ASPIRE MINING LIMITED
ANNUAL
REPORT
2021
m
o
c
d
e
.
t
i
m
i
l
i
i
g
n
n
m
e
r
i
p
s
a
Corporate
Information
ASPIRE MINING LIMITED
ABN 46 122 417 243
DIRECTORS
SHARE REGISTRY
Automic Group
Level 2, 267 St Georges Terrace
PERTH WA 6000 AUSTRALIA
Mr Achit-Erdene Darambazar (Managing Director)
Telephone: 1300 288 664
Mr David Paull (Non-Executive Chairman)
Mr Boldbaatar Bat-Amgalan (Non-Executive Director)
SOLICITORS
Mr Neil Lithgow (Non-Executive Director)
Corrs Chambers Wesgarth Lawyers
Ms Hannah Badenach (Non-Executive Director)
Level 6, Brookfield Place Tower 2
COMPANY SECRETARY
Mr Philip Rundell
REGISTERED OFFICE
Mezzanine Level
190 St Georges Terrace,
PERTH WA 6000 AUSTRALIA
Telephone: +61 8 9287 4555
123 St Georges Terrace
PERTH WA 6000 AUSTRALIA
BANKERS
National Australia Bank
Ground Floor, 100 St Georges Tce
PERTH WA 6000
AUDITORS
Email: info@aspiremininglimited.com
HLB MANN JUDD (WA Partnership)
PRINCIPAL PLACE OF BUSINESS
AUSTRALIA
Mezzanine Level
190 St Georges Terrace,
PERTH WA 6000
MONGOLIA
Chingeltei District, 1st Khoroo
Baga Toiruu-17
JJ Tower, 9th Floor
ULAANBAATAR 15170
Level 4, 130 Stirling Street
PERTH WA 6000 AUSTRALIA
KPMG
#602, Blue Sky Tower, Peace Avenue 17,
1 Khoroo Sukhbaatar District
ULAANBAATAR 14240 MONGOLIA
SECURITIES EXCHANGE LISTING
AKM
WEBSITE
www.aspiremininglimited.com
Contents
Operational Overview
Chairman’s Letter
Operational Review
Community Relations
Financial & Shareholder Reporting
Corporate information
Directors’ Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss
and other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes In Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Additional Shareholder Information
II
IV
XX
01
02
14
15
16
17
18
19
47
48
52
Page II
Chairman’s Letter
Dear Shareholders,
This year has been the most frustrating
one in the 9 years since we discovered
the Ovoot project and secured the
mining license over the Project’s
resources. The Company is well funded
and supported to rapidly progress the
development of the world class Ovoot
Coking Coal Project but has run into
COVID-19 related obstacles in the
permitting processes through 2020/21
which has hamstrung on the ground
pre-development activities.
Mongolia was ahead of much of the world in 2020 in
its ability to manage the initial COVID-19 strains but
as most of the world has discovered and even with
Mongolia’s relatively high levels of vaccination, the
Delta strain is a different animal to manage all together.
The Mongolian Government is working hard on keeping
the most vulnerable safe and progressing with further
immunisations. With high vaccination rates, hospital
presentations are lower with the Government now
looking to boost the economy and exports.
What is most frustrating for the long term stakeholders
in the Company is that at the time of writing, we are
now in the strongest bull market for coking coal since
2010 – 12 when the Ovoot Coking Coal Project was
discovered with prices well in excess of the US$150/t
price used in the 2019 Pre-Feasibility Study for the
Ovoot Early Development Project.
“The Company is
committed to limit
emissions from its
activities and will
be using world’s best
practice processing
technologies powered
by renewable energy
sources.”
Aspire Mining LimitedAnnual Report 2021 Page III
Mobile Cardiac Clinic
While waiting for permitting progress for the
mine and connecting infrastructure, the team
have been engaging with engineering specialists
in road engineering and design, truck and trailer
manufacturers, coal wash plants and materials
handling specialists. We have examined alternative
mine operating fleets and looked at various mine
site power options. All essential for completing our
Definitive Feasibility work required for a project
investment decision in 2022.
The Company is committed to limit emissions from
its activities and will be using world’s best practice
processing technologies powered by renewable
energy sources.
Progress is now being made to secure the key
approvals required for both the mine and connecting
road. The Board expects that notwithstanding the still
severe COVID-19 situation in Mongolia, there will be
steady progress in 2021/22 to complete the definitive
feasibility study for the Ovoot Project in 2022.
I wish to thank our CEO, Achit Darambazar, and his
team including COO Sam Bowles and the entire
community relations team for their outstanding work
and commitment during the year.
David Paull
— Chairman
Aspire Mining LimitedAnnual Report 2021 Page IV
Operational Overview
Listed on the Australian
Stock Exchange,
Aspire Mining Limited
(ASX : AKM, Aspire
or the Company) is a
coking coal resource
development and
infrastructure company,
which owns 100% of
the Ovoot Coking Coal
Project and 90% of the
Nuurstei Coking Coal
Project in Mongolia.
Aspire Mining LimitedAnnual Report 2021 Page V
280 Mt
of JORC 2012 Resources discovered
in the Ovoot Coking Coal Project
Strategy
The Company’s strategy is to create wealth
for shareholders through the discovery and
development of metallurgical coal deposits.
Between 2010 and 2013 the Company discovered the Ovoot
Coking Coal Project, a large coking coal deposit containing
over 280 mt of JORC 2012 Resources (197 Mt Measured, 72 Mt
Indicated and 12 Mt Inferred).
Coking Coal is used in the blast furnace process to produce steel.
Ovoot does not produce any of the lower value thermal coal used
in power generation.
The Company is focused on developing the Ovoot Project into a
long life world class coking coal mine based on beneficiating the
coal at the mine and thus transporting a higher value product to
steel making customers, which will bring significant benefits to
the local communities in which it operates.
Aspire Mining LimitedAnnual Report 2021 Page VI
Coal Projects
Ovoot Coking Coal Project (100%)
The Ovoot Coking Coal Project (Ovoot or
Ovoot Project) is a world class coking coal
discovery in Northern Mongolia. In August
2012 the Company received a mining
license granting a minimum 30 year tenure
over the deposit.
Aspire Mining LimitedAnnual Report 2021 Page VII
Mining at the Ovoot Project is based on a relatively
low strip ratio, single open pit mine delivering coal
to a wash plant on site. The coal has been shown
to be high yielding with average yields for the first
five years of the Project, of approximately 85% to a
washed coking coal product.
This combination of good washing yield, low strip ratio
and no thermal fraction makes for a highly competitive
mine cost structure relative to other Mongolian coking
coal miners.
l
i
d
e
Y
g
n
h
s
a
W
i
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
Aspire
(243 Mt)
Tavan Tolgoi
West Tsankhi
(888 Mt)
UHG Mine
(305 Mt)
Premium Coking
Hard & Semi-Hard
Coking & Semi-Soft
30%
40%
50%
60%
70%
80%
90%
100%
% Coking Coal
Figure 1: Chart of Ovoot versus Other Mongolian Washed Coking Coals.
Aspire Mining LimitedAnnual Report 2021
Page VIII
Ovoot Coking Coal
Project (100%)
— Continued
The Ovoot Project is approximately 600 kms by road
from the nearest rail head at Erdenet. From there
the coal can access the Trans-Mongolian Railway
for exports both north and south to steel making
customers located in China, Russia and beyond.
In 2019 the Company refocused the development
strategy for the mine away from a large scale 10
Mtpa operation serviced by a dedicated new 545 km
railway from the mine to the nearest existing rail head
at Erdenet, to a smaller development based on road
transport of washed coking coal to Erdenet for rail
loading labelled the Ovoot Early Development
Project (“OEDP”).
Since the announcement of the results of a Pre
Feasibility Study (“PFS”) for the OEDP in 2019 the
Company has been working on obtaining necessary
permitting and refining capital and operating cost
numbers to complete a Definitive Feasibility Study
(“DFS”) to support project financing.
Parts of the DFS have been delayed this financial
year due to an inability to receive approvals to
undertake necessary site works and some approvals
have been delayed where they required community
engagement meetings which were deferred
due to state, provincial and/or local government
implemented COVID-19 restrictions.
Nevertheless, the Company has been able to
progress some important components of the Ovoot
Project including progressing Front End Engineering
and Design (“FEED”) studies for the Coal Handling
and Preparation Plant (“CHPP”) and the Erdenet Rail
Terminal (“ERT”). For each of these activities the
Company has chosen technologies that minimise
water use and dust generation while maintaining
flexibility for future production growth.
The Company has been successfully engaging with
the local communities in which it operates and has
their strong support (see Community Relations
section for further detail). With this support the
Company believes that it will be able to acquire the
necessary permits and approvals in the near term to
be able to complete the predevelopment activities to
complete the Ovoot Definitive Feasibility Study.
Aspire Mining LimitedAnnual Report 2021 Page IX
Road Connection from Ovoot
to Erdenet
Within the updated PFS for the OEDP, trucking
costs make up over 40% of the total delivered
cost per tonne to the Mongolian/China border at
Erlian. Forecast capital costs of US$165m for road
construction represented over 60% of the total
estimated capital cost of the project based on
the PFS. Optimising road design and truck fleet
operation is therefore of paramount importance in
developing a cost competitive project.
Cognisant of the magnitude of transportation
related costs and the impact on the overall project
economics, the Mongolian team have worked to
refine these estimates. This has included engaging
closely with tractor and trailer manufacturers to
understand equipment capabilities and engaging
with a specialist automotive engineering consultant
to assess and simulate the performance of potential
vehicle configurations across the planned route.
Town of Murun
Resulting from this has been determination of suitable
vehicle configurations, the development of equipment
lifecycle costing, detailed understanding of fuel
consumption and inputs into road design including
refinement of gradients, curvatures, lane widths,
intersection design and overtaking lanes to support
safe and productive operation.
Detailed engineering and design process is ongoing
with road consultants ICT Sain LLC, in accordance with
the Terms of Reference set by the Ministry of Road and
Transport Development.
The OEDP PFS is based on third party contract
quotes for the trucking component of the project.
The Company may choose a joint venture or partnering
model so that the cost benefits of the above analysis
can be realised.
Aspire Mining LimitedAnnual Report 2021 Page X
Ovoot Coking Coal
Project (100%)
— Continued
A summary of physical and operating cost estimates from the 2019 OEDP PFS are shown in Table 1:
Physicals
Waste Mined (M Bcm)
Strip Ratio (Bcm/t coal) (incl. pre-strip)
Coal Mined (Mt)
Average Yield (10% moisture)
Coal sold (net of 2% loss) (Mt)
Life of Mine
Operating Costs (US$)
Mining $/t
Trucking $/t
Rail + Border Charges- $/t
C1 Cash Costs $/t
Total Cash Costs $/t
Average
Annual
PFS
Extended
Case1
Updated PFS
Extended
Case2
19.7
4.6
4.0
253.6
4.7
53.8
86%
45.2
253.6
4.7
53.8
85%
44.7
12.5 years
12.5 years
33
32
18
83
102
26
32
18
76
97
Table 1: Physical and operating cost estimates from the 2019 OEDP PFS.
1 Refer to ASX Announcement 1 March 2019.
2 Refer to ASX Announcement 11 November
2019. The Company confirms that at this
time it is not aware of any new information
or data that materially affects the information
included in the announcements, and that
all material assumptions underpinning the
estimates continue to apply and have not
materially changed. On completion, the
OEDP Definitive Feasibility Study will identify
any new information, data or change to
material assumptions used in the OEDP
Pre-Feasibility Study.
Aspire Mining LimitedAnnual Report 2021 Page XI
PFS
Extended
Case
Updated PFS
Extended
Case
37
10
16
63
47
110
37
10
16
63
31
94
The estimated capital expenditure from the 2019 OEDP PFS is outlined in Table 2:
Item (US$)
CHPP Plant
Onsite infrastructure
Offsite terminals and blending facility
Mine Processing and Infrastructure
Waste Pre-stripping
Total Mine Capital
Table 2: Summary Mine Capital Expenditure from the 2019 OEDP PFS.
The scoping level engineering study cost of road construction before contingencies included within the 2019 OEDP
PFS is summarized in Table 3:
Road
Bridges and culverts
Total
Table 3: Estimated Road Capital Costs from the 2019 OEDP PFS.
US$M
130
35
165
The above road costs will be updated once final alignment approval and detailed design and geotechnical data
have been received.
Mining and process engineering designs for the OEDP PFS have been developed to support capital and operating
estimates to an accuracy of ±25% and ±15% respectively. Key assumptions that the PFS is based on are outlined in
the Company’s full statement released to the ASX on 11 November 2019. Aspire has concluded it has a reasonable
basis for providing the forward-looking statements in this report.
Aspire Mining LimitedAnnual Report 2021 Page XII
Ovoot Coking Coal
Project (100%)
— Continued
The Coking Coal Market
For the purposes of this PFS, a flat price of US$150/t
Delivered at Place to the Erlian border for Ovoot “fat”
coking coal is used based on a detailed Chinese “fat”
coking coal market report completed by Fenwei Energy
Information Services Ltd (Fenwei) in December 2018.
There has been substantial dislocation in the Coking
Coal market in 2021. COVID-19 related restrictions on
Mongolian coking coal exports to China, combined
with limitations on imports to China from Australia and
a generally robust post COVID-19 economic recovery
worldwide has seen a dramatic increase in coking coal
pricing. Domestic China pricing has continued in recent
months to remain more than US$100/t above Australian
FOB pricing.
This has caused an extraordinary market for coking
coal with substantial shortages and record pricing as
the supply response lags demand.
Given an exchange rate of Rmb6.46:US$1 the prices
for fat coal net of VAT in Tianjin are approximately
US$500/t (see Figure 2).
While it would not be expected that prices at these
levels will continue for a sustained length of time, the
supply response is expected to be muted as supply
from Mongolia slowly returns to normal in 2022.
Ovoot will produce a “Fat” Coking Coal which is a
coal with unique caking, fluidity and plastic properties
(see Figure 3). These properties are highly valued by
steel mills as they enable efficient blending of various
coals and improve yields from coke ovens. Given the
spotlight on emissions in the Chinese steel industry,
coals that improve yields and efficiencies are in
high demand.
“COVID-19 related
restrictions on
Mongolian coking
coal exports to
China, combined
with limitations on
imports to China
from Australia and a
generally robust post
COVID-19 economic
recovery worldwide
has seen a dramatic
increase in coking
coal pricing.”
Aspire Mining LimitedAnnual Report 2021 Coking Coal Prices USD/t excluding VAT | 30 September 2021
Page XIII
600
550
500
450
400
350
300
250
200
150
100
01-Jul-19
01-Oct-19
01-Jan-19
01-Apr-19
01-Jul-19
01-Oct-20
01-Jan-21
01-Apr-21
01-Jul-21
Tianjin Mongolian Price
Kailuan Fat Price
Tianjin Australian Price
Tangshan Washed Fat Price
Figure 2: Tianjin Coking Coal Prices for Selected brands at fixed Rmb6.46:US$1 Exchange Rate.
Source: Sxcoal.com
Premium Coals
2nd Tier (HCC 64)
Ovoot
Borneo Tuhup
Energy Alliance Harfa
Glencore Oaky North
Teck Cheviot
Mozambique
Illawarra
Hail Creek
Anglo Moranbah North
BMA Saraji
BMA Peal Downs
Teck Coal Premium
Peabody Metro Hard
Glencore Wollombi
Anglo Pearce River
Jellinbah Lake Vermont
Anglo Capricorn
Corronado Curragh
x
e
d
n
I
-
Y
28
26
24
22
20
18
16
14
12
10
70
75
80
85
90
95
100
G-Index
Figure 3: Ovoot has World Leading Caking (G Index) and Plastic Properties (Y Index).
Source: Noble Group
Aspire Mining LimitedAnnual Report 2021 Page XIV
Ovoot Coking Coal
Project (100%)
— Continued
World Traded Hard Coking Coals
Total Dilation vs Rank
Pike River
Ovoot
Buller Special
Oaky Creek
Duralie NSW
Oaky North
Austar NSW
Western Coking, West Coast Premium
Goonyella
North Goonyella
Peak Downs
German Creek
n
o
i
t
a
l
i
D
l
a
t
o
T
350
300
250
200
150
100
50
0
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
% RO Max
Figure 4: Ovoot has high plastic properties for its Rank.
Source: Independent Technical Review of the UHG Coal Project dated 28 September 2010,
and Aspire data
Nuurstei Coking Coal Project
(90%)
No substantive work was conducted on this Project
during the year.
Aspire Mining LimitedAnnual Report 2021
Page XV
Rail Infrastructure Investment
Aspire owns an 80% interest in Northern Railways
LLC (NR), the Mongolian registered company that
holds the Rail Concession to build a 547 kilometre
long railway from Erdenet to Ovoot which is part of
the Northern Rail Corridor, a new rail connection
between China and Russia through Mongolia.
The Concession Agreement with the Mongolian
Government is to build, operate then transfer
the railway to Government after 30 years. In this
Concession NR is supported by a consortium
of experienced rail and bridge engineering and
construction groups including China Gezhouba
Group Corporation and China Railways Construction
Corp Bureau 20 Group.
In 2018 China Gezhouba Group funded and completed
a feasibility study for the rail route which was lodged
with the Mongolian rail authorities.
Alignment and competing land use issues remain to
be resolved between the parties.
In February 2020, NR received an extension of
time from the Mongolian Government’s National
Development Authority to meet the conditions
precedent within the Concession Agreement
by 18 months through to September 2021.
The Company is in a dialogue with the Mongolian
Government regarding further extensions to this period
to complete the Rail Concession conditions precedent.
Further development of the rail project is dependent
on the operator of the central rail line in Mongolia,
Ulaanbaatar Railways JSC (UBTZ) providing a
guarantee of future rail capacity for NR along the
main line for 10 million tonnes per annum.
Aspire Mining LimitedAnnual Report 2021 Page XVI
Coal Projects
— Continued
JORC Reserves & Resources
Deposit
Ovoot Open Pit(2)
Ovoot Underground (2)
Nuurstei(3)
Total
Probable
Reserves
Measured
Resource
Indicated
Resource
Measured
+ Indicated
Inferred
Resource
247
8
-
255
197.0
-
-
197.0
46.9
25.4
4.8
77.1
243.9
25.4
4.8
274.1
9.2
2.6
8.1
19.9
Table 4: JORC Reserves and Resources.
Notes:
1. Ovoot’s Resource and Reserve estimates
have been estimated by independent
third parties (Xstract Mining Consultants
Pty Ltd) and are reported in accordance
with the JORC Code (2012).
2. For full JORC Code (2012) disclosure in
relation to the Ovoot project JORC Code
(2012) compliant Coal Resource and
Reserve, refer the Company’s Quarterly
Report for the period ended 31 December
2013, which is available to view on
the Company’s website and the ASX
Announcements platform. The Company
is not aware of any new information or
data that materially affects the information
included in this December 2013 Quarterly
Report. All material assumptions and
technical
underpinning
the estimates in the December 2013
Quarterly Report continue to apply and
have not materially changed.
parameters
3. Nuurstei’s Resource
and Reserve
estimates have been estimated by
independent third parties (McElroy Byran
Geological Services) and are reported in
accordance to the JORC Code (2012).
4. The JORC Code
(2012) compliant
Coal Resource and Reserve estimates
for the Nuurstei Coking Coal Project
are reported
in the Company’s ASX
Announcement dated 13 April 2016 which
is available to view on the Company’s
website and the ASX Announcements
platform. The Company is not aware
of any new information or data that
materially affects the information included
in the 13 April 2016 announcement. All
material assumptions and
technical
parameters underpinning the estimates in
the announcement continue to apply and
have not materially changed.
5. The Company ensures that the Resource
and Reserve estimates are subject to
appropriate governance and
internal
controls by engagement of independent
consultancy organisations whose staff
are competent and professional; and by
its periodical review.
6. There has been no change in the period
to Resources or Reserves.
Aspire Mining LimitedAnnual Report 2021 Page XVII
The Coal Reserves at Ovoot Project
documented in this release are stated in
accordance with the guidelines set out in
the JORC Code, 2012. They are based on
information compiled and reviewed by Mr.
Kevin Irving who is a Fellow of the Australasian
Institute of Mining and Metallurgy (Member
#223116) and is a full time employee of Xstract
Mining Consultants Pty Ltd. He has more than
35 years’ experience in the mining of coal
deposits and the estimation of Coal Reserves
and the assessment of Modifying Factors. Mr.
Irving has sufficient experience that is relevant
to the style of mineralisation and type of
deposit under consideration to qualify him as
a Competent Person as defined in the JORC
Code, 2012. Neither Mr. Irving nor Xstract
have any material interest or entitlement,
direct or indirect, in the securities of Aspire
Mining Limited or any companies associated
with Aspire Mining Limited. Fees for work
undertaken are on a time and materials basis.
Mr. Irving consents to the inclusion of the Coal
Reserve estimate based on his information in
the form and context in which it appears.
Competent Persons Statement –
Nuurstei Coking Coal Project
The information in this report that relates
to Reporting of Coal Resources at Nuurstei
Project, is based on information compiled
under the supervision of, and reviewed by, the
Competent Person, Mr Parbury, who is a full
time employee of McElroy Bryan Geological
Services, is a Member of the Australasian
Institute of Mining and Metallurgy (Member
#101430) and who has no conflict of interest
with Aspire Mining Limited.
The reporting of Coal Resources for MV-
020941 presented in this report has been
carried out in accordance with the ‘Australasian
Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’, The
JORC Code 2012 Edition prepared by the Joint
Ore Reserves Committee of the Australasian
Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council
of Australia (JORC).
Mr Parbury has sufficient experience that
is relevant to the style of mineralisation and
type of deposit under consideration and to
the activity being undertaken to qualify as
a Competent Person as defined in the 2012
JORC Code. Mr Parbury consents to the
inclusion in the report of the matters based
on his information in the form and context in
which it appears.
Competent Persons Statement –
Ovoot Coking Coal Project
the
requirements,
In accordance with the Australian Securities
Exchange
technical
information contained in this announcement
in relation to the JORC Code (2012) Compliant
Coal Reserve and Reserve estimate for the
Ovoot Coking Coal Project
in Mongolia
has been reviewed by Mr Ian De Klerk
and Mr Kevin John Irving of Xstract Mining
Consultants Pty Ltd.
The Coal Resource at the Ovoot Project
documented in this release are stated in
accordance to the JORC Code, 2012. They
information compiled and
are based on
reviewed by Mr. Ian de Klerk who is a Member
of the Australasian Institute of Mining and
Metallurgy (Member #301019) and is a full time
employee of Xstract Mining Consultants Pty
Ltd. He has more than 20 years’ experience
in the evaluation of coal deposits and the
estimation of coal resources. Mr. de Klerk
has sufficient experience that is relevant
to the style of mineralisation and type of
deposit under consideration to qualify him as
a Competent Person as defined in the JORC
Code, 2012. Neither Mr. de Klerk nor Xstract
have any material interest or entitlement,
direct or indirect, in the securities of Aspire
Mining Limited or any companies associated
with Aspire Mining Limited. Fees for work
undertaken are on a time and materials
basis. Mr. de Klerk consents to the inclusion
of the estimated Coal Resource based on his
information in the form and context in which
it appears.
Aspire Mining LimitedAnnual Report 2021 Page XVIII
Coal Projects
— Continued
Ovoot Early Development
Project (OEDP)
FMS LLC converted the existing Ovoot Resource
Model to Surpac and assumed 5% dilution in the re-
blocking exercise for Whittle re-optimisations. FMS then
conducted an optimisation based on trucking product to
the rail at Erdenet (as opposed to the assumptions and
economics of a rail connection from Ovoot to Erdenet)
and restricting maximum production to 4 Mtpa being the
current available rail capacity from Erdenet to markets.
The pit selections produce a steady 4 Mtpa of saleable
coal. The JORC Code (2012) Reserve estimated as a
result of this exercise is detailed in Table 5.
Coal Reserve
(adb) ROM Mt
Coal Reserve
Total Moisture
2.0% arb
ROM Mt
ROM Coal
(adb) Ash
Content %
ROM Coal
(adb) CSN
36.8
53.8
37.6
54.9
17.2
18.0
7.9
8.5
Category
Probable Ore Reserve Ore Open
Pit OEDP
Probable Ore Reserve Open Pit
OEDP Plus OEDP Extension
Table 5: OEDP JORC (2012) Reserve.
Category
Probable Product Reserve Ore Open Pit OEDP
Probable Product Reserve Open Pit OEDP
Plus OEDP Extension
Table 6: OEDP Marketable Reserve.
Marketable
Coal Reserve
Total Moisture
10% arb Mt
Product
Specification
adb Ash
Content %
Product
Specifications
adb CSN
32.2
46.2
10.5
10.5
8.5
8.5
Aspire Mining LimitedAnnual Report 2021
Page XIX
Notes:
for
1. The technical information and competent
persons statements
the OEDP
Reserves are reported in the Company’s
ASX announcements dated 28 February
and 1 March 2019 which are available to
view on the Company’s website & the
ASX Announcements Platform.
2. The Company confirms that at this time
it is not aware of any new information or
data that materially affects the information
included in the announcements, and that
all material assumptions underpinning
the estimates continue to apply and have
not materially changed. On completion,
the OEDP Definitive Feasibility Study
will identify any new information, data or
change to material assumptions used in
the OEDP Pre-Feasibility Study.
Competent Persons Statement –
Ovoot Early Development Project
The OEDP Reserve estimated as stated in this
release in accordance with the JORC Code,
2012. The estimate is based on information
compiled and reviewed by Mr Julien Lawrence
who is a Member of the Australasian Institute
of Mining and Metallurgy (Member #209746)
and is a full-time employee of FMS LLC.
He has more than 20 years’ experience
in the evaluation of coal deposits and the
estimation of coal resources. Mr Lawrence
has sufficient experience that is relevant
to the style of mineralisation and type of
deposit under consideration to qualify him as
a Competent Person as defined in the JORC
Code 2012. Mr Lawrence has no material
interest or entitlement, direct or indirect, in
the securities of Aspire Mining Ltd or any
companies associated with Aspire Mining Ltd.
Fees for work undertaken are on a time and
materials basis. Mr Lawrence consents to the
inclusions of the OEDP Reserves based on his
information in the form and context in which
it appears.
Aspire Mining LimitedAnnual Report 2021 Page XX
Community Relations
Environmental Social
Governance
The Company made further
moves during the year to
develop a framework and
level of accountability for its
operations and activities.
During the year the
Company issued its
inaugural Environment Social
Governance (“ESG”) Report.
This report can be found
on our web site at
aspiremininglimited.com
Respecting the Environment
Aspire is committed to developing its metallurgical coal
assets in accordance with the United Nations “Equator
Principles”. These are 10 over riding principles that cover
environmental management, stakeholder engagement,
transparency and accountability.
The environmental base line studies, operational
management plans and rehabilitation strategy are intended
to meet both Mongolian Environmental laws and where
applicable adopting the higher standards required to meet
Equator Principles.
While designing the Ovoot Coking Coal Project the
Company has made it clear that it is targeting the
implementation of worlds best practice through all facets
of the Project.
The Company has chosen a coal washing plant design that
does not need a flotation process removing the need for
chemical reagents and a belt filter that saves water and
removes the need for a tailings dam.
The Company has also selected coal handling infrastructure
that reduces the amount of mobile loading equipment
involved reducing dust and diesel consumption.
The Ovoot Coking Coal Project is expected to rely more
on renewable power sources than any other mining project
in Mongolia, based on a combination of a hybrid system
using solar and battery technologies, combined with a grid
connection where a proportion of the power will be supplied
by a 10MW solar farm.
In terms of truck transport the selection of trucks and
trailers focuses on minimizing diesel consumption. Further
the regular trucking routes make it suitable for trialing new
transport technologies using fuel cell electric vehicles. The
company is in preliminary discussions with a FCEV provider
to commence a trial when operations commence.
The Company has engaged a consultant to conduct an audit
of greenhouse gas emissions as a base line from which
reduction targets will be formulated.
Aspire Mining LimitedAnnual Report 2021 Page XXI
Building our Social License to Operate
The Company has formally committed to the United
Nations Sustainability Development goals and will
report against this framework annually in the ESG
Report. The Company is particularly focused on
health, education and building the local economy
and capacity.
Further the Company supports the Ten Principles of
the United Nations Global Compact on human rights,
labour, environment and anti-corruption. We are
committed to making the UN Global Compact and
its principles part of the strategy, culture and day to
day operations of our company, advancing the UN’s
Sustainable Development Goals.
Aspire Mining LimitedAnnual Report 2021 Page XXII
Community Relations
— Continued
Community Health Programs
Sponsorship of Mobile Cardiac Clinic and surgeries
COVID-19 Relief Donation to Local
Hospital
Early in the pandemic, the Company
donated infection protection gear and
other equipment to the local Tsetserleg
soum hospital in support of COVID-19
pandemic prevention activities.
The Company has donated 500
pieces of essential protective clothing,
disinfectants and rubber gloves. In
addition, 200 rapid test kits were
donated and delivered to the Tsetserleg
soum hospital.
The Company partnered with “The heart will not forget”,
a not-for-profit for children’s heart disease diagnosis, and a
treatment surgeons team led by renowned cardiac surgeon
Dr. Boldsaikhan Bundan of Songdo Hospital within the
scope of a health program for the local community. Songdo
Hospital performs pediatric cardio surgery which is brand
new to Mongolia.
Within the scope of the health program, the company built
a large ger for the non-profit health team and conducted
an all-day check-up session, while observing the strict
COVID-19 regulations. The much-needed health program
brought together Tsagaan-Uul and Tsetserleg soums of
Khuvsgul airmag children in need of cardiac check-ups.
Three children from the Tsetserleg soum were diagnosed to
be treated by surgery and the Company covered expenses
of these three children for cardiac surgery in Ulaanbaatar.
01
02
Aspire Mining LimitedAnnual Report 2021 Page XXIII
01
Delivering medical supplies to hospital
02—06 Mobile Cardiac Clinic
04
05
03
06
Aspire Mining LimitedAnnual Report 2021 Page XXIV
Community Relations
— Continued
Education
Training
The “Northern miners” technical and vocational
training program is sponsored by the Company in
partnership with Erdenet Complex College. The
training program was developed in 2020 to support
employment opportunities for Tsetserleg soum
residents. The program trains local Tsetserleg soum
residents to become licensed truck drivers and heavy
duty mine machinery operators.
Scholarships
The Company has made its intention to offer BA level
scholarships to citizens who are in 2nd, 3rd and 4th
year of studies at a local accredited University. The
Scholarship program is designed to contribute to the
Tsetserleg soum development.
Currently two students from 3rd Bagh of the Tsetserleg
soum are offered BA studies scholarships. The two
students attend the National University of Mongolia and
the Agricultural University of Mongolia, respectively.
Supporting the Local Economy
The major project for the year was the planting of
200 ha of animal feed crops over the 2021 summer
growing season. This was harvested in September and
will be distributed amongst local community families
in the winter of 2021. This is part of a larger plan to
expand feed lots to improve the health and wellbeing
of live stock through the long winters to support the
foundation of a local dairy and meat industry.
The Company has acquired a tractor and other
equipment for the purpose of this project and has
applied for Asian Development Bank support to
substantially expand the feed lot exercise to benefit
a wider community. The development of the Ovoot
to Murun road will allow for the export of organically
produced agricultural products to the central markets
of Murun and potentially other centres in Mongolia.
Prior to mine development, the Company will enter
into a “Community Cooperation Agreement” (CCA)
which will outline the Company’s priorities in relation
to social investment in the Soum. These investments
will be guided by the UN sustainability goals with
particular emphasis on health, education and
capacity building.
Aspire Mining LimitedAnnual Report 2021 Page XXV
01
02
03
Ovoot Seeding
Planting underway in June 2021
Award Ceremony of Art Competition
02
03
In order to support Governance, the Board of Directors
has established a number of sub-committees relating
to finance, technical, remuneration and audit and
risk. These have been populated based on existing
governance best practice and recommended by ASX
guidelines to ensure separation of duties, accountability
and Board oversight independent of management.
01
Governance
In June 2019 the Company signed on to a Voluntary
Code of Practice on Responsible Mining, along with
other leading Mongolian mining companies.
The stated objective of the Code of Practice is to
promote, introduce and pursue good standards of
responsible mining in the Mongolian mining sector
and cooperate towards sustainable development of
the sector.
The Code places a high emphasis on transparency
and accountability, much of which the Company
already maintains due to its observance of ASX Listing
Rules, as well as environmental protections.
Aspire Mining LimitedAnnual Report 2021 Contents
Aspire Mining Limited
Page
CORPORATE INFORMATION ................................................................................................................... 1
DIRECTORS’ REPORT .............................................................................................................................. 2
AUDITOR’S INDEPENDENCE DECLARATION ...................................................................................... 14
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .. 15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................. 16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................. 17
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................... 18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................ 19
DIRECTORS’ DECLARATION ................................................................................................................. 47
INDEPENDENT AUDITOR’S REPORT ................................................................................................... 48
Aspire Mining Limited Aspire Mining Limited ABN 46 122 417 243 Annual Financial Report 30 June 2021
Contents
Aspire Mining Limited
Page
CORPORATE INFORMATION ................................................................................................................... 1
DIRECTORS’ REPORT .............................................................................................................................. 2
AUDITOR’S INDEPENDENCE DECLARATION ...................................................................................... 14
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME .. 15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .................................................................. 16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .................................................................. 17
CONSOLIDATED STATEMENT OF CASH FLOWS ............................................................................... 18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................ 19
DIRECTORS’ DECLARATION ................................................................................................................. 47
INDEPENDENT AUDITOR’S REPORT ................................................................................................... 48
Aspire Mining Limited Aspire Mining Limited ABN 46 122 417 243 Annual Financial Report 30 June 2021
CORPORATE INFORMATION
ABN 46 122 417 243
Directors
Mr Achit-Erdene Darambazar (Managing Director)
Mr David Paull (Non-Executive Chairman)
Mr Boldbaatar Bat-Amgalan (Non-Executive
Director)
Mr Neil Lithgow (Non-Executive Director)
Ms Hannah Badenach (Non-Executive Director)
Company secretary
Mr Philip Rundell
Registered office
Mezzanine Level
190 St Georges Terrace,
PERTH WA, 6000
AUSTRALIA
Telephone:
Email: info@aspiremininglimited.com
(08) 9287 4555
Principal place of business
AUSTRALIA
Mezzanine Level
190 St Georges Terrace,
PERTH WA 6000
MONGOLIA
Chingeltei District, 1st Khoroo
Baga Toiruu-17
JJ Tower, 9th Floor
ULAANBAATAR 15170
Share Register
Automic Group
Level 2, 267 St Georges Terrace
PERTH WA 6000
AUSTRALIA
Telephone: 1300 288 664
- 1 -
Aspire Mining Limited
- 2 -
Aspire Mining Limited
Solicitors
Corrs Chambers Westgarth Lawyers
Brookfield Place Tower 2
123 St Georges Terrace
PERTH WA 6000
Bankers
National Australia Bank
Level 1, 1238 Hay Street
WEST PERTH WA 6005
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
PERTH WA 6000
KPMG
#602, Blue Sky Tower, Peace Avenue 17,
1 Khoroo Sukhbaatar District
ULAANBAATAR 14240 MONGOLIA
Securities Exchange Listing
a Bachelors degree from Middlebury College.
AKM
Website
www.aspiremininglimited.com
DIRECTORS’ REPORT
Your Directors submit the annual financial report of the Group consisting of Aspire Mining Limited (“Aspire” or
“Company”) and the entities it controlled during the financial year ended 30 June 2021. In order to comply with
the provisions of the Corporations Act 2001, the Directors report as follows:
Directors
as follows.
The names of Directors who held office during or since the end of the year and until the date of this report are
Mr Achit-Erdene Darambazar Managing Director
Mr David Paull
Non-Executive Chairman
Mr Boldbaatar Bat-Amgalan Non-Executive Director
Mr Neil Lithgow
Non-Executive Director
Ms Hannah Badenach
Non-Executive Director
Names, qualifications, experience and special responsibilities
Mr Achit-Erdene Darambazar
Executive Director
on 5 December 2019.
Mr Achit-Erdene Darambazar was appointed Executive Director on 7 December 2018 and Managing Director
He is President and CEO of Mongolian International Capital Corporation LLC (MICC), a leading Mongolian
investment banking firm and the first investment advisory, stock underwriting and brokerage firm in Mongolia.
He acted as lead advisor for the first bond offerings on the local stock exchange by major Mongolian companies,
MCS and Gobi Corporation. He has also advised on a number of high profile transactions in Mongolia, including
the privatisation of the Trade and Development Bank of Mongolia and Agricultural Bank.
Mr. Darambazar has completed a Masters degree in International Relations from Columbia University and holds
He has held no other listed public company directorships in the last three years.
Mr David Paull
Non-Executive Chairman
Qualifications: B.Com, FSIA, MBA (Cornell)
Mr Paull has over 30 years’ experience in resource business development and industrial minerals marketing.
He was appointed Managing Director on 1 July 2010, after being involved in the recapitalisation of the Company
and redirection to targeting Mongolian coking coal assets.
Mr Paull was appointed as Executive Director of the Company on 12 February 2010. With the retirement of the
Non-Executive Chairman in March 2018, Mr Paull became the Executive Chairman. With the appointment of Mr
Achit-Erdene Darambazar on 5 December 2019, Mr Paull transitioned to Non-Executive Chairman and Non-
Executive Director on the 15 March 2020.
Mr Paull has had no other listed public company directorships in the last three years.
- 1 -
Aspire Mining Limited
- 2 -
Aspire Mining Limited
Mr Achit-Erdene Darambazar (Managing Director)
Corrs Chambers Westgarth Lawyers
Solicitors
Brookfield Place Tower 2
123 St Georges Terrace
PERTH WA 6000
Bankers
National Australia Bank
Level 1, 1238 Hay Street
WEST PERTH WA 6005
Auditors
HLB Mann Judd (WA Partnership)
Level 4, 130 Stirling Street
PERTH WA 6000
KPMG
#602, Blue Sky Tower, Peace Avenue 17,
1 Khoroo Sukhbaatar District
ULAANBAATAR 14240 MONGOLIA
Securities Exchange Listing
AKM
Website
www.aspiremininglimited.com
CORPORATE INFORMATION
ABN 46 122 417 243
Directors
Mr David Paull (Non-Executive Chairman)
Mr Boldbaatar Bat-Amgalan (Non-Executive
Director)
Mr Neil Lithgow (Non-Executive Director)
Ms Hannah Badenach (Non-Executive Director)
Company secretary
Mr Philip Rundell
Registered office
Mezzanine Level
190 St Georges Terrace,
PERTH WA, 6000
AUSTRALIA
Telephone:
(08) 9287 4555
Email: info@aspiremininglimited.com
Principal place of business
AUSTRALIA
Mezzanine Level
190 St Georges Terrace,
PERTH WA 6000
MONGOLIA
Chingeltei District, 1st Khoroo
Baga Toiruu-17
JJ Tower, 9th Floor
ULAANBAATAR 15170
Share Register
Automic Group
PERTH WA 6000
AUSTRALIA
Level 2, 267 St Georges Terrace
Telephone: 1300 288 664
DIRECTORS’ REPORT
Your Directors submit the annual financial report of the Group consisting of Aspire Mining Limited (“Aspire” or
“Company”) and the entities it controlled during the financial year ended 30 June 2021. In order to comply with
the provisions of the Corporations Act 2001, the Directors report as follows:
Directors
The names of Directors who held office during or since the end of the year and until the date of this report are
as follows.
Mr Achit-Erdene Darambazar Managing Director
Mr David Paull
Mr Boldbaatar Bat-Amgalan Non-Executive Director
Non-Executive Director
Mr Neil Lithgow
Non-Executive Director
Ms Hannah Badenach
Non-Executive Chairman
Names, qualifications, experience and special responsibilities
Mr Achit-Erdene Darambazar
Executive Director
Mr Achit-Erdene Darambazar was appointed Executive Director on 7 December 2018 and Managing Director
on 5 December 2019.
He is President and CEO of Mongolian International Capital Corporation LLC (MICC), a leading Mongolian
investment banking firm and the first investment advisory, stock underwriting and brokerage firm in Mongolia.
He acted as lead advisor for the first bond offerings on the local stock exchange by major Mongolian companies,
MCS and Gobi Corporation. He has also advised on a number of high profile transactions in Mongolia, including
the privatisation of the Trade and Development Bank of Mongolia and Agricultural Bank.
Mr. Darambazar has completed a Masters degree in International Relations from Columbia University and holds
a Bachelors degree from Middlebury College.
He has held no other listed public company directorships in the last three years.
Mr David Paull
Non-Executive Chairman
Qualifications: B.Com, FSIA, MBA (Cornell)
Mr Paull has over 30 years’ experience in resource business development and industrial minerals marketing.
He was appointed Managing Director on 1 July 2010, after being involved in the recapitalisation of the Company
and redirection to targeting Mongolian coking coal assets.
Mr Paull was appointed as Executive Director of the Company on 12 February 2010. With the retirement of the
Non-Executive Chairman in March 2018, Mr Paull became the Executive Chairman. With the appointment of Mr
Achit-Erdene Darambazar on 5 December 2019, Mr Paull transitioned to Non-Executive Chairman and Non-
Executive Director on the 15 March 2020.
Mr Paull has had no other listed public company directorships in the last three years.
DIRECTORS’ REPORT (continued)
Names, qualifications, experience and special responsibilities (continued)
DIRECTORS’ REPORT (continued)
- 3 -
- 4 -
Aspire Mining Limited
Aspire Mining Limited
Mr Boldbaatar Bat-Amgalan
Non-Executive Director
Mr Boldbaatar Bat-Amgalan has had senior roles in public relations and publishing and was previously a director
of Erdenet Mining Company. He also previously held senior roles in the Government of Mongolia, including the
State Secretary for the Ministry of Foreign Affairs, and Chairman of the Communication Regulatory Commission.
Mr Bat-Amgalan has had no other listed public company directorships in the last three years.
Mr Neil Lithgow
Non-Executive Director
Qualifications : MSc, M.AusIMM
Mr Lithgow is a geologist by profession with over 30 years’ experience in mineral exploration, economics and
mining feasibility studies, covering base metals, coal, iron ore and gold. He is also a member of the Australian
Institute of Mining and Metallurgy.
Mr Lithgow has previously worked for Aquila Resources Limited and Eagle Mining Corporation NL and is
currently a Non-Executive Director of Australian Silica Quartz Group Ltd (previously Bauxite Resources Limited,
appointed on the 15 May 2006).
Mr Lithgow has had no other listed public company directorships in the last three years.
Ms Hannah Badenach
Non-Executive Director
Qualifications: BA, LLB (Hons)
Ms Badenach is currently Vice President of Asset Management and Operations at Noble Resources Limited.
the payment of a dividend in respect of the financial year.
No dividends have been paid or declared since the start of the financial year and the Directors do not recommend
Ms Badenach is a lawyer, having practiced law for several years in Asia, including two years in Mongolia, starting
in 2004 with Lynch & Mahoney. Ms Badenach has experience in management and development within Mongolia.
Ms Badenach was Managing Director of QGX Mongol LLC from 2006, where Ms Badenach was responsible for
the general management of the company until it was sold in 2008.
Ms Badenach holds a Bachelor of Laws (Hons) and a Bachelor of Arts from the University of Tasmania.
Ms Badenach was a Director of ASX listed and Mongolian focussed explorer, Xanadu Mines Limited from the 4
October 2011 to 1 November 2019. Ms Badenach has had no other listed public company directorships in the
last three years.
Company Secretary
Mr Philip Rundell
Company Secretary
Qualifications: Dip BS (Accounting) CA
Mr Rundell has had over 25 years’ experience as a Partner and Director of Coopers & Lybrand and Ferrier
Hodgson, respectively, specialising in company reconstructions and corporate recovery. Mr Rundell has
provided management accounting and company secretarial services over the last 12 years to a number of listed
companies.
Interests in the Shares and Options of the Company and Related Bodies Corporate
As at the date of this report, the relevant interests of the current Directors in shares, options and rights of the
Company are as follows:
Directors
Number of fully paid
Number of options
Number of
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
ordinary shares
over ordinary
shares
performance
rights over
ordinary shares
-
-
2,705,280
23,727,851
1,095,392
-
-
-
-
-
-
-
-
-
-
1. Mr David Paull is a Director of Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd) which is a beneficial owner of
2,073,680 ordinary shares. Mr David Paull is also a Director and shareholder of Paulkiner Pty Ltd, which is a
beneficial owner of 631,600 ordinary shares.
There were no options or performance rights granted to Directors of the Company during or since the end of the
financial year as part of remuneration.
There are no unpaid amounts on the shares issued.
At the date of this report, there are no unissued ordinary shares of the Company under option.
Dividends
Principal Activities
Review of Operations
owns:
The principal activity of the Group during the year was progression for the approvals and studies towards the
development of the Ovoot Early Development Project (OEDP).
Aspire is focused on the exploration and eventual development of metallurgical coal assets in Mongolia. Aspire
(a) a 100% interest in the large scale, world class Ovoot Coking Coal Project; and
(b) a 90% interest in the Nuurstei Coking Coal Project.
The OEDP involves mining a low ash and high yielding coal from a starter pit that sits within the previously
defined Ovoot orebody and road transportation of the coal to the Erdenet rail connection. A phased development
plan to support production rates at Ovoot under the OEDP will be matched to forecast logistics capacities
through to end customers in China and Russia.
Progress in the year was adversely affected by the COVID-19 pandemic with restrictions introduced by the
Government of Mongolia and local authoraties that continue to delay permitting required before Ovoot
development can proceed.
DIRECTORS’ REPORT (continued)
Names, qualifications, experience and special responsibilities (continued)
DIRECTORS’ REPORT (continued)
- 3 -
- 4 -
Aspire Mining Limited
Aspire Mining Limited
Interests in the Shares and Options of the Company and Related Bodies Corporate
As at the date of this report, the relevant interests of the current Directors in shares, options and rights of the
Company are as follows:
Mr Boldbaatar Bat-Amgalan has had senior roles in public relations and publishing and was previously a director
of Erdenet Mining Company. He also previously held senior roles in the Government of Mongolia, including the
Directors
State Secretary for the Ministry of Foreign Affairs, and Chairman of the Communication Regulatory Commission.
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Number of fully paid
ordinary shares
Number of options
over ordinary
shares
Number of
performance
rights over
ordinary shares
-
2,705,280
-
23,727,851
1,095,392
-
-
-
-
-
-
-
-
-
-
1. Mr David Paull is a Director of Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd) which is a beneficial owner of
2,073,680 ordinary shares. Mr David Paull is also a Director and shareholder of Paulkiner Pty Ltd, which is a
beneficial owner of 631,600 ordinary shares.
There were no options or performance rights granted to Directors of the Company during or since the end of the
financial year as part of remuneration.
There are no unpaid amounts on the shares issued.
At the date of this report, there are no unissued ordinary shares of the Company under option.
Dividends
No dividends have been paid or declared since the start of the financial year and the Directors do not recommend
the payment of a dividend in respect of the financial year.
Principal Activities
The principal activity of the Group during the year was progression for the approvals and studies towards the
development of the Ovoot Early Development Project (OEDP).
Review of Operations
Aspire is focused on the exploration and eventual development of metallurgical coal assets in Mongolia. Aspire
owns:
(a) a 100% interest in the large scale, world class Ovoot Coking Coal Project; and
(b) a 90% interest in the Nuurstei Coking Coal Project.
The OEDP involves mining a low ash and high yielding coal from a starter pit that sits within the previously
defined Ovoot orebody and road transportation of the coal to the Erdenet rail connection. A phased development
plan to support production rates at Ovoot under the OEDP will be matched to forecast logistics capacities
through to end customers in China and Russia.
Progress in the year was adversely affected by the COVID-19 pandemic with restrictions introduced by the
Government of Mongolia and local authoraties that continue to delay permitting required before Ovoot
development can proceed.
Mr Boldbaatar Bat-Amgalan
Non-Executive Director
Mr Neil Lithgow
Non-Executive Director
Qualifications : MSc, M.AusIMM
Mr Bat-Amgalan has had no other listed public company directorships in the last three years.
Mr Lithgow is a geologist by profession with over 30 years’ experience in mineral exploration, economics and
mining feasibility studies, covering base metals, coal, iron ore and gold. He is also a member of the Australian
Institute of Mining and Metallurgy.
Mr Lithgow has previously worked for Aquila Resources Limited and Eagle Mining Corporation NL and is
currently a Non-Executive Director of Australian Silica Quartz Group Ltd (previously Bauxite Resources Limited,
appointed on the 15 May 2006).
Mr Lithgow has had no other listed public company directorships in the last three years.
Ms Hannah Badenach
Non-Executive Director
Qualifications: BA, LLB (Hons)
Ms Badenach is currently Vice President of Asset Management and Operations at Noble Resources Limited.
Ms Badenach is a lawyer, having practiced law for several years in Asia, including two years in Mongolia, starting
in 2004 with Lynch & Mahoney. Ms Badenach has experience in management and development within Mongolia.
Ms Badenach was Managing Director of QGX Mongol LLC from 2006, where Ms Badenach was responsible for
the general management of the company until it was sold in 2008.
Ms Badenach holds a Bachelor of Laws (Hons) and a Bachelor of Arts from the University of Tasmania.
Ms Badenach was a Director of ASX listed and Mongolian focussed explorer, Xanadu Mines Limited from the 4
October 2011 to 1 November 2019. Ms Badenach has had no other listed public company directorships in the
last three years.
Company Secretary
Mr Philip Rundell
Company Secretary
Qualifications: Dip BS (Accounting) CA
Mr Rundell has had over 25 years’ experience as a Partner and Director of Coopers & Lybrand and Ferrier
Hodgson, respectively, specialising in company reconstructions and corporate recovery. Mr Rundell has
provided management accounting and company secretarial services over the last 12 years to a number of listed
companies.
- 5 -
- 6 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Review of Operations (continued)
Whilst the Company was not able to conduct ground based activities while permitting processes were ongoing,
the Company continued other aspects of a Definitive Feasibility Study (DFS) for the OEDP including mine
engineering, wash plant, materials handling and road transport solutions.
Re-optimisations of the mine plan used in the OEDP Pre-Feasibility (PFS) mine plan have involved re-
sequencing production and with the use of different combinations of excavators and mine haulage trucks,
indicate significant mine cost savings as compared to the PFS.
The Company conducted additional indicative coal sizing tests using a number of flow sheets to further confirm
physical characteristics through various wash plant technologies before appointing Sedgman Pty Limited to
conduct Front End Engineering and Design for the OEDP Coal Handling and Processing Plant.
The Company also commenced Front End Engineering and Design of the Erdenet Rail Terminal with local
engineering group O2 Mining Limited, where coal is received by truck and loaded onto rail wagons.
Likely developments and expected results
The Group will continue with activities towards meeting its objective of developing the OEDP into production at
Both of these engineering activities will assist in providing accurate capital and operating cost assessments for
the DFS.
The Company also expended a considerable amount of time and effort on road design and engineering for the
560 km road between Ovoot and Erdenet. Road pathways were re-examined and various truck and trailer
combinations were modelled to optimize time, fuel cost and capital costs for trucks and road construction. Given
that trucking cost per tonne is considerably more that than the forecast mining cost per tonne of product this is
clearly an area of significant potential cost saving.
The Company also maintained a strong local community engagement programme in line with the Company’s
sustainability goals to improve health and education outcomes for the local communities in which it operates.
This was enhanced with a trial fodder programme where the company planted a feed crop which can be stored
by local herders to assist with managing livestock through the harsh winters. This is the first stage of a
multifaceted programme to support the development of a local diary and organic meat industry. These measures
are all contained in draft community engagement agreements that the Company is currently negotiating with
local community leadership.
Aspire’s Mongolian rail infrastructure subsidiary, Northern Railways LLC, holds a Concession Agreement from
the Mongolian Government to build and operate 549km of rail from the town of Erdenet to the Ovoot Coking
Coal Project in northern Mongolia. Construction of the railway is dependent on achieving a number of conditions
precedent including land access agreements and funding. If and when commissioned, the Ovoot to Erdenet rail
line is expected to support up to 10Mtpa of high quality washed coking coal from Ovoot on a low cost, long term
basis. Northern Railways LLC is in discussions for an extension to the period to complete conditions precedent
that would otherwise have expired in September 2021.
Review of financial conditions
At balance date, the Group had $34,173,866 (2020: $40,712,949) in cash assets. The Group holds the majority
of its cash in USD and the reduction in the cash assets is materially affected by the strengthening of the
AUD:USD between balance dates.
The cash assets balance will be sufficient to meet required community relations activities, approvals, permits
and evaluation activities to advance towards development of the OEDP.
auditor.
Further raisings or other means of funding will be required for the capital infrastructure requirements for full
development of the OEDP and the associated haul road.
DIRECTORS’ REPORT (continued)
Operating results for the year
$5,488,200).
Significant changes in the state of affairs
in the state of affairs of the Group.
Significant events after balance date
The Group reported an operating loss after tax of $5,176,364 for the year ended 30 June 2021 (2020: Loss
Since the previous Annual Financial Report and during the financial year there has been no significant change
There has not been any material matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
the earliest opportunity.
Risk management
The Board is responsible for ensuring that risks are identified on a timely basis and that activities are aligned
with the risks identified by the Board. The Group believes that it is crucial for all Board members to be a part of
this process and as such the Board has not established a separate risk management committee. The Board has
a number of mechanisms in place to ensure that management’s objectives and activities are aligned with the
risks identified by the Board. These include the Board approval of strategic plans which includes initiatives
designed to meet stakeholder needs and expectations and to manage business risk, and the implementation of
Board approved operating plans and budgets and Board monitoring of progress against these budgets.
Corporate governance
Details of the Company’s Corporate Governance policies are contained within the Corporate Governance Plan
adopted by the Board. The Corporate Governance Statement for the year ended 30 June 2020 can be found on
the Company’s website at www.aspiremininglimited.com. The Corporate Governance Statement for the year
ended 30 June 2021 will be available on the Company’s website and the ASX announcements platform following
lodgement with the Company’s Annual Report in October 2021.
Environmental legislation
during the year.
The Company is subject to significant environmental and monitoring requirements in respect of its natural
resources exploration activities. The Directors are not aware of any material breaches of these requirements
Indemnification and insurance of Directors and officers
The Company has agreed to indemnify all the Directors and Officers of the Group for any liabilities to another
person (other than the Group or related bodies corporate) that may arise from their position as Directors or
officers of the Company and its controlled entities, except where the liability arises out of conduct involving a
lack of good faith. During the financial year the Company paid a premium in respect of a contract insuring the
Directors and Officers of the Company and its controlled entities against any liability incurred in the course of
their duties to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium. The Company has not otherwise, during or since
the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer
or auditor of the Company or of any related body corporate against a liability incurred as such an officer or
- 5 -
- 6 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Review of Operations (continued)
Whilst the Company was not able to conduct ground based activities while permitting processes were ongoing,
the Company continued other aspects of a Definitive Feasibility Study (DFS) for the OEDP including mine
engineering, wash plant, materials handling and road transport solutions.
Re-optimisations of the mine plan used in the OEDP Pre-Feasibility (PFS) mine plan have involved re-
sequencing production and with the use of different combinations of excavators and mine haulage trucks,
indicate significant mine cost savings as compared to the PFS.
The Company conducted additional indicative coal sizing tests using a number of flow sheets to further confirm
physical characteristics through various wash plant technologies before appointing Sedgman Pty Limited to
conduct Front End Engineering and Design for the OEDP Coal Handling and Processing Plant.
The Company also commenced Front End Engineering and Design of the Erdenet Rail Terminal with local
engineering group O2 Mining Limited, where coal is received by truck and loaded onto rail wagons.
Both of these engineering activities will assist in providing accurate capital and operating cost assessments for
the DFS.
The Company also expended a considerable amount of time and effort on road design and engineering for the
560 km road between Ovoot and Erdenet. Road pathways were re-examined and various truck and trailer
combinations were modelled to optimize time, fuel cost and capital costs for trucks and road construction. Given
that trucking cost per tonne is considerably more that than the forecast mining cost per tonne of product this is
clearly an area of significant potential cost saving.
The Company also maintained a strong local community engagement programme in line with the Company’s
sustainability goals to improve health and education outcomes for the local communities in which it operates.
This was enhanced with a trial fodder programme where the company planted a feed crop which can be stored
by local herders to assist with managing livestock through the harsh winters. This is the first stage of a
multifaceted programme to support the development of a local diary and organic meat industry. These measures
are all contained in draft community engagement agreements that the Company is currently negotiating with
local community leadership.
Aspire’s Mongolian rail infrastructure subsidiary, Northern Railways LLC, holds a Concession Agreement from
the Mongolian Government to build and operate 549km of rail from the town of Erdenet to the Ovoot Coking
Coal Project in northern Mongolia. Construction of the railway is dependent on achieving a number of conditions
precedent including land access agreements and funding. If and when commissioned, the Ovoot to Erdenet rail
line is expected to support up to 10Mtpa of high quality washed coking coal from Ovoot on a low cost, long term
basis. Northern Railways LLC is in discussions for an extension to the period to complete conditions precedent
that would otherwise have expired in September 2021.
Review of financial conditions
At balance date, the Group had $34,173,866 (2020: $40,712,949) in cash assets. The Group holds the majority
of its cash in USD and the reduction in the cash assets is materially affected by the strengthening of the
AUD:USD between balance dates.
The cash assets balance will be sufficient to meet required community relations activities, approvals, permits
and evaluation activities to advance towards development of the OEDP.
Further raisings or other means of funding will be required for the capital infrastructure requirements for full
development of the OEDP and the associated haul road.
DIRECTORS’ REPORT (continued)
Operating results for the year
The Group reported an operating loss after tax of $5,176,364 for the year ended 30 June 2021 (2020: Loss
$5,488,200).
Significant changes in the state of affairs
Since the previous Annual Financial Report and during the financial year there has been no significant change
in the state of affairs of the Group.
Significant events after balance date
There has not been any material matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
Likely developments and expected results
The Group will continue with activities towards meeting its objective of developing the OEDP into production at
the earliest opportunity.
Risk management
The Board is responsible for ensuring that risks are identified on a timely basis and that activities are aligned
with the risks identified by the Board. The Group believes that it is crucial for all Board members to be a part of
this process and as such the Board has not established a separate risk management committee. The Board has
a number of mechanisms in place to ensure that management’s objectives and activities are aligned with the
risks identified by the Board. These include the Board approval of strategic plans which includes initiatives
designed to meet stakeholder needs and expectations and to manage business risk, and the implementation of
Board approved operating plans and budgets and Board monitoring of progress against these budgets.
Corporate governance
Details of the Company’s Corporate Governance policies are contained within the Corporate Governance Plan
adopted by the Board. The Corporate Governance Statement for the year ended 30 June 2020 can be found on
the Company’s website at www.aspiremininglimited.com. The Corporate Governance Statement for the year
ended 30 June 2021 will be available on the Company’s website and the ASX announcements platform following
lodgement with the Company’s Annual Report in October 2021.
Environmental legislation
The Company is subject to significant environmental and monitoring requirements in respect of its natural
resources exploration activities. The Directors are not aware of any material breaches of these requirements
during the year.
Indemnification and insurance of Directors and officers
The Company has agreed to indemnify all the Directors and Officers of the Group for any liabilities to another
person (other than the Group or related bodies corporate) that may arise from their position as Directors or
officers of the Company and its controlled entities, except where the liability arises out of conduct involving a
lack of good faith. During the financial year the Company paid a premium in respect of a contract insuring the
Directors and Officers of the Company and its controlled entities against any liability incurred in the course of
their duties to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure
of the nature of the liability and the amount of the premium. The Company has not otherwise, during or since
the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an officer
or auditor of the Company or of any related body corporate against a liability incurred as such an officer or
auditor.
- 7 -
- 8 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
This report outlines the remuneration arrangements in place for the Key Management Personnel of the Company
and its controlled entities for the financial year ended 30 June 2021, as follows:
Mr Achit-Erdene Darambazar Executive Director
Mr David Paull
Mr Boldbaatar Bat-Amgalan Non-Executive Director
Non-Executive Director
Mr Neil Lithgow
Non-Executive Director
Ms Hannah Badenach
Mr Samuel Bowles Chief Operating Officer
Non-Executive Chairman
Remuneration philosophy
The performance of the Group depends upon the quality of the Directors and executives. The philosophy of
the Group in determining remuneration levels is to:
1. set competitive remuneration packages to attract and retain high calibre executive;
2.
link executive rewards to shareholder value creation; and
3. establish appropriate performance hurdles for variable executive remuneration.
In considering the Group’s performance and returns on shareholder wealth, the Board has regard to the following
indicators of performance in respect of the current financial year and the previous four financial years:
2021
$
2020
$
2019
$
2018
$
Revenue
175,854
425,330
325,741
216,309
2017
$
4,133
Net loss after tax
(5,176,364)
(5,488,200)
(6,200,307)
(6,980,272)
(4,883,119)
Basic loss per share
(0.0102)
(0.0126)
(0.020)1
(0.035)1
(0.052)1
vesting.
Share price at year-end
0.07
0.08
0.161
0.221
0.181
1 Post a securities consolidation completed on 5 December 2019. 2019 and prior years restated assuming 1:10 consolidation applied.
Remuneration committee
The Remuneration Committee of the Board of Directors is responsible for determining and reviewing
compensation arrangements for the Director and the senior management team. A Remuneration Committee
was reformed in September 2018 and its current members are Messrs David Paull and Neil Lithgow and Ms
Hannah Badenach.
The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of
Directors and senior executives on a periodic basis by reference to relevant employment market conditions with
an overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and
executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of Non-Executive Directors and executive
remuneration is separate and distinct.
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. The ASX Listing
Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time
by a general meeting. The latest determination was at the General Meeting held on 19 August 2011 when
shareholders approved an aggregate remuneration for Non-Executive Directors of up to $600,000 per year.
If and when applicable, the Board may consider advice from external consultants as well as the fees paid to
Non-Executive Directors of comparable companies when undertaking the annual remuneration review process.
No external consultants were engaged during the 2021 financial year.
Each Director is entitled to receive a fee for being a Director of the Company. The remuneration to a Non-
Executive Director has been set at $60,000 per annum. This level of remuneration was reviewed and agreed by
the Board following recommendations from the Remuneration Committee.
The remuneration of Non-Executive Directors for the year ended 30 June 2021 is detailed in the Remuneration
of Key Management Personnel section of this report in Table 1.
Senior manager and executive Director Remuneration
Remuneration consists of fixed remuneration and performance rights (as determined from time to time).
Fixed Remuneration
where necessary.
Fixed remuneration is reviewed periodically by the Remuneration Committee or the Board. The process consists
of a review of relevant comparative remuneration in the market and internally and where appropriate, external
advice on policies and practices. The Committee and the Board has access to external, independent advice
Fixed remuneration is paid in the form of cash payments. The fixed remuneration component of the Group and
the Company executive is detailed in Table 1.
On 30 June 2021 all 2,003,332 performance rights on issue to Key Management Personnel expired without
Employment Contracts
The Company had a Consultancy Agreement with Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a
company associated with Mr David Paull (Agreement), from 1 July 2010 until terminated when Mr Paull
transitioned to Non-Executive Chairman in March 2020. The Kingsland Corporate Pty Ltd Services Agreement
contained standard termination provisions under which the Group made a payment to Kingsland Corporate Pty
Ltd in lieu of termination of the Consultancy Agreement with Kingsland Corporate Pty Ltd.
Kingsland Corporate Pty Ltd is now remunerated at A$70,000 per annum for providing the services of Mr David
Paull as Non-Executive Chairman. Any additional services are recoverable at a commercial hourly rate.
Mr Achit-Erdene Darambazar is engaged as the Managing Director pursuant to an Executive Services
Agreement (AD ESA) with the Company that sets out his duties, responsibilities and obligations. The AD ESA
has a 2 year term from 2 December 2019, unless extended for a further two years by notice by the Company or
one year by notice by the executive; or terminated by either party on 3 months-notice or other causes (breach
of duty, incapacity and insolvency). The initial annual remuneration is US$180,000 per annum with an annual
review by the Company for any annual increase or performance-based bonus. Mr Achit-Erdene Darambazar is
entitled to US$120,000 in the event that the Company secures loan facilities to fund production commencement
by December 2021 and performance rights to be negotiated and issued within the term of employment (subject
to shareholder approval).
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
- 7 -
- 8 -
Aspire Mining Limited
Aspire Mining Limited
This report outlines the remuneration arrangements in place for the Key Management Personnel of the Company
and its controlled entities for the financial year ended 30 June 2021, as follows:
Mr Achit-Erdene Darambazar Executive Director
Mr David Paull
Non-Executive Chairman
Mr Boldbaatar Bat-Amgalan Non-Executive Director
Mr Neil Lithgow
Non-Executive Director
Ms Hannah Badenach
Non-Executive Director
Mr Samuel Bowles Chief Operating Officer
Remuneration philosophy
The performance of the Group depends upon the quality of the Directors and executives. The philosophy of
the Group in determining remuneration levels is to:
1. set competitive remuneration packages to attract and retain high calibre executive;
2.
link executive rewards to shareholder value creation; and
3. establish appropriate performance hurdles for variable executive remuneration.
In considering the Group’s performance and returns on shareholder wealth, the Board has regard to the following
indicators of performance in respect of the current financial year and the previous four financial years:
2021
$
2020
$
2019
$
2018
$
2017
$
4,133
Revenue
175,854
425,330
325,741
216,309
Net loss after tax
(5,176,364)
(5,488,200)
(6,200,307)
(6,980,272)
(4,883,119)
Basic loss per share
(0.0102)
(0.0126)
(0.020)1
(0.035)1
(0.052)1
Share price at year-end
0.07
0.08
0.161
0.221
0.181
1 Post a securities consolidation completed on 5 December 2019. 2019 and prior years restated assuming 1:10 consolidation applied.
Remuneration committee
Hannah Badenach.
The Remuneration Committee of the Board of Directors is responsible for determining and reviewing
compensation arrangements for the Director and the senior management team. A Remuneration Committee
was reformed in September 2018 and its current members are Messrs David Paull and Neil Lithgow and Ms
The Remuneration Committee assesses the appropriateness of the nature and amount of remuneration of
Directors and senior executives on a periodic basis by reference to relevant employment market conditions with
an overall objective of ensuring maximum stakeholder benefit from the retention of a high quality Board and
executive team.
Remuneration structure
In accordance with best practice Corporate Governance, the structure of Non-Executive Directors and executive
remuneration is separate and distinct.
Non-Executive Director Remuneration
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and
retain Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders. The ASX Listing
Rules specify that the aggregate remuneration of Non-Executive Directors shall be determined from time to time
by a general meeting. The latest determination was at the General Meeting held on 19 August 2011 when
shareholders approved an aggregate remuneration for Non-Executive Directors of up to $600,000 per year.
If and when applicable, the Board may consider advice from external consultants as well as the fees paid to
Non-Executive Directors of comparable companies when undertaking the annual remuneration review process.
No external consultants were engaged during the 2021 financial year.
Each Director is entitled to receive a fee for being a Director of the Company. The remuneration to a Non-
Executive Director has been set at $60,000 per annum. This level of remuneration was reviewed and agreed by
the Board following recommendations from the Remuneration Committee.
The remuneration of Non-Executive Directors for the year ended 30 June 2021 is detailed in the Remuneration
of Key Management Personnel section of this report in Table 1.
Senior manager and executive Director Remuneration
Remuneration consists of fixed remuneration and performance rights (as determined from time to time).
Fixed Remuneration
Fixed remuneration is reviewed periodically by the Remuneration Committee or the Board. The process consists
of a review of relevant comparative remuneration in the market and internally and where appropriate, external
advice on policies and practices. The Committee and the Board has access to external, independent advice
where necessary.
Fixed remuneration is paid in the form of cash payments. The fixed remuneration component of the Group and
the Company executive is detailed in Table 1.
On 30 June 2021 all 2,003,332 performance rights on issue to Key Management Personnel expired without
vesting.
Employment Contracts
The Company had a Consultancy Agreement with Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a
company associated with Mr David Paull (Agreement), from 1 July 2010 until terminated when Mr Paull
transitioned to Non-Executive Chairman in March 2020. The Kingsland Corporate Pty Ltd Services Agreement
contained standard termination provisions under which the Group made a payment to Kingsland Corporate Pty
Ltd in lieu of termination of the Consultancy Agreement with Kingsland Corporate Pty Ltd.
Kingsland Corporate Pty Ltd is now remunerated at A$70,000 per annum for providing the services of Mr David
Paull as Non-Executive Chairman. Any additional services are recoverable at a commercial hourly rate.
Mr Achit-Erdene Darambazar is engaged as the Managing Director pursuant to an Executive Services
Agreement (AD ESA) with the Company that sets out his duties, responsibilities and obligations. The AD ESA
has a 2 year term from 2 December 2019, unless extended for a further two years by notice by the Company or
one year by notice by the executive; or terminated by either party on 3 months-notice or other causes (breach
of duty, incapacity and insolvency). The initial annual remuneration is US$180,000 per annum with an annual
review by the Company for any annual increase or performance-based bonus. Mr Achit-Erdene Darambazar is
entitled to US$120,000 in the event that the Company secures loan facilities to fund production commencement
by December 2021 and performance rights to be negotiated and issued within the term of employment (subject
to shareholder approval).
- 9 -
- 10 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
Mr Neil Lithgow, Ms Hannah Badenach and Mr Boldbaatar Bat-Amgalan have non-executive director
engagement letters that set out their duties and responsibilities and the causes for termination (breach of duty,
incapacity and insolvency) or resignation of their appointments. The current remuneration to non-executive
directors is A$60,000 per annum. Messrs Lithgow and Bat-Amalgan receive that remuneration. Ms Hannah
Badenach does not receive any remuneration as it is against the policy of her employer and substantial
shareholder of the Company, Noble Resources International Pte Ltd.
Mr Samuel Bowles is engaged as the Chief Operating Officer pursuant to an Executive Services Agreement (SB
ESA) with the Company and an employer Company subsidiary that sets out his duties, responsibilities and
obligations. The SB ESA has a 2 year term commencing on 16 March 2020, unless extended for a further two
years by notice by the Company or one year by notice by the executive; or terminated by either party on 3
months-notice or other causes (breach of duty, incapacity and insolvency. The initial annual remuneration of Mr
Bowles is US$300,000 per annum with an annual review by the Company for any annual increase or
performance-based bonus. Mr Bowles is entitled to performance rights to be negotiated and issued within the
term of employment (subject to Board approval).
The totals of remuneration paid to key management personnel of the company during the year are as follows
and detailed in Table 1:
Short-term employee benefits
Post-employment benefits
Share-based payments
$
830,469
5,205
67,033
902,707
Share based payments is the gross accounting value of performance rights brought to account in accordance
with accounting standards.
Year ended 30 June 2020
The shares, performance rights and options held by key management personnel in the year ended 30 June
2021 are detailed in Tables 2 to 4.
Options
No options were on issue during the year that were part of Key Management Personnel remuneration.
Performance rights
On 30 June 2021 all Performance Rights that were on issue during the year lapsed without vesting.
The objective of the performance rights is to provide the Company with a remuneration mechanism to motivate
and reward the performance of directors, employees and qualifying contractors in achieving specified
performance milestones within a specified performance period. As aforementioned, Performance Rights will be
offered to Key Management Personnel as part of the terms and conditions of their engagement.
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Remuneration of Key Management Personnel
Table 1: Key management personnel remuneration
Year ended 30 June 2021
Post-
employment
benefits Other
fees
Superannuation
rights3
Total
related
Performance
Performance
Mr Achit-Erdene Darambazar
244,125
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
30,672
100,672
$
-
-
$
244,125
60,101
84,259
12,102
-
401,448
5,205
24,259
12,102
5,205
67,033
902,707
Post-
employment
benefits Other
fees
Superannuation
rights
Total
Related
Performance
Performance
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore2
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
5,205
73,405
58,056
28,961
$
-
-
-
-
-
$
169,581
453,197
117,197
118,056
28,961
25,000
213,802
114,388
Total
1,074,555
5,205
160,422
1,240,182
1 Paid or issued to Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David Paull.
2 Paid to Horizon Advisors Pty Ltd, a company associated with Mr Alexander Passmore.
3 All Performance Rights lapsed on 30 June 2021 without vesting.
Short term
employee
benefits
Salary &
$
70,000
60,101
54,795
-
401,448
830,469
Short term
employee
benefits
Salary &
$
169,581
379,792
117,197
54,795
-
25,000
213,802
114,388
$
-
-
-
-
-
$
-
-
-
-
-
-
-
%
-
30
-
29
100
-
7
%
-
16
-
49
-
-
-
13
100
DIRECTORS’ REPORT (continued)
Remuneration Report (audited)
Mr Neil Lithgow, Ms Hannah Badenach and Mr Boldbaatar Bat-Amgalan have non-executive director
engagement letters that set out their duties and responsibilities and the causes for termination (breach of duty,
incapacity and insolvency) or resignation of their appointments. The current remuneration to non-executive
directors is A$60,000 per annum. Messrs Lithgow and Bat-Amalgan receive that remuneration. Ms Hannah
Badenach does not receive any remuneration as it is against the policy of her employer and substantial
shareholder of the Company, Noble Resources International Pte Ltd.
Mr Samuel Bowles is engaged as the Chief Operating Officer pursuant to an Executive Services Agreement (SB
ESA) with the Company and an employer Company subsidiary that sets out his duties, responsibilities and
obligations. The SB ESA has a 2 year term commencing on 16 March 2020, unless extended for a further two
years by notice by the Company or one year by notice by the executive; or terminated by either party on 3
months-notice or other causes (breach of duty, incapacity and insolvency. The initial annual remuneration of Mr
Bowles is US$300,000 per annum with an annual review by the Company for any annual increase or
performance-based bonus. Mr Bowles is entitled to performance rights to be negotiated and issued within the
term of employment (subject to Board approval).
The totals of remuneration paid to key management personnel of the company during the year are as follows
and detailed in Table 1:
Short-term employee benefits
Post-employment benefits
Share-based payments
with accounting standards.
Options
Performance rights
The shares, performance rights and options held by key management personnel in the year ended 30 June
2021 are detailed in Tables 2 to 4.
No options were on issue during the year that were part of Key Management Personnel remuneration.
On 30 June 2021 all Performance Rights that were on issue during the year lapsed without vesting.
The objective of the performance rights is to provide the Company with a remuneration mechanism to motivate
and reward the performance of directors, employees and qualifying contractors in achieving specified
performance milestones within a specified performance period. As aforementioned, Performance Rights will be
offered to Key Management Personnel as part of the terms and conditions of their engagement.
- 9 -
- 10 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Remuneration of Key Management Personnel
Table 1: Key management personnel remuneration
Year ended 30 June 2021
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
$
830,469
5,205
67,033
902,707
Share based payments is the gross accounting value of performance rights brought to account in accordance
Year ended 30 June 2020
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore2
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
Total
Short term
employee
benefits
Salary &
fees
$
244,125
70,000
60,101
54,795
-
401,448
830,469
Short term
employee
benefits
Salary &
fees
$
169,581
379,792
117,197
54,795
-
25,000
213,802
114,388
Post-
employment
benefits Other
Superannuation
$
-
-
-
5,205
-
-
Performance
rights3
$
-
30,672
-
24,259
12,102
-
Total
$
244,125
100,672
60,101
84,259
12,102
401,448
5,205
67,033
902,707
Performance
related
%
-
30
-
29
100
-
7
Post-
employment
benefits Other
Superannuation
$
-
-
-
5,205
-
-
-
-
Performance
rights
$
-
73,405
-
58,056
28,961
-
-
-
Total
$
169,581
453,197
117,197
118,056
28,961
25,000
213,802
114,388
Performance
Related
%
-
16
-
49
100
-
-
-
1,074,555
5,205
160,422
1,240,182
13
1 Paid or issued to Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David Paull.
2 Paid to Horizon Advisors Pty Ltd, a company associated with Mr Alexander Passmore.
3 All Performance Rights lapsed on 30 June 2021 without vesting.
- 11 -
- 12 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Key Management Personnel Equity Holdings
Key Management Personnel Equity Holdings
Table 2: Fully Paid Ordinary Shares
Table 3 - Performance rights exercisable at no consideration on achievement of tenure or other
performance milestones
2021
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
Balance at
beginning of
year/on
appointment
-
2,705,280
-
23,727,851
1,389,048
-
27,822,179
Sold
Balance at end of year
-
-
-
-
(293,656)
-
(293,656)
-
2,705,280
-
23,727,851
1,095,392
-
27,528,523
Balance at
beginning of
year/on
appointment
Share
consolidation
1 for 10
Purchased
Balance on
retirement
Balance at
end of year
-
26,052,791
-
237,278,501
13,890,476
-
47,392,203
-
324,613,971
-
(23,447,511)
-
(213,550,650)
(12,501,428)
-
(42,652,983)
-
(292,152,572)
-
100,000
-
-
-
-
-
-
100,000
-
-
-
-
-
-
(4,739,220)
-
(4,739,220)
-
2,705,280
-
23,727,851
1,389,048
-
-
-
27,822,179
2020
Mr Achit-Erdene
Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
Total
1 In 2020 David Paull was a Director of Red Island Resources Limited, a public unlisted company which is the beneficial
owner of 8,350,000 ordinary shares pre-securities consolidation. However, from 2 August 2019 he no longer had a
notifiable interest.
Granted Exercised
Expired
Balance at
end of
year
Balance at
beginning of
year
916,666
725,000
361,666
-
-
-
2,003,332
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(916,666)
(725,000)
(361,666)
-
-
-
(2,003,332)
2021
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
2020
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore
Mr Samuel Bowles
Total
Balance at
Share
beginning of
consolidation
Forfeited
Balance at
on
end of
year
1 for 10
Granted Exercised
Expired
retirement
year
45,833,333
(41,249,999)
36,250,000
18,083,333
(32,625,000)
(16,274,999)
-
-
-
-
-
-
-
-
-
(3,666,668)
(2,900,000)
(1,446,668)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
916,666
725,000
361,666
-
-
-
-
-
Mr Gan-Ochir Zunduisuren
30,500,000
(27,450,000)
(3,050,000)
130,666,666
(117,599,998)
(8,013,336)
(3,050,000) 2,003,332
Table 4 – Options exercisable at 18 cents on or before 11 December 2019
No options were on issue during the year that were part of Key Management Personnel remuneration.
Balance at
beginning of
Share
year/on
Consolidation
Issued as
Balance on
Balance at
appointment
1 for 10
remuneration Exercised Expired
retirement
end of year
Mr David Paull
1,145,833
(1,031,249)
6,354,167
(5,718,750)
2,083,334
(1,875,000)
12,000,000
(10,800,000)
2020
Mr Achit-Erdene Darambazar
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alex Passmore
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
-
-
-
-
-
-
-
-
-
(114,584)
(635,417)
(208,334)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- (1,200,000)
Total
21,583,334
(19,424,999)
(958,335) (1,200,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 11 -
- 12 -
Aspire Mining Limited
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Key Management Personnel Equity Holdings
Key Management Personnel Equity Holdings
Table 2: Fully Paid Ordinary Shares
Table 3 - Performance rights exercisable at no consideration on achievement of tenure or other
performance milestones
2021
Mr Achit-Erdene Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
Balance at
beginning of
year/on
appointment
2,705,280
23,727,851
1,389,048
-
-
-
Sold
Balance at end of year
-
-
-
-
-
(293,656)
2,705,280
23,727,851
1,095,392
-
-
-
2021
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Samuel Bowles
Total
27,822,179
(293,656)
27,528,523
Balance at
beginning of
year
-
916,666
-
725,000
361,666
-
2,003,332
Granted Exercised
Expired
Balance at
end of
year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(916,666)
-
(725,000)
(361,666)
-
(2,003,332)
-
-
-
-
-
-
-
2020
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore
Balance at
beginning of
year
Share
consolidation
1 for 10
-
45,833,333
-
36,250,000
18,083,333
-
(41,249,999)
(32,625,000)
(16,274,999)
-
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
Total
30,500,000
-
130,666,666
(27,450,000)
-
(117,599,998)
Granted Exercised
Expired
Forfeited
on
retirement
Balance at
end of
year
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(3,666,668)
-
(2,900,000)
(1,446,668)
-
-
(8,013,336)
-
-
-
-
-
-
-
916,666
-
725,000
361,666
-
(3,050,000)
-
-
-
(3,050,000) 2,003,332
Mr Gan-Ochir Zunduisuren
47,392,203
(42,652,983)
(4,739,220)
Table 4 – Options exercisable at 18 cents on or before 11 December 2019
No options were on issue during the year that were part of Key Management Personnel remuneration.
Balance at
beginning of
Share
year/on
consolidation
Purchased
appointment
1 for 10
Balance on
retirement
Balance at
end of year
26,052,791
(23,447,511)
100,000
237,278,501
13,890,476
(213,550,650)
(12,501,428)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,705,280
23,727,851
1,389,048
-
-
-
-
-
324,613,971
(292,152,572)
100,000
(4,739,220)
27,822,179
2020
Mr Achit-Erdene
Darambazar
Mr David Paull1
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alexander Passmore
Mr Samuel Bowles
Total
1 In 2020 David Paull was a Director of Red Island Resources Limited, a public unlisted company which is the beneficial
owner of 8,350,000 ordinary shares pre-securities consolidation. However, from 2 August 2019 he no longer had a
notifiable interest.
Issued as
remuneration Exercised Expired
Balance on
retirement
Balance at
end of year
Balance at
beginning of
year/on
appointment
Share
Consolidation
1 for 10
-
1,145,833
-
(1,031,249)
-
6,354,167
2,083,334
12,000,000
-
-
21,583,334
-
(5,718,750)
(1,875,000)
(10,800,000)
-
-
(19,424,999)
2020
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Boldbaatar Bat-Amgalan
Mr Neil Lithgow
Ms Hannah Badenach
Mr Alex Passmore
Mr Gan-Ochir Zunduisuren
Mr Samuel Bowles
Total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(114,584)
-
(635,417)
(208,334)
-
-
- (1,200,000)
-
-
-
-
(958,335) (1,200,000)
-
-
-
-
-
-
-
-
-
- 13 -
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Related Party Transactions
In 2021, Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David Paull, was
paid $15,150 at market rates for the services provided by David Paull beyond his NED Chair role (2020: Nil).
In 2020, MICC LLC, a Company related to Executive Director, Mr Achit-Erdene Darambazar, was paid financial
advisory fees of A$55,000 and an equity financing fee of A$418,923 (US$284,750).
As at 30 June 2021, there were unpaid Directors’ fees payable of US$10,000 (2020: Nil).
End of Remuneration Report
Directors’ Meetings
The number of meetings of Directors held during the year and those attended by each Director were as follows:
Table 5 – Attendance at Director Meetings
Director
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Neil Lithgow
Mr Boldbaatar Bat-Amgalan
Ms Hannah Badenach
Director Meetings
Attended
Eligible to Attend
7
7
7
7
7
7
7
7
7
7
Proceedings on behalf of the Company
No person has applied to the court under Section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose
of taking responsibility on behalf of the Company for all or part of those proceedings. No proceedings have been
brought or intervened in on behalf of the Company with leave of the court under Section 237.
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires the Company’s auditors, HLB Mann Judd, to provide the
Directors of the Company with an Independence Declaration in relation to the audit of the financial report. This
Independence Declaration is set out on page 14 and forms part of this Directors’ report for the year ended 30
June 2021.
Non-Audit Services
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
are outlined in Note 23 to the financial statements. The Directors are satisfied that the provision of non-audit
services is compatible with the general standard of independence for auditors imposed by the Corporations Act
2001.
The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-
audit services have been reviewed to ensure that they do not impact the impartiality and objectivity of the auditor
and none of the services undermine the general principles relating to auditor independence as set out in Code
of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional &
Ethical Standards Board.
Signed in accordance with a resolution of the Directors.
Achit-Erdene Darambazar
Managing Director
28 September 2021
- 14 - AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the consolidated financial report of Aspire Mining 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 28 September 2021 B G McVeigh Partner
- 13 -
Aspire Mining Limited
DIRECTORS’ REPORT (continued)
Remuneration Report (audited) (continued)
Related Party Transactions
In 2021, Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David Paull, was
paid $15,150 at market rates for the services provided by David Paull beyond his NED Chair role (2020: Nil).
In 2020, MICC LLC, a Company related to Executive Director, Mr Achit-Erdene Darambazar, was paid financial
advisory fees of A$55,000 and an equity financing fee of A$418,923 (US$284,750).
As at 30 June 2021, there were unpaid Directors’ fees payable of US$10,000 (2020: Nil).
The number of meetings of Directors held during the year and those attended by each Director were as follows:
End of Remuneration Report
Directors’ Meetings
Table 5 – Attendance at Director Meetings
Director
Mr Achit-Erdene Darambazar
Mr David Paull
Mr Neil Lithgow
Mr Boldbaatar Bat-Amgalan
Ms Hannah Badenach
Director Meetings
Attended
Eligible to Attend
7
7
7
7
7
7
7
7
7
7
Proceedings on behalf of the Company
No person has applied to the court under Section 237 of the Corporations Act 2001 for leave to bring proceedings
on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose
of taking responsibility on behalf of the Company for all or part of those proceedings. No proceedings have been
brought or intervened in on behalf of the Company with leave of the court under Section 237.
Auditor Independence and Non-Audit Services
Section 307C of the Corporations Act 2001 requires the Company’s auditors, HLB Mann Judd, to provide the
Directors of the Company with an Independence Declaration in relation to the audit of the financial report. This
Independence Declaration is set out on page 14 and forms part of this Directors’ report for the year ended 30
June 2021.
Non-Audit Services
2001.
Details of amounts paid or payable to the auditor for non-audit services provided during the year by the auditor
are outlined in Note 23 to the financial statements. The Directors are satisfied that the provision of non-audit
services is compatible with the general standard of independence for auditors imposed by the Corporations Act
The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-
audit services have been reviewed to ensure that they do not impact the impartiality and objectivity of the auditor
and none of the services undermine the general principles relating to auditor independence as set out in Code
of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional &
Ethical Standards Board.
Signed in accordance with a resolution of the Directors.
Achit-Erdene Darambazar
Managing Director
28 September 2021
- 14 - AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the audit of the consolidated financial report of Aspire Mining 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 28 September 2021 B G McVeigh Partner
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
- 15 -
- 16 -
Aspire Mining Limited
Aspire Mining Limited
Deferred exploration and evaluation expenditure
35,043,789
36,470,102
Total Assets
70,249,735
78,460,833
Other income
Employee benefits expense
Exploration and evaluation expenditure impaired
Foreign exchange (loss)/gain
Interest expense
Share based payments
Other expenses
Loss before income tax expense
Income tax expense
Net loss for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Other comprehensive loss for the year net of tax
Total comprehensive loss
Loss attributable to:
Owners of the parent
Non-controlling interests
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interests
Note
2(a)
10
2021
$
175,854
(677,716)
(884)
(2,922,426)
(9,285)
(79,993)
2(b)
(1,650,495)
3
(5,164,945)
(11,419)
(5,176,364)
2020
$
425,330
(1,035,322)
(1,233,218)
(84,124)
(13,759)
(169,480)
(3,366,119)
(5,476,692)
(11,508)
(5,488,200)
(3,154,310)
(878,620)
(3,154,310)
(8,330,674)
(878,620)
(6,366,820)
15
(5,167,777)
(8,587)
(5,176,364)
(8,478,871)
15
148,197
(8,330,674)
(5,440,715)
(47,485)
(5,488,200)
(6,299,960)
(66,860)
(6,366,820)
Basic loss per share (cents per share)
4
(1.02)
(1.26)
The accompanying notes form part of these financial statements.
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Property plant and equipment
Intangible assets
Total Non-Current Assets
Current Liabilities
Trade and other payables
Financial liabilities
Total Current Liabilities
Non-Current Liabilities
Financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Non-controlling interests
Total Equity
Note
8
9
10
12
13
11
14
14
2021
$
2020
$
34,173,866
40,712,949
533,507
802,360
34,707,373
41,515,309
421,668
76,905
304,309
171,113
35,542,362
36,945,524
218,702
10,522
229,224
42,967
42,967
162,116
11,588
173,704
58,904
58,904
272,191
232,608
69,977,544
78,228,225
6
7
7
150,026,408
150,026,408
(10,529,903)
(7,017,569)
(69,154,239)
(64,267,695)
15
(364,722)
(512,919)
69,977,544
78,228,225
Equity attributable to owners of the parent
70,342,266
78,741,144
The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
- 15 -
- 16 -
Aspire Mining Limited
Aspire Mining Limited
Other income
Employee benefits expense
Exploration and evaluation expenditure impaired
Foreign exchange (loss)/gain
Interest expense
Share based payments
Other expenses
Loss before income tax expense
Income tax expense
Net loss for the year
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Other comprehensive loss for the year net of tax
Total comprehensive loss
Loss attributable to:
Owners of the parent
Non-controlling interests
Total comprehensive loss attributable to:
Owners of the parent
Non-controlling interests
Note
2(a)
10
3
2021
$
175,854
(677,716)
(884)
(2,922,426)
(9,285)
(79,993)
(5,164,945)
(11,419)
(5,176,364)
2(b)
(1,650,495)
2020
$
425,330
(1,035,322)
(1,233,218)
(84,124)
(13,759)
(169,480)
(3,366,119)
(5,476,692)
(11,508)
(5,488,200)
(3,154,310)
(878,620)
(3,154,310)
(8,330,674)
(878,620)
(6,366,820)
15
(5,167,777)
(8,587)
(5,176,364)
(8,478,871)
15
148,197
(8,330,674)
(5,440,715)
(47,485)
(5,488,200)
(6,299,960)
(66,860)
(6,366,820)
Basic loss per share (cents per share)
4
(1.02)
(1.26)
The accompanying notes form part of these financial statements.
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-Current Assets
Deferred exploration and evaluation expenditure
Property plant and equipment
Intangible assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Financial liabilities
Total Current Liabilities
Non-Current Liabilities
Financial liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Accumulated losses
Note
8
9
10
12
13
11
14
14
2021
$
2020
$
34,173,866
40,712,949
533,507
802,360
34,707,373
41,515,309
35,043,789
36,470,102
421,668
76,905
304,309
171,113
35,542,362
36,945,524
70,249,735
78,460,833
218,702
10,522
229,224
42,967
42,967
162,116
11,588
173,704
58,904
58,904
272,191
232,608
69,977,544
78,228,225
6
7
7
150,026,408
150,026,408
(10,529,903)
(7,017,569)
(69,154,239)
(64,267,695)
Equity attributable to owners of the parent
70,342,266
78,741,144
Non-controlling interests
Total Equity
15
(364,722)
(512,919)
69,977,544
78,228,225
The accompanying notes form part of these financial statements.
d
e
t
i
i
i
i
m
L
g
n
n
M
e
r
i
p
s
A
-
7
1
-
I
Y
T
U
Q
E
N
I
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
D
E
T
A
D
L
O
S
N
O
C
I
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
y
t
i
u
q
e
l
a
t
o
T
-
n
o
N
l
t
e
b
a
u
b
i
r
t
t
A
n
o
i
t
u
b
i
r
t
n
o
C
d
e
s
a
b
e
r
a
h
S
y
c
n
e
r
r
u
c
i
n
g
e
r
o
F
l
d
e
t
a
u
m
u
c
c
A
$
$
$
$
$
$
$
$
g
n
i
l
l
o
r
t
n
o
c
s
t
s
e
r
e
t
n
i
f
o
s
r
e
n
w
o
o
t
t
n
e
r
a
p
e
h
t
e
v
r
e
s
e
r
e
v
r
e
s
e
r
s
t
n
e
m
y
a
p
e
v
r
e
s
e
r
l
n
o
i
t
a
s
n
a
r
t
s
e
s
s
o
l
d
e
u
s
s
I
l
a
t
i
p
a
c
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
Aspire Mining Limited
Cash flows from operating activities
Interest received
Payments to suppliers and employees
Income tax paid
Interest and borrowing costs paid
Note
2021
$
2020
$
193,923
426,889
(1,836,918)
(4,077,285)
(11,419)
(9,284)
(11,508)
(13,759)
Net cash used in operating activities
8
(1,663,698)
(3,675,663)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
Purchase of non-current assets
Receipts from sale of non-current assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of securities
Payments for capital raising costs
Repayment of borrowings
Net cash (used in)/provided by financing activities
(874,180)
(315,351)
(1,409,894)
(217,313)
19,089
(1,189,531)
(1,608,118)
-
-
-
14
(17,003)
(17,003)
36,284,541
(1,155,849)
(14,987)
35,113,705
Net (decrease)/increase in cash and cash equivalents
(2,870,232)
29,829,924
Cash and cash equivalents at the beginning of the year
40,712,949
11,136,142
Effect of foreign exchange rate fluctuations on cash held
(3,668,851)
(253,117)
Cash and cash equivalents at the end of the year
8
34,173,866
40,712,949
The accompanying notes from part of these financial statements.
2
7
8
,
6
9
2
,
9
4
)
9
5
0
,
6
4
4
(
1
3
9
,
2
4
7
,
9
4
,
2
0
3
5
0
8
,
1
,
2
5
8
7
6
1
,
1
)
6
6
8
,
4
6
1
,
8
(
)
2
7
0
,
3
6
9
,
9
5
(
5
1
7
,
7
9
8
,
4
1
1
)
0
2
6
,
8
7
8
(
)
5
7
3
,
9
1
(
)
5
4
2
,
9
5
8
(
)
0
0
2
8
8
4
,
,
5
(
)
5
8
4
,
7
4
(
)
5
1
7
0
4
4
,
,
5
(
)
0
2
8
6
6
3
,
,
6
(
)
0
6
8
,
6
6
(
)
0
6
9
9
9
2
,
,
6
(
-
-
0
8
4
,
9
6
1
3
9
6
,
8
2
1
,
5
3
-
-
-
-
-
-
0
8
4
,
9
6
1
3
9
6
,
8
2
1
,
5
3
-
-
-
-
-
-
-
-
-
-
-
0
8
4
,
9
6
1
)
7
7
8
,
0
6
7
(
)
5
1
2
,
5
7
3
(
-
-
-
-
-
)
5
4
2
,
9
5
8
(
)
5
4
2
,
9
5
8
(
-
)
5
1
7
,
0
4
4
,
5
(
)
5
1
7
,
0
4
4
,
5
(
-
-
7
7
8
,
0
6
7
5
1
2
,
5
7
3
-
-
-
-
-
-
3
9
6
,
8
2
1
,
5
3
5
2
2
,
8
2
2
,
8
7
)
9
1
9
,
2
1
5
(
4
4
1
,
1
4
7
,
8
7
,
2
0
3
5
0
8
,
1
0
4
2
,
1
0
2
)
1
1
1
,
4
2
0
,
9
(
)
5
9
6
,
7
6
2
,
4
6
(
8
0
4
,
6
2
0
,
0
5
1
-
3
9
9
,
9
7
-
-
-
3
9
9
,
9
7
)
4
6
3
6
7
1
,
,
5
(
)
7
8
5
,
8
(
)
7
7
7
7
6
1
,
,
5
(
)
0
1
3
4
5
1
,
,
3
(
4
8
7
,
6
5
1
)
4
9
0
1
1
3
,
,
3
(
)
4
7
6
0
3
3
,
,
8
(
7
9
1
,
8
4
1
)
1
7
8
8
7
4
,
,
8
(
-
-
-
-
-
3
9
9
,
9
7
)
3
3
2
,
1
8
2
(
-
-
-
-
-
-
)
4
9
0
,
1
1
3
,
3
(
)
4
9
0
,
1
1
3
,
3
(
-
)
7
7
7
,
7
6
1
,
5
(
-
3
3
2
,
1
8
2
)
7
7
7
,
7
6
1
,
5
(
-
-
-
-
-
t
n
u
o
c
c
a
o
t
t
h
g
u
o
r
b
e
u
a
v
l
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
t
n
u
o
c
c
a
o
t
t
h
g
u
o
r
b
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
d
e
r
i
p
x
e
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
0
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
d
e
r
i
p
x
e
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
r
a
e
y
e
h
t
r
o
f
s
s
o
L
d
e
r
i
p
x
e
s
n
o
i
t
p
O
9
1
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
r
a
e
y
e
h
t
r
o
f
s
s
o
L
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
s
s
o
l
i
e
v
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
s
t
s
o
c
f
o
t
e
n
s
e
u
s
s
i
e
r
a
h
S
4
4
5
,
7
7
9
,
9
6
)
2
2
7
,
4
6
3
(
6
6
2
,
2
4
3
,
0
7
,
2
0
3
5
0
8
,
1
-
)
5
0
2
,
5
3
3
,
2
1
(
)
9
3
2
,
4
5
1
,
9
6
(
8
0
4
,
6
2
0
,
0
5
1
1
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
s
t
n
e
m
e
t
a
t
s
l
i
a
c
n
a
n
i
f
e
s
e
h
t
f
o
t
r
a
p
m
r
o
f
s
e
t
o
n
i
g
n
y
n
a
p
m
o
c
c
a
e
h
T
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
Aspire Mining Limited
Cash flows from operating activities
Interest received
Payments to suppliers and employees
Income tax paid
Interest and borrowing costs paid
Note
2021
$
2020
$
193,923
426,889
(1,836,918)
(4,077,285)
(11,419)
(9,284)
(11,508)
(13,759)
Net cash used in operating activities
8
(1,663,698)
(3,675,663)
Cash flows from investing activities
Payments for exploration and evaluation expenditure
Purchase of non-current assets
Receipts from sale of non-current assets
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of securities
Payments for capital raising costs
Repayment of borrowings
Net cash (used in)/provided by financing activities
(874,180)
(315,351)
-
(1,409,894)
(217,313)
19,089
(1,189,531)
(1,608,118)
14
-
-
(17,003)
(17,003)
36,284,541
(1,155,849)
(14,987)
35,113,705
Net (decrease)/increase in cash and cash equivalents
(2,870,232)
29,829,924
Cash and cash equivalents at the beginning of the year
40,712,949
11,136,142
Effect of foreign exchange rate fluctuations on cash held
(3,668,851)
(253,117)
Cash and cash equivalents at the end of the year
8
34,173,866
40,712,949
The accompanying notes from part of these financial statements.
d
e
t
i
m
i
L
g
n
i
n
i
M
e
r
i
p
s
A
-
7
1
-
-
-
-
-
-
-
)
0
2
6
,
8
7
8
(
)
5
7
3
,
9
1
(
)
5
4
2
,
9
5
8
(
)
0
0
2
,
8
8
4
,
5
(
)
5
8
4
,
7
4
(
)
5
1
7
,
0
4
4
,
5
(
)
0
2
8
,
6
6
3
,
6
(
)
0
6
8
,
6
6
(
)
0
6
9
,
9
9
2
,
6
(
0
8
4
,
9
6
1
3
9
6
,
8
2
1
,
5
3
0
8
4
,
9
6
1
3
9
6
,
8
2
1
,
5
3
-
-
-
)
4
6
3
,
6
7
1
,
5
(
)
7
8
5
,
8
(
)
7
7
7
,
7
6
1
,
5
(
)
0
1
3
,
4
5
1
,
3
(
4
8
7
,
6
5
1
)
4
9
0
,
1
1
3
,
3
(
)
4
7
6
,
0
3
3
,
8
(
7
9
1
,
8
4
1
)
1
7
8
,
8
7
4
,
8
(
3
9
9
,
9
7
3
9
9
,
9
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0
8
4
,
9
6
1
)
7
7
8
,
0
6
7
(
)
5
1
2
,
5
7
3
(
3
9
9
,
9
7
)
3
3
2
,
1
8
2
(
$
-
-
-
-
-
-
-
-
)
5
4
2
,
9
5
8
(
)
5
4
2
,
9
5
8
(
)
4
9
0
,
1
1
3
,
3
(
)
4
9
0
,
1
1
3
,
3
(
$
-
-
-
-
-
)
5
1
7
,
0
4
4
,
5
(
)
5
1
7
,
0
4
4
,
5
(
7
7
8
,
0
6
7
5
1
2
,
5
7
3
)
7
7
7
,
7
6
1
,
5
(
3
3
2
,
1
8
2
)
7
7
7
,
7
6
1
,
5
(
$
-
-
-
-
-
-
-
-
-
-
-
y
t
i
u
q
e
l
a
t
o
T
-
n
o
N
g
n
i
l
l
o
r
t
n
o
c
s
t
s
e
r
e
t
n
i
e
l
b
a
t
u
b
i
r
t
t
A
f
o
s
r
e
n
w
o
o
t
t
n
e
r
a
p
e
h
t
$
$
$
$
$
e
v
r
e
s
e
r
e
v
r
e
s
e
r
s
t
n
e
m
y
a
p
e
v
r
e
s
e
r
n
o
i
t
a
l
s
n
a
r
t
s
e
s
s
o
l
n
o
i
t
u
b
i
r
t
n
o
C
d
e
s
a
b
e
r
a
h
S
y
c
n
e
r
r
u
c
n
g
i
e
r
o
F
d
e
t
a
l
u
m
u
c
c
A
d
e
u
s
s
I
l
a
t
i
p
a
c
2
7
8
,
6
9
2
,
9
4
)
9
5
0
,
6
4
4
(
1
3
9
,
2
4
7
,
9
4
2
0
3
,
5
0
8
,
1
2
5
8
,
7
6
1
,
1
)
6
6
8
,
4
6
1
,
8
(
)
2
7
0
,
3
6
9
,
9
5
(
5
1
7
,
7
9
8
,
4
1
1
5
2
2
,
8
2
2
,
8
7
)
9
1
9
,
2
1
5
(
4
4
1
,
1
4
7
,
8
7
2
0
3
,
5
0
8
,
1
0
4
2
,
1
0
2
)
1
1
1
,
4
2
0
,
9
(
)
5
9
6
,
7
6
2
,
4
6
(
8
0
4
,
6
2
0
,
0
5
1
Y
T
I
U
Q
E
N
I
S
E
G
N
A
H
C
F
O
T
N
E
M
E
T
A
T
S
D
E
T
A
D
I
L
O
S
N
O
C
1
2
0
2
E
N
U
J
0
3
D
E
D
N
E
R
A
E
Y
E
H
T
R
O
F
3
9
6
,
8
2
1
,
5
3
t
n
u
o
c
c
a
o
t
t
h
g
u
o
r
b
e
u
l
a
v
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
9
1
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
r
a
e
y
e
h
t
r
o
f
s
s
o
L
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
s
t
s
o
c
f
o
t
e
n
s
e
u
s
s
i
e
r
a
h
S
d
e
r
i
p
x
e
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
0
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
r
e
h
t
O
d
e
r
i
p
x
e
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
s
s
o
l
e
v
i
s
n
e
h
e
r
p
m
o
c
l
a
t
o
T
r
a
e
y
e
h
t
r
o
f
s
s
o
L
d
e
r
i
p
x
e
s
n
o
i
t
p
O
s
t
n
e
m
e
t
a
t
s
l
a
i
c
n
a
n
i
f
e
s
e
h
t
f
o
t
r
a
p
m
r
o
f
s
e
t
o
n
g
n
i
y
n
a
p
m
o
c
c
a
e
h
T
t
n
u
o
c
c
a
o
t
t
h
g
u
o
r
b
s
t
h
g
i
r
e
c
n
a
m
r
o
f
r
e
P
4
4
5
,
7
7
9
,
9
6
)
2
2
7
,
4
6
3
(
6
6
2
,
2
4
3
,
0
7
2
0
3
,
5
0
8
,
1
)
5
0
2
,
5
3
3
,
2
1
(
)
9
3
2
,
4
5
1
,
9
6
(
8
0
4
,
6
2
0
,
0
5
1
1
2
0
2
e
n
u
J
0
3
t
a
e
c
n
a
l
a
B
- 19 -
- 20 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
(a)
(b)
(c)
Basis of Preparation
The financial report is a general purpose financial report, which has been prepared in accordance with
the requirements of the Corporations Act 2001, Australian Accounting Standards and Interpretations
and complies with other requirements of the law.
The financial report has also been prepared on a historical cost basis. Cost is based on the fair values
of the consideration given in exchange for assets.
The financial report is presented in Australian dollars.
The Company is a listed public Company, incorporated in Australia and operating in Mongolia. The
principal activity of the Group during the year was the progression for the approvals, completion of
studies, and funding towards the development of the Ovoot Early Development Project (OEDP).
Going concern
The 30 June 2021 financial report has been prepared on the going concern basis that contemplates the
continuity of normal business activities and the realisation of assets and discharge of its liabilities as
and when they fall due, in the ordinary course of business.
Adoption of new and revised standards
Standards and Interpretations applicable 30 June 2021
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 annual
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
is necessary to Group accounting policies.
Standards and interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the
period 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 on the Company.
(d)
Statement of Compliance
The financial report was authorised for issue on 28 September 2021.
The financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures
that the financial report, comprising the financial statements and notes thereto, complies with
International Financial Reporting Standards (IFRS).
(e)
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Aspire Mining Limited
(“Company” or “Parent”) and its subsidiaries as at 30 June each year (“the Group”). Control is achieved
where the Company has the power to govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease
to be consolidated from the date on which control is transferred out of the Group. Control exists where
the Company has the power to govern the financial and operating policies of an entity so as to obtain
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(e)
Basis of Consolidation (continued)
benefits from its activities. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing when the Group controls another entity.
Business combinations have been accounted for using the acquisition method of accounting (refer Note
1(o)).
Unrealised gains or transactions between the Group and its associates are eliminated to the extent of
the Group’s interests in the associates. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of associates have
been changed where necessary to ensure consistency with the policies adopted by the Group.
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. The
fair value is the initial carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, joint controlled entity or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
(f)
Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the
estimate is revised if it affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods.
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 using a
Black and Scholes model for unlisted options and the market traded price for listed options and
performance rights that are bought to account, having regard to the terms and conditions upon which
the instruments are granted.
Exploration and evaluation costs carried forward
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(w). The
application of this policy necessarily requires management to make certain estimates and assumptions
as to future events and circumstances, in particular, the assessment of the expectation that exploration
costs incurred can be recouped through the successful development of the area (unless activities in the
area have not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves). The estimates and assumptions may change as new information becomes
available. If, after having capitalised expenditure under the policy, it is concluded that the expenditure
incurred is unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount
will be impaired or written off through the statement of profit or loss and other comprehensive income.
(g)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board of
Directors of Aspire Mining Limited.
- 19 -
- 20 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(a)
Basis of Preparation
(e)
Basis of Consolidation (continued)
The financial report is a general purpose financial report, which has been prepared in accordance with
the requirements of the Corporations Act 2001, Australian Accounting Standards and Interpretations
and complies with other requirements of the law.
The financial report has also been prepared on a historical cost basis. Cost is based on the fair values
of the consideration given in exchange for assets.
The financial report is presented in Australian dollars.
The Company is a listed public Company, incorporated in Australia and operating in Mongolia. The
principal activity of the Group during the year was the progression for the approvals, completion of
studies, and funding towards the development of the Ovoot Early Development Project (OEDP).
(b)
Going concern
The 30 June 2021 financial report has been prepared on the going concern basis that contemplates the
continuity of normal business activities and the realisation of assets and discharge of its liabilities as
and when they fall due, in the ordinary course of business.
(c)
Adoption of new and revised standards
Standards and Interpretations applicable 30 June 2021
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 annual
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
is necessary to Group accounting policies.
Standards and interpretations in issue not yet adopted
The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the
period 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 on the Company.
(d)
Statement of Compliance
The financial report was authorised for issue on 28 September 2021.
The financial report complies with Australian Accounting Standards, which include Australian
equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures
that the financial report, comprising the financial statements and notes thereto, complies with
International Financial Reporting Standards (IFRS).
(e)
Basis of Consolidation
The consolidated financial statements comprise the financial statements of Aspire Mining Limited
(“Company” or “Parent”) and its subsidiaries as at 30 June each year (“the Group”). Control is achieved
where the Company has the power to govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
The financial statements of the subsidiaries are prepared for the same reporting period as the parent
company, using consistent accounting policies.
In preparing the consolidated financial statements, all intercompany balances and transactions, income
and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease
to be consolidated from the date on which control is transferred out of the Group. Control exists where
the Company has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities. The existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing when the Group controls another entity.
Business combinations have been accounted for using the acquisition method of accounting (refer Note
1(o)).
Unrealised gains or transactions between the Group and its associates are eliminated to the extent of
the Group’s interests in the associates. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting policies of associates have
been changed where necessary to ensure consistency with the policies adopted by the Group.
When the Group ceases to have control, joint control or significant influence, any retained interest in the
entity is remeasured to its fair value with the change in carrying amount recognised in profit or loss. The
fair value is the initial carrying amount for the purposes of subsequently accounting for the retained
interest as an associate, joint controlled entity or financial asset. In addition, any amounts previously
recognised in other comprehensive income in respect of that entity are accounted for as if the Group
had directly disposed of the related assets or liabilities. This may mean that amounts previously
recognised in other comprehensive income are reclassified to profit or loss.
(f)
Critical accounting judgements and key sources of estimation uncertainty
The application of accounting policies requires the use of judgements, estimates and assumptions about
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the
estimate is revised if it affects only that period or in the period of the revision and future periods if the
revision affects both current and future periods.
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 using a
Black and Scholes model for unlisted options and the market traded price for listed options and
performance rights that are bought to account, having regard to the terms and conditions upon which
the instruments are granted.
Exploration and evaluation costs carried forward
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(w). The
application of this policy necessarily requires management to make certain estimates and assumptions
as to future events and circumstances, in particular, the assessment of the expectation that exploration
costs incurred can be recouped through the successful development of the area (unless activities in the
area have not yet reached a stage that permits reasonable assessment of the existence of economically
recoverable reserves). The estimates and assumptions may change as new information becomes
available. If, after having capitalised expenditure under the policy, it is concluded that the expenditure
incurred is unlikely to be recovered by future exploitation or sale, then the relevant capitalised amount
will be impaired or written off through the statement of profit or loss and other comprehensive income.
(g)
Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board of
Directors of Aspire Mining Limited.
- 21 -
- 22 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h)
Revenue Recognition
(k)
Derecognition of financial assets and financial liabilities
Revenue is recognised to the extent that control of the goods or service has passed and it is probable
that the economic benefits will flow to the Group and the revenue can be reliably measured. The
following specific recognition criteria must also be met before revenue is recognised:
Interest income
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield
on the financial asset.
(i)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.
(j)
Trade and other receivables
Trade receivables are measured on initial recognition at fair value. Trade receivables are generally due
for settlement within periods ranging from 15 days to 30 days. The Group measures the loss allowance
for trade and other receivables at an amount equal to lifetime expected credit loss. The expected credit
losses on trade and other receivables are estimated with reference to past default experience of the
debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to
the debtor, general economic conditions of the industry in which the debtor operates and an assessment
of both the current and the forecast direction of conditions at the reporting date.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect of recovery; for example, when the debtor has been
placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are
over two years past due, whichever occurs earlier. The amount of the impairment loss is recognised in
the statement of profit or loss and other comprehensive income within other expenses. When a trade
receivable for which an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts
previously written off are credited against other expenses in the statement of profit or loss and other
comprehensive income.
•
•
•
or
(a)
(b)
(i) Financial assets
assets) is derecognised when:
A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial
the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a ‘pass-through’ arrangement;
the Group has transferred its rights to receive cash flows from the asset and either:
has transferred substantially all the risks and rewards of the asset, or
has neither transferred nor retained substantially all the risks and rewards of the asset
but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the
asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration
received that the Group could be required to repay.
When continuing involvement takes the form of a written and/or purchased option (including a cash-
settled option or similar provision) on the transferred asset, the extent of the Group’s continuing
involvement is the amount of the transferred asset that the Group may repurchase, except that in the
case of a written put option (including a cash-settled option or similar provision) on an asset measured
at fair value, the extent of the Group’s continuing involvement is limited to the lower of the fair value of
the transferred asset and the option exercise price.
(ii) Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognised in profit or loss.
(l)
Foreign currency translation
The functional and presentation currency of Aspire Mining Limited is Australian dollars. Each entity in
the Group determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the balance date.
All exchange differences in the consolidated financial report are taken to profit or loss with the exception
of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign
entity. These are taken directly to equity until the disposal of the net investment, at which time they are
Tax charges and credits attributable to exchange differences on those borrowings are also recognised
recognised in profit or loss.
in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction.
- 21 -
- 22 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(h)
Revenue Recognition
(k)
Derecognition of financial assets and financial liabilities
Revenue is recognised to the extent that control of the goods or service has passed and it is probable
that the economic benefits will flow to the Group and the revenue can be reliably measured. The
following specific recognition criteria must also be met before revenue is recognised:
Interest revenue is recognised on a time proportionate basis that takes into account the effective yield
Interest income
on the financial asset.
(i)
Cash and cash equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.
(j)
Trade and other receivables
Trade receivables are measured on initial recognition at fair value. Trade receivables are generally due
for settlement within periods ranging from 15 days to 30 days. The Group measures the loss allowance
for trade and other receivables at an amount equal to lifetime expected credit loss. The expected credit
losses on trade and other receivables are estimated with reference to past default experience of the
debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to
the debtor, general economic conditions of the industry in which the debtor operates and an assessment
of both the current and the forecast direction of conditions at the reporting date.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect of recovery; for example, when the debtor has been
placed under liquidation or has entered into bankruptcy proceedings, or when the trade receivables are
over two years past due, whichever occurs earlier. The amount of the impairment loss is recognised in
the statement of profit or loss and other comprehensive income within other expenses. When a trade
receivable for which an impairment allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts
previously written off are credited against other expenses in the statement of profit or loss and other
comprehensive income.
(i) Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a Group of similar financial
assets) is derecognised when:
•
•
•
the rights to receive cash flows from the asset have expired;
the Group retains the right to receive cash flows from the asset, but has assumed an obligation
to pay them in full without material delay to a third party under a ‘pass-through’ arrangement;
or
the Group has transferred its rights to receive cash flows from the asset and either:
(a)
(b)
has transferred substantially all the risks and rewards of the asset, or
has neither transferred nor retained substantially all the risks and rewards of the asset
but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the
asset, the asset is recognised to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration
received that the Group could be required to repay.
When continuing involvement takes the form of a written and/or purchased option (including a cash-
settled option or similar provision) on the transferred asset, the extent of the Group’s continuing
involvement is the amount of the transferred asset that the Group may repurchase, except that in the
case of a written put option (including a cash-settled option or similar provision) on an asset measured
at fair value, the extent of the Group’s continuing involvement is limited to the lower of the fair value of
the transferred asset and the option exercise price.
(ii) Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability,
and the difference in the respective carrying amounts is recognised in profit or loss.
(l)
Foreign currency translation
The functional and presentation currency of Aspire Mining Limited is Australian dollars. Each entity in
the Group determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency.
Transactions in foreign currencies are initially recorded in the functional currency by applying the
exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in
foreign currencies are retranslated at the rate of exchange ruling at the balance date.
All exchange differences in the consolidated financial report are taken to profit or loss with the exception
of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign
entity. These are taken directly to equity until the disposal of the net investment, at which time they are
recognised in profit or loss.
Tax charges and credits attributable to exchange differences on those borrowings are also recognised
in equity.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate as at the date of the initial transaction.
- 23 -
- 24 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Foreign currency translation (continued)
(m)
Income tax (continued)
Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The functional currency of the Mongolian incorporated subsidiaries, Khurgatai Khairkhan LLC, Northern
Railways LLC, Ovoot Coal Mining LLC, Chilchig Gol LLC, Ekhgoviin Chuluu LLC, Black Rock LLC and
Uruun Elbeg LLC is Mongolian Tugriks (MNT), Ovoot Coking Coal Pte Ltd, Northern Railways Pte Ltd
Northern Railways Holdings LLC and Northern Mongolian Railways Limited is USD.
As at the balance date the assets and liabilities of the subsidiaries are translated into the presentation
currency of Aspire Mining Limited at the rate of exchange ruling at the balance date and its statement
of profit or loss and other comprehensive income is translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to the foreign currency translation
reserve in equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in profit or loss.
(m)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax credits
and unused tax losses can be utilised, except when the deferred income tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or when the deductible temporary difference is associated with
investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset
is only recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and taxable profit will be available against which the temporary difference can be
utilised.
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the balance date. Income taxes relating to items recognised
directly in equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax
liabilities are offset only if a legally enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
(n)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(o)
Business combinations
The acquisition method of accounting is used to account for all business combinations, including
business combinations involving entities or business under common control, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a
subsidiary comprises the fair value of the assets transferred, the liabilities incurred and the equity
interests issued by the Group. The consideration transferred also includes the fair value of any
contingent consideration arrangement and the fair value of any pre-existing equity interest in the
subsidiary. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are, with limited exceptions, measured initially at their fair values at the acquisition date. On an
acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of
the Group’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain
assets.
purchase.
- 23 -
- 24 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(l)
Foreign currency translation (continued)
(m)
Income tax (continued)
Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The functional currency of the Mongolian incorporated subsidiaries, Khurgatai Khairkhan LLC, Northern
Railways LLC, Ovoot Coal Mining LLC, Chilchig Gol LLC, Ekhgoviin Chuluu LLC, Black Rock LLC and
Uruun Elbeg LLC is Mongolian Tugriks (MNT), Ovoot Coking Coal Pte Ltd, Northern Railways Pte Ltd
Northern Railways Holdings LLC and Northern Mongolian Railways Limited is USD.
As at the balance date the assets and liabilities of the subsidiaries are translated into the presentation
currency of Aspire Mining Limited at the rate of exchange ruling at the balance date and its statement
of profit or loss and other comprehensive income is translated at the average exchange rate for the year.
The exchange differences arising on the translation are taken directly to the foreign currency translation
reserve in equity.
On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in profit or loss.
(m)
Income tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted by the balance date.
Deferred income tax is provided on all temporary differences at the balance date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
• when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; or
• when the taxable temporary difference is associated with investments in subsidiaries, associates or
interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax credits
and unused tax losses can be utilised, except when the deferred income tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; or when the deductible temporary difference is associated with
investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset
is only recognised to the extent that it is probable that the temporary difference will reverse in the
foreseeable future and taxable profit will be available against which the temporary difference can be
The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to
the extent that it has become probable that future taxable profit will allow the deferred tax asset to be
utilised.
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to
the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted at the balance date. Income taxes relating to items recognised
directly in equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax
liabilities are offset only if a legally enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same
taxation authority.
(n)
Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
•
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of
cash flows arising from investing and financing activities, which is recoverable from, or payable to, the
taxation authority, are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the taxation authority.
(o)
Business combinations
The acquisition method of accounting is used to account for all business combinations, including
business combinations involving entities or business under common control, regardless of whether
equity instruments or other assets are acquired. The consideration transferred for the acquisition of a
subsidiary comprises the fair value of the assets transferred, the liabilities incurred and the equity
interests issued by the Group. The consideration transferred also includes the fair value of any
contingent consideration arrangement and the fair value of any pre-existing equity interest in the
subsidiary. Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination
are, with limited exceptions, measured initially at their fair values at the acquisition date. On an
acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable
assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of
the Group’s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are
less than the fair value of the net identifiable assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised directly in profit or loss as a bargain
purchase.
- 25 -
- 26 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o) Business combinations (continued)
(r)
Property, plant and equipment
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified as either equity or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit
or loss.
(p)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group
makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of
its fair value less costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups
of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the
asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those
expense categories consistent with the function of the impaired asset unless the asset is carried at
revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each balance date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case
the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted
in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
(q)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods
and services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Company becomes obliged to make future payments in respect of the purchase of these goods
and services.
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Depreciation is calculated on a straight-line basis over the three (3) year estimated useful life of
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
the assets.
appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying
value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset.
to be close to its fair value.
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
Impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the income statement in the cost of sales
line item.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on 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.
(s)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain.
cost.
The expense relating to any provision is presented in the statement of profit or loss and other
comprehensive income net of any reimbursement. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing
- 25 -
- 26 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(o) Business combinations (continued)
(r)
Property, plant and equipment
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are
discounted to their present value as at the date of exchange. The discount rate used is the entity’s
incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified as either equity or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit
or loss.
(p)
Impairment of assets
The Group assesses at each reporting date whether there is an indication that an asset may be impaired.
If any such indication exists, or when annual impairment testing for an asset is required, the Group
makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of
its fair value less costs to sell and its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or groups
of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the
asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying
amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-
generating unit is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. Impairment losses relating to continuing operations are recognised in those
expense categories consistent with the function of the impaired asset unless the asset is carried at
revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each balance date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has
been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its
recoverable amount. That increased amount cannot exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case
the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted
in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic
basis over its remaining useful life.
(q)
Trade and other payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods
and services provided to the Group prior to the end of the financial year that are unpaid and arise when
the Company becomes obliged to make future payments in respect of the purchase of these goods
and services.
Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment
losses. Depreciation is calculated on a straight-line basis over the three (3) year estimated useful life of
the assets.
The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
(i) Impairment
The carrying values of plant and equipment are reviewed for impairment at each balance date, with
recoverable amount being estimated when events or changes in circumstances indicate that the carrying
value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is determined
for the cash-generating unit to which the asset belongs, unless the asset's value in use can be estimated
to be close to its fair value.
Impairment exists when the carrying value of an asset or cash-generating units exceeds its estimated
recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount.
For plant and equipment, impairment losses are recognised in the income statement in the cost of sales
line item.
(ii) Derecognition and disposal
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
Any gain or loss arising on 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.
(s)
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate can be made of the amount of the obligation.
When the Group expects some or all of a provision to be reimbursed, for example under an insurance
contract, the reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain.
The expense relating to any provision is presented in the statement of profit or loss and other
comprehensive income net of any reimbursement. If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing
cost.
- 27 -
- 28 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Share-based payment transactions
(v)
Earnings per share (continued)
The Group provides benefits to employees (including senior executives) of the Group in the form of
share-based payments, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions). The cost of these equity-settled transactions with employees is
measured by reference to the fair value of the equity instruments at the date at which they are granted.
In valuing equity-settled transactions, account is taken of any performance conditions, and conditions
linked to the price of the shares of Aspire Mining Limited (market conditions) if applicable.
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects (i) the extent to which the vesting period has expired, and (ii) the Group’s best estimate of
the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of
market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The statement of profit or loss and other comprehensive income
charge or credit for a period represents the movement in cumulative expense recognised as at the
beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
only conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee,
as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award,
as described in the previous paragraph.
Cash settled 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 using a
Black and Scholes model for unlisted options and the market traded price for listed options and
performance rights that are bought to account, having regard to the terms and conditions upon which
the instruments are granted. This fair value is expensed over the period until vesting with recognition of
a corresponding liability. The liability is re-measured to fair value at each balance date up to and including
the settlement date with changes in fair value recognised in profit or loss.
(u)
Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(x)
Parent entity financial information
(v)
Earnings per share
Basic earnings per share is calculated as net profit or loss attributable to members of the parent,
adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends,
divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted
earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends; the after tax effect of
dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and other non-discretionary changes in revenues or expenses during the period that would
result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary
shares and dilutive potential ordinary shares, adjusted for any bonus element.
(w)
Exploration and evaluation
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:
i)
the rights to tenure of the area of interest are current; and
ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting 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. 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.
The financial information for the parent entity, Aspire Mining Limited, disclosed in Note 24 has been
prepared on the same basis as the consolidated financial statements, other than investments in
subsidiaries are accounted for at cost.
- 27 -
- 28 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(t)
Share-based payment transactions
(v)
Earnings per share (continued)
result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary
shares and dilutive potential ordinary shares, adjusted for any bonus element.
(w)
Exploration and evaluation
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:
i)
ii) at least one of the following conditions is also met:
the rights to tenure of the area of interest are current; and
(a) the exploration and evaluation expenditures are expected to be recouped through successful
development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the reporting 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. 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.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
(x)
Parent entity financial information
The financial information for the parent entity, Aspire Mining Limited, disclosed in Note 24 has been
prepared on the same basis as the consolidated financial statements, other than investments in
subsidiaries are accounted for at cost.
The Group provides benefits to employees (including senior executives) of the Group in the form of
share-based payments, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions). The cost of these equity-settled transactions with employees is
measured by reference to the fair value of the equity instruments at the date at which they are granted.
In valuing equity-settled transactions, account is taken of any performance conditions, and conditions
linked to the price of the shares of Aspire Mining Limited (market conditions) if applicable.
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting
date reflects (i) the extent to which the vesting period has expired, and (ii) the Group’s best estimate of
the number of equity instruments that will ultimately vest. No adjustment is made for the likelihood of
market performance conditions being met as the effect of these conditions is included in the
determination of fair value at grant date. The statement of profit or loss and other comprehensive income
charge or credit for a period represents the movement in cumulative expense recognised as at the
beginning and end of that period.
only conditional upon a market condition.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the
terms had not been modified. In addition, an expense is recognised for any modification that increases
the total fair value of the share-based payment arrangement, or is otherwise beneficial to the employee,
as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award is
substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award,
as described in the previous paragraph.
Cash settled 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 using a
Black and Scholes model for unlisted options and the market traded price for listed options and
performance rights that are bought to account, having regard to the terms and conditions upon which
the instruments are granted. This fair value is expensed over the period until vesting with recognition of
a corresponding liability. The liability is re-measured to fair value at each balance date up to and including
the settlement date with changes in fair value recognised in profit or loss.
(u)
Issued capital
(v)
Earnings per share
Basic earnings per share is calculated as net profit or loss attributable to members of the parent,
adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends,
divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted
earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted for:
costs of servicing equity (other than dividends) and preference share dividends; the after tax effect of
dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses; and other non-discretionary changes in revenues or expenses during the period that would
- 29 -
- 30 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 2: REVENUES AND EXPENSES
(y)
Leases
Where the Company is the lessee, the Group recognises a right-of-use asset and a corresponding
liability at the date which the lease asset is available for use by the Group (i.e. commencement date).
Each lease payment is allocated between the liability and the finance cost.
The lease liability is initially measured at the present value of the lease payments that are not paid at
commencement date, discounted using the rate implied in the lease. If this rate is not readily
determinable, the Group uses its incremental borrowing rate.
(b) Other Expenses
Accounting and audit fees
Amortisation and depreciation expense
Lease payments included in the initial measurement if the lease liability consist of:
• Fixed lease payments less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or
rate at commencement date;
• Any amounts expected to be payable by the Group under residual value guarantees;
• The exercise price of purchase options, if the Group is reasonably certain to exercise the
options; and
• Termination penalties of the lease term reflects the exercise of an option to terminate the lease.
Extension options are included in a number of property leases across the Group. In determining the
lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option. Extension options are only included in the lease term if, at commencement
date, it is reasonably certain that the options will be exercised.
Subsequent to initial recognition, the lease liability is measured by increasing the carrying amount to
reflect interest on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made. The lease liability is remeasured (with a corresponding
adjustment to the right-of-use asset) whenever there is a change in the lease term (including
assessments relating to extension and termination options), lease payments due to changes in an index
or rate, or expected payments under guaranteed residual values.
The finance cost is charged to profit or loss over the lease period so as to produce a consistent period
rate of interest on the remaining balance of the liability for each period.
Right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before commencement date, less any lease incentives received and any initial
direct costs. These right-of-use assets are subsequently measured at cost less accumulated
depreciation and impairment losses.
Where the terms of lease require the Group to restore the underlying asset, or the Group has an
obligation to dismantle and remove a leased asset, the provision is recognised and measured in
accordance with AASB 137. To the extent that the costs relate to a right-of-use asset, the costs are
included in the related right-of-use asset.
Right-of-use assets are depreciated on a straight-line basis over the term of the lease (or the useful life
of the leased asset if this is shorter). Depreciation starts on commencement date of the lease.
Where leases have a term of less than 12 months or relate to low value assets, the Group has applied
the optional exemptions to not capitalise these leases and instead account for the lease expense on a
straight-line basis over the lease term.
(a) Revenue
Interest income
Cash flow boost
Community relations
Company secretarial
Consultants
Corporate costs
Directors’ fees
Insurance
Legal fees
Office and administration costs
Share registry and listing expenses
Media, promotion and investor relations
Short term lease rent and outgoings
Travel expenses
Other
NOTE 3: INCOME TAX
Income tax recognised in profit or loss
The prima facie income tax expense on pre-tax accounting loss
from operations reconciles to the income tax expense in the
financial statements as follows:
Accounting loss before tax
Income tax benefit calculated at 30%
Accrued expenses
Other non-deductible expenses
Deductions available over more than one year
Exploration and tenement expenses
Income tax benefit not brought to account
Income tax expense
Made up of:
Income tax expense
Income tax expense on Mongolian operations
2021
$
158,707
17,147
175,854
174,452
234,814
37,257
101,538
-
258,659
238,013
173,700
12,825
118,255
54,034
59,216
86,750
68,812
32,170
2021
$
(5,164,945)
(1,549,484)
10,620
905,445
(15,461)
249
660,050
11,419
11,419
11,419
2020
$
425,330
-
425,330
176,770
297,782
139,458
161,453
209,663
289,250
965,372
170,126
62,218
118,255
81,542
168,878
181,377
216,739
127,236
2020
$
(5,476,692)
(1,643,008)
473
392,709
(41,103)
369,966
932,471
11,508
11,508
11,508
1,650,495
3,366,119
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate
entities on taxable profits under Australian tax law. There has been no change in this tax rate since the
previous reporting period.
The Group has an unrecorded deferred tax asset of $6,529,888 (2020: $6,321,138) in respect to tax losses
arising in Australia and $255,189 (2020: $207,313) in respect to tax losses arising in Mongolia, the tax benefit
of which has not been brought to account and are available subject to confirmation of the continuity of
ownership test or the same business test.
- 29 -
- 30 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
NOTE 2: REVENUES AND EXPENSES
(a) Revenue
Interest income
Cash flow boost
(b) Other Expenses
Accounting and audit fees
Amortisation and depreciation expense
Community relations
Company secretarial
Consultants
Corporate costs
Directors’ fees
Insurance
Legal fees
Office and administration costs
Share registry and listing expenses
Media, promotion and investor relations
Short term lease rent and outgoings
Travel expenses
Other
NOTE 3: INCOME TAX
Income tax recognised in profit or loss
The prima facie income tax expense on pre-tax accounting loss
from operations reconciles to the income tax expense in the
financial statements as follows:
Accounting loss before tax
Income tax benefit calculated at 30%
Accrued expenses
Other non-deductible expenses
Deductions available over more than one year
Exploration and tenement expenses
Income tax benefit not brought to account
Income tax expense
Made up of:
Income tax expense on Mongolian operations
Income tax expense
2021
$
158,707
17,147
175,854
174,452
234,814
37,257
101,538
-
258,659
238,013
173,700
12,825
118,255
54,034
59,216
86,750
68,812
32,170
1,650,495
2021
$
(5,164,945)
(1,549,484)
10,620
905,445
(15,461)
249
660,050
11,419
11,419
11,419
2020
$
425,330
-
425,330
176,770
297,782
139,458
161,453
209,663
289,250
965,372
170,126
62,218
118,255
81,542
168,878
181,377
216,739
127,236
3,366,119
2020
$
(5,476,692)
(1,643,008)
473
392,709
(41,103)
369,966
932,471
11,508
11,508
11,508
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate
entities on taxable profits under Australian tax law. There has been no change in this tax rate since the
previous reporting period.
The Group has an unrecorded deferred tax asset of $6,529,888 (2020: $6,321,138) in respect to tax losses
arising in Australia and $255,189 (2020: $207,313) in respect to tax losses arising in Mongolia, the tax benefit
of which has not been brought to account and are available subject to confirmation of the continuity of
ownership test or the same business test.
(y)
Leases
Where the Company is the lessee, the Group recognises a right-of-use asset and a corresponding
liability at the date which the lease asset is available for use by the Group (i.e. commencement date).
Each lease payment is allocated between the liability and the finance cost.
The lease liability is initially measured at the present value of the lease payments that are not paid at
commencement date, discounted using the rate implied in the lease. If this rate is not readily
determinable, the Group uses its incremental borrowing rate.
Lease payments included in the initial measurement if the lease liability consist of:
• Fixed lease payments less any lease incentives receivable;
• Variable lease payments that depend on an index or rate, initially measured using the index or
rate at commencement date;
• Any amounts expected to be payable by the Group under residual value guarantees;
• The exercise price of purchase options, if the Group is reasonably certain to exercise the
options; and
• Termination penalties of the lease term reflects the exercise of an option to terminate the lease.
Extension options are included in a number of property leases across the Group. In determining the
lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option. Extension options are only included in the lease term if, at commencement
date, it is reasonably certain that the options will be exercised.
Subsequent to initial recognition, the lease liability is measured by increasing the carrying amount to
reflect interest on the lease liability (using the effective interest method) and by reducing the carrying
amount to reflect the lease payments made. The lease liability is remeasured (with a corresponding
adjustment to the right-of-use asset) whenever there is a change in the lease term (including
assessments relating to extension and termination options), lease payments due to changes in an index
or rate, or expected payments under guaranteed residual values.
The finance cost is charged to profit or loss over the lease period so as to produce a consistent period
rate of interest on the remaining balance of the liability for each period.
Right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before commencement date, less any lease incentives received and any initial
direct costs. These right-of-use assets are subsequently measured at cost less accumulated
depreciation and impairment losses.
Where the terms of lease require the Group to restore the underlying asset, or the Group has an
obligation to dismantle and remove a leased asset, the provision is recognised and measured in
accordance with AASB 137. To the extent that the costs relate to a right-of-use asset, the costs are
included in the related right-of-use asset.
Right-of-use assets are depreciated on a straight-line basis over the term of the lease (or the useful life
of the leased asset if this is shorter). Depreciation starts on commencement date of the lease.
Where leases have a term of less than 12 months or relate to low value assets, the Group has applied
the optional exemptions to not capitalise these leases and instead account for the lease expense on a
straight-line basis over the lease term.
- 31 -
- 32 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 3: INCOME TAX (continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5: SEGMENT INFORMATION (CONTINUED)
The Group has an unrecorded deferred tax asset of $15,461 (2020: $30,922) relating to share issue and other
costs, and deferred tax liabilities of $1,984,673 (2020: $1,931,565) relating to capitalised exploration and
evaluation expenditure arising in Australia for which an offsetting deferred tax asset has been recognised.
The Group also has an unrecorded deferred tax asset of $345,745 (2020: $345,745) in respect to capital
losses arising in Australia.
The recovery of the carried forward tax losses is subject to the applicable Group companies continuing to
satisfy the continuity of ownership test or the similar business test or other tax legislation requirements or
limitations.
NOTE 4: EARNINGS PER SHARE
Basic loss per share:
2021
Cents per share
2020
Cents per share
(1.02)
(1.26)
The earnings and weighted average number of ordinary
shares used in the calculation of basic earnings per share is as
follows:
Earnings used in calculation of basic loss per share:
Loss attributable to owners of the parent
Weighted average number of ordinary shares for the purpose of
basic loss per share
(5,167,777)
(5,440,715)
507,636,563
433,448,136
As losses have been incurred to date, no dilutive earning loss per share has been disclosed.
NOTE 5: SEGMENT INFORMATION
Year ended 30 June 2021
Total segment revenue
Interest revenue
Depreciation and amortisation
Exploration and evaluation
expenditure impaired
Segment net operating loss
after tax
Continuing operations
Mongolia
$
Australia
$
Singapore
$
61,664
44,517
-
114,190
114,190
234,814
-
884
-
-
-
-
Total
$
175,854
158,707
234,814
884
(3,909,987)
(1,239,939)
(26,438)
(5,176,364)
Segment assets
29,863,351
40,373,520
12,864
70,249,735
Segment liabilities
Capital expenditure during the
year
(156,023)
(116,168)
-
(1,250,218)
-
-
(272,191)
(1,250,218)
Continuing operations
Australia
$
Mongolia
$
Singapore
310,247
115,083
310,247
-
-
115,083
297,782
1,233,218
Total
$
425,330
425,330
297,782
1,233,218
Year ended 30 June 2020
Total segment revenue
Interest revenue
Depreciation and amortisation
Exploration and evaluation
expenditure impaired
Segment net operating loss
after tax
(1,870,918)
(3,582,814)
(34,468)
(5,488,200)
Segment assets
36,186,821
42,264,347
9,665
78,460,833
Segment liabilities
(61,637)
(170,971)
Capital expenditure during the
year
-
(1,604,710)
(232,608)
(1,604,710)
$
-
-
-
-
-
-
NOTE 6: ISSUED CAPITAL
Ordinary shares
Issued and fully paid
Less share issue costs
Movements in ordinary shares on issue
At 1 July 2019
2021
$
2020
$
157,999,366 157,999,366
(7,972,958)
(7,972,958)
150,026,408 150,026,408
No.
$
3,326,541,075 114,897,715
15,333,012
2,759,942
-
(1,155,849)
507,636,985 150,026,408
507,636,985 150,026,408
Shares issued at 1.8 cents on 29 November 2019 on exercise of options
99,334
1,788
Shares issued at 2.1 cents on 3 December 2019 pursuant to the
Placement with a substantial shareholder
1,595,900,000
33,513,900
Shares issued at 1.8 cents on 4 December 2019 on exercise of options
214,499
Securities consolidation 1 for 10 on 5 December 2019
(4,430,478,995)
3,861
-
Shares issued at 18 cents on 11 December 2019 to a substantial
shareholder on exercise of options
Shares issued at 18 cents on 11 December 2019 on exercise of options
28,060
5,051
Share issue costs
At 30 June 2020
At 30 June 2021
- 31 -
- 32 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 3: INCOME TAX (continued)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5: SEGMENT INFORMATION (CONTINUED)
Year ended 30 June 2020
Total segment revenue
Interest revenue
Depreciation and amortisation
Exploration and evaluation
expenditure impaired
Segment net operating loss
after tax
Continuing operations
Mongolia
$
Australia
$
Singapore
$
310,247
115,083
310,247
-
115,083
297,782
-
1,233,218
-
-
-
-
Total
$
425,330
425,330
297,782
1,233,218
(1,870,918)
(3,582,814)
(34,468)
(5,488,200)
Cents per share
Cents per share
Segment assets
36,186,821
42,264,347
9,665
78,460,833
Segment liabilities
Capital expenditure during the
year
(61,637)
(170,971)
-
(1,604,710)
-
-
(232,608)
(1,604,710)
NOTE 6: ISSUED CAPITAL
Ordinary shares
Issued and fully paid
Less share issue costs
Movements in ordinary shares on issue
At 1 July 2019
Shares issued at 1.8 cents on 29 November 2019 on exercise of options
Shares issued at 2.1 cents on 3 December 2019 pursuant to the
Placement with a substantial shareholder
Shares issued at 1.8 cents on 4 December 2019 on exercise of options
Securities consolidation 1 for 10 on 5 December 2019
Shares issued at 18 cents on 11 December 2019 to a substantial
shareholder on exercise of options
Shares issued at 18 cents on 11 December 2019 on exercise of options
Share issue costs
At 30 June 2020
At 30 June 2021
2021
$
2020
$
157,999,366 157,999,366
(7,972,958)
(7,972,958)
150,026,408 150,026,408
No.
$
3,326,541,075 114,897,715
1,788
99,334
1,595,900,000
214,499
(4,430,478,995)
33,513,900
3,861
-
15,333,012
28,060
-
2,759,942
5,051
(1,155,849)
507,636,985 150,026,408
507,636,985 150,026,408
The Group has an unrecorded deferred tax asset of $15,461 (2020: $30,922) relating to share issue and other
costs, and deferred tax liabilities of $1,984,673 (2020: $1,931,565) relating to capitalised exploration and
evaluation expenditure arising in Australia for which an offsetting deferred tax asset has been recognised.
The Group also has an unrecorded deferred tax asset of $345,745 (2020: $345,745) in respect to capital
losses arising in Australia.
The recovery of the carried forward tax losses is subject to the applicable Group companies continuing to
satisfy the continuity of ownership test or the similar business test or other tax legislation requirements or
limitations.
NOTE 4: EARNINGS PER SHARE
Basic loss per share:
2021
(1.02)
2020
(1.26)
The earnings and weighted average number of ordinary
shares used in the calculation of basic earnings per share is as
follows:
Earnings used in calculation of basic loss per share:
Loss attributable to owners of the parent
Weighted average number of ordinary shares for the purpose of
basic loss per share
507,636,563
433,448,136
As losses have been incurred to date, no dilutive earning loss per share has been disclosed.
(5,167,777)
(5,440,715)
NOTE 5: SEGMENT INFORMATION
Year ended 30 June 2021
Total segment revenue
Interest revenue
Depreciation and amortisation
Exploration and evaluation
expenditure impaired
Segment net operating loss
after tax
Continuing operations
Mongolia
Singapore
Australia
$
61,664
44,517
-
-
$
114,190
114,190
234,814
884
Total
$
175,854
158,707
234,814
884
(3,909,987)
(1,239,939)
(26,438)
(5,176,364)
Segment assets
29,863,351
40,373,520
12,864
70,249,735
Segment liabilities
(156,023)
(116,168)
Capital expenditure during the
year
-
(1,250,218)
(272,191)
(1,250,218)
$
-
-
-
-
-
-
- 33 -
- 34 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: ACCUMULATED LOSSES AND RESERVES
NOTE 7: ACCUMULATED LOSSES AND RESERVES (continued)
Accumulated losses
Movements in accumulated losses are as follows:
Balance at beginning of financial year
2021
$
2020
$
(64,267,695)
(59,963,072)
Net loss for the year attributable to owners of the parent
(5,167,777)
(5,440,715)
Transfer on expiry of options/performance rights
Balance at end of financial year
281,233
1,136,092
(69,154,239)
(64,267,695)
Reserves
Contribution
Reserve
Foreign currency
translation
reserve
Share based
payments reserve
Total
$
$
$
$
At 30 June 2019
1,805,302
(8,164,866)
1,167,852
(5,191,712)
Currency translation differences
Options expired
Performance rights expired
Performance rights to account
-
-
-
-
(859,245)
-
(859,245)
-
-
-
(760,877)
(760,877)
(375,215)
(375,215)
169,480
169,480
At 30 June 2020
1,805,302
(9,024,111)
201,240
(7,017,569)
At 30 June 2020
1,805,302
(9,024,111)
201,240
(7,017,569)
Currency translation differences
Performance rights expired
Performance rights to account
-
-
-
(3,311,094)
-
(3,311,094)
-
-
(281,233)
(281,233)
79,993
79,993
Options
share options issued during the year:
The following table illustrates the number (No.) and weighted average exercise prices of and movements in
Outstanding at the beginning of the
year
Granted during the year
Exercised during the year
(pre-consolidation)
Share Consolidation (1:10)
Exercised during the year
(post-consolidation)
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2021
No.
2020
No.
2021
Weighted
average
exercise
price
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
700,722,235
(630,367,523)
(15,361,072)
(54,679,807)
-
-
-
2020
Weighted
average
exercise
price
0.018
0.018
0.018
0.018
-
-
-
(313,833)
0.018
On 5 December 2019, all options outstanding were consolidated on a 1:10 basis. All remaining options expired
on 11 December 2019 and as such there were no options on issue as at 30 June 2021 (30 June 2020: Nil).
Performance rights
The value of the performance rights is based on the number of performance rights granted multiplied by the
prevailing share price at the date of the grant of the performance rights. The number of performance rights
At 30 June 2021
1,805,302
(12,335,205)
- (10,529,903)
issued and the prevailing share price are known variables.
Nature and purpose of reserves
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of
the financial statements of foreign subsidiaries.
The vesting requirements applicable to the issued performance rights are based on achievement of operational
and strategic milestones. The value of the performance rights is taken to the Share Based Payments Reserve
progressively over the period the performance rights are expected to vest. The cumulative expense that will be
recorded will equate to the performance rights that ultimately vest.
Share based payments reserve
The share based payments reserve is used to record the value of equity instruments issued to Directors,
employees and qualifying contractors as part of their remuneration.
Contribution Reserve
The contribution reserve is used to record the value which arises as a result of transactions with non-controlling
interests that do not result in a loss of control.
There were no performance rights unexercised at 30 June 2021. The performance rights unexercised at 30
June 2020 were:
Outstanding at the beginning of the year
Granted during the year
Share Consolidation 1:10 – 5 December 2019
Vested and shares issued during the year
Forfeited/Expired during the year
Outstanding at the end of the year
2021
No
2020
No.
2,294,998
161,083,330
-
-
-
-
(137,474,993)
-
-
2,294,998
(2,294,998)
(21,313,339)
- 33 -
- 34 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: ACCUMULATED LOSSES AND RESERVES
NOTE 7: ACCUMULATED LOSSES AND RESERVES (continued)
Accumulated losses
Movements in accumulated losses are as follows:
Balance at beginning of financial year
2021
$
2020
$
(64,267,695)
(59,963,072)
Net loss for the year attributable to owners of the parent
(5,167,777)
(5,440,715)
Transfer on expiry of options/performance rights
Balance at end of financial year
281,233
1,136,092
(69,154,239)
(64,267,695)
Reserves
Contribution
Foreign currency
Share based
Total
Reserve
payments reserve
translation
reserve
$
$
At 30 June 2019
1,805,302
(8,164,866)
1,167,852
(5,191,712)
Currency translation differences
(859,245)
-
(859,245)
Options expired
Performance rights expired
Performance rights to account
(760,877)
(760,877)
(375,215)
(375,215)
169,480
169,480
At 30 June 2020
1,805,302
(9,024,111)
201,240
(7,017,569)
At 30 June 2020
1,805,302
(9,024,111)
201,240
(7,017,569)
Currency translation differences
Performance rights expired
Performance rights to account
(3,311,094)
-
(3,311,094)
(281,233)
(281,233)
79,993
79,993
At 30 June 2021
1,805,302
(12,335,205)
- (10,529,903)
$
-
-
-
-
-
-
-
$
-
-
-
-
-
The foreign currency translation reserve is used to record exchange differences arising from the translation of
The share based payments reserve is used to record the value of equity instruments issued to Directors,
employees and qualifying contractors as part of their remuneration.
Nature and purpose of reserves
Foreign currency translation reserve
the financial statements of foreign subsidiaries.
Share based payments reserve
Contribution Reserve
interests that do not result in a loss of control.
Options
The following table illustrates the number (No.) and weighted average exercise prices of and movements in
share options issued during the year:
Outstanding at the beginning of the
year
Granted during the year
Exercised during the year
(pre-consolidation)
Share Consolidation (1:10)
Exercised during the year
(post-consolidation)
Expired during the year
Outstanding at the end of the year
Exercisable at the end of the year
2021
No.
2020
No.
2021
Weighted
average
exercise
price
2020
Weighted
average
exercise
price
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
700,722,235
-
(313,833)
(630,367,523)
(15,361,072)
(54,679,807)
-
-
0.018
0.018
0.018
-
0.018
0.018
-
-
On 5 December 2019, all options outstanding were consolidated on a 1:10 basis. All remaining options expired
on 11 December 2019 and as such there were no options on issue as at 30 June 2021 (30 June 2020: Nil).
Performance rights
The value of the performance rights is based on the number of performance rights granted multiplied by the
prevailing share price at the date of the grant of the performance rights. The number of performance rights
issued and the prevailing share price are known variables.
The vesting requirements applicable to the issued performance rights are based on achievement of operational
and strategic milestones. The value of the performance rights is taken to the Share Based Payments Reserve
progressively over the period the performance rights are expected to vest. The cumulative expense that will be
recorded will equate to the performance rights that ultimately vest.
There were no performance rights unexercised at 30 June 2021. The performance rights unexercised at 30
June 2020 were:
The contribution reserve is used to record the value which arises as a result of transactions with non-controlling
Outstanding at the beginning of the year
Granted during the year
Share Consolidation 1:10 – 5 December 2019
Vested and shares issued during the year
Forfeited/Expired during the year
Outstanding at the end of the year
2021
No
2020
No.
2,294,998
161,083,330
-
-
-
-
(137,474,993)
-
(2,294,998)
(21,313,339)
-
2,294,998
- 35 -
- 36 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: ACCUMULATED LOSSES AND RESERVES (continued)
Nature and purpose of reserves (continued)
Performance rights (continued)
At the Company’s Annual General Meeting held on 29 November 2019, shareholders approved a 1 for 10
securities consolidation. The consolidation was completed on 5 December 2019.
During 2020:
•
3,055,003 performance rights lapsed and were cancelled as the milestone of 80% or more of the Listed
Options were not exercised on or before 11 December 2019.
• Two tranches (total 6,110,004 performance rights) with production and profitability milestones did not
vest on or before 31 December 2019 and were cancelled.
•
3,055,001 performance rights lapsed and were cancelled as the milestone of a 30 day VWAP of the
Company’s shares as traded on ASX at equal to or greater than A$0.30 by 30 June 2020 did not occur.
•
9,093,331 performance rights were forfeited and cancelled on termination of employment.
During 2021:
• The remaining 2,294,998 performance rights lapsed and were cancelled as the milestone of a 30-day
VWAP of the Company’s Shares as traded on ASX at equal to or be greater than A$0.40 by 30 June
2021 did not occur.
NOTE 8: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Short term interest bearing deposits
2021
$
5,894,268
28,279,598
34,173,866
2020
$
730,004
39,982,945
40,712,949
There were no credit losses in the current or the prior year.
NOTE 10: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
2021
$
2020
$
Cash at bank earns interest at floating rates based on daily bank deposit rates.
All cash was available for use and no restrictions were placed on the use of it at any time during the period,
other than a short term deposit of $10,000 (2020: $10,000) is on deposit as cash backed security against a
business use credit card limit and office rental.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 8: CASH AND CASH EQUIVALENTS (continued)
Reconciliation of loss for the year to net cash flows from operating activities
2021
$
2020
$
(5,176,364)
(5,488,200)
Loss for the year
Change in net assets and liabilities:
Change in trade and other receivables
Changes in trade and other payables
Profit on sale of property, plant and equipment
Amortisation and depreciation expense
Share based payments
Exploration expenditure impairment
Foreign exchange (gain)/loss
Net cash used in operating activities
NOTE 9: CURRENT TRADE AND OTHER RECEIVABLES
GST recoverable
Prepayments
Interest receivable
Other receivables
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred, net of cost recoveries
Impairment of exploration and evaluation expenditure
Foreign exchange loss
Total exploration and evaluation expenditure
Total expenditure incurred and carried forward in respect of
specific projects -
Ovoot Coking Coal Project
Nuurstei Coking Coal Project
Total exploration and evaluation expenditure
260,118
4,672
9,759
234,814
79,993
884
2,922,426
(1,663,698)
2021
$
12,691
457,770
5,356
57,690
533,507
36,470,102
934,829
(884)
(2,360,258)
35,043,789
34,435,087
608,702
35,043,789
(289,735)
315,441
2,227
297,782
169,480
1,233,218
84,124
(3,675,663)
2020
$
17,035
445,648
23,424
316,253
802,360
37,461,876
1,374,197
(1,233,218)
(1,132,753)
36,470,102
35,433,775
1,036,327
36,470,102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 7: ACCUMULATED LOSSES AND RESERVES (continued)
Nature and purpose of reserves (continued)
Performance rights (continued)
securities consolidation. The consolidation was completed on 5 December 2019.
During 2020:
•
3,055,003 performance rights lapsed and were cancelled as the milestone of 80% or more of the Listed
Options were not exercised on or before 11 December 2019.
• Two tranches (total 6,110,004 performance rights) with production and profitability milestones did not
vest on or before 31 December 2019 and were cancelled.
•
3,055,001 performance rights lapsed and were cancelled as the milestone of a 30 day VWAP of the
Company’s shares as traded on ASX at equal to or greater than A$0.30 by 30 June 2020 did not occur.
•
9,093,331 performance rights were forfeited and cancelled on termination of employment.
• The remaining 2,294,998 performance rights lapsed and were cancelled as the milestone of a 30-day
VWAP of the Company’s Shares as traded on ASX at equal to or be greater than A$0.40 by 30 June
During 2021:
2021 did not occur.
NOTE 8: CASH AND CASH EQUIVALENTS
Cash at bank and on hand
Short term interest bearing deposits
2021
$
5,894,268
28,279,598
34,173,866
2020
$
730,004
39,982,945
40,712,949
Cash at bank earns interest at floating rates based on daily bank deposit rates.
All cash was available for use and no restrictions were placed on the use of it at any time during the period,
other than a short term deposit of $10,000 (2020: $10,000) is on deposit as cash backed security against a
business use credit card limit and office rental.
- 35 -
- 36 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 8: CASH AND CASH EQUIVALENTS (continued)
Reconciliation of loss for the year to net cash flows from operating activities
At the Company’s Annual General Meeting held on 29 November 2019, shareholders approved a 1 for 10
Change in net assets and liabilities:
Loss for the year
Change in trade and other receivables
Changes in trade and other payables
Profit on sale of property, plant and equipment
Amortisation and depreciation expense
Share based payments
Exploration expenditure impairment
Foreign exchange (gain)/loss
Net cash used in operating activities
NOTE 9: CURRENT TRADE AND OTHER RECEIVABLES
GST recoverable
Prepayments
Interest receivable
Other receivables
2021
$
2020
$
(5,176,364)
(5,488,200)
260,118
4,672
9,759
234,814
79,993
884
2,922,426
(1,663,698)
2021
$
12,691
457,770
5,356
57,690
533,507
(289,735)
315,441
2,227
297,782
169,480
1,233,218
84,124
(3,675,663)
2020
$
17,035
445,648
23,424
316,253
802,360
There were no credit losses in the current or the prior year.
NOTE 10: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE
Costs carried forward in respect of:
Exploration and evaluation phase – at cost
Balance at beginning of year
Expenditure incurred, net of cost recoveries
Impairment of exploration and evaluation expenditure
Foreign exchange loss
Total exploration and evaluation expenditure
Total expenditure incurred and carried forward in respect of
specific projects -
Ovoot Coking Coal Project
Nuurstei Coking Coal Project
Total exploration and evaluation expenditure
2021
$
2020
$
36,470,102
934,829
(884)
(2,360,258)
35,043,789
34,435,087
608,702
35,043,789
37,461,876
1,374,197
(1,233,218)
(1,132,753)
36,470,102
35,433,775
1,036,327
36,470,102
- 37 -
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 10: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE (continued)
Exploration expenditure incurred on the Ovoot Coking Coal Project and Nuurstei Coking Coal Project mining
licences has been carried forward as that expenditure is expected to be recouped through successful
development and exploration of the areas of interest, or alternatively, by sale.
As Northern Railways LLC does not currently have in place the funding to build and operate the railway, the
Group has impaired the evaluation expenditure incurred.
NOTE 11: TRADE AND OTHER PAYABLES (CURRENT)
Trade payables
Accrued expenses
Employee entitlements
Corporate credit card
2021
$
152,866
60,403
5,433
-
218,702
2020
$
130,592
25,000
5,925
599
162,116
Trade payables and accrued expenses are normally settled on 30 day terms.
NOTE 12: PROPERTY, PLANT AND EQUIPMENT
Right of use
property
Plant &
Equipment
$
$
Furniture
&
Fittings
$
Office
Equipment
Motor
Vehicles
Total
$
$
$
123,897
228,370
-
(24,087)
(12,410)
315,770
49,045
-
-
(37,777)
(4,322)
6,946
36,553
4,972
(154)
(23,309)
(3,270)
14,792
40,534
14,419
(2,244)
(22,897)
(3,674)
26,138
54,280
63,494
-
(54,717)
(5,035)
58,022
304,309
311,255
(2,398)
(162,787)
(28,711)
421,668
1,093,194
(671,526)
421,668
134,291
13,199
-
(18,549)
(5,044)
123,897
102,880
-
-
(52,678)
(1,157)
49,045
53,789
20,061
(7,380)
(28,668)
(1,249)
36,553
57,499 128,597
-
29,248
(8,870)
(12,633)
(64,415)
(32,159)
(1,032)
(1,421)
54,280
40,534
477,056
62,508
(28,883)
(196,469)
(9,903)
304,309
1,291,603
(987,294)
304,309
30 June 2021
Carrying value at 1 July 2020
Additions
Disposals
Depreciation charge for the year
Exchange rate movement
Carrying value at 30 June 2021
30 June 2021
Cost
Accumulated depreciation
Net carrying amount
30 June 2020
Carrying value at 1 July 2019
Additions
Disposals
Depreciation charge for the year
Exchange rate movement
Carrying value at 30 June 2020
30 June 2020
Cost
Accumulated depreciation
Net carrying amount
The carrying value of motor vehicles held under a finance loan agreement at 30 June 2021 is $4,652
(2020: $54,280). The motor vehicle is pledged as security for the finance loan liability.
- 37 -
- 38 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 10: DEFERRED EXPLORATION AND EVALUATION EXPENDITURE (continued)
NOTE 13: INTANGIBLE ASSET
Exploration Software
Carrying value at beginning of year
Additions
Disposals
Amortisation for the year
Exchange rate movement
At end of year
At 30 June
Cost
Accumulated amortisation
Net carrying amount
NOTE 14: FINANCIAL LIABILITIES
Finance loan liability
Current liability
Non-current liability
1,093,194
(671,526)
421,668
Balance at beginning of period
Payments
Balance at end of period
2021
$
171,113
4,094
(10,932)
(72,027)
(15,343)
76,905
206,391
(129,486)
76,905
2021
$
53,489
53,489
10,522
42,967
53,489
$
70,492
(17,003)
53,489
2020
$
112,618
168,005
(16)
(101,313)
(8,181)
171,113
307,782
(136,669)
171,113
2020
$
70,492
70,492
11,588
58,904
70,492
$
85,479
(14,987)
70,492
In August 2018, the Company’s Mongolian subsidiary, Khurgatai Khairkhan LLC, entered into a loan agreement
for two motor vehicles for use by the Ulanbaatar office. The loan is for 180million MNT ($98,795) with monthly
principal instalments of 1.875 million MNT per month (approx. $1,040 pm) and interest at 15.6% pa over the 96
month term.
Exploration expenditure incurred on the Ovoot Coking Coal Project and Nuurstei Coking Coal Project mining
licences has been carried forward as that expenditure is expected to be recouped through successful
development and exploration of the areas of interest, or alternatively, by sale.
As Northern Railways LLC does not currently have in place the funding to build and operate the railway, the
Group has impaired the evaluation expenditure incurred.
NOTE 11: TRADE AND OTHER PAYABLES (CURRENT)
Trade payables
Accrued expenses
Employee entitlements
Corporate credit card
Trade payables and accrued expenses are normally settled on 30 day terms.
NOTE 12: PROPERTY, PLANT AND EQUIPMENT
2021
$
152,866
60,403
5,433
-
218,702
2020
$
130,592
25,000
5,925
599
162,116
Right of use
Plant &
property
Equipment
Office
Motor
Total
Equipment
Vehicles
$
$
$
$
$
Furniture
Fittings
&
$
123,897
228,370
-
(24,087)
(12,410)
315,770
49,045
36,553
-
-
4,972
(154)
40,534
14,419
(2,244)
54,280
63,494
-
304,309
311,255
(2,398)
(37,777)
(23,309)
(22,897)
(54,717)
(162,787)
(4,322)
6,946
(3,270)
14,792
(3,674)
(5,035)
26,138
58,022
(28,711)
421,668
30 June 2021
Carrying value at 1 July 2020
Additions
Disposals
Depreciation charge for the year
Exchange rate movement
Carrying value at 30 June 2021
30 June 2021
Cost
Accumulated depreciation
Net carrying amount
30 June 2020
Carrying value at 1 July 2019
Additions
Disposals
Depreciation charge for the year
Exchange rate movement
Carrying value at 30 June 2020
30 June 2020
Cost
Accumulated depreciation
Net carrying amount
134,291
13,199
-
(18,549)
(5,044)
123,897
102,880
53,789
20,061
(7,380)
57,499 128,597
29,248
-
477,056
62,508
(12,633)
(8,870)
(28,883)
-
-
(52,678)
(28,668)
(32,159)
(64,415)
(196,469)
(1,157)
49,045
(1,249)
36,553
(1,421)
(1,032)
(9,903)
40,534
54,280
304,309
1,291,603
(987,294)
304,309
The carrying value of motor vehicles held under a finance loan agreement at 30 June 2021 is $4,652
(2020: $54,280). The motor vehicle is pledged as security for the finance loan liability.
- 39 -
- 40 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 15: NON-CONTROLLING INTERESTS AND CONTRIBUTION RESERVE
There is a 10% non-controlling interest in the Coalridge Limited group entity that holds the Nuurstei Coking Coal
mining and exploration licenses.
There is also a 20% non-controlling interest in Northern Rail Holdings Limited. During 2018, the Group disposed
of a 10% interest in NRML to the Noble Group to bring Noble’s interests in NRML to 20% in exchange for a
US$1.4 million reduction of the long-term facility payable to Noble.
In 2018, the gain on divestment of the shares held by the Company in NRIPL of $1,805,302 was reclassified to
a contribution reserve on consolidation.
Non-controlling interest summary
Balance at 30 June 2019
Loss allocated to non-controlling interest
Other comprehensive loss allocated to
non-controlling interest
Balance at 30 June 2020
Loss allocated to non-controlling interest
Other comprehensive profit/(loss)
allocated to non-controlling interest
Balance at 30 June 2021
Coalridge Limited
$
(88,379)
(18,034)
(10,611)
(117,024)
(2,782)
(53,141)
(172,947)
Northern Rail
Holdings Limited
$
(357,680)
Total
$
(446,059)
(29,451)
(47,485)
(8,764)
(395,895)
(19,375)
(512,919)
(5,805)
(8,587)
209,925
(191,775)
156,784
(364,722)
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Revenue
Loss for the year
Total comprehensive profit/(loss) for
the year
Coalridge Limited
30 June
2021
$
15,660
608,702
624,362
(16,947)
-
(16,947)
607,415
30 June
2020
$
30,811
1,038,718
1,069,529
(17,403)
-
(17,403)
1,052,126
(27,809)
(559,221)
(180,333)
(286,442)
Northern Railway
Holdings Limited
30 June
2021
$
10,210
-
10,210
(13,737)
-
(13,737)
(3,527)
30 June
2020
$
10,210
-
10,210
(13,737)
-
(13,737)
(3,527)
-
(29,025)
1,020,603
-
(147,256)
(191,077)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: FINANCIAL INSTRUMENTS
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders
of the parent, comprising issued capital, reserves and retained earnings. None of the Group’s entities are subject
to externally imposed capital requirements. Operating cash flows are used to maintain and expand operations,
as well as to make routine expenditures such as tax, dividends and general administrative outgoings. Working
capital, cash and cash equivalents and capital requirements are reviewed by the Board on a regular basis.
2021
$
75,737
34,173,866
34,249,603
218,702
53,487
272,189
2020
$
356,712
40,712,949
41,069,661
162,116
70,492
232,608
Financial assets:
Receivables
Cash and cash equivalents
Financial liabilities:
Trade and other creditors
Borrowings
2021
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
2020
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
rate
%
0.30
0.41
0.50
1.25
The following table details the expected maturities for the Group’s non-derivative financial assets. These have
been drawn up based on contractual maturities of the financial assets except where the Group anticipates that
the cash flow will occur in a different period.
Weighted average
effective interest
Less than 1
month
1 – 3
Months
3 months – 1
1 – 5
years
5+ years
$
$
$
$
year
$
23,980,592
29,950,597
4,299,006
4,299,006
108,019
5,861,986
390,541
696,175
-
-
-
-
- 34,903,456
1,086,716 34,903,456
5,079,486
5,079,486
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 39 -
- 40 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 15: NON-CONTROLLING INTERESTS AND CONTRIBUTION RESERVE
There is a 10% non-controlling interest in the Coalridge Limited group entity that holds the Nuurstei Coking Coal
mining and exploration licenses.
There is also a 20% non-controlling interest in Northern Rail Holdings Limited. During 2018, the Group disposed
of a 10% interest in NRML to the Noble Group to bring Noble’s interests in NRML to 20% in exchange for a
US$1.4 million reduction of the long-term facility payable to Noble.
In 2018, the gain on divestment of the shares held by the Company in NRIPL of $1,805,302 was reclassified to
a contribution reserve on consolidation.
Non-controlling interest summary
Northern Rail
Coalridge Limited
Holdings Limited
$
$
Total
$
Balance at 30 June 2019
Loss allocated to non-controlling interest
Other comprehensive loss allocated to
non-controlling interest
Balance at 30 June 2020
Loss allocated to non-controlling interest
Other comprehensive profit/(loss)
allocated to non-controlling interest
Balance at 30 June 2021
(88,379)
(18,034)
(10,611)
(117,024)
(2,782)
(53,141)
(172,947)
(357,680)
(446,059)
(29,451)
(47,485)
(8,764)
(395,895)
(19,375)
(512,919)
(5,805)
(8,587)
209,925
(191,775)
156,784
(364,722)
Coalridge Limited
30 June
2021
$
15,660
608,702
624,362
(16,947)
-
(16,947)
607,415
30 June
2020
$
30,811
1,038,718
1,069,529
(17,403)
-
(17,403)
1,052,126
Northern Railway
Holdings Limited
30 June
2021
30 June
2020
10,210
10,210
10,210
(13,737)
10,210
(13,737)
(13,737)
(3,527)
(13,737)
(3,527)
$
-
-
-
$
-
-
-
Total comprehensive profit/(loss) for
(27,809)
(559,221)
(180,333)
(286,442)
(29,025)
1,020,603
(147,256)
(191,077)
Current Assets
Non-Current Assets
Total Assets
Current Liabilities
Non-Current Liabilities
Total Liabilities
Net Assets
Revenue
Loss for the year
the year
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 16: FINANCIAL INSTRUMENTS
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern.
The capital structure of the Group consists of cash and cash equivalents and equity attributable to equity holders
of the parent, comprising issued capital, reserves and retained earnings. None of the Group’s entities are subject
to externally imposed capital requirements. Operating cash flows are used to maintain and expand operations,
as well as to make routine expenditures such as tax, dividends and general administrative outgoings. Working
capital, cash and cash equivalents and capital requirements are reviewed by the Board on a regular basis.
Financial assets:
Receivables
Cash and cash equivalents
Financial liabilities:
Trade and other creditors
Borrowings
2021
$
75,737
34,173,866
34,249,603
218,702
53,487
272,189
2020
$
356,712
40,712,949
41,069,661
162,116
70,492
232,608
The following table details the expected maturities for the Group’s non-derivative financial assets. These have
been drawn up based on contractual maturities of the financial assets except where the Group anticipates that
the cash flow will occur in a different period.
Weighted average
effective interest
rate
Less than 1
month
1 – 3
Months
3 months – 1
year
1 – 5
years
5+ years
%
$
$
$
$
$
0.30
0.41
0.50
1.25
108,019
5,861,986
-
-
23,980,592
29,950,597
4,299,006
4,299,006
390,541
696,175
-
-
-
-
-
-
-
-
- 34,903,456
1,086,716 34,903,456
5,079,486
5,079,486
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
2020
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 41 -
- 42 -
Aspire Mining Limited
Aspire Mining Limited
NOTE 16: FINANCIAL INSTRUMENTS (continued)
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The following table details the Group’s remaining contractual maturities for its non-derivative financial
liabilities. These are based on the undiscounted cash flows of financial liabilities based on the earliest date on
which the Group can be required to pay.
Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management
committee annually.
Weighted average
effective interest
rate
Less than 1
month
1 – 3
Months
3 months – 1
year
1 – 5
years
5+ years
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments
is limited because the counterparties are banks with high credit ratings assigned by international credit rating
2021
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
2020
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
%
-
-
15.6
-
-
15.6
$
$
$
$
$
218,702
-
-
218,702
162,116
-
-
162,116
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,522
10,522
42,965
42,965
-
-
-
-
11,588
11,588
58,903
58,903
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group has exposure to the following risks from the use of financial instruments:
• Credit risk
• Liquidity risk
•
Interest rate risk
• Foreign currency risk
• Market risk
This note presents the information about the Group’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk. The Board has overall responsibility for the
establishment and oversight of the risk management framework. The Board reviews and agrees policies for
managing each of these risks as summarised below. The Group’s principal financial instruments comprise cash
and short-term deposits. The main purpose of the financial instruments is to earn the maximum amount of
interest at a low risk to the Group. The Group also has other financial instruments such as receivables and
creditors which arise directly from its operations. For the years ended 30 June 2021 and 2020, it has been the
Group’s policy not to trade in financial instruments.
Credit risk management
(a)
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The
Group only transacts with entities that are rated the equivalent of investment grade and above. This information
is supplied by independent rating agencies where available and, if not available, the Group uses publicly
available financial information. The Group’s exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral
agencies.
obtained.
(b)
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and
banking by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. The Group did not have any undrawn facilities at balance date (2020: $Nil).
(c)
Interest rate risk management
The Group is exposed to interest rate risk as the Group deposits the bulk of the Group’s cash reserves in term
deposits with the National Australia Bank (“NAB”). The risk is managed by the Group by maintaining an
appropriate mix between short term and medium-term deposits and . The Group’s exposures to interest rate on
financial assets and financial liabilities are detailed in the liquidity risk management section of this note.
Interest rate sensitivity
remaining constant would be as follows:
At 30 June 2021, the effect on loss and equity as a result of changes in the interest rate, with all other variable
Change in Loss
Increase in interest rate by 1%
Decrease in interest rate by 1%
Change in Equity
Increase in interest rate by 1%
Decrease in interest rate by 1%
2021
$
58,620
(58,620)
2020
$
6,947
(6,947)
58,620
(58,620)
6,947
(6,947)
(d)
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies hence exposures to exchange
rate fluctuations arise. The Group does not manage these exposures with foreign currency derivative products.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at
the balance date expressed in Australian dollars are as follows:
US Dollars
Mongolian Tugriks
Liabilities
2021
2020
$
-
$
-
116,167
162,668
Assets
2021
$
2020
$
34,107,102
39,937,178
359,053
40,953
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 41 -
- 42 -
Aspire Mining Limited
Aspire Mining Limited
NOTE 16: FINANCIAL INSTRUMENTS (continued)
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
The following table details the Group’s remaining contractual maturities for its non-derivative financial
liabilities. These are based on the undiscounted cash flows of financial liabilities based on the earliest date on
which the Group can be required to pay.
Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management
committee annually.
The Group does not have any significant credit risk exposure to any single counterparty or any Group of
counterparties having similar characteristics. The credit risk on liquid funds and derivative financial instruments
is limited because the counterparties are banks with high credit ratings assigned by international credit rating
agencies.
The carrying amount of financial assets recorded in the financial statements, net of any allowance for losses,
represents the Group’s maximum exposure to credit risk without taking account of the value of any collateral
obtained.
(b)
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board, who have built an appropriate liquidity
risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves and
banking by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. The Group did not have any undrawn facilities at balance date (2020: $Nil).
(c)
Interest rate risk management
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group has exposure to the following risks from the use of financial instruments:
11,588
11,588
58,903
58,903
The Group is exposed to interest rate risk as the Group deposits the bulk of the Group’s cash reserves in term
deposits with the National Australia Bank (“NAB”). The risk is managed by the Group by maintaining an
appropriate mix between short term and medium-term deposits and . The Group’s exposures to interest rate on
financial assets and financial liabilities are detailed in the liquidity risk management section of this note.
Interest rate sensitivity
At 30 June 2021, the effect on loss and equity as a result of changes in the interest rate, with all other variable
remaining constant would be as follows:
Change in Loss
Increase in interest rate by 1%
Decrease in interest rate by 1%
Change in Equity
Increase in interest rate by 1%
Decrease in interest rate by 1%
2021
$
58,620
(58,620)
2020
$
6,947
(6,947)
58,620
(58,620)
6,947
(6,947)
(d)
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies hence exposures to exchange
rate fluctuations arise. The Group does not manage these exposures with foreign currency derivative products.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at
the balance date expressed in Australian dollars are as follows:
US Dollars
Mongolian Tugriks
Liabilities
2021
$
-
116,167
2020
$
-
162,668
Assets
2021
$
2020
$
34,107,102
359,053
39,937,178
40,953
Weighted average
effective interest
Less than 1
month
1 – 3
Months
3 months – 1
year
1 – 5
years
5+ years
$
$
$
$
$
218,702
218,702
162,116
-
-
-
-
162,116
-
-
-
-
-
-
-
-
10,522
10,522
42,965
42,965
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2021
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
2020
Non-interest
bearing
Variable interest
rate instruments
Fixed interest rate
instruments
rate
%
15.6
-
-
-
-
15.6
• Credit risk
• Liquidity risk
•
Interest rate risk
• Foreign currency risk
• Market risk
This note presents the information about the Group’s exposure to each of the above risks, their objectives,
policies and processes for measuring and managing risk. The Board has overall responsibility for the
establishment and oversight of the risk management framework. The Board reviews and agrees policies for
managing each of these risks as summarised below. The Group’s principal financial instruments comprise cash
and short-term deposits. The main purpose of the financial instruments is to earn the maximum amount of
interest at a low risk to the Group. The Group also has other financial instruments such as receivables and
creditors which arise directly from its operations. For the years ended 30 June 2021 and 2020, it has been the
Group’s policy not to trade in financial instruments.
(a)
Credit risk management
Credit risk refers to the risk that a counter-party will default on its contractual obligations resulting in financial
loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The
Group only transacts with entities that are rated the equivalent of investment grade and above. This information
is supplied by independent rating agencies where available and, if not available, the Group uses publicly
available financial information. The Group’s exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 43 -
- 44 -
Aspire Mining Limited
Aspire Mining Limited
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency sensitivity analysis
The Group is exposed to US Dollar (USD) and Mongolian Tugrik currency fluctuations.
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against
the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally
to key management personnel and represent management’s assessment of the possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity
analysis includes external loans as well as loans to foreign operations within the Group where the denomination
of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an
increase in profit and equity where the Australian Dollar weakens against the respective currency. Conversely,
a negative number indicates a strengthening of the Australian Dollar against the respective currency and a
negative impact on profit and equity.
NOTE 18: COMMITMENTS
Remuneration Commitments
Exploration Commitments
The Group has entered into remuneration commitments with all the Directors and other key management
personnel of the Group which were in effect throughout the financial year. The Group also employs consultants
who are contracted under standard consultancy rates.
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration
assets it has an interest in. Outstanding exploration commitments are as follows:
Within a year
Later than one year but not later than five years
Motor Vehicle Loan Commitment
10% Increase
2021
$
2020
$
During the prior year, the Group entered into a loan agreement to purchase two motor vehicles.
Profit/(loss) and equity – US dollar exposure
3,100,646
3,644,708
Within a year
Later than one year but not later than five years
Profit/(loss) and equity – Mongolian Tugrik
42,357
11,142
10% Decrease
$
$
Profit/(loss) and equity – US dollar exposure
(3,789,678)
(4,453,643)
Profit/(loss) and equity – Mongolian Tugrik
(57,248)
(13,618)
Investment Consideration Commitments
(e)
Market risk management
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or value of the holdings of financial instruments. The Group is exposed to
movements in market interest rates on short term deposits. The Group does not have short-term or long-term
debt with variable interest rates, and therefore this risk is minimal. The Group limits its exposure to credit risk by
only investing in liquid securities and only with counterparties that have acceptable credit ratings.
The carrying value of the financial assets and liabilities in the financial statements approximates their fair value.
2021
$
20,359
81,437
2020
$
22,421
67,263
2021
$
18,117
56,941
-
75,059
(21,571)
53,488
10,522
42,966
53,488
2020
$
21,759
68,972
13,700
104,431
(33,939)
70,492
11,588
58,904
70,492
More than 5 years
Total liability
Less unexpired interest
Present value
Represented by:
Current liability
Non-current liability:
area.
NOTE 19: DIVIDENDS
Pursuant to the initial acquisition from Xanadu Limited of the 50% interest in Coalridge Limited that owns 90%
interest in the Nuurstei Coking Coal Project (Nuurstei Project), 5 million shares in Aspire are to be issued to
Xanadu in the event that 30 million tonnes of JORC compliant resources are identified in the Nuurstei Project
The Directors of the Group have not declared any dividend for the year ended 30 June 2021.
NOTE 20: CONTINGENT LIABILITIES
There are no contingent liabilities at 30 June 2021.
NOTE 21: EVENTS SUBSEQUENT TO REPORTING DATE
There has not been any material matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 43 -
- 44 -
Aspire Mining Limited
Aspire Mining Limited
NOTE 17: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Foreign currency sensitivity analysis
NOTE 18: COMMITMENTS
Remuneration Commitments
The Group is exposed to US Dollar (USD) and Mongolian Tugrik currency fluctuations.
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against
the relevant foreign currencies. 10% is the sensitivity rate used when reporting foreign currency risk internally
to key management personnel and represent management’s assessment of the possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary
items and adjusts their translation at the period end for a 10% change in foreign currency rates. The sensitivity
analysis includes external loans as well as loans to foreign operations within the Group where the denomination
of the loan is in a currency other than the currency of the lender or the borrower. A positive number indicates an
increase in profit and equity where the Australian Dollar weakens against the respective currency. Conversely,
a negative number indicates a strengthening of the Australian Dollar against the respective currency and a
negative impact on profit and equity.
10% Increase
2021
$
2020
$
Profit/(loss) and equity – US dollar exposure
3,100,646
3,644,708
Profit/(loss) and equity – Mongolian Tugrik
42,357
11,142
10% Decrease
$
$
Profit/(loss) and equity – US dollar exposure
(3,789,678)
(4,453,643)
Profit/(loss) and equity – Mongolian Tugrik
(57,248)
(13,618)
(e)
Market risk management
Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or value of the holdings of financial instruments. The Group is exposed to
movements in market interest rates on short term deposits. The Group does not have short-term or long-term
debt with variable interest rates, and therefore this risk is minimal. The Group limits its exposure to credit risk by
only investing in liquid securities and only with counterparties that have acceptable credit ratings.
The carrying value of the financial assets and liabilities in the financial statements approximates their fair value.
The Group has entered into remuneration commitments with all the Directors and other key management
personnel of the Group which were in effect throughout the financial year. The Group also employs consultants
who are contracted under standard consultancy rates.
Exploration Commitments
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration
assets it has an interest in. Outstanding exploration commitments are as follows:
Within a year
Later than one year but not later than five years
Motor Vehicle Loan Commitment
2021
$
20,359
81,437
2020
$
22,421
67,263
During the prior year, the Group entered into a loan agreement to purchase two motor vehicles.
Within a year
Later than one year but not later than five years
More than 5 years
Total liability
Less unexpired interest
Present value
Represented by:
Current liability
Non-current liability:
2021
$
18,117
56,941
-
75,059
(21,571)
53,488
10,522
42,966
53,488
2020
$
21,759
68,972
13,700
104,431
(33,939)
70,492
11,588
58,904
70,492
Investment Consideration Commitments
Pursuant to the initial acquisition from Xanadu Limited of the 50% interest in Coalridge Limited that owns 90%
interest in the Nuurstei Coking Coal Project (Nuurstei Project), 5 million shares in Aspire are to be issued to
Xanadu in the event that 30 million tonnes of JORC compliant resources are identified in the Nuurstei Project
area.
NOTE 19: DIVIDENDS
The Directors of the Group have not declared any dividend for the year ended 30 June 2021.
NOTE 20: CONTINGENT LIABILITIES
There are no contingent liabilities at 30 June 2021.
NOTE 21: EVENTS SUBSEQUENT TO REPORTING DATE
There has not been any material matter or circumstance that has arisen after balance date that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of
affairs of the Group in future financial periods.
- 45 -
- 46 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 22: DIRECTORS AND EXECUTIVE DISCLOSURES
NOTE 24: PARENT ENTITY DISCLOSURES (continued)
The totals of remuneration paid to key management personnel of the Company during the year are as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments
2021
$
830,469
5,205
67,033
902,707
2020
$
1,074,555
5,205
160,422
1,240,182
Share based payments is the gross accounting value of performance rights and options brought to account in
accordance with accounting standards.
Related Party Transactions
In 2021, Kingsland Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David
Paull, was paid $15,150 for the services provided by David Paull beyond his NED Chair role (2020: Nil). In 2020,
MICC LLC, a Company related to Executive Director, Mr Achit-Erdene Darambazar, was paid financial advisory
fees of A$55,000 and an equity financing fee of A$418,923 (US$284,750).
NOTE 23: AUDITOR’S REMUNERATION
The auditor of Aspire Mining Limited is HLB Mann Judd.
Amounts received or due and receivable by HLB Mann Judd for:
An audit or review of the financial reports
Other services
2021
$
50,460
-
50,460
The auditor of Khurgatai Khairkhan LLC, its direct subsidiaries and Northern Railways LLC is KPMG.
Amounts received or due and receivable by KPMG:
An audit or review of the financial reports
Other services
NOTE 24: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
2021
$
73,614
-
73,614
2021
$
29,863,351
6,615,577
36,478,928
156,022
156,022
36,322,906
150,026,408
-
(113,703,502)
36,322,906
2020
$
49,700
-
49,700
2020
$
75,548
-
75,548
2020
$
36,186,822
6,438,548
42,625,370
61,636
61,636
42,563,734
150,026,408
201,240
(107,663,914)
42,563,734
Year ended
30 June 2021
$
(6,320,821)
(6,320,821)
Year ended
30 June 2020
$
(7,889,619)
(7,889,619)
Parent Company Capital Commitments and Contingent Liabilities
The parent entity currently has no capital commitments for the acquisition of property, plant and equipment.
See Note 18 for obligations of Aspire to issue securities.
The consolidated financial statements include the financial statements of Aspire Mining Limited and its below
Financial performance
Operating loss for the year
Total comprehensive loss
NOTE 25: SUBSIDIARIES
subsidiaries.
Subsidiary Name
Khurgatai Khairkhan LLC
Ovoot Coal Mining LLC
Chilchig Gol LLC
Ovoot Coking Coal Pte Ltd
Northern Railways LLC
Northern Railways Holdings LLC
Northern Railways Pte Ltd
Northern Infrastructure Limited
Coalridge Limited
Ekhgoviin Chuluu LLC
Black Rock LLC
Urnuun Elbeg LLC
Country of incorporation
2021
2020
% Equity Owned
Investment
Mongolia
Mongolia
Mongolia
Singapore
Mongolia
Mongolia
Singapore
Mongolia
Mongolia
Mongolia
British Virgin Islands
British Virgin Islands
2021
100%
100%
100%
100%
80%
80%
80%
80%
100%
100%
90%
100%
2020
100%
100%
100%
80%
80%
80%
80%
100%
90%
-
100% $9,428,158 $9,428,158
$136,230
$136,230
$1
$1
$97,408
$97,408
100% $1,541,390 $1,541,390
-
-
-
-
-
-
-
-
-
-
-
-
-
-
*1. 20,000 options held in the Name of Russell Lynton Brown.
2. 4,020,000 options held in the name of Husif Nominees Pty Ltd ; Mr Lynton-Brown is a
Director and controlling shareholder.
Aspire Mining Limited is the ultimate Australian parent entity and ultimate parent of the Group. Transactions
between these parties involved the provision of funding for operations. As at 30 June 2021 and before
impairment, amounts of $61,219,559 (2020: $58,861,726), $20,920,968 (2020: $20,907,766), $138,409 (2020:
$138,409), $1,296,755 (2020: $1,286,160), $22,287 (2020: $18,736) and $466,017 (2020: $450,279) were owed
by Khurgatai Khairkhan LLC, Ovoot Coking Coal Pte Ltd, Northern Railway Holdings LLC, Northern Railways
Pte Ltd, Northern Mongolian Railways Limited and Ekhgoviin Chuluu LLC to the parent entity, respectively. The
loans have been impaired.
- 45 -
- 46 -
Aspire Mining Limited
Aspire Mining Limited
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
NOTE 22: DIRECTORS AND EXECUTIVE DISCLOSURES
NOTE 24: PARENT ENTITY DISCLOSURES (continued)
The totals of remuneration paid to key management personnel of the Company during the year are as follows:
2021
$
830,469
5,205
67,033
902,707
2020
$
1,074,555
5,205
160,422
1,240,182
Financial performance
Operating loss for the year
Total comprehensive loss
Year ended
30 June 2021
$
(6,320,821)
(6,320,821)
Year ended
30 June 2020
$
(7,889,619)
(7,889,619)
Parent Company Capital Commitments and Contingent Liabilities
The parent entity currently has no capital commitments for the acquisition of property, plant and equipment.
See Note 18 for obligations of Aspire to issue securities.
NOTE 25: SUBSIDIARIES
The consolidated financial statements include the financial statements of Aspire Mining Limited and its below
subsidiaries.
% Equity Owned
Investment
Subsidiary Name
Khurgatai Khairkhan LLC
Ovoot Coal Mining LLC
Chilchig Gol LLC
Ovoot Coking Coal Pte Ltd
Northern Railways LLC
Northern Railways Holdings LLC
Northern Railways Pte Ltd
Northern Infrastructure Limited
Coalridge Limited
Ekhgoviin Chuluu LLC
Black Rock LLC
Urnuun Elbeg LLC
Country of incorporation
Mongolia
Mongolia
Mongolia
Singapore
Mongolia
Mongolia
Singapore
British Virgin Islands
British Virgin Islands
Mongolia
Mongolia
Mongolia
2021
100%
100%
100%
100%
80%
80%
80%
80%
100%
100%
90%
100%
2021
-
-
-
2020
2020
-
100%
-
100%
100%
-
100% $9,428,158 $9,428,158
-
$136,230
$1
$97,408
100% $1,541,390 $1,541,390
-
100%
-
90%
-
-
-
$136,230
$1
$97,408
80%
80%
80%
80%
-
-
-
*1. 20,000 options held in the Name of Russell Lynton Brown.
2. 4,020,000 options held in the name of Husif Nominees Pty Ltd ; Mr Lynton-Brown is a
Director and controlling shareholder.
Aspire Mining Limited is the ultimate Australian parent entity and ultimate parent of the Group. Transactions
between these parties involved the provision of funding for operations. As at 30 June 2021 and before
impairment, amounts of $61,219,559 (2020: $58,861,726), $20,920,968 (2020: $20,907,766), $138,409 (2020:
$138,409), $1,296,755 (2020: $1,286,160), $22,287 (2020: $18,736) and $466,017 (2020: $450,279) were owed
by Khurgatai Khairkhan LLC, Ovoot Coking Coal Pte Ltd, Northern Railway Holdings LLC, Northern Railways
Pte Ltd, Northern Mongolian Railways Limited and Ekhgoviin Chuluu LLC to the parent entity, respectively. The
loans have been impaired.
Short-term employee benefits
Post-employment benefits
Share-based payments
accordance with accounting standards.
Related Party Transactions
Share based payments is the gross accounting value of performance rights and options brought to account in
In 2021, Kingsland Kingsland Corporate Pty Ltd (formerly 2R’s Pty Ltd), a company associated with Mr David
Paull, was paid $15,150 for the services provided by David Paull beyond his NED Chair role (2020: Nil). In 2020,
MICC LLC, a Company related to Executive Director, Mr Achit-Erdene Darambazar, was paid financial advisory
fees of A$55,000 and an equity financing fee of A$418,923 (US$284,750).
NOTE 23: AUDITOR’S REMUNERATION
The auditor of Aspire Mining Limited is HLB Mann Judd.
Amounts received or due and receivable by HLB Mann Judd for:
An audit or review of the financial reports
Other services
The auditor of Khurgatai Khairkhan LLC, its direct subsidiaries and Northern Railways LLC is KPMG.
2021
$
50,460
-
50,460
2021
$
73,614
-
73,614
2021
$
29,863,351
6,615,577
36,478,928
156,022
156,022
36,322,906
150,026,408
-
(113,703,502)
36,322,906
2020
$
49,700
-
49,700
2020
$
75,548
-
75,548
2020
$
36,186,822
6,438,548
42,625,370
61,636
61,636
42,563,734
150,026,408
201,240
(107,663,914)
42,563,734
Amounts received or due and receivable by KPMG:
An audit or review of the financial reports
Other services
NOTE 24: PARENT ENTITY DISCLOSURES
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
- 47 -
Aspire Mining Limited
DIRECTORS’ DECLARATION
In the opinion of the Directors of Aspire Mining Limited (‘the Company’):
1.
The financial statements and notes of the Group are in accordance with the Corporations Act 2001
including:
a.
b.
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
complying with Accounting Standards and Corporations Regulations 2001.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
The financial statements and notes are in accordance with International Financial Standards issued by
the International Accounting Standards Board.
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.
2.
3.
4.
This declaration is signed in accordance with a resolution of the Board of Directors.
Achit-Erdene Darambazar
Managing Director
28 September 2021
- 48 - INDEPENDENT AUDITOR’S REPORT To the members of Aspire Mining Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Aspire Mining 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. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
- 47 -
Aspire Mining Limited
DIRECTORS’ DECLARATION
In the opinion of the Directors of Aspire Mining Limited (‘the Company’):
1.
The financial statements and notes of the Group are in accordance with the Corporations Act 2001
including:
a.
b.
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
complying with Accounting Standards and Corporations Regulations 2001.
2.
There are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable.
3.
The financial statements and notes are in accordance with International Financial Standards issued by
the International Accounting Standards Board.
4.
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.
Achit-Erdene Darambazar
Managing Director
28 September 2021
- 48 - INDEPENDENT AUDITOR’S REPORT To the members of Aspire Mining Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Aspire Mining 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. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.
- 49 - Key Audit Matter How our audit addressed the key audit matter Deferred exploration and evaluation expenditure Refer to Note 10 In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group capitalises acquisition costs of rights to explore as well as subsequent exploration and evaluation expenditure and applies the cost model after recognition. Our audit focussed on the Group’s assessment of the carrying amount of the capitalised exploration and evaluation asset. We considered this to be a key audit matter because this is one of the most significant assets of the Group. There is a risk that the capitalised expenditure no longer meets the recognition criteria of the standard. In addition, we considered it necessary to assess whether facts and circumstances existed to suggest that the carrying amount of the exploration and evaluation asset may exceed its recoverable amount. Our procedures included but were not limited to the following: • We obtained an understanding of the key processes associated with management’s review of the exploration and evaluation asset carrying values; • We verified a sample of the exploration additions; • We verified the write-off of capitalised exploration expenditure; • We considered the Directors’ assessment of potential indicators of impairment; • We obtained evidence that the Group has current rights to tenure of its areas of interest; • We examined the exploration budget for the year ending 30 June 2022 and discussed with management the nature of planned ongoing activities; and • We examined the disclosures made in the financial report. 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. - 50 - 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. - 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. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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. - 49 - Key Audit Matter How our audit addressed the key audit matter Deferred exploration and evaluation expenditure Refer to Note 10 In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group capitalises acquisition costs of rights to explore as well as subsequent exploration and evaluation expenditure and applies the cost model after recognition. Our audit focussed on the Group’s assessment of the carrying amount of the capitalised exploration and evaluation asset. We considered this to be a key audit matter because this is one of the most significant assets of the Group. There is a risk that the capitalised expenditure no longer meets the recognition criteria of the standard. In addition, we considered it necessary to assess whether facts and circumstances existed to suggest that the carrying amount of the exploration and evaluation asset may exceed its recoverable amount. Our procedures included but were not limited to the following: • We obtained an understanding of the key processes associated with management’s review of the exploration and evaluation asset carrying values; • We verified a sample of the exploration additions; • We verified the write-off of capitalised exploration expenditure; • We considered the Directors’ assessment of potential indicators of impairment; • We obtained evidence that the Group has current rights to tenure of its areas of interest; • We examined the exploration budget for the year ending 30 June 2022 and discussed with management the nature of planned ongoing activities; and • We examined the disclosures made in the financial report. 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. - 50 - 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. - 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. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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. - 51 - 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 Aspire Mining 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 B G McVeigh Chartered Accountants Partner Perth, Western Australia 28 September 2021 - 52 -
ADDITIONAL SHAREHOLDER INFORMATION
Additional information required pursuant to the ASX Listing Rules and not shown elsewhere in this report is
as follows. The information is current as at 12th October 2021.
1.
Substantial Shareholders
There are two substantial shareholders:
§ Mr Terenpuntsag Tserendamba, 266,376,470 shares or 52.47% on an undiluted basis
§ Noble Resources International Pte Ltd, 66,401,755 shares or 13.08% on an undiluted basis
2.
Number of holders in each class of equity securities and the voting rights attached
Ordinary Shares
There are 2,505 holders of ordinary shares. Each shareholder is entitled to one vote per share held. In accordance
with the Company’s Constitution, on a show of hands every member present in person or by proxy or attorney or
duly authorised representative has one vote. On a poll every member present in person or by proxy or attorney
or duly authorised representative has one vote for every fully paid ordinary share held.
3. Distribution schedule of the number of holders in each class of equity security
a) Fully Paid Ordinary Shares
Spread of Holdings
Holders
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 –
744
524
270
709
258
TOTAL ON REGISTER
2,505
Units
278,722
1,432,496
2,188,911
27,861,947
475,874,909
507,636,985
%
0.06%
0.28%
0.43%
5.49%
93.74%
100.00 %
b) There were no listed options on issue as at the date of this report.
c) There were no unlisted performance rights on issue as at the date of this report.
4. Marketable Parcel
There are 1,203 shareholders with less than a marketable parcel.
5.
Twenty largest holders of each class of quoted equity security
The names of the twenty largest registered holders of each class of security, the number of equity security each
holds and the percentage of capital each holds are as follows on the next page;
- 51 - 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 Aspire Mining 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 B G McVeigh Chartered Accountants Partner Perth, Western Australia 28 September 2021
- 53 -
ADDITIONAL SHAREHOLDER INFORMATION (continued)
Ordinary Shares Top 20 holders and percentage held
Holder Name
1 Mr Tserenpuntsag Tserendamba
2 Noble Resources International Pte Ltd
3 MICC LLC(i)
4 Spectral Investments Pty Ltd
5 HSBC Custody Nominees Australia Limited
6 China Tonghai Securities Ltd
7 Custodial Services Limited
8 Citicorp Nominees Pty Ltd
9 BNP Paribas Nominees Pty Ltd
Istabraq Pty Ltd
10 Mr Michael Frank Manford
11 Mr Stephen Ronald Hobson
12 BNP Paribas Noms Pty Ltd
13 2R’s Pty Ltd
14
15 Glover Superannuation Pty Ltd
16 Mr Peter Joseph McGuire
17 Sandwich Holdings Pty Ltd
18 Mentok Pty Ltd
19 Mr Joseph Warren
20 Mr Derek Palmer & Mrs Mary Margaret Palmer
Total
Notes
(i)
Held for and on behalf of Mr. Tserenpuntsag Tserendamba
Units
% of Issued
222,542,060
66,401,758
43,834,410
23,727,851
15,390,196
9,836,492
6,862,820
3,270,437
2,964,900
2,300,898
2,129,833
1,997,510
1,557,013
1,358,367
1,212,304
1,200,000
1,100,000
1,065,000
1,023,403
1,000,000
410,775,252
43.84%
13.08%
8.64%
4.67%
3.03%
1.94%
1.35%
0.64%
0.58%
0.45%
0.42%
0.39%
0.31%
0.27%
0.24%
0.24%
0.22%
0.21%
0.20%
0.20%
80.92%
- 54 -
ADDITIONAL SHAREHOLDER INFORMATION (continued)
6. Stock exchange on which the Company’s securities are quoted:
The Company’s listed equity securities are quoted on the Australian Stock Exchange.
7. Restricted Securities
There are no restricted securities.
8. Review of Operations
A review of operations is contained in the Annual Report and Directors’ Report within the Annual Financial Report.
9. Corporate Governance Statement
The Corporate Governance Statement for the year ending 30 June 2021 can be found on the company’s website at
http://www.aspiremininglimited.com.
10. Schedule of Tenements Mining & Exploration Licenses
The licenses registered in the name of Aspire Mining Limited or its 100% owned subsidiaries are set out in the
Operational Review in the Annual Report.
11. Schedule of Tenements Mining & Exploration Licenses
The licenses registered in the name of the Company or one of its subsidiaries are:
Tenement
Ovoot
MV017098
Nuurstei
MV-020941
Location
Mongolia
Mongolia
Attributable Equity
100%
90%