Aura Energy Limited
(ACN 115 927 681)
Annual Report
Year 30 June 2020
Corporate Directory
Directors
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
Executive Chairman
Non-Executive Director
Non-executive Director (appointed 6 January 2020)
Non-executive Director (appointed 8 May 2020)
Non-executive Director (resigned 18 November 2019)
Non-executive director (appointed 8 May 2020)
Non-Executive Director
Company Secretary
JM Madden
Registered office
Level 1, 34-36 Punt Road
Windsor Victoria Australia 3181
Telephone
Facsimile
61 3 9516 6500
61-3-9516 6565
Website
www.auraenergy.com.au
Share registry
Computershare Investor Services Pty Ltd
Level 2, Reserve Bank Building
45 St Georges Terrace
Perth WA Australia 6000
Telephone
Facsimile
1300 557 010
61-8-9323 2033
Nominated Advisor
SP Angel Corporate Finance LLP
35 Maddox Street
Mayfair London United Kingdom
Joint brokers
SP Angel Corporate Finance LLP
WH Ireland Limited
Auditor
Bentleys
Level 3, London House
216 St Georges Terrace
Perth WA Australia
Solicitors
Dentons Australia
Level 17, 585 Collins Street
Melbourne Victoria Australia
Chairman’s letter
Review of operations
Directors’ report
Remuneration report
Auditor’s independence statement
Consolidated statement of profit or loss
and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report
Additional information as required by Australian Securities Exchange
CONTENTS
1
2
7
14
20
21
22
23
24
25
68
69
75
CHAIRMAN’S LETTER
Dear Shareholder
The financial year ended 30 June 2020 has been an extraordinary difficult year.
Your board of directors have been subject to three s.249D shareholder requisitions for shareholder
meetings and one Constitution requisition for a shareholders meeting by a director.
The Company received a requisition for a shareholders meeting in February 2020 to replace the board of
directors was held on 21 May 2020 (the delay in holding this meeting was due to the restrictions on social
gatherings set by the National Cabinet) was unsuccessful.
In July 2019, the Company completed the Tiris project feasibility study, and, in October 2019, the
Company completed the Haggan project scoping study which included a preliminary assessment of project
economics. The continued stagnant uranium price undermined the Tiris project feasibility study and the
capacity of the Company to bring online a low capital, low operating cost in Mauritania. The full outcome
of the Haggan project scoping study has been impacted negatively by the application of INFO 214
Forward-looking Statement issued by ASIC which sets out minimum market capitalisation to capital cost of
an entity which must be satisfied before a full scoping study can be issued to the market. This
interpretation by ASIC of a requirement to consider financing of a project at a scoping study phase is at
odds with industry practice which regards scoping studies as a decision required by a project sponsor to
either continue to invest or abandon a mining project.
The Company commenced a process during the financial year to spin-off its gold assets in Mauritania. In
July 2020, the Company announced a proposed transaction with the principal shareholders of Chilean
Metals Inc. The transaction was subsequently restructured following discussions with the Toronto
Securities Exchange-Venture Exchange which has resulted in the same shareholder group putting forward
a new vehicle to take the gold assets forward, Archean Gold Inc. The transaction with Archean effectively
values the gold assets at C$9 million and therefore, at a significant premium to the costs incurred by the
Company in assembling very prospective ground in Mauritania. The goal of the Company and the investor
group behind Archean is to list Archean on the TSX-V by end of January 2021.
The closure by the Commonwealth of Australia of international borders in March this year. Along with the
s.249 requisitions, has negatively impacted the capacity of the Company to raise significant new funds as
well as advance exploration and the litigation process in Sweden. As a result, the Company’s projects
have been largely on hold since February 2020 with expenditure limited to environment obligations.
Moreover, the Company implemented a number of cost savings measures with a reduction in the number
of consultants contracted to the Company, contract-employees terms and conditions in Australia,
Mauritania and Sweden and terms and condition of my own employment. Non-executive directors have
deferred emoluments and outstanding obligations to consultants and contract employees were
extinguished by way of the issue of shares.
With the northern hemisphere entering its winter the Company remains cautious on how best to advance
its projects in these times of Covid-19 and accordingly, believes that the focus on advancing and listing its
gold assets provides the best short-term opportunity until mid-2021.
Your board of directors is committed to ensuring that your Company holds its tenements in good standing
and remains a going concern.
Yours faithfully
PD Reeve
Executive Chairman
1 November 2020
1 | P a g e
REVIEW OF ACTIVITIES
Tiris project feasibility study
On 26 July 2019, the Company announced the outcomes from the Tiris project feasibility
Mincore estimated the capital cost of development for the Tiris Project at US$62.9 million. This estimate
includes the scope of facilities and services required to design, purchase and construct the entire project,
up to practical completion and handover to operations.
Table 1
Tiris Project Capital Cost Summary
Description
Mining (contract mining assumed)
Process Plant
Infrastructure
EPCM
Owner's cost
Contingency
Total Capital Cost
Cost (U$M)
0.00
25.01
17.88
4.45
10.02
5.57
62.94
An exhaustive in-country engineering review was conducted including all infrastructure needs, particularly
the road infrastructure to site. The largest section of the road being the 680-kilometre road from Zouerate
to Tiris only required 2 kilometres of substantial roadworks.
Significantly, approximately 85% of the capital cost for the Tiris project has been sourced from direct
supplier quotes. This basis of estimation approach provides confident that the capital cost estimate for
Tiris project is robust.
The feasibility study assumes mining is performed by contractors and therefore, no capital cost has been
included for mobile equipment. The estimate for infrastructure includes the cost of mining facilities such as
workshops. There is no pre-strip required and mining costs are based direct supplier quotes from a
number of mining contractors with all mobile equipment costs accounted for in operating costs.
Estimated operating costs are set out in Table 2.
Table 2
Tiris Project Operating Cost Summary
Category
Contract Mining
Labour
Power
Reagents
Maintenance
G&A
Total cash cost (C1)
All In Sustaining Cost (AISC)
US$/lb U3O8
7.16
3.68
4.57
3.95
2.28
3.80
25.43
29.81
The AISC is inclusive of royalties, life of mine sustaining capital, insurances and product transport. The
operating costs per pound represent the average annualised cost per pound over the life of the mine.
2 | P a g e
Resource
Production
Table 3
Project Outcomes Summary
Key Metric
Life of Mine (LOM)
Beneficiation Plant ore throughput (Design)
Process Plant ore throughput
ROM uranium grade (LOM)
Uranium Metallurgical Recovery
Average Annual uranium production
LOM uranium production
Table 4
Financial Outcomes Summary
REVIEW OF ACTIVITIES
DFS
15 Years
1.25 Mtpa
0.16 Mtpa
364 ppm U3O8
86.1%
823,000 lb U3O8
12.35 Mlb U3O8
Capital
Operations
Project
Financials
Key Metric
Mining, plant, infrastructure and indirect costs
Contingency
Total Capital
Exchange rate (USD:AUD)
C1 Cash operating cost ($/lb U3O8)
AISC operating cost ($/lb U3O8)
Assumed price (baseline) ($/lb U3O8)
Project NPV8 (incl Royalties and tax)
Project IRR (incl Royalties and tax)
Cashflow – Total (after-tax)
Cashflow – Annual (after-tax)
Project NPV8 (incl Royalties, pre-tax)
Project Cashflow – Total (pre-tax)
Project Cashflow – Annual (pre-tax)
Project payback from start-up
US$
57.37 M
5.57 M
62.94 M
25.43
29.81
60
89.9 M
289 M
19.2 M pa
114 M
351 M
23.4 M pa
0.65
26%
A$
88.26 M
8.57 M
96.83 M
36.33
42.56
86
128 M
413 M
27.4 M pa
163 M
501 M
33 M pa
3.25 years
The table below outlines the project financials at both US$60/lb U3O8 and US$50/lb U3O8.
Table 5
Project Financials
Uranium Price
US$60/lb U3O8
US$50/lb U3O8
US$351 M
A$501 M
US$23.4 M
A$33.4 M
US$289 M
A$412.9 M
US$19.2 M
A$27.4 M
US$89.9 M
A$128.4 M
US$261 M
A$373 M
US$16.3 M
A$23.3 M
US$204 M
A$291.4 M
US$13.6 M
A$19.4 M
US$44.9 M
A$64.1 M
Project cashflow total (pre-tax)
Project cashflow – per annum (pre-tax)
Project cashflow total (after-tax)
Project cashflow – per annum (after-tax)
NPV8 (including royalties, after-tax)
3 | P a g e
REVIEW OF ACTIVITIES
Water programme
Four water sources have been identified by hydrological consultants. The strategy of the Company has
been to search for water closest to the development activities - the Oued El Foule Depression, an
extensive drainage system, the central axis of which is less than 20 km from the Tiris plant site.
The Company has undertaken a significant program of water study and review which identified a number
of major structures likely to host water and included a program of ground geophysics over 24 structural
targets within 50 km of the proposed plant. 15 of the most promising targets have been selected for drilling
and testing is underway.
On one of the structures identified by the Company, drilling successfully located water in two bores. Of
four holes drilled in the area, two successfully located good volumes of water, with one producing 15,000
litres per hour. The 50% strike rate in drilling bodes well for the location of additional water sources in the
same geology and indicates a strong likelihood that the current drilling program will locate additional water
supply for the relatively low water requirement of the Tiris project.
The water testing and development program will continue for a period of time beyond the completion of the
DFS and during construction.
Export Credit Agency funding
Export Credit Agency (ECA) financing continues to be our main funding focus for Tiris and then later for
the Häggån project. Through our advisors GKB Ventures and SD Capital Advisory, initial approaches to
the main ECA’s have commenced for the Tiris Project. Initial reactions from the ECA’s have been positive
with many highlighting an appetite for well-structured projects in Mauritania. Aura has maintained a flexible
capital sourcing approach, and this has improved the interest from ECA’s.
Initial feedback indicates that a depth of appetite exists for the project size the Company is contemplating
for the Tiris Uranium Project. ECA support will afford Aura long term, low cost financing on terms more
attractive than those available in the commercial bank debt market. Several critical path steps still exist
before selecting and securing the best ECA package, however, the completion of the feasibility study as
part of this process, will assist with the early positive signals from financiers.
Reserve Estimate
The Ore Reserves estimate was generated by Mining Plus. The overall project financial model was prepared
by the Company using inputs from the mining schedule physicals and the cost model. Detailed processing,
tailings disposal, power, water, camp infrastructure and logistics, and other costs were also developed as
part of the Feasibility Study. Mining Plus reviewed the cash flow model with Aura to ensure that the project
has a positive cash flow outcome, and this has been confirmed.
The declared Ore Reserve, at a 175 ppm U3O8 cut off is shown in Table 6.
Table 6
Ore Reserves
Mt
Lazare North
0.7
4.4
Lazare South
1.5
0.7
Hippolyte
1.9
1.7
Total
4.1
6.8
10.9
U3O8 (ppm)
U3O8 (Mlb)
354
332
342
340
331
334
339
333
336
0.6
3.2
1.1
0.5
1.4
1.3
3.1
5.0
8.1
Description
Proved
Probable
Proved
Probable
Proved
Probable
Proved
Probable
Total
4 | P a g e
REVIEW OF ACTIVITIES
The Ore Reserve was generated from the Mineral Resource Estimate produced by H&S Consultants
(Sydney) with the appropriate modifying factors to apply for mining dilution. This Resource model was used
in an open pit optimisation process to produce a range of pit areas using operating costs and other inputs
derived from previous studies. Mining costs were built up from estimates derived from equipment supplier
and mining contractor submissions and applied to a detailed mine schedule.
The Ore Reserve is based on information compiled by the following:
• Revenue prices, based on historical averages and forward estimates, based on Offtake Agreement
with Curzon Resources Limited provided by the Company.
• Processing recoveries based on the geometallurgical model developed by the Company.
• Mineral Resource estimate, H&S Consultants, 1 May 2018.
• Pit optimisation and mine design completed by Mining Plus
• Capital costs, Mining Plus, Mincore, Simulus Engineers, Adelaide Control Engineers (ACE) and the
Company
• Operating costs, Mining Plus, Mincore, Simulus Engineers, ACE and the Company
Note
The Company released to the ASX the Tiris project feasibility study on 26 July 2019. The Company
believes there has been no material change to forecast capital and operating costs and forecast
production rates have occurred since the date of release of the Tiris project feasibility study. .
Haggan vanadium project
The Company completed during the financial year with a new Global Resource of 2 billion tonnes at an
average grade of 0.3% V2O5, containing 13.3 billion lbs V2O5, at a 0.2% V2O5 cut-off, which includes 320
million lbs V2O5 at 0.35% V2O5 as Indicated Resource, and 13.0 billion lbs V2O5 at 0.3% V2O5 as Inferred
Resource. (Refer Table 1)
Importantly, the infill drilling and modelling work has confirmed 42 million tonnes at 0.35% V2O5 at 0.2%
V2O5 cut-off as Indicated Resource in a coherent near-surface zone.
Häggån is a large poly-metallic deposit containing economically significant levels of V (vanadium), Ni
(nickel), Zn (zinc), Mo (molybdenum) and other metals. Resource estimates have previously been
conducted and reported on the Häggån Project in 2010, 2011, 2012 and 2018 and since then additional
infill drilling has been carried out.
In summary, the new Resource Estimate at Häggån, at a range of V2O5 cut-offs, is set out below.
Table 7
2019 Indicated & Inferred Resource
5 | P a g e
REVIEW OF ACTIVITIES
At a higher cut-off grade of 0.4% V2O5, the resource contains approximately 113 million tonnes at an
average grade of 0.43% V2O5 containing 1.1 billion lbs of V2O5 in Inferred Resources, and 11 million
tonnes at an average grade of 0.44% V2O5 containing 101 million lbs V2O5.in Indicated Resource.
An important outcome from this global resource, is Indicated Resource is depicted as a coherent zone of
mineralisation of 42 million tonnes at +0.35% vanadium pentoxide commencing at surface and extending
to +100 metres below surface.
This is referred to as the Northwest High-Grade zone.
The Resource Estimate is based on 16,500m of diamond drilling in 91 drillholes. The Indicated Resource
is based on 3,530m in 25 diamond drillholes.
The high-grade V2O5 zone defined as Indicated Resource is open in all horizontal directions. More drilling
will be required to define the limits of the high-grade resource.
The Company completed a scoping study; however, the market capitalisation of the Company versus the
capital cost has prevented the disclosure of the economics underlying the Haggan project.
Note
There is a low level of geological confidence associated with inferred mineral resource and there is
no certainty that further exploration work will result in the determination of indicated measured
resource or that the production target will be realised.
Tasiast South project
On 3 April 2019 the Company was granted, through its Mauritanian controlled entity, TIMCO sarl, two
exploration tenements covering of 175km2 in an underexplored greenstone belt The areas lie along strike
from the giant 20 million ounce Tasiast gold mine operated by Kinross Gold Corporation and Tijirit gold
project held by Algold Inc. The Company believes that these tenements, with the single large Tasiast gold
mine along strike, and strong base and battery metal results, represent some of the best under-explored
greenstone belt targets in the world.
The prospects cover portions of the Tasiast and Tijirit greenstone belts which have been previously
explored by another entity, but it was forced to suspend activities in the mineral industry downturn in 2012,
despite having located zones of significant gold mineralisation. Drilling by the previous holder of the
tenements was shallow with some limited deeper reverse circulation (RC) drilling testing below air-core
drilling. A small number of RC holes have provided very good results; however. the density of drilling is
very low averaging approximately one hole per 20 km2.
On 11 June 2019, the Company extended its footprint in this greenstone belt by entering into a Farm-in
and Joint Venture Agreement with Nomads Mining Company sarl.
The formal agreement was executed on 26 June 2019.
Under the agreement the Group has a right to earn 70% of the equity in Nomads Mining Company sarl of
Mauritania by funding US$1,000,000 of exploration expenditure. The exploration tenement, Nderik, covers
approximately 50 km2 of Archean greenstones in the Tasiast greenstone belt. The Nomads’ Nderik
tenement adjoins and is along strike from the Group’s Touerig Taet exploration tenement which covers
approximately 30 km in strike length of the Tasiast greenstones.
The Company completed its Entry Fee obligations on 9 September 2020 as set out in the Farm-in and
Joint Venture Agreement with Nomads Mining Company sarl.
The Company did not undertake any exploration effort during the financial year and since the end of the
financial year the Company has announced a corporate transaction with Archean Gold Inc to secure
funding by way of listing the gold assets onto the TXS-V.
6 | P a g e
DIRECTORS’ REPORT
The directors present their report, together with the financial statements of Aura Energy Limited (ACN 115
927 681) (hereafter referred to as the “Company”), for the financial year ended 30 June 2020.
Principal Activities
The principal activities of the Company during the financial year were exploration and evaluation of
uranium, vanadium and gold and base metals in Mauritania and Sweden. There was no significant change
in the nature of these activities during the year.
Operating Result
The Group recorded a net loss after tax of $5,875,997 the year ended 30 June 2020 (the net loss after tax
for the previous financial year was A$2,896,262). The increase in the net loss after tax was primarily due
to:
-
-
the recognition of impairment on the Oum Ferkik exploration permit which remains subject to
negotiation of an exclusivity agreement with the Islamic Republic of Mauritania and the
relinquishment of the Aguelet exploration permit; and
application of AASB 9 Financial instruments and the accounting for the accelerated conversion of
convertible notes in fully paid ordinary shares, higher consulting costs (particularly legal arising
from shareholder meetings and litigation against Pre-emptive Trading Pty Ltd and share registry
and listing costs associated with five general meetings of shareholders (including three
requisitioned by shareholders and a director).
- Partly offsetting the increase in net loss after tax were lower share-based payments recorded through the
application of AASB 2 Share-based Payments and lower employee costs
On 30 September 2020, the Group released a preliminary result for the financial year ended 30 June 2020.
The Appendix 4E disclosed a net after tax loss of $3,223,109. The difference between the audited net
loss after tax and the preliminary result is set out below:
Net loss after tax as per Appendix 4E
Adjustments
Impairment of Mauritiania uranium assets following review of non-
current assets by board of directors
Share-based payments charge following review of probability of
milestone award criteria
Net loss after tax as per this Annual Report
State of affairs of the Company
$
(3,223,109)
(2,616,725)
(36,163)
(5,875,997)
No significant changes in the Company’s state of affairs occurred during the financial year.
Dividends
No dividends were declared and paid during the year.
Events After Balance Date
On 27 July 2020, the Group announced a proposed corporate transaction to separately fund its Mauritanian
gold assets. The original parties behind the transaction deal, the TSX-listed Chilean Metals Inc, substituted
the vehicle to undertake the transaction and as a result a privately-owned vehicle Archean Gold Inc, will
7 | P a g e
DIRECTORS’ REPORT
undertake an Initial Public Offering (IPO) on the TSX with the Aura gold assets acquired on completion of
the IPO.
.
The key items that have been completed are as follows:
•
•
•
•
•
•
Aura Energy has recently completed its final US$100,000 payment to Nomads Mining Company
sarl for its additional Joint Venture property
Archean Gold has successfully completed due diligence on Aura’s Tasiast South Gold Project
Terry Lynch, CEO of Chilean Metals, has confirmed his role as Chairman of the new gold vehicle,
Archean Gold
A 43-101 Technical report has commenced, and a Qualified Person engaged with a site visit to
Mauritania to be undertaken shortly. The report will be ready prior to IPO.
Mackie Research Capital Corporation has been appointed to conduct the Archean Gold IPO on the
TSX
An initial C$500,000 of seed investment has now been committed pre-IPO, with those investors
agreeing to follow their investment into the IPO
The transaction envisages Aura progressively vending its Mauritanian gold and base metal licences into
Archean Gold for various staged payments. Archean Gold will receive payments totalling C$4.5 million
before October 2021.
At the completion of that payment schedule transaction, Aura Energy will own 50% of Archean Gold.
On 14 August 2020, the Company held an extraordinary general meeting of shareholders following the
receipt on 23 June 2020 of the second requisition by ASEAN Deep Value Fund for s.249D shareholders
meeting/
Immediately prior to the meeting, the Company lodged with the Supreme Court of Victoria a request for
specific orders to be made with the Company alleging that ASEAN and its two principals, Messrs DE Roes
and DP O’Neil; Pre-emptive Trading Pty Ltd and its principal, Mr JL Bennett, a non-executive director of
the Company; Mr Florian Hoertlehner; and Mr Axel Sartingen and an entity controlled by Mr Sartingen,
Milaco GmbH, held a relevant interest in each other’s shares in the Company and accordingly, held
greater than 19.9% of the total number of shares on issue.
The Orders sought by the Company were set aside by the Supreme Court.
At the general meeting, the Chairman of the Company instructed Computershare Investor Services Pty Ltd
to reject the votes cast by Mr Sartingen and Milaco GmbH and as a result all the resolutions put to
shareholders by ASEAN at the general meeting were not carried.
On 28 August 2020, the Group arranged a short-term loan funding of $100,000 with Lind Global Macro
Fund LP for general corporate purposes. Under the terms and conditions of the loan facility, the Company
is required to repay, in cash, $127,000 on 31 December 2020 The terms are listed below, and the funding
does not include any securities.
The parties have extended the charge and security interest under the Convertible Security Facility
Agreement and Follow-on Security Facility Agreement, dated 30 April 2019, to the short-term loan.
On 31 August 2020, Mr Axel Sartingen lodged with the Australian Securities Exchange a Substantial
Shareholder Notice which disclosed that he held more than 5% of the total number of shares on issue in
excess of 5% from around March 2020 and therefore, acknowledged that he had breached the
Corporations Act 2001 (Cth).
On 31 August 2020, The Company entered into a Convertible Securities Agreement with L1 Capital Global
Opportunities Master Fund for $250,000 which will be used for general corporate purposes.
8 | P a g e
DIRECTORS’ REPORT
Under the terms and conditions of the Convertible Securities Agreement, the Company is required to
secure shareholder approval for the agreement.
The key terms of the Convertible Securities Agreement involve the issue of 250,000 convertible securities
at a face value of $1.25 per convertible security with maturity six months after the date of issue of the
Convertible Securities.
The Convertible Securities are convertible into fully paid Depositary Interest at a price of 0.4 pence per
Depositary Interest or the Australian dollar equivalent should the Investor wish to be issued ordinary
shares.
The Convertible Securities Agreement incurs a commitment of 3% of the proceeds from issue of the
Convertible Securities as well as two series of options. Series A Options represent 25,000,000 options
over ordinary shares with an exercise price equal to the Conversion Price converted into AUD using the
Exchange Rate on the day immediately prior to the Execution Date and rounded down to the nearest
($0.001) with an expiry date of 3 years from the date of issue. Series B Options represent 25,000,000
Options with an exercise price equal to the closing VWAP on the London Stock Exchange on the Actual
Trading Day immediately prior to the date Shareholder Approval is obtained converted into AUD using the
Exchange Rate on the same day and rounded down to the nearest ($0.001) and an expiry date of 3 years
from the date of issue.
Information on directors
PD Reeve
Executive Chairman and Managing Director
Qualifications
Bachelor of Applied Sciences.
Experience
Board member since 13 July 2013 with over 30 years’ experience positions with
Rio Tinto, Billiton Australia and Newcrest Mining as well as experience as a
Resource Fund Manager and Resources Corporate Finance Director at J B
Were and Son.
Interest in shares and
options
Directorships held in
other listed entities in last
3 years
Dr R Beeson
More recently Peter was Chief Executive Officer of Ivanhoe Australia Ltd.
44,718,304 ordinary shares directly in Aura Energy Limited and 3,094,061
indirectly in Aura Energy Limited.
Round Oak Minerals Pty ltd (formerly CopperChem Limited) from 2013
Director (Non-executive)
Qualifications
Experience
Bachelor of Science with Honours; PhD; Member of the Australian Institute
of Geoscientists
Board member since 31 March 2006.
Interest in shares and
options
Directorships held in
other listed entities in last
3 years
Geologist with over 35 years of global experience in uranium and other
commodity management, exploration and development.
3,129,071 ordinary shares directly in Aura Energy Limited and 2,820,366
ordinary shares and 172,667 options over ordinary shares indirectly in Aura
Energy Limited.
Managing Director of Drake Resources Limited from November 2004 until
31 January 2015.
Non- executive director or Drake Resources Limited until 10 March 2017, and
Non-executive Director of Cohiba Resources Limited until 28 February 2020
JL Bennett
Qualifications
Experience
9 | P a g e
No other directorships in the past three years.
Director (Non-executive)
Registered Nurse AHPRA
A board member since 6 January 2020, Mr Bennett has over 30 years’
DIRECTORS’ REPORT
experience in health care in South Australia.
76,600,000 ordinary shares indirectly in Aura Energy Limited.
Interest in shares and
options
Directorships held in
other listed entities in last
3 years
None
RC Craigie
Qualifications
Experience
Bachelor of Science with Honours, (Melbourne), Master Applied Science
(Melbourne) F Fin GAICD
A board member since 8 May 2020, Mr Craigie worked for 16 year with the
Shell Group and its metals business, Billiton, spanning senior technical,
planning, finance, and strategy roles. After leaving the Shell Group, Mr
Craigie worked as an equity analyst for more than 20 years with Baillieu
Holst, FW Holst & Co and ANZ McCaughan and ANZ Securities. Mr
Craigie has also been a part-time lecturer with the Securities Institute of
Australia now part of FINSIA) in Mining Investment Analysis, plus a SIA
task force member developing the Advanced Mining Investment Analysis
course.
Mr Craigie is CFO and Company Secretary for Circa Group Ltd in
Melbourne.
Interest in shares and
options
Directorships held in
None
other listed entities in last
3 years
None
PD Heber
Qualifications
Fellow of The Chartered Institute for Securities & Investment in London
Experience
(FCSI) and a Certified Key Individual (KI) with the FSCA in Johannesburg
A board member since 8 May 2020, Mr Heber has more than 30 years of
experience as an investment manager and stockbroker in global stock
markets, following three years in the oil industry. Mr Heber has managed
client funds at SG Hambro, National Westminster Bank, WI Carr and
bespoke boutique, Savoy Investment Management PLC.
Mr Heber is currently working with Valere Consulting SA in Zurich and VC
Partners in Lichtenstein, with a broad Pan-African and UK focus clientele.
Interest in shares and
options
Directorships held in
None
other listed entities in last
3 years
None
JC Perkins
Qualifications
Experience
10 | P a g e
Director (Non-executive)
Master of Science (Imperial College of Science and Technology); Associate of
the Camborne School of Metalliferous Mining (Honours); Fellow of the AusIMM;
and GAICD.
Board member since 7 June 2011.
Mr. Perkins has over 50 years’ experience in operations and management with
major companies in the international minerals industry. He was Manager of
Mining and Technology (Australia) for AngloGold Ashanti Ltd, until 2006. His
career includes operating and management roles on the Zambian Copperbelt,
leading the mineral processing at Shell Research in the Netherlands before
DIRECTORS’ REPORT
returning to corporate management in Australia.
He was Chairman of Parker Centre Ltd for Hydrometallurgy from 2006 to 2012
and previously a director of the CRC Mining and the Australian Centre for
Mining Environmental Research.
3,799,490 ordinary shares and 1,072,398 options over ordinary shares
indirectly in Aura Energy Limited.
No other directorships held in other listed entities.
Interest in shares and
options
Directorships held in
other listed entities in last
3 years
Meetings of directors
During the financial year, the board of directors held 11 meetings (including committee meetings of
directors) with the remainder of meetings conducted by way of written resolution. Attendances by each
director during the year were as follows:
Directors
Meetings
Committee Meetings
Audit & Risk
Committee
Meetings
Remuneration
Committee
Meetings
No
Attended
No
Attended
No
Attended
12
12
5
1
2
1
12
12
12
2
1
2
1
12
-
2
1
-
2
-
2
-
2
1
-
1
-
2
-
1
-
-
-
-
1
-
1
-
-
-
-
1
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
The board of directors met without Mr JL Bennett on 18 March 2020, 25 March 2020 and 7 May 2020 as
the matters discussed related to a directors requestioned meeting brought by Mr JL Bennett against his
fellow board of directors as well as litigation issues brough by the Company against Mr JL Bennett,
Non-Audit Services
Bentleys, the external auditor for the Group, provided the parent entity, Aura Energy Limited, with taxation
services during the financial year totalling $1,600 (2019: $3,200). Details of remuneration paid to the auditor
can be found within the financial statements at Note 32 Auditor’s remuneration.
The directors are satisfied that the provision of non-audit services during the year by Bentleys (or by another
person or firm on Bentley’s behalf) is compatible with the general standard of independence for auditors
imposed by the Corporations Act 2001 (Cth).
Indemnifying officers or auditor
During or since the end of the financial year the Group has given an indemnity or entered into an agreement
to indemnify, or paid or agreed to pay insurance premiums as follows:
•
•
The Group has entered into agreements to indemnify all directors and provide access to documents,
against any liability arising from a claim brought by a third party against the Company. The agreement
provides for the Company to pay all damages and costs which may be awarded against the directors.
The Group has paid premiums to insure each of the directors against liabilities for costs and expenses
incurred by them in defending any legal proceedings arising out of their conduct while acting in the
capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the
11 | P a g e
DIRECTORS’ REPORT
Company. The amount of the premium was $39,844 (2019: $41,140).
No indemnity has been paid to auditors of the Group
Environmental regulations
The Company is commencing exploration and evaluation activities in Mauritania and Sweden. Both countries
have environmental regulation for the conduct of exploration activities. The Company has complied with these
environmental regulations in the conduct of all field activities.
The directors have considered the enacted National Greenhouse and Energy Reporting Act 2007 (the NGER
Act) which introduced a single national reporting framework for the reporting and dissemination of information
about the greenhouse gas emissions, greenhouse gas projects, and energy use and production of
corporations. At the current stage of development, the directors have determined that the NGER Act has no
effect on the Company for the current, nor subsequent, financial year. The directors will reassess this position
as and when the need arises
Options
On 21 July 2019 (see ASX Announcement, dated 21 July 2019), the Group issued 15,430,919 loyalty
options to shareholders that subscribed to the rights issue (see ASX Announcement 21 June 2019). The
loyalty options expire on 21 July 2020 and are exercisable at 2.2 cents per option over ordinary share.
The loyalty options were issued at 0.5 cents per option over ordinary share and raised $77,154.
financial year and there were no options outstanding at the date of this report.
At as 30 June 2020, the unissued ordinary shares of the Company under options (listed and unlisted) are
as follows:
Grant date
Expiry date
Exercise
Price
Option
Number
30 April 2019
23 June 2019
23 June 2019
30 September 2019
18 November 2019
30 April 2022
18 July 2020
31 August 2021
31 July 2020
18 November 2022
$0.0160
$0.0220
$0.0220
$0.0220
$0.0754
62,500,000
15,430,919
11,604,161
19,544,508
20,000,000
129,079,588
Pursuant to the Share Placements on 14 January 2020 and 18 March 2020, the Company agreed to issue
subscribers options over ordinary shares on a one option for every two shares subscribed in these
placements. The options were to be issued subject to shareholder approval which as at the date of this
report the options over ordinary shares have not been issued to the subscribers. In total, the Company is
required to issue 77,708,332 options over ordinary shares with an exercise price of 0.8 cents per option
over ordinary share with an expiry date being 24 months from the date of issue.
Pursuant to the Share Placement on 8 May 2020, the Company agreed to issue subscribers options over
ordinary shares on a one option for every two shares subscribed in these placements. The options were
to be issued subject to shareholder approval which as at the date of this report the options over ordinary
shares have not been issued to the subscribers. In total, the Company is required to issue 60,000,000
options over ordinary shares with an exercise price of 0.8 cents per option over ordinary share with an
expiry date being 24 months from the date of issue.
No person entitled to exercise an option over ordinary shares has or has any rights by virtue of the option
over ordinary shares to participate in any share issue of any other body corporate.
Proceedings on behalf of the Group
The Company has brough an action against Pre-emptive Trading Pty Ltd and its principal Mr JL Bennett
for the recovery of $456,000 in monies due to the Company for a Subscription Deed executed by Mr JL
12 | P a g e
DIRECTORS’ REPORT
Bennett for and on behalf of PET. The Acceptance represented an irrevocable acceptance to subscribe to
shares in the Company pursuant to a Share Placement, dated 5 February 2019.
Since balance date, the Company has petitioned the court that ASEAN Deep Value Fund and its principals
Mr DP O’Neil and Mr David Roes; Pre-emptive Trading Pty Ltd and Mr JL Bennett; Mr Florian Hoertlehner;
and Mr Axel Sartingen and an entity controlled by Mr Axel Sartingen, Milaco GmbH hold a relevant interest
in each other’s shares.
Mr Sartingen has acknowledged to the Courts that he has breached the Corporation Act 2001 (Cth)
through his holding in the Company exceeding some 5% of the total number of shares on issue since
March 2020. Mr Sartingen submitted a Substantial Shareholder Notice on 30 August 2020 confirming his
holding through various nominee entities.
The Company was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act
2001 is set out on page 20.
13 | P a g e
REMUNERATION REPORT
Remuneration report (audited)
Remuneration policy
The remuneration policy of the Group has been designed to align director and management objectives with
shareholder and business objectives by providing a fixed remuneration component, and offering specific long-
term incentives based on key performance areas. The board of directors believes the remuneration policy to
be appropriate and effective in its ability to attract and retain the best management and directors to run and
manage the Group, as well as create goal congruence between directors, executives and shareholders.
The policy of the board of directors for determining the nature and amount of remuneration for board members
and senior executives of the Group is described in the following paragraphs.
The remuneration policy of the Group sets the terms and conditions for executive directors and other senior
executives. Due to the rapidly changing circumstances of the Group in recent years, the policy is reviewed
annually by the board of directors with the purpose of maintaining alignment of the board and management
with the Group’s strategic objectives. Management is also entitled to participate in employee share and option
arrangements. All executives receive a base salary which takes into account such factors as length of service
and experience, superannuation and share based incentive such as options. The board of directors review
executive packages annually by reference to the performance of the Group, individual executives and relevant
comparable remuneration data from similar listed companies and appropriate industry sectors. Independent
expert advice is sought as required
The total amount of non-executive directors’ remuneration is proposed by the board of directors from time to
time at the Annual General Meeting and is subject to formal approval by shareholders. Within this limit, the
board of directors presently remunerates non-executive directors at around the average of those obtained from
relevant comparable data from similar listed companies and appropriate industry sectors The board of
directors determines remuneration to individual non-executive directors, working within the limit set by
shareholders, and taking into account any special duties or accountability. Payments to non-executive directors
are not linked to Company performance but in order to align their interest with those of shareholders, non-
executive directors are encouraged to hold shares in Aura Energy Limited.
Executives and non-executive directors have received a superannuation guarantee contribution as required by
law, which increased to 9.5% on 1 July 2014, but do not receive any other retirement benefits.
All remuneration paid to non-executive directors and executives is valued at the cost to the Company and is
expensed. Options over ordinary shares granted to directors and employees are valued using the Black-
Scholes methodology. Details of directors’ and executives’ interests in options as at 30 June 2020 are
provided in the Remuneration Report of the financial statements.
The Chairman became Executive Chairman and Managing Director of the Company with effect on 1 January
2015 and accordingly, is a fulltime employee. The Executive Chairman and Managing Director had agreed to
settle 20% of his salary by way of fully paid ordinary shares in the Company. On 2 November 2017, the above
arrangement was varied by the Company and the Executive Chairman and Managing Director to convert the
share-based remuneration to a cash-based remuneration.
Under clause 14.7 of the Constitution of the Company, shareholders approved at the annual general meeting
on 30 November 2017 the total aggregate amount fixed sum per annum to be paid to non- executive directors
increase from $200,000 to $300,000.
At the annual general meeting on 18 November 2019, the Company incurred its first “strike” for its
Remuneration Report with 62.8% of shareholders who cast votes either by proxy or in person voting
against the Remuneration Report.
14 | P a g e
Remuneration details for the financial years ended 30 June 2020 and 2019
Group KMP
Short-term benefits
Post-
Employment
Benefits
Long-term
Benefits
Share-based payments
Total
% S-BP
Salary/Fees/L
eave
Profit share/
Bonuses
Non-monetary
Other
Super-
annuation
Other
Equity
Options/
Performance
Shares
REMUNERATION REPORT
337,416
40,000
19,180
5,810
15,450
6,360
40,000
51,900
516,116
425,000
40,000
40,000
40,000
151,300
696,300
For Financial Year Ended 30 June 2020
-
-
-
-
-
-
-
95,500
95,500
-
-
-
-
-
-
-
-
-
25,000
3,800
1,820
550
1,470
-
3,800
-
36,440
For Financial Year Ended 30 June 2019
-
-
-
-
-
-
-
-
-
-
-
-
25,000
3,800
3,800
3,800
-
36,400
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
132,129
-
-
-
-
-
33,054
494,545
43,800
21,000
6,360
16,920
6,360
43,800
180,454
26.4%
-
-
-
-
-
-
18.3%
165,183
813,239
20.3%
362,832
-
-
-
56,000
812,832
43,800
43,800
43,800
207,300
44.6%
-
-
-
27.0%
418,832
1,151,532
36.4%
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
JM Madden
PD Reeve
R Beeson
BF Fraser
JC Perkins
JM Madden
15 | P a g e
REMUNERATION REPORT
Service Agreements
The Executive Chairman and Managing Director, Peter Reeve, is employed under a contract of employment, effective
1 January 2015.
The employment deed stipulates a four weeks’ resignation period. The Company may terminate the employment
contract without cause by providing four weeks’ written notice, or making payment in lieu of notice based on the
individual’s annual salary component.
If employment is terminated other than for serious misconduct, and the employee is not then otherwise in default of this
contract and his employment, the Managing Director will, in connection with his retirement from the office, receive in
addition to the required four weeks’ notice period, three months’ salary. An additional benefit may be paid in the amount
of one month for every year of service. This is subject to the provisions of the Corporations Act 2001 (Cth), which may
require shareholder approval.
Mr JM Madden does not have a contract with Aura Energy Limited and is employed on a limited basis for 3-4 days
per week and is paid a daily rate; however, during the course of 2019 and 2020 Mr Madden spent approximately 12
weeks in Mauritania and therefore, worked effectively on a full time basis during the period in Mauritania.
Share-based compensation
a. Incentive Option Scheme
Options are granted under the Aura Energy Limited Incentive Option Scheme. All staff who have been
continuously employed by the Company for a period of at least one year are eligible to participate in the plan.
Options are granted under the plan for no consideration.
b. Director and Key Management Personnel Options
At the general annual meeting of shareholders on 30 November 2017, shareholders approved resolutions to
cancel 35,000,000 options over ordinary shares previously granted to the Executive Chairman and Managing
Director and to award the Executive Chairman and Managing director 35,000,000 performance rights for zero
consideration with tranche 1 of 17,500,000 performance rights vesting on 30 November 2018 and Tranche 2 of
17,500,000 performance rights vesting on 30 November 2019.
c. Performance rights of Aura Energy Limited held by each KMP
Group KMP
2020
Reeve
Madden
2019
Reeve
Madden
Balance at
start of year
No
Awarded as
remuneration
during the year
No
Converted
during the
year
No
Other
changes
during the
year
No
Balance at
end of year
No
Vested and
convertible
No
17,500,000
5,000,000
22,500,000
-
-
-
(17,500,000)
(1,666,666)
(19,166,666)
35,000,000
-
35,000,000
-
5,000,000
5,000,000
(17,500,000)
-
(17,500,000)
-
-
-
-
-
-
-
3,333,334
3,333,334
-
1,666,666
1,666,666
17,500,000
5,000,000
22,500,000
-
1,666,666
1,666,666
At the annual general meeting of shareholders on 30 November 2017, shareholders approved a resolution to
cancel 35,000,000 options over ordinary shares previously granted to Mr PD Reeve and grant 35,000,000
performance rights for zero consideration. The Group expended $195,129 (2019: $362,832) during the
financial year for these performance rights.
The performance rights issued to Mr PD Reeve vested over two years with the first tranche of 17,500,000
vesting on 30 November 2018 and the second tranche of 17,500,000 vesting on 30 November 2019.
16 | P a g e
REMUNERATION REPORT
The amount expensed during the financial year represents the share price on the date of grant for the
performance rights (2.2 cents per share) multiplied by the number of performance rights issued and subject
to a probability of milestone achievement evaluated each balance date.
On 17 June 2018, the Group awarded Messrs NJ Clifford and JM Madden and Dr WR Goodall with each
issued 5,000,000 performance rights. The board of directors ratified the issue of the performance rights on 4
September 2018. The performance rights vest over three years from 17 June 2019 through to 17 June
2021.
The amount expensed during the financial year represents the share price on the date of grant for the
performance rights (2.1 cents per share) multiplied by the number of performance rights issued and subject
to a probability of milestone achievement evaluated each balance date.
Mr NJ Clifford and Dr WR Goodall are not classified as Group KMP.
d. Options of Aura Energy Limited held by each KMP
Dr R Beeson, Mr JC Perkins and Mr JM Madden subscribed to the Share Placement and Share Purchase
Plan during the course of the financial year. As at the date of this annual report, listed options and loyalty
options over ordinary shares have not been issued. Dr R Beeson is entitled to 172,667 options over
ordinary shares, Mr JC Perkins is entitled to 1,072,398 options over ordinary shares and Mr JM Madden is
entitled to 594,371 options over ordinary shares.
The options over ordinary shares expire on 31 July 2020 and 31 July 2021 depending on the series.
Equity holdings of each KMP
Group KMP
2020
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
JM Madden
2019
PD Reeve
R Beeson
BF Fraser
JC Perkins
JM Madden
Balance at
start of year
No
Received during
the year as
compensation
No
Conversion of
performance
shares during the
year
No
Subscriptions
to issues of
shares
No
Other
changes
during the
year
No
Balance at
end of year
No
30,312,365
5,949,437
-
-
3,957,600
-
3,799,490
3,134,639
47,153,531
12,812,365
5,636,937
3,957,600
2,861,990
215,833
25,484,725
-
-
-
-
-
-
-
25,131,579
25,131,579
-
-
-
-
2,293,806
2,293,806
17,500,000
-
-
-
-
-
-
1,666,666
19,166,666
-
-
-
-
-
-
-
-
-
-
-
76,600,000
-
(3,957,600)
-
-
-
47,812,365
5,949,437
76,600,000
-
-
-
3,799,490
29,932,884
72,642,400 164,094,176
17,500,000
-
-
-
-
17,500,000
-
312,500
-
937,500
625,000
1,875,000
-
-
-
-
-
-
30,312,365
5,949,437
3,957,600
3,799,490
3,134,639
47,153,531
During the financial Mr JM Madden was issued fully paid ordinary shares in lieu of amounts due as a contract
employee for the period 1 August 2019 to 30 April 2020 on a pre-tax basis (2019: 2,293,806 fully paid ordinary
shares were issued to MR JM Madden in lieu of services.
17 | P a g e
REMUNERATION REPORT
Options over ordinary shares held by KMP
Group KMP
2020
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
JM Madden
2019
PD Reeve
R Beeson
BF Fraser
JC Perkins
JM Madden
Balance at
start of year
No
Received during
the year as
compensation
No
Exercised during
the year
No
Issued under
SP/SPP
Raisings
No
Other
changes
during the
year
No
Balance at
end of year
No
-
172,667
-
-
-
-
1,072,398
594,371 -
1,839,436
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
172,667
-
1,072,398
594,371
1,839,436
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
172,667
-
-
-
-
1,072,398
594,371
1,839,436
-
172,667
-
1,072,398
594,371
1,839,436
Dr R Beeson and Messrs JM Madden and JC Perkins subscribed to the Share Placement and Share Purchase
Plans during the course of the financial year and were issued unlisted options and loyalty options on 30 September
2019 pursuant to the terms and conditions of the above-mentioned equity raising initiatives.
Loans to KMP
There were no loans made to directors of Aura Energy Limited as at 30 June 2020 (2019: Nil).
Other transactions with KMP
PD Reeve
R Beeson
JL Bennett
RC Craigie
BF Fraser
PD Heber
JC Perkins
JM Madden
30 June
2020
$
30 June
2019
$
86,550
43,800
21,000
6,360
16,920
6,360
43,800
7,300
232,090
-
-
-
-
-
-
-
25,100
25,100
At balance date 30 June 2020, Mr PD Reeve was owed $86,550 in remuneration pursuant to agreed terms and
conditions of a revised contract of employment with the base salary from 1 November 2019 being $280,000 plus
$25,000 in superannuation. Non-executive directors had deferred entitlements to emoluments and Mr JM Madden
was owed $7,300 (2019: $25,100) by Aura Energy Limited.
The Company will seek approval from shareholders at the Annual General Meeting to extinguish the obligations of
the Company to its directors by way of the issue of fully paid ordinary shares (on an after-tax basis).
There have been no other transactions involving equity instruments other than those described in the annual report.
18 | P a g e
This report of the directors is signed in accordance with a resolution of the Board of Directors.
REMUNERATION REPORT
PD Reeve
Executive Chairman
Dated this 1 November 2020
19 | P a g e
To The Board of Directors
Auditor’s Independence Declaration under Section 307C of the
Corporations Act 2001
As lead audit Partner for the audit of the financial statements of Aura Energy Limited for
the financial year ended 30 June 2020, I declare that to the best of my knowledge and
belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
any applicable code of professional conduct in relation to the audit.
Yours faithfully
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Partner
Dated at Perth this 1st day of November 2020
CONSOLIDATED STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME
Note
30 June
2020
$
2019
$
Total revenue and other income
5
86,188
32,293
Expenditure
Accounting and audit fees
Computers and communications
Depreciation
Employee benefits
Exploration expenditure related to project generation
Exchange fluctuations
Financing costs
Impairment of exploration and evaluation expenditure
Insurances
Consulting fees and corporate advisory
Government and public relations
Rent and utilities
Share-based payments
Share registry and listing fees
Travel and accommodation
Other
Total expenditure
41,192
26,298
3,565
699,069
-
1,280
1,211,086
2,661,069
61,234
814,080
33,690
75,114
231,292
282,741
12,807
92,836
6,247,353
80,600
27,457
7,660
895,326
35,635
(30,327)
149,067
179,152
59,848
458,904
202,769
75,022
530,832
189,874
70,707
38,711
2,971,237
13
29
Loss before tax for year
(6,161,165)
(2,938,944)
Income tax (expense)/benefit
6
285,168
42,682
Net loss attributable to shareholders
(5,875,997)
(2,896,262)
Total comprehensive income/(loss) for the year
attributable to:
Foreign currency movement
177,157
60,410
Other comprehensive income for the year, net of tax
177,157
60,410
Total comprehensive income/(loss) for the year
(5,698,840)
(2,835,852)
Earnings/(loss) per share
Basic loss per share (cents per share)
7
(0.370)
(0.260)
The accompanying notes form part of these financial statements
21 | P a g e
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Note
30 June
2020
$
2019
$
9
10
11
12
13
14
15
16
17
18
18
19
20
21
22
23
234,689
77,752
91,866
404,307
812,296
37,294
57,710
907,300
499
19,737,751
19,738,250
4,064
21,008,293
21,012,357
20,142,557
21,919,657
760,058
117,108
34,445
145,709
310,000
1,367,320
464,959
63,499
266,667
71,295
694,215
1,560,635
-
21,495
21,495
694,216
15,341
709,557
1,388,815
2,270,192
18,753,742
19,649,465
50,967,094
357,056
1,147,314
(33,717,722)
18,753,742
46,315,150
-
1,273,829
(27,939,514)
19,649,465
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Financial assets
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Financial liabilities
Vendor consideration
Borrowings
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Total liabilities
Net assets
Equity
Share capital
Other contributed equity
Reserves
Accumulated losses
Total equity
The accompanying notes form part of these financial statements
22 | P a g e
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Note 20
Share
Capital
Note 21
Other
Contributed
Equity
Note 23(a)
Share-based
Payments
Reserve
Note 23(b)
Translation
Reserve
Note 24
Accumulated
Losses
Total
Equity
$
$
$
$
$
$
44,698,295
666,000
-
565,855
1,231,855
-
-
-
-
-
-
-
385,000
46,315,150
1,004,375
(8,703)
2,510,000
656,272
4,161,944
-
-
-
-
-
-
-
490,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
280,638
357,749
(25,043,252)
20,293,430
-
-
-
-
-
-
-
429,200
-
-
530,832
(385,000)
-
-
-
-
60,410
60,410
-
-
-
-
-
-
-
-
-
(2,896,262)
-
(2,896,262)
-
-
-
-
-
666,000
-
565,855
1,231,855
(2,896,262)
60,410
(2,835,852)
429,200
-
-
530,832
-
855,670
418,159
(27,939,514)
19,649,465
-
-
278,889
-
278,889
-
-
-
-
-
78,167
-
-
-
-
-
-
-
-
-
-
52,825
(97,789)
-
231,292
(490,000)
-
-
-
-
-
-
177,157
177,157
-
-
-
-
-
-
-
-
-
-
(5,875,997)
-
(5,875,997)
-
97,789
-
-
-
1,004,375
(8,703)
2,788,889
656,272
4,440,833
(5,875,997)
177,157
(5,698,840)
52,825
-
78,167
231,292
-
As at 1 July 2018
Transactions with owners in their capacity
as owners of the Company
Share issues
Equity raising costs
Share-based payments
Net loss for the period
Other comprehensive income
Total comprehensive income
Movements in reserves
Options issued during the year
Options expired during the year
Options exercised during the year
Performance shares issued during the year
Performance shares converted during the year
As at 30 June 2019
Transactions with owners in their capacity
as owners of the Company
Share issues
Equity raising costs
Conversion of convertible notes
Share-based payments
Net loss for the period
Other comprehensive income
Total comprehensive income
Movements in reserves
Options issued during the year
Options expired during the year
Options exercised during the year
Performance shares issued during the year
Performance shares converted during the year
As at 30 June 2020
50,967,094
357,056
551,998
595,316
(33,717,722)
18,753,742
23 | P a g e
The accompanying notes form part of these financial statements
CONSOLIDATED STATEMENT OF CASH FLOWS
Note
30 June
2020
$
2019
$
Cash flows from/(used) in operating activities
Payments to employees and suppliers
Payments for exploration and evaluation
Other income
Interest paid
Interest received
Net cash flows from/(used) in operating activities
Cash flows from/(used) in investing activities
Purchase of plant and equipment
Net cash flows from/(used) in investing activities
Cash flows from financing activities
Proceeds from share issues
Exercise of options
Equity raising costs
Proceeds from borrowings
Repayment of borrowings
Proceeds from convertible note
Commitment fee paid
Net cash flows
Cash and cash equivalents as at the start of
the financial period
Changes in foreign currency held
Cash and cash equivalents as at the end of
the financial period
28
(1,345,871)
(961,815)
326,130
(11,275)
1,416
(1,991,415)
(1,822,113)
(2,912,693)
66,039
(14,769)
8,936
(4,674,600)
-
-
(3,600)
(3,600)
1,004,374
78,167
(8,703)
250,000
(250,000)
350,000
(8,750)
1,415,088
666,000
-
-
-
-
2,000,000
(50,000)
2,616,000
(576,327)
(2,062,200)
812,296
(1,280)
2,844,169
30,327
9
234,689
812,296
The accompanying notes form part of these financial statements
24 | P a g e
Note 1
Corporate information
NOTES TO THE FINANCIAL STATEMENTS
These are the consolidated financial statements and notes of Aura Energy Limited and controlled entities
(“Consolidated Group” or “Group”). Aura Energy Limited is a company limited by shares, domiciled and
incorporated in Australia.
The separate financial statements of the parent entity, Aura Energy Limited, have not been presented with
this financial report as permitted by the Corporations Act 2001 (Cth).
a. Basis of preparation
i. Statement of compliance
The financial statements are general purpose financial statements that have been prepared in
accordance with Australian Accounting Standards, including Australian Accounting Interpretations,
other authoritative pronouncements of the Australian Accounting Standards Board and the
Corporations Act 2001 (Cth).
Australian Accounting Standards set out accounting policies that the AASB has concluded would result
in a financial report containing relevant and reliable information about transactions, events and
conditions to which they apply. Compliance with Australian Accounting Standards ensures that the
financial statements and notes also comply with International Financial Reporting Standards as issued
by the IASB. Material accounting policies adopted in the preparation of these financial statements are
presented below. They have been consistently applied unless otherwise stated.
The financial statements were authorised for issue on 1 November 2020 by the directors of the
Company.
ii. Financial position
The financial statements have been prepared on an accruals basis and are based on historical costs
modified, where applicable, by the measurement at fair value of selected non-current assets, financial
assets and financial liabilities.
iii. Going concern
The financial statements have been prepared on a going concern basis, which contemplates the
continuity of normal business activity and the realisation of assets and the settlement of liabilities in the
ordinary course of business.
The Group incurred a loss for the year of $5,875,997 (2019: $2,896,262) and a net cash outflow from
operating activities of $1,991,415 (net cash outflows from operating activities in 2019: $4,674,600).
Excluding non-cash based finance costs and impairment of exploration and evaluation the net loss
after tax for the year was $2,003,842 (2019: $2,568,043).
As at 30 June 2020, the Group had negative working capital of $472,859 (working capital in 2019:
$378,842) (excluding financial liabilities, the current portion of convertible notes and amounts due to
shareholders of Nomads Mining Company sarl under the Farm-in and Joint Venture Agreement).
The ability of the Group to continue as a going concern is principally dependent upon the ability of the
Group to secure funds by raising capital from equity markets or by other means, and by managing cash
flows in line with available funds, and/or the successful development of the Group’s exploration assets.
These conditions indicate a material uncertainty that may cast doubt about the ability of the Group to
continue as a going concern.
The Company proposes to undertake a share purchase plan and a rights issue with the shortfall being
placed international. These initiatives are expected to raise $2,000,000 with the largest source of this
new funding being the placement of the shortfall expected to be $1,300,000 to $1,500,000.
Based upon cash flow forecasts and other factors referred to above, the directors are satisfied that the
going concern basis of preparation is appropriate, including the meeting of exploration commitments. In
25 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
addition, given the Group’s history of raising funds to date, the directors are confident of the Group’s
ability to raise additional funds as and when they are required.
Should the Group be unable to continue as a going concern it may be required to realise its assets
and extinguish its liabilities other than in the normal course of business and at amounts different to
those stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification
of asset carrying amounts or to the amount and classification of liabilities that might result should the
Group be unable to continue as a going concern and meet its debts as and when they fall due.
iv. Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses. These estimates and associated assumptions are based on historical
experience and various factors that are believed to be reasonable under the circumstances, the results
of which form the basis of making the judgements about carrying values of assets and liabilities that
are not readily apparent from other sources. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and in any future periods
affected.
Judgements made by management in the application of Australian Accounting Standards that have
significant effect on the financial statements and estimates with a significant risk of material adjustment
in the next year are discussed in Note 2q Critical accounting estimates and judgments.
v. Comparative figures
Where required by Accounting Standards comparative figures have been adjusted to conform with
changes in presentation for the current financial year.
Note 2
Basis of preparation and accounting policies
A controlled entity is any entity over which Aura Energy Limited has the power to govern the financial and
operating policies so as to obtain benefits from its activities. In assessing the power to govern, the
existence and effect of holdings of actual and potential voting rights are considered. A list of controlled
entities is contained in Note 24 Controlled entities in the financial statements.
All inter-group balances and transactions between entities in the Consolidated Group, including any
unrealised profits or losses, have been eliminated on consolidation. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with those adopted by the parent entity.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the
consolidated financial statements as well as their results for the year then ended. Where controlled entities
have entered (left) the Consolidated Group during the year, their operating results have been included
(excluded) from the date control was obtained (ceased).
a. Business combinations
Business combinations occur when an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business combination will be accounted for
from the date that control is attained, whereby the fair value of the identifiable assets acquired and
liabilities (including contingent liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability
resulting from a contingent consideration arrangement is also included. Subsequent to initial
recognition, contingent consideration classified as an asset or liability is remeasured each reporting
26 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
period to fair value, recognising any change to fair value in profit or loss, unless the change in value
can be identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of
profit or loss and comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain
purchase.
b. Exploration and development expenditure
i. Recognition and measurement
Exploration, evaluation, and development expenditure incurred is accumulated in respect of each
identifiable area of interest. These costs are only carried forward to the extent that they are
expected to be recouped through the successful development of the area or where activities in the
area have not yet reached a stage that permits reasonable assessment of the existence of
economically recoverable reserves.
ii. Subsequent measurement
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in
which the decision to abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest will be
amortised over the life of the area according to the rate of depletion of the economically recoverable
reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of
continuing to capitalise costs in relation to that area of interest.
iii. Site restoration and rehabilitation
Costs of site restoration will be provided over the life of the project, when such costs are incurred,
or the Group becomes liable pursuant to a development agreement with government agencies. In
the exploration and evaluation phase, all drill holes are collared, and any site disturbance is
restored with the costs incorporated in the costs of exploration and evaluation. Site restoration costs
will include the dismantling and removal of mining plant, equipment and building structures, waste
removal, and rehabilitation of the site in accordance with clauses of the mining permits. Such costs
have been determined using estimates of future costs, current legal requirements and technology
on an undiscounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining
the costs of site restoration, The Group’s assessment incorporates the nature and extent of the
restoration due to community expectations and future legislation. Accordingly, the costs have been
determined on the basis that the restoration will be completed within one year of abandoning the
site.
c. Income tax
Current income tax expense charged to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date.
Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered
from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well as unused tax losses.
Current and deferred income tax expense (income) is charged or credited outside profit or loss when
the tax relates to items recognised outside profit or loss.
27 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax
assets also result where amounts have been fully expensed but future tax deductions are available. No
deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a
business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the
period when the asset is realised or the liability is settled, based on tax rates enacted or substantively
enacted at reporting date.
Their measurement also reflects the manner in which management expects to recover or settle the
carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the
deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and
joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of
the temporary difference can be controlled and it is not probable that the reversal will occur in the
foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is
intended that net settlement or simultaneous realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off
exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities where it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur in
future periods in which significant amounts of deferred tax assets or liabilities are expected to be
recovered or settled.
Where the Group receives the Australian Government’s Research and Development Tax Incentive, The
Group accounts for the refundable tax offset under AASB 112. Funds are received as a rebate through
the parent company’s income tax return and disclosed as such in Note 6 Income tax.
d. Plant and equipment
i. Recognition and measurement
Each class of plant and equipment is measured at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets. The recoverable amount is assessed on the
basis of the expected net cash flows that will be received from the asset’s employment and
subsequent disposal. The expected net cash flows have not been discounted to their present
values in determining recoverable amounts.
Items of property, plant and equipment are measured at cost less accumulated depreciation (see
below) and impairment losses (see Note 2l Impairment of non- financial assets and Note 2b
Exploration and development expenditure).
ii. Depreciation
The depreciable amount of all fixed assets including building and capitalised lease assets, but
excluding freehold land, is depreciated on a straight-line basis over their useful lives to the
Consolidated Group commencing from the time the asset is held ready for use. Leasehold
improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful lives of the improvements.
28 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
The depreciation rates used for each class of depreciable assets are:
Plant and equipment
Computers
20.00%
33.00%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period. An asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount.
These gains and losses are included in the statement of comprehensive income. When re-valued
assets are sold, amounts included in the revaluation reserve relating to that asset are transferred
to retained earnings
e. Employee benefits
For the period ending 30 June 2020 the Company has three employees.
i. Defined contribution superannuation funds
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed
contributions onto a separate entity and will have no legal or constructive obligation to pay further
amounts. Obligations for contributions to defined contribution superannuation funds are recognised
as an expense in the income statement as incurred. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in future payments is available.
ii. Short-term benefits
Liabilities for employee benefits for wages, salaries and annual leave that are expected to be
settled within 12 months of the reporting date represent present obligations resulting from
employees’ services provided to the reporting date and are calculated at undiscounted amounts
based on remuneration wage and salary rates that the Company expects to pay at the reporting
date including related on-costs, such as workers compensation insurance and payroll tax.
Non-accumulating non-monetary benefits, such as medical care, housing, cars and free or
subsidised goods and services, are expensed based on the net marginal cost to the Company as
the benefits are taken by the employees.
iii. Other long-term benefits
Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
f. Equity-settled compensation
The Group operates an employee share ownership scheme. Share-based payments to employees are
measured at the fair value of the instruments issued and amortised over the vesting periods. Share-
based payments to non-employees are measured at the fair value of goods or services received or the
fair value of the equity instruments issued, if it is determined the fair value of the goods or services
cannot be reliably measured and are recorded at the date the goods or services are received. The
corresponding amount is recorded to the option reserve. The fair value of options is determined using
the Black-Scholes pricing model. The number of shares and options expected to vest is reviewed and
adjusted at the end of each reporting period such that the amount recognised for services received as
consideration for the equity instruments granted is based on the number of equity instruments that
eventually vest.
g. Revenue and other income
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
Management fees are recognised on portion of completion basis.
29 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Gain on disposal of tenements, and revenue from equipment chargebacks, are recognised on receipt
of compensation.
All revenue is stated net of the amount of value added taxes (see Note 2h Value-added taxes).
h. Value-added taxes
Value-added taxes (VAT) is the generic term for the broad-based consumption taxes that the Group is
exposed to such as: Australia (GST); Sweden (MOMS); and in Mauritanian (VAT).
Revenues, expenses, and assets are recognised net of the amount of VAT, except where the amount of
VAT incurred is not recoverable from the relevant country’s taxation authority. In these circumstances
the VAT is recognised as part of the cost of acquisition of the asset or as part of an item of the
expense. Receivables and payables in the statement of financial position are shown inclusive of VAT.
Cash flows are presented in the statement of cash flows on a gross basis, except for the VAT
component of investing and financing activities, which are disclosed as operating cash flows.
Commitments and contingencies are disclosed net of the amount of VAT recoverable from, or payable
to, the taxation authority.
i. Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the
asset, but not the legal ownership, are transferred to entities in the Group are classified as finance leases.
Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely
that the Group will obtain ownership of the asset or over the term of the lease.
Lease payments for operating leases, where substantially all the risks and benefits remain with the
lessor, are charged as expenses in the periods in which they are incurred.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line
basis over the life of the lease term
j. Financial instruments
i.
Initial recognition and measurement
Financial instruments, incorporating financial assets and financial liabilities, are recognised when
the entity becomes a party to the contractual provisions of the instrument. Trade date accounting is
adopted for financial assets that are delivered within timeframes established by marketplace
convention.
Financial instruments are initially measured at fair value plus transactions costs where the
instrument is not classified as at fair value through profit or loss.
Transaction costs related to instruments classified as at fair value through profit or loss are
expensed to profit or loss immediately.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as
being subject to the requirements of accounting standards specifically applicable to financial
instruments.
ii. Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity securities, trade and other
receivables, cash and cash equivalents and trade and other payables.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at
fair value through profit or loss, any directly attributable transactions costs. Subsequent to initial
recognition non-derivative financial instruments are measured as described below.
30 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
iii. Classification and subsequent measurement
(1) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-
term highly liquid investments with original maturities of three months or less, and bank
overdrafts. Bank overdrafts are shown within short borrowings in current liabilities on the
Statement of financial position.
(2) Loans
Loans are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market and are subsequently measured at amortised cost. Gains or losses are
recognised in profit or loss through the amortisation process and when the financial asset is
derecognised.
Loans are included in current assets, except for those which are not expected to mature within 12
months after the end of the reporting period.
(3) Trade and other receivables
Trade and other receivables are stated at amortised cost. Receivables are usually settled within
30 to 90 days.
Collectability of trade and other debtors is reviewed on an ongoing basis. An impairment loss is
recognised for debts which are known to be uncollectible. An impairment provision is raised for
any doubtful amounts.
(4) Trade and other payables
Trade payables and other payable are recognised when the Group becomes obligated to make
future payments resulting from the purchase of goods and services which are unpaid and
stated at their amortised cost.
The amounts are unsecured and are generally settled on 30-day terms.
(5) Financial liabilities
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured
at amortised cost.
(6) Share capital
Ordinary issued capital is recorded at the consideration received. Incremental costs directly
attributable to the issue of ordinary shares and share options are recognised as a deduction
from equity, net of any related income tax benefit. Ordinary issued capital bears no special
terms or conditions affecting income or capital entitlements of the shareholders.
iv. Amortised cost
Amortised cost is calculated as the amount at which the financial asset or financial liability is
measured at initial recognition less principal repayments and any reduction for impairment and
adjusted for any cumulative amortisation of the difference between that initial amount and the
maturity amount calculated using the effective interest method.
v. Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation
techniques are applied to determine the fair value for all unlisted securities, including recent arm’s
length transactions, reference to similar instruments and option pricing models.
vi. Effective interest method
The effective interest method is used to allocate interest income or interest expense over the
relevant period and is equivalent to the rate that discounts estimated future cash payments or
receipts (including fees, transaction costs and other premiums or discounts) over the expected life
31 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
(or when this cannot be reliably predicted, the contractual term) of the financial instrument to the
net carrying amount of the financial asset or financial liability. Revisions to expected future net cash
flows will necessitate an adjustment to the carrying amount with a consequential recognition of an
income or expense item in profit or loss.
vii. Impairment
A financial asset is assessed at each reporting date to determine whether there is any objective
evidence that it is impaired. A financial asset is considered to be impaired if objective evidence
indicates that one or more events have had a negative effect on the estimated future cash flows of
that asset.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis. The
remaining financial assets are assessed collectively in Groups that share similar credit risk
characteristics.
All impairment losses are recognised in the income statement.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after
the impairment loss was recognised. For financial assets measured at amortised cost the reversal
is recognised in the income statement.
viii. Derecognition
Financial assets are derecognised where the contractual rights to cash flow expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement
in the risks and benefits associated with the asset.
Financial liabilities are derecognised where the related obligations are either discharged, cancelled
or expired. The difference between the carrying value of the financial liability extinguished or
transferred to another party and the fair value of consideration paid, including the transfer of non-
cash assets or liabilities assumed, is recognised in profit or loss.
ix. Financial income and expenses
Finance income comprises interest income on funds invested (including available-for-sale financial
assets), gains on the disposal of available-for-sale financial assets and changes in the fair value of
financial assets at fair value through profit or loss. Interest income is recognised as it accrues in
profit or loss, using the effective interest method.
Financial expenses comprise interest expense on borrowings calculated using the effective interest
method, unwinding of discounts on provisions, changes in the fair value of financial assets at fair
value through profit or loss and impairment losses recognised on financial assets. All borrowing
costs are recognised in profit or loss using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale, are added to
the cost of those assets, until such time as the assets are substantially ready for their intended use
or sale. All other borrowing costs are recognised in income in the period in which they are incurred.
Foreign currency gains and losses are reported on a net basis.
k. Earnings per share
i. Basic earnings per share
Basic earnings (or loss) per share is determined by dividing the profit or loss attributable to equity
holders of the parent company, excluding any costs of service equity other than ordinary shares, by
32 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
the weighted average number of ordinary shares outstanding during the financial year, adjusted for
bonus elements in ordinary shares issued during the year.
ii. Diluted earnings per share
Diluted earnings (or loss) per share is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares which comprise share options granted as share-
based payments.
The Group does not report diluted earnings per share, as dilution is not applied to annual losses
generated by the Group.
l.
Impairment of non-financial assets
The carrying amounts of the Company’s non-financial assets, other than deferred tax assets (Note 2c
Income tax) and exploration and evaluation assets (Note 2b Exploration and development expenditure)
are reviewed at each reporting date to determine whether there is any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds
its recoverable amount. A cash-generating unit is the smallest identifiable asset Group that generates
cash flows that largely are independent from other assets and Groups. Impairment losses are
recognised in the income statement, unless the asset has previously been revalued, in which case the
impairment loss is recognised as a reversal to the extent of that previous revaluation with any excess
recognised through the income statement. Impairment losses recognised in respect of cash-generating
units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit on a pro rata basis.
The recoverable amount of an asset or cash-generating unit is the greater of its 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, the recoverable amount is determined for the cash- generating unit to which the asset
belongs.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a
change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would
have been determined, net of depreciation and amortisation, if no impairment loss had been
recognised.
m. Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past
events, for which it is probable that an outflow of economic benefits will results and that outflow can be
reliably measured.
n. Foreign currency transactions and balances
i. Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the
primary economic environment in which that entity operates. The consolidated financial statements
are presented in Australian dollars which is the parent entity’s functional and presentation currency.
ii. Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates
prevailing at the date of the transaction. Foreign currency monetary items are translated at the
year- end exchange rate. Non-monetary items measured at historical cost continue to be carried at
33 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
the exchange rate at the date of the transaction. Non-monetary items measured at fair value are
reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the profit or
loss except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in
other comprehensive income to the extent that the gain or loss is directly recognised in other
comprehensive income, otherwise the exchange difference is recognised in the profit or loss.
iii. Group entities
The financial results and position of foreign operations whose functional currency is different from
the Group’s presentation currency are translated as follows:
Assets and liabilities are translated at year-end exchange rates prevailing at that reporting date.
Income and expenses are translated at average exchange rates for the period.
Retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the
Group’s foreign currency translation reserve in the statement of financial position. These differences
are recognised in the profit or loss in the period in which the operation is disposed.
o. Fair value estimation
A number of the Group’s accounting policies and disclosures require the determination of fair value, for
both financial and non-financial assets and liabilities. Information about the assumptions made in
determining fair values of assets and liabilities is disclosed in the notes specific to that asset or
liability.
p. Fair value of assets and liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-
recurring basis, depending on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a
liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information
is used to determine fair value. Adjustments to market values may be made having regard to the
characteristics of the specific asset or liability. The fair values of assets and liabilities that are not
traded in an active market are determined using one or more valuation techniques. These valuation
techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or
liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the
absence of such a market, the most advantageous market available to the entity at the end of the
reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the
payments made to transfer the liability, after taking into account transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s
ability to use the asset in its highest and best use or to sell it to another market participant that would
use the asset in its highest and best use.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-
based payment arrangements) may be valued, where there is no observable market price in relation to
the transfer of such financial instruments, by reference to observable market information where such
34 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
instruments are held as assets. Where this information is not available, other valuation techniques are
adopted and, where significant, are detailed in the respective note to the financial statements.
i. Valuation techniques
In the absence of an active market for an identical asset or liability, the Group selects and uses
one or more valuation techniques to measure the fair value of the asset or liability, the Group
selects a valuation technique that is appropriate in the circumstances and for which sufficient data
is available to measure fair value. The availability of sufficient and relevant data primarily depends
on the specific characteristics of the asset or liability being measured. The valuation techniques
selected by the Group are consistent with one or more of the following valuation approaches:
(1) Market approach: valuation techniques that use prices and other relevant information generated
by market transactions for identical or similar assets or liabilities.
(2) Income approach: valuation techniques that convert estimated future cash flows or income and
expenses into a single discounted present value.
(3) Cost approach: valuation techniques that reflect the current replacement cost of an asset at its
current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would
use when pricing the asset or liability, including assumptions about risks. When selecting a
valuation technique, the Group gives priority to those techniques that maximise the use of
observable inputs and minimise the use of unobservable inputs. Inputs that are developed using
market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are
considered observable, whereas inputs for which market data is not available and therefore are
developed using the best information available about such assumptions are considered
unobservable
ii. Fair value hierarchy
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which
categorises fair value measurements into one of three possible levels based on the lowest level that an
input that is significant to the measurement can be categorised into as follows:
(1) Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or
liabilities that the entity can access at the measurement date.
(2) Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for
the asset or liability, either directly or indirectly.
(3) Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using
one or more valuation techniques. These valuation techniques maximise, to the extent possible, the
use of observable market data. If all significant inputs required to measure fair value are observable,
the asset or liability is included in Level 2. If one or more significant inputs are not based on
observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following
circumstances:
•
if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or
vice versa or
35 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
•
if significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice
versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair
value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event
or change in circumstances occurred.
q. Critical accounting estimates and judgements
The directors evaluate estimates and judgements incorporated into the financial report based on
historical knowledge and best available current information.
Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Group.
i. Key Judgements – Exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is
current. These costs are carried forward in respect of an area that has not at reporting date
reached a stage that permits reasonable assessment of the existence of economically recoverable
reserves, refer to the accounting policy stated in Note 2b Exploration and development expenditure.
The carrying value of capitalised expenditure at reporting date is $19,737,751 (2019: $21,008,293).
During the financial year, the Group undertook assessment of its tenement assets, as a result of
this assessment, the Group decided to impair some of its exploration assets. Refer to Note 13
Exploration and evaluation assets.
ii. Key Judgements – Environmental issues
Balances disclosed in the financial statements and notes thereto are not adjusted for any pending
or enacted environmental legislation, and the directors understanding thereof. At the current stage
of the Company’s development and its current environmental impact, the directors believe such
treatment is reasonable and appropriate.
iii. Key Estimate – Taxation
Balances disclosed in the financial statements and the notes thereto, related to taxation, are based
on the best estimates of directors. These estimates take into account both the financial performance
and position of the Company as they pertain to current income taxation legislation, and the
directors understanding thereof.
No adjustment has been made for pending or future taxation legislation. The current income tax
position represents that directors’ best estimate, pending an assessment by tax authorities in
relevant jurisdictions. Refer to Note 6 Income tax.
iv. Key Estimate — Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the
Group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable
amount of the asset is determined.
v. Key Estimate – Share-based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined
by an internal valuation using a Black-Scholes option pricing model, using the assumptions detailed
in Note 29 Share-based payments
Note 3
Financial risk management
i. Financial risk management objectives and policies
36 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
The Group’s principal financial instruments comprise of cash and short-term deposits and other
financial assets.
The main purpose of these financial instruments is to invest funds raised by the Group until utilised
in exploration activities.
The Group has other financial instruments such as current receivables and payables arising from
corporate activities.
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency
risk, credit risk and liquidity risk. The Chief Financial Officer is responsible for the management of
the Group’s financial risk. The Chief Financial Officer updates the board of directors regularly on
financial risk management measures that he implements.
Floating
Interest
Rate
Fixed
Interest
Rate
Non-interest
Bearing
Total
For the Financial Year Ended 30 June 2020
234,689
-
-
234,689
-
-
234,689
-
-
-
-
-
-
-
-
77,752
91,866
169,618
(760,058)
-
(590,440)
234,689
77,752
91,866
404,307
(760,058)
-
(355,751)
For the Financial Year Ended 30 June 2019
Floating
Interest
Rate
Fixed
Interest
Rate
Non-interest
Bearing
Total
812,296
-
-
812,296
-
-
812,296
-
-
-
-
-
-
-
-
37,294
57,710
95,004
(464,959)
-
(369,955)
812,296
37,294
57,710
907,300
(464,959)
-
442,341
Financial assets
Cash and cash equivalents
Receivables
Other current assets
Financial liabilities
Payables
Other payables
Net maturity
Financial assets
Cash and cash equivalents
Receivables
Other current assets
Financial liabilities
Payables
Other payables
Net maturity
ii. Specific financial risk exposures and management
The main risk the Group is exposed to through its financial instruments are credit risk, liquidity risk and
market risk consisting of interest rate, foreign currency risk and equity price risk.
The board of directors has overall responsibility for the establishment and oversight of the risk
management framework. The board of directors has adopted practices designed to identify significant
areas of business risk and to effectively manage those risks in accordance with the risk profile. This
includes assessing, monitoring and managing risks for the Group and setting appropriate risk limits and
controls. The Group is not of a size nor is its affairs of such complexity to justify the establishment of a
formal system for risk management and associated controls. Instead, the Board approves all
expenditure, is intimately acquainted with all operations and discuss all relevant issues at the Board
meetings. The operational and other compliance risk management have also been assessed and
found to be operating efficiently and effectively.
Credit risk
37 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Exposure to credit risk relating to financial assets arises from the potential non-performance by
counterparties of contract obligations that could lead to a financial loss to the Group
The Group does not have any material credit risk exposure to any single receivable or Group of
receivables under financial instruments entered into by the Group.
Credit risk exposures
The maximum exposure to credit risk is that to its alliance partners and that is limited to the carrying
amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial
position and notes to the financial statements.
Credit risk related to balances with banks and other financial institutions is managed by the Group in
accordance with approved Board policy. Such policy requires that surplus funds be only invested with
financial institutions residing in Australia, wherever possible.
Impairment losses
Group’s financial assets that are past due total $nil (2019: $nil).
There has been no allowance for impairment in respect of the financial assets of the Group during
this year.
Liquidity risk
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities.
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and
ensuring sufficient cash and marketable securities are available to meet the current and future
commitments of the Group. Due to the nature of the Group’s activities, being mineral exploration, the
Group does not have ready access to credit facilities, with the primary source of funding being equity
raisings. The board of directors constantly monitor the state of equity markets in conjunction with the
Group’s current and future funding requirements, with a view to initiating appropriate capital raisings as
required. Any surplus funds are invested with major financial institutions.
The financial liabilities of the Group are confined to trade and other payables as disclosed in the
statement of financial position. All trade and other payables are non-interest bearing and due within 30
days of the reporting date.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
The Board meets on a regular basis and considers the Group’s exposure currency and interest rate
risk.
(1) Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end
of the reporting period whereby a future change in interest rates will affect future cash flows or the
fair value of fixed rate financial instruments. The Group is also exposed to earnings volatility on
floating rate instruments.
Interest rate risk is not material to the Group as no debt arrangements have been entered into, and
movement in interest rates on the Group’s financial assets is not material.
(2) Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial
instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group
38 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
holds financial instruments which are other than the Australian dollars functional currency of the
Group.
With instruments being held by overseas operations, fluctuations in foreign currencies may impact
on the Group’s financial results. The Group’s exposure to foreign exchange risk is minimal;
however, the Board continues to review this exposure regularly.
(3) Price risk
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices.
The Group is exposed to securities price risk on investments held for trading or for medium to
longer terms.
The investment in listed equities has been valued at the market price prevailing at balance date.
Management of this investment’s price risk is by ongoing monitoring of the value with respect to any
impairment.
iii. Sensitivity analysis
Interest rate risk
The Group is exposed to market interest rates on moneys it has deposited with Australian banking
institutions in form of short-term deposits.
At the end of the financial period, the Group had the following financial assets exposed to
Australian variable interest rate risk:
The main risks arising from the Group’s financial instruments are interest rate risk, foreign currency
risk, credit risk and liquidity risk. The Chief Financial Officer is responsible for the management of
the Group’s financial risk. The Chief Financial Officer updates the board of directors regularly on
financial risk management measures that he implements.
30 June
2020
$
2019
$
Cash and cash equivalents
234,689
812,296
At the end of the financial period, the Group had no financial liabilities exposed to variable interest
rate risks.
The Group’s cash management policy is to invest surplus funds at the best available rate received
from the Commonwealth Bank of Australia.
Set out below is a sensitivity analysis of the financial implications of interest rate risk exposure as at
the end of the financial year. If interest rates had moved, with all other variables constant, profit
after tax and equity would have been:
39 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
30 June
2020
$
2019
$
243
(1,416)
2,031
(2,031)
243
(1,416)
2,031
(2,031)
Profit after tax
Higher/(lower)
+1% (100 basis points)
-1% (100 basis points)
Equity
Higher/(lower)
+1% (100 basis points)
-1% (100 basis points)
The movement in equity is directly linked to the movement in the Statement of Comprehensive
Income as the Group does not undertake any interest rate hedging.
Foreign currency risk
The Group has exposure to foreign currency risk in relation to US dollars for assets the Group holds in
Mauritania. The following table illustrates sensitivities to the Group’s exposures to changes in the
AUD/USD exchange rate. The table indicates the impact on how profit and equity values reported at
balance sheet date would have been affected by changes in the relevant risk variable that management
considers to be reasonably possible. These sensitivities assume that the movement in a particular
variable is independent of other variables.
The table below sets out the financial impact of the strengthening or weakening of the Australian
dollar against the US dollar on a profit after tax and equity basis as at the end of the financial year,
with all other variables constant:
Profit after tax
Higher/(lower)
+10% AUD/SEK exchange rate
-10% AUD/SEK exchange rate
Equity
Higher/(lower)
+10% AUD/SEK exchange rate
-10% AUD/SEK exchange rate
Profit after tax
Higher/(lower)
+10% AUD/USD exchange rate
-10% AUD/USD exchange rate
Equity
Higher/(lower)
+10% AUD/USD exchange rate
-10% AUD/USD exchange rate
30 June
2020
$
2019
$
5,418
(6,622)
-
-
185,120
(226,258)
100,068
(122,305)
-
-
-
-
23,912
(29,225)
197,110
(240,912)
At balance date, the Group does not hold financial instruments that would give rise to price risk
40 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
iv. Fair values
The fair values of financial assets and financial liabilities are presented in the table below and can be
compared to their carrying values as presented in the statement of financial position. Fair values are
those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction.
Cash and cash equivalents, trade and other receivables, and trade and other payables are short-term
investments in nature whose carrying value is equivalent to fair value.
The methods and assumptions used in determining the fair values of financial instruments are
disclosed in the accounting policy notes specific to the asset or liability.
v. Financial asset and liability maturity
Year ended 30 June 2020
0-30
Days
31-60
Days
61-90
Days
91-180
Days
Total
Financial assets
Cash and cash equivalents
Receivables
Other current assets
Financial liabilities
Payables
Net maturity
234,689
77,752
91,866
404,307
(760,058)
(355,751)
-
-
-
-
-
-
Year ended 30 June 2019
0-30
Days
31-60
Days
61-90
Days
Financial assets
Cash and cash equivalents
Receivables
Other current assets
Financial liabilities
Payables
Net maturity
812,296
37,294
57,710
907,300
(464,959)
442,341
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
91-180
Days
-
-
-
-
-
-
-
-
-
-
-
-
234,689
77,752
91,866
404,307
(760,058)
(355,751)
Total
812,296
37,294
57,710
907,300
(464,959)
442,341
Note 4
Segment reporting
i.
Identification of reportable segments
The Group operates predominantly in the mining industry. This comprises exploration and evaluation
of uranium projects. Inter- segment transactions are priced at cost to the Consolidated Group.
The Group has identified its operating segments based on the internal reports that are provided to the
Board of Directors on a monthly basis. Management has identified the operating segments based on
the three principal projects – uranium, vanadium and gold and base metals. The Group also
maintains a corporate function primarily responsible for overall management of the operating
segments, raising capital and distributing funds to operating segments.
Corporate expenses include administration and regulatory expenses arising from operating an
ASX listed entity.
Segment assets include the costs to acquire tenements and the capitalised exploration costs of those
tenements Financial assets including cash and cash equivalents, and investments in financial assets,
are reported in the Treasury segment.
41 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
ii. Basis of accounting for purposes of reporting by operating segments
(1) Accounting policies adopted
Unless stated otherwise, all amounts reported to the board of directors, being the chief decision
maker with respect to operating segments, are determined in accordance with accounting policies
that are consistent to those adopted in the annual financial statements of the Group.
(2) Inter-segment transactions
An internally determined transfer price is set for all inter-segment sales. This price is reset quarterly
and is based on what would be realised in the event the sale was made to an external party at arm’s
length. All such transactions are eliminated on consolidation of the Group’s financial statements.
Corporate charges are allocated to reporting segments based on the segments’ overall proportion
of revenue generation within the Group. The board of directors believes this is representative of
likely consumption of head office expenditure that should be used in assessing segment
performance and cost recoveries.
Inter-segment loans payable and receivable are initially recognised at the consideration
received/to be received net of transaction costs. If inter-segment loans receivable and payable
are not on commercial terms, these are not adjusted to fair value based on market interest rates.
This policy represents a departure from that applied to the statutory financial statements.
(3) Segment assets
Where an asset is used across multiple segments, the asset is allocated to that segment that
receives majority economic value from that asset. In the majority of instances, segment assets are
clearly identifiable on the basis of their nature and physical location.
(4) Segment liabilities
Liabilities are allocated to segments where there is a direct nexus between the incurrence of the
liability and the operations of the segment. Borrowings and tax liabilities are generally considered
to relate to the Group as a whole and are not allocated. Segment liabilities include trade and
other payables and certain direct borrowings.
(5) Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating
segments as they are not considered part of the core operations of any segment:
• Non-exploration impairment of assets and other non-recurring items of revenue or expense
•
Income tax expense
• Deferred tax assets and liabilities
• Current tax liabilities
• Other financial liabilities
42 | P a g e
For the year ended 30 June 2020
Segment revenue
Segment result
Amounts not included in segment results but reviewed by the board:
Expenses not directly allocable to identifiable segments
Accounting and audit fees
Depreciation
Employee expense benefits expense
Exchange fluctuation
Exploration expenditure related to project generation
Finance costs
Insurances
Consulting and advisory fees
Rent and utilities
Share-based payments
Secretarial costs
Travel and accommodation
Other expenses
R&D Tax rebate
Loss after income tax
As at 30 June 2020
Segment assets
Unallocated assets
Trade and other receivables
Plant and equipment
Total Assets
Segment asset increases for the period:
Capital expenditure
Impairment of exploration assets
Segment liabilities
Unallocated liabilities
Trade and other payables
Provisions
Convertible notes
Financial liabilities
Total liabilities
43 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Uranium
$
Vanadium
$
Gold and Base
Metals
$
Corporate
$
Total
$
-
-
(2,616,725)
(59,600)
-
-
16,638
16,638
16,638
(2,659,687)
(41,192)
(3,565)
(699,069)
(1,280)
-
(1,211,086)
(61,234)
(829,502)
(67,847)
(231,292)
(282,741)
(12,807)
(59,863)
285,168
(5,875,997)
11,769,138
7,220,847
747,766
234,689
19,972,440
598,880
(2,616,725)
(2,017,845)
91,867
360,160
(44,344)
315,816
35,136
253,179
-
253,179
145,709
-
-
-
-
169,618
499
20,142,557
1,212,219
(2,661,069)
(1,448,850)
272,712
633,055
138,603
310,000
34,445
1,388,815
For the year ended 30 June 2019
Segment revenue
Segment result
Amounts not included in segment results but reviewed by the board:
Expenses not directly allocable to identifiable segments
Accounting and audit fees
Depreciation
Employee expense benefits expense
Exchange fluctuation
Exploration expenditure related to project generation
Finance costs
Insurances
Consulting and advisory fees
Rent and utilities
Share-based payments
Secretarial costs
Travel and accommodation
Other expenses
R&D Tax rebate
Loss after income tax
As at 30 June 2019
Segment assets
Unallocated assets
Trade and other receivables
Plant and equipment
Total Assets
Segment asset increases for the period:
Capital expenditure
Impairment of exploration assets
Segment liabilities
Unallocated liabilities
Trade and other payables
Provisions
Convertible notes
Financial liabilities
Total liabilities
44 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Uranium
$
Vanadium
$
Gold and Base
Metals
$
Corporate
$
Total
$
-
-
-
(383,650)
-
-
32,293
32,293
32,293
(351,357)
(80,600)
(7,660)
(895,326)
30,327
(35,635)
(149,067)
(58,590)
(487,551)
(68,229)
(530,832)
(189,874)
(70,707)
(43,843)
42,682
(2,896,262)
11,170,258
6,860,687
494,587
702,746
19,228,278
2,168,212
-
2,168,212
152,701
1,100,746
(179,152)
921,594
53,450
258,787
-
258,787
71,295
-
-
-
-
70,590
4,064
19,302,932
3,527,745
(179,152)
3,348,593
277,446
258,808
78,840
1,388,431
266,667
2,270,192
NOTES TO THE FINANCIAL STATEMENTS
Note 5
Total revenue and other income
Other income
Other income
Interest on short-term deposits
Note 6
Income tax
Income tax expense (benefit)
Current tax
Deferred tax
Tax rebate for research and development
Deferred income tax expense included in income
tax expense comprises
Increase/(decrease) in deferred tax assets
(Increase)/decrease in deferred tax liabilities
Reconciliation of income tax expense to
prima facie tax payable
Accounting profit/(loss)
At the statutory income tax rate
applicable to the Company 27.5%
Tax losses for the current year for which
no deferred tax asset is recognised
Equity raising costs
Finance costs
Impairment of exploration expenditure previously
capitalised
Share-based payments
Other
less rebates:
Tax rebate for research and development
Income tax expense/(benefit)
30 June
2020
$
2019
$
84,772
1,416
86,188
23,357
8,936
32,293
30 June
2020
$
2019
$
-
-
285,168
285,168
-
-
42,682
42,682
-
-
-
-
-
-
30 June
2020
$
2019
$
(6,161,165)
(2,938,944)
(1,694,320)
(808,210)
595,771
(27,500)
330,299
731,793
63,605
352
(285,168)
(285,168)
602,072
(27,500)
36,932
49,267
145,979
1,460
(42,682)
(42,682)
The applicable weighted average effective tax rates attributable to operating profit for the financial
year was Nil (2019: Nil).
The balance of the franking account at the end of the financial year was Nil (2019: Nil)
45 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Deferred tax assets
Tax losses
Provisions and accruals
Other
Set-off deferred tax liabilities
Net deferred tax assets
less Deferred tax assets not recognised
Net tax assets
Deferred tax liabilities
Exploration expenditure
Set-off deferred tax assets
net deferred tax liabilities
Tax losses
Unused tax losses for which no deferred tax
asset has been recognised that may be utilised
to offseet tax liabilities:
Revenue losses
capital losses
$
$
5,200,982
(97,546)
91,642
5,195,078
-
5,195,078
(5,195,078)
-
5,270,331
(12,467)
(12,404)
5,245,460
-
5,245,460
(5,245,460)
-
-
-
-
-
-
-
17,625,779
2,083,905
19,709,684
17,450,851
2,083,905
19,534,756
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward
have not been brought to account at 30 June 2020 because the directors do not believe it is
appropriate to regard realisation of the deferred tax assets as probable at this point in time. These
benefits will only be obtained if:
i. The Group derives future assessable income of a nature and of an amount sufficient to enable
the benefit from the deductions for the loss and exploration expenditure to be realised.
ii. The group continues to comply with conditions for deductibility imposed by law,
iii. No changes in tax legislation adversely affect the Group in realising the benefits from the
deductions for the loss and exploration expenditure.
46 | P a g e
Note 7
Earnings per share
NOTES TO THE FINANCIAL STATEMENTS
2020
$
2019
$
Loss from continuing operations for the year
(5,875,997)
(2,896,262)
Weighted average number of ordinary shares
outstanding during the year used in calculation of
basic EPS
1,592,529,515
1,109,267,274
No
No
Basic and diluted earnings per share (cents
per share)
(0.37)
(0.26)
Note 8
Dividends paid and proposed
No dividends were paid during the financial year and no dividend is proposed to be paid as at the
end of the financial year, 30 June 2020.
Note 9
Cash and cash equivalents
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and
liabilities are disclosed in Note 3 Financial Risk Management.
Note 10
Receivables-current
Value-added tax receivables
Other
30 June
2020
$
2019
$
77,752
-
77,752
37,294
-
37,294
Value-added tax is the generic term, for broad-based consumption taxes that the Group is exposed
to in Australia (GST); Mauritania (VAT) and Sweden (MoMS).
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and
liabilities are disclosed in Note 3 Financial Risk Management.
Receivables are non-interest bearing and are generally on 30 to 90-day terms.
Note 11
Financial assets
30 June
2020
$
2019
$
Bonds
91,866
57,710
On the grant by the Government of Mauritania of an exploration licence the Group is required to
provide a bank guarantee to the Government for the fulfilment of its proposed exploration
programme with the bond returned to the Group on relinquishment of the tenement or
transformation of the tenement into an exploitation licence.
47 | P a g e
Other bonds relate to leases of premises.
Note 12
Plant and equipment
Non-current
Plant and equipment
Accumulated depreciation
Movements in carrying amounts
Balance at the beginning of the year
Additions
Depreciation
Note 13
Exploration and evaluation
NOTES TO THE FINANCIAL STATEMENTS
30 June
2020
$
2019
$
30,420
(29,921)
499
4,064
-
(3,565)
499
30,420
(26,356)
4,064
8,124
3,600
(7,660)
4,064
30 June
2020
$
2019
$
At start of financial year
Expenditure capitalised during the financial year
Effect of exchange rate changes on exploration
and evaluation assets
Impairment
At end of financial year
21,008,293
1,252,969
17,687,868
3,359,505
137,558
(2,661,069)
19,737,751
140,072
(179,152)
21,008,293
The carrying value of exploration and
evaluation expenditure at balance date is
represented by the following projects:
Tiris uranium
Haggan vanadium
Tasiast South gold
11,769,138
7,220,847
747,766
19,737,751
13,779,959
6,733,747
494,587
21,008,293
a. The value of the Group interest in exploration expenditure is dependent upon:
• The continuance of the Group’s rights to tenure of the areas of interest;
• The results of future exploration; and
• The recoupment of costs through successful development and exploitation of the areas of
interest, or alternatively, by their sale.
The Group’s exploration properties may be subjected to claim(s) under Native Title (or jurisdictional
equivalent), or contain sacred sites, or sites of significance to the indigenous people of Sweden and
Mauritania.
As a result, exploration properties or areas within the tenements may be subject to exploration
restrictions, mining restrictions and/or claims for compensation. At this time, it is not possible to quantify
whether such claims exist, or the quantum of such claims.
48 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
On 22 May 2018, the Group lodged exploitation applications for Ain Seder, Oued El Foule Est and
Oum Ferkik.
The Islamic Republic of Mauritania granted exploitation licences for the Ain Sder and Oued El Foule Est
on 9 February 2019. The Group is in discussions with the government to secure an exclusivity over the
Oum Ferkik tenement.
The pandemic has prevented the Group from undertaking negotiations of an exclusivity over the Oum
Ferkik tenement and as a consequence the board of directors decided to recognise an impairment of
the carrying value of the Oum Ferkik tenement of $2.508 million. The board of directors believes its
relationship with the government will result in it eventually securing an exclusivity and noted that the
government had not revoked the Oum Ferkik tenement due to the representations made by the Group
to secure the exclusivity.
The group also impaired the carrying value of the Aguelet tenement as it proposes to relinquish this
tenement.
Note 14
Payables-current
Trade payables
Accrued expenses
Other taxes payable
30 June
2020
$
2019
$
342,978
381,564
35,516
760,058
145,883
303,040
16,036
464,959
Trade payables are non-interest bearing and arise from the usual operating activities of the Group.
Trade and other payables are usually settled within the lower of terms or 30 days.
Due to the short-term nature of these payables, the carrying amounts recorded in the financial
statements for trade payables and other payables are the fair values.
The Group’s exposure to interest rate risk and a sensitivity analysis for financial assets and
liabilities are disclosed in Note 3 Financial Risk Management.
Note 15
Provisions-current
30 June
2020
$
2019
$
Employee benefits
117,108
63,499
Note 16
Financial liabilities
30 June
2020
$
2019
$
Conversion rights
34,445
266,667
On 30 April 2019, the Group entered into a Convertible Security Financing Agreement with Lind
Global Marco Fund LP and on 18 November 2019, the Group entered into the Follow-on
Convertible Security Financing Agreement with Lind. On applicable of AASB 9 Financial
49 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Instruments the Group accounted for Convertible Security Financing on a present value basis and
recognised the implicit value of conversion rights granted to Lind Global Macro Fund LP under both
facilities.
During the financial year Lind converted $2,510,000 in convertible notes into fully paid ordinary
shares and accordingly, the Group recognised $278,889 of the conversion rights as other
contributed equity.
Note 17
Vendor obligations
30 June
2020
$
2019
$
Vendors of Nomads Mining Company sarl
145,709
71,295
On 11 June 2019, the Group executed a Binding Term Sheet (see ASX Announcement, dated 11
June 2019) with the shareholders of Nomads Mining Company sarl, an entity incorporated in
Mauritania, to acquire a 70% equity interest in Nomads Mining Company sarl and on 26 June 2019
the Group and the shareholders of Nomads Mining Company sarl executed a Farm-in and Joint
Venture Agreement. Under the terms and conditions of the above agreement, the Group agreed to
the shareholders an entry fee of US$25,000 in cash and the Australian dollar equivalent of
US$25,000 in fully paid ordinary shares.
Nomads Mining Company sarl is the holder of Exploration Licence 2688 Nderik.
The Company extinguished the first instalment of the Entry Fee by both cash payment on 4 July
2019 and issue of share on 12 July 2019. Since balance date, 30 June 2020, the Company has
extinguished the Second and Third Entry Fee obligations with cash payments on 8 and 9
September 2020.
Note 18
(a) Borrowings
Borrowings
Current portion
Non-current portion
Opening balance
Drawdowns
Repayments
Closing balance
Present value
Finance costs
30 June
2020
$
2019
$
-
-
-
-
250,000
(250,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The Company completed a drawdown from Lind Global Macro Fund LP of a R&D Loan on 23
September 2019 and repaid the monies borrowed on 31 December 2019 from monies rebated by
the Commonwealth of Australia for research and development activities undertaken by Australian
organisations on work programmes at the Haggan and Tiris projects.
The interest paid on the borrowing was $21,275.
50 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
(b) Convertible notes
Convertible note
Current portion
Non-current portion
Opening balance
Notes issued
Conversion rights
Options over ordinary shares
Conversion of convertible notes into fully paid
ordinary shares
Finance cost
Closing balance
Present value
Finance costs
30 June
2020
$
2019
$
310,000
-
310,000
1,388,431
350,000
(46,667)
(52,825)
(2,510,000)
1,181,061
310,000
310,000
-
310,000
694,215
694,216
1,388,431
-
2,000,000
(266,667)
(429,200)
-
84,298
1,388,431
1,388,431
1,011,569
2,400,000
On 30 April 2019, the Group entered into the Convertible Security Facility Agreement with Lind
Global Macro Fund, LLP (see ASX Announcement, dated 30 April 2019) and a Follow-on
Convertible Security Facility Agreement on 18 November 2019 (see ASX announcement, dated 18
November 2019). Pursuant to the terms and conditions the Group issued a convertible note with a
face value of $2,400,000 to Lind under the Convertible Security Facility Agreement and $420,000
under the Follow-on Convertible Security Facility Agreement.
On 19 June 2019, the Company held a general meeting to seek approval for, amongst other
resolutions, the issuance of the Replacement Convertible Note to the Investor. All resolutions were
passed at the general meeting (see ASX Announcement, dated 20 June 2019). On 31 January
2020, the Company held a general meeting to seek approval for the issuance of the Follow-on
Replacement Convertible Security Facility Agreement (ss ASX announcement, dated 31 January
2020).
Under the terms and conditions of the Convertible Security Facility Agreement, Lind is entitled to
convert a maximum of $100,000 of convertible notes each month at 1.6 cents per share or 90% of
the average 5 daily VWAPs chosen by Lind from the daily VWAPs for the 20 trading days
immediately prior to the conversion notice date. Under the terms and conditions of the Follow-on
Convertible Security Facility Agreement, Lind is entitled to convert a maximum of $25,000 of
convertible notes each month at 90% of the average 5 daily VWAPs chosen by Lind from the daily
VWAPs for the 20 trading days immediately prior to the conversion notice period.
At a Market Capitalisation Conversion Price Period starting when the Market Capitalisation is less
than A$9,000,000 for five (5) consecutive Trading Day and ending when the Market Capitalisation
is subsequently more than A$9,000,000 for five (5) consecutive Trading Days (after the end of the
fifth consecutive Trading Day on which this occurs), the aggregate conversion amount of $125,000
can be exceeded.
The Group issued Lind under the Convertible Security Facility Agreement 50,000,000 Collateral
Shares and 62,500,000 options over ordinary shares. On the Group fulfilling its obligations under
the convertible note and repaying the convertible note in full by way of the issue of shares or
payment of cash, Lind will transfer that number of Collateral Shares to the Group for no
consideration to or at the direction of the Company; or, subject to the shares trading on ASX on the
51 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
relevant day and trading for at least 5 trading days prior to payment, pay the Company in
immediately available funds an amount equal to the outstanding Collateral Shareholding number
multiplied by the Collateralisation Price. The Group also issued Lind under the Follow-on
Convertible Security Facility Agreement 8,750,000 Collateral Shares and 20,000,000 options over
ordinary shares.
The options over ordinary shares under the Convertible Security Facility Agreement expire 3 years
from the date of issue and have an exercise price of 1.6 cents per option over ordinary share and
the options over ordinary shares under the Follow-on Convertible Security Facility Agreement
expire 3 years from the date of issue and an exercise price of 0.754 cents per option over ordinary
share.
In total, Lind has converted $2,510,000 convertible notes and with a further $310,000 convertible
notes available for conversion. The Company has issued Lind 912,599,210 fully paid ordinary
shares under the convertible note facilities.
Grant date
Details
Exercise
Price (cents)
Share
Price @
date of
grant
(cents)
Expected
Volatility
Expiry
Date
Risk-free
Interest
rate
Value/
option
Number/
options
18/11/2019
30/4/2019
Follow-on
Convertible Security
Funding Agreement
Convertible Security
Funding Agreement
0.7540
1.0000
100% 18/11/2022
1.75%
52,825 20,000,000
1.6000
1.0000
100% 30/04/2022
1.75% 429,200 62,500,000
Note 19
Provisions-non-current
Employee benefits
21,495
15,341
30 June
2020
$
2019
$
52 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note 20
Contributed equity
a. Equity raised during the financial year
The Company has issued share capital amount to
2,557,535,966 (2019: 1,223,891,343) fully paid
ordinary shares at no par value
Equity raised during the financial year
At the beginning of the reporting period
Shares issued during the year:
2,000,001 shares issued on 19 September 2018
1,441,425 shares issued on 19 September 2018
852,381 shares issued on 19 November 2018
17,500,000 shares issued on 4 January 2019
20,750,000 shares issued on 12 February 2019
4,687,500 shares issued on 25 February 2019
13,687,000 shares issued on 22 March 2019
26,890,922 shares issued on 22 April 2019
50,000,000 shares issued on 30 April 2019
4,600,229 shares issued on 22 May 2019
2,261,872 shares issued on 29 May 2019
9,828,718 shares issued on 29 May 2019
11,111,111 shares issued on 12 July 2019
5,000,000 shares issued on 12 July 2019
3,251,773 shares issued on 12 July 2019
1,893,233 shares issued on 12 July 2019
1,931,218 shares issued on 12 August 2019
14,285,715 shares issued on 4 September 2019
2,041,281 shares issued on 4 September 2019
16,666,667 shares issued on 24 September 2019
18,811,250 shares issued on 24 September 2019
2,021,250 shares issued on 24 September 2019
14,285,715 shares issued on 27 October 2019
8,750,000 shares issued on 18 November 2019
33,333,334 shares issued on 20 December 2019
66,666,668 shares issued on 23 December 2019
105,416,664 shares issued on 14 January 2020
11,164,037 shares issued on 10 February 2020
48,750,000 shares issued on 18 February 2020
4,193,788 shares issued on 1 March 2020
50,000,000 shares issued on 9 March 2020
50,000,000 shares issued on 18 March 2020
50,000,000 shares issued on 18 March 2020
62,500,000 shares issued on 8 April 2020
5,807,178 shares issued on 20 April 2020
60,000,000 shares issued on 24 April 2020
115,000,000 shares issued on 26 April 2020
120,000,000 shares issued on 8 May 2020
63,263,741 shares issued on 13 May 2020
280,000,000 shares issued on15 May 2020
90,000,000 shares issued on 17 May 2020
17,500,000 shares issued on 18 May 2020
Transaction costs relating to share issues
At reporting date
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
x
y
z
aa
ab
ac
ad
ae
af
ag
ah
ai
aj
ak
al
am
an
ao
ap
30 June
2020
$
2019
$
50,967,094
46,315,150
46,315,150
44,698,295
-
-
-
-
-
-
-
-
-
-
-
-
100,000
105,000
36,127
21,564
21,475
100,000
22,209
100,000
150,490
16,170
100,000
0
100,000
200,000
474,375
89,312
195,000
33,550
200,000
200,000
200,000
125,000
24,973
120,000
230,000
330,000
240,402
560,000
180,000
385,000
4,660,647
(8,703)
4,651,944
50,967,094
40,000
33,081
16,707
385,000
332,000
75,000
219,000
322,691
-
63,483
21,777
108,116
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,616,855
-
1,616,855
46,315,150
53 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
30 June
2020
No
2019
No
1,223,891,343
1,069,390,795
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
x
y
z
aa
ab
ac
ad
ae
af
ag
ah
ai
aj
ak
al
am
an
ao
ap
-
-
-
-
-
-
-
-
-
-
-
-
11,111,111
5,000,000
3,251,773
1,893,233
1,931,218
14,285,715
2,041,281
16,666,667
18,811,250
2,021,250
14,285,715
8,750,000
33,333,334
66,666,668
105,416,664
11,164,037
48,750,000
4,193,788
50,000,000
50,000,000
50,000,000
62,500,000
5,807,178
60,000,000
115,000,000
120,000,000
63,263,741
280,000,000
90,000,000
17,500,000
1,333,644,623
2,000,001
1,441,425
852,381
17,500,000
20,750,000
4,687,500
13,687,500
26,890,922
50,000,000
4,600,229
2,261,872
9,828,718
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
154,500,548
2,557,535,966
1,223,891,343
Ordinary shares on issue at the start of the
financial year
Shares issued during the year
2,000,001 shares issued on 19 September 2018
1,441,425 shares issued on 19 September 2018
852,381 shares issued on 19 November 2018
17,500,000 shares issued on 4 January 2019
20,750,000 shares issued on 12 February 2019
4,687,500 shares issued on 25 February 2019
13,687,000 shares issued on 22 March 2019
26,890,922 shares issued on 22 April 2019
50,000,000 shares issued on 30 April 2019
4,600,229 shares issued on 22 May 2019
2,261,872 shares issued on 29 May 2019
9,828,718 shares issued on 29 May 2019
11,111,111 shares issued on 12 July 2019
5,000,000 shares issued on 12 July 2019
3,251,773 shares issued on 12 July 2019
1,893,233 shares issued on 12 July 2019
1,931,218 shares issued on 12 August 2019
14,285,715 shares issued on 4 September 2019
2,041,281 shares issued on 4 September 2019
16,666,667 shares issued on 24 September 2019
18,811,250 shares issued on 24 September 2019
2,021,250 shares issued on 24 September 2019
14,285,715 shares issued on 27 October 2019
8,750,000 shares issued on 18 November 2019
33,333,334 shares issued on 20 December 2019
66,666,668 shares issued on 23 December 2019
105,416,664 shares issued on 14 January 2020
11,164,037 shares issued on 10 February 2020
48,750,000 shares issued on 18 February 2020
4,193,788 shares issued on 1 March 2020
50,000,000 shares issued on 9 March 2020
50,000,000 shares issued on 18 March 2020
50,000,000 shares issued on 18 March 2020
62,500,000 shares issued on 8 April 2020
5,807,178 shares issued on 20 April 2020
60,000,000 shares issued on 24 April 2020
115,000,000 shares issued on 26 April 2020
120,000,000 shares issued on 8 May 2020
63,263,741 shares issued on 13 May 2020
280,000,000 shares issued on15 May 2020
90,000,000 shares issued on 17 May 2020
17,500,000 shares issued on 18 May 2020
Ordinary shares on issue at the end of the
financial year
The details of each issue of shares are as follows:
a Exercise of options over ordinary shares (expiry 15 November 2018)
b
Issue of shares for settlement of supplier obligations
Issue of shares for settlement of supplier obligations
c
d Conversion of performance rights into ordinary shares
e
Issue of shares pursuant to private placement
54 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Issue of shares pursuant to private placement
Issue of shares under terms and conditions of share purchase plan
Issue of shares for settlement of supplier obligations
Issue of collateral shares to Lind Global Macro Fund LP
Issue of shares for services under Letter of Engagement
Issue of shares for services under Letter of Engagement
Issue of shares pursuant to securing option of gold exploration licence in Mauritania
Issue of shares on conversion of performance rights
Issue of shares pursuant to securing Farm-in and Joint Venture with Nomads Mining Co sarl
Issue of shares for services under Letter of Engagement
Issue of shares for services under Letter of Engagement
Issue of shares on conversion of convertible notes
Issue of shares for services under Letter of Engagement
Issue of shares on conversion of convertible notes
Issue of shares for settlement of supplier obligations
Issue of shares for services as Joint Broker
Issue of shares on conversion of convertible notes
Issue of shares on conversion of convertible notes
Issue of shares on conversion of convertible notes
Issue of shares on conversion of convertible notes
f
g
h
i
j
k
l
m Issue of shares on conversion of convertible notes
n
o
p
q
r
s
t
u
v
w
x
y
z
aa Issue of shares pursuant to Share Placement
ab Issue of shares for services under Letter of Engagement
ac Issue of shares on conversion of convertible notes
ad Issue of shares for services under Letter of Engagement
ae Issue of shares on conversion of convertible notes
af Issue of shares on conversion of convertible notes
ag Issue of shares pursuant to Share Placement
ah Issue of shares on conversion of convertible notes
ai Issue of shares for services under letter of Engagement
aj Issue of shares on conversion of convertible notes
ak Issue of shares on conversion of convertible notes
al Issue of shares pursuant to Share Placement
am Issue of shares for settlement of contract employee, consultants and drilling contractor
obligations
an Issue of shares on conversion of convertible notes
ao Issue of shares on conversion of convertible notes
ap Issue of shares on conversion of performance rights
Ordinary shares
Ordinary shares have the rights to receive dividends as declared and, in the event of winding up,
participate in the proceeds from the sale of all surplus assets in proportion to the number of, and
amounts paid up on, the shares held.
Each fully paid ordinary share carries one vote.
Ordinary shares issued to shareholders since incorporation have had no par value.
Options over ordinary shares
There are no options over ordinary shares on issue.
Performance rights
At the general meeting of shareholders on the 30 November 2017, the Executive Chairman of the
Company was awarded 35,000,000 performance rights with 17,500,000 vesting on 30 November
2018 and the remainder on the 30 November 2019.
On 17 June 2018, Messrs NJ Clifford, WR Goodall and JM Madden were each awarded 5,000,000
performance rights with 33.3% vesting on 17 June 2019, 33.3% vesting on 17 June 2020 and
33.4% vesting on 17 June 2021.
55 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
The group has accounted for the above-mentioned performance rights in accordance with AASB 2
Share-based payments.
b. Options over ordinary shares and performance rights on issue
For information relating to the Aura Energy Limited employee options scheme, including details of
options issued, issued and lapsed during the financial year, and the options outstanding at balance
date, refer to Note 29 Share-based payments. The total number of options and performance rights on
issue is as follows:
30 June
2020
$
2019
$
10,000,000
118,797,598
-
128,797,598
27,500,000
214,815,732
6,578,699
248,894,431
Performance shares
Unlisted options over ordinary shares
Unlisted warrants over ordinary shares
c. Capital management
i. Capital management policy
The directors’ objectives when managing capital are to ensure that the Group can fund its
operations and continue as a going concern, so that they may continue to provide returns for
shareholders and benefits for other stakeholders.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have
ready access to credit facilities, with the primary source of funding being equity raisings. Therefore,
the focus of the Group’s capital risk management is the current working capital position against the
requirements of the Group to meet exploration programmes and corporate overheads.
The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating
requirements, with a view to initiating appropriate capital raisings as required.
ii. Current ratio
The current ratio the Group at 30 June 2020 and 30 June 2019 was as follows:
30 June
2020
$
2019
$
Current ratio
(2.53)
1.51
56 | P a g e
iii. Working capital position
Financial assets
Cash and cash equivalents
Receivables
Financial assets
Trade and other payables
Provisions
Vendor obligation
Working capital surplus/(deficit)
Note 21
Other contributed equity
NOTES TO THE FINANCIAL STATEMENTS
30 June
2020
$
2019
$
234,689
77,752
91,866
(760,058)
(117,108)
(145,709)
(618,568)
812,296
37,294
57,710
(464,959)
(63,499)
(71,295)
307,547
30 June
2020
$
2019
$
Opening balance
Proceeds from loyalty options
Conversion rights to ordinary shares recognised
as other contributed equity
Closing balance
-
78,167
278,889
357,056
-
-
-
-
Note 22
Reserves
a. Share-based payments reserve
30 June
2020
$
2019
$
855,670
52,825
231,292
-
-
(97,789)
(490,000)
551,998
280,638
429,200
530,832
-
-
-
(385,000)
855,670
30 June
2020
$
2019
$
418,159
357,749
177,157
595,316
60,410
418,159
Opening balance
Issue of options
Issue of performance shares
Cancellation of options
Expiry of options
Expiry of warrants
Conversion of performance shares
Closing balance
b. Translation
Opening balance
Translation of foreign currency financial
statements into the functional currency
Closing balance
57 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note 23
Accumulated losses
Balance at start of the financial period
Net loss for the year
Expiry of warrants over ordinary shares
Note 24
List of controlled entities
30 June
2020
$
2019
$
(27,939,514)
(5,875,997)
97,789
(33,717,722)
(25,043,252)
(2,896,262)
-
(27,939,514)
The financial statements include the financial statements of the parent entity and the controlled
entities listed in the following table:
Name
Country of
Incorporation
Vanadis Battery Metals AB
Sweden
Aura Energy Mauritania Pty Ltd
Tiris Ressources SA
Tiris International Mining Company
sarl
Australia
Mauritania
Mauritania
2020
100%
100%
85%
100%
2019
100%
100%
85%
100%
Note 25
Commitments
a. Exploration expenditure commitments
Exploration tenement minimum expenditure
2,023,145
677,084
118,057
1,751,392
153,696
2,023,145
109,139
311,804
256,141
677,084
Payable
not later than 12 months
between 12 months and 5 years
greayter than 5 years
The group does not have any expenditure
commitments under the terms and conditions of
the tenements it holds. The exploration
expenditure commitments relate to annual
renewal fees.
Commitments for between 12 months and 5
years includes Farm-in obligation to earn 70%
equity Interest in Nomads Mining Co sarl
b. Operating lease commitments
Operating leases contracted for or committed to
but not capitalised in the financial statements
36,016
88,991
Payable
not later than 12 months
between 12 months and 5 years
greayter than 5 years
36,016
-
-
36,016
52,975
36,016
-
88,991
58 | P a g e
Note 26
Events after balance date
NOTES TO THE FINANCIAL STATEMENTS
On 27 July 2020, the Group announced a proposed corporate transaction to separately fund its
Mauritanian gold assets. The original parties behind the transaction deal, the TSX-listed Chilean
Metals Inc, substituted the vehicle to undertake the transaction and as a result a privately-owned
vehicle Archean Gold Inc, will undertake an Initial Public Offering (IPO) on the TSX with the Aura
gold assets acquired on completion of the IPO.
.
The key items that have been completed are as follows:
•
•
•
•
•
•
Aura Energy has recently completed its final US$100,000 payment to Nomads Mining
Company sarl for its additional Joint Venture property
Archean Gold has successfully completed due diligence on Aura’s Tasiast South Gold
Project
Terry Lynch, CEO of Chilean Metals, has confirmed his role as Chairman of the new gold
vehicle, Archean Gold
A 43-101 Technical report has commenced, and a Qualified Person engaged with a site visit
to Mauritania to be undertaken shortly. The report will be ready prior to IPO.
Mackie Research Capital Corporation has been appointed to conduct the Archean Gold IPO
on the TSX
An initial C$500,000 of seed investment has now been committed pre-IPO, with those
investors agreeing to follow their investment into the IPO
The transaction envisages Aura progressively vending its Mauritanian gold and base metal licences
into Archean Gold for various staged payments. Archean Gold will receive payments totalling C$4.5
million before October 2021.
At the completion of that payment schedule transaction, Aura Energy will own 50% of Archean
Gold.
On 14 August 2020, the Company held an extraordinary general meeting of shareholders following
the receipt on 23 June 2020 of the second requisition by ASEAN Deep Value Fund for s.249D
shareholders meeting/
Immediately prior to the meeting, the Company lodged with the Supreme Court of Victoria a
request for specific orders to be made with the Company alleging that ASEAN and its two
principals, Messrs DE Roes and DP O’Neil; Pre-emptive Trading Pty Ltd and its principal, Mr JL
Bennett, a non-executive director of the Company; Mr Florian Hoertlehner; and Mr Axel Sartingen
and an entity controlled by Mr Sartingen, Milaco GmbH, held a relevant interest in each other’s
shares in the Company and accordingly, held greater than 19.9% of the total number of shares on
issue.
The Orders sought by the Company were set aside by the Supreme Court.
At the general meeting, the Chairman of the Company instructed Computershare Investor Services
Pty Ltd to reject the votes cast by Mr Sartingen and Milaco GmbH and as a result all the resolutions
put to shareholders by ASEAN at the general meeting were not carried.
On 28 August 2020, the Group arranged a short-term loan funding of $100,000 with Lind Global
Macro Fund LP for general corporate purposes. Under the terms and conditions of the loan facility,
the Company is required to repay, in cash, $127,000 on 31 December 2020. The terms are listed
below, and the funding does not include any securities.
The parties have extended the charge and security interest under the Convertible Security Facility
Agreement and Follow-on Security Facility Agreement, dated 30 April 2019, to the short-term loan.
59 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
On 31 August 2020, Mr Axel Sartingen lodged with the Australian Securities Exchange a
Substantial Shareholder Notice which disclosed that he held more than 5% of the total number of
shares on issue in excess of 5% from around March 2020 and therefore, acknowledged his
breached the Corporations Act 2001 (Cth).
On 31 August 2020, The Company entered into a Convertible Securities Agreement with L1 Capital
Global Opportunities Master Fund for $250,000 which will be used for general corporate purposes.
Under the terms and conditions of the Convertible Securities Agreement, the Company is required
to secure shareholder approval for the agreement.
The key terms of the Convertible Securities Agreement involve the issue of 250,000 convertible
securities at a face value of $1.25 per convertible security with maturity six months after the date of
issue of the Convertible Securities.
The Convertible Securities are convertible into fully paid Depositary Interest at a price of 0.4 pence
per Depositary Interest or the Australian dollar equivalent should the Investor wish to be issued
ordinary shares.
The Convertible Securities Agreement incurs a commitment of 3% of the proceeds from issue of
the Convertible Securities as well as two series of options. Series A Options represent 25,000,000
options over ordinary shares with an exercise price equal to the Conversion Price converted into
AUD using the Exchange Rate on the day immediately prior to the Execution Date and rounded
down to the nearest ($0.001) with an expiry date of 3 years from the date of issue. Series B
Options represent 25,000,000 Options with an exercise price equal to the closing VWAP on the
London Stock Exchange on the Actual Trading Day immediately prior to the date Shareholder
Approval is obtained converted into AUD using the Exchange Rate on the same day and rounded
down to the nearest ($0.001) and an expiry date of 3 years from the date of issue.
Note 27
Related party disclosures
Directors
The directors of the parent entity during the financial period were:
PD Reeve
R Beeson
JL Bennett (appointed 6 January 2020)
RC Craigie (appointed 8 May 2020)
BF Fraser (resigned 18 November 2019)
PD Heber (appointed 8 May 2020)
JC Perkins
Transactions between related parties are on normal commercial terms and conditions no more
favourable than those available to other parties unless otherwise stated.
Other transactions with key management personnel are set out in the Remuneration Report. There
are no other related party transactions.
60 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note 28
Cash flow statement reconciliation
Net loss after tax
Adjusted for:
Depreciation
Exchange fluctuation
Exploration and evaluation expenditure
capitalised and included in operating cash flows
Finance costs
Impairment
Payments to employees and consultants by way
of the issue of shares
Provisions
Share-based payments
Other
Changes in other current assets and current
liabilities
Current assets
Receivables
Current liabilities
Payables
Note 29
Share-based payments
Options over ordinary shares
Performance rights
Closing balance
30 June
2020
$
2019
$
(5,875,997)
(2,896,262)
3,565
1,280
7,660
(30,327)
(961,815)
1,181,061
2,661,069
359,752
59,763
231,292
8,750
(2,912,693)
134,298
179,152
135,048
50,435
530,832
-
(74,614)
18,657
414,479
(1,991,415)
108,600
(4,674,600)
30 June
2020
$
2019
$
-
231,292
231,292
-
530,832
530,832
a. On 30 November 2017, shareholders approved the award of 35,000,000 performance rights to Mr
PD Reeve pursuant to an amendment to the Contract of Employment agreed between the Company
and Mr PD Reeve on 9 February 2015:
The following tranches set out the vesting periods for the award of performance rights to Executive
Chairman and Managing Director of the Company:
•
•
17,500,000 will vest on 30 November 2018.
17,500,000 will vest on 30 November 2019.
$132,129 (2019: $362,832) was the deemed cost of the performance rights for the financial year. The
performance rights hold no voting or dividend rights and are not transferable.
b. On 17 June 2018, the Company approved the award of 15,000,000 performance rights to Messrs NJ
Clifford and JM Madden and Dr WR Goodall with the board of directors ratifying the award on 4
September 2018. The performance rights were awarded under the Employee Share Plan.:
The following tranches set out the vesting periods for the award of performance rights to the above-
mentioned management of the Company:
61 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
•
•
•
5,000,000 will vest on 17 June 2019.
5,000,000 will vest on 17 June 2020.
5,000,000 will vest on 17 June 2021.
$99.163 (2019: $168,000 was the deemed cost of the performance rights for the financial year. The
performance rights hold no voting or dividend rights and are not transferable.
c. Summary of options over ordinary shares issued as share-based payments
2020
2019
Weighted
average
exercise
price
Number of
options
Number of
options
Weighted
average
exercise price
Outstanding at start of the
financial year
Issued
Expired
Cancelled
Outstanding at the end of
the financial year
77,999,053
20,000,000
(15,499,053)
-
0.0183
0.0075
(0.0275)
-
15,499,053
62,500,000
-
-
82,500,000
0.0139
77,999,053
0.1018
0.0160
-
-
0.0183
The weighted average remaining contractual life of options outstanding at year end is 2.5 years
(2019: 2.23 years).
The weighted average exercise price of outstanding shares at the end of the reporting period is
$0.0139 (2019: $0.0183).
d. Summary of performance rights issued as share-based payments
2020
2019
Number of
performance
shares
Weighted
average
price
Number of
performance
shares
Weighted
average price
Outstanding at start of the
financial year
Issued
Converted
-
Outstanding at the end of
the financial year
32,500,000
-
(22,500,000)
-
0.0217
-
0.0217
-
32,500,000
-
-
-
0.0217
-
-
-
10,000,000
0.0210
32,500,000
0.0217
Convertible at year end
5,000,000
0.0210
5,000,000
0.0210
e. Fair value of warrants granted
Aura Energy Limited granted WH Ireland 6,578,699 3-year warrants at an exercise price of 2
cents per warrant over ordinary share on 12 September 2016. The share price on the date
of grant of the warrants was 2.5 cents per share with a volatility of 84% and a risk-free rate of
2%.
The warrants expired on 12 September 2019.
62 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note 30
Key management personnel
Details of key management personnel
Executive Chairman
PD Reeve
Non-executive directors
R Beeson
JL Bennett (appointed 6 January 2020)
RC Craigie (appointed 8 May 2020)
BF Fraser (resigned 18 November 2019)
PD Heber (appointed 8 May 2020)
JC Perkins
Company Secretary
JM Madden
Compensation of key management personnel
Compensation paid to key management personnel is as follows:
Short-term employee benefits
Post-employment benefits
Share-based payments in equity
Share-based payments in options
Share-based payments in performance shares
30 June
2020
$
2019
$
516,116
36,440
95,500
-
165,183
813,239
696,300
36,400
-
-
418,832
1,151,532
63 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note 31
Parent entity
a. Financial position of Aura Energy Limited
Note
30 June
2020
$
2019
$
Assets
Current assets
Cash and cash equivalents
Trade current assets
Financial assets
Total current assets
Non-current assets
Plant and equipment
Financial assets
Other assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Financial liabilities
Vendor consideration
Borrowings
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Total liabilities
Net assets
Equity
Share Capital
Other contributed equity
Reserves
Accumulated losses
Total equity
64 | P a g e
30b
205,457
65,965
91,866
363,288
812,296
37,294
57,710
907,300
499
7,588,579
12,155,055
19,744,133
4,064
7,927,227
13,113,116
21,044,407
20,107,421
21,951,707
724,922
117,108
34,445
145,709
310,000
1,332,184
497,009
63,499
266,667
71,295
694,215
1,592,685
-
21,495
21,495
694,216
15,341
709,557
1,353,679
2,302,242
18,753,742
19,649,465
50,967,094
357,056
690,030
(33,260,438)
18,753,742
46,315,150
.-
1,378,701
(28,044,386)
19,649,465
b. Financial assets
Loans to controlled entities
Shares in controlled entities at cost
c. Financial performance
Loss for year
Other comprehensive income
Total comprehensive income
NOTES TO THE FINANCIAL STATEMENTS
Note
30 June
2020
$
2019
$
30a
30a
30a
7,321,317
267,262
7,588,579
7,659,965
267,262
7,927,227
Note
30 June
2020
$
2019
$
(5,216,052)
-
(5,216,052)
(3,285,592)
-
(3,285,592)
d. Guarantees entered into by Aura Energy Limited for the debts of its controlled entities
There are no guarantees entered into by Aura Energy Limited for the debts of its controlled
entities as ay 30 June 2020 (2019: Nil).
e. Contingent liabilities of Aura Energy Limited
The are no other contingent liabilities as at 30 June 2020 other than the contingent liabilities set
out in Note 33 Contingent liabilities.
f. Commitments by Aura Energy Limited
65 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Note
30 June
2020
$
2019
$
2,023,145
677,084
118,057
1,751,392
153,696
2,023,145
109,139
311,804
256,141
677,084
36,016
88,991
36,016
-
-
36,016
52,975
36,016
-
88,991
30 June
2020
$
2019
$
41,192
-
1,600
42,792
46,053
-
3,200
49,253
a. Exploration expenditure commitments
Exploration tenement minimum expenditure
Payable
not later than 12 months
between 12 months and 5 years
greayter than 5 years
The group does not have any expenditure
commitments under the terms and conditions of
the tenements it holds. The exploration
expenditure commitments relate to annual
renewal fees.
b. Operating lease commitments
Operating leases contracted for or committed to
but not capitalised in the financial statements
Payable
not later than 12 months
between 12 months and 5 years
greater than 5 years
Note 32
Auditor’s remuneration
Amounts paid or due for payable to
Bentleys
Audit or review of the financial report
- amounts relating to previous year
Other services
Note 33
Contingent liabilities
Geogruppen I Goteburg AB
The Company executed a Drilling Services Agreement with Geogruppen on 14 February 2019.
Geogruppen agreed to have drilling invoices settled by way of the issue of fully paid ordinary
shares in the Company. The Company agreed to pay the face value of all Swedish Kroner
submitted by Geogruppen and therefore, any difference between the proceeds on sale of its shares
and the face value of the invoices will be reimbursed by the Company.
At the date of this annual report, Geogruppen has not sold any shares issued to each party under
their respective Drilling Settlement Agreements.
Nomads Mining Company sarl
On 11 June 2019, the Group executed a Binding Term Sheet (see ASX Announcement, dated 11
June 2019) with the shareholders of Nomads Mining Company sarl, an entity incorporated in
Mauritania, to acquire a 70% equity interest in Nomads Mining Company sarl and on 26 June 2019
the Group and the shareholders of Nomads Mining Company sarl executed a Farm-in and Joint
Venture Agreement.
66 | P a g e
NOTES TO THE FINANCIAL STATEMENTS
Under the terms and conditions of the above agreement, the Group agreed to pay the shareholders
of Nomads an entry fee of US$150,000. The first entry fee of US$25,000 in cash and the
Australian dollar equivalent of US$25,000 in fully paid ordinary shares was paid on execution of the
agreement. The second instalment of the Entry Fee (US$50,000) is payable, no later than six
months after the date of execution and third instalment of the Entry Fee(US$50,000) by way of
either cash or fully paid ordinary is payable no later than twelve months from the date of execution.
The second and third Entry Fee are conditional on the Group continuing to exploration the ground
held by Nomads.
The Group paid the Entry Fees, in full on 8 and 9 September 2020.
On completion of US$1,000,000 exploration programme (the Farm-in Commitment) on the
tenement held by Nomads, the shareholders of Nomads will assign 70% of their uncertificated
equity interest in Nomads to the Group. On the Group being assigned the uncertificated equity
interest by the shareholders of Nomads, the Group and the existing shareholders of Nomads, will
form a joint venture with the Group to be appointed manager.
The Group will provide the shareholders of Nomads with a free-carry through to development and a
deferred carry following the decision to mine. The deferred carry is repayable with interest out of
dividends declared by nomads once in operations.
Tiris International Mining Company sarl
On 25 June 2016, the Group Tiris International Mining Company sari ("TIMCO") and Sid
Ahmed Mohamed Lemine Sidi Reyoug executed the Tasiast South sale and purchase agreement.
On 2 April 2019, TIMCO was granted tenements 2457 (Hadeibet Bellaa) and 2458 (Touerig Taet)
by the Ministry of Petroleum Energy and Mines.
Under the terms and conditions of the agreement if the Group proves up an 'Indicated Resource'
greater than one million ounces of gold it will be required to pay Sid Ahmed Mohamed US$250,000
and, on commencement of production, Aura is required to pay Sid Ahmed Mohamed US$5/ounce
of gold and a 0.4% net sales revenue royalty on other commodities with total royalty payments
capped to a maximum of US$5 million.
Note 34
Company details
The registered office and principal place of the Company is:
Level 1, 34-36 Punt Road, Windsor Victoria 3181
Telephone: +61 (0)3 9516 6500
Facsimile: +61 (0)3 9516 6565
Website: www.auraenergy.com.au
E-mail: info@auraenergy.com.au
67 | P a g e
DIRECTORS’ DECLARATION
In accordance with a resolution of the board of directors of Aura Energy Limited, I state that:
In the opinion of the board of directors:
(a)
financial statements, the accompanying notes to the financial statements and the additional
disclosures set out in the Directors’ Report are in accordance with the Corporations Act 2001,
including:
(i)
(ii)
giving a true and fair view of the Company’s financial position as at 30 June 2020 and of
their performance for the period ended on that date; and
complying with Australian Accounting Standards (including Australian Accounting
Interpretations) and Corporations Regulations 2001;
(b)
(c)
the financial statements and notes also comply with International Financial Reporting Standards as
issued by the International Accounting Standard Board, as disclosed in Note 1a; and
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
Signed on behalf of the Board of Directors
PD Reeve
Executive Chairman
Date 1 November 2020
68 | P a g e
Independent Auditor's Report
To the Members of Aura Energy Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Aura Energy Limited (“the Consolidated Entity”)
and its subsidiaries (“the Consolidated Entity”), which comprises the consolidated
statement of financial position as at 30 June 2020, the consolidated statement of profit or
loss and other comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to the
financial statements, including a summary of significant accounting policies, and the
directors’ declaration.
In our opinion:
a.
the accompanying financial report of the Consolidated Entity is in accordance with
the Corporations Act 2001, including:
(i)
giving a true and fair view of the Consolidated Entity’s financial position as
at 30 June 2020 and of its financial performance for the year then ended;
and
(ii)
complying with Australian Accounting Standards and the Corporations
Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards
as disclosed in Note 1(a)(i).
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 Consolidated Entity 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.
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
Material Uncertainty Related to Going Concern
We draw attention to Note 1(a)(iii) in the financial report which indicates that the Consolidated Entity incurred a
net loss of $5,875,997 during the year ended 30 June 2020. As stated in Note1(a)(iii) , these events or
conditions, along with other matters as set forth in Note 1(a)(iii) , indicate that a material uncertainty exists that
may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our opinion is
not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report of the current period. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Key audit matter
How our audit addressed the key audit matter
Exploration and Evaluation Expenditure –
$19,737,751
Our procedures included, amongst others:
(Refer to Note 13)
Exploration and evaluation is a key audit matter due
to:
The significance of the balance to the
Consolidated Entity’s consolidated financial
position.
The level of judgement required in evaluating
management’s application of the requirements of
AASB 6 Exploration for and Evaluation of
Mineral Resources. AASB 6 is an industry
specific accounting standard requiring the
application of significant judgements, estimates
and industry knowledge. This includes specific
requirements for expenditure to be capitalised as
an asset and subsequent requirements which
must be complied with for capitalised
expenditure to continue to be carried as an
asset.
The assessment of impairment of exploration
and evaluation expenditure being inherently
difficult.
Assessing management’s determination of its
areas of interest for consistency with the
definition in AASB 6. This involved analysing the
tenements in which the consolidated entity holds
an interest and the exploration programmes
planned for those tenements.
For each area of interest, we assessed the
Consolidated Entity’s rights to tenure by
corroborating to government registries and
evaluating agreements in place with other parties
as applicable;
We tested the additions to capitalised
expenditure for the year by evaluating a sample
of recorded expenditure for consistency to
underlying records, the capitalisation
requirements of the Consolidated Entity’s
accounting policy and the requirements of AASB
6;
We considered the activities in each area of
interest to date and assessed the planned future
activities for each area of interest by evaluating
budgets for each area of interest.
We assessed each area of interest for one or
more of the following circumstances that may
indicate impairment of the capitalised
expenditure:
the licenses for the right to explore expiring in
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
the near future or are not expected to be
renewed;
substantive expenditure for further
exploration in the specific area is neither
budgeted or planned
decision or intent by the Consolidated Entity
to discontinue activities in the specific area of
interest due to lack of commercially viable
quantities of resources; and
data indicating that, although a development
in the specific area is likely to proceed, the
carrying amount of the exploration asset is
unlikely to be recovered in full from
successful development or sale.
We assessed the appropriateness of the related
disclosures in Note 13 to the financial
statements.
Convertible Notes
Our procedures amongst others included:
As disclosed in Note 18 to the financial report, the
analysing the agreement to identify the key
Consolidated Entity issued a convertible note during
terms and conditions for each convertible note;
the year with a face value of $420,000. As at 30
June 2020 the balance of the Convertible Notes
liability was $310,000 which reflects the tranches
received to date less relevant transaction costs
which are required to be amortised over the term of
the convertible notes and those amounts converted
into shares.
verification of the funds received from the issue
of convertible notes during the year;
assessing the accounting treatment of the
financial instruments in accordance with the
recognition and measurement as well as the
disclosure requirements of the relevant
Australian Accounting Standards;
Convertible Notes are considered to be a key audit
matter due to:
evaluating management’s option valuations and
assessing the assumptions and inputs used;
the value of the balance; and
the complexities involved in the recognition
and measurement of convertible financial
instruments and associated transaction
costs.
assessing the calculation including relevant
amortisation of finance costs for the year; and
assessing the adequacy of the disclosures in
Note 18 to the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Consolidated Entity’s annual report for the year ended 30 June 2020, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express any
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
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 Consolidated Entity 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 Note
1(a)(i), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of
Financial Statements, that the financial report complies with International Financial Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability 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 Consolidated Entity or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our responsibility is to express an opinion on the financial report based on our audit. 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 the 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 Consolidated Entity’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,
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Consolidated Entity’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 Consolidated Entity 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 Consolidated Entity to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Consolidated Entity 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.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2020.
The directors of the Consolidated Entity are responsible for the preparation and presentation of the
remuneration report in accordance with s 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.
Independent Auditor’s Report
To the Members of Aura Energy Limited (Continued)
Auditor’s Opinion
In our opinion, the Remuneration Report of Aura Energy Limited, for the year ended 30 June 2020, complies
with section 300A of the Corporations Act 2001.
BENTLEYS
Chartered Accountants
MARK DELAURENTIS CA
Partner
Dated at Perth this 1st day of November 2020
ADDITIONAL INFORMATION REQUIRED BY ASX LISTING RULES
Distribution of shareholders (as at 28 October 2020)
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
Unmarketable parcels
Units
% Units
6,315
82,858
202,371
37,469,880
0.00%
0.00%
0.01%
1.47%
2,519,774,542
98.52%
2,557,535,966
100.00%
Minimum $ 500.00 parcel at $ 0.0040 per unit
125,000
957
42,608,388
Minimum Parcel
Holders
Units
Voting rights
The voting rights attached to each class of equity security are as follows:
Ordinary shares Each ordinary share is entitled to one vote when a poll is called, otherwise each member
presentmeeting or by proxy has oone vote on a show of hands.
Company Secretary
The name of the company Secretary is John Madden.
Principal registered office
As disclosed in Note 33 Company Details of the Annual Report
Registers of securities ate held at the following addresses
Computershare Investor Services Pty Ltd
Level 2, Reserve Bank Building
45 St Georges Terrace
Perth WA 6000
Telephone
Facsimile
1300 557 000
08 9323 2033
E-mail
web.queries@computershare.com.au
Securities Exchange Listing
Quotation has been granted for all the ordinary shares of Aura Energy Limited on all Member Exchanges of the
Australian Securities Exchange Limited.
Unquoted securities
Options and warrants over unissued ordinary shares are 118,797,598 (2019: 248,894,431 unlisted options and
warrants are on issue and 10,000,000 (2019: 27,500,000) performance rights are on issue as at 29 September
2020.
Use of funds
The Group has used its funds in accordance with its initial business objectives.
75 | P a g e
ADDITIONAL INFORMATION REQUIRED BY ASX LISTING RULES
Top twenty shareholders of ordinary shares (as at 28 October 2020)
Rank
Name
Shares
%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
LIND GLOBAL MACRO FUND LP
COMPUTERSHARE CLEARING PTY LTD
ASEAN DEEP VALUE FUND
BNP PARIBAS NOMINEES PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
ASEAN DEEP VALUE FUND
PRE-EMPTIVE TRADING PTY LTD
MR PETER DESMOND REEVE
ROTHERWOOD ENTERPRISES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
WONFAIR INVESTMENTS PTY LTD
GEOGRUPPEN I GOTEBORG AB
MONEX BOOM SECURITIES (HK) LTD
MS JUSTINE WOODFORD
BEIRNE TRADING PTY LTD
MR LUKE PETER DALE + MRS MARIEANNE ERIKA DALE
MR SEBASTIAN MADEJA + MRS SYLVIA MADEJA
KAJUN DESIGNS PTY LTD
SAMBOLD PTY LTD
Total Top 20 shareholders
Total Remaining Holders
Total
462,200,183
217,754,037
200,000,000
188,289,764
125,099,242
109,738,672
100,000,000
76,600,000
44,718,304
43,500,000
41,201,378
39,600,000
26,890,922
25,292,000
25,131,579
24,731,665
23,152,568
20,000,000
17,500,000
15,364,895
1,826,765,209
730,770,757
2,557,535,966
18.07%
7.73%
7.82%
7.36%
4.89%
4.29%
3.91%
3.00%
1.75%
1.70%
1.61%
1.55%
1.05%
0.99%
0.98%
0.97%
0.91%
0.78%
0.68%
6.00%
71.43%
28,57%
100.00%
76 | P a g e
ADDITIONAL INFORMATION REQUIRED BY ASX LISTING RULES
Top twenty option holders of ordinary shares (as at 28 October 2020)
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
LIND GLOBAL MACRO FUND LP
BEIRNE TRADING PTY LTD
MR LUKE PETER DALE & MRS MARIEANNE ERIKA DALE
KLIP PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CITICORP NOMINEES PTY LIMITED
MR PETER JOSEPH SHANNON
MR JULIAN CHRISTOPHER PERKINS & MS MARGARET SU-PING FONG
SHAREHOLDERS MUTUAL ALLIANCE PTY LTD
MR KEITH BRUCE GRANT & MRS JILLIAN JANE GRANT
WONDER MEDIA PTY LTD
MR BEN ELLIS CROOKES
MR KEITH BRUCE GRANT & MRS JILLIAN JANE GRANT
NGU CORP PTY LTD
Shares
%
82,500,000
63.56%
7,548,543
6,563,334
5,363,334
4,633,333
2,770,450
1,134,700
1,072,398
1,066,667
1,000,000
858,509
800,000
684,000
594,371
560,000
458,334
373,634
371,500
360,000
335,334
5.82%
5.06%
4.13%
3.57%
2.13%
0.87%
0.83%
0.82%
0.77%
0.66%
0.62%
0.53%
0.46%
0.43%
0.35%
0.29%
0.29%
0.28%
0.26%
Total Top 20 shareholders
Total Remaining Holders
Total
119,048,441
10,742,167
129,790,608
91.72%
8.28%
100.00%
77 | P a g e
ADDITIONAL INFORMATION REQUIRED BY ASX LISTING RULES
190
207
60
476
34
41
134
18.3
17.6
7.8
Tiris Ressources SA
Tiris Resources SA
Aura Energy Limited
Aura Energy Limited
Aura Energy Limited
Tiris International Mining
Tiris International Mining
Vanadis Battery Metals AB
Vanadis Battery Metals AB
Vanadis Battery Metals AB
Equity
85%
85%
100%
100%
100%
100%
100%
100%
100%
100%
Tenement
Number
Name
Grant/
Application date
Expiry date
kms/sq
Holder
Tenement report
Country
Mauritania
2491C4
2492C4
Ain Sder
Oued El Foule Est
8/02/2019
8/02/2019
Exploitation Licence
Exploitation Licence
561
1482
2366
2457
2458
Oum Ferkik
Oum Ferkik Sud
Agouyame
Hadeibet Bellaa
Touerig Taet
Sweden
2007-243
2018-9
2018-7
Haggan nr 1
Mockelasen nr 1
Skallbole nr 1
16/04/2008
17/01/2017
19/02/2018
2/04/2019
2/04/2019
28/08/2007
21/01/2019
20/01/2019
Subject to exclusivity
negotiation
Exploration Licence
19/02/2021
2/04/2022
2/04/2022
28/08/2022
21/01/2022
20/01/2022
78 | P a g e