the Havieron discovery. The
Company will report back to shareholders as and when material data is generated from the Paterson
Central Project.
Artemis Resources Limited Annual Financial Report – June 2020
8| P a g e
Operations Report
Figure 8: Digital terrain model of the Paterson Central tenement (yellow outline) and proposed 7 high
priority targets with drillhole locations (yellow dots). An extensive array of linear sand dunes appear as lines
trending roughly East-West, with elevation highlighted by hotter colour attributes. The linear sand dunes
range in height from between 5 to 15 metres above the relatively flat landscape.
The maiden Paterson Central programme aims to make discoveries of both gold and copper, as well
as demonstrate that the mineralising structures and events that led to the formation of the
outstanding Havieron discovery are active across the Company’s tenement, which surrounds
Havieron on three sides (Figures 6 and 7).
Basis of Targeting – Geochemical Anomaly Corridor
A geochemical target trend has been defined to occur just to the north of Havieron by an extensive
ionic leach sampling program, which was completed following initial trial surveys and specialised
data analysis by Artemis geologist Allan Younger, who compared duplicate results between ionic
leach and mobile metal ion (MMI) methods. The ionic leach method was then chosen for assaying
Artemis Resources Limited Annual Financial Report – June 2020
9| P a g e
Operations Report
456 samples collected in a grid pattern to the north of Havieron, and results from this survey have
also been used to target drilling on the Atlas target zone, which also sits over the same North-South
trending mafic dyke that extends north from Havieron (Figure 8).
Figure 9: Ionic leach geochemical survey area north of Havieron, consisting of 456 samples collected in a
100x400 metre grid pattern, with a multi-element (Ag, As, Au and Cu) geochemical anomaly trend
highlighted (yellow outline) and multi-element anomaly highs (purple outlines), on a colour image of
elevated gold, all overlain on a magnetic anomaly image. Locations of planned Artemis drillholes are shown
as yellow dots, with their downhole traces projected to surface as black lines.
As reported previously, Artemis sought to undertake a more comprehensive geochemical sampling
programme on a grid pattern, however this was curtailed by a significant rain event, with only 456
of the planned ~1,500 samples retrieved before activities ceased. The Ionic leach process appears
to be successful for generating geochemical anomalies that are coincident with structures and
geophysical anomalies which are already of interest. The Company will now undertake to complete
the unfinished portion of the planned geochemical sampling programme and likely extend its
footprint as a future targeting tool over other prospective geological trends at Paterson Central.
Artemis Resources Limited Annual Financial Report – June 2020
10| P a g e
Operations Report
Basis of Targeting – Structural, Geophysical and Seismic Data
The majority of the basis for targeting and drill planning has been to follow structural trends in
Neoproterozoic bedrock, sitting below thick Permian cover sediments, interpreted from geophysical
data sets, including a deep penetrating 2D seismic reflection survey line acquired for oil and gas
exploration in the 1980s, and subtle gravity and magnetic highs from features occurring below the
sedimentary cover; including a deep sourced ionic leach multi-element geochemical anomaly trend
as mentioned above.
Figures 1 and 4 show how the interpretation of geological structures occurring in bedrock below
Canning Basin Permian siltstone cover has likely identified a non-magnetic and low density granitic
intrusive body, which would have likely been intruded during the regional Crofton Granite event
(650-600 Ma). The location of this interpreted granite also shows up as a non-reflective seismic
transparent zone (Figure 9). This interpreted NW-SE trending granitic intrusion is in close proximity
to Havieron (Figure 6), and could be the main source of heat for driving hydrothermal alteration and
local skarn-like metamorphism associated with gold and copper mineralisation found at Havieron.
Low angle, West-dipping thrust faults and late brittle cross faults have also been interpreted in the
2D seismic reflection data (Figure 4), as well as in both gravity and magnetic data sets to offset folded
Neoproterozoic (850-820 Ma) metasediments of the Lamil Group, which host the Telfer Gold deposit
located about 45 km to east, and which are also the likely host rocks to Havieron.
Two target zones in the northern part of the project area, Juno and Voyager, have primarily been
identified as strong magnetic anomaly targets located 12 km to the north of Havieron. They sit on
the northern edge of the interpreted granite intrusion, and form along a Northeast trending
structural corridor that crosses the Northwest to North-South trending bedrock units, and the North-
South trending fault and dyke trend that cross though Havieron to the south (Figure 6).
Artemis Resources Limited Annual Financial Report – June 2020
11| P a g e
Operations Report
Figure 10: 3D view looking to the northwest from the South-eastern part of Paterson Central Tenement
E45/5276 which surrounds the Havieron magnetic body on three sides, with other magnetic source bodies
within E45/5276 identified by constrained modelling of geological sources from below sedimentary cover.
A depth converted 2D seismic reflection profile (location in Figure 1) is shown with interpreted layer
reflectors (green lines), thrust faults (blue lines), and late brittle faults (red lines), with a seismic transparent
zone highlighted in pink, which corresponds to a magnetic and gravity low anomaly zone, and this zone is
interpreted to be caused by a granitic intrusion. Note how the Havieron Thrust fault, interpreted from
magnetic and gravity anomaly patterns, has also been interpreted in the seismic reflection profile, with the
Enterprise East drillhole planned to run parallel to the footwall of this thrust fault in order to test the
southern extension of an interpreted structure extending from Havieron. The 4 other planned drillholes
surrounding Havieron are designed to test a major Northwest-Southeast trending fold and thrust system
along strike from Havieron, late brittle structures, and the mafic dyke extending from Havieron, as well as
subtle gravity and magnetic high zones, and an ionic leach geochemical anomaly.
Post mineralisation mafic dykes, such as the North-South trending dyke crossing through Havieron
(Figure 6), appear to have intruded along the interpreted late brittle faults, and these faults may
have also formed local host structures for gold mineralisation. The gold mineralised zone at
Havieron is interpreted to follow a broad anticlinal fold structure, containing smaller parasitic folds,
that extends to the Southeast into the Artemis tenement, and is bounded to the west by the
Havieron Fault and to the east by the interpreted granite batholith (Figures 6 and 9). These
coinciding major geological features are considered to have large scale control on gold
mineralisation, and interpretation of these major features, and minor mineralisation related
structures, has been used to generate targets and design of initial drillholes to test each of the 7
target zones within the Artemis tenure.
Artemis Resources Limited Annual Financial Report – June 2020
12| P a g e
Operations Report
Deep Drilling Program
A minimum depth of 800m has been planned for each of the 7 holes, with dip angles ranging
between 65-80 degrees, and with different azimuth orientations designed to optimally test each
target. Drill core will be marked up and logged at site, and then transported to the Company’s new
purposed built core farm at the Radio Hill processing plant for cutting, sampling and storage.
Subject to local access and climatic conditions the Company is planning to complete 7 deep holes
and has allocated existing funds in treasury accordingly. Artemis hopes to complete as much drilling
as is practicable and ideally well before the start of the wet season, which typically arrives in late
November – Early December.
Munni Munni PGE Project
The 70% ARV owned Munni Munni PGE Project is located approximately 40km south of Karratha
(Figure 11).
A Reverse Circulation (RC) drilling programme, consisting of 12 drill holes for 1,928 metres, was
completed within the current reporting period. Drill hole locations were spread throughout the
entire upper portion of the mineralisation, to a maximum depth of 200 metres. Samples were
sent to ALS Global with results pending at the end of this reporting period.
Several RC holes were targeted at replicating the historical diamond drill intersections and
provide a comparison with the Artemis 2018 diamond drilling results. Other zones targeted were
designed to help define the position of the PGE horizon. Holes 20MMRC009 & 010 were targeted
at shallow VTEM anomalies at the base of the overlying Fortescue Group on the Munni Munni
Complex.
The PGE horizon at Munni Munni is a stratigraphic zone and historical drilling has been widely
spaced and very selectively assayed. The recent ARV drilling incorporated a multi-element
analytical suite to better define the subtle lithological variations.
Essentially only gabbros and pyroxenites were recognised in the historic diamond drilling with
the addition of sediments and various minor intrusive dykes recognisable in the RC chips. This
highlights the difficulty in accurately identifying prospective rock types without expensive
petrological studies.
When the multi-element results are received from the latest round of drilling, it is anticipated
that they will allow more accurate definition of the subtle mafic lithologies based on Al2O3 and
MgO content.
Artemis Resources Limited Annual Financial Report – June 2020
13| P a g e
Operations Report
Figure 11: Munni Munni PGE Project area with tenement boundaries
Corporate
Capital Raising
The Company undertook the following capital raises during the year and post year end.
In July 2019 the Company raised $2.7 million through a Share Purchase Plan issuing 87,338,535 shares
at 3.1 cents per share.
In October 2019 the Company raised $5.9 million issuing 184,375,000 shares at 3.2 cents per share.
These funds were used in part to retire the convertible note of $4.6 million.
In February 2020 the Company raised $2 million issuing 85,112,500 shares at 2.5 cents per share.
These funds were used to activate new exploration programmes at Paterson Central and Carlow
Castle.
Post year end the Company raised a further $5.6 million through the issue of 80 million shares at 7
cents per share. These funds are earmarked for drilling programmes at both Paterson Central and The
Greater Carlow Castle Project.
Artemis Resources Limited Annual Financial Report – June 2020
14| P a g e
Operations Report
Project Disposal
In March 2020 the Company announced the disposal of its interest in the Purdy’s Reward and 47K
Patch gold projects to Novo Resources Corp for $820,000 in cash and 1,640,000 Novo shares. The
Novo shares were subsequently sold for ~$5.8 million given an ultimate total consideration of ~$6.6
million.
On 28 April 2020 and 18 June 2020 the Company updated the market on the status of the sale of a
51% interest in Munni Munni PGE Project by way of sale of 72.9% shareholding in Munni Munni Pty
Ltd (“MMPL”). MMPL has a 70% beneficial right in the Munni Munni PGE Project. As outlined in ASX
announcement of 20 July 2020, Artemis’ 30% joint venture partner, Platina Resources Limited issued
a summons claiming breach of the heads of agreement between the parties. The Company has
retained Clayton Utz and Senior Counsel to vigorously defend its rights.
Subsequent to year end the Company sold its 80% interest in the Mt Clement project to Northern Star
Resources for $344,000 and a 1% gross revenue royalty.
The Company will dispose of other non-core assets if it determines the consideration to be adequate
and it does not fit within the core strategy.
Board Changes
Mr. Alastair Clayton was appointed an executive director on 29 January 2020. Mr Clayton, based in
London, is a qualified geologist and mining executive with extensive experience in evaluating,
optimising and financing large scale mining projects internationally.
Mr Mark Potter was appointed Non-Executive Chairman on 24 February 2020 and has over 15 years’
experience in natural resources investments. Mr Potter currently serves as a Director and Chief
Investment Officer of Metal Tiger Plc (AIM:MTR), a natural resources investment company quoted on
the AIM market of the London Stock Exchange, and is the Founder and a Partner of Sita Capital
Partners LLP, an investment management and advisory firm specialising in investments in the mining
industry.
Sheikh Maktoum Hasher Al Maktoum resigned as a director on 24 February 2020.
Artemis Resources Limited Annual Financial Report – June 2020
15| P a g e
Annual Mineral Resources Statement 30 June 2020
In accordance with Listing Rule 5.23.2, Artemis confirms that it is not aware of any new information or data that materially affects the
information included in the Annual Mineral Resources Statement above, and that in the case of mineral resources that all material assumptions
and technical parameters underpinning the estimates in the Annual Mineral Resources Statement continue to apply and have not materially
changed.
Artemis Resources Limited Annual Financial Report – June 2020
16| P a g e
g/tOz%t%t%t%tCarlow Castle - Au, Cu, CoMeasured IndicatedInferred (oxide) 2,843,000 0.71 64,897 0.59 16,774 0.05 1,422 Inferred (fresh) 5,124,000 2.14 352,545 0.62 31,769 0.10 5,124 Sub-total 7,967,000 1.63 417,443 0.60 48,543 0.08 6,546 Weerianna - AuMeasured IndicatedInferred 975,000 2 62,694 Sub-total 975,000 2 62,694 Radio Hill - Ni Cu, CoMeasured Indicated 1,150,000 0.73 8,395 0.028 322 0.52 5,980 InferredSub-total 1,150,000 0.73 8,395 0.08 322 0.52 5,980 Ruth Well - Ni, CuMeasured Indicated 152,000 0.47 714 0.63 958 InferredSub-total 152,000 0.60 714 0.08 958 Whundo - Cu, ZnMeasured Indicated 2,600,000 1.14 29,640 1.12 29,120 InferredSub-total 2,600,000 1.14 29,640 1.12 29,120 Ayshia- Whundo - Zn, CuMeasured 244,000 0.50 750 1.71 4,164 Indicated 593,000 0.50 1,720 2.42 14,340 Inferred 351,000 0.30 819 1.26 4,407 Sub-total 1,118,000 0.43 3,289 1.93 22,911 Small variations may occur due to rounding of numbers.0.2 % Cu cut-offCategoryTonnes (t)GoldCopperCobaltNickelZinc 0.3 g/t Au cut-off1 g/t Au cut-off0% cut-off0.3 % Ni cut-off52,031 0.4 % Zn cut-offTotalGold OuncesCopper TonnesCobalt TonnesNickel TonnesZinc TonnesMeasured, Indicated and inferred480,137 90,581 6,868 6,938
Annual Mineral Resources Statement 30 June 2020
Material Changes and Resource Statement Comparison
The Company during this year has continued to review and report its mineral resources at least annually and provide an
Annual Mineral Resources Statement. The date of reporting is 30 June each year, to coincide with the Company’s end of
financial year balance date. If there are any material changes to its mineral resources over the course of the year, the
Company is required to promptly report these changes. In completing the annual review for the year ended 30 June 2020,
the historical resource factors for Projects were reviewed and found to be relevant and current.
Governance Arrangements and Internal Controls
Artemis has ensured that the mineral resources quoted are subject to good governance arrangements and internal controls.
The mineral resources reported have been generated by independent external consultants who are experienced in best
practices in modelling and estimation methods. The consultants have also undertaken reviews of the quality and suitability
of the underlying information used to generate the resource estimation. In addition, Artemis’ management carries out regular
reviews of internal processes and external contractors that have been engaged by the Company.
The Carlow Castle, Weerianna, Radio Hill, Ruth Well and Whundo mineral resources were compiled in accordance with the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code) 2012 Edition. The
Ayshia-Whundo mineral resource was compiled in accordance with the ‘Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’ (JORC Code) 2004 Edition.
Competent Person Statements
The information in this statement that relates to Exploration Results and Exploration Targets is based on information
compiled or reviewed by Allan Younger, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Younger
is a consultant to the Company. Mr Younger has sufficient experience that is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr
Younger consents to the inclusion in this statement of the matters based on his information in the form and context in which
it appears.
ASX Announcement, Artemis Resources – 19 December 2018
2018 estimate (Geostat Services). Cut-off grade 1.0% Au. Estimated according to JORC Code (2012).
ASX Announcement, Artemis Resources – 20 November 2019
2019 estimate (CSA Global). Cut-off grade 0.3% Cu and Co, 0.3ppm Au. Estimated according to JORC Code (2012).
ASX Announcement, Artemis Resources – 21 December 2018
2018 estimate (AM&A). Cut-off grade 0.0% Cu. Estimated according to JORC Code (2012).
ASX Announcement, Artemis Resources – 7 May 2019
2019 estimate (AM&A). Cut-off grade 0.3% Ni. Estimated according to JORC Code (2012).
ASX Announcement, Artemis Resources – 26 October 2018
2018 estimate (AM&A). Cut-off grade 0.2% Cu. Estimated according to JORC Code (2012).
ASX Announcement, Fox Resources – 3 October 2007
2006 estimate (RSG Global) Cut-off grade 0.4% Zn. Estimated according to JORC Code (2004).
Weerianna:
•
•
Carlow Castle:
•
•
Radio Hill:
•
•
Ruth Well:
•
•
Whundo:
•
•
Ayshia-Whundo:
•
•
Artemis Resources Limited Annual Financial Report – June 2020
17| P a g e
Tenements 30 June 2020
Artemis Resources Limited Annual Financial Report – June 2020
18| P a g e
ProjectTenementStatusCompanyProjectTenementStatusCompanyL47/782PendingKML No 2 Pty LtdP47/1112LiveKML No 2 Pty LtdP47/1126LiveKML No 2 Pty LtdP47/1925LiveKML No 2 Pty LtdP47/1929LiveKML No 2 Pty LtdE47/2716LiveKML No 2 Pty LtdE47/3719LiveKML No 2 Pty LtdM47/1527LiveKML No 2 Pty LtdE47/3487¹LiveElysian Resources Pty LtdE47/3373LiveKML No 2 Pty LtdE47/3341¹LiveHard Rock Resources Pty LtdE47/3707LiveKML No 2 Pty LtdE47/3361¹LiveElysian Resources Pty LtdE47/3708LiveKML No 2 Pty LtdE47/3709LiveKML No 2 Pty LtdE47/3564¹LiveElysian Resources Pty LtdE47/3545PendingKML No 2 Pty LtdE47/3340¹LiveHard Rock Resources Pty LtdE47/3546LiveKML No 2 Pty LtdE47/3390¹LiveHard Rock Resources Pty LtdE47/3547LiveKML No 2 Pty LtdP47/1832¹LiveHard Rock Resources Pty LtdE47/3612LiveKML No 2 Pty LtdP47/1881¹LiveHard Rock Resources Pty LtdE47/3160LiveKML No 2 Pty LtdE47/3534¹LiveJindalee Resources Pty LtdE47/3322⁵LiveKarratha Metals Pty LtdE47/3535¹PendingJindalee Resources Pty LtdM47/123⁵LivePlatina Resources LtdP47/1833¹PendingJindalee Resources Pty LtdM47/124⁵LivePlatina Resources LtdL47/820PendingKML No 2 Pty LtdM47/125⁵LivePlatina Resources LtdL47/163LiveFox Radio Hill Pty LtdM47/126⁵LivePlatina Resources LtdM47/7LiveFox Radio Hill Pty LtdMt ClementM08/191⁶LiveArtemis Resources LtdM47/9LiveFox Radio Hill Pty LtdM08/192⁶LiveArtemis Resources LtdM47/161LiveFox Radio Hill Pty LtdM08/193⁶LiveArtemis Resources LtdM47/337LiveFox Radio Hill Pty LtdL47/93LiveFox Radio Hill Pty LtdWeeriannaM47/223²LiveWestern Metals Pty Ltd¹ – 70% Artemis – Karratha Gold Joint VentureM47/177¹LiveWestern Metals Pty Ltd² – 80% ArtemisM47/288¹LiveWestern Metals Pty Ltd³ – 70% ArtemisM47/93⁴LiveShear Zone Mining Pty Ltd⁴ – 34% ArtemisM47/232⁴LiveShear Zone Mining Pty Ltd⁵ – 70% Artemis – Joint Venture with Platina ResourcesL47/781PendingKML No 2 Pty Ltd⁶ – 80% Artemis - Joint Venture with Northern Star Resources⁶⁶E47/1746LiveKML No 2 Pty LtdTelferE45/5276LiveArmada Mining Pty LtdSilica HillsRuth Well47 PatchKML No 2 Pty LtdP47/1622Elysian / Hard RockWhundoRadio HillBalmoralGreater Munni MunniMunni MunniLiveCarlow CastleE47/1797LiveKML No 2 Pty LtdSing WellNichol RiverPurdy’s Reward
Corporate Governance Statement
Artemis, through its Board and executives, recognises the need to establish and maintain corporate
governance policies and practices that reflect the requirements of the market regulators and
participants, and the expectations of members and others who deal with Artemis. These policies and
practices remain under constant review as the corporate governance environment and good practices
evolve,
ASX Corporate Governance Principles and Recommendations
The third edition of ASX Corporate Governance Council Principles and Recommendations (the
“Principles”) sets out recommended corporate governance practices for entities listed on the ASX.
The Company has issued a Corporate Governance Statement which discloses the Company’s corporate
governance practices and the extent to which the Company has followed the recommendations set
out in the Principles. The Corporate Governance Statement was approved by the Board on 29
September 2020 and is available on the Company’s website:
https://artemisresources.com.au/company/corporate-governance
Artemis Resources Limited Annual Financial Report – June 2020
19| P a g e
Directors’ Report
The Directors of Artemis Resources Limited submit herewith the financial report of Artemis Resources
Limited (“Artemis” or “Company”) and its subsidiaries (referred to hereafter as the “Group”) for the
year ended 30 June 2020. In order to comply with the provisions of the Corporations Act 2001, the
directors report as follows:
The names of the Directors who held office during or since the end of the year and until the date of
this report are as follow:
Mark Potter
Alastair Clayton
Edward Mead
Daniel Smith
H.H. Sheikh Maktoum Hasher
al Maktoum
Non-Executive Chairman (appointed 24 February 2020)
Executive Director (appointed 29 January 2020)
Executive Director
Non-Executive Director
Non-Executive Chairman (resigned 24 February 2020)
Current Directors
MR MARK POTTER
Non-Executive Chairman
Mr Mark Potter has over 15 years’ experience in natural resource
investments. He currently serves as a Director and Chief Investment
Officer of Metal Tiger PLC, a natural resources company quoted on the
AIM market of the London Stock Exchange, and is the Founder and a
Partner of Sita Capital Partners LLP, an investment management and
advisory firm specializing in investments in the mining industry.
Mr Potter has worked on several landmark deals in the mining sector
including the successful distressed investment and turnaround of
Western Coal Corp and its c$3.3bn sale to Walter Energy Inc. He has a
MA degree in Engineering and Management from Trinity College,
University of Cambridge.
Mr Potter is a Non-Executive Director of Trident Resources Plc and a
Non-Executive Director of Thor Mining Plc.
Interest in Securities as at 25 September 2020:
Fully paid ordinary shares: Nil
Unlisted options: 10,000,000
MR ALASTAIR
CLAYTON
Executive Director
Mr. Clayton is based in London and is a qualified geologist and mining
executive with extensive experience in evaluating, optimising and
financing large scale mining projects internationally.
Alastair has over 20 years’ experience in identifying, financing and
developing mineral, energy and materials processing projects in
Australia, Europe and Africa. A qualified geologist, Alastair also has a
Graduate Diploma in Finance and Economics and maintains a broad
network of Equity Provider and Private Equity relationships in both
Europe, Africa and Australia.
Mr Clayton has considerable experience with both ASX and AIM listed
companies. In his role at Primorus Investments AIM:PRIM, Mr Clayton
has been a vocal supporter of the Patersons Range area and
understands the significant potential the Company holds as the Artemis
Artemis Resources Limited Annual Financial Report – June 2020
20| P a g e
Directors’ Report
MR EDWARD MEAD
Executive Director
MR DANIEL SMITH
Non-Executive Director
Company Secretary
MR GUY ROBERTSON
project surrounds Haverion. Mr Clayton was previously a Director of
Extract Resources and Universal Coal.
Interest in Securities as at 25 September 2020:
Fully paid ordinary shares: 500,000
Unlisted options: 60,000,000
Mr Edward Mead is a geologist with over 25 years’ experience in gold
and base metals exploration, mine development and mine production.
Mr Mead has also worked in the oil and gas industry on offshore drilling
platforms. Other commodities that he has significant experience with
are iron ore, magnetite, coal, manganese, lithium, potash and uranium.
Mr Mead has a Bachelor of Science (Geology) from Canterbury
University in New Zealand and is a member of the Australian Institute
of Mining and Metallurgy.
Mr Mead is a director of White Cliff Minerals Limited. Mr Mead was
appointed as a Director on 31 December 2014.
Interest in Securities as at 25 September 2020:
Fully paid ordinary shares: 4,483,870
Unlisted options: 7,500,000
Mr Daniel Smith holds a Bachelor of Arts, is a member of the Australian
Institute of Company Directors and a Fellow of the Governance Institute
of Australia with a strong background in finance having previously
worked in the broking industry. Mr Daniel Smith has 12 years’ primary
and secondary capital markets expertise and has advised on and been
involved in a number of IPOs, RTOs and capital raisings on the ASX, AIM
and NSX.
Mr Smith is a non-executive chairman of Alien Metals Limited, non-
executive director and company secretary of Europa Limited, Hipo
Resources Limited and Lachlan Star Limited, and is company secretary
of Taruga Minerals Limited and Vonex Limited.
Interest in Securities as at 25 September 2020:
Unlisted options: 9,500,000
Mr Guy Robertson was appointed Company Secretary on 12 November
2009.
Mr Robertson has over 30 years’ experience as a Director, CFO and
Company Secretary of both public (ASX- listed) and private companies
in both Australia and Hong Kong. He has had significant experience in
due diligence, acquisitions, IPOs and corporate management. Mr
Robertson has a Bachelor of Commerce (Hons) and is a Chartered
Accountant. He is a director of Hastings Technology Metals Ltd and
Metal Bank Limited and was previously a director of Bellevue Gold
Limited.
Artemis Resources Limited Annual Financial Report – June 2020
21| P a g e
Directors’ Report
Interest in Securities as at 25 September 2020:
Fully paid ordinary shares: 5,000,000
Significant Changes in State of Affairs
There were no significant changes in the state of affairs of the Company during the year.
Principle Activities
The principal activity of the Company during the financial year was mineral exploration and the re-
commissioning of the Fox Radio Hill Plant. There have been no significant changes in the nature of the
Company’s principal activities during the financial year.
Significant Events after Balance Sheet Date
Subsequent to year end the Company:
- Raised approximately $5.6 million through the placement of 79,992,856 shares at 7 cents per
share.
- Sold its Mt Clement project to Northern Star Resources Ltd for $344,000 and a 1% NSR (Net
Smelter Royalty)
- Sold its investment in Novo Resources Corp shares for approximately $5.78m in cash.
Other than as outlined above there are no currently no matters or circumstances that have arisen
since the end of the financial year that have significantly affected or may significantly affect the
operations the Group, the results of those operations, or the state of affairs of the Group in the future
financial years.
Likely Future Developments and Expected Results
The primary objective of Artemis is to explore its current tenements in Australia with a view to
determining an economically viable gold resource for processing at the Fox Radio Hill processing plant.
Performance in relation to Environmental Regulation
The Group will comply with its obligations in relation to environmental regulation on its projects when
it undertakes exploration. The Directors are not aware of any breaches of any environmental
regulations during the period covered by this Report.
Operating Results and Financial Review
The loss of the Group after providing for income tax amounted to $12,273,340 (2019: loss of
$9,347,739). The loss position for the year includes non-cash items comprising a write off of
exploration costs of $9,318,149, loss on disposal of exploration expenditure of $769,898, fair value
gain on financial assets of $3,666,670, fair value loss on financial instruments designated as fair value
through profit or loss of $155,519 and share based payments in the amount of $1,340,163.
The Group’s operating income increased to $188,506 (2019: $12,127). The Group’s expenses
increased to $15,203,099 (2019: $9,359,866). The increase was attributable to the impairment of
Artemis Resources Limited Annual Financial Report – June 2020
22| P a g e
Directors’ Report
projects, including the impairment of the acquisition costs associated with the conglomerate gold
project sold to Novo Resources Inc. announced in March 2020.
The carrying value of exploration and development costs decreased to $25,773,132 (2019:
$37,027,656) reflecting the impairment of the carrying costs of exploration on the Company’s projects.
The development expenditure has increased to $23,414,154 (2019: $23,353,620) reflecting
refurbishment and repair works on the Radio Hill Plant.
Dividends Paid or Recommended
The Directors do not recommend the payment of a dividend and no dividend has been paid or declared
to the date of this Report.
Directors’ Meetings
The number of Directors' meetings (including committees) held during the year and the number of
meetings attended by each director were as follow:
Name of Director
Mark Potter
Alastair Clayton
E. Mead
D. Smith
H.H. Sheikh Maktoum
Board Meetings
Audit Committee
Meetings
Remuneration
Committee Meetings
Attended
Held
Attended
Held
Attended
Held
6
6
14
14
8
6
6
14
14
8
1
1
2
2
1
1
1
2
2
1
1
1
2
2
1
1
1
2
2
1
Held represents the number of meetings held during the time the director held office or was a member
of the relevant committee.
Indemnifying 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 Company against any
liability incurred by him or her in his or her 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.
During the financial year the Company paid insurance premiums of $36,297 in respect of a contract
insuring the directors and officers of the Group against any liability incurred in the course of their
duties to the extent permitted by the Corporations Act 2001. The insurance premiums relate to:
•
Costs and expenses incurred by the relevant officers in defending legal proceedings, whether
civil or criminal and whatever their outcome; and
Artemis Resources Limited Annual Financial Report – June 2020
23 | P a g e
Directors’ Report
•
Other liabilities that may arise from their position, with the exception of conduct involving wilful
breach of duty or improper use of information to gain a personal advantage.
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 proceeding 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.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2020 has been received and
can be found on page 33 of the financial report.
This Report is made in accordance with a resolution of the Directors.
Edward Mead
Director
30 September 2020
Artemis Resources Limited Annual Financial Report – June 2020
24| P a g e
Remuneration Report
Remuneration Report – Audited
The remuneration report, which has been audited, outlines the key management personnel
remuneration arrangements for the Company, in accordance with the requirements of the
Corporations Act 2001 and its regulations.
The remuneration report is set out under the following main headings:
A. Principles used to determine the nature and amount of remuneration
B. Details of remuneration
C. Service agreements
D. Share-based compensation
E. Additional disclosures relating to key management personnel
A. Principles used to determine the nature and amount of remuneration
The Board’s policy for determining the nature and amount of remuneration for Board members and
officers is as follows:
•
•
•
•
•
The remuneration policy, which sets the terms and conditions (where appropriate) for the
executive directors and other senior staff members, was developed by the Remuneration
Committee and ultimately approved by the Board;
In determining competitive remuneration rates, the Remuneration Committee may seek
independent advice on local and international trends among comparative companies and
industries generally. The Remuneration Committee examines terms and conditions for
employee incentive schemes, benefit plans and share plans. Independent advice may be
obtained to confirm that executive remuneration is in line with market practice and is
reasonable in the context of Australian executive reward practices. No remuneration
consultants were retained by the Group during the year;
The Company is a mineral exploration company, and therefore speculative in terms of
performance. Consistent with attracting and retaining talented executives, directors and senior
executives, such personnel are paid market rates associated with individuals in similar positions
within the same industry. Options and performance incentives may be issued particularly as the
Company moves from commercialisation to a producing entity and key performance indicators
such as profit and production can be used as measurements for assessing executive
performance;
Given the early stage of the Company’s projects it is not meaningful to track executive
compensation to financial results and shareholder wealth. It is also not possible to set
meaningful specific objective performance criteria for directors as this stage;
All remuneration paid to directors and officers is valued at the cost to the Company and
expensed. Where appropriate, shares given to directors, executives and officers are valued as
the difference between the market price of those shares and the amount paid by the director
or executive. Options are valued using the Black-Scholes methodology; and
Artemis Resources Limited Annual Financial Report – June 2020
25| P a g e
Remuneration Report
A. Principles used to determine the nature and amount of remuneration (continued)
•
The policy is to remunerate non-executive directors and officers at market rates for comparable
companies for time, commitment and responsibilities. Given the evolving nature of the Group’s
business, the Board, in consultation with independent advisors, determines payments to the
non-executive directors and reviews 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 $300,000
per annum. Fees for non-executive directors and officers are not linked to the performance of
the Company. However, from time to time and subject to obtaining all requisite shareholder
approvals, the directors and officers will be issued with securities as part of their remuneration
where it is considered appropriate to do so and as a means of aligning their interests with
shareholders.
B. Details of remuneration
(i) Details of Directors and Key Management Personnel
Current Directors
Mark Potter – Non-Executive Chairman (appointed 24 February 2020)
Alastair Clayton – Executive Director (appointed 29 January 2020)
Edward Mead – Executive Director (appointed 31 December 2014)
Daniel Smith – Non-Executive Director (appointed 5 February 2019)
Former Directors
H.H. Sheikh Maktoum – Non-Executive Chairman (resigned 24 February 2020)
Company Secretary
Guy Robertson
Key Management Personnel
Edward Mead – General Manager Exploration
Except as detailed in Notes (i) – (iii) to the Remuneration Report, no Director has received or become
entitled to receive, during or since the financial period, 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 Notes (i) – (iii) to the Remuneration Report, prepared in accordance with the Corporations
Regulations 2001, or the fixed salary of a full time employee of the Company.
Artemis Resources Limited Annual Financial Report – June 2020
26| P a g e
Remuneration Report
B. Details of remuneration (continued)
(ii) Remuneration of Directors and Key Management Personnel
The Remuneration Committee and the Board will assess the appropriateness of the nature and
amount of emoluments of such officers on a periodic basis by reference to relevant employment
market conditions with the overall objective of ensuring maximum stakeholder benefit from the
retention of a high quality Board and executive team. Remuneration of the Key Management
Personnel of the Group is set out below.
FY19/20
Name
M. Potter1
A. Clayton2
E. Mead
D. Smith
H.H. Sheikh
Maktoum3
G. Robertson
Base Salary
and Fees
Share
Based
Payments
$
28,095
135,297
230,000
50,004
80,000
18,300
541,696
$
47,846
359,436
165,294
281,880
140,000
86,700
1,081,156
Post
Employment
Super-
Contribution
$
-
-
-
-
-
-
-
Total
Equity based
%
63
73
42
85
64
83
$
75,941
494,733
395,294
331,884
220,000
105,000
1,622,852
1 Commenced 24 February 2020.
2 Commenced 29 January 2020.
3 Resigned during financial year.
FY18/19
Name
H.H. Sheikh
Maktoum
D. Lenigas1
A. Duncan-Kemp1
E. Mead
D. Smith2
W. Bramwell1
G. Robertson
Base Salary
and Fees
Share
Based
Payments
$
$
Post
Employment
Super-
Contribution
$
$
Total
Equity based
120,000
675,000
-
795,000
179,464
109,379
300,000
48,335
365,873
84,000
1,207,051
485,433
148,898
148,898
-
(6,393)
75,055
1,526,891
-
-
-
-
34,758
-
34,758
664,897
258,277
448,898
48,335
394,238
159,055
2,768,700
%
-
51
29
17
-
-
47
1 Resigned during the FY2019 financial year.
2 Commenced 5 February 2019.
Artemis Resources Limited Annual Financial Report – June 2020
27| P a g e
Remuneration Report
(iii) Use of remuneration consultants
The Company engaged BDO Remuneration and Reward Pty Ltd (“BDO”) as remuneration consultants
during the financial year for $9,250. There is no existing relationship with BDO and the Company and
as a result, the board is satisfied that the recommendations were made free from undue influence
and independent from any members of the key management personnel.
C. Service agreements
Component
Fixed remuneration
Contract duration
Notice by the
individual/company
Termination of
employment
(without cause)
Termination of
employment (with
cause) or by
individual
Non-executive
Chairman
$120,000
Ongoing
Executive
Director
$300,000
Ongoing
Executive
Director
$320,000
Ongoing
Non-executive
director
$50,000
Ongoing
1 month
3 months
3 months
1 month
On termination of employment without cause unexercised options are at the
discretion of the Board.
On termination for cause unexercised options will lapse. On termination by
employee unexercised options are at the discretion of the Board.
All Board members have letters of appointment, with remuneration and terms as stated.
D. Share-based compensation
(a) Options
The terms of each grant of options affecting remuneration in the previous, current or future reporting
periods are as are as follows:
Date option granted
Expiry date
Issue price of Shares
Number under option
30 April 2020
30 April 2020
31 July 2022
31 July 2023
5 cents
7 cents
43,500,000
43,500,000
The following options were cancelled during the year.
30 November 2017
30 June 2020
44 cents
6,000,000
The following options were issued and cancelled during the year.
31 July 2019
15 May 2022
8 cents
16,500,000
Artemis Resources Limited Annual Financial Report – June 2020
28| P a g e
Remuneration Report
Options granted as remuneration to Key Management Personnel in the previous, current and future
reporting periods:
Name
Date of grant
Expiry date
Number under
options
Grant date value
Mark Potter
Alastair Clayton
Edward Mead
Daniel Smith
Mark Potter
Alastair Clayton
Edward Mead
Daniel Smith
Edward Mead*
Daniel Smith*
30 April 2020
30 April 2020
30 April 2020
30 April 2020
30 April 2020
30 April 2020
30 April 2020
30 April 2020
22 July 2019
22 July 2019
31 July 2022
31 July 2022
31 July 2022
31 July 2022
31 July 2023
31 July 2023
31 July 2023
31 July 2023
15 May 2022
15 May 2022
* These options were cancelled on 27 February 2020
5,000,000
30,000,000
3,750,000
4,750,000
5,000,000
30,000,000
3,750,000
4,750,000
7,500,000
9,000,000
$65,050
$390,300
$48,787
$61,798
$75,350
$452,100
$56,512
$71,583
$123,750
$148,500
No options over ordinary shares were granted or exercised for directors and other key management
personnel as part of compensation during the year ended 30 June 2020.
The assessed fair value at grant date of options granted to the individuals is allocated equally over the
period from grant date to vesting date, and the amount is included in the remuneration tables above.
Fair values at the grant date are independently determined using a Black-Scholes option pricing model
that takes into account the exercise price, the term of the option, the impact of dilution the share
price at grant date and expected price volatility of the underlying shares, the expected dividend yield
and the risk-free interest rate for the term of the option.
(b) Performance Rights
No performance rights expense was recognised for the year end 30 June 2020 (2019: $288,982) in
relation to performance rights issued to Key Management Personnel.
All equity dealings with Directors have been entered into with terms and conditions no more
favourable than those that the entity would have adopted if dealing at arm’s length.
Artemis Resources Limited Annual Financial Report – June 2020
29| P a g e
Remuneration Report
E. Additional disclosures relating to key management personnel
Shares held by Directors and Key Management Personnel
FY19/20
Name
M. Potter1
A. Clayton2
E. Mead
D. Smith
G. Robertson
H.H. Sheikh Maktoum3
1 Commenced 24 February 2020.
2 Commenced 29 January 2020.
3 Resigned during financial year.
FY18/19
Name
H.H. Sheikh Maktoum
D. Lenigas1
A. Duncan-Kemp1
E. Mead
D. Smith2
W. Bramwell3
G. Robertson
Balance at the
beginning of the
year
Received as
remuneration
Net Change
Other
-
500,000
2,000,000
-
452,999
10,150,000
13,102,999
-
-
2,000,000
-
4,818,750
5,000,000
11,818,750
-
-
483,870
-
322,580
1,117,392
1,923,842
Balance at
resignation/
the end of year
-
500,000
4,483,870
-
5,594,329
16,267,392
26,845,591
Balance at the
beginning of the
year
5,000,000
25,000,000
-
2,000,000
-
-
452,999
32,452,999
Received as
remuneration
Net Change
Other
Balance at the
end of year
5,000,000
-
-
150,000
(25,000,000)3
-
-
-
-
-
-
-
-
-
5,000,000
(24,850,000)
10,150,000
-
-
2,000,000
-
-
452,999
12,602,999
¹Resigned during the FY2019 financial year.
2Commenced 5 February 2019.
3Resigned on 6 May 2019. All share option incentives were forfeited
Artemis Resources Limited Annual Financial Report – June 2020
30| P a g e
Remuneration Report
E. Additional disclosures relating to key management personnel (continued)
Options and performance rights held by Directors and Key Management Personnel
FY19/20
Name
Options
M. Potter1
A. Clayton2
E. Mead
D. Smith
G. Robertson
H.H. Sheikh Maktoum3
Performance Rights
M. Potter1
A. Clayton2
A. Duncan-Kemp1
E. Mead
D. Smith2
G. Robertson
H.H. Sheikh Maktoum3
1 Commenced 24 February 2020.
2 Commenced 29 January 2020.
3 Resigned during financial year.
Balance at
appointment/
the beginning of
the year
Received as
remuneration
Net Change
Other
Balance at
resignation/
the end of year
-
-
10,000,000
60,000,000
1,500,000
15,000,000
18,500,000
-
-
-
-
(9,000,000)
(9,000,000)
-
-
-
-
-
1,500,000
-
-
-
2,000,000
-
2,000,000
-
4,000,000
103,500,000
(18,000,000)
-
-
-
-
-
-
-
-
-
-
-
(2,000,000)
-
(2,000,000)
-
(4,000,000)
10,000,000
60,000,000
7,500,000
9,500,000
-
-
87,000,000
-
-
-
-
-
-
-
-
Artemis Resources Limited Annual Financial Report – June 2020
31| P a g e
Remuneration Report
E. Additional disclosures relating to key management personnel (continued)
FY18/19
Name
Options
H.H. Sheikh Maktoum
D. Lenigas1
A. Duncan-Kemp1
E. Mead
D. Smith2
W. Bramwell3
G. Robertson
Performance Rights
H.H. Sheikh Maktoum
D. Lenigas1
A. Duncan-Kemp1
E. Mead
D. Smith2
W. Bramwell
G. Robertson
Balance at the
beginning of the
year
Received as
remuneration
Net Change
Other
Balance at the
end of year
-
3,000,000
1,500,000
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
15,000,000
-
(15,000,000)
-
-
3,000,000
1,500,000
1,500,000
-
-
-
6,000,000
15,000,000
(15,000,000)
6,000,000
-
9,000,000
2,000,000
2,000,000
-
-
2,000,000
15,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,000,000
2,000,000
2,000,000
-
-
2,000,000
15,000,000
¹Resigned during the FY2019 financial year.
2Commenced 5 February 2019.
3Resigned on 6 May 2019. All share option incentives were forfeited.
Other transactions with key management personnel
Doraleda Pty Ltd1
Integrated CFO Solutions2
Minerva Corporate Pty Ltd3
Kiran Capital Advisors Limited4
ADK Mining Services
Consolidated
30 June 2020
$
30 June 2019
$
230,000
18,300
117,694
28,095
-
394,089
300,000
120,000
48,335
-
109,379
577,714
1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest.
2 Company secretary fees and consulting fees paid to Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest.
In 2019, these included fees of $36,000 for accounting services.
3 Director fees and consulting fees ($48,335) and accounting fees ($69,359) paid to Minerva Corporate Pty Ltd, a company in which Mr
Daniel Smith has an interest.
4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest
END OF AUDITED REMUNERATION REPORT
Artemis Resources Limited Annual Financial Report – June 2020
32| P a g e
AUDITOR’S INDEPENDENCE DECLARATION
As lead auditor for the audit of the consolidated financial report of Artemis Resources Limited for
the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have
been no contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to
the audit; and
(b)
any applicable code of professional conduct in relation to the audit.
Perth, Western Australia
30 September 2020
B G McVeigh
Partner
Artemis Resources Limited Annual Financial Report – June 2020
33 | P a g e
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2020
Consolidated
Revenue
Cost of sales
Fair value gain on financial assets
Loss on disposal of exploration expenditure
Personnel costs
Occupancy costs
Legal fees
Consultancy costs
Compliance and regulatory expenses
Directors’ fees
Travel
Marketing expenses
Borrowing costs
Other expenses
Project and exploration expenditure write off
Net fair value loss on financial instruments designated as
fair value through profit or loss
Share-based payments
Unrealised foreign exchange gain
LOSS BEFORE INCOME TAX
Income tax expense/benefit
LOSS FOR THE YEAR
Other comprehensive income, net of tax
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
LOSS FOR THE YEAR ATTRIBUTABLE TO:
Owners of the parent entity
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
ATTRIBUTABLE TO:
Owners of the parent entity
Basic loss per share - cents
Diluted loss per share - cents
Notes
3
30 June 2020
$
188,506
13
13
17
25
4
30 June 2019
$
12,127
(8,003)
-
-
(792,335)
(120,032)
(296,294)
(687,039)
(227,916)
(656,728)
(282,762)
(358,215)
(814,819)
(585,477)
(701,261)
(165,698)
3,666,670
(769,898)
(174,418)
(5,115)
(45,439)
(1,825,167)
(160,291)
(523,396)
(98,954)
(270,250)
(705,465)
(543,707)
(9,318,149)
(155,519)
(1,340,163)
(26,887)
(12,273,340)
-
(12,273,340)
-
(533,183)
(3,518,684)
222,882
(9,347,739)
-
(9,347,739)
-
(12,273,340)
(9,347,739)
(12,273,340)
(9,347,739)
(12,273,340)
(9,347,739)
23
23
(1.35)
(1.35)
(1.44)
(1.44)
The consolidated statement of profit or loss and other comprehensive income is to be read in
conjunction with the accompanying notes
Artemis Resources Limited Annual Financial Report – June 2020
34| P a g e
Consolidated Statement of Financial Position
As at 30 June 2020
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Assets held for sale
Inventories
Other financial assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Plant and equipment
Intangible assets
Right-of-use assets
Exploration and evaluation expenditure
Development expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Current lease liabilities
Employee benefits obligation
Financial liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Share capital
Reserves
Accumulated losses
Parent interests
TOTAL EQUITY
Consolidated
30 June 2020
$
Notes
30 June 2019
$
5
6
7
8
9
10
11
12
13
14
15
12
16
17
33
18
19
412,138
170,139
280,212
-
6,586,551
7,449,040
821,481
254,255
-
460,202
-
1,535,938
117,703
71,676
35,442
25,773,132
23,414,154
49,412,107
56,861,147
159,784
109,414
-
37,027,656
23,353,620
60,650,474
62,186,412
1,834,010
40,824
10,133
116,671
2,001,638
1,516,278
-
44,861
5,792,078
7,353,217
1,413,123
1,413,123
3,414,761
53,446,386
1,413,123
1,413,123
8,766,340
53,420,072
92,294,878
3,257,318
(42,105,810)
53,446,386
53,446,386
81,438,336
2,571,003
(30,589,267)
53,420,072
53,420,072
The consolidated statement of financial position should be read in conjunction with the
accompanying notes.
Artemis Resources Limited Annual Financial Report – June 2020
35| P a g e
Directors’ Declaration
30 June 2020
Consolidated
Balance at 1 July 2018
Loss for the year
Total comprehensive loss for the
year
Issue of shares
Share-based payments
Balance at 30 June 2019
Issued
Capital
$
79,127,087
-
Reserves
$
724,999
-
Accumulated
Losses
$
(21,241,528)
(9,347,739)
Total
Equity
$
58,610,558
(9,347,739)
-
-
(9,347,739)
(9,347,739)
2,311,249
-
81,438,336
-
1,846,004
2,571,003
-
-
(30,589,267)
2,311,249
1,846,004
53,420,072
Consolidated
Balance at 1 July 2019
Loss for the year
Total comprehensive loss for the
year
Issue of shares
Conversion of performance rights
Lapse of performance rights
Share-based payments
Balance at 30 June 2020
Issued
Capital
$
81,438,336
-
Reserves
$
2,571,003
Accumulated
Losses
$
(30,589,267)
- (12,273,340)
Total
Equity
$
53,420,072
(12,273,340)
-
-
(12,273,340)
(12,273,340)
10,581,342
275,200
-
-
92,294,878
-
(275,200)
(756,797)
1718,312
3,257,318
- 10,581,342
-
-
756,797
-
1,535,745
-
53,446,386
(42,105,810)
The consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
Artemis Resources Limited Annual Financial Report – June 2020
36| P a g e
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Financing cost
Receipts from government grants & tax incentives
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments
Payments for exploration and evaluation
Payment for development expenditure
Purchase of plant and equipment & office equipment
Proceeds from sale of plant and equipment
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares
Cost of share issue
Exercise of options
Repayment of short-term loan
Repayment of lease liabilities
Proceeds from convertible note, net of costs
Repayment of convertible note
NET CASH PROVIDED BY FINANCING ACTIVITIES
Consolidated
30 June
2020
$
30 June
2019
$
11,249
(2,113,526)
3,289
(118,371)
131,538
(2,085,821)
820,000
(2,954,960)
(49,172)
-
-
(2,184,132)
9,878,813
(529,633)
-
(225,988)
(100,946)
-
(5,162,725)
3,859,521
26
27
27
27
74,656
(4,196,221)
5,127
(478,367)
-
(4,594,805)
208,880
(10,700,937)
(13,241,243)
(133,315)
6,747
(23,859,868)
-
-
202,485
-
-
5,236,354
(3,433,870)
2,004,969
Net decrease in cash held
Cash at the beginning of the period
Effects of exchange rate changes on the balance of cash
held in foreign currencies
CASH AT THE END OF THE YEAR
(410,432)
821,481
(26,449,704)
27,048,303
1,089
222,882
5
412,138
821,481
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
Artemis Resources Limited Annual Financial Report – June 2020
37| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
Standards, Australian Accounting
The financial report is a general purpose financial report prepared in accordance with Australian
Accounting
authoritative
pronouncements of the Australian Standards Board, International Financial Reporting Standards
as issued by the International Accounting Standards Board and the requirements of the
Corporations Act 2001. The Group is a for profit entity for financial reporting purposes under
Australian Accounting Standards.
Interpretations,
other
Australian Accounting Standards set out accounting policies that the AASB has concluded would
result in a financial report containing relevant and reliable information about transactions, events
and conditions. Compliance with Australian Accounting Standards ensures that the financial
statements and notes also comply with International Financial Reporting Standards. Material
accounting policies adopted in the preparation of this financial report are presented below and
have been consistently applied unless otherwise stated.
The consolidated financial statements have been prepared on the basis of historical costs, except
for the revaluation of certain non-current assets and financial instruments. Cost is based on the
fair values of the consideration given in exchange for assets. All amounts are presented in
Australian dollars, unless otherwise stated.
The financial statements are presented in Australian dollars which is Artemis Resources Limited’s
functional and presentation currency.
These financial statements were authorised for issue on 29 September 2020.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and
entities controlled by the Company and its subsidiaries. Control is achieved when the Company:
• has power over the investee;
•
• has the ability to its power to affect its returns.
is exposed, or has rights, to variable returns from its involvement in with the investee; and
The Company reassess whether or not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements listed above.
When the Company has less than a majority of the voting rights if an investee, it has the power
over the investee when the voting rights are sufficient to give it the practical ability to direct the
relevant activities of the investee unilaterally. The Company considers all relevant facts and
circumstances in assessing whether or not the Company’s voting rights are sufficient to give it
power, including:
•
the size of the Company’s holding of voting rights relative to the size and dispersion of
holdings of the other vote holders;
Artemis Resources Limited Annual Financial Report – June 2020
38| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• potential voting rights held by the Company, other vote holders or other parties; rights
arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not
have, the current ability to direct the relevant activities at the time that decisions need to
be made, including voting patterns at previous shareholder meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and
ceases when the Company loses control of the subsidiary. Specifically income and expenses of a
subsidiary acquired or disposed of during the year are included in the consolidated statement of
profit or loss and comprehensive income from the date the Company gains control until the date
when the Company ceases to control the subsidiary.
Changes in the Group’s ownership interest in subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as equity transactions. The carrying amounts of
the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their
relative interests in subsidiaries. Any difference between the amount paid by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is
recognised directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and is
calculated as the difference between:
• The aggregate of the fair value of the consideration received and the fair value of any
retained interest; and
• The previous carrying amount of the assets (including goodwill), and liabilities of the
subsidiary and any non-controlling interests.
All amounts previously recognised in other comprehensive income in relation to that subsidiary
are accounted for as if the Group had directly disposed of the related assets or liabilities of the
subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as
specified/permitted by the applicable AASBs). The fair value of any investment retained in the
former subsidiary at the date when control is lost is regarded as the fair value on initial recognition
for subsequent accounting under AASB 139, when applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a
combination involving entities or businesses under common control. The business combination
will be accounted for from the date that control is attained, whereby the fair value of the
identifiable assets acquired and liabilities (including contingent liabilities) assumed is recognised
(subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability
resulting from a contingent consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as equity is not remeasured and its subsequent
Artemis Resources Limited Annual Financial Report – June 2020
39| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
settlement is accounted for within equity. Contingent consideration classified as an asset or
liability is remeasured each reporting period to fair value, recognising any change to fair value in
profit or loss, unless the change in value can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the
consolidated statement of comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain
purchase.
New and revised Standards and amendments thereof and Interpretations effective for the
current year that are relevant to the Group
The Group has adopted all of the new and revised Standards and Interpretations issued by the
Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective
for annual reporting periods beginning on or after 1 July 2019. The Group has applied for the first
time AASB 16 “Leases”, the impact of which is described below.
AASB 16 Leases
The Group currently leases office space for its corporate office, and previously Karratha office.
Impact of application of AASB 16 Leases (“AASB 16”)
AASB 16 provides a model for the identification and treatment of lease arrangements in the
financial statements. AASB 16 superseded the lease guidance including AASB 117 Leases and the
related Interpretations, when it became effective for the Group for the accounting period
beginning 1 July 2019.
The Group has chosen the modified retrospective application of AASB 16. Consequently, the
Group has not restated the comparative information.
Artemis Resources Limited Annual Financial Report – June 2020
40| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impact of the new definition of a lease
The Group has made use of the practical expedient available on transition to AASB 16 not to
reassess whether a contract is or contains a lease. Accordingly, the definition of a lease in
accordance with AASB 117 and Interpretation 4 will continue to apply to those leases entered or
modified before 1 July 2019.
The change in definition of a lease mainly relates to the concept of control. AASB 16 distinguishes
between leases and service contracts on the basis of whether the use of an identified asset is
controlled by the customer. Control is considered to exist if the customer has:
•
•
The right to obtain substantially all of the economic benefits from the use of an
identified asset; and
The right to direct the use of that asset.
The Group has applied the definition of a lease and related guidance set out in AASB 16 to all lease
contracts entered into or modified on or after 1 July 2019. The Directors have determined that
the new definition in AASB 16 will not change significantly the scope of contracts that meet the
definition of a lease for the Group.
Operating leases
AASB 16 has changed how the Group accounts for leases previously classified as operating leases
under AASB 117, which were off-balance sheet.
On initial application of AASB 16, for all leases (except as noted below), the Group has:
(a)
(b)
(c)
Recognised Right-of-Use assets (“ROU Assets”) and lease liabilities in the consolidated
statement of financial position, initially measured at the present value of the future
lease payments;
Recognised depreciation of ROU Assets and interest on lease liabilities in the
consolidated statement of profit or loss; and
Separated the total amount of cash paid into a principal portion (presented within
financing activities) and interest (presented within operating activities) in the
consolidated cash flow statement.
Under AASB 16 lease incentives (e.g. rent-free period) are recognised as part of the measurement
of the ROU Assets and lease liabilities. Previously lease incentives resulted in the recognition of a
lease liability incentive amortised as a reduction of rental expenses on a straight-line basis.
Under AASB 16, ROU Assets will be tested for impairment in accordance with AASB 136
Impairment of Assets. This replaces the previous requirement to recognise a provision for onerous
lease contracts.
For short-term leases (lease term of 12 months or less) and leases of low-value assets the Group
opted to recognise a lease expense on a straight-line basis as permitted by AASB 16.
Artemis Resources Limited Annual Financial Report – June 2020
41| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Group recognised ROU Assets with a net book value of $141,770 and corresponding lease
liabilities of $141,770 at 1 July 2019. After accounting for depreciation and lease principal
payments during the financial year, balances as at 30 June 2020 were ROU Assets with a net book
value of $35,442 and lease liabilities of $40,824.
The impact on the consolidated statement of profit or loss (increase/(decrease)) for the period is:
Expense
Tenancy and operating
Depreciation expense
Finance costs
Net impact on loss for
the period
$
105,317
Notes
Rent expense on previously recognised operating lease
(106,327) Depreciation of lease asset recognised under AASB 16
(4,372)
Interest on lease recognised under AASB 16
(5,382)
Under AASB 117, lease payments from operating leases were included in cash flows from
operating activities. Under AASB 16 lease repayments are included in cash flows from financing
activities. The impact on cash flows for the period from adopting AASB 16 is to increase cash flows
from financing activities by $100,946 to reduce cash flows from operating activities by $100,946.
There is no impact on other comprehensive income and the basic and diluted EPS.
Determination of whether variable payments are in-substance fixed
For lease agreements subject to lease payments with fixed increases, the Group factored in the
fixed increases into the calculation of the lease liability. The Group has no lease agreements
subject to lease payments based on a variable index.
Determination of the appropriate rate to discount the lease payments
The Group estimated the incremental borrowing rate applicable to its lease as the rate of interest
that a lessee would have to pay to borrow over a similar term and with similar security the funds
necessary to obtain an asset of a similar value to the ROU Asset. The estimate was based on a risk
adjusted rate and considered the materiality of the impacts of applying a range of interest rates.
The incremental borrowing rate applied is 5%.
The following is a reconciliation of total operating lease commitments at 30 June 2019 to the lease
liabilities recognised at 1 July 2019:
Operating lease commitments disclosed at 30 June 2019
Short term leases outside the scope of AASB16
Less: discount applied using incremental borrowing rate
Lease liability recognised at 1 July 2019
Right-of-Use asset (value determined solely with reference to the lease liability
value)
The recognised ROU Asset relates to office premises.
$
198,915
(51,969)
(5,176)
141,770
141,770
Artemis Resources Limited Annual Financial Report – June 2020
42| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Summary of new accounting policies
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date
the underlying asset is available for use). Right-of-use assets are measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the commencement date less any
lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased
asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-
line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are
subject to impairment.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in-substance fixed payments) less any lease incentives receivable, variable
lease payments that depend on an index or a rate, and amounts expected to be paid under
residual value guarantees. The lease payments also include the exercise price of a purchase option
reasonably certain to be exercised by the Group and payments of penalties for terminating a lease,
if the lease term reflects the Group exercising the option to terminate. The variable lease
payments that do not depend on an index or a rate are recognised as expense in the period on
which the event or condition that triggers the payment occurs. In calculating the present value of
lease payments, the Group uses the incremental borrowing rate at the lease commencement date
if the interest rate implicit in the lease is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the in-substance fixed lease payments
or a change in the assessment to purchase the underlying asset.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of
machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the
commencement date and do not contain a purchase option). It also applies the lease of low-value
assets recognition exemption to leases of office equipment that are considered of low value (i.e.,
below $5,000). Lease payments on short-term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.
Future Accounting Standards or Interpretations
Any new, revised or amending Accounting Standards or Interpretations that are yet to be
mandatory have not been early adopted.
The Directors have also reviewed all the new and revised Standards and Interpretations in issue
not yet adopted for the year ended 30 June 2020.
Artemis Resources Limited Annual Financial Report – June 2020
43| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Going Concern
For the year ended 30 June 2020, the Group recorded a loss of $12,273,340 (2019: Loss of
$9,347,739) and had net cash outflows from operating activities of $2,085,821 (2019: $4,594,805)
and has a net working capital surplus of $5,447,402 as at 30 June 2020 (2019: a net deficit of
$5,817,279).
The Directors believe that it is reasonably foreseeable that the Company and Group will continue
as a going concern and that it is appropriate to adopt the going concern basis in the preparation
of the financial report after consideration of the following factors:
• The Group has cash at bank of $412,138 and net assets of $53,446,386 as at 30 June 2020;
• The Company has realised approximately $5.8m from sale of investments subsequent to year
end;
• The ability of the Group to scale back certain parts of their activities that are non-essential so
as to conserve cash;
• The Group retains the ability, if required, to wholly or in part dispose of interests in mineral
exploration and development assets;
• The Company has raised approximately $5.6 million in new equity subsequent to balance date
and Directors are of the view that should the Company require additional capital it has the
ability to raise further capital to enable the Group to meet scheduled exploration expenditure
requirements and future plans on the development assets; and
These factors indicate a material uncertainty which may cast significant doubt as to whether the
Company and Group will continue as a going concern and therefore whether they will realise their
assets and extinguish their liabilities in the normal course of business and at the amounts stated
in the financial report.
Artemis Resources Limited Annual Financial Report – June 2020
44| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income taxes
The income tax expense (benefit) for the year comprises current income tax expense (income)
and deferred tax expense (income). Current income tax expense charged to the statement of
profit or loss and other comprehensive income is the tax payable on taxable income calculated
using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current
tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered
from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability
balances during the year as well unused tax losses. Current and deferred income tax expense
(income) is charged or credited directly to equity instead of the profit or loss when the tax relates
to items that are credited or charged directly to equity. Deferred tax assets and liabilities are
ascertained based on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements. Deferred tax assets also result where
amounts have been fully expensed but future tax deductions are available. No deferred income
tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates enacted or
substantively enacted at reporting date. Their measurement also reflects the manner in which
management expects to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only
to the extent that it is probable that future taxable profit will be available against which the
benefits of the deferred tax asset can be utilised. Where temporary differences exist in relation
to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and
liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it
is intended that net settlement or simultaneous realisation and settlement of the respective asset
and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable
right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the
same taxation authority on either the same taxable entity or different taxable entities where it is
intended that net settlement or simultaneous realisation and settlement of the respective asset
and liability will occur in future periods in which significant amounts of deferred tax assets or
liabilities are expected to be recovered or settled.
Artemis Resources Limited Annual Financial Report – June 2020
45| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation costs
Exploration and evaluation expenditures in relation to each separate area of interest are
recognised as an exploration and evaluation asset in the year in which they are incurred where
the following conditions are satisfied:
the rights to tenure of the area of interest are current; and
•
• at least one of the following conditions is also met:
➢ the exploration and evaluation expenditures are expected to be recouped through
successful development and exploitation of the area of interest, or alternatively, by
its sale; or
➢ exploration and evaluation activities in the area of interest have not at the balance
date reached a stage which permits a reasonable assessment of the existence or
otherwise of economically recoverable reserves, and active and significant operations
in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights
to explore, studies, exploratory drilling, trenching and sampling and associated activities and an
allocation of depreciation and amortised of assets used in exploration and evaluation activities.
General and administrative costs are only included in the measurement of exploration and
evaluation costs where they are related directly to operational activities in a particular area of
interest.
Exploration and evaluation assets 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 (for the
cash generating unit(s) 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 has been 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.
In determining the costs of site restoration, there is uncertainty regarding the nature and extent
of the restoration due to community expectations and future legislation. Accordingly, the costs
have been determined on the basis that the restoration will be completed within one year of
abandoning the site.
Artemis Resources Limited Annual Financial Report – June 2020
46| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Financial Instruments
Recognition and initial measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the
contractual provisions of the financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial
asset expire, or when the financial asset and substantially all the risks and rewards are transferred.
A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.
Classification and subsequent measurement
All financial assets are initially measured at fair value adjusted for transaction costs (where
applicable). For the purpose of subsequent measurement, all the financial assets, are classified as
amortised cost.
All income and expenses relating to financial assets that are recognised in profit or loss are
presented within finance costs, finance income or other financial items, except for impairment of
other receivables which is presented within other expenses.
(i) Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and
are not designated as FVTPL):
•
•
they are held within a business model whose objective is to hold the financial assets
to collect its contractual cash flows
the contractual terms of the financial assets give rise to cash flows that are solely
payments of principal and interest on the principal amount outstanding.
After initial recognition, these are measured at amortised cost using the effective interest method.
Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash
equivalents, and most other receivables fall into this category of financial instruments.
Other receivables
The Group makes use of a simplified approach in accounting for other receivables as well as
contract assets and records the loss allowance as lifetime expected credit losses. These are the
expected shortfalls in contractual cash flows, considering the potential for default at any point
during the life of the financial instrument. In calculating, the Group uses its historical experience,
external indicators and forward-looking information to calculate the expected credit losses using
a provision matrix.
The Group assess impairment of other receivables on a collective basis as they possess shared
credit risk characteristics they have been grouped based on the days past due.
Artemis Resources Limited Annual Financial Report – June 2020
47| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative
financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for
transaction costs unless the Group designated a financial liability at fair value through profit or
loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest
method except for derivatives and financial liabilities designated at FVTPL, which are carried
subsequently at fair value with gains or losses recognised in profit or loss (other than derivative
financial instruments that are designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that are
reported in profit or loss are included within finance costs or finance income.
Inventories
Inventories are valued at the lower of cost and net realisable value.
Gold bullion, base metal concentrate, metal in circuit and ore stockpiles are physically measured
or estimated and valued at the lower of cost or net realisable value. Net realisable value is the
estimated selling price (in the ordinary course of business), less estimated costs of completion and
costs of selling final product.
Cost is determined using the weighted average method and comprises direct purchase costs and
an appropriate portion of fixed and variable overhead costs, including depreciation and
amortisation (if applicable).
Materials and supplies are valued at the lower of cost or net realisable value. Any provision for
obsolescence is determined by reference to specific items of stock. A regular review is undertaken
to determine the extent of any provision for obsolescence.
Plant and equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable,
any accumulated depreciation and impairment losses. Plant and equipment are measured on the
cost basis.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the company and the cost of the item can be measured reliably. All other repairs and
maintenance are charged to the income statement during the financial period in which they are
incurred.
Artemis Resources Limited Annual Financial Report – June 2020
48| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Derecognition and disposal
An item of plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying
amount of the asset) is included in profit or loss in the year the asset is derecognised.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
follows:
Plant and Equipment – ranging from 2 to 20 years
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date,
with recoverable amount being estimated when events or changes in circumstances indicate that
the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and
value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the asset belongs, unless the asset's value in use
can be estimated to approximate fair value.
An impairment exists when the carrying value of an asset or cash-generating unit exceeds its
estimated recoverable amount. The asset or cash-generating unit is then written down to its
recoverable amount.
For plant and equipment, impairment losses are recognised in the statement of profit or loss and
other comprehensive income in the cost of sales line item.
Intangible assets
Intangible assets acquired separately are recorded at cost less accumulated amortisation and
impairment. Amortisation is charged on a straight-line basis over their estimated useful lives. The
estimated useful life and amortisation method is reviewed at the end of each annual reporting
period, with any changes in these accounting estimates being accounted for on a prospective
basis.
Artemis Resources Limited Annual Financial Report – June 2020
49| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of intangible assets other than goodwill
The Group assesses at each balance date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount
is the higher of its fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets and the asset's value in use cannot be estimated to be close to its
fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down
to its recoverable amount.
Development expenditure
Development expenditure represent the accumulation of all exploration, evaluation and other
expenditure incurred in respect of areas of interest in which mining is in the process of
commencing. When further development expenditure is incurred after the commencement of
production, such expenditure is carried forward as part of the mine property only when
substantial future economic benefits are thereby established, otherwise such expenditure is
classified as part of the cost of production.
Restoration and rehabilitation
A provision for restoration and rehabilitation is recognised when there is a present obligation as
a result of development activities undertaken, it is probable that an outflow of economic benefits
will be required to settle the obligation, and the amount of the provision can be measured reliably.
The estimated future obligations include the costs of abandoning sites, removing facilities and
restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the
expenditure required to settle the restoration obligation at the balance date. Future restoration
costs are reviewed annually and any changes in the estimate are reflected in the present value of
the restoration provision at each balance date.
The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of
the related asset and amortised on the same basis as the related asset, unless the present
obligation arises from the production of inventory in the period, in which case the amount is
included in the cost of production for the period. Changes in the estimate of the provision for
restoration and rehabilitation are treated in the same manner, except that the unwinding of the
effect of discounting on the provision is recognised as a finance cost rather than being capitalised
into the cost of the related asset.
Artemis Resources Limited Annual Financial Report – June 2020
50| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of 3 months or less, and bank overdrafts. Bank
overdrafts are shown within short-term borrowings in current liabilities on the consolidated
statement of financial position.
Trade and other payables
Trade payables and other payables are carried at amortised cost and represent liabilities for goods
and services provided to the Group prior to the end of the financial year that are unpaid and arise
when the Group becomes obliged to make future payments in respect of the purchase of these
goods and services. Trade and other payables are presented as current liabilities unless payment
is not due within 12 months.
Employee leave benefits
Wages, salaries, annual leave and sick leave
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave
and sick leave expected to be settled within 12 months of the balance date are recognised in other
payables in respect of employees’ services up to the balance date. They are measured at the
amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick
leave are recognised when the leave is taken and are measured at the rates paid or payable.
Liabilities accruing to employees in respect of wages and salaries, annual leave, long service leave
and sick leave not expected to be settled within 12 months of the balance date are recognised in
non-current other payables in respect of employees’ services up to the balance date. They are
measured as the present value of the estimated future outflows to be made by the Group.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are not recognised for future operating losses.
Provisions are measured at the present value or management’s best estimate of the expenditure
required to settle the present obligation at the end of the reporting period. If the effect of the
time value of money is material, provisions are discounted using a current pre-tax rate that reflects
the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as an interest expense.
Artemis Resources Limited Financial Report – June 2020
51| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue recognition
Interest revenue is recognised using the effective interest method. It includes the amortisation of
any discount or premium.
Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred except
borrowing costs that are directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period to get ready for its intended use or sale. In this
case the borrowing costs are capitalised as part of the cost of such a qualifying asset.
The amount of borrowing costs relating to funds borrowed generally and used for the acquisition
of qualifying assets has been determined by applying a capitalisation rate to the expenditures on
those assets. The capitalisation rate comprises the weighted average of borrowing costs incurred
during the period.
Equity settled compensation
Share-based payments to employees are measured at the fair value of the instruments issued and
amortised over the vesting periods. Share-based payments to non-employees are measured at
the fair value of goods or services received or the fair value of the equity instruments issued, if it
is determined the fair value of the goods or services cannot be reliably measured, and are
recorded at the date the goods or services are received. The corresponding amount is recorded
to the option reserve. The fair value of options is determined using the Black-Scholes pricing
model. The number of shares and options expected to vest is reviewed and adjusted at the end
of each reporting period such that the amount recognised for services received as consideration
for the equity instruments granted is based on the number of equity instruments that eventually
vest.
Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the
amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances
the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the
expense. Receivables and payables in the consolidated statement of financial position are shown
inclusive of GST. Cash flows are presented in the consolidated statement of cash flows on a gross
basis, except for the GST component of investing and financing activities, which are disclosed as
operating cash flows.
Parent entity disclosures
The financial information for the parent entity, Artemis Resources Limited, has been prepared on
the same basis as the consolidated financial statements.
Artemis Resources Limited Financial Report – June 2020
52| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets and Liabilities Held for Sale
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will
be recovered principally through a sale transaction rather than through continuing use. This
condition is regarded as met only when the asset (or disposal group) is available for immediate
sale in its present condition subject only to terms that are usual and customary for sales for such
asset (or disposal groups) and the sale is highly probable. Management must be committed to the
sale, which should be expected to qualify for recognition as a complete sale within one year from
the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the
assets and liabilities of that subsidiary are classified as held for sale when the criteria described
above are met, regardless of whether the Group will retain a non-controlling interest in it former
subsidiary, after the sale.
Use of estimates and judgements
The preparation of 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.
Exploration and evaluation, and development expenditure carried forward
The Group capitalises expenditure relating to exploration and evaluation, and development,
where it is considered likely to be recoverable or where the activities have not reached a stage
which permits a reasonable assessment of the existence of reserves. While there are certain areas
of interest from which no reserves have been extracted, the directors are of the continued belief
that such expenditure should not be written off since feasibility studies in such areas have not yet
concluded.
The recoverability of the carrying amount of mine development expenditure carried forward has
been reviewed by the Directors. In conducting the review, the recoverable amount has been
assessed by reference to the higher of “fair value less costs to sell” and “value in use”. In
determining value in use, future cash flows are based on:
• Estimates of ore reserves and mineral resources for which there is a high degree of confidence
of economic extraction;
• Estimated production and sales levels;
• Estimate future commodity prices;
• Future costs of production;
• Future capital expenditure; and/or
• Future exchange rates.
Artemis Resources Limited Annual Financial Report – June 2020
53| P a g e
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation, and development expenditure carried forward (Continued)
Variations to expected future cash flows, and timing thereof, could result in significant changes to
the impairment test results, which in turn could impact future financial results.
Share-based payment transactions
The Group measures the cost of equity-settled transactions with employees by reference to the
fair value of the equity instruments at the date at which they are granted. The fair value is
determined by an external valuer using a Black-Scholes model, using the assumptions detailed in
Note 23.
Fair value of financial instruments
Management uses valuation techniques to determine the fair value of financial instruments
(where active market quotes are not available) and non-financial assets. This involves developing
estimates and assumptions consistent with how market participants would price the instrument.
Provision for restoration and rehabilitation
The provision for restoration and rehabilitation has been estimated based on quotes provided by
third parties. The provision represents the best estimate of the present value of the expenditure
required to settle the restoration obligation at the reporting date.
2. SEGMENT INFORMATION
AASB 8 Operating Segments requires operating segments to be identified on the basis of internal
reports about components of the Group that are regularly reviewed by the Chief Operating
Decision Maker in order to allocate resources to the segment and to assess its performance.
The Group’s operating segments have been determined with reference to the monthly
management accounts used by the Chief Operating Decision Maker to make decisions regarding
the Group’s operations and allocation of working capital. Due to the size and nature of the Group,
the Board as a whole has been determined as the Chief Operating Decision Maker.
a. Description of segments
The Board has determined that the Group has two reportable segments, being mineral exploration
activities and development expenditure. The Board monitors the Group based on actual versus
budgeted expenditure incurred by area of interest.
The internal reporting framework is the most relevant to assist the Board with making decisions
regard the Group and its ongoing exploration activities.
Artemis Resources Limited Annual Financial Report – June 2020
54| P a g e
Notes to the Financial Statements
2. SEGMENT INFORMATION (CONTINUED)
b. Segment information provided to the Board:
Exploration Activities
Development
Activities
Unallocated
Total
Mt Clement West Pilbara
East Pilbara
Radio Hill
Corporate
$
$
$
$
$
$
30 June 2020
Segment revenue
Fair value gain on financial assets
Segment expenses
Impairment expense
Borrowing costs
Reportable segment loss
Reportable segment assets
Reportable segment liabilities
Additions to non-current assets
-
-
-
-
-
-
-
-
-
-
-
(9,318,149)
-
(9,318,149)
25,423,396
-
47,053
2,685,865
-
-
-
-
-
-
-
-
-
-
-
-
349,737
-
120,698
23,414,154
1,413,123
60,534
188,506
3,666,670
(6,104,902)
-
(705,465)
(2,955,191)
7,673,860
2,001,638
2,335
188,506
3,666,670
(6,104,902)
(9,318,149)
(705,465)
(12,273,340)
56,861,147
3,414,761
2,916,485
Exploration Activities
Development
Activities
Unallocated
Total
Mt Clement West Pilbara
Others
Radio Hill
Corporate
$
$
$
$
$
$
30 June 2019
Segment revenue
Segment expenses
Reportable segment loss
-
-
-
-
-
-
-
-
-
-
-
-
12,127
(9,359,866)
(9,347,739)
12,127
(9,359,866)
(9,347,739)
Reportable segment assets
Reportable segment liabilities
233,159
-
36,565,459
-
229,038
-
23,353,620
1,413,123
1,805,136
7,353,217
62,186,412
8,766,340
Artemis Resources Limited Annual Financial Report – June 2020
55| P a g e
Notes to the Financial Statements
3. REVENUE
Revenue
Sales of gold, silver and copper ore
Other revenue
Interest received
4.
INCOME TAXES
(a) Income tax expense
Current tax
Deferred tax
Income tax expense
Consolidated
30 June 2020
$
30 June 2019
$
185,217
185,217
3,289
188,506
7,000
7,000
5,127
12,127
Consolidated
30 June 2020
$
30 June 2019
$
-
-
-
-
-
-
(b) Income tax recognised in the statement of profit or loss and other comprehensive income
Loss before tax
Tax at 27.5% (2019: 27.5%)
Tax effect on non-assessable income
Tax effect of non-deductible expenses
Exploration expenditure
Timing differences not brought to account
Previously unrecognised tax losses and timing
differences now recouped to reduce tax expense
Income tax expense
(c) Deferred tax balances
Deferred tax assets comprise:
Tax losses carried forward
Prior year adjustment
Employee benefits obligation
Provisions
Deferred tax liabilities comprise:
Capitalised exploration costs
Net deferred tax asset unrecognised
Consolidated
30 June 2020
$
(12,273,340)
(3,375,169)
(1,008,334)
410,236
2,562,491
1,410,776
-
-
30 June 2019
$
(9,347,739)
(2,570,628)
-
1,116,221
129,597
1,324,810
-
-
Consolidated
30 June 2020
$
30 June 2019
$
5,784,161
1,170,591
2,533
353,281
7,310,566
4,295,819
4,295,819
3,014,747
5,961,631
-
12,337
388,609
6,362,577
4,435,552
4,435,552
1,927,025
Artemis Resources Limited Annual Financial Report – June 2020
56| P a g e
Notes to the Financial Statements
Income Taxes (continued)
(d) Analysis of deferred tax assets
No deferred tax assets have been recognised as yet, other than to offset deferred tax liabilities, as
it is currently not probable that future taxable profits will be available to realise the asset.
5. CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on hand and account balances with banks and
investments in money market instruments, net of outstanding bank overdrafts. Cash and cash
equivalents included in the consolidated statement of cash flows comprise the following amounts:
Cash and cash equivalents
412,138
821,481
Consolidated
30 June 2020
$
30 June 2019
$
6. OTHER RECEIVABLES
Other receivables
GST receivables
Prepayments
Consolidated
30 June 2020
$
30 June 2019
$
6,356
-
163,783
170,139
5,200
49,301
199,754
254,255
The value of trade and other receivables considered by the Directors to be past due or impaired
is nil (2019: Nil).
7. ASSETS HELD FOR SALE
Subsequent to the end of the financial year, the Company announced that it had executed a
binding sale agreement with Northern Star Resources relating to a sale of the Company’s interests
in the Mt Clement Gold Project for $344,000 and a 1% NSR (Net Smelter Revenue). The carrying
value of assets at balance date was $280,212. Refer to Note 13.
8.
INVENTORIES
Current
Gold bullion at cost
Consolidated
30 June 2020
$
30 June 2019
$
-
460,202
Gold bullion was used to settle consultancy fees of $393,000 and this was a gain on settlement of
$186,774.
Artemis Resources Limited Annual Financial Report – June 2020
57| P a g e
Notes to the Financial Statements
9. OTHER FINANCIAL ASSETS
Current
Fair Value Through Profit or Loss
Shares in listed equity securities (Level 1)
10. PLANT AND EQUIPMENT
Consolidated
30 June 2020
$
30 June 2019
$
6,586,551
-
Consolidated
30 June 2020
$
30 June 2019
$
Computer equipment - at cost
Less: Accumulated depreciation
Total computer equipment at net book value
Furniture and fittings - at cost
Less: Accumulated depreciation
Total furniture and equipment at net book value
Motor vehicles – at cost
Less: Accumulated depreciation
Total motor vehicles at net book value
55,971
(12,312)
43,659
103,198
(31,354)
71,844
2,950
(750)
2,200
62,635
(8,999)
53,636
132,065
(28,867)
103,198
7,500
(4,550)
2,950
Total plant and equipment
117,703
159,784
Reconciliation of movement during the year
Reconciliations of the carrying amounts for each class of plant and equipment are set out below:
Consolidated
30 June 2020
$
30 June 2019
$
Computer equipment:
Carrying amount at the beginning of the year
- Addition
- Depreciation
Carrying amount at the end of the year
Furniture and fittings
Carrying amount at the beginning of the year
- Addition
- Disposals
- Depreciation
Carrying amount at the end of the year
Motor vehicles
Carrying amount at the beginning of the year
- Disposals
- Amortisation
Carrying amount at the end of the year
53,636
2,335
(12,312)
43,659
103,198
-
-
(31,354)
71,844
2,950
-
(750)
2,200
11,815
50,089
(8,268)
53,636
79,184
59,055
(7,333)
(27,708)
103,198
6,000
(1,340)
(1,710)
2,950
Artemis Resources Limited Annual Financial Report – June 2020
58| P a g e
Notes to the Financial Statements
11. INTANGIBLE ASSETS
Consolidated
30 June 2020
$
30 June 2019
$
Computer Software - at cost
Less: Accumulated amortisation
Total computer software at net book value
151,365
(79,689)
71,676
151,365
(41,951)
109,414
Reconciliation of movement during the year:
Computer Software:
Carrying amount at the beginning of the year
- Addition
- Amortisation
Carrying amount at the end of the year
12. LEASES
Amounts recognised in the balance sheet:
Right-of-use assets
Offices
Total right-of-use assets
Lease liabilities
Current
Non-current
Total right-of-use assets
Movement in right-of-use assets
Right-of-use assets recognised as at 1 July 2019
Add: New leases
Less: Amortisation
Balance as at 30 June 2020
Consolidated
30 June 2020
$
30 June 2019
$
109,414
-
(37,738)
71,676
83,251
60,481
(34,318)
109,414
Consolidated
30 June 2020
$
30 June 2019
$
35,442
35,442
40,824
-
40,824
-
-
-
-
-
Consolidated
30 June 2020
$
188,969
-
(153,527)
35,442
30 June 2019
$
-
-
-
-
Artemis Resources Limited Annual Financial Report – June 2020
59| P a g e
Notes to the Financial Statements
12. LEASES (CONTINUED)
Movement in lease liabilities
Lease liability recognised as at 1 July 2019
Add: Interest Expense
Less: Loan forgiveness on early lease break
Less: Principal repayment
Balance as at 30 June 2020
Consolidated
30 June 2020
$
188,969
5,076
(24,608)
(129,153)
40,824
30 June 2019
$
-
-
-
-
-
a) Amounts recognised in the statement of profit or loss:
30 June 2020
30 June 2019
$
$
Depreciation charge of right-of-use assets
Offices
Total right-of-use assets
Interest expense (included in finance cost)
Expenses relating to short-term leases (included in
administrative expenses)
The total cash outflow for leases during the year ended 30 June 2020 was $100,946.
131,746
131,746
5,075
-
-
-
-
-
b) The group’s leasing activities and how these are accounted for:
The group leases various offices with varying lengths from 1 to 3 years, some with extension
options.
Contracts may contain both lease and non-lease components. The Group allocates the
consideration in the contract to the lease and non-lease components based on their relative
stand-alone prices. Lease terms are negotiated on an individual basis and contain a wide range
of different terms and conditions. The lease agreements do not impose any covenants other than
the security interests in the leased assets. Leased assets may not be used as security for
borrowing purposes.
Until the 2019 financial year, leases of property, plant and equipment were classified as operating
leases. From 1 July 2019, leases are recognised as a right-of-use asset and a corresponding liability
at the date at which the leased asset is available for use by the Group.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of fixed payments, less any lease incentives receivable.
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability.
Artemis Resources Limited Annual Financial Report – June 2020
60| P a g e
Notes to the Financial Statements
12. LEASES (CONTINUED)
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot
be readily determined, which is generally the case for leases in the Group, the lessee’s
incremental borrowing rate is used, being the rate that the individual lessee would have to pay
to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a
similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the individual lessee as a starting
point, adjusted to reflect changes in financing conditions since third party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for
leases held by the Group; which does not have recent third-party financing; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.
The Group is exposed to potential future increases in variable lease payments based on an index
or rate, which are not included in the lease liability until they take effect. When adjustments to
lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted
against the right-of-use asset.
Lease payments are allocated between principal and finance cost. The finance cost is charged to
profit or loss over the lease period so as to produce a constant periodic rate of interest on the
remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives
received;
• any initial direct costs; and
• restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the
lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase
option, the right-of-use asset is depreciated over the underlying asset’s useful life.
Payments associated with short-term leases are recognised on a straight-line basis as an expense
in profit or loss (unless capitalised as a component of Plant Construction in Progress). Short-term
leases are leases with a lease term of 12 months or less.
13. EXPLORATION AND EVALUATION EXPENDITURE
Consolidated
30 June 2020
$
30 June 2019
$
Exploration and evaluation expenditure
25,773,132
37,027,656
Artemis Resources Limited Annual Financial Report – June 2020
61| P a g e
Notes to the Financial Statements
13. EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
Exploration and Evaluation Phase Costs
Costs capitalised on areas of interest have been reviewed for impairment factors, such as resource
prices, ability to meet expenditure going forward and potential resource downgrades. It is the
Directors’ opinion that the Group has ownership or title to the areas of interest in respect of which
it has capitalised expenditure and has reasonable expectations that its activities are ongoing.
Reconciliation of movement during the year:
Opening balance
Expenditure capitalised in current period
Carrying value of exploration expenditure sold to
Novo Resources Corp1
Exploration expenditure written off, other2
Transfer to assets held for sale
Cost of product sold written off
Closing balance
Consolidated
30 June 2020
$
37,027,656
2,853,616
(4,536,779)
(9,291,149)
(280,212)
-
25,773,132
30 June 2019
$
28,761,826
8,975,094
-
(701,261)
-
(8,003)
37,027,656
1On 24 March 2020, the Company completed the sale of Purdy’s Reward and 47K Patch gold
projects to Novo Resources Corp (Novo), simultaneously terminating the joint venture agreement.
As outlined in the ASX Announcement dated 13 March 2020, part of the consideration for the sale
of the Company’s interests in tenements E47/1745 (Purdy’s Reward) and tenement E47/3443 (47K
Patch) was 1,640,000 shares in Novo and cash of $820,000. The proceeds from the sale were
$3,739,881 and the loss on disposal was $796,898.
2The Group has rationalised the tenement/project portfolio during the year and has impaired the
carrying value of those tenements/projects disposed of and impaired the carrying value of
projects in excess of that deemed recoverable by the Directors.
Exploration expenditure has been carried forward as that expenditure is expected to be recouped
through successful development and exploration of the areas of interest.
Artemis Resources Limited Annual Financial Report – June 2020
62| P a g e
Notes to the Financial Statements
14. DEVELOPMENT EXPENDITURE
Development expenditure
Reconciliation of movement during the year:
Opening balance
Additions
Closing balance
15. TRADE AND OTHER PAYABLES
Consolidated
30 June 2020
$
23,414,154
30 June 2019
$
23,353,620
Consolidated
30 June 2020
$
23,353,620
60,534
23,414,154
30 June 2019
$
11,713,066
11,640,554
23,353,620
Consolidated
30 June 2020
$
30 June 2019
$
Trade and other payables
1,834,010
1,516,278
16. EMPLOYEE BENEFITS OBLIGATION
Opening balance
Provision for the year
Benefits used or paid
Closing balance
17. FINANCIAL LIABILITIES
Convertible note at fair value (Level 2)
Short term loan at amortised cost
Consolidated
30 June 2020
$
44,861
14,342
(49,070)
10,133
30 June 2019
$
8,928
123,639
(87,706)
44,861
Consolidated
30 June 2020
$
-
116,671
116,671
30 June 2019
$
5,595,206
196,872
5,792,078
Artemis Resources Limited Annual Financial Report – June 2020
63| P a g e
Notes to the Financial Statements
17. FINANCIAL LIABILITIES (CONTINUED)
Reconciliation of movement during the year:
Convertible note
Opening balance
Add: Additional convertible note
Less: Conversion to equity2
Less: Cash repayment on convertible note
Fair value movement
Closing balance
Short term loan
Opening balance
Add: Short term loan¹
Less: Cash repayment
Closing balance
Consolidated
30 June 2020
$
30 June 2019
$
5,595,206
-
5,595,206
(588,000)
(5,162,725)
155,519
-
3,914,024
5,519,267
9,433,291
(783,770)
(3,433,870)
379,555
5,595,206
196,872
145,787
(225,988)
116,671
-
196,872
-
196,872
Total
¹ The short term loan is premium funding of annual insurance costs.
116,671
5,792,078
2 The convertible notes issued by the Company is treated as financial liabilities designated as at fair value
through profit or loss. The Convertible Loan Note in the amount of US$3,463,645 was repaid during the
period, with US$400,000 being issued to the noteholders through the issue of 18,437,500 shares at 3.2
cents each, and a further US$3,063,645 being settled in cash.
Artemis Resources Limited Annual Financial Report – June 2020
64| P a g e
Notes to the Financial Statements
18. SHARE CAPITAL
Consolidated
Consolidated
30 June 2020
30 June 2019
No. of Shares No. of Shares
30 June 2020
$
30 June 2019
$
Issued and Paid-up Capital
Ordinary shares, fully paid
1,033,819,481
661,991,065
92,294,878
81,438,336
Reconciliation of movement during the year:
Shares
$
Opening balance
Shares issued to investors for Share Purchase Plan
Shares issued to investors for Placement
Shares issued in retirement of debt and settlement of
creditors
Shares issued as part of employee remuneration
Shares issued on award of performance rights
Shares issued to advisors
Funds returned from sale of security shares previously
issued as collateral for Convertible Note
Share issue costs
Closing balance
661,991,065
87,338,535
242,721,875
26,765,625
5,050,000
4,000,000
5,952,381
-
81,438,336
2,707,500
7,177,473
910,340
141,750
275,200
125,000
134,112
-
1,033,819,481
(614,833)
92,294,878
Term of Issue:
Ordinary Shares
Ordinary shares participate in dividends and are entitled to one vote per share at shareholders
meetings. In the event of winding up the Company, ordinary shareholders rank after creditors
and are entitled to any proceeds of liquidation in proportion to the number of shares held.
Artemis Resources Limited Annual Financial Report – June 2020
65| P a g e
Notes to the Financial Statements
19. RESERVES
Share based payments
Options
Performance rights
Consolidated
Consolidated
30 June 2020
No. of
options/rights
30 June 2019
No. of
options/rights
158,663,462
-
38,663,462
15,000,000
30 June 2020
30 June 2019
$
$
3,257,318
-
3,257,318
1,539,004
1,031,999
2,571,003
During the year 11,000,000 performance rights previously issued to previous directors and
executives of the Company lapsed unexercised. 4,000,000 performance rights held by Key
Management Personnel met their performance conditions and were converted to ordinary shares
in the company.
During the General Meeting held on 22 July 2019, shareholders approved the issue of 10,000,000
unlisted Advisor Options in consideration for corporate advisory services provided to the
Company, and the issue of 10,000,000 unlisted Underwriter Options in part consideration for
underwriting services provided to the Company.
As approved by shareholders at the General Meeting held on 30 April 2020, the Company issued
87,000,000 unlisted options in 2 tranches to Directors as outlined in the Notice of Meeting
dated 30 March 2020.
During the year, the Company also issued 15,000,000 unlisted options in 2 tranches to advisors of
the Company for services rendered, and 4,000,000 unlisted options to brokers for capital raising
services rendered during the financial year.
The unlisted options issued during the year were valued using the Black-Scholes model. The
options outstanding as at 30 June 2020 were determined on the date of grant using the following
assumptions:
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Series 2
31/01/2018
0.4538
100
2
3
0.215
0.01
5,439,858
Series 3
30/11/2018
0.21
95
2
3
0.145
0.080
8,571,429
Series 5
24/05/2019
0.08
100
1.13
3
0.036
0.0165
18,652,175
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Series 6
22/07/2019
0.08
100
0.935
3
0.029
0.0121
20,000,000
Series 7
01/05/2020
0.04
100
0.63
3
0.031
0.0181
4,000,000
Artemis Resources Limited Annual Financial Report – June 2020
67| P a g e
Notes to the Financial Statements
19. RESERVES (CONTINUED)
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Class A
Director
30/04/2020
0.05
89
0.64
2.4
0.032
0.01301
43,500,000
Class B
Director
30/04/2020
0.07
103
0.63
2.9
0.032
0.01507
43,500,000
Class A
Broker
01/05/2020
0.05
89
0.64
2.2
0.031
0.0117
7,500,000
Class B
Broker
01/05/2020
0.07
103
0.63
3.2
0.031
0.0154
7,500,000
As announced on 27 February 2020, Director Options, series 1 and series 4 were cancelled.
For the year ended 30 June 2020, the Group has recognised $1,157,596 (2019: $1,846,004) of
share-based payment expense, and $518,151 of consulting fees in the income statement in
relation to share options and performance rights issued.
Artemis Resources Limited Annual Financial Report – June 2020
67| P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES
The Board of Directors takes responsibility for managing financial risk exposures of the Group.
The Board monitors the Group’s financial risk management policies and exposures and approves
financial transactions. It also reviews the effectiveness of internal controls relating to commodity
price risk, counterparty credit risk, currency risk, liquidity risk and interest rate risk. The Board
meets monthly at which these matters are reviewed.
The Board’s overall risk management strategy seeks to assist the Group in meeting its financial
targets, while minimising potential adverse effects on financial performance. Its review includes
the use of hedging derivative instruments, credit risk policies and future cash flow requirements.
The Company’s principal financial instruments comprise cash, short term deposits and securities
in Australian listed companies. The main purpose of the financial instruments is to earn the
maximum amount of interest at a low risk to the company. The Company also has other financial
instruments such as trade debtors and creditors which arise directly from its operations.
The main risks arising from the Company’s financial instruments are interest rate risk, credit risk,
foreign exchange risk, commodity risk and liquidity risk. The Board reviews and agrees policies for
managing each of these risks and they are summarised below:
(i) Interest Rate Risk
The Company’s exposure to interest rate risk is the risk that a financial instrument’s value will
fluctuate as a result of changes in market interest rates and the effective weighted average
interest rate for each class of financial assets and financial liabilities.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates
on the following financial assets and liabilities:
FY2020
Carrying
Amount
Effect on profit before tax
Effect on pre-tax equity
+1%
-1%
+1%
-1%
Financial Assets
Cash and cash
equivalents1
Trade and other
receivables2
Other financial
assets6
412,138
4,121
170,139
-
6,586,551
7,168,828
-
4,121
-
-
-
-
4,121
-
-
4,121
-
-
-
-
Financial liabilities
Trade and other
payables3
Financial Liabilities4
1,834,010
116,671
1,950,681
Total increase/(decrease)
-
-
-
-
(1,167)
(1,167)
2,954
1,167
1,167
1,167
(1,167)
(1,167)
2,954
1,167
1,167
1,167
Artemis Resources Limited Annual Financial Report – June 2020
68| P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(i) Interest Rate Risk (continued)
FY2019
Carrying
Amount
Effect on profit before tax
Effect on pre-tax equity
+1%
-1%
+1%
-1%
Financial Assets
Cash and cash
equivalents1
Trade and other
receivables2
821,481
18,861
4,848
18,861
4,848
54,501
-
-
-
-
875,982
18,861
4,848
18,861
4,848
Financial liabilities
Trade and other
payables3
Financial Liabilities5
1,516,278
5,792,078
7,308,356
Total increase/(decrease)
-
-
-
-
(1,969)
(1,969)
16,892
1,969
1,969
6,817
(1,969)
(1,969)
16,892
1,969
1,969
6,817
1 Cash and cash equivalents are denominated in both AUD and USD. At 30 June 2020, A$6,894 was
denominated in USD (30 June 2019: A$624,356).
2 Trade and other receivables are denominated in AUD and are not interest bearing.
3 Trade and other payables at balance date are denominated mainly in AUD and are not interest bearing.
4 The short term loan is premium funding of annual insurance costs.
5 The convertible note has no interest coupon. Loan of $196,872 in FY2019 (2018: Nil) bears an interest rate
of 4.5% per annum.
6 Other financial assets are designated in CAD and are non-interest bearing.
(ii) Credit Risk
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting
in financial loss to the Company. The Company has adopted the policy of only dealing with credit
worthy counterparties and obtaining sufficient collateral or other security where appropriate, as
a means of mitigating the risk of financial loss from defaults.
The Company does not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics. The carrying amount of financial assets
recorded in the financial statements, net of any provisions for losses, represents the Company’s
maximum exposure to credit risk.
Artemis Resources Limited Annual Financial Report – June 2020
69| P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(iii) Foreign Exchange Risk
The Company had the following United States dollar denominated assets and liabilities at year
end.
Cash
Cash and cash equivalents
Consolidated
30 June 2020
US$
30 June 2019
US$
4,735
437,861
Borrowings
Convertible Loan Note Facility1
1 The convertible note liability was fully repaid during the financial year.
-
3,923,917
The Company had the following Canadian dollar denominated assets at year end.
Other financial assets
Shares in Novo Resources Corp.
Consolidated
30 June 2020
CAD$
30 June 2019
CAD$
6,586,551
-
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange
rate, with other variables held constant.
Net impact of strengthening/(weakening)
of AUD on USD assets/liabilities outlined
above
Change in
USD rate
Effect on profit
before tax
Effect on pre-
tax equity
FY2020
FY2019
+5%
-5%
+5%
-5%
345
(345)
248,542
(248,542)
345
(345)
248,542
(248,542)
The following tables demonstrate the sensitivity to a reasonably possible change in CAD exchange
rate, with other variables held constant.
Net impact of strengthening/(weakening)
of AUD on CAD assets outlined above
Change in
CAD rate
Effect on profit
before tax
Effect on pre-
tax equity
FY2020
FY2019
+5%
-5%
-
-
329,328
(329,328)
-
-
(329,328)
329,328
-
-
Artemis Resources Limited Annual Financial Report – June 2020
71| P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(iv) Commodity Risk
The Company is affected by the price volatility of certain commodities especially changes in the
price of gold in the market. The following table shows the effect of price changes in gold, with
other variables held constant.
Change in year-
end price
Effect on profit
before tax
Effect on pre-
tax equity
+3%
-3%
+3%
-3%
-
-
13,806
(13,806)
-
-
13,806
(13,806)
FY2020
FY2019
(v) Market Risk
The Company’s listed investments are affected by market price volatility. The following table
shows the effect of market price changes.
FY2020
FY2019
Change in
year end
price
Effect on profit
before tax
Effect on pre-
tax equity
+5%
-5%
-
-
329,328
(329,328)
-
-
(329,328)
329,328
-
-
Artemis Resources Limited Annual Financial Report – June 2020
71| P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(v) Liquidity Risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility
through the use of bank loans, convertible notes and finance leases. Cash flows from financial
assets reflect management’s expectation as to the timing of realisation. Actual timing may
therefore differ from that disclosed. The timing of cash flows presented in the table to settle
financial liabilities reflects the earliest contractual settlement dates and does not reflect
management’s expectations that banking facilities will roll forward.
The following tables below reflect an undiscounted contractual maturity analysis for financial
liabilities.
FY2020
Within 1 year
1 to 5
years
Over 5
years
Total
Financial liabilities due for payment
Trade and other payables
Financial Liabilities
Total contractual outflows
Cash and cash equivalents
Trade and other receivables
Other financial assets
Total anticipated inflows
Net inflow on financial instruments
1,834,010
116,671
1,950,681
412,138
170,139
6,586,551
7,168,828
5,218,147
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,834,010
116,671
1,950,681
412,138
170,139
6,586,551
7,168,828
5,218,147
FY2019
Within 1 year
1 to 5
years
Over 5
years
Total
Financial liabilities due for payment
Trade and other payables
Financial Liabilities
Total contractual outflows
Cash and cash equivalents
Trade and other receivables
Total anticipated inflows
Net outflow on financial instruments
1,516,278
5,792,078
7,308,356
821,481
54,501
875,982
(6,432,374)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,516,278
5,792,078
7,308,356
821,481
54,501
875,982
(6,432,374)
Artemis Resources Limited Annual Financial Report – June 2020
72 P a g e
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
Management and the Board monitor the Group’s liquidity reserve on the basis of expected cash
flow. The information that is prepared by senior management and reviewed by the Board
includes:
(i) Annual cash flow budgets;
(ii) Monthly rolling cash flow forecasts.
(vi) Net Fair Value
The carrying amount of financial assets and financial liabilities recorded in the financial statements
represents their respective net fair values, determined in accordance with the accounting policies
disclosed in Note 1.
21. COMMITMENT FOR EXPENDITURE
The Group currently has commitments for expenditure at 30 June 2020 on its Australian
exploration tenements as follows:
Not later than 12 months
Between 12 months and 5 years
Greater than 5 years
Consolidated
30 June 2020
$
30 June 2019
$
1,435,633
3,670,314
2,303,772
7,409,719
2,326,211
5,726,334
4,202,758
12,255,303
The Company evaluates its tenements and exploration programme on an annual basis and may
elect not to renew tenement licences if it deems appropriate.
Artemis Resources Limited Annual Financial Report – June 2020
73| P a g e
Notes to the Financial Statements
22. RELATED PARTY DISCLOSURES
(a) Refer to the Remuneration Report contained in the Directors’ Report for details of the
remuneration paid or payable to each member of the Group’s Key Management Personnel for the
year ended 30 June 2020. Key Management Personnel for the year ended 30 June 2020 comprised
the Directors and the Company Secretary.
(b) The total remuneration paid to Key Management Personnel of the Company and the Group
during the year are as follows:
Short term employee benefits
Share based payment
Superannuation
Consolidated
30 June 2020
$
30 June 2019
$
541,696
1,081,156
-
1,622,852
1,207,051
1,526,891
34,758
2,768,700
(c) Remuneration options and performance rights: As at 30 June 2020, the outstanding options
and performance rights that were granted in previous and current reporting periods comprised of
87,000,000 options and nil performance rights.
(d) Share and option holdings: All equity dealings with directors have been entered into with terms
and conditions no more favourable than those that the entity would have adopted if dealing at
arm’s length.
(e) Related party transactions
ADK Mining Services1
Doraleda Pty Ltd2
Integrated CFO Solutions3
Kiran Capital Advisors Limited4
Minerva Corporate Pty Ltd5
Consolidated
30 June 2020
$
30 June 2019
$
-
230,000
18,300
28,095
117,694
394,089
109,379
300,000
120,000
-
48,335
577,714
1 Director fees and consulting fees paid to ADK Mining Services Pty Ltd, a company in which Mr Alex Duncan-Kemp has an interest. Mr
Duncan-Kemp resigned during FY2019.
2 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest.
3 Company secretary fees and consulting fees paid to Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest.
In 2020, these included fees of $36,000 (2019: $36,000) for accounting services.
4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest.
5 Director fees, consulting fees and accounting fees paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith has an
interest.
Artemis Resources Limited Annual Financial Report – June 2020
74| P a g e
Notes to the Financial Statements
23. EARNINGS PER SHARE
The calculation of basic earnings and diluted earnings per share at 30 June 2020 was based on the
loss attributable to shareholders of the parent company of $12,273,340 (2019: Loss $9,347,739):
Basic loss per share
Diluted loss per share
Weighted average number of ordinary shares:
Used in calculating basic earnings per ordinary share
Dilutive potential ordinary shares
Used in calculating diluted earnings per share
24. AUDITOR’S REMUNERATION
Auditor of parent entity
Audit fees – HLB Mann Judd
Audit fees – Hall Chadwick
25. SHARE-BASED PAYMENT
Consolidated
30 June 2020
$
(1.35)
(1.35)
30 June 2019
$
(1.44)
(1.44)
No of Shares
No of Shares
907,191,936
-
907,191,936
649,035,055
-
649,035,055
Consolidated
30 June 2020
$
30 June 2019
$
46,125
-
46,125
40,000
269
40,269
Goods or services received or acquired in a share-based payment transaction are recognised as an
increase in equity if the goods or services were received in an equity-settled share-based payment
transaction or as a liability if the goods and services were acquired in a cash settled share-based
payment transaction.
For equity-settled share-based transactions, goods or services received are measured directly at
the fair value of the goods or services received provided this can be estimated reliably. If a reliable
estimate cannot be made the value of the goods or services is determined indirectly by reference
to the fair value of the equity instrument granted.
Transactions with employees and others providing similar services are measured by reference to
the fair value at grant date of the equity instrument granted.
Options issued to Key Management Personnel during the year are outlined in the remuneration
report.
Artemis Resources Limited Annual Financial Report – June 2020
75| P a g e
Notes to the Financial Statements
25. SHARE-BASED PAYMENT (CONTINUED)
The following share-based payment arrangements were in place during the prior and current
financial year:
Instruments
Date granted
Expiry date
Exercise
price
No. of
instruments
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Performance
Rights
31 January 2018
30 November 2018
24 May 2019
22 July 2019
1 May 2020
1 May 2020
1 May 2020
30 November 2017
1 May 2020
1 May 2020
8 November 2017
31 January 2021
15 January 2021
31 July 2022
31 July 2022
1 May 2023
31 July 2022
31 July 2023
30 June 2020
31 July 2022
31 July 2023
30 September
2019
0.45
0.21
0.08
0.08
0.04
0.05
0.07
0.44
0.05
0.05
NIL
Movement in share-based arrangements on issue
(a) Options
Fair value
at grant
date
0.01
0.08
0.02
0.0121
0.0181
0.01301
0.01507
0.03
0.01301
0.01507
5,439,858
8,571,429
18,652,175
20,000,000
4,000,000
43,500,000
43,500,000
6,000,000
7,500,000
7,500,000
15,000,000
0.09
Balance at beginning of year
Options granted during the year
Options forfeited/lapsed during the year
Balance at end of year
Number of instruments
30 June 2020
30 June 2019
38,663,462
126,000,000
(6,000,000)
158,663,462
37,689,858
27,223,604
(26,250,000)
38,663,462
Options exercisable at end of year
158,663,462
38,663,462
(b) Performance rights
Balance at beginning of year
Performance rights converted to shares
Performance rights expired during the year
Balance at end of year
Number of instruments
30 June 2020
30 June 2019
15,000,000
(4,000,000)
(11,000,000)
-
15,000,000
-
-
15,000,000
Artemis Resources Limited Annual Financial Report – June 2020
76| P a g e
Notes to the Financial Statements
25. SHARE BASED PAYMENT (CONTINUED)
Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the year:
Sign on fee for director, issued as shares
Shares issued to director for services rendered
Options – directors
Options - chief executive officer
Performance rights – directors
Performance rights – employees
Options – convertible note holder
Consolidated
30 June 2020
$
30 June 2019
$
-
140,000
1,200,163
-
-
-
-
1,340,163
675,000
-
295,375
(6,393)
487,854
75,055
1,991,793
3,518,684
26. RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO LOSS AFTER INCOME TAX
Loss after income tax
Depreciation
Exploration and project expenditure written off
Share based payments
Finance costs, non cash
Loss on sale of exploration assets
Fair value gain of revaluation of listed investments
held as at balance date
Net fair value loss on financial instruments designated
as fair value through profit or loss
Unrealised foreign exchange gain
Settlement of consultancy costs with gold
Profit on sale of investments
Changes in current assets and liabilities during the
financial period:
Decrease in receivables
Decrease/(Increase) in inventories
Increase in trade and other payables
Net cash outflow from operating activities
Consolidated
30 June 2020
$
(12,273,340)
180,005
9,318,149
1,340,163
587,094
769,898
30 June 2019
$
(9,347,739)
40,892
701,261
3,518,684
336,452
-
(3,666,670)
-
155,519
26,887
188,640
-
541,720
(222,882)
-
70,150
84,116
460,202
743,516
(2,085,821)
168,995
(460,202)
57,864
(4,594,805)
Artemis Resources Limited Annual Financial Report – June 2020
77| P a g e
Notes to the Financial Statements
27. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
FY2020
Consolidated
Opening balance
Net cash from financing activities
Equity conversion
Cash repayment
Foreign exchange gain
Closing balance
Lease liability
$
-
141,770
-
(100,946)
-
40,824
Convertible
loan note
$
5,595,206
-
(588,000)
(5,162,725)
155,519
-
Short term
loan
$
196,876
145,787
-
(225,998)
-
116,671
FY2019
Consolidated
Opening balance
Net cash from financing activities
Non-cash restructuring fees issued to convertible loan
notes holders
Equity conversion
Changes in fair value
Other changes
Closing balance
Convertible
loan note
$
3,914,024
1,605,608
145,180
(783,770)
379,555
334,609
5,595,206
Short term
loan
$
-
196,876
-
-
-
-
196,876
Artemis Resources Limited Annual Financial Report – June 2020
78| P a g e
Notes to the Financial Statements
28. PARENT ENTITY DISCLOSURE
(a) Financial position
Total current assets
Total Non-Current Assets
Total Assets
Total current liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated Losses
Loss for the year
Other comprehensive income
Total comprehensive loss
(b) Commitments
Exploration commitments
Not later than 12 months
Between 12 months and 5 years
30 June 2020
$
30 June 2019
$
7,439,500
3,036,664
10,476,164
1,850,367
-
1,850,367
1,524,772
15,823,288
17,348,060
7,166,151
-
7,166,151
8,625,797
10,181,909
92,294,878
3,257,318
(86,926,399)
8,625,797
(12,733,835)
-
(12,733,835)
81,438,336
2,571,003
(73,827,430)
10,181,909
(9,347,739)
-
(9,347,739)
120,782
19,087
139,869
255,055
47,870
302,925
Artemis Resources Limited Annual Financial Report – June 2020
79| P a g e
Notes to the Financial Statements
29. SUBSIDIARIES
Country of
Incorporation
Ownership
%
30 June 2020
30 June 2019
Parent Entity:
Artemis Resources Limited
Subsidiaries:
Fox Radio Hill Pty Limited
Karratha Metals Limited
KML No 2 Pty Limited
Armada Mining Pty Limited
Shearzone Mining Pty Limited
Western Metals Pty Limited1
Elysian Resources Pty Limited
Hard Rock Resources Pty Limited
Artemis Graphite Pty Ltd
Artemis Management Services Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
-
100
100
100
100
100
80
100
100
100
100
1 The assets, liabilities and the profit or loss of the non-controlling interest is immaterial
Consolidated
-
100
100
100
100
100
80
100
100
100
100
The parent entity with the Group is Artemis Resources Limited which is the ultimate parent entity
in Australia.
Transactions with subsidiaries
Balances and transactions between the Company and its subsidiaries, which are related parties of
the Company, have been eliminated on consolidation.
30. FINANCIAL INSTRUMENTS
The Directors consider that the carrying amounts of current receivables and current payables
(except for Note 17. Financial liabilities) are a reasonable approximation of their fair values.
31. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
There are no contingent liabilities or contingent assets since the last annual reporting period.
32. EVENTS SUBSEQUENT TO 30 JUNE 2020
Subsequent to year end the Company:
- Raised approximately $5.6 million through the placement of 79,992,856 shares at 7 cents per
share.
Sold its Mt Clement project to Northern Star Resources Ltd for $344,000 and a 1% NSR (Net
Smelter Royalty)
Sold its investment in Novo Resources Corp shares for approximately $5.78m in cash.
-
-
Other than as outlined above there are no currently no matters or circumstances that have arisen
since the end of the financial year that have significantly affected or may significantly affect the
operations the Group, the results of those operations, or the state of affairs of the Group in the
future financial years.
Artemis Resources Limited Annual Financial Report – June 2020
80| P a g e
Notes to the Financial Statements
33. PROVISIONS
Provision for restoration and rehabilitation
Consolidated
30 June 2020
$
1,413,123
1,413,123
30 June 2019
$
1,413,123
1,413,123
Artemis Resources Limited Annual Financial Report – June 2020
81| P a g e
Directors’ Declaration
30 June 2020
1. In the opinion of the Directors of Artemis Resources Limited:
a. the accompanying financial statements and notes are in accordance with the Corporations Act
2001 including:
i. giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
performance for the year then ended; and
ii. complying with Australian Accounting Standards, the Corporations Regulations 2001,
professional reporting requirements and other mandatory requirements.
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.
c. the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board.
2. This declaration has been made after receiving the declarations required to be made to the
Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended
30 June 2020.
This declaration is signed in accordance with a resolution of the Board of Directors.
Edward Mead
Executive Director
30 September 2020
Artemis Resources Limited Annual Financial Report – June 2020
82| P a g e
INDEPENDENT AUDITOR’S REPORT
To the members of Artemis Resources Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Artemis Resources Limited (“the Company”) and its
controlled entities (“the Group”), which comprises the consolidated statement of financial position
as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income,
the consolidated statement of changes in equity and the consolidated statement of cash flows for
the year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
a) giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of
the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (“the Code”) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that a material uncertainty exists
that may cast significant doubt on the entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
Uncertainty Related to Going Concern we have determined the matters described below to be the
key audit matters to be communicated in our report.
Artemis Resources Limited Annual Financial Report – June 2020
83 | P a g e
Key Audit Matter
How our audit addressed the key audit
matter
Capitalised Exploration and Evaluation Expenditure
Refer to Note 13.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources,
the Group
capitalises exploration and evaluation expenditure
and as at 30 June 2020 had a deferred exploration
and evaluation expenditure balance of $25,773,132.
the users’ understanding of
Exploration and evaluation expenditure was
determined to be a key audit matter as it is important
to
financial
statements as a whole and was an area which
involved the most audit effort and communication
with those charged with governance.
the
Carrying Value of Development Expenditure.
Refer to Note 14.
The Group has development expenditure of
$23,414,154 in relation to construction of the Radio Hill
Gold Recovery Circuit Processing Facility for the
Carlow Castle Project.
The company concluded there were no impairment
indicators, however an impairment assessment was
conducted under AASB 136 Impairment of Assets at
balance date. This involved a comparison of the
recoverable amount of the Carlow Castle Project assets
with their carrying amounts in the financial statements.
The evaluation of the recoverable amount of these
assets is considered a key audit matter as it was based
upon a model which required significant judgement in
verifying the key assumptions supporting the expected
discounted future cash flows of the Carlow Castle
Project.
In addition, our audit
the Group’s
assessment of the carrying amount of the development
expenditure as this is one of the most significant assets
of the Group.
focussed on
Our procedures included but were not
limited to:
- Obtained an understanding of the key
processes
with
management’s review of the carrying
value of exploration and evaluation
expenditure;
associated
- Considered the Directors’ assessment
of potential indicators of impairment in
addition
own
assessment;
to making
our
- Obtained evidence that the Group has
current rights to tenure of its areas of
interest;
- Considered the nature and extent of
planned ongoing activities;
- Substantiated a sample of expenditure
supporting
agreeing
to
by
documentation; and
- Examined the disclosures made in the
annual report.
Our procedures included but were not
limited to:
- Obtained an understanding of
the
process
the
preparation of the model to assess the
recoverable amount of
the Carlow
Castle Project;
associated
with
- Critically evaluated management’s
methodology in the model and the basis
for key assumptions;
- Performed sensitivity analysis around
the key inputs in the model that either
individually or collectively would be
required for assets to be impaired and
considered
likelihood of such
movement in those key assumptions;
the
- Considered whether
assets
comprising
the Radio Hill cash-
generating unit had been correctly
allocated;
the
- Considered the appropriateness of the
discount rate used in the model;
- Substantiated a sample of expenditure
incurred during the year by agreeing to
supporting documentation; and
- Examined the disclosures made in the
financial report.
Artemis Resources Limited Annual Financial Report – June 2020
84 | P a g e
Information other than the financial report and auditor’s report thereon
The directors are responsible for the other information. The other information comprises the
information included in the Group’s annual report for the year ended 30 June 2020, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives
a true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that gives a true and fair view and is free from material misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group
to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the directors either intend to liquidate the Group
or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Australian Auditing Standards will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
-
-
- Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial report or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
Artemis Resources Limited Annual Financial Report – June 2020
85 | P a g e
-
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing
of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included within the directors’ report for the year ended
30 June 2020.
In our opinion, the Remuneration Report of Artemis Resources Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted
in accordance with Australian Auditing Standards
HLB Mann Judd
Chartered Accountants
Perth, Western Australia
30 September 2020
B G McVeigh
Partner
Artemis Resources Limited Annual Financial Report – June 2020
86 | P a g e
ASX Additional Information
Additional information required by the Australian Stock Exchange Limited Listing Rules and not
disclosed elsewhere in this report. The information was prepared based on share registry processed
up to 20 September 2020.
Distribution of shareholders
The distribution of shareholdings as at 20 September 2020 was:
Substantial shareholders
The names of the substantial shareholders in the Company, the number of equity securities to which
each substantial holder’s associates have a relevant interest, as disclosed in substantial holding notices
given to the Company are:
Holders Name
Nil
No of shares
% of Issued Capital
Artemis Resources Limited Annual Financial Report – June 2020
87| P a g e
ASX Additional Information
Top twenty (20) largest holders ordinary share
Artemis Resources Limited Annual Financial Report – June 2020
88| P a g e
ASX Additional Information
Unquoted securities
Artemis Resources Limited Annual Financial Report – June 2020
89| P a g e
artemisresources.com.au