2021
ANNUAL REPORT
Corporate
Directory
Directors
Mark Potter (Non-Executive Chairman)
Alastair Clayton (Executive Director)
Edward Mead (Non-Executive Director)
Daniel Smith (Non-Executive Director)
Simon Dominy (Non-Executive Director)
Company Secretary
Guy Robertson
Principal Registered Office
Level 8, 99 St Georges Terrace
Perth WA 6000
Telephone: +61 8 9486 4036
Email: info@artemisresources.com.au
Web: www.artemisresources.com.au
Securities Exchange Listing
Australia Securities Exchange Limited
(ASX: ARV)
OTC Markets Group (OTCQB: ARTFF)
Frankfurt Stock Exchange (Frankfurt: ATY)
Share Registry
Automic Registry Service
Level 2, 267 St Georges Terrace
Perth WA 6000
Telephone: 1300 288 664
Web: www.automicgroup.com.au
Bankers
Westpac Limited
Royal Exchange
Corner Pitt & Bridge Streets
Sydney NSW 2000
Auditors
HLB Man Judd (WA Partnership)
Level 4, 130 Stirling Street
Perth WA 6000
Telephone: +61 8 9227 7500
Facsimile: +61 8 9227 7533
2
Contents
01
Chairman’s Letter
02
Review of Operations
26
Annual Mineral Resources Statement
28
Tenement Schedule
31
Directors’ Report
36
Remuneration Report
44
Auditor’s Independence Declaration
45
Consolidated Statement Of Profit Or Loss And Other
Comprehensive Income
46
Consolidated Statement Of Financial Position
47
Consolidated Statement Of Changes In Equity
48
Consolidated Statement Of Cash Flows
49
Notes To The Financial Statements
89
Directors Declaration
90
Independent Auditor’s Report
94
ASX Additional Information
Artemis Resources Annual Report 2021
Chairman’s Letter
Chairman’s Letter
Dear Shareholders,
On behalf of the Directors of Artemis Resources Limited, I am pleased to report on the activities of
the Group for the year ended 30 June 2021.
The Group continues to focus on its core projects, the Paterson Central gold and copper project and
the Carlow Castle gold, copper and cobalt project, in the Pilbara region of Western Australia.
Artemis’ 100% owned Paterson Central gold and copper 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 Havieron gold and copper discovery by Greatland Gold Plc. Havieron has revealed
outstanding high-grade gold and copper outside the initial resource area during the year.
Artemis expended considerable effort during the year in getting approvals in place for its high
priority targets at the Paterson Central gold and copper project. These approvals, now in place, will
allow our highly anticipated multi-target deep drilling programme, near the Havieron project, to
commence imminently.
The downgrade of the Carlow Castle Mineral Resource estimate in May 2021, to 320,000 ounces
gold, 5,000 tonnes contained copper and 7,000 tonnes contained copper, was disappointing. The
difference from the November 2019 resource estimate is attributable to additional drilling,
redefinition and increase in confidence in the model. However, the Group is confident that with a
revised exploration strategy and targeted drilling programme, which is currently underway, we will
be able to demonstrate the potential of the project to host a robust and significant gold, copper and
cobalt resource.
At Carlow Castle a 14,000 metre RC drilling programme primarily targeting mineralisation outside
of the May 2021 resource optimisation shell has recently been completed with assay results to be
received in the coming weeks. Recent exploration drilling at Carlow Castle also included drill testing
of the Good Luck and Little Fortune prospects located ~1km to ~2km South of the Carlow Castle
main ore zone. Substantial exploration potential on a regional level remains at the Carlow Castle
Project which will be further investigated over the coming months.
The Company continued its programme of disposing of non-core assets during the year. The sale of
mining assets relating to four non-core tenements for $150,000 and $125,000 equivalent in shares
in Alien Metals Limited delivered a $1.5 million windfall for Artemis on the appreciation of that
entity’s shares. Further non-core asset disposals remain under review and will proceed in the event
the Board believes the consideration is appropriate.
The Company completed two capital raisings during the year placing 80 million shares in July 2020
at 7 cents per share to raise $5.6 million and approximately 116.7 million shares in June 2021 at 6
cents per shares raising a further $7 million. The share placements were made to both existing and
new shareholders.
Early in the new year we welcomed Dr Simon Dominy to the board. Dr Dominy, a mining geologist-
engineer has over 25 years’ project development and operations experience and will provide
valuable additional technical expertise to the team as we move forwards with our major projects.
I take this opportunity to thank my fellow directors, the Artemis team including consultants, and our
shareholders for their ongoing commitment and support as we strive for a successful year ahead.
Mark Potter
Chairman
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
Artemis Resources Limited (“Artemis” or the “Company”) is pleased to outline the Company’s progress for the
financial year end 30 June 2021. 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 (Figure 1). 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.
The following is a summary of the key work programs completed during the current financial year.
Figure 1: West Pilbara project map highlighting Artemis’ Greater Carlow Castle project and the location of the Radio Hill
processing plant.
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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 2). Access is via the Northwest Coastal Highway and then
by the unsealed Cherratta 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 site.
Figure 2: West Pilbara project map highlighting Artemis’ Greater Carlow Castle project
and the location of the Radio Hill processing plant.
Following a multifaceted strategy, multiple drilling campaigns at Carlow Castle have returned several
significant results, which continues to highlight the potential of the deposit. The Main Carlow Castle zone
returned positive results within deep holes, hitting economic grade intersections some ~630m below
surface and +400m below the Main Eastern Zone, and was intercepted where expected. There were multi-
infill and step-out holes on the Carlow Castle Main Zones (East and West), all defining additional mineral
potential on the known and new plunging mineral shoots, extending the mineralisation at depth.
Additional holes on the Quod Est Zone has further extended this high-grade mineralised shoot at depth.
Targeting geophysical anomalies, drilling discovered the new Cross-Cut Zone that lies east of Quod Est and
to the north of the Main Eastern Zone by approximately 300m.
For the period of this report, a total of 119 holes were drilled for 23,047 metres of which 18 holes for 5,274
metres was diamond and 101 holes for 17,773 metres was RC.
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Figure 3 shows the distribution of drilling collars for the period in relation to the 2021 block model silhouette
and whittle shells.
Figure 3: Carlow Castle drill hole location plan with 2021 whittle shell outline and 2021 block model silhouette in pale yellow.
Section lines highlighted in red with West Zone section interpretations in Figures 5,6 and 7, and Figure 8 showing ore type
from the West Zone. East Zone section interpretations can be viewed in Figures 10,11 and 12.
The Company’s knowledge of the structural, alteration and mineralogical controls at Carlow Castle has
increased significantly. Most importantly, these results are returning high-grade gold, copper and cobalt
assays on the main shoots and defining the extent of the very large lower grade gold-copper-cobalt “halo
zone” around the high-grade zones.
Drill hole targeting was based on the updated information and new interpretation, with drilling intersecting
areas on mineralisation in predicted zones.
Figure 4 shows the 2021 block model delineating the plunging shoots in the ore zone and the respective
pierce points that drilling had targeted.
Figure 4: Carlow Castle long section, showing colour coded blocks highlighting the high-grade zones defining the
plunging shoots. Drill hole pierce points are shown as dots. Arrows define the direction of mineralisation plunges.
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Figure 5: Section 506670mE showing results for Holes ARC311 and ARC312. Note the presence of a lower grade halo
defined by gold, copper and cobalt. Refer to Figure 3 for section location
Figure 6: Section 506670mE showing results for Holes ARC310. Note the presence of a lower grade halo defined by gold,
copper and cobalt. Refer to Figure 3 for section location
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Figure 7: Section 506730mE, intersections for Hole ARC310. Refer to Figure 3 for section location.
Figure 8: Chalcopyrite/pyrite in silicified and sericite altered basalt host. Grade for this interval
returned 6m @ 14.97g/t Au, 7.09% Cu and 0.06% Co, from 53 metres in Hole ARC310.
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Carlow Castle East Zone Diamond Drilling
A series of diamond holes in the eastern zone had given Artemis enough information to determine the
orientation of the mineralising zone and capture the information to assist in drill targeting for future
programs.
Holes 21CCDD002, 21CCDD003 and 21CCDD003 intersected intervals of native copper along with
significant iron oxide and brecciation. This metallic occurrence is coincident with what appear to be a fault
zone and may locate the bounding faults that occur to the east (and west) of the Carlow Castle main
mineralised zones.
Table 1 outlines the intervals with Figure 9 showing the native copper in the core of hole 21CCDD003.
Table 1: Occurrence of native copper in diamond drill holes
Hole ID
From
To
DH Width
Cu%
Comments
21CCDD002
47
47.5
0.5
21CCDD003
79
82
3
21CCDD003
101.5
105
3.5
21CCDD003
116.5
124.7
8.2
21CCDD004
143
145
2
21CCDD004
146.5
147
0.5
0.5
0.5
0.5
2
1
1
Minor native copper in breccia associated
with limonitic infill.
Native copper associated with goethite
and limonite
Native copper associated with goethite
and limonite, possible trace cobalt
Native copper in breccia associated with
5% goethite and limonite
Native copper in breccia associated with
goethite and limonite. Less brecciated
areas within larger intervals - Cu gives way
to PY/CP assemblage
Native copper in breccia associated with
goethite and limonite.
Figure 9: Hole 21CCDD003 122.36 - 122.66m chloritic altered brecciated basalt host
with ~5% native copper with moderate to strongly oxidised limonite-goethite
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Drill core observations indicated that there were at least two types of basalt textures. One being a more
massive style, while the other revealed pillow basalt textures. These pillow basalts are recognised by
remnant vesicles (product of de-gassing), rounded margins and hyaloclastite fragments. These are primary
textures and are not directly related to mineralisation.
It was noted in drill core that mineralisation was associated with breccias that commonly coincided with
pillow basalts. Higher grade zones were associated with breccias with semi-massive sulphides, with
peripheral fracturing to the main zones, hosting lower grades.
More massive competent basalt tended to fracture as stockworks, creating a finer veining that hosted
moderate to lower grade mineralisation.
Alteration was also notably stronger in areas of pillow basalts, comprising of sericite-quartz. A later chlorite
alteration is also noted, coincident with a later phase of mineralisation.
Further work is in progress to understand the relationships between textures, timing and the paragenetic
sequence of the mineralisation at Carlow Castle.
Figure 10: Section 507540mE looking east showing results for diamond hole 21CCDD001. Refer to Figure 3 for section
line location.
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Figure 11: Section 507580mE looking east showing results for diamond hole 21CCDD002, 21CCDD003 and 21CCDD004.
Refer to Figure 3 for section line location.
Figure 12: Section 507600mE looking east showing results for diamond hole 21CCDD005. Refer to Figure 3 for section
line location.
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A reinterpretation of the structural setting and mineralising events have returned high-grade gold, copper
and cobalt assays on the main shoots and is defining the extent of the rich, lower grade gold-copper-cobalt
“halo envelope” surrounding the internal high-grade zones.
Quod Est Zone
Quod Est mineralisation trends north to northeast, with a steeply dipping mineralisation plunging to the
southeast, controlled by a gabbro/basalt contact.
Results for this drilling have returned 6m @ 22.94g/t Au, 6.89% Cu, 1.52% Co (Hole 18CCAD009) and 11m
@ 14.08g/t Au, 3.41% Cu, 0.79% Co (Hole ARC008).
These encouraging results warrant further follow up work to define the structure and add ounces to the
Carlow Castle story.
Crosscut Zone
Discovery of the Cross-Cut Zone by testing geophysical targets had intersected several high-grade zones
associated with north-westerly striking structures.
This discovery was based on the interpretation using airborne magnetic data and the SAM survey which
suggests that Cross-Cut may be a series of en-echelon mineralised structures.
These inferred structures are shown in Figure 13 along with the SAM Survey image.
Figure 13: Updated interpretation (plan view) of the Crosscut Zone showing the potential for repeated mineralised structures
of an en echelon nature. Holes have been repositioned in the current drill program to test these features. Background image
of SAM survey.
Orientation of the structures at Crosscut was redefined from information collected from the diamond core
holes 21CCDD006 and 21CCDD007, which indicated that mineralising structures were striking to the
northwest, but dipping to the southwest, rather than the northeast. Figure 14 shows the section for
21CCDD007 and Figure 15 shows a mineralised interval from 21CCDD007.
Successive drilling was reorientated to the northeast to drill mineralisation perpendicular to the strike and
dip.
Previous drilling had intersected significant copper and gold numbers but lacked coherency.
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Figure 14: Crosscut section 10150mN local grid looking northwest showing hole trace for 21CCDD007.
Refer to Figure 2 for section location
Figure 15: Hole 21CCDD007 136 - 141m breccia with quartz-carbonate infill and pyrrhotite-chalcopyrite
mineralisation. The interval returned 5m @ 1.32g/t Au, 1.86% Cu, 0.16% Co.
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Geophysical Surveys
A high-resolution aeromagnetic survey carried out in late 2020 using 25m N-S oriented survey line spacing
has been used to help map sub-surface continuity of geological units and cross faults prospective for
hosting Au-Cu-Co mineralisation in the project area. This aeromagnetic survey was followed up by Dipole-
Dipole IP (DDIP) survey lines crossing the main Carlow Castle mineralised trend and a Gradient Array IP
(GAIP) survey grid to cover an area immediately east of Carlow Castle (Figure 16).
IP surveying was carried out from February to March 2021 to identify chargeable and conductive anomalies
associated with sulphide minerals and zones of deep weathering following favourable structures with
potential for hosting Au-Cu-Co mineralisation.
GAP Geophysics carried out this extensive Induced Polarisation survey program, with the surveying planned
and monitored by Resource Potentials geophysical consultants. A total of 12 DDIP survey lines for 26.1km
(10 N-S lines and 2 E-W lines), and a GAIP grid area of 1.5km2 were carried out over Carlow Castle, which
was extended south to cover the Good Luck and Little Fortune prospects, which are underexplored and
have potential for Au, Cu, Ag, Ni and Co mineralisation.
Figure 16: Map showing the location of Carlow Castle DDIP survey lines (yellow), overlying a VTEM electromagnetic
conductivity anomaly image, coloured by electromagnetic time decay channel windows (red = ch30, green = ch20, blue =
ch10, and white is all 3 colours combined due to overlapping anomalies). Also shown is the Carlow Castle and Quod Est
resource wire frame outline (red), historical mine workings (yellow dots), DDIP chargeability target outlines (purple), and VTEM
airborne electromagnetic targets (blue outlines).
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DDIP survey data have been processed and interpreted to generate electrical conductivity and chargeability
depth models in 2D, and these results have been gridded laterally to generate 3D models of source bodies.
These results have been interpreted to generate DDIP chargeability anomaly target areas which could be
caused by sulphide minerals associated with Cu-Au mineralisation.
Historical VTEM airborne electromagnetic survey data flown in 2007 at 100m spaced and NW-SW oriented
survey lines were also re-processed, and VTEM conductivity targets were also selected and modelled for
conductive sources over the Little Fortune and Good Luck prospects to plan drillholes for testing them.
Figure 15 shows an image of VTEM conductor anomalies and the location of DDIP chargeability targets and
note how the DDIP and VTEM targets sit below, along strike or adjacent to historical Cu-Au mine workings
at the Good Luck and Little Fortune prospects.
CARLOW CASTLE MINERAL RESOURCE ESTIMATE
During the year, the Mineral Resource for the Carlow Castle Project was updated by CSA Global using all
data available as of 19 May 2021; this includes an additional 129 drill holes for 22,395 m since the 2019
Mineral Resource update. The additional drillholes were mainly at the eastern end of the Carlow Castle Main
zone and in the newly discovered Cross-Cut zone.
An open pit optimisation was completed to constrain the reported Mineral Resource. The updated Carlow
Castle Mineral Resource is 14.3 million tonnes at 0.7 g/t Au, 0.4% Cu, and 0.05% Co for 320,000 ounces
gold, 53,000 tonnes contained copper, and 7,000 tonnes contained cobalt.
Table 2 shows the updated resource numbers compared to the 2019 resources numbers.
Table 2: Comparison between 2021 and 2019 Mineral Resource estimates
2021 Inferred
2019 Inferred
Type
Tonnes (kt) Au (g/t)
Oxide
4,400
Transitional 3,100
Fresh
Total
6,900
14,300
0.4
0.7
0.9
0.7
Cu
(%)
0.3
0.5
0.4
0.4
Co
(%)
Tonnes (kt)
Au (g/t)
0.04
5,100
0.06
-
0.06
2,800
0.05
8,000
2.1
-
0.7
1.6
Cu
(%)
0.6
-
0.6
0.6
Co
(%)
0.1
-
0.05
0.08
The 2021 Mineral Resource is materially different to the previously reported 2019 Mineral Resource, with a
significant decrease in Au, Cu, and Co grades, and an increase in resource tonnes. The contained gold
decreased by 98,000 ounces, contained copper increased 5,000 tonnes, and contained cobalt was
approximately the same.
The sources of this significant change in the estimated resources at Carlow Castle have been analysed in
detail and derive from multiple changes which have occurred, these include:
Increased drilling below -100m RL.
Below -100m RL, the estimated mean gold grade decreased from 1.25 g/t Au in the 2019 model to 0.5 g/t
Au in the 2021 model. Similarly, copper decreased from 0.3% Cu to 0.25% Cu, and cobalt from 0.05% Co
to 0.03% Co. Material differences in the data and estimation methodology between the 2019 and 2021
Mineral Resource models are discussed below.
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Differences in the Input Datasets
Several very high-grade drill holes were drilled down dip in 2018. The 2021 Mineral Resource included
several additional infill drillholes drilled across the mineralisation adjacent to these holes which reported
lower Au, Cu, and Co grades over narrower widths whilst creating improved confidence in the
mineralisation interpretation.
Differences in the Interpretation Approach
The 2019 mineralisation wireframe for the Carlow Castle Main zone used manual sectional interpretation
on 40 m spacings at a nominal 500 ppm Cu cut-off. The 2021 model was created using Leapfrog software
to model the complex and variable grade and geological continuity effectively. Nested indicator grade
shells were generated at 200 ppm Cu, 500 ppm Cu, and 0.5 g/t Au cut-offs.
The additional 0.5 g/t Au sub-domain was created for the 2021 model to constrain the influence of the high-
grade down-dip drillholes. In areas with no infill drilling the 500 ppm Cu wireframes in 2019 and 2021 are
generally comparable.
Differences in the Volume Covered
Infill drilling led to a refinement in the mineralisation interpretation and subsequent decrease in volume
below -100 mRL. The additional drilling removed poorly constrained volume that had been projected
down-dip in 2019, especially on the footwall.
Differences in the Estimation Parameters
The two models used different treatments of outlier grades. For the 2019 model, no top cuts were applied;
grades above certain thresholds were restricted to a search distance of 10 m, or inside the Ordinary Kriging
(OK) panel in which they were situated. For the 2021 model, a top cut was applied to high grades before
estimation.
Differences in the Open Pit Optimization Parameters
Both the 2019 and 2021 models were constrained by a Whittle open pit optimisation to account for the
reasonable prospects for eventual economic extraction (RPEEE) test of the JORC Code. The optimisation
parameters for both models were identical except for increased commodity prices in 2021.
Differences in Mineral Resource Classification Approach
The resource classification followed similar approaches in the 2019 and 2021 models. In the 2019 model,
the lower extents of the optimized resource shell were constrained by the extent of the mineralisation
wireframe. The 2021 Whittle shell was not limited by the wireframe, but by grade and tonnage of
mineralisation (Figure 17). Material below the -220m RL was left unclassified based on limited drill data. The
Carlow Castle Main zone remains open at depth.
Differences in the Estimation Method
The change from a localised uniform conditioning (LUC) estimation method in 2019 to a global ordinary
Kriging (OK) method in 2021 was based on the improved mineralisation domaining and population
statistics with infill drilling.
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Figure 17: 2021 block model resource classification (Inferred – 3; Unclassified – 4) with 2021 Whittle shell
Given the complexity and multi-commodity character of the Carlow Castle deposit, Artemis will continue to
engage with resource estimation experts as to the optimum approach to define this deposit.
PATERSON CENTRAL GOLD-COPPER PROJECT
Background to the Paterson Central Gold-Copper 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 Gold-Copper 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 as shown in Figure 18.
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 Gold-Copper project for both Havieron and Telfer styles of gold and copper
mineralisation.
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Figure 18: 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 Targeting at Paterson Central
A detailed review of all Artemis data by Perth based Resource Potentials, 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 (Figure 19).
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Figure 19: 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.
Phase One Drill Programme
The Phase 1 drilling campaign by the Company was completed in Q4 2020 at the Paterson Central Project
located surrounding the Newcrest Mining / Greatland Gold Havieron gold deposit in the Paterson Province,
WA.
Three deep diamond holes were drilled in the Nimitz Prospect only 2.5km to the east of Havieron area for
a total of 3,012m, with 1,151m drilled into Proterozoic bedrock of the Lamil Group, which is the host rock
to the Havieron and Telfer gold deposits. Seventy one core samples were taken rig-side from 1,151m of
basement diamond core at the Nimitz Prospect in Q4 2020.
The holes intersected favourable host rock types, hydrothermal alteration, brecciation and initial multi-
element geochemistry with the presence of Au and related pathfinder element anomalies (Bi, Cu and Te) in
two of the small core samples from Nimitz being an encouraging sign that the veining and hydrothermal
alteration of host rocks in the Proterozoic Lamil Group bedrock at Nimitz, and potentially other Artemis
prospects surrounding Havieron; have potential to contain significant Au and Cu mineralisation.
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Basis of Targeting
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; the
identification of deep sourced ionic leach multi-element geochemical anomaly trends adds a significantly
different dimension to the targeting.
Figure 19 shows 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).
This interpreted NW-SE trending granitic intrusion is in close proximity to Havieron (Figure 20), 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 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 the west, and which are also the likely
host rocks to Havieron.
Figure 20: Gridded gravity data after applying 12km high-pass filter and NE sun shading. Interpreted solid rock geology of
post-mineralisation dyke and granitic intrusion overlain. Locations of planned Artemis drillholes are shown as yellow dots,
with their downhole traces projected to surface as black lines, as well as local gravity high zones in grey to be targeted by
drilling.
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Geochemistry
The geochemical trend has been defined to occur just to the north of Havieron by an extensive ionic
leach sampling program of 942 samples conducted by the exploration team whist onsite for the
drilling (Figure 21). The trend encompasses anomalous responses in Au, Ag, As and Cu and
straddles the same North-South trending mafic dyke that extends north from Havieron. The results
from this survey have further highlighted the large, top-ranked Apollo (800m x 800m) and Atlas
(400m x 400m) targets located north of the Havieron Au-Cu discovery.
Figure 21: 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.
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The Company successfully negotiated a heritage agreement with the Western Desert Lands
Aboriginal Corporation (Jamukurnu-Yapalikunu) in the March quarter. The land access agreement
was signed on 19 April 2021 “Paterson Central Project – Land Access and Mineral Exploration
Agreement Executed with Western Desert Lands Aboriginal Corporation (Jamukurnu-Yapalikunu)”.
The heritage survey was completed during August 2021 and final heritage clearance notification was
received in September 2021.
Drilling Program
Following its maiden deep drilling programme at the Nimitz Prospect in late 2020, Artemis is now
focussing on testing its 6 higher priority drill targets at the 100% owned Paterson Central Gold-
Copper project, intending to carry out about 4,000m to 5,000m of diamond drilling to test these
targets during the 2021 field season.
Prior to receiving the heritage clearances, detailed and extensive planning in advance of the Q3/Q4
2021 Paterson drill campaign was completed. With Heritage approvals now in place the Paterson
Central exploration team is currently on site preparing drill pads in advance of the drill arriving in the
coming days.
The Apollo, Atlas, Enterprise, Juno and Voyager targets form the high priority target areas, based
on their proximity to known mineralised systems, their geological and structural locations, and local
anomalies in magnetic, gravity and ionic leach soil geochemical data sets.
RADIO HILL (Ni) Project
Resource Potentials Pty Ltd completed a high-level review of Radio Hill project tenements M47/161
and M47/337 to determine what geophysical exploration datasets are available, highlight
geophysical anomaly zones, identify anomalies and target areas of interest that remain untested, or
are under- tested by drilling.
The aim is to provide recommendations for additional geophysical surveying, and then to plan,
monitor, process and interpret new geophysical surveys carried out over target areas of interest.
FLEM surveying was completed by GAP Geophysics in April 2021.
This study identified deep and untested conductor anomaly zones of interest identified from historic
deep drilling and follow-up DHEM survey data and reports, with DHEM targets shown projected to
surface on the map in Figure 22.
The Radio Hill project area is still considered to hold potential for additional discoveries of Ni-Cu-
Co-PGE sulphide deposits at depths >500m and to the south of the mined out nickel sulphide
deposits, where long conduits likely follow the base of the intrusion. However, additional deposits
are most likely located at least 600m below surface based on drilling and DHEM results and are
therefore too hard to identify using airborne or surface-based EM survey methods.
This is highlighted in green in Figure 22.
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
Figure 22: Radio Hill Project tenements M47/161 and M47/337 (black outlines), mine infrastructure (dashed blue
outlines), and the Radio Hill resource wireframes projected to surface (red) over a satellite image. The recent FLEM
survey coverage area is outlined in yellow.
WHUNDO (Zn-Cu) project
Artemis Resources hold mining rights to the Whundo VMS project tenements, located approximately
45km South of Karratha in Western Australia. The Whundo Zn-Cu-Pb-Ag VMS deposit has been
mined in places and is now in care-and-maintenance status. The project area still holds un-mined
deposits and has potential for additional VMS deposits that remain to be discovered.
This study identified VMS mineralisation potential along a target trend located to the NE of the main
Whundo deposit and covers the Yannery and Ayshia prospect areas. These prospect areas may host
only weakly-conductive base metal mineralisation, such as sphalerite-rich or disseminated sulphide
deposits, that were not identified using previous electromagnetic (EM) survey methods. Therefore,
a new induced polarisation (IP) survey was planned and carried out over this area to identify
chargeable sulphide mineralisation that was not detected by historic EM surveying.
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
A new GAIP survey area is recommended to be surveyed between the Whundo deposit and the
recent GAIP survey area, as highlighted by the yellow square shown in Figure 23.
This proposed GAIP survey area will cover a gap in survey coverage between Whundo and Yannery
and cover the highest-amplitude chargeability anomaly located in the SW corner of the recent GAIP
survey block.
Shallow RC drilling is recommended to test the chargeable and resistive target trend identified
between Yannery and Ayshia prospects, as highlighted by the dashed black outline. This anomaly
trend can be tested by RC drill transects planned across the trend. Untested VTEM target outlines to
the NE and W of Whundo should also be RC drill tested. These targets are shown in Figure 23.
Figure 23: Whundo Project tenements M47/007 and M47/009 (black outlines), VTEM anomaly outlines from late-time
VTEM data (pink), early-time anomalies (dashed blue), historic Whundo drillhole collar locations coloured by max Zn,
and a semi-transparent colour GAIP ternary image where conductivity is red, chargeability is green and resistivity is
blue, all overlying a greyscale derivative magnetic image background
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
Munni Munni PGE Project
Joint Venture Formation with Platina Resources Limited
Following a period of constructive dialogue, Artemis is pleased to have now executed a full Joint
Venture Agreement and associated documents that allow for to formal formation of a Joint Venture
over 100% of the Munni Munni Project with Platina Resources Limited (ASX:PGM) in the ratio of
beneficial interests, 70% ARV and 30% PGM.
Figure 24 shows the Munni Munni project area and tenement boundaries.
A Reverse Circulation (RC) drilling of 15 drill holes for 2,740 metres has been completed in May
2021, with drill holes spread through the entire upper portion of the mineralisation, to a maximum
depth of 250 metres. As the PGE horizon is essentially a stratigraphic zone, historical drilling has
been widely spaced and very selectively assayed; Artemis has undertaken a broad multi-element
analytical suite to improve the subtle lithological variations and to close the drill spacing around the
northern nose of the >20km long Munni Munni mafic intrusive Complex.
In the diamond drill core from 2018 essentially only gabbros and pyroxenites were recognised,
likewise in the RC chips only gabbros, pyroxenites and sediments with various minor intrusive dykes
were noted.
The RC data appears to show slightly lower absolute results for the PGE but occurs in the same
relative ’stratigraphic ‘position. This due to the RC data being in 1m sample intervals and the
historical core being sampled on precise and detailed intervals often down to 0.25m.
Virtually all PGE occur within the websterite lithology with a lesser amount in the pyroxenite due the
PGE occurring very close to the contact between the two units.
Figure 24: Munni Munni PGE Project area with tenement boundaries
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
Holes 18MMAD006 with 21MMRC003 and 21MMRC004 show the direct correlation of the PGE
results and the remarkable continuity and consistency of the lithochemistry based geological
interpretation, as shown in Figure 25.
Figure 25: Munni Munni PGE Section 481700mE, 2PGE +AU intercepts.
CORPORATE
Fund Raising
In September 2020 the Company completed the sale of its shares in Novo Corporation Inc. raising
$5.78 million and in November 2020 realised a further $1.5m on the sale of non-core tenement
assets to Alien Metals Limited.
The Company completed two capital raisings during the year placing 80 million shares in July 2020
at 7 cents per share to raise $5.6 million and approximately 116.7 million shares in June 2021 at 6
cents per shares raising a further $7 million.
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Artemis Resources Annual Report 2021
Operations Report
Review of Operations
Project Disposal
During Q1 2021 the Company continued with its process of disposing of non-core assets.
In late March 2021, the Company signed an Option Agreement with GreenTech Metals Ltd
(GreenTech), for GreenTech to acquire Whundo and other non-core tenements.
The consideration for the non-core tenements consists of $250,000 cash (being reimbursement of
exploration costs) and $1.35m of GreenTech shares subject to completion. GreenTech will also
spend $450,000 to farm into certain tenements. This transaction has not proceeded as at the date of
this report.
Board Changes
The Board welcomed Dr Simon Dominy as a Director on 1 July 2021. Dr Dominy is Adjunct Professor
at the Western Australian School of Mines (WASM), Curtin University, and a Visiting Associate
Professor at the Camborne School of Mines (CSM), University of Exeter, UK.
A mining geologist-engineer with over 25 years’ experience, Dr Dominy is a Fellow of the
Australasian Institute of Mining and Metallurgy (“FAusIMM”) and the Australian Institute of
Geoscientists (“FAIG”).
Mr Boyd Timler was appointed a director in October 2020 and resigned in May 2021. Mr Edward
Mead, previously executive director, became a non-executive director in February 2021.
Other Matters
The Company settled a dispute with Platina Resources Limited on the Munni Munni joint venture
(Artemis holds a 70% interest) during the year and a formal joint venture agreement was executed
in July 2021. The Company is now, together with Platina, focused on generating maximum value for
this non-core project.
Alastair Clayton
Executive Director
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Artemis Resources Annual Report 2021 0.3 g/t Au cut-off
1 g/t Au cut-off
0% cut-off
0.3 % Ni cut-off
0.2 % Cu cut-off
Annual Mineral Resources Statement 30 June 2021
Annual Minerals Resources Statement 30 June 2021
Category
Tonnes (t) AuEq (g/t)
g/t
AuEq (ozs)
Au (ozs)
%
t
%
t
%
t
%
t
Gold
Copper
Cobalt
Nickel
Zinc
Carlow Castle - Au, Cu, Co
Measured
Indicated
Inferred (oxide)
Inferred (transitional)
Inferred (fresh)
4,400,000
3,100,000
6,900,000
Sub-total 14,300,000
0.90
1.60
1.70
1.40
0.40
0.70
0.90
0.70
129,000
154,000
53,000
67,000
372,000
199,000
655,000
320,000
0.30
0.50
0.40
0.40
13,000
15,000
26,000
53,000
0.04
0.06
0.06
0.05
2,000
2,000
4,000
8,000
Weerianna - Au
Measured
Indicated
Inferred
Radio Hill - Ni Cu, Co
Measured
Indicated
Inferred
Ruth Well - Ni, Cu
Measured
Indicated
Inferred
Whundo - Cu, Zn
Measured
Indicated
Inferred
975,000
Sub-total 975,000
2
2
62,694
62,694
1,150,000
0.73 8,395 0.028 322
0.52 5,980
Sub-total
1,150,000
0.73 8,395 0.08
322
0.52 5,980
152,000
0.47
714
0.63
958
Sub-total 152,000
0.60
714
0.08
958
2,600,000
1.14 29,640
1.12 29,120
Sub-total
2,600,000
1.14 29,640
Ayshia- Whundo - Zn, Cu
Measured
Indicated
Inferred
244,000
593,000
351,000
Sub-total
1,118,000
0.50
750
0.50 1,720
0.30
819
0.43 3,289
1.12 29,120
0.4 % Zn cut-off
1.71 4,164
2.42 14,340
1.26 4,407
1.93 22,911
Total
Gold Ounces
Copper Tonnes
Cobalt Tonnes
Nickel Tonnes
Zinc Tonnes
AuEq (ozs)
Au (ozs)
Measured, Indicated and inferred
655,000
382,694
95,038
8,322
6,938
52,031
Small variations may occur due to rounding of numbers.
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.
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.
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Artemis Resources Annual Report 2021
Annual Mineral Resources Statement 30 June 2021
Annual Minerals Resources Statement 30 June 2021
Competent Persons 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.
The information in this statement that relates to Mineral Resources is based on information compiled
by Phil Jankowski who is a Member of the Australasian Institute of Mining and Metallurgy and a full-
time employee of CSA Global. Mr Jankowski 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 Jankowski consents to
the inclusion in this statement of the matters based on his information in the form and context in
which it appears.
Weerianna:
• ASX Announcement, Artemis Resources – 19 December 2018
• 2018 estimate (Geostat Services). Cut-off grade 1.0% Au. Estimated according to JORC
Code (2012).
Carlow Castle:
• ASX Announcement, Artemis Resources – 20 November 2019
• 2021 estimate (CSA Global). Cut-off grade 0.3% AuEq. Estimated according to JORC Code
(2012).
Radio Hill:
• ASX Announcement, Artemis Resources – 21 December 2018
• 2018 estimate (AM&A). Cut-off grade 0.0% Cu. Estimated according to JORC Code (2012).
Ruth Well:
• ASX Announcement, Artemis Resources – 7 May 2019
• 2019 estimate (AM&A). Cut-off grade 0.3% Ni. Estimated according to JORC Code (2012).
Whundo:
• ASX Announcement, Artemis Resources – 26 October 2018
• 2018 estimate (AM&A). Cut-off grade 0.2% Cu. Estimated according to JORC Code (2012).
Ayshia-Whundo:
• ASX Announcement, Fox Resources – 3 October 2007
• 2006 estimate (RSG Global) Cut-off grade 0.4% Zn. Estimated according to JORC Code
(2004).
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Artemis Resources Annual Report 2021
Tenements 30 June 2021
Tenements 30 June 2021
Project
Purdy’s Reward
Carlow Castle
Ruth Well
47 Patch
Elysian / Hard Rock
Whundo
Radio Hill
Weerianna
Silica Hills
Telfer
Sing Well
Nickol River
Munni Munni
Tenement
L47/782
E47/1797
P47/1929
E47/3719
E47/3487¹
E47/3341¹
E47/3361¹
E47/3564¹
E47/3340¹
E47/3390¹
P47/1832¹
P47/1881¹
E47/3534¹
E47/3535¹
P47/1833¹
L47/163
M47/7
M47/9
M47/161
M47/337
L47/93
M47/223²
L47/781
E47/1746
E45/5276
P47/1622
P47/1112
P47/1126
P47/1925
E47/33223
M47/1233
M47/1243
M47/1253
M47/1263
Status
Pending
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Pending
Pending
Live
Live
Live
Live
Live
Live
Live
Company
KML No 2 Pty Ltd
KML No 2 Pty Ltd
KML No 2 Pty Ltd
KML No 2 Pty Ltd
Elysian Resources Pty Ltd
Hard Rock Resources Pty Ltd
Elysian Resources Pty Ltd
Elysian Resources Pty Ltd
Hard Rock Resources Pty Ltd
Hard Rock Resources Pty Ltd
Hard Rock Resources Pty Ltd
Hard Rock Resources Pty Ltd
Jindalee Resources Pty Ltd
Jindalee Resources Pty Ltd
Jindalee Resources Pty Ltd
Fox Radio Hill Pty Ltd
Fox Radio Hill Pty Ltd
Fox Radio Hill Pty Ltd
Fox Radio Hill Pty Ltd
Fox Radio Hill Pty Ltd
Fox Radio Hill Pty Ltd
Western Metals Pty Ltd
Pending
KML No 2 Pty Ltd
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
KML No 2 Pty Ltd
Armada Mining Pty Ltd
KML No 2 Pty Ltd
KML No 2 Pty Ltd
KML No 2 Pty Ltd
KML No 2 Pty Ltd
Karratha Metals Pty Ltd
Platina Resources Ltd
Platina Resources Ltd
Platina Resources Ltd
Platina Resources Ltd
1– 70% Artemis – Karratha Gold Joint Venture
2 – 80% Artemis
3 – 70% Artemis – Joint Venture with Platina Resources
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Artemis Resources Annual Report 2021
Corporate Governance Statement
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 2021 and is available on the Company’s website:
https://artemisresources.com.au/company/corporate-governance
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Artemis Resources Annual Report 2021
Annual Financial Statements
Contents
31
Directors’ Report
36
Remuneration Report
44
Auditor’s Independence Declaration
45
Consolidated Statement Of Profit Or Loss And Other
Comprehensive Income
46
Consolidated Statement Of Financial Position
47
Consolidated Statement Of Changes In Equity
48
Consolidated Statement Of Cash Flows
49
Notes To The Financial Statements
89
Directors Declaration
90
Independent Auditor’s Report
94
ASX Additional Information
30
30
Artemis Resources Annual Report 2021 Directors’ Report
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 2021. 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
Simon Dominy
Boyd Timler
May 2021)
Non-Executive Chairman
Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director (appointed 1 July 2021)
Executive Director (appointed 1 October 2020, resigned 24
Current Directors
MR MARK POTTER
Non-Executive Chairman
Mr Mark Potter has over 16 years’ experience in natural resource
investments. He currently serves as a Director and Chief Investment
Officer of Metal Tiger PLC, a natural resources investment company
quoted on the AIM market of the London Stock Exchange.
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 Non-Executive Chairman of Thor Mining Plc.
Interest in Securities as at the date of this report:
Fully paid ordinary shares: Nil
Unlisted options: 20,000,000
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 previous 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
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Artemis Resources Annual Report 2021
Directors’ Report
Directors’ Report
MR EDWARD MEAD
Non-Executive Director
MR DANIEL SMITH
Non-Executive Director
project surrounds Haverion. Mr Clayton was previously a Director of
ASX100 listed Extract Resources and Universal Coal PLC.
Interest in Securities as at the date of this report:
Fully paid ordinary shares: 2,000,000
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 the date of this report:
Fully paid ordinary shares: 4,483,870
Unlisted options: 7,500,000
Mr Daniel Smith holds a Bachelor of Arts, is a 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
13 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, QX
Resources Limited and Lachlan Star Limited, and is company secretary
of Taruga Minerals Limited and Vonex Limited.
Interest in Securities as at the date of this report:
Unlisted options: 9,500,000
DR SIMON DOMINY
Non-Executive Director
Dr Simon Dominy is Adjunct Professor at the Western Australian School
of Mines (WASM), Curtin University, and a Visiting Associate Professor
at the Camborne School of Mines (CSM), University of Exeter, UK.
Simon is a mining geologist-engineer with over 25 years’ experience
based in mine operations, consulting and academia. He has worked on
a number of gold projects in Australia particularly in WA, QLD and VIC,
and across Europe, the Americas, and Africa.
Since 2015 he has been working with several of private and listed
entities developing/operating gold projects including: MG Gold Ltd;
Novo Resources Corporation (TSV: NVO); Scotgold Resources Ltd (AIM:
SGZ) and OCX Gold Group.
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Artemis Resources Annual Report 2021
Directors’ Report
Directors’ Report
Between 2004-2014 he was an Executive Consultant/General Manager
with the Snowden Group based in Australia and UK, including two years
contracted out to LionGold Corporation (SGX: A78).
Simon is a Fellow of the Australasian Institute of Mining and Metallurgy
(“FAusIMM”) and the Australian Institute of Geoscientists (“FAIG”).
Over the past 20 years he has acted as a Competent/Qualified Person
on numerous mineral deposits globally.
Interest in Securities as at the date of this report:
Nil
FORMER DIRECTOR
Mr Boyd Timler was appointed on 1 October 2021 as a Non-Executive
Director, became an Executive Director on 1 February 2021 and
resigned on 24 May 2021.
Company Secretary
MR GUY ROBERTSON
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.
Significant Changes in State of Affairs
As outlined in the operations report the mineral resource estimate for the Carlow Castle project was
downgraded in May 2021.
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. 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
Dr Simon Dominy was appointed a non-executive director on 1 July 2021.
Other than as outlined above there are 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.
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Artemis Resources Annual Report 2021
Directors’ Report
Directors’ Report
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 $10,483,611 (2020: loss of
$12,273,340). The loss position for the year includes non-cash items comprising a write off of
exploration costs of $7,113,105 (2020: $9,318,149), fair value gain on financial assets of $708,289
(2020: $3,666,670), and share based payments in the amount of $1,401,000 (2020: $1,340,163).
The Group’s operating income decreased to $133,815 (2020: $188,506). The Group’s expenses
decreased to $11,297,045 (2020: $15,203,099).
The carrying value of exploration and development costs decreased to $28,203,617 (2020:
$25,773,132) reflecting exploration undertaken during the year and the impairment of the carrying
costs of exploration on the Company’s projects. The development expenditure has increased
marginally to $23,473,919 (2020: $23,414,154) reflecting refurbishment on the Radio Hill Plant and
the fact that it remains on care and maintenance.
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 follows:
Name of Director
Mark Potter
Alastair Clayton
Edward Mead
Daniel Smith
Boyd Timler
Board Meetings
Audit Committee
Meetings
Remuneration
Committee Meetings
Attended
Held
Attended
Held
Attended
Held
14
14
14
14
7
14
14
14
14
7
2
2
2
2
1
2
2
2
2
1
1
-
1
1
-
1
-
1
1
-
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Artemis Resources Annual Report 2021
Directors’ Report
Directors’ Report
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.
The Company paid insurance premiums of $53,667 on 31 August 2021 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
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
As at publication date, 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 2021 has been received and
can be found on page 43 of the financial report.
This Report is made in accordance with a resolution of the Directors.
Mark Potter
Chairman
30 September 2021
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Artemis Resources Annual Report 2021
Remuneration Report
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
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Artemis Resources Annual Report 2021
Remuneration Report
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 – Non-Executive Director (appointed 29 January 2020)
Edward Mead – Executive Director (appointed 31 December 2014)
Daniel Smith – Non-Executive Director (appointed 5 February 2019)
Simon Dominy – Non-Executive Director (appointed 1 July 2021)
Former Directors
Boyd Timler – Non-Executive Director (appointed 1 October 2020, resigned 24 May 2021)
Key Management Personnel
Stephen Boda – 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.
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Artemis Resources Annual Report 2021
Remuneration Report
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.
FY20/21
Name
Base Salary
and Fees
Share
Based
Payments
$
$
Post
Employment
Super-
Contribution
$
M. Potter
A. Clayton
E. Mead
D. Smith
B. Timler¹
A.Younger
S. Boda
948,900
452,100
-
-
-
-
-
1,401,000
¹Includes termination payment of $93,191, on resignation on 24 May 2021.
125,132
328,535
188,225
50,004
228,591
177,192
55,974
1,153,653
-
-
-
-
16,562
16,833
2,679
36,074
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
$
-
-
-
-
-
-
-
1 Commenced 24 February 2020.
2 Commenced 29 January 2020.
3 Resigned during financial year.
Total
Performance
based
$
1,074,032
780,635
188,225
50,004
245,153
194,025
58,653
2,590,727
%
88%
58%
-
-
-
-
-
Total
Performance
based
$
75,941
494,733
395,294
331,884
220,000
105,000
1,622,852
%
63
73
42
85
64
83
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Artemis Resources Annual Report 2021
Remuneration Report
Remuneration Report
C. Service agreements
Component
Fixed remuneration
Contract duration
Notice by the
individual/company
Non-executive
Chairman
$120,000
Ongoing
Executive
Director
$300,000
Ongoing
Non-executive
directors
$50,000
Ongoing
1 month
3 months
1 month
All Board members have letters of appointment, with remuneration and terms as stated.
The Exploration Manager has a contract providing for a gross salary of $308,000 plus superannuation.
The contract has a three-month notice period.
D. Share-based compensation
Options
The terms of each grant of options affecting remuneration in the previous, current or future reporting
periods are as follows:
Date option granted
Expiry date
Issue price of Shares Number under option
30 April 2020
31 July 2022
30 April 2020
31 July 2023
5 cents
7 cents
43,500,000
43,500,000
1 December 2020
1 December 2023
18 cents
5,000,000
1 December 2020
1 December 2025
25 cents
5,000,000
The following options relating to Boyd Timler were issued and forfeited on resignation during the
year.
30 September 2020
30 September 2022
10 cents
2,500,000
30 September 2020
30 September 2023
12.5 cents
2,500,000
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Artemis Resources Annual Report 2021
Remuneration Report
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
Vesting date²
Mark Potter
Alastair
Clayton
30 April 2020
31 July 2022
5,000,0003
$65,050
31 July 2020
30 April 2020
31 July 2022
30,000,0003
$390,300
31 July 2020
Edward Mead
30 April 2020
31 July 2022
3,750,0003
$48,787
30 April 2020
Daniel Smith
30 April 2020
31 July 2022
4,750,0003
$61,798
30 April 2020
Mark Potter
Alastair
Clayton
30 April 2020
31 January 2023
5,000,0004
$75,350 24 February 2021
30 April 2020
31 January 2023
30,000,0004
$452,100 29 January 2021
Edward Mead
30 April 2020
31 January 2023
3,750,0004
$56,512
30 April 2020
Daniel Smith
30 April 2020
31 January 2023
4,750,0004
$71,583
30 April 2020
Mark Potter
1 December 2020
1 December 2023
5,000,0005
$406,150 1 December 2021
Mark Potter
1 December 2020
1 December 2025
5,000,0006
$467,400 1 December 2021
Boyd Timler¹
30 September 2020 30 September 2022
2,500,0007
$134,200
Boyd Timler¹
30 September 2020 30 September 2023
2,500,0008
$142,650
¹No expense was recorded during the year on these options as they were forfeited on resignation.
N/A
N/A
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.
²Vesting dates are between one and two years from date of appointment.
3Exercise price $0.05, value per option $0.01301
⁴Exercise price $0.07, value per option $0.01507
5Exercise price $0.18, value per option $0.08123
6Exercise price $0.25, value per option $0.09348
7Exercise price $0.10, value per option $0.05368
8Exercise price $0.125, value per option 0.05706
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.
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Artemis Resources Annual Report 2021
Remuneration Report
Remuneration Report
E. Additional disclosures relating to key management personnel
Shares held by Directors and Key Management Personnel
FY20/21
Name
M. Potter
A. Clayton
E. Mead
D. Smith
B. Timler¹
A. Younger²
S. Boda
¹Resigned 24 May 2021
²Resigned subsequent to year end
FY19/20
Name
M. Potter1
A. Clayton2
E. Mead
D. Smith
G. Robertson4
H.H. Sheikh Maktoum3
Balance at the
beginning of the
year
Received as
remuneration
Net Change
Other
Balance at
resignation/
the end of year
-
500,000
4,483,870
-
-
-
-
4,983,870
-
-
-
-
-
-
-
-
-
1,500,000
-
-
-
-
-
1,500,000
-
2,000,000
4,483,870
-
-
-
-
6,483,870
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
1 Commenced 24 February 2020.
2 Commenced 29 January 2020.
3 Resigned during financial year.
4 G.Robertson is not a Key Management Person in 2021.
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Artemis Resources Annual Report 2021
Remuneration Report
Remuneration Report
E. Additional disclosures relating to key management personnel (continued)
Options and performance rights held by Directors and Key Management Personnel
FY20/21
Name
Options
M. Potter
A. Clayton
E. Mead
D. Smith
B. Timler¹
A.Younger
S. Boda
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
7,500,000
9,500,000
-
-
-
10,000,000
-
-
-
5,000,000
-
-
-
-
-
-
(5,000,000)
-
-
20,000,000
60,000,000
7,500,000
9,500,000
-
-
-
87,000,000
15,000,000
(5,000,000)
97,000,000
¹Resigned 24 May 2021 and options cancelled on resignation.
No performance rights were issued during the year.
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
-
-
-
-
-
-
-
-
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Artemis Resources Annual Report 2021
Remuneration Report
Remuneration Report
E. Additional disclosures relating to key management personnel (continued)
Other transactions with key management personnel
Doraleda Pty Ltd1
Integrated CFO Solutions2
Minerva Corporate Pty Ltd3
Kiran Capital Advisors Limited4
Consolidated
30 June 2021
$
30 June 2020
$
188,225
-
134,000
16,666
338,891
230,000
18,300
117,694
28,095
394,089
1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest. Directors fees
accrued and not paid at year ended amount to $4,167.
2 Company secretary fees and consulting fees paid to Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest.
3 Director fees ($50,004) and accounting fees ($83,996) paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith has
an interest. Directors fees accrued and not paid as at year ended amounted to $4,167.
4 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest.
Directors fees and not paid at year end to Mr Alastair Clayton amounted to $25,795.
END OF AUDITED REMUNERATION REPORT
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Artemis Resources Annual Report 2021
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 2021, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
a)
the auditor independence requirements of 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 2021
B G McVeigh
Partner
44
Consolidated Statement of Profit or Loss and
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the Year Ended 30 June 2021
Other Comprehensive Income
For the Year Ended 30 June 2021
Revenue
Cost of sales
Fair value gain on financial assets
Profit/(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 loss
LOSS BEFORE INCOME TAX
Income tax expense/benefit
LOSS FOR THE YEAR
Other comprehensive income, net of tax
Consolidated
Notes
3
30 June 2021
$
133,815
30 June 2020
$
188,506
12
12
16
25
4
(38,617)
708,289
9,946
(56,375)
(33,540)
(546,610)
(471,802)
(140,710)
(920,675)
(9,440)
(232,106)
(28,461)
(342,811)
(7,113,105)
-
(1,401,000)
(409)
(10,483,611)
-
(10,483,611)
-
(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)
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
(10,483,611)
(12,273,340)
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
(10,483,611)
(12,273,340)
(10,483,611)
(12,273,340)
23
23
(0.93)
(0.93)
(1.35)
(1.35)
The consolidated statement of profit or loss and other comprehensive income is to be read in
conjunction with the accompanying notes
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Artemis Resources Annual Report 2021
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2021
For the Year Ended 30 June 2021
CURRENT ASSETS
Cash and cash equivalents
Other receivables
Assets held for sale
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 2021
$
Notes
30 June 2020
$
5
6
7
8
9
10
11
12
13
14
11
15
16
17
18
19
9,082,554
309,546
1,600,000
533,542
11,525,642
90,507
33,732
-
26,603,617
23,473,919
50,601,775
61,727,417
2,643,864
-
2,170
-
2,646,034
412,138
170,139
280,212
6,586,551
7,449,040
117,703
71,676
35,442
25,773,132
23,414,154
49,412,107
56,861,147
1,834,010
40,824
10,133
116,671
2,001,638
1,413,123
1,413,123
4,059,157
57,668,260
1,413,123
1,413,123
3,414,761
53,446,386
105,885,802
3,376,640
(51,564,182)
57,668,260
57,668,260
92,294,878
3,257,318
(42,105,810)
53,446,386
53,446,386
The consolidated statement of financial position should be read in conjunction with the
accompanying notes.
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Artemis Resources Annual Report 2021
Consolidated Statement of Changes in Equity
Consolidated Statement of Changes in Equity for the Year Ended
30 June 2021
for the Year Ended
For the Year Ended 30 June 2021
Consolidated
Issued
Capital
Reserves
Accumulated
Losses
Total
Equity
Conversion of options
256,439
(256,439)
Balance at 1 July 2020
Loss for the year
Total comprehensive loss for the
year
Issue of shares
Cost of share issue
Lapse of options
Share-based payments
Balance at 30 June 2021
Consolidated
Balance at 1 July 2019
Loss for the year
Total comprehensive loss for the
year
Issue of shares
$
$
$
$
92,294,878
3,257,318
(42,105,810)
53,446,386
-
-
14,359,343
(1,054,858)
-
-
-
-
(10,483,611)
(10,483,611)
(10,483,611)
(10,483,611)
-
-
14,359,343
(1,054,858)
-
(1,025,239)
1,025,239
-
-
1,401,000
-
-
-
1,401,000
105,855,802
3,376,640
(51,564,182)
57,668,260
Issued
Capital
$
81,438,336
Reserves
$
2,571,003
Accumulated
Losses
$
(30,589,267)
Total
Equity
$
53,420,072
-
-
- (12,273,340)
(12,273,340)
-
(12,273,340)
(12,273,340)
10,581,342
-
- 10,581,342
Conversion of performance rights
275,200
(275,200)
-
Lapse of performance rights
Share-based payments
Balance at 30 June 2020
(756,797)
756,797
-
-
1718,312
-
1,718,312
92,294,878
3,257,318
(42,105,810)
53,446,386
-
-
The consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
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Artemis Resources Annual Report 2021
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the Year Ended 30 June 2021
For the Year Ended 30 June 2021
Consolidated
30 June
2021
$
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
Payments for purchase of investments
Proceeds on sale of project
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
Repayment of convertible note
NET CASH PROVIDED BY FINANCING ACTIVITIES
Net increase/(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
26
27
27
27
35,000
(2,082,967)
7,404
-
105,970
(1,934,593)
7,406,323
(9,750,122)
(59,765)
(508,942)
369,000
(2,543,506)
12,599,475
(608,828)
1,313,838
(116,671)
(40,824)
-
13,146,990
8,668,891
412,138
1,525
5
9,082,554
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
(410,432)
821,481
1,089
412,138
The consolidated statement of cash flows is to be read in conjunction with the accompanying notes.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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 30 September 2021.
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;
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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
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Notes to the Financial Statements
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.
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.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Adoption of New a Revised Accounting Standards or Interpretations
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards
and Interpretations issued by the AASB that are relevant to the Company and effective for the
current reporting period. As a result of this review, the Directors have determined that there is no
material impact of the new and revised Standards and Interpretations on the Group and therefore,
no material change I s necessary to Group accounting policies.
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 2021. As a result of this review the Directors have
determined that there is no material impact of the Standards and Interpretations in issue not yet
adopted by the Company.
Going Concern
For the year ended 30 June 2021, the Group recorded a loss of $10,483,611 (2020: Loss of
$12,273,340) and had net cash outflows from operating activities of $1,934,593 (2020:
$2,085,821) and has a net working capital surplus of $7,279,608 as at 30 June 2021 (2020:
$5,447,402).
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 $9,082,554 and net assets of $57,668,260 as at 30 June 2021;
• The Company has raised $12,599,475 in new capital during the year 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;
• The ability of the Group to scale back certain parts of their activities that are non-essential so
as to conserve cash; and
• The Group retains the ability, if required, to wholly or in part dispose of interests in mineral
exploration and development assets, and liquid investments.
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.
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Notes to the Financial Statements
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.
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Notes to the Financial Statements
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:
Ø 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
Ø 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.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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.
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Notes to the Financial Statements
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.
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.
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.
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Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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 expenditures 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.
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Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
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Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
Notes to the Financial Statements
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Exploration and evaluation, and development expenditure carried forward (Continued)
Goods and services tax (GST)
The recoverability of the carrying amount of mine development expenditure carried forward has
Revenues, expenses and assets are recognised net of the amount of GST, except where the
been reviewed by the Directors. In conducting the review, the recoverable amount has been
amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances
assessed by reference to the higher of “fair value less costs to sell” and “value in use”. In
the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the
determining value in use, future cash flows are based on:
expense. Receivables and payables in the consolidated statement of financial position are shown
• Estimates of ore reserves and mineral resources for which there is a high degree of confidence
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.
• Estimated production and sales levels;
of economic extraction;
• Estimate future commodity prices;
Parent entity disclosures
• Future costs of production;
The financial information for the parent entity, Artemis Resources Limited, has been prepared on
the same basis as the consolidated financial statements.
• Future capital expenditure; and/or
Assets and Liabilities Held for Sale
• Future exchange rates.
Variations to expected future cash flows, and timing thereof, could result in significant changes to
Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will
the impairment test results, which in turn could impact future financial results.
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
Refer to note 13 for more details on impairment assessment.
sale in its present condition subject only to terms that are usual and customary for sales for such
Share-based payment transactions
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 Group measures the cost of equity-settled transactions with employees by reference to the
the date of classification.
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
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the
Note 25.
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
Fair value of financial instruments
subsidiary, after the sale.
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
Use of estimates and judgements
estimates and assumptions consistent with how market participants would price the instrument.
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
Provision for restoration and rehabilitation
assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates
The provision for restoration and rehabilitation has been estimated based on quotes provided by
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
third parties. The provision represents the best estimate of the present value of the expenditure
are recognised in the period in which the estimate is revised and in any future periods affected.
required to settle the restoration obligation at the reporting date.
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.
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2. SEGMENT INFORMATION
Artemis Resources Limited Annual Financial Report – June 2021
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Exploration and evaluation, and development expenditure carried forward (Continued)
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.
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.
Refer to note 13 for more details on impairment assessment.
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 25.
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.
Notes to the Financial Statements
Notes to the Financial Statements
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.
Artemis Resources Limited Annual Financial Report – June 2021
60| P a g e
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.
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61| P a g e
62
Artemis Resources Annual Report 2021
Notes to the Financial Statements
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63
Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
3. REVENUE
Revenue
Sales of gold, silver and copper ore
Other revenue
Government subsidy – cash flow boost
Other sundry income
Interest received
4.
INCOME TAXES
(a) Income tax expense
Current tax
Deferred tax
Income tax expense
Consolidated
30 June 2021
$
30 June 2020
$
-
-
74,093
52,318
7,404
133,815
185,217
185,217
-
-
3,289
188,506
Consolidated
30 June 2021
$
30 June 2020
$
-
-
-
-
-
-
(b) Income tax recognised in the statement of profit or loss and other comprehensive income
Loss before tax
Tax at 30% (2020: 27.5%)
Tax effect on non-assessable income
Tax effect of non-deductible expenses
Exploration expenditure
Timing differences not brought to account
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 2021
$
(10,483,611)
(3,145,083)
(212,487)
420,300
2,133,932
803,338
-
30 June 2020
$
(12,273,340)
(3,375,169)
(1,008,334)
410,236
2,562,491
1,410,776
-
Consolidated
30 June 2021
$
30 June 2020
$
10,706,790
1,592,017
651
423,937
12,723,395
8,491,085
8,491,085
4,232,310
5,784,161
1,170,591
2,533
353,281
7,310,566
4,295,819
4,295,819
3,014,747
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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
9,082,554
412,138
Consolidated
30 June 2021
$
30 June 2020
$
6. OTHER RECEIVABLES
Other receivables
GST receivables
Prepayments
Consolidated
30 June 2021
$
30 June 2020
$
12,580
156,057
140,909
309,546
6,356
-
163,783
170,139
The value of trade and other receivables considered by the Directors to be past due or impaired
is nil (2020: Nil).
7. ASSETS HELD FOR SALE
The Company has entered into a binding option agreement with GreenTech Metals Limited
(GreenTech) to sell GreenTech non-core tenements with a carrying value of $1.6 million in cash
and shares in GreenTech. The Company expects that the sales will be consummated in this
calendar year.
Subsequent to the 30 June 2020 year end, 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. The sale was completed in the 2021 financial year.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
8. OTHER FINANCIAL ASSETS
Current
Fair Value Through Profit or Loss
Shares in listed equity securities (Level 1)
Movement in other financial assets
Opening balance
Additions - cash
Additions - non-cash1
Disposals
Fair value gain
Closing balance
Consolidated
30 June 2021
$
30 June 2020
$
533,542
6,586,551
Consolidated
30 June 2021
$
6,586,551
508,942
136,083
(7,406,323)
708,289
533,542
30 June 2020
$
-
-
2,919,881
-
3,666,670
6,586,551
¹During the 2021 financial year, the Group sold tenements with a carrying value of $494,977 for
proceeds of $369,000 in cash and 37,357,190 shares in Alien Metals Limited.
In the prior year, the Group completed the sale of Purdy’s Reward and 47K Patch gold projects to Novo
Resources Corp (Novo), simultaneously, part of the consideration for the sale was 1,640,000 shares in
Novo and cash of $820,000.
9. PLANT AND EQUIPMENT
Consolidated
30 June 2021
$
30 June 2020
$
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
60,347
(23,591)
36,756
114,085
(62,534)
51,551
2,950
(750)
2,200
55,971
(12,312)
43,659
103,198
(31,354)
71,844
2,950
(750)
2,200
Total plant and equipment
90,507
117,703
Reconciliation of movement during the year
Reconciliations of the carrying amounts for each class of plant and equipment are set out below:
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
9. PLANT AND EQUIPMENT (continued)
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
- Depreciation
Carrying amount at the end of the year
Motor vehicles
Carrying amount at the beginning of the year
- Additions
- Amortisation
Carrying amount at the end of the year
10. INTANGIBLE ASSETS
Consolidated
30 June 2021
$
30 June 2020
$
43,659
4,376
(11,279)
36,756
71,844
10,887
(31,180)
51,551
2,200
-
-
2,200
53,636
2,335
(12,312)
43,659
103,198
-
(31,354)
71,844
2,950
-
(750)
2,200
Consolidated
30 June 2021
$
30 June 2020
$
Computer Software - at cost
Less: Accumulated amortisation
Total computer software at net book value
151,262
(117,530)
33,732
151,365
(79,689)
71,676
Reconciliation of movement during the year:
Computer Software:
Carrying amount at the beginning of the year
- Disposal
- Amortisation
Carrying amount at the end of the year
Consolidated
30 June 2021
$
30 June 2020
$
71,676
(103)
(37,841)
33,732
109,414
-
(37,738)
71,676
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67
Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
11. 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 opening balance
Add: New leases
Less: Amortisation
Right-of-use assets closing balance
Movement in lease liabilities
Lease liability recognised at start of year
Add: Interest Expense
Less: Loan forgiveness on early lease break
Less: Principal repayment
Closing balance
Consolidated
30 June 2021
$
30 June 2020
$
-
-
-
-
-
35,442
35,442
40,824
-
40,824
Consolidated
30 June 2021
$
35,442
-
(35,442)
-
30 June 2020
$
188,969
-
(153,527)
35,442
Consolidated
30 June 2021
$
40,824
805
-
(41,629)
-
30 June 2020
$
188,969
5,076
(24,608)
(129,153)
40,824
a) Amounts recognised in the statement of profit or loss:
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)
30 June 2021
30 June 2020
$
$
35,442
35,442
805
33,540
131,746
131,746
5,075
-
The total cash outflow for leases during the year ended 30 June 2021 was $40,824 (2020:
$100,946).
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Notes to the Financial Statements
Notes to the Financial Statements
11. LEASES (CONTINUED)
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.
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.
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.
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Notes to the Financial Statements
Notes to the Financial Statements
11. LEASES (CONTINUED)
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.
12. EXPLORATION AND EVALUATION EXPENDITURE
Consolidated
30 June 2021
$
30 June 2020
$
Exploration and evaluation expenditure
26,603,617
25,773,132
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. 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
Carrying value of projects sold²
Exploration expenditure written off, other3
Transfer to assets held for sale
Closing balance
Consolidated
30 June 2021
$
25,773,132
10,038,567
-
(494,977)
(7,113,105)
(1,600,000)
26,603,617
30 June 2020
$
37,027,656
2,880,616
(4,536,779)
-
(9,318,149)
(280,212)
25,773,132
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Notes to the Financial Statements
Notes to the Financial Statements
12. EXPLORATION AND EVALUATION EXPENDITURE (CONTINUED)
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.
²During the 2021 financial year, the Group sold tenements with a carrying value of $494,977 for
proceeds of $369,000 in cash and 37,357,190 shares in Alien Metals Limited.
3The 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.
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Notes to the Financial Statements
Notes to the Financial Statements
13. DEVELOPMENT EXPENDITURE
Development expenditure
Reconciliation of movement during the year:
Opening balance
Additions
Closing balance
Impairment assessment
Consolidated
30 June 2021
$
23,473,919
30 June 2020
$
23,414,154
Consolidated
30 June 2021
$
23,414,154
59,765
23,473,919
30 June 2020
$
23,353,620
60,534
23,414,154
The downgrade of the Carlow Castle Mineral Resource estimate in May 2021 represented an
indicator of impairment of the Group’s development expenditure.
The recoverable amount of the cost to date for the work in progress on the Radio Hill Processing
Plant was reviewed for impairment. Following the review, the Directors have determined that the
recoverable amount exceeds the carrying value and that no impairment exists. The recoverable
amount estimation was based on the estimated value in use with a discount rate of 8% applied to
the cash flow projections and was determined at the cash-generating unit level. The cash-
generating unit consists of the process plant and other property, plant and equipment associated
with the project and associated exploration projects that will provide feed to the Radio Hill
processing plant. No material items required impairment or write offs.
14. TRADE AND OTHER PAYABLES
Trade and other payables
2,643,864
1,834,010
Consolidated
30 June 2021
$
30 June 2020
$
15. EMPLOYEE BENEFITS OBLIGATION
Opening balance
Provision for the year
Benefits used or paid
Closing balance
Consolidated
30 June 2021
$
10,133
-
(7,963)
2,170
30 June 2020
$
44,861
14,342
(49,070)
10,133
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Notes to the Financial Statements
Notes to the Financial Statements
16. FINANCIAL LIABILITIES
Short term loan at amortised cost
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 2021
$
-
-
30 June 2020
$
116,671
116,671
Consolidated
30 June 2021
$
30 June 2020
$
-
-
-
-
-
-
-
5,595,206
-
5,595,206
(588,000)
(5,162,725)
155,519
-
116,671
-
(116,671)
-
196,872
145,787
(225,988)
116,671
Total
¹ The short term loan is premium funding of annual insurance costs.
-
116,671
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.
17. PROVISIONS
Provision for restoration and rehabilitation
Consolidated
30 June 2021
$
1,413,123
1,413,123
30 June 2020
$
1,413,123
1,413,123
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
18. SHARE CAPITAL
Consolidated
Consolidated
30 June 2021
No. of Shares
30 June 2020
No. of Shares
30 June 2021
$
30 June 2020
$
Issued and Paid-up Capital
Ordinary shares, fully paid
1,254,997,561
1,033,819,481
105,855,802
92,294,878
Reconciliation of movement during the year:
2021
Shares
2021
$
2020
Shares
2020
$
1,033,819,481
92,294,878
661,991,065
87,338,535
81,438,336
2,707,500
79,992,856
5,599,475
242,721,875
7,177,473
116,666,667
7,000,000
-
-
-
-
-
-
17,922,980
1,313,838
26,765,625
910,340
5,050,000
141,750
-
4,000,000
-
275,200
6,595,667
446,030
5,952,381
125,000
-
-
-
(1,054,858)
-
-
134,112
(614,833)
-
1,254,997,651
256,439
105,855,802
-
1,033,819,481
-
92,294,878
Opening balance
Shares issued to investors for
Share Purchase Plan
Shares issued to investors for
Placement
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 exercise of
options
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
Transfer of share based
payments on conversion of
options
Closing balance
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.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
19. RESERVES
Share based payments
Options
Consolidated
Consolidated
30 June 2021
No. of
options/rights
30 June 2020
No. of
options/rights
145,300,624
158,663,462
30 June 2021
30 June 2020
$
$
3,376,640
3,276,640
3,257,318
3,257,318
During the Annual General Meeting held on 30 November 2020, shareholders approved the issue
of 5,000,000 Class E Options and 5,000,000 Class F Options to the Chairman, and 2,500,000 Class
C options and 2,500,000 Class D options were issued to Boyd Timler. The options issued to Boyd
Timler lapsed, unvested, on his termination and no expense was recorded.
Options exercised during the year and funds raised were as follows:
Series
Number of Options
Cash received $
Series 5
Series 6
Series 7
Total
4,922,980
10,000,000
3,000,000
17,922,980
393,838
800,000
120,000
$1,313,838
The unlisted options issued during the year or the prior year were valued using the Black-Scholes
model. The options outstanding as at 30 June 2021 were determined on the date of grant using
the following assumptions:
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Series 3
30/11/2018
0.21
95
2
3
0.145
0.080
8,571,429
Class A
Director
30/04/2020
0.05
89
0.64
2.4
0.032
0.01301
43,500,000
Series 5
24/05/2019
0.08
100
1.13
3
0.036
0.0165
13,729,195
Class B
Director
30/04/2020
0.07
103
0.63
2.9
0.032
0.01507
43,500,000
Series 6
22/07/2019
0.08
100
0.935
3
0.029
0.0121
10,000,000
Class A
Broker
01/05/2020
0.05
89
0.64
2.2
0.031
0.0117
7,500,000
Series 7
01/05/2020
0.04
100
0.63
3
0.031
0.0181
1,000,000
Class B
Broker
01/05/2020
0.07
103
0.63
3.2
0.031
0.0154
7,500,000
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Notes to the Financial Statements
Notes to the Financial Statements
19. RESERVES (CONTINUED)
Grant date
Exercise price ($)
Expected volatility (%)
Risk-free interest rate (%)
Expected life (years)
Share price at this date ($)
Fair value per option ($)
Number of options
Class E Director
Class F Director
2/12/2020
0.18
93
0.142
3
0.15
0.08123
5,000,000
2/12/2020
0.25
93
0.142
5
0.15
0.07053
5,000,000
For the year ended 30 June 2021, the Group has recognised $1,401,000 (2020: $1,157,596) of
share-based payment expense, and Nil (2020 : $518,151) of consulting fees in the income
statement in relation to share options and performance rights issued.
20. FINANCIAL RISK MANAGEMENT OBJECTIVES 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 or International 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:
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Notes to the Financial Statements
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
FY2021
Carrying
Amount
Effect on profit before tax
Effect on pre-tax equity
+1%
-1%
+1%
-1%
9,082,554
90,826
(90,826)
90,826
(90,826)
Financial Assets
Cash and cash
equivalents1
Trade and other
receivables2
Other financial
assets5
Financial liabilities
Trade and other
payables3
Financial Liabilities4
309,546
533,542
9,925,642
2,643,864
-
2,643,864
Total increase/(decrease)
-
-
-
-
-
90,826
-
(90,826)
-
90,826
-
(90,826)
-
-
-
-
-
-
90,826
-
-
(90,826)
-
-
90,826
-
-
(90,826)
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
assets5
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
1 Cash and cash equivalents are denominated in both AUD and USD. At 30 June 2021, A$ Nil was
denominated in USD (30 June 2020: A$6,894). The weighted average interest rate for the year ended 30
June 2021 as 0.03% (2020: 0.01%). No other financial assets or liabilities, other than short term loan, see
below, are interest bearing.
2 Trade and other receivables are denominated in AUD and are not interest bearing.
3 Trade and other payables at balance date are denominated mainly in AUD and are not interest bearing.
4 The short-term loan is premium funding of annual insurance costs at an interest rate of 2.99%.
5 Other financial assets are designated in AUD (2020 – CAD) and are non-interest bearing.
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Notes to the Financial Statements
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
(ii) Credit Risk
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting
in financial loss to the Company. The Company has adopted the policy of only dealing with credit
worthy counterparties and obtaining sufficient collateral or other security where appropriate, as
a means of mitigating the risk of financial loss from defaults.
The Company does not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics. The carrying amount of financial assets
recorded in the financial statements, net of any provisions for losses, represents the Company’s
maximum exposure to credit risk.
(iii) Foreign Exchange Risk
The Company had the following United States dollar denominated assets and liabilities at year
end.
Cash
Cash and cash equivalents
Consolidated
30 June 2021
US$
30 June 2020
US$
-
4,735
The Company had the following Canadian dollar denominated assets at year end.
Other financial assets
Shares in Novo Resources Corp.
Consolidated
30 June 2021
CAD$
30 June 2021
CAD$
-
6,586,551
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
20. FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (CONTINUED)
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
FY2021
FY2020
+5%
-5%
+5%
-5%
-
-
345
(345)
-
-
345
(345)
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
FY2021
FY2020
(iv) Market Risk
+5%
-5%
+5%
-5%
-
-
329,328
(329,328)
-
-
(329,328)
329,328
The Company’s listed investments are affected by market price volatility. The following table
shows the effect of market price changes.
FY2021
FY2020
Change in
year end
price
Effect on profit
before tax
Effect on pre-
tax equity
+5%
-5%
+5%
-5%
26,677
(26,677)
329,328
(329,328)
26,677
(26,677)
329,328
(329,328)
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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.
FY2021
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
2,643,864
-
2,643,864
9,082,554
309,546
533,542
9,925,642
7,281,778
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,643,864
-
2,643,864
9,082,554
309,546
533,542
9,925,642
7,281,778
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
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Notes to the Financial Statements
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. COMMITMENTS FOR EXPENDITURE
The Group currently has commitments for expenditure at 30 June 2021 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 2021
$
30 June 2020
$
1,196,013
2,317,722
1,181,899
4,695,634
1,435,633
3,670,314
2,303,772
7,409,719
The Company evaluates its tenements and exploration programme on an annual basis and may
elect not to renew tenement licences if it deems appropriate.
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Notes to the Financial Statements
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 2021. Key Management Personnel for the year ended 30 June 2021 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 2021
$
30 June 2020
$
1,153,653
1,401,000
36,074
2,590,727
541,696
1,081,156
-
1,622,852
(c) Remuneration options and performance rights: As at 30 June 2021, 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
Doraleda Pty Ltd1
Integrated CFO Solutions2
Kiran Capital Advisors Limited3
Minerva Corporate Pty Ltd4
Consolidated
30 June 2021
$
30 June 2020
$
188,225
-
16,666
134,000
338,891
230,000
18,300
28,095
117,694
394,089
1 Director fees and consulting fees paid to Doraleda Pty Ltd, a company in which Mr Edward Mead has an interest.
2Company secretary fees and consulting fees paid to Integrated CFO Solutions, a company in which Mr Guy Robertson has an interest.
3 Non-Executive Chairman fees paid to Kiran Capital Advisors Limited, a company which Mr Mark Potter has an interest.
4 Director fees, consulting fees and accounting fees paid to Minerva Corporate Pty Ltd, a company in which Mr Daniel Smith has an
interest.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
23. EARNINGS PER SHARE
The calculation of basic earnings and diluted earnings per share at 30 June 2021 was based on the
loss attributable to shareholders of the parent company of $10,483,611 (2020: Loss $12,273,340):
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
Taxation services
25. SHARE-BASED PAYMENTS
Consolidated
30 June 2021
$
(0.93)
(0.93)
30 June 2020
$
(1.35)
(1.35)
No of Shares
No of Shares
1,131,789,115
-
1,131,789,115
907,191,936
-
907,191,936
Consolidated
30 June 2021
$
30 June 2020
$
47,027
5,000
52,027
46,125
-
46,125
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.
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
25. SHARE-BASED PAYMENTS (CONTINUED)
The following share-based payment arrangements were in place during the prior and current
financial year:
Instruments
Date granted
Expiry date
Exercise
price
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options
Options¹
Options¹
31 January 2018
30 November 2018
24 May 2019
22 July 2019
1 May 2020
1 May 2020
1 May 2020
1 May 2020
1 May 2020
31 January 2021
15 January 2021
31 July 2022
31 July 2022
1 May 2023
31 July 2022
31 July 2023
31 July 2022
31 July 2023
2 December 2020 2 December 2023
2 December 2020 2 December 2025
30 September 2020
30 September 2020
Lapsed
Lapsed
0.45
0.21
0.08
0.08
0.04
0.05
0.07
0.05
0.05
0.18
0.25
0.10
0.125
¹Options lapsed on resignation of Boyd Timler
Movement in share-based arrangements on issue
(a) Options
No. of
instruments
2021
Nil - expired
8,571,429
13,729,195
10,000,000
1,000,000
43,500,000
43,500,000
7,500,000
7,500,000
5,000,000
5,000,000
2,500,000
2,500,000
No. of
instruments
2020
5,439,858
8,571,429
18,652,175
20,000,000
4,000,000
43,500,000
43,500,000
7,500,000
7,500,000
-
-
-
-
Fair value
at grant
date
0.0142
0.0800
0.02
0.0121
0.0181
0.01301
0.01507
0.01301
0.01507
0.08123
0.09348
0.05368
0.05706
Balance at beginning of year
Options granted during the year
Options exercised
Options forfeited/lapsed during the year
Balance at end of year
Number of instruments
30 June 2021
30 June 2020
158,663,462
15,000,000
(17,922,980)
(10,439,858)
145,300,624
38,663,462
126,000,000
-
(6,000,000)
158,663,462
Options exercisable at end of year
145,300,624
158,663,462
(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 2021
30 June 2020
-
-
-
-
15,000,000
(4,000,000)
(11,000,000)
-
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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:
Shares issued to director for services rendered
Options – directors
Consolidated
30 June 2021
$
-
1,401,000
1,401,000
30 June 2020
$
140,000
1,200,163
1,340,613
26. RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO LOSS AFTER INCOME TAX
Loss after income tax
Depreciation and amortisation
Exploration and project expenditure written off
Share based payments
Finance costs, non cash
(Profit)/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
Changes in current assets and liabilities during the
financial period:
(Increase/(Decrease in receivables
Decrease in inventories
Increase in trade and other payables
Net cash outflow from operating activities
Consolidated
30 June 2021
$
(10,483,611)
115,742
7,113,105
1,401,000
-
(9,946)
30 June 2020
$
(12,273,340)
180,005
9,318,149
1,340,163
587,094
769,898
(708,289)
(3,666,670)
-
409
-
155,519
26,887
188,640
(139,407)
-
776,404
(1,934,593)
84,116
460,202
743,516
(2,085,821)
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
27. CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
FY2021
Consolidated
Opening balance
Net cash from financing activities
Equity conversion
Cash repayment
Foreign exchange gain
Closing balance
Lease liability
$
40,824
-
-
(40,824)
-
-
Convertible
loan note
$
-
-
-
-
-
-
Short term
loan
$
116,671
-
-
(116,671)
-
-
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
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
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 2021
$
30 June 2020
$
9,745,340
3,264,949
13,010,289
2,263,539
-
2,263,539
7,439,500
3,036,664
10,476,164
1,850,367
-
1,850,367
10,746,750
8,625,797
105,855,802
3,376,639
(98,485,691)
10,746,750
(11,559,292)
-
(11,559,292)
92,294,878
3,257,318
(86,926,399)
8,625,797
(12,733,835)
-
(12,733,835)
-
-
-
120,782
19,087
139,869
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Artemis Resources Annual Report 2021
Notes to the Financial Statements
Notes to the Financial Statements
29. SUBSIDIARIES
Country of
Incorporation
Ownership
%
30 June 2021
30 June 2020
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
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
-
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 16. 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 2021
Dr Simon Dominy was appointed as a non-executive director on 1 July 2021.
Other than as outlined above, there are 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.
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Artemis Resources Annual Report 2021
Consolidated Statement of Changes in Equity for the Year Ended
Directors Declaration
30 June 2021
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 2021 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 2021.
This declaration is signed in accordance with a resolution of the Board of Directors.
Alastair Clayton
Executive Director
30 September 2021
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Artemis Resources Annual Report 2021
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 2021, 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 2021 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 section, we have determined the matters described below
to be the key audit matters to be communicated in our report.
90
Key Audit Matter
How our audit addressed the key audit
matter
Carrying value of Development Expenditure
Refer to Note 13
The Group has development expenditure of
$23,473,919 in relation to construction of the Radio
Hill Gold Recovery Circuit Processing Facility for the
Carlow Castle Project.
An impairment assessment was conducted by
management due to the existence of impairment
indicators arising under AASB 136 Impairment of
Assets.
The impairment assessment conducted under AASB
136 involved a comparison of the recoverable amount
of the cash generating unit to which the balance was
allocated to the carrying amount of the related items in
the balance sheet. Recoverable amount was based
upon the higher of fair value less costs of disposal and
value-in-use.
The evaluation of recoverable amount is considered a
key audit matter as it was based upon a value-in-use
calculation which required significant judgement and
estimation. In addition, the balance is material to the
users of the financial statements and involved the
most communication with management.
Capitalised Exploration and Evaluation Expenditure
Refer to Note 12
Our procedures included but were not
limited to:
- Critically evaluating management’s
the value-in-use
in
for key
the basis
methodology
model and
assumptions;
- Reviewing
- Performing
the
mathematical
accuracy of the value-in-use model;
analyses
sensitivity
around the key inputs used in the
model such as operating costs,
recoveries, grade and commodity
prices;
- Considering the appropriateness of
the discount rate used;
- Considered whether
the assets
comprising
the Radio Hill cash-
generating unit had been correctly
allocated;
- Comparing value-in-use
carrying amount of
generating unit; and
the
to
the cash-
- Assessing the appropriateness of the
disclosures included in the relevant
notes to the financial report.
In accordance with AASB 6 Exploration for and
Evaluation of Mineral Resources, the Group
capitalises exploration and evaluation expenditure and
as at 30 June 2021 had a deferred exploration and
evaluation expenditure balance of $26,603,617.
Exploration and evaluation expenditure was
determined to be a key audit matter as it is important
to the users’ understanding of the financial statements
as a whole and was an area which involved the most
audit effort and communication with those charged
with governance.
Our procedures included but were not
limited to:
- Obtained an understanding of the key
with
processes
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.
91
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 2021, 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.
92
-
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 2021.
In our opinion, the Remuneration Report of Artemis Resources Limited for the year ended 30 June
2021 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 2021
B G McVeigh
Partner
93
Additional Information – Australian Securities
Additional Information – Australian Securities
Exchange
Exchange
Additional information required by the Australian Securities Exchange Limited Listing Rules and not
disclosed elsewhere in this report. The information was prepared based on share registry processed
up to 20 September 2021.
Distribution of shareholders
The distribution of shareholdings as at 20 September 2021 was:
Holdings Range Report
Artemis Resources Limited
Security Class:
As at Date:
ARV - ORDINARY FULLY PAID
SHARES
20-Sep-2021
Holding Ranges
above 0 up to and including 1,000
above 1,000 up to and including 5,000
above 5,000 up to and including 10,000
above 10,000 up to and including
100,000
above 100,000
Totals
Holders
212
717
695
1,967
751
4,342
Total Units
56,909
2,290,386
5,621,348
% Issued Share
Capital
0.00%
0.18%
0.45%
76,904,428
1,170,124,580
1,254,997,651
6.13%
93.24%
100.00%
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
No of shares
% of Issued Capital
Jupiter Investment Management Limited
91,744,955
7.31%
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Artemis Resources Annual Report 2021
Additional Information – Australian Securities
Exchange
Additional Information – Australian Securities
Exchange
Top twenty (20) largest holders ordinary share
Security class: ARV - ORDINARY FULLY PAID SHARES
As at date:
Display top:
20-Sep-2021
20
Position
1
2
3
4
5
Holder Name
CITICORP NOMINEES PTY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BENNELONG RESOURCE CAPITAL PTY LTD
BATTLE MOUNTAIN PTY LIMITED
Holding
279,278,829
108,693,536
56,316,758
52,042,397
41,049,421
% IC
22.25%
8.66%
4.49%
4.15%
3.27%
6
7
8
9
10
11
12
13
14
15
16
17
18
18
19
20
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
BNP PARIBAS NOMINEES PTY LTD ACF
CLEARSTREAM
CYGNUS 1 NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR RICHARD ARTHUR LOCKWOOD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
- A/C 2
SORRENTO RESOURCES PTY LTD
METAL TIGER PLC
MR RONALD WERNER NEUGEBAUER &
MISS TESS CAITLIN NEUGEBAUER
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY
LIMITED
DEUTSCHE BALATON AKTIENGESELLSCHAFT
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
D & K CORPS INVESTMENTS PTY LTD
INKESE PTY LTD
MR KARL LUDWIG ANTHONY HAMANN &
MRS LISA JANE HAMANN
MR NEIL THACKER MACLACHLAN
Total
32,443,789
2.59%
32,195,807
2.57%
26,689,805
2.13%
22,000,000
20,821,828
16,100,000
14,134,630
13,511,794
1.75%
1.66%
1.28%
1.13%
1.08%
12,709,535
1.01%
12,500,000
12,029,768
11,264,632
10,000,000
10,000,000
7,788,888
1.00%
0.96%
0.90%
0.80%
0.80%
0.62%
7,000,000
0.56%
798,571,417
63.63%
Total issued capital - selected security class(es)
1,254,997,651
100.00%
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Artemis Resources Annual Report 2021
Additional Information – Australian Securities
Additional Information – Australian Securities
Exchange
Exchange
Unquoted securities
ASX security code and description
Total number of +securities on issue
8,571,429
13,729,195
10,000,000
43,500,000
43,500,000
1,000,000
7,500,000
7,500,000
5,000,000
5,000,000
.
Unlisted options exercisable at 21
cents on or before 30 November
2021
Convertible noteholder options
exercisable to 8 cents a share and
expiry 31 July 2022
Advisor options exercisable at 8
cents a share and expiry date 31
July 2022
Class A Unlisted Director Options
exercisable at 5 cents a share and
expiry date 31 July 2022
Class B Unlisted Director Options
exercisable at 7 cents a share and
expiry date 31 July 2023
Unlisted options exercisable at 4
cents per share before 1 May 2023.
Class A Unlisted Advisor Options
exercisable at 5 cents a share and
expiry date 31 July 2022
Class B Unlisted Advisor Options
exercisable at 7 cents a share and
expiry date 31 July 2023
Class E Director Options exercisable
at 18 cents a share and expiry date
1 December 2023
Class F Director Options exercisable
at 25 cents a share and expiry date
1 December 2025
The Company had 935 unmarketable parcels as at 20 September 2021.
Artemis Resources Limited Annual Financial Report – June 2021
95| P a g e
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Artemis Resources Annual Report 2021
Registered Office
Level 8, 99 St Georges Terrace
Perth WA 6000
T +61 8 9486 4036
E info@artemisresources.com.au
artemisresources.com.au
ASX:ARV
97