Auric Mining Limited
ACN 635 470 843
Annual Report
31 December 2021
Auric Mining Limited
Annual Report
31 December 2021
Contents
Corporate Directory
Letter from the Chair
Letter from the Managing Director
Review of Activities
Mineral Resources Annual Statement and Review
Competent Persons Statements
Estimation Governance Statement
Schedule of Tenements
Directors Report
Auditor’s Independence Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditors’ Report
Corporate Governance Statement
Additional ASX Information
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Auric Mining Limited
Annual Report
31 December 2021
Corporate Directory
Directors
Mr Steven Morris (Non-Executive Chair)
Mr Mark English (Managing Director)
Mr John Utley (Technical Director)
Mr Stephen Strubel (Non-Executive Director)
Company Secretary
Mr Stephen Strubel (Resigned 1 February 2022)
Miss Tamara Barr (Appointed 1 February 2022)
Registered Office
Share Register
Solicitors
Auditors
c/- Danpalo Group Pty Ltd
Suite 1, 1 Tully Road
East Perth WA 6004
Email: info@auricmining.com.au
Website: www.auricmining.com.au
Computershare Investor Services Pty Limited
172 St Georges Terrace
Perth WA 6004
Phone (within Australia): 1300 214 705
Phone (outside Australia): +61 3 9415 4036
Steinepreis Paganin
Level 4, 50 Market Street
Melbourne Vic 3000
William Buck Audit (Vic) Pty Ltd
Level 20, 181 William Street
Melbourne Vic 3000
Stock Exchange
Auric Mining Limited Shares (AWJ)
Auric Mining Limited Options (AWJO)
are quoted on the Australian Securities Exchange (ASX)
Page 2
Auric Mining Limited
Annual Report
31 December 2021
Letter from the Chair
Dear Fellow Shareholder
Welcome to the 2021 Annual Report of our Company.
Whilst this year has been one where as a Company, we have substantially expanded our tenement
holdings and continued our exploration programs as planned, there is no doubt that it has been a
disappointing year as far as the share price goes.
When we put the Company together and listed on ASX our goal was to increase resource ounces
and the quality of those ounces through both the drill bit and by corporate activity where it presented
itself and was positive for us.
We continue to hold that view and are pleased with our progress and expansion. As you’ll see in this
Annual Report, we’ve not only increased our holdings in the Widgiemooltha Gold Project and the
Spargoville Project but also our resource ounces along with a large increase in the Indicated resource
component. We continue to search for opportunities to add quality prospective ground to our
holdings too.
The Jefferys Find deposit presents itself as a near term toll treatment opportunity amongst other
options. We have progressed the development pathway significantly in the last 12 months.
Over recent times we have considered opportunities for further expansion beyond our current
project base. With gold at high prices historically but the market value of gold explorers not reflecting
the value of the businesses we are increasingly looking at the potential to increase our mineral
exploration activities to expand beyond gold.
I’d like to take this opportunity to thank everyone at Auric for their efforts and hard work this year.
Their commitment is much appreciated. I’d also like to thank my fellow Directors and pay special
thanks to Stephen Strubel, who has been involved in Auric from the very beginning and who, due to
a big increase in his overall workload in general, has informed us that regretfully he will not be
standing for re-election at the AGM.
In conclusion, I can comfort and assure shareholders that we share your frustration at the share price
and market valuation as it stands right now and that we are fully committed to the success of Auric.
Yours faithfully
Steven Morris
Non-Executive Chair
29 April 2022
Page 3
Auric Mining Limited
Annual Report
31 December 2021
Letter from the Managing Director
Dear Fellow Shareholder
It is a pleasure to introduce Auric’s 2021 Annual Report to shareholders.
Our long-term ambition from establishment of the Company was to become a successful gold
producer in a Tier One area in Western Australia. I am pleased with our progress towards this
aspiration, notwithstanding the 2021 year has been extremely difficult in Western Australia due to the
Covid19 restrictions.
We have been very active in our pursuit of first-class gold and other mineral exploration and
development projects around Widgiemooltha in West Australia. We believe we have acquired
excellent projects at highly competitive prices; the acquisition of the tenement package from
Neometals Ltd in June 2021 being a highlight. We will continue to advance our ambition via
exploration and by strategic acquisition.
I thank my fellow directors and staff in helping Auric continuing to work towards our objectives and
adding value to our projects. In particular, I wish to acknowledge the outstanding work that our
technical team, John Utley and Nicholas Snow and consultants have achieved at Munda, as part of
the Widgiemooltha Gold Project, since its acquisition.
The Widgiemooltha Gold Project is currently the centrepiece of our three projects. Throughout 2021
and up to the date of this report we have concentrated our activities at the Munda Project and the
Guest Prospect. We completed 3 drilling programs at these 2 locations throughout this period. At
Munda we have increased our gold resources from 173,700 ounces to 198,700 ounces. However, by
far the most important improvement is moving from nil resources in the Indicated category to 163,100
ounces. This represents approximately 82% of the Munda resource in the higher confidence category.
At Jeffreys Find, we have worked diligently toward development. We are investigating various
alternative strategies to monetize the Project and will soon be in a position to make informed
decisions as to the best development pathway.
At the Spargoville Project we are still endeavouring to get the largest tenement E15/1688 granted.
The tenement was applied for in November 2018. Tenements E15/1688 and E15/1689 are important
in the growth of the Company as we believe the Spargoville Project is prospective for gold and nickel.
Since establishment of Auric Mining in August 2019, the business has progressed from concept to a
gold development and minerals exploration company. With the continued drive of the Directors and
management team we will realise our key ambition sooner than later. I thank you for your continuing
support and look forward to you being a participant at our Annual General Meeting on 27 May 2022.
Yours faithfully
Mark English
Managing Director
29 April 2022
Page 4
Auric Mining Limited
Annual Report
31 December 2021
Review of Activities
Overview
Auric started the year with 6 tenements including the 2 key tenements hosting the Munda and
Jeffreys Find gold deposits and by years end managed 27 tenements, of which 19 are granted,
including 6 mining leases and 8 in application covering an area of 102km2.
The Company listed on the ASX on 12 February 2021 and in June 2021, acquired the gold rights to a
suite of tenements in the Widgiemooltha and Spargoville areas from Neometals Ltd. Widgie Nickel
Ltd, the ‘spin-out’ from Neometals, retains the rights to all other minerals. Auric’s projects combine
these tenements as well as Munda where rights to nickel and lithium minerals are held by Widgie
Nickel Limited and Auric holds the rights to all other minerals including gold. At the Jeffreys Find and
other Spargoville tenements, Auric owns all mineral rights.
Figure 1. Auric Project Locations
Page 5
Auric Mining Limited
Annual Report
31 December 2021
Auric maintained a high level of activity through 2021, initiating an RC program at Munda the day
after listing and with RC and air core drilling programs together with soil sampling programs
undertaken at various times throughout the year.
Munda
The first RC program at Munda was completed in March with 27 holes drilled for 3664m. The holes
were drilled to fill gaps in the Auric resources and to potentially extend resources in several positions
particularly at the southwestern and northwestern margins of the deposit. Numerous mineralised
intercepts were returned when defined at a 0.5g/t cut-off with some very high-grade intercepts
including 13m @ 14.62g/t Au and 18m @ 3.69g/t Au, together with broad zones of mineralisation.
A follow up RC program completed in August comprised 28 holes for 3,116. The program had a
threefold objective:
•
•
•
Resource Definition - close spacing around successful holes drilled in the March program to the
nominal 25m x 25m pattern required for resource estimation.
Munda northeastern area - test a potentially new zone of gold mineralisation approximately
200m northeast of the current resource area.
Ongoing validation work
Results were consistent with the 1st round of drilling but more modest in grade with the better
intercepts including 5m @ 4.72g/t Au and 4m @ 6.23g/t Au. They also provided critical inputs for new
resource modelling which was undertaken later in the year.
Figure 2. Munda drilling and geology
The northeastern zone has yet to define potentially economic resources but broad zones of lower
grade mineralisation have been intersected including 19m @ 0.72g/t Au and 19m @ 0.81g/t Au.
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Auric Mining Limited
Annual Report
31 December 2021
Better results from the two rounds of drilling at Munda are shown in Figure 2 with results from the 1st
round of drilling highlighted in white and those from the second round highlighted in orange. All
significant figures have been defined at a 0.5g/t cut-off.
Auric initiated a new estimate of resources for Munda in December which was completed and
reported in January 2022. The estimate was undertaken by FSS International Consultants (Australia)
Pty Ltd (FSSI) and incorporated 39 RC holes drilled by Auric within the resource area. The new estimate
represents a 14% increase in resources to 4.481M tonnes at 1.38g/t for 198,700oz Au at a 0.5gpt cut-
off. Importantly, work done to qualify the historic data led to classification of 82% of the new estimate
into the Indicated category.
Table 1 presents gold Mineral Resource estimates for Munda for a range of gold cut-off grades. The
figures are rounded to reflect the precision of the estimates and may include rounding errors.
Au
gpt
Cut-
off
0.2
0.3
0.4
0.5
0.6
0.8
1.0
Indicated
Inferred
Indicated + Inferred
MTonnes Au gpt Koz
MTonnes Au gpt
Koz
MTonnes Au gpt Koz
8.928
6.113
4.598
3.684
3.052
2.240
1.737
0.75
0.98
1.19
1.38
1.55
1.86
2.14
215.3
2.807
193.0
1.597
176.3
1.070
163.1
0.797
152.0
0.633
133.9
0.450
119.4
0.353
0.61
0.88
1.15
1.39
1.61
1.98
2.28
54.7
45.4
39.5
35.6
32.7
28.7
25.9
11.735
7.710
5.668
4.481
3.685
2.690
2.090
0.72
0.96
1.18
1.38
1.56
1.88
2.16
270.0
238.4
215.8
198.7
184.7
162.6
145.3
Table 1 January 2022 Munda gold deposit Mineral Resources estimate
When combined with the estimate of resources for the Jeffreys Find gold deposit, the estimate of
group resources at a 0.5gpt cut-off is 5.69M tonnes at 1.35gpt for 245,900oz Au.
The increase in total resources and changes in resource classification are represented in Figure 3. This
illustrates the now predominant component of ounces in the Indicated category. Further detail is
provided in the Annual Mineral Resources Statement and Review in this report.
Auric Combined Resources
l
d
o
G
s
e
c
n
u
O
d
e
t
a
m
i
t
s
E
l
a
t
o
T
300,000
250,000
200,000
150,000
100,000
50,000
0
Jul-20
Jan-22
Inferred
Indicated
Total
Figure 3. Auric’s gold resources inventory at a 0.5gpt cut-off defined by resource category
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Auric Mining Limited
Annual Report
31 December 2021
Jeffreys Find
Auric completed a 7 hole RC drilling program at Jeffreys Find. Six of the holes were drilled as twins of
historic holes which have been used in the estimation of resources at Jeffreys Find, to confirm both
the grade distribution and widths of the mineralised intervals and to provide material for metallurgical
test work specific to toll mills in the Kalgoorlie and Coolgardie areas. The seventh hole (AJRC002) was
drilled to infill a gap at the margin of the current resource model, confirming the continuity of
mineralisation (Figure 4).
Gold mineralisation is associated with a moderately southwest dipping Banded Iron Formation (BIF)
unit. The BIF comprises magnetite-grunerite-chert and is bounded by sandstones, siltstones, cherts
and limestones. Gold mineralisation was intersected predominantly within the BIF unit at depths
correlating well with the original drilling.
Figure 4. Jeffreys Find drilling and geology
Significant assay intervals (in red) show some grade variation from the original intervals (in black) as
illustrated in cross section in Figure 5 but are considered reasonable overall.
Metallurgical consultancy, Upside Metallurgy, have designed a test work program that will assess the
gold mineralisation at Jeffreys Find. Samples have been selected based on assay results and
lithologies and composited for processing at ALS Metallurgy with results expected in early 2022.
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Auric Mining Limited
Annual Report
31 December 2021
Figure 5 Jeffreys Find drill hole cross section A-A
Guest Prospect
The Guest Prospect lies within E15/1583, one of the tenements acquired through the Neometals
transaction in June 2021. There are several clusters of historic workings and drill programs were
undertaken by Kalgoorlie Consolidated Gold Mines in 1984 and by Ramelius Resources 2006 along
the workings (Figure 6).
Figure 6. Guest Prospect Location Plan
Page 9
Auric Mining Limited
Annual Report
31 December 2021
In August, Auric drilled 4 RC holes to target historic workings and associated RAB and RC drilling in
the south eastern part of the prospect (Guest Southeast) and 5 holes drilled on two traverses, beneath
shallow RC holes in the north western part of the prospect (Guest Northwest) (Figure 7).
Figure 7. Guest Prospect drill hole location plan
Particularly encouraging results were returned from Guest Southeast where the 4 holes drilled in that
area intersected a 20-30m wide basalt unit bounded by ultramafics, with quartz veining and trace
to 3% pyrite recorded within the basalt over most 1m sample intervals. Gold mineralisation occurs
which is clearly associated with the basalt unit such that significant gold assays at a 0.5g/t cut-off are
recorded within the basalt in each of the 4 holes, including 3m @ 3.45g/t Au in AGRC001, 8m @ 3.95g/t
Au in AGRC002, 10m @ 0.96g/t Au in AGRC003 and 2m @ 20.44g/t Au in AGRC004.
Guest Southeast (henceforth ‘Guest’) will be a focus for further RC drilling in 2022.
Regional Exploration
The recognition of the Fugitive Prospect by earlier explorers can be attributed to auger sampling
which is particularly effective in the calcareous soils in that area. Auric closed the spacing of historic
soil auger traverses from 200m to 100m in EL15/1689, better defining several gold and nickel-in-soil
anomalies in the southern half of the tenement. These anomalies will be tested with air core drilling
(Figure 8).
Page 10
Auric Mining Limited
Annual Report
31 December 2021
Figure 8. Spargoville Project – soil auger gold anomalism including Auric infill sampling in E15/1689
A total of 198 air core holes for 7,769m were drilled during August and September and 524 soil samples
were taken during that same period. The sampling traverses are represented in Figure 9.
Page 11
Auric Mining Limited
Annual Report
31 December 2021
Figure 9. Air core drill hole and soil sample traverse locations
The results are encouraging, particularly around the northern margin of the Widgiemooltha Dome
with both air core and soil sampling results defining anomalies that can be related to lithological
contacts and fold axes.
Bottom-of-hole gold anomalism in the northern area is outlined by a series of ellipses in Figure 10
which interpret most of the anomalism to relate to lithological contacts or to fold axes and to be
located on or near the northern hinge of the dome. Traverse spacing is too great to confirm this early-
stage interpretation and further air core drilling will be used to target and better define these
anomalies.
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Auric Mining Limited
Annual Report
31 December 2021
Figure 10. Northern Widgiemooltha gold-in-air core anomalism
Page 13
Auric Mining Limited
Annual Report
31 December 2021
Mineral Resources Annual Statement and Review
An updated estimate of gold resources for the Munda project has been completed with combined
Indicated and Inferred Mineral Resources now totalling 4.48Mt @ 1.38g/t gold for 198,700 ounces of
contained gold.
This represents an increase of 14% in contained ounces when compared with the estimate of
resources for Munda as reported to the end of December 2020. It also represents a substantial
increase in confidence in the estimates with conversion of 100% in the Inferred category at the end
of 2020 to 82% in the Indicated category and only 18% in the Inferred category.
Resources estimated for Jeffreys Find were reported in the 2020 Annual Report and remain
unchanged for the 2021 Annual Report. Munda and Jeffreys Find are in the same geographical area
and the combined resources are also reported. The combined resources are 5.69Mt @ 1.35g/t for
245,900 ounces, representing an 11% increase over the 221,600 ounces in contained gold reported
to December 2020.
Deposit
Category
Tonnes (Million) Au g/t
Au koz
Munda
Indicated
Inferred
Subtotal
Indicated
Jeffreys Find
Inferred
Subtotal
Indicated
Combined
Inferred
Total
3.68
0.80
4.48
0.91
0.30
1.21
4.59
1.10
5.69
1.38
1.39
1.38
1.26
1.08
1.22
1.26
1.41
1.35
163.1
35.6
198.7
36.9
10.3
47.2
200.0
45.9
245.9
Table 2. Gold Mineral Resource Estimates at 0.5 g/t cut off – 31 December 2021
NB. Figures are rounded to reflect the precision of the estimates and may include rounding discrepancies
Details of the Munda Mineral Resources estimate are reported in the Company’s ASX announcement
dated 28 January 2022 titled ‘Increase in Estimated Resources at Munda and Reclassification from
Inferred to Indicated’ Details of the Jeffreys Find Mineral Resources estimate are reported in the
Company’s ASX announcement dated 2 March 2021 and titled ‘Auric Mining Limited Resources
Summary and Exploration Update’.
The company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and, that all material assumptions and
technical parameters underpinning the estimates in the market announcements continue to apply
and have not materially changed. The company confirms that the form and context in which the
Competent Person’s findings are presented have not been materially modified from the original
market announcement.
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Auric Mining Limited
Annual Report
31 December 2021
Competent Persons Statements
The information in the Annual Mineral Resources Annual Statement that relates to Mineral Resource
estimation for the Munda Gold Project and Jeffreys Find Gold Project is based on, and fairly
represents information and supporting documentation compiled by Mr Neil Schofield, a Competent
Person who is a Member of the Australian Institute of Geoscientists and a full time employee of FSS
International Consultants (Australia) Pty Ltd. Mr Schofield has sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian
Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Schofield consents
to the inclusion in the report of the matters based on his information in the form and context in which
it appears.
The information in this announcement that relates to exploration results is based on and fairly
represents information and supporting documentation compiled by Mr John Utley, who is a full-time
employee of Auric Mining Limited. Mr Utley is a Competent Person and a member of the Australian
Institute of Geoscientists. Mr Utley has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to
qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves’. Mr Utley consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
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Auric Mining Limited
Annual Report
31 December 2021
Estimation Governance Statement
The Company ensures that all Mineral Resource estimates are subject to appropriate levels of
governance and internal controls. All data collection is conducted to industry standards including
appropriate quality control and data validation procedures. It is managed by Company employees
and overseen by the Company’s Technical Director.
Estimation of resources is undertaken by an independent consultant with many years of experience
in the estimation of gold and other mineral resources. Mineral resources estimation utilised the
method of Multiple Indicator Kriging (MIK) with block support adjustment reflecting selective open
pit mining.
Page 16
Auric Mining Limited
Annual Report
31 December 2021
Schedule of Tenements
Tenement Schedule as at 31 December 2021
Tenement
Project
Location
Status
Registered Holder
Mineral Rights
Widgiemooltha
M15/74
Widgiemooltha WA
M15/75
Widgiemooltha WA
M15/87
Widgiemooltha WA
M15/698
Widgiemooltha WA
M15/699
Widgiemooltha WA
E15/1505
Widgiemooltha WA
E15/1507
Widgiemooltha WA
E15/1553
Widgiemooltha WA
E15/1576
Widgiemooltha WA
E15/1583
Widgiemooltha WA
P15/6092
Widgiemooltha WA
P15/6387
Widgiemooltha WA
P15/6570
Widgiemooltha WA
P15/6612
Widgiemooltha WA
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Live
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Widgie Gold
100% All Minerals
except Ni, Li
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
E15/1679
Widgiemooltha WA
Pending Mt Edwards Lithium
100% Au Rights
E15/1749
Widgiemooltha WA
Pending Mt Edwards Lithium
100% Au Rights
P15/6362
Widgiemooltha WA
Pending Mt Edwards Lithium
100% Au Rights
P15/6539
Widgiemooltha WA
Pending Mt Edwards Lithium
100% Au Rights
L15/414
Widgiemooltha WA
Pending Widgie Gold
Infrastructure
Jeffreys Find
M63/242
Jeffreys Find
L63/97
Jeffreys Find
Spargoville
E15/1689
Spargoville
P15/5905
Spargoville
P15/5906
Spargoville
P15/6408
Spargoville
E15/1665
Spargoville
E15/1688
Spargoville
WA
WA
WA
WA
WA
WA
WA
WA
Table 3. Auric tenements at 31 December 2021
Live
Jeffreys Find
100% All Minerals
Pending
Jeffreys Find
Infrastructure
Live
Live
Live
Live
Spargoville Minerals
100% All Minerals
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Mt Edwards Lithium
100% Au Rights
Pending Mt Edwards Lithium
100% Au Rights
Pending Mariner Mining
100% All Minerals
Page 17
Auric Mining Limited
Annual Report
31 December 2021
Directors Report
General information
The financial statements cover both Auric Mining Limited as an individual entity and the consolidated
entity consisting of Auric Mining Limited and the entities it controlled at the end of, or during, the year.
The financial statements are presented in Australian dollars, which is Auric Mining Limited’s functional
and presentation currency.
Auric Mining Limited is a listed public company limited by shares, incorporated and domiciled in
Australia.
The Directors present their report, together with the financial statements, on the consolidated entity
(referred to hereafter as the ‘consolidated entity’) consisting of Auric Mining Limited (referred to
hereafter as “Auric”, “Company” or “parent entity”) and the entities it controlled at the end of, or
during, the year ended 31 December 2021.
Directors
The following persons were Directors of Auric Mining Limited during the whole of the financial year
and up to the date of this report, unless otherwise stated:
Steven Morris – Non-Executive Chair
Mark English – Managing Director
John Utley – Executive Director
Stephen Strubel – Non-Executive Director
Particulars of each Director’s experience and qualifications are set out later in this report.
Principal Activities
The principal activities of the Group during the financial year were gold exploration and
development.
Operating and Financial Review
Auric successfully listed on the ASX on 12 February 2021. The well-supported Initial Public Offering (IPO)
raised $7.3M.
The Company completed its first RC drilling program at Munda Deposit M15/87. The drilling program
commenced on 13 February 2021 and was completed on 9 March 2021. The program was for 27
holes with 3,664 metres drilled. Refer to ASX announcements dated, 23 March 2021, 29 March 2021
and 9 April 2021.
The Company completed the acquisition of the Neometals Ltd gold rights on the 10 June 2021. This
acquisition consisted of acquiring the gold rights to 13 tenements and 8 applications at
Widgiemooltha and Spargoville. The consideration paid was $250,000 cash plus the issue of 3,429,691
shares at $0.2041 per share totalling $700,000 and a 1% gross royalty on gold production from
tenement E 15/1583 or subsequent tenements. Refer to ASX announcements dated, 19 April 2021 and
10 June 2021.
The Company completed further RC drilling programs at both Munda and Guest later during the
year.
The Company completed a substantial Aircore drilling program over the NMT gold rights tenements
during the year.
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Auric Mining Limited
Annual Report
31 December 2021
The loss for the consolidated entity after providing for income tax amounted to $1,103,126
(31 December 2020: loss of $750,871).
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the consolidated entity during the financial
year.
Dividends
There were no dividends paid, recommended or declared during the current financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may
significantly affect the consolidated entity's operations, the results of those operations, or the
consolidated entity's state of affairs in future financial years, other than detailed in these financial
statements.
Likely developments and expected results of operations
Information on likely developments, future prospects and business strategies of the operations of the
consolidated entity and the expected results of operations, not otherwise disclosed in this report,
have not been included in this report because the Directors believe that the inclusion of such
information would be likely to result in unreasonable prejudice to the consolidated entity.
Indemnifying Officers or Auditor
During the year, the Group maintained an insurance policy which indemnifies the directors and
officers in respect of any liability incurred in connection with the performance of their duties as
directors and officers of the Group to the extent permitted by the Corporations Act 2001.
The Group has not, during or since the end of the financial year, indemnified or agreed to indemnify
the auditor of the Company or any related entity against a liability incurred by the auditor. During
the financial year, the Group has not paid a premium in respect of a contract to insure the auditor
of the Company or any related entity.
Environmental regulation
The consolidated entity is not subject to any significant environmental regulation under Australian
Commonwealth or State law as it is still in exploration stages.
Proceedings on Behalf of the Company
No person has applied for leave of a Court to bring proceedings against the Company or intervene
in any proceedings to which the Company is a party for the purpose of taking responsibility on
behalf of the Company for all or any part of those proceedings.
The Company was not a party to any Court proceedings during the year.
Non-audit Services
There were no non-audit services provided during the financial year by the auditor.
Page 19
Auric Mining Limited
Annual Report
31 December 2021
Options
At the date of this report, the unissued ordinary shares of Auric Mining Limited under option are as
follows:
Grant Date
Date of Expiry
Exercise Price
29 January 2021
31 October 2023
29 January 2021
31 October 2023
29 January 2021
31 October 2023
$0.40
$0.40
$0.40
Number under
Option
26,895,341
14,512,834
2,500,000
43,908,175
Option holders do not have any rights to participate in any issues of shares or other interests of the
Company or any other entity. There have been no options granted over unissued shares or interests of
any controlled entity within the Group since the end of the financial year.
During the year ended 31 December 2021, no shares of Auric Mining Limited were issued on the
exercise of options granted. No person entitled to exercise an option had or has any right by virtue of
the option to participate in any share issue of any other body corporate.
During the period ended 31 December 2020, 26,895,341 options were granted and issued to various
parties. These options were cancelled on 17 November 2020 and were re-issued on 29 January 2021.
Included in the 26,895,341 were 500,000 options issued as part of the cost of raising capital. These
500,000 options were brought to account in the 31 December 2020 financial statements in the option
reserve. 14,512,834 options were issued as part of the capital raising and IPO.
During the year ended 31 December 2021, 2,500,000 options were issued as part of the cost of raising
capital. These options granted for services rendered during the year ended 31 December 2021 have
been brought to account in this year’s financial statements in the option reserve.
Page 20
Auric Mining Limited
Annual Report
31 December 2021
Information on Directors and Company Secretary
Name:
Title:
Qualifications:
Experience and expertise:
Other current ASX directorships:
Directorships held in other listed
entities in the last three years:
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Steven Morris
Non-Executive Chair
Diploma of Financial Markets (FINSIA)
Steven has over 25 years’ experience in financial markets. He was
Head of Private Clients (Australia) for Patersons Securities, Managing
Director of Intersuisse Ltd, Founder and Managing Director of Peloton
Shareholder Services and held senior executive roles in the Little
Group. Steven is Vice President of the Melbourne Football Club.
Steven was a Non-Executive Director of De Grey Mining Ltd(“DEG”)
from 2014 to 2019 and Chairman of ASX-listed Purifloh Ltd (“PO3”)
from 2013 to 2019.
None
Steven was previously the Chair of Purifloh Ltd (ASX:PO3) until
November 2019 and a Director of De Grey Mining Ltd (ASX:DEG) until
July 2019
6,225,000 ordinary shares of Auric Mining Limited
2,312,500 options of Auric Mining Limited
Mark English
Managing Director
Bachelor of Business (Curtin University)
Fellow of the Institute of Chartered Accountants Australia and New
Zealand
Member of the Institute of Company Directors
Mark is a Chartered Accountant and a member of the Australian
Institute of Company Directors. Mark has 40 year career in the
resources sector and corporate services. Mark has particular
responsibility
financial management,
corporate development and acquisition opportunities. Mark was a
founding Director of Bullion Minerals Ltd, that he managed for 10
years including completing IPO.
for Company
strategy,
Other current ASX directorships:
Directorships held in other listed
entities in the last three years:
Interests in shares:
Interests in options:
Mark is a Co-Founder, Director and Shareholder in the Moora Citrus
group of companies, WA’s largest citrus producing orchard in
operation for over 20 years.
None
None
6,681,767 ordinary shares of Auric Mining
2,515,834 options of Auric Mining Limited
Page 21
Auric Mining Limited
Annual Report
31 December 2021
Name:
Title:
Qualifications:
Experience and expertise:
Other current ASX directorships:
Directorships held in other listed
entities in the last three years:
Interests in shares:
Interests in options:
John Utley
Technical Director
Master's of Science in Earth Sciences (University of Waikato, New
Zealand)
Member of the Australian Institute of Mining and Metallurgy
Member of the Australian Institute of Geoscientists
John has a 30 year career in mining and exploration, principally gold
sector. John has worked in Australia, South America, Papua New
Guinea and in Canada where he was Chief Geologist for Atlantic
Gold Corporation, during exploration and development of the
Touquoy Gold Mine and other gold deposits in Nova Scotia, prior to
its acquisition by St Barbara. John previously worked with Plutonic
Resources Ltd, where he was head of the exploration team at Darlot
Gold Mine, during the discovery and development of the 2.3M
ounce Centenary gold deposit.
None
None
6,420,000 ordinary shares of Auric Mining Limited
2,527,500 options of Auric Mining Limited
Page 22
Auric Mining Limited
Annual Report
31 December 2021
Name:
Title:
Company Secretary:
Qualifications:
Experience and expertise:
Other current ASX directorships:
Directorships held in other listed
entities in the last three years:
Interests in shares:
Interests in options:
Name:
Title:
Qualifications:
Experience and expertise:
Other current ASX directorships:
Directorships held in other listed
entities in the last three years:
Interests in shares:
Interests in options:
Stephen Strubel
Non-Executive Director
Stephen was the Company Secretary from 19 August 2019 to
1 February 2022
Bachelor of Business in Banking and Finance/International Trade
(Victoria University)
Graduate Certificate in Business (Finance) (Victoria University)
Master's in Business Administration (Australian Institute of Business)
Fellow Governance Institute of Australia (FGIA)
Stephen completed a Bachelor of Business in Banking and
Finance/International Trade and Graduate Certificate in Business
(Finance) from Victoria University and has an MBA from the
Australian Institute of Business. He is a Fellow of the Governance
Institute of Australia. Stephen has worked in financial markets in
for approximately 10 years predominantly with
Melbourne
Patersons Securities.
Stephen is a Non-Executive Director of Star Minerals Ltd (“SMS”),
Executive Director of ChemX Materials Ltd ("CMX") and is Joint
Company Secretary of the Environmental Group Ltd (“EGL”).
A Non-Executive Director of Star Minerals Ltd (ASX:SMS) 2021 to date
An Executive Director of ChemX Materials Ltd (ASX:CMX) 2022 to
date
None
6,165,100 ordinary shares of Auric Mining Limited
2,332,500 options of Auric Mining Limited
Tamara Barr
Company Secretary: Appointed: 1 February 2022
Certificate in Governance Practice (Governance Institute of
Australia)
Affiliated Member (GIA)
Tamara is a highly experienced ASX Company Secretary with over
17 years’ experience practising as a Company Secretary and
Corporate Governance Advisor across a variety of sectors and
industries. She has worked predominantly in Australia, as well as in
the UK and Europe, providing Company Secretarial advice and
service to ASX listed, Public and NFP companies. Tamara is
Managing Director of corporate services firm, Clear Sky Blue Pty Ltd
were Tamara works closely with Boards to enhance their Corporate
Governance procedures.
None
None
183,670 ordinary shares of Auric Mining Limited
135,334 options of Auric Mining Limited
Page 23
Auric Mining Limited
Annual Report
31 December 2021
Meetings of Directors
The number of meetings of the Company's Board of Directors ('the Board') held during the year ended
31 December 2021, and the number of meetings attended by each Director were:
Steven Morris
Mark English
John Utley
Stephen Strubel
Full Board
Attended
10
10
10
10
Held
10
10
10
10
Held: represents the number of meetings held during the time the Director held office.
All other matters requiring approval by the Directors, have been approved by Circular Resolution.
REMUNERATION REPORT (AUDITED)
Remuneration Policy
The remuneration policy of the company has been designed to align key management personnel
(KMP) objectives with shareholder and business objectives by providing a fixed remuneration
component. The Board of the company believes the remuneration policy to be appropriate and
effective in its ability to attract and retain high-quality KMP to run and manage the Group, as well
as create goal congruence between Directors, executives and shareholders.
For the purposes of this report, KMP comprises executive and non-executive Directors of the Group,
as follows:
Steven Morris – Non-Executive Chair
Mark English – Managing Director
John Utley – Technical Director
Stephen Strubel – Non-Executive Director
The Board’s policy for determining the nature and amount of remuneration for KMP of the Group is
based on the following:
-
The remuneration policy is developed and approved by the Board after professional advice, if
required.
- All KMP receive a base salary (which is based on factors such as length of service and
experience), superannuation, fringe benefits and long service leave.
-
The Board reviews KMP packages annually by reference to the Group’s performance,
executive performance and comparable information from industry sectors.
Page 24
Auric Mining Limited
Annual Report
31 December 2021
KMP receive, at a minimum, a superannuation guarantee contribution required by the government,
which is currently 9.5% of the individual’s average weekly ordinary time earnings (AWOTE). Some
individuals, however, have chosen to sacrifice part of their salary to increase payments towards
superannuation.
All remuneration paid to KMP is valued at the cost to the Group and expensed.
The Board’s policy is to remunerate non-executive Directors at market rates for time, commitment and
responsibilities. The Board determines payments to the non-executive Directors and reviews their
remuneration annually, based on market practice, duties and accountability. Independent external
advice is sought when required. The current amount has been set at an amount not to exceed
$250,000 per annum. The maximum aggregate amount of fees that can be paid to non-executive
Directors is subject to approval by shareholders at general meeting.
Options granted under the arrangement do not carry dividend or voting rights. Each option is entitled
to be converted into one ordinary share once the interim or final financial report has been disclosed
to the public and is measured using the Black Scholes methodology.
Relationship between Remuneration Policy and Company Performance
The remuneration policy has been tailored to increase goal congruence between shareholders,
Directors and executives. The method has been applied to achieve this aim, the first being a
performance-based bonus based on KPI’s.
Employment Details of Members of Key Management Personnel
The following table provides employment details of persons who were, during the financial year,
members of KMP of the Group. The table also illustrates the proportion of remuneration that was
performance and non-performance based.
Page 25
Auric Mining Limited
Annual Report
31 December 2021
Position Held as at
31 December 2021
and any Change
During the Year
Contract Details
(Duration and Termination)
Group KMP
Steven Morris Non-executive Chair Consultancy
agreement
commenced 14 December 2020 for
three years. The Company may
terminate
Consultancy
the
three months’
Agreement with
The Consultant may
notice.
terminate
Consultancy
Agreement by giving the Company
one months’ notice or immediately
if Mr Morris ceases to be a Director
of the Company.
the
Mark English Managing Director
John Utley
Technical Director
Stephen
Strubel
Non-Executive
Director
in
force
Executive
Services agreement
commenced 14 December 2020
and continues
till
terminated. The Company may
the Agreement with
terminate
three months’ notice and
the
payment of twelve months base
salary.
executive may
terminate the Agreement by giving
the Company three months’ notice
and being paid twelve months
base salary upon certain events.
The
in
force
Executive
Services agreement
commenced 14 December 2020
and continues
till
terminated. The Company may
the Agreement with
terminate
three months’ notice and
the
payment of twelve months base
salary.
executive may
terminate the Agreement by giving
the Company three months’ notice
and being paid twelve months
base salary upon certain events.
The
in
force
Executive
Services agreement
commenced 14 December 2020
and continues
till
terminated. The Company may
the Agreement with
terminate
three months’ notice and
the
payment of twelve months base
salary.
executive may
terminate the Agreement by giving
the Company three months’ notice
and being paid twelve months
base salary upon certain events.
The
2021
2020
Proportions of
Elements of
Remuneration
Related to
Performance (Other
than Options Issued)
Proportions
of Elements
of
Remuneratio
n Not
Related to
Performance
Proportions of
Elements of
Remuneration
Related to
Performance (Other
than Options
Issued)
Proportions of
Elements of
Remuneration
Not Related
to
Performance
Shares/
Units
Fixed
Salary/Fees
Non-salary
Cash-
based
Incentives
Shares/
Units
Non-salary
Cash-
based
Incentives
Fixed
Salary/Fees
%
%
%
%
%
%
–
–
100
–
–
100
–
–
100
49
–
51
–
–
100
47
–
53
–
–
100
–
–
100
Page 26
Auric Mining Limited
Annual Report
31 December 2021
The employment terms and conditions of all KMP are formalised in contracts of employment or consulting
agreements.
Remuneration Expense Details for the Year Ended 31 December 2021
The following table of benefits and payments represents the components of the current year remuneration
expenses for each member of KMP and their related parties of the Group. Such amounts have been calculated
in accordance with Australian Accounting Standards.
Table of Benefits and Payments Due for the Year Ended 31 December 2021, including related parties
Short-term benefits
Post-
employme
nt
Other long-
term
benefits
Share-based
payments
Total
Performance
related
Equity
compensation
2021
Directors
Salary
& Fees
$
Steven Morris
48,000
Mark English
241,449
John Utley
195,016
Stephen
Strubel
66,863
Total
551,328
Bonus
Annual
leave
Super
$
-
-
-
-
-
$
-
8,881
6,439
1,201
$
-
25,896
19,356
6,636
16,521
51,888
Long
service
leave
$
-
4,334
3,501
1,200
9,035
Share
rights
Shares
$
-
-
-
-
-
$
-
-
-
-
-
Loan
funded
shares
$
-
-
-
-
-
$
48,000
280,560
224,312
75,900
628,772
%
-
-
-
-
-
%
-
-
-
-
-
Table of Benefits and Payments Due for the Period Ended 31 December 2020, including related parties
Short-term benefits
Post-
employme
nt
Other long-
term
benefits
Share-based
payments
Total
Performance
related
Equity
compensation
Bonus
Annual
leave
Super
2020
Directors
Salary
& Fees
$
Steven Morris
18,500
$
-
Mark English
124,132
120,000
John Utley
133,876
120,000
Stephen
Strubel
19,029
-
Total
295,537
240,000
$
-
-
-
-
-
$
-
868
701
240
1,809
Long
service
leave
$
-
-
-
-
-
Share
rights
Shares
$
-
-
-
-
-
$
-
-
-
-
-
Loan
funded
shares
$
-
-
-
-
-
$
18,500
245,000
254,577
19,269
537,346
%
-
48.98
47.14
-
-
%
-
-
-
-
-
Securities Received that Are Not Performance-related
No members of KMP are entitled to receive securities that are not performance-based as part of their
remuneration package.
Cash Bonuses, Performance-related Bonuses and Share-based Payments
Bonuses of $120,000 each were accrued for Mark English and John Utley for the successful IPO and ASX listing in
December 2020 and were paid in cash during 31 December 2021 year.
Page 27
Auric Mining Limited
Annual Report
31 December 2021
KMP Shareholdings
The number of ordinary shares in Auric Mining Limited held by each KMP and their related parties of the Group
during the financial year and up to the date of this financial report is as follows:
Ordinary shares
Steven Morris
Mark English
John Utley
Stephen Strubel
Balance at
the start of
the year
6,125,000
6,191,767
6,260,000
6,125,100
24,701,867
Received
as part of
remuneration Additions
-
-
-
-
-
100,000
710,000
160,000
40,000
790,000
Disposals/
other
-
220,000
-
-
-
Balance at
the end of
the year
6,225,000
6,681,767
6,420,000
6,165,100
25,491,867
The number of options in Auric Mining Ltd held by each KMP and their related parties of the Group during the
financial year and up to the date of this financial report is as follows:
Options over ordinary shares
Steven Morris
Mark English
John Utley
Stephen Strubel
Balance at
the start of
the year
Granted
Exercised
-
-
-
-
-
2,312,500
2,515,834
2,527,500
2,332,500
9,688,334
-
-
-
-
-
Expired/
forfeited/
other
Balance at
the end of
the year
-
-
-
-
-
2,312,500
2,515,834
2,527,500
2,332,500
9,688,334
During the year ended 31 December 2021, the above options were issued to KMP and their related parties as a
consequence of capital raisings and the IPO.
There have been no KMP transactions involving equity instruments apart from those described in the tables
above relating to options and shareholdings.
Other Transactions with KMP and/or their Related Parties
There were no other transactions conducted between the Group and KMP or their related parties, apart from
those disclosed above relating to equity and compensation that were conducted other than in accordance
with normal employee, customer or supplier relationships on terms no more favourable than those reasonably
expected under arm’s length dealings with unrelated persons.
This Directors’ Report, incorporating the remuneration report, is signed in accordance with a resolution of the
Board of Directors:
Director...........................................................................................
Mark English
Managing Director
Perth WA
11 March 2022
Page 28
Auric Mining Limited
Annual Report
31 December 2021
Auditor’s Independence Declaration
[This page has intentionally been left blank for the insertion of the auditor's independence declaration]
Page 29
Auric Mining Limited
Annual Report
31 December 2021
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
For the Period ended 31 December 2021
Other Revenue
Expenses
Employee benefits expense
Consultant, corporate advisory & publicity
ASX & share registry
Subscription, software & conference
Director fees
Accounting fees
Audit fees
Insurance
Legal fees
Depreciation and amortisation expense
Rent
Meeting expenses
Other expenses
Loss before income tax expense
Income tax expense
Note
Consolidated
2021
$
2020
$
13,998
-
(474,992)
(197,915)
(68,486)
(53,105)
(48,000)
(46,375)
(39,500)
(32,930)
(28,986)
(16,933)
(16,000)
(13,870)
(80,033)
(537,346)
(71,562)
-
-
-
(30,464)
(32,800)
-
(43,820)
(388)
-
-
(34,491)
(1,103,126)
(750,871)
4
-
-
Loss after income tax expense for the year attributable to the owners of Auric
Mining Limited
(1,103,126)
(750,871)
Other comprehensive income for the year, net of tax
-
-
Total comprehensive loss for the year attributable to the owners of Auric
Mining Limited
(1,103,126)
(750,871)
Basic earnings per share
Diluted earnings per share
Cents
Cents
20
20
(1.32)
(1.32)
(3.91)
(3.91)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes
Page 30
Auric Mining Limited
Annual Report
31 December 2021
Consolidated Statement of Financial Position
As at 31 December 2021
Current assets
Cash and cash equivalents
Term Deposits
Other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Right of use asset
Exploration and evaluation
Other non-current assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Employee benefits
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Employee benefits
Lease liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Option reserve
Accumulated losses
Total equity
Note
Consolidated
2021
$
2020
$
5
6
7
8
545,007
2,020,000
35,850
68,057
2,668,914
176,418
-
54,098
17,812
248,328
29,569
134,363
6,529,640
8,878
6,702,450
3,062
-
3,830,614
-
3,833,676
9,371,364
4,082,004
85,532
92,135
-
20,653
198,320
1,149,553
-
248,000
-
1,397,553
9,035
116,133
125,168
-
-
-
323,488
1,397,553
9,047,876
2,684,451
9
10
10,244,807
657,066
(1,853,997)
3,098,256
337,066
(750,871)
9,047,876
2,684,451
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
Page 31
Auric Mining Limited
Annual Report
31 December 2021
Consolidated Statement of Changes in Equity
For the Period ended 31 December 2021
Note
Issued
Capital
$
Option
Reserve
Accumulated
Losses
$
$
Total
$
Balance at 1 January 2021
3,098,256
337,066
(750,871)
2,684,451
Loss for the year ended 31 December 2021
Total comprehensive loss for the year
Transactions with owners, directly in equity
Shares issued
Transaction costs
Option reserve
-
-
9
7,956,417
(809,866)
-
-
-
-
10
-
320,000
(1,103,126)
(1,103,126)
(1,103,126)
(1,103,126)
-
-
-
7,956,417
(809,866)
320,000
Balance at 31 December 2021
10,244,807
657,066
(1,853,997)
9,047,876
Balance at 12 August 2019
Loss for the period ended 31 December 2020
Total comprehensive loss for the period
$
30
-
-
Transactions with owners, directly in equity
Shares issued
Transaction costs
Option reserve
Balance at 31 December 2020
9
3,688,800
(590,574)
10
-
3,098,256
$
-
-
-
-
337,066
337,066
$
$
30
(750,871)
(750,871)
(750,871)
(750,871)
-
-
-
3,688,800
(590,574)
337,066
(750,871)
2,684,451
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
Page 32
Auric Mining Limited
Annual Report
31 December 2021
Consolidated Statement of Cash Flows
For the Period ended 31 December 2021
Cash flows from operating activities
Note
Consolidated
2021
$
2020
$
Payments to suppliers and employees (inclusive of GST)
(1,403,595)
(352,713)
Net cash used in operating activities
19
(1,403,595)
(352,713)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for exploration and evaluation
Payments for security deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Capital raising costs
Repayment of lease liabilities
Net cash from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Note
Consolidated
2021
$
2020
$
(26,997)
(2,802,827)
(2,028,878)
(3,450)
(2,050,047)
-
(4,858,702)
(2,053,497)
9
7,256,417
(615,738)
(9,793)
2,988,830
(406,202)
-
6,630,886
2,582,628
368,589
176,418
176,418
-
Cash and cash equivalents at the end of the financial year
545,007
176,418
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
Page 33
Auric Mining Limited
Annual Report
31 December 2021
Notes to the Consolidated Financial Statements
For the Period ended 31 December 2021
The consolidated financial statements and notes represent those of Auric Mining Limited and Controlled Entities
(the Consolidated Group or Group).
The separate financial statements of the Parent Entity, Auric Mining Limited, have not been presented within this
financial report as permitted by the Corporations Act 2001.
The financial statements were authorised for issue on 11 March 2022 by the Directors of the Company.
Note 1. Significant Accounting Policies
The principal accounting policies adopted in the preparation of the financial statements are set out either in the
respective notes or below. These policies have been consistently applied to all the years presented, unless
otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting year.
The adoption of these Accounting Standards and Interpretations did not have any significant impact on the
financial performance or position of the consolidated entity. Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been early adopted.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the
Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with
International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').
Except for cash flow information, the financial statements have been prepared on an accrual 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.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about the 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. Material accounting policies adopted in the
preparation of this financial report are presented below. They have been consistently applied unless otherwise
stated.
Going Concern
The consolidated financial statements have been prepared on a going concern basis which contemplates the
continuity of normal business activities and the realisation of assets and the payment of liabilities in the ordinary
course of business.
The Group has incurred a net loss after tax for the year ended 31 December 2021 of $1,103,126, a net cash
outflow from operations of $1,403,595 and net cash used in investing activities, excluding the term deposits of
$2,829,824. As at 31 December 2021, the Group had net equity of $9,047,876 and cash and term deposits of
$2,565,007.
Page 34
Auric Mining Limited
Annual Report
31 December 2021
There is a material uncertainty that the Group will be able to continue as a going concern and therefore it may
be unable to realise its assets and discharge its liabilities in the normal course of business.
The Group’s ability to continue as a going concern and pay its debts as and when they fall due is dependent
upon the following:
-
-
-
the Group raising additional equity capital via any means available to it inclusive of, but not limited to,
share placements, right issues, or joint venture arrangements in a timely manner in order to fund the
ongoing exploration and operation activities of the Group;
the Group delaying exploration activities if sufficient funds are not raised; or
the Group selling some of the tenements if sufficient funds are not raised.
Although it is not certain that these efforts will be successful, management has determined that the activities it
will take are sufficient to mitigate the material uncertainty on the entity’s ability to continue as a going concern
and be able to discharge its liabilities in the normal course of business.
The Directors have reviewed the Business outlook and cash flow forecasts after taking into account the above
matters and are of the view that the use of going concern basis accounting is appropriate as the Directors
believe the Group will achieve the matters set out above and be able to pay its debts as and when they fall
due.
The financial statements are normally prepared on the assumption that the Group is a going concern and will
continue in operation for the foreseeable future. Hence, it is assumed that the Group has neither the intention
nor the need to liquidate or curtail materially the scale of its operations. If such an intention or need exists, the
financial statements may have to be prepared on a different basis and, if so, the basis will be disclosed and the
impacts quantified.
a.
Principles of Consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the Parent (Auric
Mining Limited) and all of the subsidiaries (including any structured entities). Subsidiaries are entities the
Parent controls. The Parent controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over the entity. A
list of the subsidiaries is provided in Note 17.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains
or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies
of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the
accounting policies adopted by the Group.
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as "non-
controlling interests". The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on liquidation
at either fair value or the non-controlling interests’ proportionate share of the subsidiary’s net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the
equity section of the statement of financial position and statement of comprehensive income.
Business combinations
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The business combination will be accounted for from
the date that control is obtained, 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
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from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability is remeasured in each reporting year 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 business combinations, other than those associated with the issue
of a financial instrument, are recognised as expenses in profit or loss when incurred.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
b.
Income Tax
The income tax expense for the year comprises current income tax expense and deferred tax expense.
Current income tax expense charged to profit or loss is the tax payable on taxable income for the current
year. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from)
the relevant taxation authority using tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting year.
Deferred 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 that are recognised outside profit or loss or arising from a business combination.
A deferred tax liability shall be recognised for all taxable temporary differences, except to the extent that
the deferred tax liability arises from: (a) the initial recognition of goodwill; or (b) the initial recognition of an
asset or liability in a transaction which: (i) is not a business combination; and (ii) at the time of the
transaction, affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled and their measurement also reflects the manner in which
management expects to recover or settle the carrying amount of the related asset or liability. With respect
to non-depreciable items of property, plant and equipment measured at fair value and items of investment
property measured at fair value, the related deferred tax liability or deferred tax asset is measured on the
basis that the carrying amount of the asset will be recovered entirely through sale. When an investment
property that is depreciable is held by the entity in a business model whose objective is to consume
substantially all of the economic benefits embodied in the property through use over time (rather than
through sale), the related deferred tax liability or deferred tax asset is measured on the basis that the
carrying amount of such property will be recovered entirely through use.
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, unless the deferred tax asset relating to temporary differences arises
from the initial recognition of an asset or liability in a transaction that:
–
–
is not a business combination; and
at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).
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: (i) a legally enforceable right of set-off exists; and (ii) 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
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realisation and settlement of the respective asset and liability will occur in future years in which significant
amounts of deferred tax assets or liabilities are expected to be recovered or settled.
c.
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 Australian 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 year (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
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.
d.
Plant and Equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment
Plant and equipment are measured on the cost basis and therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the event the carrying amount of plant and equipment
is greater than the estimated recoverable amount, the carrying amount is written down immediately to the
estimated recoverable amount and impairment losses are recognised in profit or loss. A formal assessment
of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of
impairment).
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 been discounted to their present values in determining recoverable
amounts.
The cost of fixed assets constructed within the Consolidated Group includes the cost of materials, direct
labour, borrowing costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Group and the cost of the item can be measured reliably. All other repairs and maintenance are
recognised as expenses in profit or loss during the financial year in which they are incurred.
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Depreciation
The depreciable amount of all fixed assets including buildings and capitalised leased assets, is depreciated
on a straight-line basis over the asset’s useful life 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 year of the lease or the estimated useful lives of the improvements. The depreciation rates used
for office equipment is 66.67% diminishing value.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting year.
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 recognised in profit or loss in the year in which they arise. Gains shall not be classified
as revenue. When revalued assets are sold, amounts included in the revaluation surplus relating to that
asset are transferred to retained earnings.
e.
Exploration and Evaluation Costs
Exploration, evaluation and development expenditures incurred are capitalised in respect of each
identifiable area of interest. These costs are only capitalised to the extent that they are expected to be
recovered 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.
Accumulated costs in relation to an abandoned area are written off in full against profit or loss 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 are 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.
Costs of site restoration are provided for over the life of the project from when exploration commences and
are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining
plant, equipment and building structures, waste removal, and rehabilitation of the site in accordance with
local laws and regulations and clauses of the 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 for on a prospective basis. In determining the
costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to
community expectations and future legislation. Accordingly, the costs have been determined on the basis
that the restoration will be completed within one year of abandoning the site.
f.
Financial Instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the
purchase or sale of the asset (i.e., trade date accounting is adopted).
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction
costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction
costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are
used to determine fair value. In other circumstances, valuation techniques are adopted.
Trade receivables are initially measured at the transaction price if the trade receivables do not contain a
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significant financing component or if the practical expedient was applied as specified in AASB 15: Revenue
from Contracts with Customers
Classification and subsequent measurement
Financial liabilities
Financial instruments are subsequently measured at:
–
–
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit and loss if the financial liability is:
–
–
–
a contingent consideration of an acquirer in a business combination to which AASB 3: Business
Combinations applies;
held for trading; or
initially designated as at fair value through profit or loss.
All other financial liabilities are subsequently measured at amortised cost using the effective interest
method.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest expense in profit or loss over the relevant year. The effective interest rate is the internal
rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated future
cash flows through the expected life of the instrument to the net carrying amount at initial recognition.
A financial liability is held for trading if:
–
–
–
it is incurred for the purpose of repurchasing or repaying in the near term;
part of a portfolio where there is an actual pattern of short-term profit taking; or
a derivative financial instrument (except for a derivative that is in a financial guarantee contract
or a derivative that is in an effective hedging relationships).
Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they
are not part of a designated hedging relationship are recognised in profit or loss.
The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to
other comprehensive income and are not subsequently reclassified to profit or loss. Instead, they are
transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit
risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses
should be taken to profit or loss rather than other comprehensive income.
A financial liability cannot be reclassified.
Financial assets
Financial assets are subsequently measured at:
–
–
–
amortised cost;
fair value through other comprehensive income; or
fair value through profit or loss.
Measurement is on the basis of two primary criteria:
–
–
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
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A financial asset that meets the following conditions is subsequently measured at amortised cost:
–
–
the financial asset is managed solely to collect contractual cash flows; and
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates.
A financial asset that meets the following conditions is subsequently measured at fair value through other
comprehensive income:
–
–
the contractual terms within the financial asset give rise to cash flows that are solely payments
of principal and interest on the principal amount outstanding on specified dates;
the business model for managing the financial assets comprises both contractual cash flows
collection and the selling of the financial asset.
By default, all other financial assets that do not meet the measurement conditions of amortised cost and
fair value through other comprehensive income are subsequently measured at fair value through profit or
loss.
The Group initially designates a financial instrument as measured at fair value through profit or loss if:
–
–
–
it eliminates or significantly reduces a measurement or recognition inconsistency (often referred
to as "accounting mismatch") that would otherwise arise from measuring assets or liabilities or
recognising the gains and losses on them on different bases;
it is in accordance with the documented risk management or investment strategy, and
information about the groupings was documented appropriately, so that the performance of
the financial liability that was part of a group of financial liabilities or financial assets can be
managed and evaluated consistently on a fair value basis;
it is a hybrid contract that contains an embedded derivative that significantly modifies the cash
flows otherwise required by the contract.
The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time
option on initial classification and is irrevocable until the financial asset is derecognised.
Equity instruments
At initial recognition, as long as the equity instrument is not held for trading and not a contingent
consideration recognised by an acquirer in a business combination to which AASB 3: Business Combinations
applies, the Group may make an irrevocable election to measure any subsequent changes in fair value of
the equity instruments in other comprehensive income, while the dividend revenue received on underlying
equity instruments investment will still be recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised at settlement date
in accordance with the Group's accounting policy.
Derecognition
Derecognition refers to the removal of a previously recognised financial asset or financial liability from the
statement of financial position.
Derecognition of financial liabilities
A liability is derecognised when it is extinguished (i.e., when the obligation in the contract is discharged,
cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified
terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the
existing liability and recognition of a new financial liability.
The difference between the carrying amount of the financial liability derecognised and the consideration
paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or
loss.
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Derecognition of financial assets
A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset
is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
All of the following criteria need to be satisfied for derecognition of financial asset:
–
–
–
the right to receive cash flows from the asset has expired or been transferred;
all risk and rewards of ownership of the asset have been substantially transferred; and
the Group no longer controls the asset (i.e., the Group has no practical ability to make a
unilateral decision to sell the asset to a third party).
On derecognition of a financial asset measured at amortised cost, the difference between the asset's
carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
On derecognition of a debt instrument classified as at fair value through other comprehensive income, the
cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit
or loss.
On derecognition of an investment in equity which was elected to be classified under fair value through
other comprehensive income, the cumulative gain or loss previously accumulated in the investment
revaluation reserve is not reclassified to profit or loss but is transferred to retained earnings.
Impairment
The Group recognises a loss allowance for expected credit losses on:
–
–
–
–
–
financial assets that are measured at amortised cost or fair value through other comprehensive
income;
lease receivables;
contract assets (e.g., amounts due from customers under construction contracts);
loan commitments that are not measured at fair value through profit or loss; and
financial guarantee contracts that are not measured at fair value through profit or loss.
Loss allowance is not recognised for:
–
–
financial assets measured at fair value through profit or loss; or
equity instruments measured at fair value through other comprehensive income.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a
financial instrument. A credit loss is the difference between all contractual cash flows that are due and all
cash flows expected to be received, all discounted at the original effective interest rate of the financial
instrument.
The Group uses the following approaches to impairment, as applicable under AASB 9: Financial
Instruments:
–
–
–
–
the general approach
the simplified approach
the purchased or originated credit-impaired approach; and
low credit risk operational simplification.
General approach
Under the general approach, at each reporting year, the Group assesses whether the financial instruments
are credit-impaired, and if:
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–
–
the credit risk of the financial instrument has increased significantly since initial recognition, the
Group measures the loss allowance of the financial instruments at an amount equal to the
lifetime expected credit losses; or
there is no significant increase in credit risk since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month expected credit losses.
Simplified approach
The simplified approach does not require tracking of changes in credit risk at every reporting year, but
instead requires the recognition of lifetime expected credit loss at all times. This approach is applicable to:
–
–
trade receivables or contract assets that result from transactions within the scope of AASB 15:
Revenue from Contracts with Customers and which do not contain a significant financing
component; and
lease receivables.
In measuring the expected credit loss, a provision matrix for trade receivables was used taking into
consideration various data to get to an expected credit loss (i.e., diversity of customer base, appropriate
groupings of historical loss experience, etc).
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain
or loss in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to
that asset.
Assets measured at fair value through other comprehensive income are recognised at fair value, with
changes in fair value recognised in other comprehensive income. Amounts in relation to change in credit
risk are transferred from other comprehensive income to profit or loss at every reporting year.
For financial assets that are unrecognised (e.g., loan commitments yet to be drawn, financial guarantees),
a provision for loss allowance is created in the statement of financial position to recognise the loss
allowance.
g.
Impairment of Non-Financial Assets
At the end of each reporting year, the Group assesses whether there is any indication that an asset may
be impaired. The assessment will include the consideration of external and internal sources of information,
including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre-
acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing
the recoverable amount of the asset, being the higher of the asset’s fair value less costs of disposal and
value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable
amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in
accordance with another Standard (e.g., in accordance with the revaluation model in AASB 116: Property,
Plant and Equipment). Any impairment loss of a revalued asset is treated as a revaluation decrease in
accordance with that other Standard.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
Impairment testing is performed annually for goodwill, intangible assets with indefinite lives and intangible
assets not yet available for use.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
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recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which
case the reversal of the impairment loss is treated as a revaluation increase.
h.
Employee Benefits
Short-term employee benefits
Provision is made for the Group’s obligation for short-term employee benefits. Short-term employee benefits
are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after
the end of the annual reporting year in which the employees render the related service, including wages,
salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts
expected to be paid when the obligation is settled.
The Group’s obligations for short-term employee benefits such as wages, salaries and sick leave are
recognised as part of current trade and other payables in the statement of financial position. The Group’s
obligations for employees’ annual leave and long service leave entitlements are recognised as provisions
in the statement of financial position.
Other long-term employee benefits
Provision is made for employees’ long service leave and annual leave entitlements not expected to be
settled wholly within 12 months after the end of the annual reporting year in which the employees render
the related service. Other long-term employee benefits are measured at the present value of the expected
future payments to be made to employees. Expected future payments incorporate anticipated future
wage and salary levels, durations of service and employee departures and are discounted at rates
determined by reference to market yields at the end of the reporting year on government bonds that have
maturity dates that approximate the terms of the obligations. Any remeasurements for changes in
assumptions of obligations for other long-term employee benefits are recognised in profit or loss in the years
in which the changes occur.
The Group’s obligations for long-term employee benefits are presented as non-current provisions in its
statement of financial position, except where the Group does not have an unconditional right to defer
settlement for at least 12 months after the end of the reporting year, in which case the obligations are
presented as current provisions.
Defined contribution superannuation benefits
All employees of the Group other than those who receive defined benefit entitlements receive defined
contribution superannuation entitlements, for which the Group pays the fixed superannuation guarantee
contribution (currently 10% of the employee’s average ordinary salary) to the employee’s superannuation
fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised
as an expense when they become payable. The Group’s obligation with respect to employees’ defined
contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions
at the end of the reporting year. All obligations for unpaid superannuation guarantee contributions are
measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are
presented as current liabilities in the Group’s statement of financial position.
Termination benefits
When applicable, the Group recognises a liability and expense for termination benefits at the earlier of:
–
–
the date when the Group can no longer withdraw the offer for termination benefits; and
when the Group recognises costs for restructuring pursuant to AASB 137: Provisions, Contingent
Liabilities and Contingent Assets and the costs include termination benefits.
In either case, unless the number of employees affected is known, the obligation for termination benefits is
measured on the basis of the number of employees expected to be affected. Termination benefits that
are expected to be settled wholly before 12 months after the annual reporting year in which the benefits
are recognised are measured at the (undiscounted) amounts expected to be paid. All other termination
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benefits are accounted for on the same basis as other long-term employee benefits.
i.
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 result and that outflow can be reliably
measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at the end
of the reporting year.
j.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits available on demand with banks, other short-
term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank
overdrafts are reported within borrowings in current liabilities on the statement of financial position.
k.
Goods and Services Tax (GST)
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash
flows included in receipts from customers or payments to suppliers.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated
inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable
to, the ATO is included with other receivables or payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
financing activities which are recoverable from, or payable to, the ATO are presented as operating cash
flows included in receipts from customers or payments to suppliers.
l.
Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial statements 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.
m.
Key Judgements
Exploration and evaluation expenditure
The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be
recoverable or where the activities have not reached a stage that permits a reasonable assessment of the
existence of reserves. While there are certain areas of interest from which no reserves have been extracted,
the Directors are of the continued belief that such expenditure should not be written off since feasibility
studies in such areas have not yet concluded. Such capitalised expenditure is carried at the end of the
reporting year at $6.33 million.
n.
Share-based Payment Transactions
The consolidated entity measures the cost of equity-settled transactions by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined by using the
Black-Scholes model taking into account the terms and conditions upon which the instruments were
granted. The accounting estimates and assumptions relating to equity-settled share-based payments
would have no impact on the carrying amounts of assets and liabilities within the next annual reporting
year but may impact profit or loss and equity.
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o.
Coronavirus (COVID-19) Pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has
had, or may have, on the consolidated entity based on known information. This consideration extends to
the nature of the products and services offered, customers, supply chain, staffing and geographic regions
in which the consolidated entity operates. Other than as addressed in specific notes, there does not
currently appear to be either any significant impact upon the financial statements or any significant
uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably
as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.
p.
Right-of-Use-Asset
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured
at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease
payments made at or before the commencement date net of any lease incentives received, any initial
direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected
to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the
estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain
ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life.
Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease liability
for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on
these assets are expensed to profit or loss as incurred.
q.
Lease Liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised
at the present value of the lease payments to be made over the term of the lease, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental
borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable
lease payments that depend on an index or a rate, amounts expected to be paid under residual value
guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to
occur, and any anticipated termination penalties. The variable lease payments that do not depend on an
index or a rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts
are remeasured if there is a change in the following: future lease payments arising from a change in an
index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination
penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use
asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Page 45
Auric Mining Limited
Annual Report
31 December 2021
Note 2. Parent Information
The following information has been extracted from the books and records of the financial information of the
Parent Entity set out below and has been prepared in accordance with Australian Accounting Standards.
Statement of Financial Position
ASSETS
Current assets
Non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Non-current liabilities
TOTAL LIABILITIES
NET EQUITY
EQUITY
Issued capital
Accumulated losses
Share option reserve
TOTAL EQUITY
2021
$
2020
$
616,647
201,210
8,762,578
3,070,822
9,379,225
3,272,032
193,670
584,024
125,168
-
318,838
584,024
9,060,387
2,688,008
10,244,807
3,098,256
(1,841,486)
(747,314)
657,066
337,066
9,060,387
2,688,008
The Parent entity has guaranteed the contingent asset and liabilities as detailed in note 13 and has also
guaranteed the obligation to Neometals Limited as detailed in note 14.
Note 3. Operating segments
Identification of reportable operating segments
For management’s purposes, the Group is organised into one main operating segment, which involves the
exploration and development of minerals in Australia. All of the Group’s activities are interrelated, and discrete
financial information is reported to the Board as a single segment. Accordingly, all significant decisions are based
upon analysis of the Group as one segment. The financial results from this segment are equivalent to the financial
statements of the Group as a whole.
Page 46
Auric Mining Limited
Annual Report
31 December 2021
Note 4. Income tax
Numerical reconciliation of income tax benefit and tax at the statutory rate
Loss before income tax expense
Tax at the statutory tax rate of 26%
Tax effect amounts which are not deductible/(taxable) in calculating taxable
income:
Non-allowable items
Other items
Carry forward tax losses not recognised
DTA/DTL not recognised
Income tax benefit
Consolidated
2021
$
2020
$
(1,103,126)
(750,871)
(286,813)
(206,490)
37,929
(176,342)
(108,482)
533,708
-
97,872
(6,124)
-
114,741
-
Accounting policy for income tax
The income tax expense or benefit for the year is the tax payable on that year's taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities
attributable to temporary differences, unused tax losses and the adjustment recognised for prior years, where
applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied
when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively
enacted, except for:
●
When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and that, at the time of the transaction, affects
neither the accounting nor taxable profits; or
When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures,
and the timing of the reversal can be controlled and it is probable that the temporary difference will not
reverse in the foreseeable future.
●
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits
will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are
recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax
assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the
same taxable authority on either the same taxable entity or different taxable entities which intend to settle
simultaneously.
Page 47
Auric Mining Limited
Annual Report
31 December 2021
Note 5. Current assets - Term Deposits
Term Deposit 1
Term Deposit 2
Term Deposit 3
Term deposits 1 & 2 matures on 16 April 2022. Term deposit 3 matures on 18 August 2022.
Note 6. Non-current assets - exploration and evaluation
Exploration and evaluation - at cost
Consolidated
2021
$
2020
$
1,000,000
1,000,000
20,000
2,020,000
-
-
Consolidated
2021
$
2020
$
6,529,640
3,830,614
Reconciliations
Reconciliations of the values at the beginning and end of the current and previous financial year are set out
below:
Opening balance
Expenditure during the year
Closing balance
Consolidated
2021
$
2020
$
3,830,614
2,699,026
-
3,830,614
6,529,640
3,830,614
All exploration and evaluation expenditure including general activities, geological, project generation, and
drilling costs are capitalised as incurred.
Page 48
Auric Mining Limited
Annual Report
31 December 2021
Note 7. Current liabilities - trade and other payables
Trade and other payables
Accruals
Deferred consideration - Munda Project
Royalty consideration - Jeffreys Find Project
Note 8. Current liabilities - Employee Benefits
Annual leave
Superannuation payable
PAYG payable
Note 9. Equity - Issued capital
At incorporation
Share issued
Convertible Note conversion
Shares issued
Shares raised
Shares raised
Shares issued for acquisition of Jeffreys Find tenement
Shares issued for acquisition of Spargoville tenements
Capital raising costs
Closing balance as at 31 December 2020
Shared issued via IPO
Shares issued to NMT re Gold Rights
Capital raising costs
Consolidated
2021
$
2020
$
26,402
59,130
-
-
279,707
69,846
650,000
150,000
85,532
1,149,553
Consolidated
2021
$
2020
$
28,742
5,575
57,818
92,135
-
-
-
-
Consolidated
2021
Shares
2020
Shares
2021
$
2020
$
-
-
-
-
-
-
-
-
300
9,000,000
27,750,000
500,000
1,161,999
17,950,001
3,666,667
600,000
-
-
-
-
-
-
-
-
30
9,000
111,000
2,000
174,300
2,692,500
550,000
150,000
(590,574)
-
-
-
60,628,967
29,025,667
3,429,691
-
-
-
-
-
3,098,256
7,256,417
700,000
(809,866) -
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company
in proportion to the number of shares held. The fully paid ordinary shares have no par value and the Company
does not have a limited amount of authorised capital.
93,084,325
60,628,967 10,244,807
3,098,256
Page 49
Auric Mining Limited
Annual Report
31 December 2021
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a
poll each share shall have one vote.
Share buy-back
There is no current on-market share buy-back.
Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going
concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an
optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is
calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The consolidated entity would look to raise capital when an opportunity to invest in a business or company was
seen as value adding relative to the current Company's share price at the time of the investment.
The capital risk management policy remains unchanged from the 31 December 2020 Annual Report.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction
from the proceeds.
Note 10. Equity - Option Reserve
The 2,500,000 options issued for the capital raising services had the following assumptions:
The options were valued by the Directors using the Black Scholes method. The assumptions used are as follows:
Stock price $0.25 Volatility 97%
Exercise price $0.40 Risk free rate 1.5%
Grant date 29/01/2021 Fair value per option $0.128
Expiry date 31/10/2023
Option reserve 320,000
Opening balance
Value of options issued during the year
Closing balance
Consolidated
2021
$
2020
$
337,066
320,000
-
337,066
657,066
337,066
Page 50
Auric Mining Limited
Annual Report
31 December 2021
At incorporation
Issued to promoters
Issued for seed capital
Granted for acquisition of tenements
Issued for capital raising services
Subtotal
Options cancelled
Closing balance as at 31 December 2020
Options reissued 29 January 2021
Issued as per IPO
Issued for capital raising services
2021
No.
Consolidated
2020
No.
2021
$
-
14,125,000
10,137,008
2,133,333
500,000
26,895,341
(26,895,341)
-
26,895,341
14,512,834
2,500,000
337,066
-
-
320,000
2020
$
-
-
-
-
337,066
337,066
-
The weighted average exercise price is $0.40 per option, the same in prior year and the current year.
43,908,175
-
657,066
337,066
The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.8
years (31 December 2020: 2.8 years)
Note 11. Key management personnel disclosures
Refer to the remuneration report contained in the Directors’ Report for details of the remuneration paid or
payable to each member of the Group’s Key Management Personnel (KMP) or their related parties for the
period ended 31 December 2021.
The total of remuneration paid to KMP of the Company and the Group during the period are as follows:
Short-term employee benefits
Post-employment benefits
Long-term employee benefits
Total KMP compensation
Short-term benefits
Consolidated
2021
$
2020
$
567,849
51,888
9,035
628,772
535,537
1,809
-
537,346
These amounts include fees and benefits paid to non-executive Directors or their related parties as well as all
salary and paid leave benefits awarded to executive Directors and other KMP.
Post-employment benefits
These amounts are the current-year’s estimated costs of providing for the Group’s defined benefits scheme
post-retirement, superannuation contributions made during the period.
Other long-term benefits
These amounts represent long service leave benefits accruing during the period and deferred bonus payments.
Page 51
Auric Mining Limited
Annual Report
31 December 2021
Note 12. Auditor’s Remuneration
During the financial year the following fees were paid or payable for services provided by William Buck, the auditor
of the Company:
Audit services - William Buck
Audit or review of the financial statements
Other services - William Buck
Accounts preparation services
Investigating Accountants Report
Consolidated
2021
$
2020
$
39,500
30,000
-
-
-
2,800
11,000
13,800
39,500
43,800
Note 13. Contingent Assets and Liabilities
As part of the terms and conditions of the acquisition of Spargoville Project, the Group has contingent liabilities
amounting to $150,000 worth of Shares to be issued, subject to performance milestones being achieved, at a
deemed issue price per share equal to the VWAP of shares calculated over the 5 trading days immediately
preceding the date of issue of the shares.
As part of the acquisition of the Spargoville Project, the Group has taken on the obligation to Breakaway Resources
Pty Ltd to a 1.5% net smelter royalty in respect of production from the Tenements.
As part of the acquisition of the Neometals gold rights, the Group has taken on the obligation to Neometals Ltd
to a 1% gross royalty in respect of gold production from the Tenement E15/1583.
Note 14. Commitments
Tenement commitments: 0-1 year
Tenement commitments: 1-5 years
Tenement commitments: 5 years plus
Consolidated
2021
$
2020
$
513,900
529,500
86,800
74,000
343,000
104,000
1,130,200
521,000
As part of the acquisition of the Neometals gold rights, the Group has taken on the obligation to spend $450,000
on the tenements in year 1 for settlement date and further $450,000 in the second year.
Page 52
Auric Mining Limited
Annual Report
31 December 2021
Note 15. Related party transactions
a. Related Parties
The Group's main related parties are related to Key Management Personnel, identified as follows:
Steven Morris
Mark English
John Utley
Stephen Strubel
b. Transactions with related parties
Transactions between related parties are on normal commercial terms and conditions no more favourable
than those available
with key
management personnel have been disclosed in the Remuneration Report.
to other parties unless otherwise
transactions
stated.
All
c. Amounts paid/ payable to related parties
The following transactions occurred with related parties:
LBL (WA) Pty Ltd, entity related to Mark English for services rendered
140 Holdings Pty Ltd, entity related to Mark English for services rendered
Teralba Nominees VIC Pty Ltd, entity related to Stephen Strubel for services rendered
Targo Holdings Pty Ltd, entity related to Steven Morris for services rendered
Consolidated
2021
$
-
-
-
48,000
2020
$
60,000
55,000
16,500
18,500
Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting
date.
Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
Note 16. Capital Commitments
The Company has entered into a contract for the purchase of a Toyota Hilux for an amount up to $55,000.
Subsequent to the end of the financial year, the Company has submitted an offer to purchase a Crown Lease
Property at Widgiemooltha.
Page 53
Auric Mining Limited
Annual Report
31 December 2021
Note 17. Interests in Subsidiaries
The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the
Group. The proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary’s
principal place of business is also its country of incorporation.
Name
Widgie Gold Pty Ltd
Spargoville Minerals Pty Ltd
Jeffreys Find Pty Ltd
Principal place of business /
Country of incorporation
Australia
Australia
Australia
Ownership interest
2020
2021
%
%
100%
100%
100%
100%
100%
100%
Subsidiary financial statements used in the preparation of these consolidated financial statements have also
been prepared as at the same reporting date as the Group’s financial statements.\
Note 18. Events after the reporting year
No matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly
affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of
affairs in future financial years, other than, a new subsidiary company was incorporated subsequent to the end
of the financial year. The subsidiary is currently dormant.
Note 19. Cash flow information
Reconciliation of loss after income tax to net cash used in operating activities
Loss after income tax expense for the year
(1,103,126)
(750,871)
Consolidated
2021
$
2020
$
Change in operating assets and liabilities:
(Decrease)/Increase in trade and other payables
(Decrease)/Increase in other provisions
Depreciation and amortisation
(Increase) in receivables and other current assets
Net cash used in operating activities
Note 20. Earnings per share
(75,182)
(210,223)
16,933
(31,997)
221,680
248,000
388
(71,910)
(1,403,595)
(352,713)
Consolidated
2021
$
2020
$
Loss after income tax attributable to the owners of Auric Mining Limited
(1,103,126)
(750,871)
Basic loss per share
Diluted loss per share
Cents
Cents
(1.32)
(1.32)
(3.91)
(3.91)
Page 54
Auric Mining Limited
Annual Report
31 December 2021
No.
No.
Weighted average number of ordinary shares used in calculating basic earnings per
share
83,599,875
19,225,357
Weighted average number of ordinary shares used in calculating diluted earnings
per share
83,599,875
19,225,357
Diluted loss per share has not been disclosed as the impact from options is anti-dilutive, because the exercise
price of the option is higher than the average issued price.
Accounting policy for earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the loss attributable to the owners of Auric Mining Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares and the weighted average number of shares assumed to have been issued for no consideration
in relation to dilutive potential ordinary shares.
Note 21. Financial Risk Management
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.
The totals
Instruments as detailed in the accounting policies to these financial statements, are as follows:
instruments, measured in accordance with AASB 9: Financial
for each category of
financial
Financial assets
Financial assets at amortised cost
Cash and cash equivalents
Other receivables
Term deposits
Total financial assets
Financial liabilities
Financial liabilities at amortised cost
Other payables
Consolidated
2021
$
2020
$
545,007
35,850
2,020,000
176,418
54,098
-
2,600,857
230,516
Consolidated
2021
2020
323,488
1,397,553
Page 55
Auric Mining Limited
Annual Report
31 December 2021
Financial Risk Management Policies
The Board monitors the Group’s financial risk management policies and exposures and approves financial
transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating to
commodity price risk, counterparty credit risk, foreign currency risk, liquidity risk and interest rate risk.
The overall risk management strategy seeks to assist the Consolidated Group in meeting its financial targets, while
minimising potential adverse effects on financial performance. Its functions include the review of the use of credit
risk policies and future cash flow requirements.
Specific financial risk exposures and management
The main risks the Group is exposed to through its financial instruments are credit risk and liquidity risk. There are no
substantive changes in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives,
policies and processes for managing or measuring the risks.
a. Credit risk
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.
Due to the current nature of the Group, being an exploration entity, the Group is not exposed to material
credit risk.
b. 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.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an
appropriate liquidity risk management framework for the management of the Group's short, medium and
long-term funding and liquidity management requirements. The Group manages liquidity risk by
maintaining adequate reserves and by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a year
of 60 days. The financial liabilities of the Group include 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.
The following table reflects an undiscounted contractual maturity analysis for financial assets and financial
liabilities.
Page 56
Auric Mining Limited
Annual Report
31 December 2021
Financial liability and financial asset maturity analysis:
Consolidated Group 2021
Within 1 Year
1 to 5 Years
$
$
Total
$
Financial liabilities due for payment
Other payables
Employee benefits
Lease liability
Total expected outflows
Financial assets – cash flows realisable
Cash and cash equivalents
Other receivables
Term Deposit
Rental security bond
Total anticipated inflows
Net inflow on financial instruments
(85,532)
(92,135)
(20,653)
(198,320)
545,007
103,907
2,020,000
-
2,668,914
2,470,594
-
(9,035)
(116,133)
(125,168)
-
-
-
8,878
8,878
(116,290)
Consolidated Group 2020
Within 1 Year
1 to 5 Years
$
$
Financial liabilities due for payment
Other payables
Total expected outflows
Financial assets – cash flows realisable
Cash and cash equivalents
Other receivables
Total anticipated inflows
(1,397,553)
(1,397,553)
176,418
54,098
230,516
Net (outflow) on financial instruments
(1,167,037)
-
-
-
-
-
(85,532)
(101,170)
(136,786)
(323,488)
545,007
103,907
2,020,000
8,878
2,677,792
2,354,304
Total
$
(1,397,553)
(1,397,553)
176,418
54,098
230,516
(1,167,037)
The above liquidity risk shortfall as at 31 December 2020 has been eliminated by the IPO and capital raising of $7.26 million in
February 2021.
Fair value estimation
The fair values of financial assets and financial liabilities are presented above 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.
Financial instruments whose carrying value is equivalent to fair value due to their nature include:
Cash and cash equivalents;
Other receivables; and
Other payables
Page 57
Auric Mining Limited
Annual Report
31 December 2021
Note 22. Company Details
The registered office and principal place of business of the Company is:
Auric Mining Limited
Level 1, 1 Tully Road
East Perth WA 6004
Page 58
Auric Mining Limited
Annual Report
31 December 2021
Directors’ Declaration
In the Directors' opinion:
●
●
●
●
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
the attached financial statements and notes comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in note 1 to the financial statements;
the attached financial statements and notes give a true and fair view of the Company's and consolidated
entity's financial position as at 31 December 2021 and of their performance for the financial year ended on
that date; and
As disclosed in Note 1 of the financial statements, in the Directors’ opinion there are reasonable grounds to
believe that the Company and the consolidated entity will be able to pay its debts as and when they
become due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act
2001.
On behalf of the Directors
___________________________
Mark English
Managing Director
11 March 2022
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31 December 2021
Independent Auditors’ Report
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Auric Mining Limited
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31 December 2021
Corporate Governance Statement
In recognising the need for high standards of corporate behaviour and accountability, the Directors
of the Company support the principles of sound corporate governance. The Board recognises the
recommendations of the ASX Corporate Governance Council and considers that the Company is in
compliance with the 4th Edition Principles & Recommendations to the extent reasonable in respect
of the Company’s circumstances, which are of importance or relevant to the commercial operation
of developing listed resources companies.
The Company’s Corporate Governance Statement is located on the Company’s website at
www.auricmining.com.au.
Page 64
Auric Mining Limited
Annual Report
31 December 2021
Additional ASX Information
The shareholder information set out below was applicable as at 22 April 2022.
Distribution of equitable securities
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Options over ordinary
shares
% of total
% of total
Number
shares
Number
options
of holders
issued
of holders
issued
11
65
136
320
115
-
0.24
1.18
15.65
82.93
-
128
74
210
61
-
1.24
1.53
23.81
73.42
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Total
647
100.00
473
100.00
Holding less than a marketable parcel
87
-
311
-
Page 65
Auric Mining Limited
Annual Report
31 December 2021
Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest security holders of equity securities are listed below:
Ordinary shares
% of total
shares
Number held
issued
7,200,000
7.73
1
R J & A INVESTMENTS PTY LTD
2 ANAMORPH PTY LTD
3
4
5
6
FAIRCHILD CAPITAL AUSTRALIA PTY LTD
13 NOMINEES PTY LTD
SRS HGS PTY LTD
STEVEN JOHN MORRIS
7 MINCOR RESOURCES NL
8 NEOMETALS INVESTMENTS PTY LTD
9 CS THIRD NOMINEES PTY LIMITED
10 TARGO HOLDINGS PTY LTD
11 140 HOLDINGS PTY LTD
12 J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
13 CITICORP NOMINEES PTY LIMITED
14 THREE ZEBRAS PTY LTD
6,420,000
6,125,100
5,181,667
5,125,100
3,912,500
3,666,667
3,429,691
2,896,396
2,312,500
1,500,100
1,355,999
1,342,142
1,333,333
15 MR STEPHEN STRUBEL + MR BRIAN STRUBEL
1,040,000
16 ESTRELLA RESOURCES LIMITED
17 CAM NOMINEES PTY LTD
18 LYTTON NOMINEES PTY LTD
19 WHIMPLECREEK PTY LTD
20 GREENBACK GLOBAL PTY LTD
856,400
680,000
666,667
666,667
666,666
6.90
6.58
5.57
5.51
4.20
3.94
3.68
3.11
2.48
1.61
1.46
1.44
1.43
1.12
0.92
0.73
0.72
0.72
0.72
Total Top 20
Others
Total
56,977,595
36,106,730
61.21
38.79
93,084,325
100.00
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Auric Mining Limited
Annual Report
31 December 2021
Options over ordinary
shares
% of total
options
Number held
issued
1
R J & A INVESTMENTS PTY LTD
2 ANAMORPH PTY LTD
3 CONRAD CAPITAL INVESTMENTS PTY LTD
4
5
13 NOMINEES PTY LTD
THOMAS FAIRCHILD
6 MINCOR RESOURCES NL
7
SRS HGS PTY LTD
2,916,666
2,527,500
2,500,000
2,405,834
2,312,500
1,833,333
1,812,500
8 CS THIRD NOMINEES PTY LIMITED
1,586,884
9
STEVEN JOHN MORRIS
10 TARGO HOLDINGS PTY LTD
11 GOFFACAN PTY LTD
12 THREE ZEBRAS PTY LTD
13 M & K KORKIDAS PTY LTD
1,156,250
1,156,250
813,697
666,667
550,000
14 MR STEPHEN STRUBEL + MR BRIAN STRUBEL
520,000
15 CONRAD CAPITAL GROUP PTY LTD
16 MR PETER RAFTOPOULOS
17 WHIMPLECREEK PTY LTD
18 MR THOMAS MAUSEZAHL + MRS EVELYN CALAPAN MANZA
19 LYTTON NOMINEES PTY LTD
20 GREENBACK GLOBAL PTY LTD
Total Top 20
Others
Total
Unquoted equity securities
There are no unquoted equity securities.
500,000
433,334
383,333
350,000
333,334
333,333
25,091,415
18,816,760
6.64
5.76
5.69
5.48
5.27
4.18
4.13
3.61
2.63
2.63
1.85
1.52
1.25
1.18
1.14
0.99
0.87
0.80
0.76
0.76
57.15
42.85
43,908,175
100.00
Page 67
Auric Mining Limited
Annual Report
31 December 2021
Substantial holders
The names of the substantial shareholders listed in the Company’s register are:
Shareholder:
Name
R J & A INVESTMENTS PTY LTD
MARK ENGLISH & ASSOCIATES
ANAMORPH PTY LTD (UTLEY FAMILY A/C)
THOMAS FAIRCHILD & FAIRCHILD CAPITAL AUSTRALIA PTY LTD
STEPHEN STRUBEL & ASSOCIATES
STEVEN MORRIS & ASSOCIATES
Voting rights
The voting rights attached to ordinary shares are set out below:
Number held % Units
7,000,000
6,531,767
6,420,000
6,191,767
6,165,100
6,125,000
7.52
7.02
6.90
6.65
6.62
6.58
Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and
upon a poll each share shall have one vote.
There are no other classes of equity securities.
Page 68