Australian Vanadium Limited 2020 Annual Report
Corporate Directory
Letter from the Chairman
Directors’ Report
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Auditors’ Independence Declaration
Independent Auditors’ Report
Annual Mineral Resource Statement
ASX Additional Information
2
3
4
27
28
29
30
31
61
62
63
68
72
1
Australian Vanadium Limited 2020 Annual Report
Directors
Vincent Algar (Managing Director)
Leslie Ingraham (Executive Director)
Brenton Lewis (Non-Executive Chairman)
Daniel Harris (Non-Executive Director)
Company Secretary
Neville Bassett
Registered Office
Level 1, 85 Havelock Street
West Perth WA 6005
Telephone
08 9321 5594
Facsimile
08 6268 2699
Share Registry
Automic Pty Ltd
Level 2
267 St Georges Terrace
Perth WA 6000
Telephone
1300 288 664
Auditors
Armada Audit & Assurance Pty Ltd
18 Sangiorgio Court
Osborne Park WA 6017
Securities Exchange Listing
Australian Vanadium Limited shares (AVL) are quoted on the Australian Securities Exchange (ASX).
2
Australian Vanadium Limited 2020 Annual Report
Dear Fellow Shareholders,
On behalf of your Board of Directors, I have pleasure in presenting the 2020 Annual Report of
Australian Vanadium Limited (“AVL” or the “Company”) for the 30 June 2020 financial year.
2020 has been an unprecedented year for everyone and our thoughts are with those around the
world who have been affected in one way or another by the global pandemic.
AVL has been able to maintain its progress towards production from the Australian Vanadium Project
in Western Australia and has been buoyed by support from both the Federal and State Governments.
The importance of understanding a deposit’s geology and the way to process it cannot be
underestimated. The work our technical team has undertaken to ensure that the processing method
is representative and fully scalable will be invaluable to project investors. The impact of increased
vanadium recoveries and the potential for saleable co-products will add further to the Project’s
robustness.
An updated Resource released this year has seen an overall increase of 9.5%, bringing the total
Resource to 208 Million Tonnes. This is a result of focused additional drilling and an increased
understanding of the geological setting. The growth in tonnages confirms the global significance of
the Project.
A point of difference for AVL to its peers is the strength of both the internal and external teams
working on the Project. We are lucky to have a breadth of experience in vanadium that is globally
unparalleled in a company working towards production.
Around the world the interest in renewable energy remains unabated and the vanadium redox flow
battery is gaining traction. Developments this year have included company mergers and investment
in vanadium electrolyte leasing. It is pleasing to see VSUN Energy starting to have the success it
deserves.
I would like to thank shareholders for their continuing support throughout the year and extend my
sincere thanks to the Board, management and my colleagues for their contributions and efforts.
Yours faithfully,
Brenton Lewis, Chairman
3
Australian Vanadium Limited 2020 Annual Report
CORPORATE HIGHLIGHTS
The Australian Vanadium Project
Mining Lease M51/878 has been granted by DMIRS with an initial term of 21 years.
Mining Licence Application (MLA51/890) submitted over the Company’s southern fault blocks.
A Mineral Resource update brought the total Mineral Resource to 208.2Mt at 0.74% V2O5.
A water access agreement was signed with Westgold Resources Ltd (ASX: WGX).
Pilot Scale study delivered a concentrate quality of 1.44% V2O5 generated from initial pilot
scale testing.
Benchscale tests averaged 95% vanadium extraction for pelletised concentrate.
Feasibility study innovations have resulted in multiple high-value pathways for an iron-
titanium co-product generated from the Project.
The Project was awarded Major Project Status by the Australian Federal Government and
Lead Agency Status by the Western Australian State Government.
An option agreement was signed over land east of the port city of Geraldton for the vanadium
processing plant location.
A Letter of Intent was signed with Hebei Yanshan Vanadium and Titanium Industry
Technology Research Co Ltd, a subsidiary of HBIS Group Chengsteel to discuss a binding
purchase and sale agreement for AVL’s vanadium products.
A non-binding MOU was signed with Enerox GmbH for vanadium pentoxide and vanadium
electrolyte supply.
VSUN Energy
20kW/80kWh VRFB to be installed at an orchard in Pakenham, Victoria for Priest Bros.
80kW/320kWh VRFB to be installed at Meredith Dairy in Victoria.
MOU and grant application for Strelley Community School in the Pilbara, Western Australia.
VSUN Energy part of the Queensland Farmers’ Federation group which is in receipt of a
grant from the Federal Government’s Regional and Remote Communities Reliability Fund.
Value Added Reseller agreement signed with CellCube manufacturer Enerox GmbH.
Coates
AVL formed a strategic alliance with Lithium Australia NL (ASX: LIT) and private company
Mercator Metals Ltd to collaboratively advance exploration activities targeting Ni-Cu-PGE
mineralisation at the Coates Project near Wundowie in Western Australia.
Lithium Australia announced historical geological and geochemical information that it had
compiled with AVL.
Approved drilling program to include targeting for base metals and PGE.
4
Australian Vanadium Limited 2020 Annual Report
Corporate Matters
In September 2019, $5,194,975 was raised through a Share Purchase Plan and $1,400,000
was raised through a Placement for a total of $6,594,975.
AVL received $249,643 from the Australian Federal Government’s Research and
Development Tax Incentive Scheme for the 2017/2018 tax year. This was received in
September 2019.
AVL received $1,834,184 from the Australian Federal Government’s Research and
Development Tax Incentive Scheme for the 2018/2019 tax year. This was received in June
2020.
Government grants of $574,936 were received during the year from the Department of
Industry, Innovation and Science as part of the Cooperative Research Centres Projects
(“CRC-P”).
On 25 September 2020, AVL announced that it had received firm commitments for the
placement of 357,142,857 ordinary fully paid shares at a price of $0.014 per share to raise
$5 million before costs. Subject to shareholder approval, for every two shares issued under
the Placement, one free attaching option will be issued. The options will have an exercise
price of $0.025 and will expire two years from the date of issue.
The COVID-19 outbreak was declared a pandemic by the World Health Organisation in March 2020.
The outbreak and the response from Governments dealing with the pandemic has affected general
activity levels within the global community and economies. The Company’s Chairman and Non-
Executive Director are located outside Western Australia and hence the crisis has had an impact on
management as travel is currently not possible due to the mandatory government suspension of all
international travel and the closure of the Western Australia border. The Company has utilised
technology (e.g. video conferencing) to mitigate the effects of this disruption.
Australian Vanadium Limited introduced flexible work practices during the initial phase of the
pandemic which enabled operations to quickly adapt with minimal disruption to the business.
Employees at all levels of the business were asked to change the way they work, and how they
interacted professionally and socially. There have been no COVID-19 cases identified amongst our
employees. In the absence of a vaccine for the virus, the global operating environment remains
volatile and the potential disruption to our suppliers and contractors, and further government
restrictions, have the potential to adversely impact future operations of the Group.
The annual financial statements for the Group have been prepared based on assumptions and
conditions prevalent at 30 June 2020. Given ongoing economic uncertainty, these assumptions
could change in the future.
5
Australian Vanadium Limited 2020 Annual Report
REVIEW OF OPERATIONS
The following is a summary of activities undertaken by Australian Vanadium Ltd, (ASX: AVL, “the
Company” or “AVL”) during the period to the date of this report.
The Australian Vanadium Project
The Australian Vanadium Project (the Project) is located approximately 40km south of Meekatharra
within the northern Murchison region of Western Australia. Access from Perth is via the Great
Northern Highway and the Meekatharra-Sandstone Road.
Figure 1 Location of The Australian Vanadium Project
Mining Lease granted
Mining Lease M51/878 has been granted by DMIRS with an initial term of 21 years from 28 August
2020. The granting of the Mining Lease is a major milestone in the Company’s pathway to
development of the Project.
6
Australian Vanadium Limited 2020 Annual Report
New Mining Licence application
AVL submitted a new Mining Licence Application (MLA51/890) over the Company’s southern fault
blocks.
MLA 51/890 contains Inferred Resources in fault blocks 60 and 70 with:
Total Mineral Resource of 27.5 Mt 0.76% V2O5;
3D Magnetic Inversion model showing additional strike of 500m with potential for further high-
Including high-grade massive magnetite zone of 14.8 Mt at 0.99% V2O5; and
quality resources pending drilling.
Previous drill results in southern fault blocks returned high-grade vanadium with only minor
weathering, implying high magnetic recoveries and concentrate quality. The application provides
flexibility for future infrastructure works and further optimisation of the Project’s mine-life.
Figure 2 AVL Tenure over the Australian Vanadium Project and location of granted M 51/878
7
Australian Vanadium Limited 2020 Annual Report
Drilling results
Drilling work was undertaken during the year, with the following programs being included in the
Mineral Resource update:
Reverse Circulation (RC) drilling from late 2018 in fault block 6;
RC pre-collar/Diamond tail drilling from January - April 2019 in fault blocks 17 and 20;
The 13 RC holes completed in October 2019; and
The 30 RC holes completed in December 2019.
Mineral Resource Update
A Mineral Resource update was announced on 4 March 2020. The update brought the total Mineral
Resource to 208.2Mt at 0.74% V2O5 from massive and disseminated zones consisting of:
Measured Mineral Resource of 10.1Mt at 1.14% V2O5,
Indicated Mineral Resource of 69.6Mt at 0.72% V2O5, and
Inferred Mineral Resource of 128.5Mt at 0.73% V2O5.
The revised Mineral Resource included a distinct massive magnetite high-grade zone of 87.9Mt at
1.06% V2O5 consisting of:
Measured Mineral Resource of 10.1Mt at 1.14% V2O5,
Indicated Mineral Resource of 25.1Mt at 1.10% V2O5, and
Inferred Mineral Resource of 52.7Mt at 1.04% V2O5.
Successful conversion of 13Mt of existing high-grade Mineral Resources from Inferred to Indicated
category strongly supports ongoing optimisation studies to extend life of mine. Detailed magnetic
susceptibility analysis has outlined the opportunity for improved vanadium recovery (see Table 1
and 2, on pages 68 and 69 respectively).
Water Access Agreement with Westgold
AVL signed a co-operation and access agreement with Westgold Resources Limited (ASX: WGX)
for access to excess water from Westgold’s operations at Reedy’s to support the Project. Potential
benefits to arise from the agreement include:
Reduced groundwater and environmental impacts.
Substantial de-risking of the water volume and quality requirements.
In addition to water access, the agreement provides a platform for friendly collaboration over access
and the use of new and existing roads to move ore, materials and products within the companies’
tenements.
8
Australian Vanadium Limited 2020 Annual Report
Figure 3 Westgold Resources and AVL Tenement Locations with planned road
Pilot Scale Study
Between January and April 2019, AVL collected 30 tonnes of oxide, transitional and fresh core
samples from the Project. The drilling was undertaken to provide samples for a pilot scale
metallurgical test program and to support a resource update.
During the past year AVL has worked through a range of tests for the Crushing, Milling and
Beneficiation (CMB) process and the refinery processes. Key successes through the testwork period
have included:
High-purity 99.4% V2O5 was produced from pre-pilot testwork, confirming the outstanding
quality of AVL’s standard mine product when in operation.
93.3% average extraction was achieved through pilot scale roast and leach testwork,
confirming benchscale test results.
Vanadium concentrate generated from life-of mine average feed blend achieved 76%
vanadium recovery at a grade of 1.37% V2O5, with earlier years (0-5 years) achieving a 69%
vanadium recovery at a grade of 1.39% V2O5.
The CMB pilot concentrates were exceptionally low in silica for a vanadiferous
titanomagnetite (VTM) project. The Y0-5 concentrate having 1.83% SiO2 (0.86% Si) and the
LOM concentrate 1.68% SiO2 (0.79% Si). A clean vanadium leachate is also essential to
produce high purity vanadium oxides for vanadium redox flow batteries (VRFBs) and other
specialty chemical applications.
Extensive pyrometallurgical pilot testwork has been undertaken to de-risk plant design and
construction.
9
Australian Vanadium Limited 2020 Annual Report
Pellet Roast Results, improvement to PFS results
AVL’s pre-feasibility vanadium roast leach extraction was 84.3%, based on benchscale testwork for
a standard flowsheet which is well supported by documented industry performance. Vanadium leach
extraction using a pelletised concentrate feed, achieved an average of 93.3% leach extraction. After
allowing for scaling up, this is estimated to deliver an 8% relative improvement on the basis applied
in the PFS. These test outcomes relate to the processing of concentrate designed to represent the
average of the first five years of forecast production and build on results from previous AVL bench
scale tests, where 587kg of concentrate was roasted in batches and similar vanadium leach
extractions were observed.
AVL is finalising testing of the downstream hydrometallurgical circuit which will complete the
metallurgical design. Various programs are underway with CRC-P partners Wood, ANSTO and ALS
Metallurgy aimed at further innovating the process flowsheet to assure a competitive low-cost, low-
risk outcome. Roasted concentrate already generated from the pilot program is being utilised for
current CRC-P work.
Iron-Titanium Co-Product
Feasibility study innovations have resulted in multiple high-value pathways for an iron-titanium co-
product generated from the Project. Funded by the CRC-P research grant, AVL is pursuing further
value addition to the iron co-product that includes upgrading iron-titanium co-products by further
removal of gangue and other techniques and developing a processing solution for separating
titanium from the calcine.
Piloting testwork on the vanadium recovery flowsheet has enabled the production of representative
samples of calcine which are being used for marketing and further characterisation testwork.
Potential markets include:
Iron producers or specialty traders (sold as a blending feedstock) or high titanium iron
concentrate for blast furnace refractory protection.
Australian iron ore or concentrate producer for use as a silica blending control.
High titanium iron pellet for blast furnace refractory protection.
Moderate 58-64% Fe grade concentrate.
90-96% Fe as merchant pig iron or iron powder.
45-52% TiO2 product for sale into the ilmenite market.
Dense media for mineral separations.
92% TiO2 product for sale into the rutile market.
Major Project Status and Lead Agency Status
On 6 September 2019, the Project was awarded Major Project Status by the Federal Government.
The award provides formal recognition of the national strategic significance of the Project, through
its contribution to economic growth, employment and contribution to regional Western Australia. The
award gives AVL a single point of contact for assistance with navigating the approval process and
relevant Government legislation.
10
Australian Vanadium Limited 2020 Annual Report
The Project was subsequently awarded Lead Agency Status by the Western Australian State
Government through the Department of Mines, Industry Regulation and Safety (DMIRS). Lead
Agency Status provides AVL with advice and assistance in the coordination of project approvals
across government. Regular meetings are being held with DMIRS and the Department of Jobs,
Tourism, Science and Innovation (JTSI) has also offered assistance to the Company.
Option agreement over land for vanadium processing plant
AVL has signed an option agreement over a potential location for its vanadium processing plant.
The land is located inland from the port city of Geraldton (see Figure 1). The location allows AVL to
access existing gas, water, road and rail infrastructure in the mid-west region. Domestic gas prices
close to the coast are particularly attractive in comparison to prices elsewhere in the country and the
world. The option agreement is renewable for two further one-year term extensions from October
2020.
Letter of Intent signed with Yanshan Vanadium Titanium
AVL signed a Letter of Intent with Hebei Yanshan Vanadium and Titanium Industry Technology
Research Co Ltd, a subsidiary of HBIS Group Chengsteel (Yanshan Vanadium Titanium). The Letter
of Intent confirms interest from both parties to discuss a binding purchase and sale agreement for
AVL’s vanadium products. A subsequent visit the Chengde headquarters of HBIS by Vincent Algar
and Todd Richardson allowed for technical discussions that were undertaken regarding potential
improvements to the Project’s process, which Yanshan Vanadium Titanium believes could result in
cost improvements.
Discussions between the two parties are ongoing to expand the terms of discussion. A pause to
negotiations occurred due to COVID-19 restrictions.
MOU for vanadium offtake and electrolyte sales
In September 2020, AVL signed an MOU with CellCube VRFB manufacturer Enerox GmbH. The
MOU includes development of:
Vanadium pentoxide offtake arrangements to support global VRFB sales by Enerox;
A vanadium electrolyte facility in Australia to supply Enerox battery installations, and
Assistance with arrangement of vanadium electrolyte leasing.
COVID response – business strategy update
In March 2020, the Company provided an update on its business strategy to navigate through the
global COVID-19 pandemic. Located in Western Australia, the Company has been fortunate to have
had a low overall impact on its operations. Initial measures included reduced salaries for staff,
redundancies where required, reduction of external consulting activity and a postponement of field-
based activities relating to geotechnical work for site location and mine design.
In spite of the pandemic, the Company has maintained its focus on moving the Project forward
towards production and navigated through the working environment that the world has found itself
in by embracing online meetings and conference presentations.
11
Australian Vanadium Limited 2020 Annual Report
COMPLETION OF BANKABLE FEASIBILITY STUDY
The Company is currently in the process of completing a Bankable Feasibility Study for the
Development of the Australian Vanadium Project at Meethatharra. AVL completed a Pre-Feasibility
Study in November 2018. The Company has since undertaken extensive and rigorous pilot test work
at local and overseas laboratories, the results of which will form the basis of the final processing
design. Some delays have occurred from Covid-related slowdowns of test work, but overall the
Company is progressing well to complete the Bankable Feasibility Study by mid-2021. Pending a
positive finance decision and expedient environmental approval, long lead time item ordering, front
end engineering design and construction will commence shortly afterwards.
VSUN Energy
VSUN Energy Pty Ltd is the Company’s 100% owned subsidiary with the sole focus of developing
the Australian market for vanadium redox flow batteries (VRFBs). The expansion of the Australian
and global VRFB market opens up significant new opportunities for additional consumption of high-
purity vanadium products used in vanadium electrolyte.
Metrowest MOU
In August 2019 AVL and VSUN Energy signed a non-binding MOU to facilitate the installation of
energy storage solutions using VRFB technology. The companies continue to work with each other
on potential projects. Metrowest has a strong background in Engineering, Procurement and
Construction (EPC) and a deep knowledge in the power industry.
VRFB Installation at Priest Bros Orchard, Victoria
VSUN Energy secured the sale of a 20kW/80kWh VRFB to be installed at an orchard in Pakenham,
Victoria. The system will be attached to an existing 60kW solar array which will be expanded by a
further 100kW of solar generation. The system will provide a minimum of four hours of stored
renewable energy with its designed configuration and will allow the client to increase their onsite
renewable generation and consumption, far in excess of what would be capable with a standalone
solar array. The sale is subject to the award of the Victorian on-farm energy grant under the
Agriculture Investment Energy Plan which is awaiting approval.
VRFB Installation at Meredith Dairy, Victoria
VSUN Energy also secured the sale of an 80kW/320kWh VRFB to be installed at Meredith Dairy in
Victoria. The system will be attached to a 450kW solar array. Meredith Dairy’s goal is to have a
sustainable operation with full power being supplied via onsite renewable generation. The sale is
subject to the award of the Victorian on-farm energy grant under the Agriculture Investment Energy
Plan which is awaiting approval. This part of the project is part one of a two stage project which will
see the expansion of the battery system and additional PV installed.
Solar and VRFB Installation at Strelley Community School
VSUN Energy signed an MOU for a period of 12 months from September 2019 with Nomads
Charitable & Educational Foundation (Nomads). VSUN Energy has applied for a grant from the
Western Australian State Government to fund the installation of a renewable energy solution at
Strelley Community School in the Pilbara region of Western Australia on behalf of Nomads. The
result of the grant application is expected in September or October 2020.
12
Australian Vanadium Limited 2020 Annual Report
Queensland Farmers Federation Microgrid grant
VSUN Energy was included as part of a group of companies to receive a grant from the Federal
Government’s Regional and Remote Communities Reliability Fund in June 2020. VSUN Energy is
included in the group to provide energy analysis and modelling for VRFBs as a potential battery
storage solution. The project will consider the benefits of microgrids and energy storage to
Queensland and New South Wales agricultural energy consumers and networks.
Other members of the group include Cotton Australia, ReAqua and Constructive Energy.
Reseller Agreement for CellCube VRFBs
In September 2020 VSUN Energy signed a Value Added Reseller (VAR) agreement with Enerox
GmbH for the supply and installation of CellCube VRFBs. The VAR agreement provides VSUN
Energy with the non-exclusive right to market, sell and install Enerox products in Australia for a
period of 2 years. The Enerox CellCube has been installed in many locations around the world, with
an installation of a 10kW/100kWh system in Busselton by VSUN Energy being the second CellCube
VRFB to be installed in Australia.
VSUN Energy continues to offer batteries from a range of manufacturers to cover all size
requirements.
Coates Project
The Coates vanadium deposit is situated approximately 35km east of metropolitan Perth in the Shire
of Wundowie. Exploration at Coates was undertaken in the 1970s after its discovery in the early
1960s. Mining plans have previously been produced by Agnew Clough Ltd on the Coates vanadium
deposit, although no significant mining was undertaken.
Planned drilling program
A Program of Works (PoW) on E70/4924-I over the Coates vanadium deposit was approved by
DMIRS. The application was for drilling of up to 15 diamond core holes. AVL signed a joint venture
agreement with private company Ultra Power Systems (UPS) which was terminated in May 2020
due to non-compliance with the terms of the agreement.
Palladium-Nickel-Copper potential
Further to the Chalice Gold Mines (ASX: CHN) Julimar project nickel-copper-platinum group
elements (PGE) discovery 29km NNW of AVL’s Coates tenement, the Company reviewed its
planned exploration and drilling programs to include targeting for base metals and PGE.
Platinum Group Elements, among the rarest metals on earth, comprise ruthenium, rhodium,
palladium, osmium, iridium, and platinum which are elements with high melting points, corrosion
resistance and catalytic qualities.
Strategic alliance with Lithium Australia and Mercator Metals
AVL created a strategic alliance with Lithium Australia NL (ASX: LIT) and private company Mercator
Metals Pty Ltd in May 2020 to collaboratively advance exploration activities targeting Ni-Cu-PGE
mineralisation at the Coates Mafic Intrusive Complex. The companies’ tenements adjoin each other
and cover the mafic-ultramafic rock sequences containing the Coates Gabbro. The combined
tenements provide a continuity for efficient exploration.
13
Australian Vanadium Limited 2020 Annual Report
Figure 4 Location of Coates Project alongside known Base Metal, VTM and PGE Projects
Lithium Australia announced geochemistry results
In July 2020 Lithium Australia announced historical geological and geochemical information that it
had compiled with AVL. This included geochemical analyses from 522 vacuum holes drilled within
Mercator Minerals’ R70/59 in 2013 which supports the exploration strategy for Ni, Cu, PGE and Au.
Approvals for fieldwork are underway, with early modelling of available aeromagnetic data completed.
Bryah Resources Limited
AVL presently holds 11.25 million shares and 1.25 million listed options (expiry 31 October 2020,
exercise price $0.30) in Bryah, which represents a 9.27% holding in that company. Bryah Resources
Limited is a gold, base metals and manganese exploration company with tenements exclusively in
Western Australia.
14
Australian Vanadium Limited 2020 Annual Report
DIRECTORS
The names of the Directors of the Company in office during or since the end of the financial year
and up to the date of this report are as follows. Directors were in office for this entire period unless
otherwise stated.
Name
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris
Position
Managing Director
Executive Director
Non-Executive Chairman
Non-Executive Director
The qualifications, experience and special responsibilities of each Director are as follows:
Vincent Algar – BSC (Hons) Geology MAusIMM
Mr Vincent Algar is a geologist by profession with over 28 years of experience in the mining industry
spanning underground and open cut mining operations, greenfields exploration, project development
and mining services in Western Australia and Southern Africa. He has significant experience in the
management of publicly listed companies, which includes the entire compliance, marketing and
management process and encompasses the development of internal geological and administrative
systems, exploration planning and execution, plus project acquisition and deal completion.
During the past three years, Mr Algar was also a director of the following ASX listed companies:
Nil.
Leslie Ingraham
Mr Ingraham has been in private business for over 30 years and is an experienced mineral
prospector and professional investor. He has successfully worked as a consultant for both private
companies and companies listed on the ASX. Core competencies include capital raising and
shareholder liaison.
During the past three years, Mr Ingraham was also a director of the following ASX listed companies:
Bryah Resources Limited – appointed 15 November 2017
Brenton Lewis – BBSc (Hons), MBSc
Mr Lewis is an academic who has spent the past 20 years in the tertiary education sector. He has
held management positions including Head of Department and Head of Post-Graduate Studies. He
has published, taught and researched in areas including ethics and psychopathology. He has been
a consultant to various health agencies including the Hong Kong Hospital Authority and the WA
Health Department. He has served on numerous boards of management including academic and
non-government organisations.
During the past three years, Mr Lewis was also a director of the following ASX listed companies:
Nil.
15
Australian Vanadium Limited 2020 Annual Report
Daniel Harris
Mr Harris brings with him a vast amount of expertise in the vanadium industry and an understanding
of the resource sector from both a technical and financial perspective. Recent roles include the
interim CEO and Managing Director at Atlas Iron Limited; CEO & Chief Operating Officer at Atlantic
Ltd; Vice President & Head of Vanadium Assets at Evraz Group; Managing Director at Vametco
Alloys; General Manager of Vanadium Operations at Strategic Minerals Corporation and as an
independent technical and executive consultant to GSA Environmental Limited in the United
Kingdom.
During the past three years, Mr Harris was a director of the following ASX listed companies:
Atlas Iron Limited – appointed 6 May 2016
Paladin Energy Limited – appointed 1 February 2018; resigned 11 December 2019
QEM (Queensland Energy Minerals) – appointed 19 March 2018
COMPANY SECRETARY
Neville Bassett
Mr Bassett is a Chartered Accountant with over 35 years of experience. He has been involved with
a diverse range of Australian public listed companies in directorial, company secretarial and financial
roles.
Interests in the shares and options of the company and related bodies corporate
As at the date of this report, the interests of the Directors and executives in the shares and options
of Australian Vanadium Limited were:
Shares
Vincent Algar 1
Leslie Ingraham 2
Brenton Lewis 3
Daniel Harris 4
Todd Richardson 5
Number of
Ordinary Shares
Number of Options
Over Ordinary Shares
7,663,436
30,478,774
15,028,600
2,500,000
380,000
-
-
-
-
-
1 Mr Algar also holds 21,000,000 performance rights which were cancelled on 10 July 2020.
2 Mr Ingraham also holds 21,000,000 performance rights which were cancelled on 10 July 2020.
3 Mr Lewis also holds 12,000,000 performance rights which were cancelled on 10 July 2020.
4 On 8 July 2019, Mr Harris acquired 2,500,000 AVL shares on market at 1.4 cents per share. Mr Harris also
holds 6,000,000 performance rights which were cancelled on 10 July 2020.
5 Mr Richardson holds 4,573,125 performance rights with an expiry date of 31 December 2020. Refer to
Remuneration Report for further details.
16
Australian Vanadium Limited 2020 Annual Report
MEETINGS OF DIRECTORS
The number of meetings of Directors (including meetings of committees of Directors) held during the
year and the number of meetings attended by each Director were as follows:
Number Eligible to Attend
Number Attended
Directors
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris
4
4
4
4
4
4
4
4
INSURANCE OF OFFICERS
The Company has in place an insurance policy insuring Directors and Officers of the Company
against any liability arising from a claim brought by a third party against the Company or its Directors
and Officers, and against liabilities for costs and expenses incurred by them in defending any legal
proceedings arising out of their conduct whilst acting in their capacity as a Director or Officer of the
Company, other than conduct involving a wilful breach of duty in relation to the Company.
In accordance with a confidentiality clause under the insurance policy, the amount of the premium
paid to the insurers has not been disclosed. This is permitted under Section 300(9) of the
Corporations Act 2001.
ENVIRONMENTAL REGULATIONS
The Group’s operations are subject to various environmental laws and regulations under government
legislation. The exploration tenements held by the Group are subject to these regulations and there
have not been any known breaches of any environmental regulations during the year under review
and up until the date of this report.
CORPORATE INFORMATION
Nature of Operations and Principal Activities
The principal continuing activities during the year of entities within the Consolidated Entity were
exploration for vanadium/titanium and other economic resources, the development of vanadium
electrolyte production and the sale of VRFB systems.
17
Australian Vanadium Limited 2020 Annual Report
Corporate Structure
Australian Vanadium Limited is a limited liability company that is incorporated and domiciled in
Australia. The Company has prepared a consolidated financial report incorporating the entities that
it controlled during the financial year as follows:
Australian Vanadium Limited
VSUN Energy Pty Ltd
Formerly Australian Vanadium Resources Pty Ltd
South African Lithium Pty Ltd
Australian Uranium Pty Ltd
Cabe Resources Limited
Parent entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
100% owned controlled entity
OPERATING AND FINANCIAL REVIEW
Operating Review
A review of operations for the financial year is contained within this Directors’ Report. The
consolidated loss after income tax for the financial year was $2,713,630 (2019: $5,216,688).
Financial Position
At 30 June 2020, the Group had cash reserves of $5,541,703 (2019: $4,417,373). The net assets of
the Group have increased by $3,413,016. The increase is largely due to the following factors:
the issue of 573,476,491 new shares to raise $6,594,975;
the Group received $2,083,827 in Research and Development Tax Incentive for the 2020
financial year of which $1,834,184 was received in June 2020;
ongoing exploration and evaluation of The Australian Vanadium Project;
advancement of the vanadium in energy storage strategy;
incurring overheads and running costs consistent with operating a listed company; and
remuneration of key management personnel essential to the continued success of the Group.
Following balance date, the Company announced that it had received firm commitments for the
placement of 357,142,857 ordinary fully paid shares at a price of $0.014 per share to raise $5 million
before costs. Subject to shareholder approval, for every two shares issued under the Placement,
one free attaching option will be issued. The options will have an exercise price of $0.025 and will
expire two years from the date of issue.
Refer to Note 1(b) for further disclosures regarding the Group’s financial position.
Dividends
No dividends were paid during the year and no recommendation is made as to dividends.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Significant changes in the state of affairs of the Company during the financial year are detailed in
the Company’s review of operations. In the opinion of the Directors, there were no other significant
changes in the state of affairs of the Company that occurred during the financial year under review
not otherwise disclosed in this Annual Report.
18
Australian Vanadium Limited 2020 Annual Report
EVENTS SUBSEQUENT TO REPORTING DATE
On 10 July 2020 the Company cancelled 60,000,000 performance rights on issue. The performance
rights were issued on 12 July 2017 with vesting conditions relative to the determination of a JORC
resource on the Company’s Blesberg Lithium-Tantalum Project.
On 28 August 2020 the Company was granted Mining Lease M51/878 by the Western Australian
Government Department of Mines, Industry Regulation and Safety for the Australian Vanadium
Project. The initial term of the mining lease is 21 years.
On 25 September 2020, AVL announced that it had received firm commitments for the placement
of 357,142,857 ordinary fully paid shares at a price of $0.014 per share to raise $5 million before
costs. Subject to shareholder approval, for every two shares issued under the Placement, one free
attaching option will be issued. The options will have an exercise price of $0.025 and will expire
two years from the date of issue.
No other matters or circumstances have arisen since the end of the financial year which significantly
affected, or may significantly affect, the operations of the Company, the results of those operations,
or the state of affairs of the Company in subsequent financial years, other than as outlined in the
Company’s review of operations which is contained in this Annual Report.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Company will continue to pursue its principal activity of exploration and evaluation, and
associated activities as outlined in the Company’s review of operations. The Company will also
continue to pursue other potential investment opportunities to enhance shareholder value.
19
Australian Vanadium Limited 2020 Annual Report
REMUNERATION REPORT (AUDITED)
This report details the nature and amount of remuneration for each director and executive of
Australian Vanadium Limited. The information provided in the remuneration report includes
remuneration disclosures that are audited as required by section 308(3C) of the Corporations Act
2001.
For the purposes of this report Key Management Personnel of the Group are defined as those
persons having authority and responsibility for planning, directing and controlling the major activities
of the Group, directly or indirectly, including any director (whether executive or otherwise) of the
parent company.
For the purposes of this report the term “executive” includes those Key Management Personnel who
are not Directors of the parent company.
Remuneration Committee
The full Board carries out the role and responsibilities of the Remuneration Committee and is
responsible for determining and reviewing the compensation arrangements for the Directors
themselves, the Managing Director and any Executives.
Executive remuneration is reviewed annually having regard to individual and business performance,
relevant comparative remuneration and internal and independent external advice.
Remuneration Policy
The board policy is to remunerate Directors at market rates for time, commitment and responsibilities.
The Board determines payments to the Directors and reviews their remuneration annually, based on
market practice, duties and accountability. Independent external advice is sought when required.
The maximum aggregate amount of Directors’ fees that can be paid is subject to approval by
shareholders in a general meeting, from time to time. Fees for non-executive directors are not linked
to the performance of the Consolidated Entity. However, to align Directors’ interests with
shareholders’ interests, the Directors are encouraged to hold shares in the Company.
The Company’s aim is to remunerate at a level that will attract and retain high-calibre directors and
employees. Company Directors and Officers are remunerated to a level consistent with the size of
the Company.
The Executive Directors and full-time Executives receive a superannuation guarantee contribution
required by the government, which is currently 9.5%, and do not receive any other retirement benefits.
Some individuals, however, may choose to sacrifice part of their salary to increase payments towards
superannuation.
All remuneration paid to Directors and Executives is valued at the cost to the Company and
expensed. The Board believes that it has implemented suitable practices and procedures that are
appropriate for an organisation of its size and maturity. During the year the Company included a
performance-based component of remuneration for the Directors.
20
Australian Vanadium Limited 2020 Annual Report
Remuneration Structure
In accordance with best practice corporate governance, the structure of non-executive director and
executive compensation is separate and distinct.
Non-Executive Director Compensation
Objective
The Board seeks to set aggregate compensation at a level that provides the Company with the ability
to attract and retain directors of the highest calibre, whilst incurring a cost that is acceptable to
shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate compensation of non-
executive directors shall be determined from time to time by a general meeting. An amount not
exceeding the amount determined is then divided between the Directors as agreed. The latest
determination approved by shareholders was an aggregate compensation of $500,000 per year.
The amount of aggregate compensation sought to be approved by shareholders and the manner in
which it is apportioned amongst Directors is reviewed annually. The Board considers advice from
external consultants as well as the fees paid to non-executive directors of comparable companies
when undertaking the annual review process. Non-Executive Directors’ remuneration may include
an incentive portion consisting of options, as considered appropriate by the Board, which may be
subject to shareholder approval in accordance with ASX Listing Rules.
Separate from their duties as Directors, the Non-Executive Directors may undertake work for the
Company directly related to the evaluation and implementation of various business opportunities,
including mineral exploration/evaluation and new business ventures, for which they receive a daily
rate. These payments are made pursuant to individual agreement with the Non-Executive Directors
and are not taken into account when determining their aggregate remuneration levels.
Executive Compensation
Objective
The entity aims to reward Executives with a level and mix of compensation commensurate with their
position and responsibilities within the entity so as to:
reward Executives for company and individual performance against targets set by appropriate
benchmarks;
align the interests of Executives with those of shareholders;
ensure total compensation is competitive by market standards.
link rewards with the strategic goals and performance of the Company; and
Structure
In determining the level and make-up of executive remuneration, the Board negotiates a
remuneration to reflect the market salary for a position and individual of comparable responsibility
and experience. Due to the limited size of the Company and of its operations and financial affairs,
the use of a separate remuneration committee is not considered appropriate.
21
Australian Vanadium Limited 2020 Annual Report
Remuneration is regularly compared with the external market by participation in industry salary
surveys and during recruitment activities generally. If required, the Board may engage an external
consultant to provide independent advice in the form of a written report detailing market levels of
remuneration for comparable executive roles.
Remuneration consists of a fixed remuneration and a long-term incentive portion as considered
appropriate. Compensation may consist of the following key elements:
Fixed Compensation;
Variable Compensation;
Short Term Incentive (STI); and
Long Term Incentive (LTI).
Fixed Remuneration
The level of fixed remuneration is set so as to provide a base level of remuneration which is both
appropriate to the position and is competitive in the market. Fixed remuneration is reviewed annually
by the Board having regard to the Company and individual performance, relevant comparable
remuneration in the mining exploration sector and external advice. The fixed remuneration is a base
salary or monthly consulting fee.
Variable Pay - Long Term Incentives
The objective of long-term incentives is to reward directors/executives in a manner which aligns this
element of remuneration with the creation of shareholder wealth. The incentive portion is payable
based upon attainment of objectives related to the Director’s/Executive’s job responsibilities. The
objectives vary, but all are targeted to relate directly to the Company’s business and financial
performance and thus to shareholder value.
Long term incentives (LTIs) granted to directors and executives are delivered in the form of options
or performance rights. LTIs granted to executives are delivered in the form of employee share
options or performance rights. Options are issued at an exercise price determined by the Board at
the time of issue. The employee share options generally vest over a selected period.
The objective of the granting of options or rights is to reward executives in a manner which aligns
the element of remuneration with the creation of shareholder wealth. As such LTIs are made to
executives who are able to influence the generation of shareholder wealth and thus have an impact
on the Company’s performance.
The level of LTIs granted is, in turn, dependent on the Company’s recent share price performance,
the seniority of the executive, and the responsibilities the executive assumes in the Company.
Typically, the grant of LTIs occurs at the commencement of employment or in the event that the
individual receives a promotion and, as such, is not subsequently affected by the individual’s
performance over time.
22
Australian Vanadium Limited 2020 Annual Report
Employment Contracts of Directors and Senior Executives
The employment arrangements of the Non-Executive Chairman and Executive Directors are not
formalised in a contract of employment. Remuneration and other terms of employment for the Chief
Executive Officer/Managing Director are formalised in an employment contract. Major provisions are
set out below.
Vincent Algar, Managing Director:
Annual base salary of $300,000 plus superannuation;
Notice period required to be given by the Company or employee for termination of one month,
except in the case of gross misconduct;
Payment of termination benefit on termination by either party equal to the amount in lieu of
the notice period.
Compensation Options Granted to Key Management Personnel
No options were granted to Directors or Executives during the year ended 30 June 2020.
Performance Rights and Shares Issued to Key Management
Personnel on Exercise of Compensation Options
On 29 October 2019, 1,219 512 performance rights held by Mr Richardson converted to ordinary shares.
On 8 April 2020, Mr Richardson was granted a further 4,573,125 performance rights with a vesting date of 6
July 2020. These performance rights were subject to satisfying the vesting condition, being continuous
employment from grant date to vesting date.
Compensation Options Lapsed During the Year
No options previously issued to Key Management Personnel lapsed during the year.
23
Australian Vanadium Limited 2020 Annual Report
Details of Remuneration for the Year
Details of the remuneration of Directors and specified Executives of Australian Vanadium Limited
are set out in the following table. There are no other employees who are required to have their
remuneration disclosed in accordance with the Corporations Act 2001.
Short-Term
Benefits
Salary &
Fees
Post
Employment
Super-
annuation
Directors
Vincent Algar
Leslie Ingraham 1
Brenton Lewis
Daniel Harris
Total Directors
Executives
Todd Richardson 2
(Chief Operating
Officer)
Total Executives
Key Management
Personnel
Year
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
$
275,000
254,167
177,133
180,000
77,917
62,000
81,250
70,000
611,300
566,167
275,577
254,167
275,577
254,167
886,877
820,334
$
26,125
24,146
16,828
17,100
7,402
5,890
-
-
50,355
47,136
26,180
24,146
26,180
24,146
76,535
71,282
Share-
Based
Payments
Options &
Rights
$
-
-
-
-
-
-
-
-
-
-
42,648
34,146
42,648
34,146
42,648
34,146
Total
$
301,125
278,313
193,961
197,100
85,319
67,890
81,250
70,000
661,655
613,303
344,405
312,459
344,405
312,459
1,006,060
925,762
Performance
Based
Remuneration
%
0
0
0
0
0
0
0
0
0
0
12
11
12
11
4
4
1 The Group paid Streamline Capital Pty Ltd (a related party of Mr Leslie Ingraham) $85,431 during the period
(refer to Note 18b).
2 On 8 April 2020, Mr Richardson was granted a further 4,573,125 performance rights with a vesting date of
6 July 2020. These performance rights were subject to satisfying the vesting condition, being continuous
employment from grant date to vesting date. The performance rights were valued at the share price on
grant date being 1 cent. A total of $42,648 in share based payments was recognised to 30 June 2020 based
on the vesting period.
No other performance-related payments were made during the year. Performance hurdles are not
attached to remuneration options if issued, however the Board determines appropriate vesting
periods to provide rewards over a period of time to Key Management Personnel.
24
Australian Vanadium Limited 2020 Annual Report
Share holdings of Key Management Personnel
Balance
1 July
2019
7,663,436
30,478,774
15,028,600
-
380,000
Directors
Vincent Algar
Leslie Ingraham
Brenton Lewis
Daniel Harris 1
Todd Richardson 2
Received as
Remuneration
Options
Exercised
Acquired/
(Disposed)
-
-
-
-
-
-
-
-
-
-
-
-
-
2,500,000
(1,219,512)
Net
Change/
Other
-
-
-
-
1,219,512
Balance
30 June 2020
7,663,436
30,478,774
15,028,600
2,500,000
380,000
1 On 8 July 2019, Mr Harris acquired 2,500,000 AVL shares on market at 1.4 cents per share.
2 On 29 October 2019, 1,219 512 performance rights held by Mr Richardson converted to ordinary shares.
Performance rights holdings of Key Management Personnel
Balance
1 July 2019
Granted as
Remuneration
Vested &
Converted
Lapsed/
Cancelled
Balance
30 June 2020
Number
Vested &
Exercisable
Directors
Vincent Algar 1
Leslie Ingraham 2
Brenton Lewis 3
Daniel Harris 4
Todd Richardson 5
21,000,000
21,000,000
12,000,000
6,000,000
1,219,512
-
-
-
-
4,573,125
-
-
-
-
(1,219,512)
-
-
-
-
-
21,000,000
21,000,000
12,000,000
6,000,000
4,573,125
-
-
-
-
-
1 Mr Algar held 21,000,000 performance rights (2019: 21,000,000) which were cancelled on 10 July 2020.
2 Mr Ingraham held 21,000,000 performance rights (2019: 21,000,000) which were cancelled on 10 July 2020.
3 Mr Lewis held 12,000,000 performance rights (2019: 12,000,000) which were cancelled on 10 July 2020.
4 Mr Harris held 6,000,000 performance rights (2019: 6,000,000) which were cancelled on 10 July 2020.
5 During the year, Mr Richardson converted 1,219,512 performance rights into ordinary shares. Mr
Richardson holds 4,573,125 performance rights (2019: 1,219,512) which expire 31 December 2020.
All equity transactions with Key Management Personnel have been entered into under terms and
conditions no more favourable than those the Group would have adopted if dealing at arm’s length.
Loans and Other Transactions with Key Management Personnel
There were no loans to or from, or other transactions with, Key Management Personnel.
SHARE OPTIONS
As at the date of this report, no options were outstanding over unissued ordinary shares.
25
Australian Vanadium Limited 2020 Annual Report
AUDITOR
Armada Audit & Assurance Pty Ltd continues in office in accordance with Section 327 of the
Corporations Act 2001.
NON-AUDIT SERVICES
No non-audit services were provided by our auditors, Armada Audit & Assurance Pty Ltd during the
year.
AUDITOR’S DECLARATION OF INDEPENDENCE
The auditor’s independence declaration for the year ended 30 June 2020, as required under section
307C of the Corporations Act 2001, has been received and is included within the financial report.
Signed in accordance with a resolution of Directors.
Brenton Lewis
Chairman
29 September 2020
26
Australian Vanadium Limited 2020 Annual Report
For the year ended 30 June 2020
Other income
Impairment of exploration and evaluation asset
Exploration and evaluation expenditure
Depreciation and amortisation
Finance costs
Share-based payments
Directors’ fees and benefits expenses
Realised foreign exchange (loss)/gain
Other expenses
Loss before income tax expense
Income tax expense
Net loss for year
Other comprehensive income
Other comprehensive income for the year, net of tax
Items that cannot be subsequent reclassified to
profit and loss
Movement in fair value of investment classified as fair
value through OCI
Total comprehensive loss attributable to
members of Australian Vanadium Limited
Basic/diluted earnings per share
5
The accompanying notes form part of these financial statements.
Note
2(a)
9
9
8(a) / 11
2(b)
21
2(c)
3
Consolidated
2020
$
187,056
-
(14,976)
(120,430)
(36,142)
(189,080)
(166,569)
(28,211)
(2,345,278)
(2,713,630)
-
2019
$
232,940
(3,296,846)
-
(62,661)
-
(206,466)
(137,890)
-
(1,745,765)
(5,216,688)
-
(2,713,630)
(5,216,688)
10
(67,500)
(240,000)
(2,781,130)
(5,456,688)
Cents
(0.11)
Cents
(0.29)
27
Australian Vanadium Limited 2020 Annual Report
As at 30 June 2020
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Total current assets
Non-current assets
Plant and equipment
Exploration and evaluation expenditure
Financial assets
Right-of-use assets
Total non-current assets
TOTAL ASSETS
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Lease liability
Total current liabilities
Non-current liabilities
Lease liability
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
6
7
8
9
10
11(a)
12
13
11(b)
11(b)
14
14
CONSOLIDATED
2020
$
2019
$
5,541,703
225,196
4,417,373
374,678
5,766,899
4,792,051
238,863
23,479,022
540,000
151,343
278,477
21,750,919
457,500
-
24,409,228
22,486,896
30,176,127
27,278,947
461,179
187,580
106,098
1,286,637
53,885
-
754,857
1,340,522
69,829
69,829
-
-
824,686
1,340,522
29,351,441
25,938,425
89,457,105
(592,572)
(59,513,092)
83,411,527
(732,009)
(56,741,093)
29,351,441
25,938,425
The accompanying notes form part of these financial statements.
28
Australian Vanadium Limited 2020 Annual Report
For the year ended 30 June 2020
Issued
Capital
$
CONSOLIDATED
Accumulated
Losses
$
Other
Reserves
$
Total
$
Balance as at 1 July 2018
76,177,333
(51,524,405)
(562,500)
24,090,428
Loss for the year
Total loss for the year
Movement in fair value of
investments recognised in equity
Total comprehensive loss
Securities issued pursuant to
placements
Shares issued on conversion of
options
Shares issued as consideration
Securities issued on conversion of
performance rights
Share based payments
Capital raising costs
Balance as at 30 June 2019
Opening balance adjustment on
adoption of new accounting standard
AASB16 Leases (note 1 c)
Balance as at 30 June 2019
Restated
Loss for the year
Total loss for the year
Movement in fair value of
investments recognised in equity
Total comprehensive loss
Securities issued pursuant to
placements
Shares issued on conversion of
options
Shares issued as consideration
Securities issued on conversion of
performance rights
Share based payments
Capital raising costs
-
-
-
-
7,182,871
105,000
30,975
-
(84,652)
(5,216,688)
(5,216,688)
-
-
(5,216,688)
-
(240,000)
(5,216,688)
(240,000)
-
-
-
-
-
-
-
-
-
-
70,491
-
(5,456,688)
-
7,182,871
105,000
30,975
70,491
(84,652)
83,411,527
-
(56,741,093)
(58,369)
(732,009)
-
25,938,425
(58,369)
83,411,527
(56,799,462)
(732,009)
25,880,056
-
-
-
(2,713,630)
(2,713,630)
-
-
(2,713,630)
-
(67,500)
(2,713,630)
(67,500)
6,594,975
-
158,516
27,099
-
(735,012)
-
-
-
-
-
-
(2,781,130)
6,594,975
-
158,516
27,099
-
-
-
-
206,937
-
206,937
(735,012)
Balance as at 30 June 2020
89,457,105
(59,513,092)
(592,572)
29,351,441
The accompanying notes form part of these financial statements.
29
Australian Vanadium Limited 2020 Annual Report
For the year ended 30 June 2020
Cash flows from operating activities
Payments to suppliers and employees
Interest received
Net receipts from other entities
CONSOLIDATED
2020
$
2019
$
Note
(3,184,662)
50,219
122,842
(1,894,039)
124,991
124,547
Net cash used in operating activities
6(a)
(3,011,601)
(1,644,501)
Cash flows from investing activities
Expenditure on mining interests
Receipts from Research and Development Tax
Incentives and Government Grants
Payment for property plant & equipment
(4,421,517)
2,658,763
(6,126,233)
-
(3,470)
(62,850)
Net cash used in investing activities
(1,766,224)
(6,189,083)
Cash flows from financing activities
Proceeds from issue of shares
Repayment of lease liabilities
Payment of capital raising costs
14
11
6,594,975
(147,273)
(545,547)
7,182,871
-
(84,696)
Net cash provided by financing activities
5,902,155
7,098,175
Net increase in cash held
1,124,330
(735,409)
Cash at beginning of the financial year
4,417,373
5,152,782
Cash at end of financial year
6
5,541,703
4,417,373
The accompanying notes form part of these financial statements.
30
Australian Vanadium Limited 2020 Annual Report
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These consolidated financial statements and notes represent those of Australian Vanadium Limited
(the “Company”) and Controlled Entities (the “Consolidated Entity” or “Group”) for the year ended 30
June 2020.
Australian Vanadium Limited is a company limited by shares incorporated in Australia whose shares
are publicly traded on the Australian Securities Exchange. The Company is domiciled in Western
Australia. The nature of operations and principal activities of the Group are described in the Directors'
Report.
1(a) Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in
accordance with Australian Accounting Standards, Australian Accounting Interpretations, other
authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the
Corporations Act 2001. The Group is a for-profit entity for financial reporting purposes under
Australian Accounting Standards.
The financial statements have been prepared on an accruals basis and are based on historical costs
modified, where applicable, by the measurement at fair value of selected non-current assets,
financial assets and financial liabilities. Material accounting policies adopted in preparation of these
financial statements are presented below and have been consistently applied unless otherwise
stated.
The Group’s financial statements are presented in Australian dollars.
1(b) Financial Position
The financial report has been prepared on the going concern basis, which contemplates the
continuation of normal business activity and the realisation of assets and the settlement of liabilities
in the normal course of business. The Group’s primary source of funding is from capital raisings,
equity funding and Research and Development Tax Incentives. The Group received $2,083,827 in
Research and Development Tax Incentive for the 2020 financial year of which $1,834,184 was
received in June 2020. Furthermore the Group received Government grants of $574,936 for the year
ended 30 June 2020. For the year ended 30 June 2020 the Group incurred a net loss of $2,713,630
(2019: $5,216,688) and had a working capital surplus of $5,012,042 at 30 June 2020. The Group
has a listed investment of $540,000 (Note 10) that can be sold to generate further funds. The Group
also has the ability to cut back and reduce discretionary costs and reduce/defer budgeted exploration
expenditure as necessary.
On 25 September 2020, AVL announced that it had received firm commitments for the placement of
357,142,857 ordinary fully paid shares at a price of $0.014 per share to raise $5 million before costs.
Subject to shareholder approval, for every two shares issued under the Placement, one free
attaching option will be issued. The options will have an exercise price of $0.025 and will expire two
years from the date of issue.
31
Australian Vanadium Limited 2020 Annual Report
Based on the working capital surplus at 30 June 2020, the cash flow forecast prepared by
management, the value of the listed shares, the $5 million in firm commitments received on 25
September 2020 and the Group’s ability to reduce discretionary costs and defer budgeted
exploration costs, the Directors consider the going concern basis of preparation to be appropriate.
1(c) Adoption of New and Revised Standards
In the current year, the Group has adopted all of the new and revised Standards and Interpretations
issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations
and effective for the current annual reporting period. The following new standard came into effect on
1 July 2019:
AASB 16 Leases
The Company has adopted AASB 16 Leases (AASB 16) from 1 July 2019. AASB 16 introduced a
single, on balance sheet accounting model for lessees. As a result, the Company as a lessee will
recognise right-of-use assets representing its right to use the underlying assets and lease liabilities
representing its obligation to make lease payments.
The changes in the Company’s accounting policies are set out below.
Significant accounting policy
The Company, as a lessee, will assess whether a contract is, or contains, a lease under AASB 16.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
If the contract is assessed to be, or contains, a lease, the Company will recognise a right-of-use
asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, and subsequently at cost less any accumulated depreciation and impairment
losses and adjusted for certain re-measurements of the lease liability.
Depreciation is based on the straight-line method from the commencement date to the earlier of the
end of the useful life of the right-of-use asset or the end of the lease term.
The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company
uses its incremental borrowing rate as the discount rate.
The lease liability is subsequently increased by the interest cost on the lease liability, offset by lease
payments made. It is remeasured when there is a change in future lease payments arising from a
change in an index or rate, a change in the estimate of the amount expected to be payable under a
residual value guarantee, or as appropriate, changes in the assessment of whether a purchase or
extension option is reasonably certain to be exercised or a termination option is reasonably certain
not to be exercised.
Recognition exemption - Short-term leases and leases of low-value assets
The Company has elected not to recognise right-of-use assets and lease liabilities for short-term
leases with a lease term of 12 months or less and leases for low-value assets. The Company will
recognise the payments associated with these leases as an expense on a straight-line basis over
the lease term.
32
Australian Vanadium Limited 2020 Annual Report
1(c) Adoption of New and Revised Standards (continued)
Impact on transition
The Group has adopted AASB 16 Leases retrospectively from 1 July 2019 but has not restated
comparatives for the June 2019 reporting period, as permitted under the specific transitional
provisions in the standard. The reclassifications and the adjustments arising from the new leasing
rules are therefore recognised in the opening balance sheet on 1 July 2019.
The difference between the Lease Liability and the Right-of-Use Asset on date of initial application,
being 1 July 2019, was adjusted to retained earnings as follows:
Total Lease Commitments at 30 June 2019
Value of Lease Liabilities on 1 July 2019 – measured based on the
present value of the remaining lease payments using the lessee’s
incremental borrowing rate at the date of initial application
Right-of-Use Asset on 1 July 2019 – measured as if the Standard
had been applied since the commencement date of the lease using
the lessee’s incremental borrowing rate at the date of initial
application
356,543
287,058
228,689
Adjustment to Retained Earnings on 1 July 2019
Refer to Note 11 for further details regarding the Right of Use Assets and Lease Liabilities for the
year ended 30 June 2020.
58,369
1(d) Statement of Compliance
The financial report was authorised for issue on 29 September 2020.
Australian Accounting Standards set out accounting policies that the AASB has concluded would
result in a financial report containing relevant and reliable information about transactions, events and
conditions. Compliance with Australian Accounting Standards ensures that the financial statements
and notes also comply with International Financial Reporting Standards.
33
Australian Vanadium Limited 2020 Annual Report
1(e) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Australian Vanadium
Limited (“Company” or “Parent Entity”) and its subsidiaries as at 30 June each year (“Consolidated”
or “Group”). Subsidiaries are all entities over which the Group has control. The Group 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 to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and
cease to be consolidated from the date on which control is transferred out of the Group. Investments
in subsidiaries are accounted for at cost in the individual financial statements of Australian Vanadium
Limited. The financial statements of the subsidiaries are prepared for the same reporting period as
the parent company, using consistent accounting policies. In preparing the consolidated financial
statements, all intercompany balances and transactions, income and expenses and profit and losses
resulting from intra-group transactions have been eliminated in full.
1(f) Other Income
Interest Income
Interest earned is recognised as it accrues, taking into account the effective yield on the financial
asset.
Research and Development Tax Incentive (“R&DTI”)
Income derived from successful R&D claims is recognised on receipt of payment. Research and
Development Tax Incentive (“R&DTI”) are accounted for under AASB 120 Government Grants.
R&DTI are recognised on receipt. R&DTI that relate to the acquisition or construction of an asset are
deducted from the carrying amount of the asset in accordance with AASB 120.
Government Grants
Government grants are recogonised as revenue when the conditions attached to the grant are
satisfied. Grants that relate to construction of asset are deducted from the carrying amount of the
asset in accordance with AASB 120
1(g) Cash and Cash Equivalents
Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments
that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash
equivalents as described above, net of outstanding bank overdrafts.
1(h) Trade and Other Receivables
Trade receivables, which generally have 30-90 day terms, are recognised and carried at original
invoice amount less an allowance for any uncollectible amounts. Impairment losses in respect of
debtors is calculated on an expected credit losses method as required by AASB 9 Financial
Instruments.
Income Tax
1(i)
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted by the reporting date.
34
Australian Vanadium Limited 2020 Annual Report
Income Tax (continued)
1(i)
Deferred income tax is provided on all temporary differences at the reporting date between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business combination and that, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; or
when the taxable temporary difference is associated with investments in subsidiaries, associates
or interests in joint ventures, and the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of
unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry-forward of unused tax
credits and unused tax losses can be utilised, except:
when the deferred income tax asset relating to the deductible temporary difference arises from
the initial recognition of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
or
when the deductible temporary difference is associated with investments in subsidiaries,
associates or interests in joint ventures, in which case a deferred tax asset is only recognised
to the extent that it is probable that the temporary difference will reverse in the foreseeable future
and taxable profit will be available against which the temporary difference can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profit will allow the deferred tax asset to
be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply
to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit
or loss.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to
set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate
to the same taxable entity and the same taxation authority. The amount of benefits brought to
account or which may be realised in the future is based on the assumption that no adverse change
will occur in income legislation and the anticipation that the Group will derive sufficient future
assessable income to enable the benefit to be realised and comply with the conditions of deductibility
imposed by the law.
35
Australian Vanadium Limited 2020 Annual Report
1(j) Other Taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
when the GST incurred on a purchase of goods and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or
as part of the expense item as applicable; and
receivables and payables, which are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of
receivables or payables in the statement of financial position. Cash flows are included in the
statement of cash flows on a gross basis and the GST component of cash flows arising from investing
and financing activities, which is recoverable from, or payable to, the taxation authority are classified
as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or
payable to, the taxation authority.
1(k) Financial Instruments
Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions to the instrument. For financial assets, this is the date that the Company
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 significant financing component or if the practical expedient was applied
as specified in AASB 15.63.
Classification and Subsequent Measurement (Financial Liabilities)
Financial liabilities are subsequently measured at:
amortised cost; or
fair value through profit or loss.
A financial liability is measured at fair value through profit or loss if the financial liability is:
a contingent consideration of an acquirer in a business combination to which AASB 3
Business Combinations (AASB 3) applies;
held for trading; or
initially designated as at fair value through profit or loss.
The Company does not measure any financial liabilities 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 period. 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
of initial recognition. A financial liability cannot be reclassified.
36
Australian Vanadium Limited 2020 Annual Report
1(k) Financial Instruments (continued)
Classification and Subsequent Measurement (Financial Assets)
Financial assets are subsequently measured at:
amortised cost;
fair value through other comprehensive income (debt instruments)
fair value through other comprehensive income (equity – no recycling); or
fair value through profit or loss
Based on the two primary criteria, being:
the contractual cash flow characteristics of the financial asset; and
the business model for managing the financial assets.
A financial asset is subsequently measured at amortised cost when it meets the following conditions:
the financial asset is managed solely to collect contractual cash flows; and
it gives rise to cash flows that are solely payments of principal and interest on the principal
amount outstanding on specified dates.
The Group has financial assets that are measured at amortised cost including trade and other
receivables and cash at bank (including term deposits). The Group investment in listed shares (note
10) is measured at fair value through other comprehensive income.
De-recognition
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 the
Statement of Profit or Loss and Other Comprehensive Income.
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 the following criteria need to be satisfied for de-recognition of a 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 Association no longer controls the asset (i.e. it has no practical ability to make unilateral
decisions to sell the asset to a third party).
37
Australian Vanadium Limited 2020 Annual Report
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. 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 simplified approach to impairment, as applicable under AASB 9 for
trade debtors.
1(l) Exploration and Evaluation Expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised
as an exploration and evaluation asset in the year in which they are incurred where the following
conditions are satisfied:
(i)
(ii)
the rights to tenure of the area of interest are current; and
at least one of the following conditions is also met:
a. the exploration and evaluation expenditures are expected to be recouped through
successful development and exploitation of the area of interest, or alternatively, by its
sale; or
b. the exploration and evaluation activities in the area have not, at the reporting date,
reached a stage which permits a reasonable assessment of the existence, or
otherwise, of economically recoverable reserves and active and significant operations
in, or relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to
explore, studies, exploratory drilling, trenching and sampling and associated activities and an
allocation of depreciation and amortisation of assets used in exploration and evaluation activities.
General and administrative costs are only included in the measurement of exploration and evaluation
costs where they are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances
suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable
amount. The recoverable amount of the exploration and evaluation asset (for the cash generating
unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated
to determine the extent of the impairment loss (if any). Where an impairment loss subsequently
reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount, but only to the extent that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset in
previous years.
Where a decision has been made to proceed with development in respect of a particular area of
interest, the relevant exploration and evaluation asset is tested for impairment and the balance is
then reclassified to development.
38
Australian Vanadium Limited 2020 Annual Report
Impairment of Assets
1(m)
The Group assesses at each reporting date whether there is an indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is
the higher of its fair value less costs to sell and its value in use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its
fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to
which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset or cash-generating unit is considered impaired and is written down to
its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. Impairment losses relating to continuing operations are recognised in
those expense categories consistent with the function of the impaired asset unless the asset is
carried at a revalued amount (in which case the impairment loss is treated as a revaluation decrease).
An assessment is also made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. If such
indication exists, the recoverable amount is estimated. A previously recognised impairment loss is
reversed only if there has been a change in the estimates used to determine the asset’s recoverable
amount since the last impairment loss was recognised. If that is the case the carrying amount of the
asset is increased to its recoverable amount. That increased amount cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been
recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset
is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. After
such a reversal, the depreciation charge is adjusted in future periods to allocate the asset’s revised
carrying amount, less any residual value, on a systematic basis over its remaining useful life.
1(n) Trade and Other Payables
Trade payables and other payables are carried at amortised costs and represent liabilities for goods
and services provided to the Group prior to the end of the financial year that are unpaid and arise
when the Group becomes obliged to make future payments in respect of the purchase of these goods
and services.
39
Australian Vanadium Limited 2020 Annual Report
1(o) Share-Based Payment Transactions
The Group may provide benefits to employees (including senior executives) of the Group in the form
of share-based payments, whereby employees render services in exchange for shares or rights over
shares (equity-settled transactions).
When provided, the cost of these equity-settled transactions with employees is measured by
reference to the fair value of the equity instruments at the date at which they are granted. The fair
value is determined by an external valuer using a Black-Scholes model.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Australian Vanadium Limited (market conditions) if
applicable.
The cost of equity-settled transactions is recognised, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled, ending on
the date on which the relevant employees become fully entitled to the award (the vesting period).
The cumulative expense recognised for equity-settled transactions at each reporting date until
vesting date reflects:
(i)
(ii)
the extent to which the vesting period has expired, and
the Group’s best estimate of the number of equity instruments that will ultimately vest.
No adjustment is made for the likelihood of market performance conditions being met as the effect
of these conditions is included in the determination of fair value at grant date. The amount charged
or credited to the statement of profit or loss and other comprehensive income for a period represents
the movement in cumulative expense recognised as at the beginning and end of that period.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is
only conditional upon a market condition.
If the terms of an equity-settled award are modified, as a minimum an expense is recognised as if
the terms had not been modified. In addition, an expense is recognised for any modification that
increases the total fair value of the share-based payment arrangement, or is otherwise beneficial to
the employee, as measured at the date of modification.
If an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and
any expense not yet recognised for the award is recognised immediately. However, if a new award
is substituted for the cancelled award and designated as a replacement award on the date that it is
granted, the cancelled and new award are treated as if they were a modification of the original award,
as described in the previous paragraph.
The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the
computation of earnings per share.
40
Australian Vanadium Limited 2020 Annual Report
Issued Capital
1(p)
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new
shares or options are shown in equity as a deduction, net of tax, from the proceeds.
1(q) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker. The chief operating decision maker, who is responsible for allocating
resources and assessing performance of the operating segments, has been identified as the Board
of Directors of the Company. The Group operates in two segments, being mineral exploration within
Australia and the sale of VRB systems.
1(r) Earnings Per Share
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted
to exclude any costs of servicing equity (other than dividends) and preference share dividends,
divided by the weighted average number of ordinary shares, adjusted for any bonus element.
Diluted earnings per share is calculated as net profit attributable to members of the parent, adjusted
for:
costs of servicing equity (other than dividends) and preference share dividends;
the after-tax effect of dividends and interest associated with dilutive potential ordinary shares
that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the period that would result
from the dilution of potential ordinary shares, divided by the weighted average number of
ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.
Investments in Associates
1(s)
An associate is an entity over which the Consolidated Entity has significant influence. Significant
influence is the power to participate in the financial and operating policy decisions of the investee,
but is not control or joint control over those policies.
Investments in associates are accounted for in the parent entity using the cost method and in the
Consolidated Entity using the equity method of accounting. Under the equity method, the investment
in an associate is initially recorded at cost. The carrying amount of the investment is adjusted to
recognise changes in the Consolidated Entity's share of net assets of the associate since the
acquisition date. The Consolidated Entity’s share of post-acquisition profits or losses is recognised
in the statement of profit or loss and its share of post-acquisition movements in other comprehensive
income is presented as part of the Consolidated Entity's other comprehensive income.
Unrealised gains or transactions between the Group and its associates are eliminated to the extent
of the Group’s interests in the associates. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset transferred. Accounting policies of
associates have been changed where necessary to ensure consistency with the policies adopted by
the Group.
41
Australian Vanadium Limited 2020 Annual Report
1(t) Plant and Equipment
Plant and equipment is stated at cost less accumulated depreciation and any accumulated
impairment losses.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as
follows:
Plant and equipment
Motor vehicles
5 to 10 years
8 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if
appropriate, at each financial year end.
Impairment
(i)
The carrying values of property, plant and equipment are reviewed for impairment at each reporting
date, with recoverable amount being estimated when events or changes in circumstances indicate
that the carrying value may be impaired.
The recoverable amount of plant and equipment is the higher of fair value less costs to sell and value
in use. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
For an asset that does not generate largely independent cash inflows, recoverable amount is
determined for the cash-generating unit to which the asset belongs, unless the asset’s value in use
can be estimated to be close to its fair value.
An impairment exists when the carrying value of an asset or cash-generating units exceeds its
estimated recoverable amount. The asset or cash-generating unit is then written down to its
recoverable amount. Impairment losses are recognised in the statement of profit or loss and other
comprehensive income.
Derecognition and Disposal
(ii)
An item of plant and equipment is derecognised upon disposal or when no further future economic
benefits are expected from its use or disposal.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss
and other comprehensive income in the year the asset is derecognised.
42
Australian Vanadium Limited 2020 Annual Report
1(u) Significant Accounting Estimates and Judgments
Significant Accounting Judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments, apart from those involving estimations, which have the most significant effect on the
amounts recognised in the financial statements.
Exploration and Evaluation Assets
The Group’s accounting policy for exploration and evaluation expenditure is set out at Note 1(l). The
application of this policy necessarily requires management to make certain estimates and
assumptions as to future events and circumstances. Any such estimates and assumptions may
change as new information becomes available. If, after having capitalised expenditure under the
policy, it is concluded that the expenditures are unlikely to be recovered by future exploitation or sale,
then the relevant capitalised amount will be written off to the statement profit or loss and other
comprehensive income.
Significant Accounting Estimates and Assumptions
The carrying amounts of certain assets and liabilities are often determined based on estimates and
assumptions of future events. The key estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying amounts of certain assets and liabilities within the next
annual reporting period are:
Impairment of Assets
(i)
In determining the recoverable amounts of assets, in the absence of quoted market prices,
estimations are made regarding the present value of future cash flows using asset-specific discount
rates and the recoverable amount of the asset is determined. Value-in-use calculations performed
in assessing recoverable amounts incorporate a number of key estimates.
Deferred Tax
ii)
The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient
and suitable taxable profits will be available in the future, against which the reversal of temporary
differences can be deducted. Recognition, therefore, involves judgement regarding the future
financial performance of the particular legal entity or tax group in which the deferred tax asset has
been recognised.
Share-Based Payment Transactions
iii)
The Group measures the cost of equity-settled transactions with employees by reference to the fair
value of the equity instruments at the date at which they are granted. The fair value is determined
from market value.
43
Australian Vanadium Limited 2020 Annual Report
2. REVENUE AND EXPENSES
Other Income
2(a)
Interest received
Gain/(loss) on asset sale
Lease income
R&D concession
Administrative services and other income
Finance Costs
2(b)
Interest on leases
Other Expenses
2(c)
Salaries and wages
Superannuation
Stock exchange and registry fees
Rent and office facility expenses
Legal fees
Audit and accounting fees
Travel and accommodation
Other corporate and administrative expenses
CONSOLIDATED
2020
$
54,214
-
732
-
132,110
187,056
36,142
36,142
918,967
126,198
83,238
29,415
36,811
234,937
145,831
769,881
2019
$
108,392
4,545
6,343
113,660
-
232,940
-
-
431,977
130,257
111,512
85,408
23,845
100,275
192,113
670,378
2,345,278
1,745,765
44
Australian Vanadium Limited 2020 Annual Report
INCOME TAX
Income Tax Expense
3.
3(a)
Major components of income tax expense for the years ended 30 June 2020 and 30 June 2019 are
as follows:
Income statement
Current income
Current income tax charge (benefit)
Current income tax not recognised
Research and development concession
CONSOLIDATED
2020
$
2019
$
2,029,778
(2,029,778)
-
2,681,786
(2,681,786)
-
Deferred income tax
Relating to origination and reversal of temporary differences
Deferred tax benefit not recognised
935,311
(935,311)
14,310,355
(14,310,355)
Income tax expense (benefit) reported in income statement
-
-
A reconciliation of income tax expense (benefit) applicable to accounting profit before income tax at
the statutory income tax rate to income tax expense at the company’s effective income tax rate for
the years ended 30 June 2020 and 30 June 2019 is as follows:
Accounting profit (loss) before tax from continuing operations
Accounting profit (loss) before income tax
At the statutory income rate of 30% (2019: 30%)
Add:
Non-deductible expenses
Temporary differences and losses not recognised
Less:
Non-assessable income
R&D tax offset
At effective income tax rate of 0% (2019: 0%)
Income tax expense reported in income statement
Total income tax expense
CONSOLIDATED
2020
$
(2,713,630)
(2,713,630)
(814,089)
2019
$
(5,216,688)
(5,216,688)
(1,565,006)
20,727
811,362
393,798
1,205,306
(18,000)
-
-
-
-
-
(34,098)
-
-
-
45
Australian Vanadium Limited 2020 Annual Report
3(b) Deferred Tax Assets
Deferred tax assets/(liabilities) have not been recognised in respect of the following items:
Liabilities:
Receivables
Property, plant and equipment
Prepaid expenditure
Capitalised exploration expenditure
Assets:
Investments
Right of Use Assets
Trade and other payables
Provisions
Business related costs
Tax losses
Net Deferred Tax
CONSOLIDATED
2020
$
(1,618)
(5,680)
(22,490)
(7,406,475)
2019
$
(419)
-
-
(6,259,922)
(7,436,263)
(6,260,341)
261,000
7,375
13,441
61,038
245,584
25,053,349
25,641,787
18,205,524
240,750
-
13,616
20,930
114,885
23,140,375
23,530,556
17,270,215
The tax losses do not expire under current legislation. Deferred tax assets have not been recognised
in respect of these items because it is not probable that future taxable profit will be available against
which the Company can utilise the benefits.
4. AUDITORS’ REMUNERATION
Amounts paid or due and payable to Armada Audit & Assurance Pty Ltd for:
CONSOLIDATED
2020
$
27,750
27,750
2019
$
15,300
15,300
Audit and review
46
Australian Vanadium Limited 2020 Annual Report
5. EARNINGS PER SHARE
Basic earnings per share
The earnings and weighted average number of ordinary
shares used in the calculated of basic earnings per share
is as follows:
Net loss for the year
Weighted average number of ordinary shares used in the
calculation of basic EPS
6. CASH AND CASH EQUIVALENTS
Cash at bank
Short-term deposits
CONSOLIDATED
2020
$
Cents
(0.11)
2019
$
Cents
(0.29)
(2,713,630)
2,413,741,848
(5,216,688)
1,807,558,351
CONSOLIDATED
2020
$
3,430,304
2,111,399
5,541,703
2019
$
3,503,605
913,768
4,417,373
Cash at bank earns interest at floating rates based on daily deposit rates. Cash and cash
equivalents for the purpose of the statement of cash flows are comprised of cash at bank and
short-term deposits.
Reconciliation of Loss for the Year to Net Cash Flows from Operating Activities
6(a)
Loss for the year
Non-cash flows in profit/loss
Interest Expense on Leases
Depreciation and amortisation
Impairment of exploration and evaluation
Gain/loss on sale of asset
Share based payments
Changes in operating assets and liabilities
(Increase)/decrease in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions
(2,713,630)
(5,216,688)
36,142
120,430
-
-
189,080
149,482
(926,800)
133,695
-
62,661
3,296,846
(4,545)
206,466
(197,658)
169,924
38,493
Net cash flows from operating activities
(3,011,601)
(1,644,501)
6(b) Non-Cash Financing and Investing Activities
In the year the following non-cash financing and investing activities occurred:
Shares issued as consideration for share issue costs
Fair value of performance rights converted to shares
Fair value of performance rights issued to employees
CONSOLIDATED
2020
$
189,464
(25,175)
42,648
206,937
2019
$
-
-
70,491
70,491
47
Australian Vanadium Limited 2020 Annual Report
7. TRADE AND OTHER RECEIVABLES
Current
GST receivable
Other receivables
Trade debtors
Less: provision for doubtful debts
CONSOLIDATED
2020
$
37,312
136,566
67,199
(15,881)
225,196
2019
$
237,493
33,499
119,567
(15,881)
374,678
Other receivables are non-interest bearing and generally repayable within 12 months. Due to the
short-term nature of these receivables, their carrying value is assumed to approximate their fair value.
8. PLANT & EQUIPMENT
Plant and equipment
At cost
Accumulated depreciation
Motor vehicles
At cost
Accumulated depreciation
Total
At cost
Accumulated depreciation
CONSOLIDATED
2020
$
2019
$
390,020
(177,290)
386,550
(141,275)
212,730
245,275
60,600
(34,467)
26,133
450,620
(211,757)
60,600
(27,398)
33,202
447,150
(168,673)
238,863
278,477
8(a) Movements in Carrying Amounts
Movements in the carrying amounts for each class of plant and equipment during the financial year:
Balance at 1 July 2018
Additions
Depreciation expense
Balance at 30 June 2019
Additions
Depreciation expense
Balance at 30 June 2020
48
Plant &
Equipment
267,332
29,250
(51,307)
245,275
3,470
(36,015)
212,730
Motor
Vehicles
10,956
33,600
(11,354)
33,202
-
(7,069)
26,133
Total
278,288
62,850
(62,661)
278,477
3,470
(43,084)
238,863
Australian Vanadium Limited 2020 Annual Report
9. EXPLORATION AND EVALUATION EXPENDITURE
Expenditure brought forward1
Less expenditure recouped on sale of asset
Add expenditure incurred on purchase of asset
Receipts for exploration and mining activities3
Expenditure incurred during the year
Amounts expensed during the period
Impairment during the period2
CONSOLIDATED
2020
$
21,750,919
-
-
(2,658,763)
4,401,842
(14,976)
-
2019
$
17,940,501
-
-
-
7,107,264
-
(3,296,846)
Expenditure carried forward
23,479,022
21,750,919
1 The expenditure above relates principally to the exploration and evaluation phase. The ultimate recoupment
of this expenditure is dependent upon the successful development and commercial exploration, or
alternatively, sale of the respective areas of interest, at amounts at least equal to the carrying value.
2 The Directors made the decision to fully impair the carrying value of AVLs investment in the Blesberg
Project in the 2019 Financial Year. The directors considered that there is limited potential for the carrying
amount to be fully recoverable as the resource potential of this area of interest is very limited.
3 Receipts include $2,083,827 in Research and Development Tax Incentive received for the 2020 financial
year and 574,936 in government grants related to exploration and evaluation expenditure.
10. FINANCIAL ASSETS
Purchase price of investment in Bryah Resources
Fair value movement
Investments at fair value
CONSOLIDATED
2020
$
1,410,000
(870,000)
540,000
2019
$
1,260,000
(802,500)
457,500
Name
Principal
Activities
Country of
Incorporation
Shares
Ownership
Interest
Bryah
Resources
Limited 1
Mineral
Exploration
Australia
Listed:
Ordinary
2020
%
9.27
2019
%
11.76
Carrying Amount
of Investment
2020
$
540,000
2019
$
457,500
1
Investments in Bryah Resources Limited has been classified as an equity instrument at FVTOCI in
accordance with AASB 9 Financial Instruments with the movements in the investment presented in Other
Comprehensive Income. The fair value movement of $67,500 has been recognised in Equity in accordance
with AASB 9 Financial Instruments.
49
Australian Vanadium Limited 2020 Annual Report
11. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
11(a) Right-of-Use Assets
Current
Property leases
Less: accumulated amortisation
11(b) Lease Liabilities
CONSOLIDATED
2020
$
228,689
(77,346)
151,343
2019
$
-
-
-
Lease payments due on 1 July 2019 for leases previously treated as operating leases under AASB
17 is as follows:
Lease liability on 1 July 2019 being the present value of the
remaining lease payments using the lessee’s incremental
borrowing rate at the date of initial application
Less: lease payments
Add: interest on lease liability
CONSOLIDATED
2020
$
2019
$
287,058
(147,273)
36,142
175,927
-
-
-
-
Lease liabilities are presented in the Consolidated Statement of Financial Position as follows:
Current
Non-Current
12. TRADE AND OTHER PAYABLES
Current
Trade payables and accruals
Payroll tax
Fringe benefits tax
CONSOLIDATED
2020
$
106,098
69,829
175,927
2019
$
-
-
-
CONSOLIDATED
2020
$
441,459
5,676
14,044
461,179
2019
$
1,137,811
117,618
31,208
1,286,637
Trade creditors are non-interest bearing and are normally settled on 30-day terms. Due to the short-
term nature of trade payables and accruals, their carrying value is assumed to approximate their fair
value.
50
Australian Vanadium Limited 2020 Annual Report
13. PROVISIONS
Current
Employee entitlements
14. ISSUED CAPITAL AND RESERVES
14(a)
Issued and Paid Up Capital
Ordinary shares – fully paid
Ordinary shares – partly paid
Share issue costs written off against issued capital
14(b) Movement in Ordinary Shares on Issue
CONSOLIDATED
2020
$
187,580
187,580
2019
$
53,885
53,885
CONSOLIDATED
2020
$
91,422,486
8,000
(1,973,381)
2019
$
84,641,896
8,000
(1,238,369)
89,457,105
83,411,527
(i) Ordinary shares – fully paid
Balance at beginning of year
Issue of ordinary shares
on conversion of listed options
Issue of ordinary shares via
placements
Issue of ordinary shares
as consideration for acquisition of
exploration licences
Issue of ordinary shares
as consideration for option fee for
land acquisition
Issue of ordinary shares
as consideration for corporate and
consulting services received from
suppliers
Issue of ordinary shares
on conversion of performance
rights
Balance at end of year
(ii) Ordinary shares – partly paid
($0.0389 unpaid)
Balance at beginning of year
Balance at end of year
2020
Number
2020
$
2019
Number
2019
$
1,973,843,787
-
84,641,896
-
1,609,123,019
359,143,538
77,323,050
7,182,871
573,476,491
6,594,975
5,000,000
50,000
1,231,926
14,007
-
-
-
-
-
-
10,060,770
94,509
5,000,000
105,000
2,709,858
27,099
577,230
30,975
2,566,322,832
91,422,486
1,973,843,787
84,641,896
80,000,000
80,000,000
8,000
8,000
80,000,000
80,000,000
8,000
8,000
Total issued shares
2,646,322,832
91,430,486
2,053,843,787
84,649,896
51
Australian Vanadium Limited 2020 Annual Report
14(c) Terms and Conditions of Issued Capital
Ordinary shares have the right to receive dividends as declared and, in the event of winding up the
Company, to participate in proceeds from the sale of all surplus assets in proportion to the number
of and amounts paid up on shares held.
Fully paid ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting
of the Company. Options and partly paid ordinary shares do not entitle their holder to any voting
rights.
14(d) Share Options
At 30 June 2020, the following options over unissued ordinary shares were outstanding:
No. shares under
option
Class of shares under
option
Exercise price
($)
Expiry date of options
111,449,273
Ordinary
0.02
30 September 2020
14(e) Performance Rights
At 30 June 2020, the following performance rights were outstanding:
Opening performance rights
Performance rights expired 30 June 20191
Performance rights expired 19 December 2019
Performance rights expired 31 December 20191
Performance rights expiring 31 December 20202
CONSOLIDATED
2020
No.
102,709,868
(192,308)
(40,000,000)
(2,517,550)
4,573,125
2019
No.
100,769,548
(577,230)
-
2,517,550
-
Closing performance rights
64,573,135
102,709,868
1 Converted to ordinary shares during the period.
2 Vesting condition in respect of rights granted to staff require continuous employment from grant date of
rights to 6 July 2020.
14(f) Fair Value Reserve
The fair value reserve records movements in financial assets classified as fair value through Other
Comprehensive Income in accordance with AASB 9 Financial Instruments.
CONSOLIDATED
2020
$
(802,500)
(67,500)
(870,000)
2019
$
(562,500)
(240,000)
(802,500)
Balance at the beginning of the year
Change in fair value of investments
Balance at end of the year
52
Australian Vanadium Limited 2020 Annual Report
14(g) Share-Based Payment Reserve
The share-based payments reserve is used to recognise the fair value of options or performance
rights issued.
Balance at the beginning of the year
Fair value of options recognised in share issue costs1
Fair value of performance rights converted to shares
Fair value of performance rights issued to employees2
Balance at the end of the year
CONSOLIDATED
2020
$
70,491
189,464
(25,175)
42,648
277,428
2019
$
-
-
-
70,491
70,491
The share-based payment reserve records the cumulative value of services received for the issue
of share options and/or performance rights. When the securities are exercised the amount in the
share-based payment reserve is transferred to share capital.
1The Company issued 111,449,273 options during the year as consideration for underwriting
services provided. The options issued have been valued using a Black-Scholes model with the
following parameters:
Option exercise price: $0.02
Underlying share price at issue: $0.012
Volatility: 91%
Effective interest rate: 0.72%
Expiry date: 30 September 2020
Fair value of option $.0017
The total fair value of the options issued to the brokers on grant date being $189,464.
2 The Company issued 4,573,125 performance rights (exercise price: $nil; expiry date: 31 December
2020) during the year which have been valued using the share price on grant date being 1 cent. The
performance rights vest on completion of continuous employment with the Company, being 6 July
2020. The total amount recognised in equity over the vesting period to 30 June 2020 being $42,648.
15. COMMITMENTS
The Group has certain obligations to perform minimum exploration work and to expend minimum
amounts of money on such work on mining tenements. These obligations may be varied from time
to time subject to approval and are expected to be fulfilled in the normal course of the operations of
the Group. These commitments have not been provided for in the accounts.
Exploration Commitments
Minimum expenditure commitment on the tenements is:
Payable no later than 1 year
Payable between 1 year and 5 years
CONSOLIDATED
2020
$
2019
$
701,760
3,217,040
3,918,800
329,460
1,687,840
2,017,300
53
Australian Vanadium Limited 2020 Annual Report
16. CONTINGENT LIABILITIES
It is possible that native title, as defined in the Native Title Act 1993, might exist over land in which
the Group has an interest. It is impossible at this stage to quantify the impact (if any) that the
existence of native title may have on the operations of the Group. However, at the date of this report,
the Directors are aware that applications for native title claims have been accepted by the Native
Title Tribunal over Group tenements.
17. SEGMENT INFORMATION
AASB 8 requires a ‘management approach’ under which segment information is presented on the
same basis as that used for internal reporting purposes. The Board as a whole will regularly review
the identified segments in order to allocate resources to the segment and to assess its performance.
The Group has identified two operating segments for 2020 being:
Exploration
Consisting of The Australian Vanadium Project and other exploration projects
Energy storage
VSUN Energy Pty Limited’s vanadium redox flow battery marketing and sales activities.
Segment revenues, assets and liabilities are those that are directly attributable to a segment and the
relevant portion that can be allocated to the segment on a reasonable basis. Segment assets include
all assets used by a segment and primarily consist of plant and equipment and project tenements.
Segment liabilities consist primarily of trade and other creditors and employee entitlements.
The following table presents revenue, expenditure and asset information regarding operating
segments for the year ended 30 June 2020.
Sales to external customers
Other revenue
Total segment revenue
Exploration
Consolidated
$
-
-
-
Energy
Storage
$
732
10,000
10,732
Unallocated
$
-
176,324
176,324
Total
$
732
186,324
187,056
Total segment results
(796,025)
(192,169)
(1,725,436)
(2,713,630)
Total segment assets
23,479,022
127,488
6,569,617
30,176,127
Total segment liabilities
Depreciation and amortisation
Finance costs
Interest income
808,292
-
-
-
4,962
(13,647)
-
-
11,432
(106,783)
(36,142)
54,214
824,686
(120,430)
(36,142)
54,214
54
Australian Vanadium Limited 2020 Annual Report
18. RELATED PARTY TRANSACTIONS
18(a) Subsidiaries
The consolidated financial statements include the financial statements of Australian Vanadium
Limited and the subsidiaries listed in the following table.
Country of
Incorporation
Australian Uranium Pty Ltd
Cabe Resources Ltd
VSUN Energy Pty Ltd 1
South African Lithium Pty Ltd
Australia
Australia
Australia
South Africa
1 Formerly Australian Vanadium Resources Pty Ltd.
Equity
2020
%
100
100
100
100
Holding
2019
%
100
100
100
100
Principal Activities
Mineral exploration
Mineral exploration
Energy storage
Mineral exploration
18(b) Director-Related Entities
The Group engaged the following entities during the financial year for the following services on
normal commercial terms:
Streamline Capital Pty Ltd (a company wholly owned by Mr Leslie Ingraham) - expenses
totalling $85,431 paid for rental of storage facility for the year ended 30 June 2020 (amount
owing at 30 June 2020: $nil).
55
Australian Vanadium Limited 2020 Annual Report
19. PARENT ENTITY DISCLOSURES
19(a) Summary Financial Information
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Total Liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
PARENT
2020
$
2019
$
5,776,564
24,283,280
4,566,572
22,481,343
30,059,844
27,047,915
831,429
831,429
1,109,490
1,109,490
89,457,062
(592,572)
(59,636,075)
83,411,483
(732,009)
(56,741,049)
29,228,415
25,938,425
(2,895,026)
(67,500)
(5,471,775)
(240,000)
(2,962,526)
(5,711,775)
19(b) Guarantees
Australian Vanadium Limited has not entered into any guarantees.
19(c) Other Commitments and Contingencies
Australian Vanadium Limited (parent entity) has exploration commitments and operating lease
commitments as described in Note 15. It has no contingent liabilities other than those discussed in
Note 16.
56
Australian Vanadium Limited 2020 Annual Report
20. KEY MANAGEMENT PERSONNEL DISCLOSURES
20(a) Compensation of Key Management Personnel
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.
Director and executive disclosures
Compensation of key management personnel
Short-term personnel benefits
Post-employment benefits
Share based payments
CONSOLIDATED
2020
$
2019
$
886,877
76,535
42,648
1,006,060
820,334
71,282
34,146
925,762
20(b) Loans and Other Transactions with Key Management Personnel
There were no loans to key management personnel or their related entities during the financial year.
Other transactions with key management personnel are described in Note 18(b).
21. SHARE-BASED PAYMENTS
21(a) Share-Based Payments Expensed
A total of $189,080 was expensed as share-based payments for the period ended 30 June 2020
(2019: $206,466). Refer to Note 14(e) for disclosure of the vesting conditions and Note 14(g) for
disclosure on the method of valuing the rights.
Share-Based Payments
Conversion of performance rights to shares during the period
Shares issued for option fee on land acquisition
Shares issued for Exploration & Evaluation assets
Shares issued in consideration for services rendered
Performance rights issued fully vested during the period2
Share based payments expensed recognised in profit or loss
CONSOLIDATED
2020
$
1,923
17,509
50,000
77,000
42,648
189,080
2019
$
30,975
-
105,000
70,491
206,466
21(b) Summary of Options Granted as Share-Based Payments
The Company issued 111,449,273 options (a total valuation of $189,464) during the year as
consideration for underwriting services provided. The cost was recognised in equity. The options
issued have been valued using a Black-Scholes model with the following parameters:
Option exercise price: $0.02
Underlying share price at issue: $0.012
Volatility: 91%
Effective interest rate: 0.72%
Expiry date: 30 September 2020
57
Australian Vanadium Limited 2020 Annual Report
21(c) Performance Rights
No Performance Rights were granted to Directors during the year ended 30 June 2020 (2019: nil).
The Company issued 4,573,125 performance rights to an Executive (exercise price: $nil; expiry date:
31 December 2020) during the year which have been valued using the share price at issue being 1
cent per share. The performance rights vest on completion of continuous employment with the
Company, being 6 July 2020. A total of $42,648 was recognised to 30 June 2020.
22. FINANCIAL RISK MANAGEMENT
The Consolidated Entity’s principal financial instruments comprise receivables, payables, cash and
short-term deposits. The Consolidated Entity manages its exposure to key financial risks in
accordance with the Consolidated Entity’s financial risk management policy. The objective of the
policy is to support the delivery of the Consolidated Entity’s financial targets while protecting future
financial security.
The main risks arising from the Consolidated Entity’s financial instruments are interest rate risk,
credit risk and liquidity risk. The Consolidated Entity does not speculate in the trading of derivative
instruments. The Consolidated Entity uses different methods to measure and manage different types
of risks to which it is exposed. These include monitoring levels of exposure to interest rates and
assessments of market forecasts for interest rates. Ageing analysis of and monitoring of receivables
are undertaken to manage credit risk, liquidity risk is monitored through the development of future
rolling cash flow forecasts.
The Board reviews and agrees policies for managing each of these risks as summarised below.
Primary responsibility for identification and control of financial risks rests with the Board. The Board
reviews and agrees policies for managing each of the risks identified below, including for interest
rate risk, credit allowances and cash flow forecast projections.
Details of the significant accounting policies and methods adopted, including the criteria for
recognition, the basis of measurement and the basis on which income and expenses are recognised,
in respect of each class of financial asset and financial liability are disclosed in Note 1 to the financial
statements.
Interest Rate Risk
22(a)
The Consolidated Entity’s exposure to risks of changes in market interest rates relates primarily to
the Consolidated Entity’s cash balances. The Consolidated Entity constantly analyses its interest
rate exposure. Within this analysis consideration is given to potential renewals of existing positions,
alternative financing positions and the mix of fixed and variable interest rates. As the Consolidated
Entity has no interest-bearing borrowings its exposure to interest rate movements is limited to the
amount of interest income it can potentially earn on surplus cash deposits. The following sensitivity
analysis is based on the interest rate risk exposures in existence at the reporting date.
58
Australian Vanadium Limited 2020 Annual Report
At the reporting date, the Consolidated Entity had the following financial assets exposed to variable
interest rates that are not designated in cash flow hedges:
Financial assets
Cash and cash equivalents (interest bearing accounts)
CONSOLIDATED
2020
$
5,541,703
5,541,703
2019
$
4,417,373
4,417,373
The following sensitivity analysis is based on the interest rate risk exposures in existence at the
reporting date.
At the reporting date, if interest rates had moved as illustrated in the table below, with all other
variables held constant, post-tax profit and equity relating to financial assets of the Consolidated
Entity would have been affected as follows:
Estimates of reasonably possible movements:
Post tax profit – higher/(lower)
+0.5%
-0.5%
Equity – higher/(lower)
+0.5%
-0.5%
CONSOLIDATED
2020
$
2019
$
25,719
(25,719)
25,719
(25,719)
24,739
(24,739)
24,739
(24,739)
22(b) Liquidity Risk
The Consolidated Entity has no significant exposure to liquidity risk as there is effectively no debt.
The Consolidated Entity manages liquidity risk by monitoring immediate and forecast cash
requirements and ensuring adequate cash reserves are maintained.
22(c) Credit Risk
Credit risk arises from the financial assets of the Consolidated Entity, which comprise deposits with
banks and trade and other receivables. The Consolidated Entity’s exposure to credit risk arises from
potential default of the counter party, with the maximum exposure equal to the carrying amount of
these instruments. The carrying amounts of financial assets included in the statement of financial
position represents the Consolidated Entity’s maximum exposure to credit risk in relation to those
assets.
The Consolidated Entity does not hold any credit derivatives to offset its credit exposure. The
Consolidated Entity trades only with recognised, creditworthy third parties and as such collateral is
not requested nor is it the Consolidated Entity’s policy to securitise its trade and other receivables.
Receivable balances are monitored on an ongoing basis with the result that the Consolidated Entity
does not have a significant exposure to bad debts.
There are no significant concentrations of credit risk within the Consolidated Entity.
59
Australian Vanadium Limited 2020 Annual Report
22(d) Capital Management Risk
Management controls the capital of the Consolidated Entity in order to maximise the return to
shareholders and ensure that the Group can fund its operations and continue as a going concern.
Management effectively manages the Group’s capital by assessing the Consolidated Entity’s
financial risks and adjusting its capital structure in response to changes in these risks and in the
market. These responses include the management of expenditure and debt levels and share and
option issues.
The Consolidated Entity has no external loan debt facilities other than trade payables. There have
been no changes in the strategy adopted by management to control capital of the Consolidated
Entity since the prior year.
22(e) Commodity Price and Foreign Currency Risk
The Consolidated Entity’s exposure to price and currency risk is minimal given the Consolidated
Entity is still in the exploration phase.
22(f) Fair Value
The methods of estimating fair value are outlined in the relevant notes to the financial statements.
All financial assets and liabilities recognised in the statement of financial position, whether they are
carried at cost or fair value, are recognised at amounts that represent a reasonable approximation
of fair values unless otherwise stated in the applicable notes.
23. EVENTS SUBSEQUENT TO THE REPORTING DATE
On 10 July 2020 the Company cancelled 60,000,000 performance rights on issue. The performance
rights were issued on 12 July 2017 with vesting conditions relative to the determination of a JORC
resource on the Company’s Blesberg Lithium-Tantalum Project.
On 28 August 2020 the Company was granted Mining Lease M51/878 by the Western Australian
Government Department of Mines, Industry Regulation and Safety for the Australian Vanadium
Project. The initial term of the mining lease is 21 years.
On 25 September 2020, AVL announced that it had received firm commitments for the placement
of 357,142,857 ordinary fully paid shares at a price of $0.014 per share to raise $5 million before
costs. Subject to shareholder approval, for every two shares issued under the Placement, one free
attaching option will be issued. The options will have an exercise price of $0.025 and will expire
two years from the date of issue.
No other matters or circumstances have arisen since the end of the financial year which significantly
affected, or may significantly affect, the operations of the Company, the results of those operations,
or the state of affairs of the Company in subsequent financial years, other than as outlined in the
Company’s review of operations which is contained in this Annual Report.
60
Australian Vanadium Limited 2020 Annual Report
The Directors of the Company declare that:
1.
the financial statements and notes set out on pages 27 to 60 are in accordance with the
Corporations Act 2001 including:
a.
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
giving a true and fair view of the Consolidated Entity’s financial position as at 30 June
2020 and of the performance for the year ended on that date, and
b.
2.
in the Directors’ opinion, there are reasonable grounds to believe that the Company will be
able to pay its debts as and when they become due and payable.
The Directors have been given the declarations by the Managing Director and chief financial
officer pursuant to Section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors.
Brenton Lewis, Chairman
29 September 2020
61
AUDITOR’S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF
AUSTRALIAN VANADIUM LIMITED
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2020 there have
been:
i)
ii)
No contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the
audit.
ARMADA AUDIT & ASSURANCE PTY LTD
Nigel Dias
Director
Perth, 29 September 2020
Independent Auditor’s Report
To the Members of Australian Vanadium Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Australian Vanadium Limited (‘the Company’) and its subsidiaries
(‘the “Group’) which comprises the consolidated statement of financial position as at 30 June 2020,
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of Australian Vanadium Limited is in accordance with the
Corporation Act 2001, Including
Giving a true and fair view of the Group’s financial position as at 30 June 2020, and of its financial
performance and cash flows for the year then ended and;
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the Accounting Professional and Ethical Standards Board’s APES 110
Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has given to
directors of the Company, would be in the same terms if given as at the time of this auditor’s report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
1
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separated
opinion on these matters.
Key Audit Matter
How our audit addressed the key audit matter
Future Funding - Refer to Note 1 (b)
Our Procedures, amongst others, included:
The Group’s primary activity is exploration for
and evaluation of mineral resources which is
primarily funded via equity raisings as the Group
does not yet have any revenue generating
activities.
As disclosed in Note 1 (b) for the year ended 30
June 2020 the Group incurred a net loss of
$2,713,630 and had a working capital surplus of
$5,012,042 at 30 June 2020. The Group has a
listed investment of $540,000 that can be sold to
generate further funds.
We obtained management’s cash flow forecast.
We evaluated the reliability and completeness
of management’s forecasts by comparing them
to the group’s future plans and operating
conditions.
We checked and observed that the Group has
sufficient cash to meet its minimum exploration
expenditure commitments;
We observed and confirmed that management
has the ability to reduce its discretionary costs
and exploration costs to conserve the Group’s
cash reserves;
Furthermore, on 25 September 2020, the Group
announced that it had received firm commitments
for the placement of 357,142,857 ordinary fully
paid shares at a price of $0.014 per share to raise
$5 million before costs.
impact on
The adequacy of funding and liquidity as well as
the relevant
the going concern
assessment is a key audit matter due to the
significance of management estimates and
judgement to this estimate.
We performed a sensitivity analysis on
management’s cash flow forecast by varying
key assumptions within the forecast;
We obtained ASX Announcements and other
information subsequent to year end to assess
the impact of any additional facts or information
on management’s assumptions; and
We verified the firm commitments of $5 million
received on 25
lead
dollars
(before costs)
September 2020 directly with
manager/broker of the placement.
the
2
Exploration and Evaluation Assets - Note 9
At 30 June 2020, the Group’s carrying value of
Exploration and Evaluation Assets was
$23,479,022.
The exploration and evaluation assets are
required to be assessed for impairment when
facts and circumstances suggest
the
carrying amount may exceed their recoverable
amounts. Any
then
measured
in accordance with AASB 136
Impairment of Assets.
losses are
impairment
that
This area is a key audit matter as significant
judgement is required in determining whether:
The
and
capitalised Exploration
Evaluation assets meet the recognition
criteria in terms of AASB 6 Exploration
for
of Mineral
Resources; and
and Evaluation
Facts and circumstances suggest that
the carrying amount of an exploration
and evaluation asset may exceed its
recoverable amount in accordance with
AASB 6.
Our Procedures, amongst others, included:
We checked that the period for the rights to
explore the areas of interest have not expired or
will not expire in the near future without an
expectation of renewal;
We obtained evidence of the future intention for
the relevant areas of interest, including checking
future budgeted expenditure and related work
programmes;
We checked the ability of the Group to meet its
minimum exploration expenditure commitments;
We checked whether any data exists that
indicates the exploration for and evaluation of
mineral resources in the specific area of interest
have not led to the discovery of commercially
viable quantities of mineral resources and the
Group has decided to discontinue such activities
in the specific area; and
We also assessed the appropriateness of the
accounting treatment and disclosure in terms of
AASB 6.
Information Other than the Financial Report and Auditor’s Report Thereon
The Directors are responsible for the other information. The other information comprises the information
included in the annual report for the year ended 30 June 2020 but does not include the financial report and
our auditor’s report thereon. Our opinion on the financial report does not cover the other information and
accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of
the financial report, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial report or our knowledge obtained in the
audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
3
Responsibilities of the Directors for the Financial Report
The Directors of the Group are responsible for the preparation of the financial report that gives a true and
fair view in accordance with the Australian Accounting Standards and the Corporation Act 2001 and for
such internal control as the directors determines is necessary to enable the preparation of the financial
report that is free from material misstatement, whether due to fraud or error. In preparing the financial
report, management is responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so. The Board are also responsible for overseeing the financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Australian Auditing Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This
description forms part of auditor’s report.
4
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2020. In our opinion, the Remuneration Report of Australian Vanadium Limited for the year ended 30 June
2020 complies with section 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards
ARMADA AUDIT & ASSURANCE PTY LTD
Nigel Dias
Director
Perth, Dated 29 September 2020
5
Australian Vanadium Limited 2020 Annual Report
1.
THE AUSTRALIAN VANADIUM PROJECT
- MINERAL
RESOURCE STATEMENT
A summary of the Mineral Resources at The Australian Vanadium Project as at 30 June 2020 is
shown in Table 1 below.
The updated Mineral Resource estimation was carried out Trepanier Pty Ltd and Geologica Pty Ltd,
resulting in the estimation of Measured, Indicated, and Inferred Mineral Resources. All mineralised
domains, are reported above 0.4% V2O5 for the low-grade ore zones and above 0.7% V2O5 within
the high-grade zones.
The Mineral Resource estimate consists of:
A discrete massive high-grade zone of 87.9 million tonnes at 1.06% V2O5 containing 939,320
208.2 million tonnes at 0.74% V2O5 containing 1,557,110 tonnes of V2O5;
tonnes of V2O5;
Discrete low-grade zones of 104.8 million tonnes at 0.49% V2O5 containing 617,790 tonnes of
V2O5, and
Combined Measured and Indicated Mineral Resources of 79.7 Million tonnes at 0.77% V2O5 in
low and high-grade zones containing 616,260 tonnes of V2O5.
Table 1 The Australian Vanadium Project Mineral Resources Statement (as at 30 June 2020)
Zone
HG
LG 2-5
Classification
MT
Measured
Indicated
Inferred
Sub-total
Measured
Indicated
Inferred
10.1
25.1
52.7
87.9
-
44.5
60.3
V2O5
%
1.14
1.10
1.04
Fe
%
43.9
45.4
44.6
TiO2
%
13.0
12.5
11.9
SiO2
%
9.2
8.5
9.4
Al2O3
%
7.5
6.5
6.9
1.06
44.7
12.2
9.2
6.8
-
0.51
0.48
-
25.0
25.2
-
6.8
6.5
-
27.4
28.5
-
17.0
15.3
Sub-total
104.8
0.49
25.1
6.6
28.0
16.1
Transported Measured
Indicated
6-8
Inferred
Total
Sub-total
Measured
Indicated
Inferred
-
-
15.6
15.6
10.1
69.6
128.5
-
-
0.65
-
-
28.4
-
-
7.7
-
-
24.9
-
-
15.4
0.65
28.4
7.7
24.9
15.4
1.14
0.72
0.73
43.9
32.4
33.5
13.0
8.9
8.8
9.2
20.6
20.2
7.5
13.2
11.9
Sub-total
208.2
0.74
33.6
9.0
19.8
12.1
LOI
%
3.7
2.9
3.3
3.2
-
7.9
6.7
7.2
-
-
7.9
7.9
3.7
6.1
5.4
5.6
68
Australian Vanadium Limited 2020 Annual Report
2. MATERIAL CHANGES AND RESOURCE STATEMENT
COMPARISON
A comparison between the 2019 and 2020 Mineral Resource Estimates for The Australian Vanadium
Project is shown in Table 2 below.
Table 2 The Australian Vanadium Project Comparison Between 2019 and 2020 Mineral Resource Estimates
LOI
%
JORC Resource
Class
Tonnes
Million
Al2O3
%
V2O5
%
SiO2
%
TiO2
%
Fe
%
Estimate as at
30 June 2020
Measured
Indicated
Inferred
Total
Estimate as at
30 June 2019
Measured
Indicated
Inferred
Total
10.1
69.6
128.5
208.2
10.2
40.7
132.7
183.6
1.14
0.72
0.73
43.9
32.4
33.5
13.0
8.9
8.8
0.74
33.6
9.0
1.11
0.66
0.77
42.7
30.3
34.8
12.6
8.3
9.2
9.2
20.6
20.2
19.8
10.2
22.5
18.5
7.5
13.2
11.9
12.1
8.0
14.8
11.5
0.76
34.3
9.2
18.9
12.1
3.7
6.1
5.4
5.6
3.9
7.1
5.1
5.5
The updated estimation represented a 9.5% increase in the overall Resource, a 1% decrease in the
Measured Resource, a 71% increase in Inferred Resource and a 115% increase in the Indicated
Resource categories for the Project compared to the 2019 estimation.
The revised estimate was produced following Reverse Circulation (RC) drilling from late 2018 in fault
block 6; RC pre-collar/Diamond tail drilling from January - April 2019 in fault blocks 17 and 20; 13
RC holes completed in October 2019; and 30 RC holes completed in December 2019.
The Group is not aware of any new information or data that materially affects the information as
previously released and all material assumptions and technical parameters underpinning the
estimates continue to apply and have not materially changed.
3. GOVERNANCE
ARRANGEMENTS
AND
INTERNAL
CONTROLS
The Group has appropriate systems in place and suitably qualified and competent geological
consultants to complete any resource estimation or review to the required standards as shown in the
2012 JORC Code Guidelines. The Quality Assurance, Sampling Systems, Assay Procedures, Data
Recording, Interpretation Standards and Resource Estimation Methods and other parameters as set
out in Table 1 of the JORC Code 2012 Guidelines are closely followed. The mineral resources
reported have been generated by independent external consultants where appropriate who are
experienced in best practices in modelling and estimation methods. The consultants have also
undertaken reviews of the quality and suitability of the underlying information used to determine the
resource estimate. In addition, management carries out regular reviews and audits of internal
processes and external contractors that have been engaged by the group.
69
Australian Vanadium Limited 2020 Annual Report
The Company policy is that all steps are recorded during the resource drilling program and then the
estimation stage. All results from field logs and assays to database entries and modelling data are
validated, reviewed and checked by independent and qualified geological personnel.
Competent Person Statement – Mineral Resource Estimation
The information in this report relating to The Australian Vanadium Project Mineral Resource estimate
reported is based on and fairly represents information compiled by Mr Lauritz Barnes, (Consultant
with Trepanier Pty Ltd) and Mr Brian Davis (Consultant with Geologica Pty Ltd). Mr Davis is a
shareholder of Australian Vanadium Limited. Mr Barnes and Mr Davis are members of the
Australasian Institute of Mining and Metallurgy and have sufficient experience of relevance to the
styles of mineralisation and types of deposits under consideration, and to the activities undertaken
to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves. Specifically, Mr Barnes is the Competent Person for the estimation and Mr Davis is the
Competent Person for the database, geological model and site visits. Mr Barnes and Mr Davis
consent to the inclusion in this report of the matters based on their information in the form and context
in which they appear.
Competent Person Statement – Exploration Results and Exploration Targets
The information in this report that relates to Exploration Results and Exploration Targets is based on
and fairly represents information and supporting documentation prepared by Mr Brian Davis
(Consultant with Geologica Pty Ltd). Mr Davis is a shareholder of Australian Vanadium Limited. Mr
Davis is a member of the Australasian Institute of Mining and Metallurgy and has sufficient
experience of relevance to the styles of mineralisation and types of deposits under consideration,
and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of
the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves. Specifically, Mr Davis consents to the inclusion in this report
of the matters based on his information in the form and context in which they appear.
Competent Person Statement – Metallurgical Results
The information in this report that relates to Metallurgical Results is based on information compiled
by independent consulting metallurgist Brian McNab (CP. B.Sc Extractive Metal-lurgy), Mr McNab
is a Member of AusIMM. Brian McNab is employed by Wood Mining and Metals. Mr McNab has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which is undertaken, to qualify as a Competent Person as defined
in the JORC 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves. Mr McNab consents to the inclusion in this report of the matters based on the
information made available to him, in the form and context in which it appears.
70
Australian Vanadium Limited 2020 Annual Report
4.
SCHEDULE OF INTERESTS IN MINING TENEMENTS
AS AT 10 SEPTEMBER 2020
Project
Tenement
Area
Equity
E51/843
Australian Vanadium
E51/1534
Australian Vanadium
E51/1685
Australian Vanadium
E51/1694
Australian Vanadium
E51/1695
Australian Vanadium
E51/1899
Australian Vanadium
E51/1943
Australian Vanadium
Australian Vanadium
E51/1944
Australian Vanadium M51/878
P51/3073
Australian Vanadium
P51/3074
Australian Vanadium
P51/3075
Australian Vanadium
Australian Vanadium
P51/3076
Australian Vanadium M51/890
M51/888
Tumblegum South
E70/4924-I
Coates
E70/5588
Coates
E70/5589
Coates
M51/771
Nowthanna Hill
(NC) 940 PR
Blesberg
Total
12 blocks
8 blocks
15 blocks
14 blocks
2 blocks
16 blocks
5 blocks
1 block
3,561.91 ha
175.12 ha
46.37 ha
26.59 ha
123.53 ha
1,811.82 ha
70.9 ha
4 blocks
3 blocks
15 blocks
301.0 ha
887 ha
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%1
100%
100%
100%
100%
Nil 2
Annual Expenditure
Commitment
$70,000
$50,000
$30,000
$30,000
$20,000
$20,000
$15,000
$10,000
$356,200
$7,040
$2,000
$2,000
$4,960
Application
Application
$20,000
Application
Application
$30,100
-
$667,300
1 Mineral Rights for V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore only.
Bryah Resources Limited retains 100% rights all minerals except V/U/Co/Cr/Ti/Li/Ta/Mn & iron ore on The
Australian Vanadium Project and Tumblegum South.
2 AVL has the right to acquire up to 50.03% interest in the holding company that owns 100% interest in
Prospecting Right (NC) 940 PR
71
Australian Vanadium Limited 2020 Annual Report
Additional information required by the ASX Listing Rules not disclosed elsewhere in this Annual
Report is set out below. The information is current as at 10 September 2020.
1. DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Listed Shares,
Fully Paid Ordinary
Range
No of Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
159
172
273
3,320
2,771
6,695
29,323
518,988
2,484,823
159,858,478
2,403,431,220
2,566,322,832
Unlisted Shares,
Partly Paid Ordinary
Range
No of Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001+
Total
-
-
-
-
5
5
-
-
-
-
80,000,000
80,000,000
Unmarketable Parcels
There were 2,017 holders of less than a marketable parcel of ordinary shares.
2. UNQUOTED SECURITIES
Holders of more than 20% of the abovementioned unquoted securities are:
Holder Name
Woolmaton Pty Ltd
Lisen Zhang
Unlisted Shares,
Partly Paid
Ordinary
28,000,000
28,000,000
RESTRICTED SECURITIES
3.
There are no restricted securities or securities subject to voluntary escrow as at 10 September 2020.
72
Australian Vanadium Limited 2020 Annual Report
SUBSTANTIAL SHAREHOLDERS
4.
There were no substantial holders as at 10 September 2020.
5. CORPORATE GOVERNANCE
The Company’s Corporate Governance Statement
australianvanadium.com.au
is
located on
its website at:
6.
TOP 20 SHAREHOLDERS AS AT 30 JUNE 2020
Number of Shares
90,142,889
61,290,308
1
2
3
4
5
6
Name
J P Morgan Nominees Australia Limited
Mr John McDonald & Mr Shaun McDonald
HSBC Custody Nominees (Australia) Limited
Citicorp Nominees Pty Ltd
Pinny Pty Ltd
BNP Paribas Nominees Pty Ltd
Mr Peter James Muir
30,000,001
Mr Leendert Hoeksema & Mrs Aaltje Hoeksema 30,000,000
24,000,000
Mr Neale Parsons
21,000,000
7
8
9
10 Pet FC Pty Ltd
11 Mr Nigel Charles Redvers Duffey
Jalein Pty Ltd
11
12 CS Third Nominees Pty Limited
13 Machlo Nominees Pty Ltd
14 Mr Charles Michael Higgins
15 Mr Robert Glyn Salathiel + Mrs Danielle Louise
Salathiel
16 Mr Brenton James Lewis
17 Ms Anne Maree Endean
18 Mr Dean Andrew Kent
19 Mr Brenton David Witcombe
20 Mr Robert Nesser & Ms Gayle Ellis
Total
Total Remaining Holders Balance
20,000,000
20,000,000
18,203,757
18,197,472
15,054,348
13,966,424
13,778,600
13,200,348
12,000,000
10,643,791
10,400,000
603,356,368
1,962,966,464
% of Shares
3.51
2.39
2.38
1.97
1.42
1.30
1.17
1.17
0.94
0.82
0.78
0.78
0.71
0.71
0.59
0.54
0.54
0.51
0.47
0.41
0.41
23.51
76.49
73