ANNUAL REPORT
2021
TABLE OF CONTENTS
TABLE OF CONTENTS ..................................................................................................................................... 2
CORPORATE INFORMATION ......................................................................................................................... 3
DIRECTORS’ REPORT ..................................................................................................................................... 4
AUDITORS INDEPENDENCE LETTER............................................................................................................. 27
QUALIFYING STATEMENTS .......................................................................................................................... 28
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME ................... 29
CONSOLIDATED STATEMENT OF FINANCIAL POSITION .......................................................................... 30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................................................................ 31
CONSOLIDATED STATEMENT OF CASH FLOWS ........................................................................................ 32
DIRECTORS’ DECLARATION ......................................................................................................................... 71
INDEPENDENT AUDITORS REPORT ............................................................................................................. 72
ASX ADDITIONAL INFORMATION ................................................................................................................ 78
2
CORPORATE INFORMATION
ABN 48 116 296 541
DIRECTORS
Brett Clark
(Executive Chairman & CEO)
Kevin Dundo
(Non-executive Director)
Winnie Lai Hadad
(Non-executive Director)
Roger Harris
(Non-executive Director)
Dr Geoffrey Xue
(Non-executive Director)
COMPANY SECRETARY
Graeme Smith
REGISTERED OFFICE
Suite 6, 100 Mill Point Road
South Perth WA 6151
PRINCIPAL PLACE OF BUSINESS
Suite 6, 100 Mill Point Road
South Perth WA 6151
SOLICITORS
Thomson Geer Lawyers
Level 27, Exchange Tower,
2 The Esplanade, Perth WA 6000
BANKERS
National Australia Bank Limited
Level 14, 100 St George’s Terrace
Perth, WA 6000
SHARE REGISTER
Computershare Investor Services Pty Limited
Level 11, 172 St Georges Terrace
Perth, WA 6000
Telephone: 1300 787 272
AUDITORS
Hall Chadwick WA Audit Pty Ltd (formerly Bentleys
Audit & Corporate (WA) Pty Ltd)
283 Rokeby Road
Subiaco WA 6008
INTERNET ADDRESS
www.avenira.com
EMAIL ADDRESS
frontdesk@avenira.com
STOCK EXCHANGE LISTING
Avenira Limited shares are listed on the:
Australian Securities Exchange (Code: AEV)
3
DIRECTORS’ REPORT
DIRECTORS’ REPORT
Your directors submit their report on the consolidated entity (referred to hereafter as the Group) consisting of Avenira
Limited (Company) and the entities it controlled at the end of, or during, the year ended 30 June 2021.
DIRECTORS
The names and details of the Company’s directors in office during the financial year and until the date of signing this
report are as follows. Where applicable, all current and former directorships held in listed public companies over the last
three years have been detailed below. Directors were in office for this entire period unless otherwise stated.
NAMES, QUALIFICATIONS, EXPERIENCE AND SPECIAL RESPONSIBILITIES
Brett Clark, B. Eng., Dip. Fin. (Executive Chairman and CEO)
Mr. Clark is a senior executive with 30 years’ experience in the mining and energy sectors in funding, operations and
advisory, notably with Hamersley Iron Pty Ltd, CRA Limited, WMC Resources Limited, Iron Ore Company of Canada, Rio
Tinto Limited and subsequently with Ernst and Young, Tethyan Copper Company Pty Ltd, Oakajee Port and Rail, Mitsubishi
Development and Murchison Metals. Mr. Clark has extensive leadership experience in board positions held at both listed
and unlisted companies. His expertise ranges from project development to operations, sales and marketing in gold, iron
ore, copper, nickel, coal, industrial minerals, and upstream oil and gas across Australia, Africa, Asia, Latin America and
North America. His funding experience includes bond raisings, debt restructuring, equity, and mezzanine financing in the
US and Asian capital markets.
Shares Held – Nil
Options Held – 12,000,000 options ex @ $0.02 expiring 30/11/22
12,000,000 options ex @ $0.03 expiring 30/11/22
Other Current Listed Company Directorships
Nil
Former Listed Company Directorships in the last 3 years
Non-Executive Director of Great Lakes Graphite Corp from November 2017 to July 2019
Non-Executive Director of Nelson Resources Limited from July 2016 to January 2019
Managing Director of Ardea Resources from April 2018 to June 2018
Winnie Lai Hadad, B. Com, MSc, BA, CPA, AusIMM (Non-executive Director)
Ms Lai Hadad has expertise in change management, corporate governance and business process improvement and has
been involved in listings on the Australian Securities Exchange. Ms Lai Hadad has been involved with both investments
into China and out-bound investment from China. Her past roles include implementing Coca-Cola bottling strategies into
Greater China and administering the first Chinese direct investment in an iron ore mine in the Pilbara Region of Western
Australia. Ms Lai Hadad is a lawyer admitted to practice in Western Australia, a qualified CPA, holds a BA, BCom and
MSc, and is a graduate of both the Australian Institute of Company Directors and Governance Institute of Australia.
Shares Held –
Nil
Options Held – 6,000,000 options ex @ $0.02 expiring 30/11/22
6,000,000 options ex @ $0.03 expiring 30/11/22
Other Current Listed Company Directorships
Non-Executive Director of Vonex Limited
Former Listed Company Directorships in the last 3 years
Nil
Special Responsibilities
Chair of the Audit Committee; Member of the Remuneration and Nomination Committee
4
DIRECTORS’ REPORT
Kevin Dundo, LLB, B. Com, FCPA (Non-executive Director)
Mr Kevin Dundo is a practicing lawyer, specialising in commercial and corporate law and in particular, mergers and
acquisitions, with experience in the mining services and financial services industries. He is a member of the Law Society
of Western Australia, Law Council of Western Australia, Australian Institute of Company Directors and a Fellow of the
Australian Society of Certified Practicing Accountants.
Shares Held –
6,250,000
Options Held – 6,000,000 options ex @ $0.02 expiring 30/11/22
6,000,000 options ex @ $0.03 expiring 30/11/22
Other Current Listed Company Directorships
Non-executive Chairman of Red 5 Limited
Non-executive Director of Imdex Limited
Former Listed Company Directorships in the last 3 years
Non-executive Director of Cash Converters International Limited from February 2015 to November 2020
Special Responsibilities
Chair of the Remuneration and Nomination Committee; Member of the Audit Committee
Roger Harris, B(App)Sc (Non-executive Director) (appointed 8 July 2021)
Mr Harris has a B App Science and was the founding director / owner of a large service based company with branches in
Western Australia and SE Asia and managed the exit sale that was ultimately acquired by a multi national top 25 ASX
listed company. Mr Harris has continued to operate a family office for 30 years investing in the natural resources sector
and other asset classes and continues in the development and growth of business’ through mergers and acquisitions.
Shares Held –
1,000,000 (Direct)
Options Held – Nil
10,430,928 (Indirect)
Other Current Listed Company Directorships
Nil
Former Listed Company Directorships in the last 3 years
Nil
Special Responsibilities
Member of the Audit Committee
Dr Geoffrey Xunxing Xue, BSc, MSc, PhD, AusIMM (Non-executive Director) (appointed 23 July 2021)
Dr Xue has both a PhD in Economic Geology and a Masters in Economic Geology as well as a Bachelor (Honours) in
Geology. Dr Xue has more than 10 years’ experience in mining and investment banking in Australia and has had significant
experience in gold project development from exploration through resource definition and feasibility study to commercial
production. Dr Xue is currently the Project Manager at Anova Metals Ltd (AWV) and previously a senior executive in KPMG
Corporate Finance.
Shares Held – Nil
Options Held – Nil
Other Current Listed Company Directorships
Nil
Former Listed Company Directorships in the last 3 years
Nil
Special Responsibilities
Member of the Remuneration and Nomination Committee
COMPANY SECRETARY
Graeme Smith, B.Ec, MBA, MComLaw, FCPA, FCG (CS, CGP), FGIA
Mr. Smith is the principal of Wembley Corporate Services which provide corporate secretarial, chief financial officer and
corporate governance services. Mr. Smith has over 30 years’ experience in company secretarial work.
5
DIRECTORS’ REPORT
PRINCIPAL ACTIVITIES
The principal activities of the Company during the course of the financial year, was the development of the Jundee South
project in Western Australia. The Group’s operations are discussed in the Review of Operations section of this report.
CONSOLIDATED RESULTS
Consolidated loss before income tax expense from continuing operations
Income tax benefit
LOSS FOR THE YEAR
YEAR END
30 JUNE 2021
$
YEAR END
30 JUNE 2020
$
(2,105,959)
-
(2,105,995)
(3,395,173)
-
(3,395,173)
DIVIDENDS
No dividends were paid or declared during the financial year. No recommendation for payment of dividends has been made.
REVIEW OF OPERATIONS
A review of the operations of the Group during the financial year and likely developments and expected results is included
in the Operating and Financial Review set out below.
6
DIRECTORS’ REPORT
JUNDEE SOUTH GOLD PROJECT, WESTERN AUSTRALIA (100% OWNED)
The Yandal Greenstone belt is located in the north-eastern part of the Norseman-Wiluna belt of the Archaean Craton in
Western Australia. It is one of few Archaean greenstone belts containing multiple million-ounce deposits, including Jundee,
Bronzewing and Darlot (Figure 1).
The Jundee South Project area is located within 3km of the Jundee Mine and covers more than a 60km strike of highly
prospective greenstone stratigraphy. The project area contains major regional structures interpreted to control gold
mineralisation throughout the Yandal Greenstone Belt and contains a number of historically defined gold occurrences.
Access is via a well-established road system. Accommodation and facilities including flight services are well established in
the district, given the number of operating mines in the area.
Figure 1: Jundee South Project location map
7
DIRECTORS’ REPORT
DRILLING PROGRAM
The drilling program was designed to test eight Priority 1 targets and six Priority 2 targets identified from an assessment
of all available geologic, geochemical and geophysical information obtained on the Jundee South Gold Project.
A total of 259 aircore holes were drilled for 20,147 metres. This comprised 247 holes for 19,134 metres, testing all
accessible Priority 1 and 2 targets. Characteristic geological features of lithologies, structures, and alteration comparable
to nearby gold projects, were identified in the Priority 1 areas.
An additional 12 holes were drilled for 1,013 metres to confirm the grades, lithologies, and structures from selected historic
RAB intercepts. These targets include:
•
•
•
•
cypIWR584: 8m @ 0 .64g/t Au from 28m including 4m @ 0.98g/t Au from 28m
gcmLVRB244: 8 m @ 5.74g/t Au from 32m, including 4m @ 11.3g/t Au from 32m
gcmMFRB133: 12m @ 0.35g/t Au from 32m, including 4m @ 0.85g/t from 32m
gcmSHRB36: 4m @ 9.68g/t Au from 84m, including 2m @ 12.90g/t Au from 85m
Figure 2 shows the locations of holes drilled and summary statistics for each target.
Figure 2. Location of Aircore holes drilled and summary statistics for targets tested.
8
DIRECTORS’ REPORT
MAIDEN AIRCORE DRILLING PROGRAM RESULTS
On 3 February 2021, the Company received all composite sample results from its maiden aircore drilling program at Jundee
South which was carried out in H2 of 2020.
In addition, Avenira resampled anomalous four composite intercepts at one metre sampling intervals. Resampling results
received to date and for non-resampled anomalous composites are contained in Table 1 and displayed in Figure 3.
Significance of intercepts – Target MF02
The anomaly intersected in hole JSA20_058 is associated with quartz-veined felsic volcanic rocks. The intercept of 7m @
1.36g/t Au is open at depth and has an open potential strike length of +720 metres due to its unconfirmed orientation.
This presents an encouraging target for deeper drill testing during the RC program scheduled for Q4, 2021. Figure 4
displays chip piles from hole JSA20_058 and Figure 5 displays the location of drilling at the MF02 target.
Significance of intercepts – Target YaN11 (gcmSHRB36)
Target YaN11 contains the historic intercept 4m@9.68g/t Au in hole gcmSHRB36. Aircore drilling to test for strike
extensions around this anomaly intercepted several anomalies as outlined in Table 1 and displayed in Figure 6.
The most significant intersection was contained in hole JSA20_125, which has identified potential for a 360 metre strike
extension to the anomaly in gcmSHRB36, subparallel to NW striking aeromagnetic linear features.
This anomaly is associated with a redox front, a zone in the regolith profile where soil conditions change from oxidising to
reducing, normally with an associated change in colour of drill spoil. This may result in a concentration of gold in these
vertical positions which have been remobilised from mineralised locations nearby due to weathering processes. As such,
there may be higher grade mineralisation present adjacent to the intercept.
The geology of this area is complex, with the presence of felsic porphyries, foliated basalts and intermediate volcanics with
varying degrees of quartz veining and sulphide development. This provides a high priority target for geological interpretation
and RC drilling.
9
DIRECTORS’ REPORT
Significance of intercepts – Target SH04
This composite anomaly is hosted in weathered dolerite, a similar rock to that hosting gold mineralisation in the adjacent
Jundee Gold Mine. Felsic intrusives are also present adjacent to the intercept which may provide a source of heat and fluid
associated with gold mineralisation. Drill spoil from associated hole JSA20_223 is displayed in Figure 7.
Resampling of the intersection and geological interpretation is required for this target to confirm its similarities to the
adjacent Jundee stratigraphy and suitability for follow-up drilling.
Significance of intercepts – Target cypIWR584
This composite anomaly is hosted in gabbro, a mafic rock which may provide a suitable locale for gold deposition. In this
case, the anomaly sits along a N-S trending magnetic feature and is open along strike to the NNW for up to 1,300 metres.
Drill chips from the associated hole are shown in Figure 8.
This composite anomaly requires resampling and geological interpretation to assess the need for follow-up work.
Figure 3. Location of Aircore holes drilled and anomalous analyses received
10
DIRECTORS’ REPORT
Figure 4. Mineralised zone in hole JSA20_058 (35-42m) at Target MF02
Figure 5. Location of anomaly in JSA20_058 at the MF02 Target
11
DIRECTORS’ REPORT
Figure 6. Location of anomalies adjacent to historical intercept gcmSHRB36 at the Target YaN11.
Figure 7. Mineralised zone in hole JSA_223 (52-56m) from Target SH04
Figure 8. Mineralised zone in JSA20_304 (52-56m)
12
DIRECTORS’ REPORT
ACQUISITION OF PROSPECTING LICENCES
On 10 March 2021, the Company acquired two Prospecting Licences south of its flagship project at Jundee South. These
licences (P53/1712 and P53/1713) expand Avenira’s ground position in the world class Yandal Greenstone Belt (see Figure
1).
The licences are located on a magnetic feature along which the Flushing Meadows gold deposit of Yandal Resources
Limited (ASX:YRL) is located (see Figure 9). An initial geological interpretation has identified stratigraphy similar to that
identified at the Flushing Meadows deposit (see Figure 10).
Figure 9. RTP 1VD Magnetics of P53/1712 & P53/1713
Figure 10. Geological Interpretation of P53/1712 & P53/1713
HERITAGE ACCESS AGREEMENT
Significant advancements were made in negotiations with the Tarlka Matuwa Piarku Aboriginal Corporation (TMPAC)
towards execution of a long-term land access agreement. A meeting was held with the TMPAC board during the final
quarter of the reporting period to discuss the agreement and work towards finalising the agreement to commencing a long-
term mutually beneficial relationship.
TENURE
The Jundee South Project comprises four granted Exploration Licences and two Prospecting Licence Applications
covering more than 720km2:
Tenement ID
E53/1856
E53/1859
E53/2078
E53/2079
P53/1712
P53/1713
Total
Status
Granted
Granted
Granted
Granted
Application
Application
Area (approx km2)
117
192
197
217
1
2
726
Table 2: Jundee South Tenement Status
COMPETENT PERSONS STATEMENT
The information in this report that relates to exploration results is based on and fairly represents information and supporting
documentation prepared by Mr. Steve Harrison, a Competent Person who is a member of the Australian Institute of
Geoscientists (AIG). Mr. Harrison is an employee of Avenira Limited. Mr. Harrison has sufficient experience that is relevant
to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves” (JORC Code). Mr Harrison consents to the inclusion in the report of the matters
based upon his information in the form and context in which it appears.
13
DIRECTORS’ REPORT
WONARAH PHOSPHATE PROJECT, NORTHERN TERRITORY (100% OWNED)
SUMMARY
Scoping study commenced on the Wonarah Project during the December 2019 Quarter. The scoping study includes the
review of existing data utilised in the Wonarah Definitive Feasibility Study (DFS) completed a decade ago. Avenira will also
review Diammonium phosphate (DAP) & Monoammonium phosphate (MAP) technology as a value-added step in the
processing options in parallel with the option of utilising the Novophos technology.
▪ Considered to be one of Australia’s largest phosphate projects:
Figure 11 Location map of Wonarah Phosphate Project
▪ Measured Resource of 64.9 Mt @ 22.4% P2O5
▪
▪
Indicated Resource of 133 Mt @ 21.1% P2O5
Inferred Resource of 352 Mt @ 21% P2O5 (15% cut-off)
▪
Excellent infrastructure
▪ Northern Gas Pipeline runs through the project area.
▪
▪
Adjacent to national highway and a high-quality water source
Port and rail is under capacity allowing easy expansion of Wonarah project
▪
Scoping study has commenced for options of Novaphos and MAP/ DAP processing technologies.
14
DIRECTORS’ REPORT
TENURE
The Wonarah Phosphate Project comprises of three granted exploration licences covering more than 151 km2:
Tenement ID
EL29840
EL29849
EL32359
Total
Status
Granted
Granted
Granted
Area (approx km2)
41.92
11.19
98.80
151.91
ANNUAL MINERAL RESOURCE STATEMENT AS AT 30/06/21
Table 2: Wonarah Phosphate Tenement Status
WONARAH PROJECT, NORTHERN TERRITORY, AUSTRALIA
Tonnes
P2O5
Al2O3
CaO
Fe2O3
K2O
MgO MnO
Na2O
SiO2
TiO2
Mt
%
%
Measured
78.3
20.8
4.85
%
28
%
%
%
%
1.11
0.43
0.25
0.04
%
0.1
%
%
39.7
0.21
17.5
4.75
23.2
1.49
0.47
0.2
0.04
0.09
48.3
0.22
18.3
4.77
24.4
18
4.8
1.4
2.1
1.1
0.46
0.21
0.04
0.09
46.1
0.22
0.5
0.2
0.08
0.05
0.37
0.19
0.04
0.09
46
37
0.2
0.19
1.53
0.47
0.21
0.04
0.09
39.7
0.22
24
30
28
Measured
64.9
22.4
4.47
21.1
4.77
Cut off
P2O5 %
Resource
Category
10
15
Indicated
M+I
Inferred
222
300
512
Indicated
M+I
Inferred
133
198
335
21.5
4.67
28.7
1.39
0.44
21
4.5
28
2.0
0.5
0.2
0.2
0.04
0.09
38.8
0.21
0.10
0.06
39
0.2
ANNUAL CHANGE IN RESOURCE CATEGORY
WONARAH PROJECT
Category
Inferred (10% cut-off)
Inferred 15% (cut-off)
Tonnes (M) % P2O5
Tonnes (M) % P2O5
2019
2020
Change
542
512
-30
18
18
-
352
335
-17
21
21
-
Table 3: Mineral Resource Statement
The Mineral Resource estimates for the Wonarah project have decreased by approximately 5% in the Inferred Resource
category for tonnage. The grades remain unchanged from the 2019 estimates. The estimates for the Measured Resource
and Indicated Resource categories remain unchanged from 2019. The decrease in the Inferred Resource category is
due to a reduction in tenement area peripheral to the main mineralized zones.
The mineral resource statement is based on, and fairly represents, information and supporting documentation prepared
by a Competent Person.
The mineral resources statement as a whole is approved by Russell Fulton, a Competent Person who is a Member of the
Australian Institute of Geoscientists. Mr. Fulton is employed by Russell Fulton Pty Ltd. Mr. Fulton was the former Geological
Manager and a full-time employee of the Company and now provides geological consulting services to the Company. Mr.
Fulton has sufficient experience deemed relevant to the style of mineralisation and type of deposit under consideration and
to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Fulton consents to the inclusion in
the report of the matters based on his information in the form and context in which it appears.
15
DIRECTORS’ REPORT
INVESTMENTS AND CORPORATE INFORMATION
BOARD AND EXECUTIVE CHANGES
In July 2021 the Company welcomed Roger Harris and Dr Geoffrey Xue to the Board as Non-executive Directors.
Mr. Harris and Dr Xue were appointed 8 July 2021 and 23 July respectively.
FINANCING
Fully Underwritten Entitlements Issue and Placement
This financial year, the Company completed a Placement and Entitlement Issue to raise a total of $3.4 million (before
costs).
The Placement comprised of 277.28 million New Shares, issues at $0.008 per Share to raise $2.2 million (before costs).
The Company also undertook a non-renounceable pro-rata entitlements issue (Entitlements Offer), under which eligible
shareholders had the opportunity to subscribe for two New Shares for every seven existing shares held at the same issue
price of $0.008 per share.
The Entitlements Offer raised a further $1.25 million (before costs) and was fully underwritten by Taylor Collison.
Loan Facility
On 8 March 2021, the Company entered into a $3 million, 3-year loan agreement with an interest rate of 8% pa and a
mining mortgage and security over the Company’s Wonarah Project and specified listed securities.
The Company received shareholder approval at the General Meeting held 14 June 2021. Further details of the Loan Facility
are set out in Note 15.
16
DIRECTORS’ REPORT
FINANCIAL REVIEW
FINANCIAL INFORMATION
At 30 June 2021, the total closing cash balance was $3,123,043 (2020: $1,288,337). The Group has recorded an operating
loss after income tax for the year ended 30 June 2021 of $2,105,959 (2020: loss of $5,669,716).
OPERATING RESULTS FOR THE YEAR
Summarised operating results are as follows
2021
REVENUE
$
2021
RESULTS
Consolidated entity activities before income tax
29,026
(2,105,959)
Shareholder Returns
Basic loss per share from continuing operations (cents)
Basic loss per share from discontinued operations (cents)
2021
2020
(0.26)
-
(0.54)
(0.36)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than detailed in the Review of Operations above there were no significant changes in the state of affairs of the
Group.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
Other than as disclosed above, no event has occurred since 30 June 2021 that would materially affect the operations of the
Group, the results of the Group or the state of affairs of the Group.
RISK MANAGEMENT
The Board is responsible for ensuring that risks, and opportunities, are identified on a timely basis and that activities are
aligned with the risks and opportunities identified by the Board.
The Company believes that it is crucial for all Board members to be a part of this process, and as such the Board has not
established a separate risk management committee.
The Board has a number of mechanisms in place to ensure that management’s objectives and activities are aligned with
the risks identified by the Board. These include the following:
•
•
Board approval of a strategic plan, which encompasses strategy statements designed to meet stakeholders’ needs
and manage business risk.
Implementation of Board approved operating plans and budgets and Board monitoring of progress against these
budgets.
SAFETY AND HEALTH
Avenira aspires to a goal of causing zero harm to people. In this regard, the Company is committed to undertake our
activities so as to protect the safety and health of employees, contractors, visitors and the communities in which we
operate. There were no lost time injuries during the year.
17
DIRECTORS’ REPORT
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Group is subject to significant environmental regulation with respect to its exploration activities.
The Group aims to ensure the appropriate standard of environmental care is achieved, and in doing so, as far as it is
aware is in compliance with all environmental legislation. The directors of the Group are not aware of any breach of
environmental legislation for the year under review.
DIRECTORS’ MEETINGS
During the year the number of meetings of directors (including meetings of committees of directors) and the number of
meetings attended by each director were as follows:
DIRECTORS MEETINGS
AUDIT COMMITTEE MEETINGS
Brett Clark
Winnie Lai Hadad
Kevin Dundo
A
16
16
16
B
16
16
16
A
*
2
2
B
*
2
2
REMUNERATION AND
NOMINATION COMMITTEE
MEETINGS
A
*
1
1
B
*
1
1
Notes
A – Number of meetings attended.
B – Number of meetings held during the time the director held office or was a member of the Committee during the year.
* – Not a member of the Committee.
SHARES UNDER OPTION
At the date of this report there are 60,000,000 unissued ordinary shares in respect of which options are outstanding.
Balance at the beginning of the year
Movements of share options
Issued 24 December 2019 ($0.02)
Issued 24 December 2019 ($0.03)
Issued 08 September 2020 ($0.025)
Issued 08 September 2020 ($0.035)
Total number of options outstanding as at the date of this report
NUMBER OF OPTIONS
60,000,000
24,000,000
24,000,000
6,000,000
6,000,000
60,000,000
INSURANCE OF DIRECTORS AND OFFICERS
During or since the financial year, the Company has paid premiums insuring all the directors of Avenira Limited against
costs incurred in defending proceedings for conduct involving:
a. willful breach of duty; or
b. a contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of the Corporations
Act 2001.
The total amount of insurance contract premiums paid is $82,305 (2020: $130,363).
18
DIRECTORS’ REPORT
NON-AUDIT SERVICES AND INDEMNIFICATION OF AUDITORS
Details of amounts paid or payable to the auditor for audit and non-audit services provided during the period, and an
assessment by the Board of whether non-audit service provided during the period are compatible with general standards
of independence for auditors imposed by the Corporations Act 2001 are set out in Note 19 - Remuneration of Auditors,
to the Consolidated Financial Statements.
To the extent permitted by law, the Company has agreed to indemnify its auditors, Hall Chadwick WA Audit Pty Ltd
(formerly Bentleys Audit & Corporate (WA) Pty Ltd), as part of the terms of its audit engagement agreement against
claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Hall
Chadwick during or since the financial year.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking
responsibility on behalf of the Company for all or any part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237
of the Corporations Act 2001.
CORPORATE GOVERNANCE
In recognising the need for the highest standard of corporate behaviour and accountability, the Directors of Avenira Limited
support and adhered to the principles of sound corporate governance. The Board recognises the recommendations of the
Australia Securities Exchange Corporate Governance Council, and considers that Avenira Limited is in compliance, to the
extent with those guidelines, which are of importance to the commercial operation of a junior listed resources company.
During the financial year, shareholders continued to receive the benefit of an efficient and cost-effective corporate
governance policy for the Company.
The Company has established a set of corporate governance policies and procedures and these can be found within the
Company’s Corporate Governance section on the Company’s website: http://www.avenira.com/about-us/governance.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set
out on page 27.
RESIGNATION AND APPOINTMENT OF AUDITOR
Ernst & Young resigned as the Company’s auditor after having received consent from ASIC effective from 12 January
2021.
The Company has appointed Hall Chadwick WA Audit Pty Ltd (formerly Bentleys Audit & Corporate (WA) Pty Ltd) as
its auditor for the period ended 31 December 2020 and year ended 30 June 2021. The Company will seek confirmation
of the appointment of Hall Chadwick WA Audit Pty Ltd to continue as its auditor for future years at the Company’s AGM
to be held later this year.
The Company sought a change in auditors to an audit firm that it considered to be a better fit with the Company’s size
and requirements.
19
DIRECTORS’ REPORT
REMUNERATION REPORT - AUDITED
The remuneration report is set out under the following main headings:
Introduction
A.
B. Remuneration governance
C. Overview of executive remuneration
D. Details of remuneration of Key Management Personnel
E. Executive KMP employment agreements
F. Overview of Non-executive Director remuneration
G. Share-based compensation
H. Equity holdings
A.
INTRODUCTION
The remuneration report for the year ended 30 June 2021 outlines the director and executive remuneration arrangements
of the Company and Group.
The information in this remuneration report has been provided in accordance with section 300A of the Corporations Act
2001. The information has been audited as required by section 308(3C) of the Corporations Act 2001.
For the purpose of this report, Key Management Personnel (“KMP”) of the Group are defined as those persons having
authority and responsibility for planning, directing and controlling the major activities of the Company and Group, directly
or indirectly, including any Director (whether executive or otherwise) of the Company.
The table below outlines the KMP of the Group during the financial year ended 30 June 2021. Unless otherwise indicated,
the individuals were KMP for the entire financial year.
NAME
Directors
Brett Clark
POSITION
Executive Chairman and CEO
Winnie Lai Hadad
Non-executive Director
Kevin Dundo
Non-executive Director
Other key management personnel
-
-
B. REMUNERATION GOVERNANCE
Remuneration and Nomination Committee
TERM AS KMP
Full financial year
Full financial year
Full financial year
-
The Board retains overall responsibility for remuneration policies and practices within the Group.
The Board has established a Remuneration and Nomination Committee (“RNC”) which operates in accordance with its
charter as approved by the Board. A copy of the charter is available under the corporate governance section of the
Group’s website.
The RNC is primarily responsible for making recommendations to the Board on remuneration arrangements for Executive
Directors, Non-executive Directors and other Senior Executives. The Corporate Governance Statement provides further
information on the role of this committee.
The RNC meets as required throughout the year. Refer to page 18 for the number of Committee meetings held during
the year. The Executive Chairman/CEO attends certain RNC meetings by invitation, where management input is required.
The Executive Chairman/CEO is not present during any discussions relating to his own remuneration arrangements.
20
DIRECTORS’ REPORT
Use of remuneration consultants
The RNC seeks external remuneration advice where necessary to ensure it is fully informed when making remuneration
decisions. Remuneration advisors are engaged by, and report directly to, the RNC.
No remuneration consultants were engaged during the financial year.
Securities trading policy
The Groups securities trading policy applies to all Non-executive Directors and executives. The policy prohibits employees
from dealing in Avenira Limited securities while in possession of material non-public information relevant to the Group.
The policy is available to be viewed within the corporate governance section of the Company’s website.
Voting and comments – 2020 Annual General Meeting (AGM)
The 2020 remuneration report was passed on a poll at the 2020 AGM. The Company did not receive any specific feedback
at the AGM regarding its remuneration practices.
C. OVERVIEW OF EXECUTIVE REMUNERATION
The remuneration policy of Avenira Limited has been designed to align executives’ objectives with shareholders and
business objectives. The Board of Avenira believes the policy to be appropriate and effective in its ability to:
•
•
attract and retain high quality directors and executives to run and manage the Company.
create goal congruence between directors, executives and shareholders.
The executive KMP receive an appropriate level and mix of remuneration consisting of fixed remuneration and variable
remuneration in the form of incentive opportunities. The RNC reviews executive KMP packages annually by reference to
the Group’s performance, executive performance and comparable information from industry sectors and other listed
companies in similar industries.
Elements of Executive Remuneration
The executive remuneration framework is comprised of:
a.
b.
Fixed Remuneration - Base Salary, including superannuation (if applicable)
Variable Remuneration - Incentives and Cash Bonuses
1. FIXED REMUNERATION - BASE SALARY, INCLUDING SUPERANNUATION
All executive KMPs receive a base cash salary (which is based on factors such as scope of the role, skills, experience,
location and length of service) and superannuation contributions, where applicable. The executive KMPs, where
applicable, receive a superannuation guarantee contribution required by the government, which is currently 9.50%,
and do not receive any other retirement benefits.
2.
VARIABLE REMUNERATION – INCENTIVES AND CASH BONUSES
Incentives in the form of equities and cash bonuses are provided to certain executive KMP at the Board’s discretion.
The policy is designed to provide a variable “at risk” component within the executive KMP’s total remuneration
packages to attract, retain and motivate the highest calibre of executive KMP and reward them for performance that
results in long term growth in shareholder wealth through achievement of the Company’s financial and strategic
objectives.
Receipt of variable remuneration in any form is not guaranteed under any executive KMP’s employment contract.
21
DIRECTORS’ REPORT
2.1
LONG TERM INCENTIVE (LTI)
In 2020, 48,000,000 Options were issued to the Directors as LTI’s.
No LTI’s were issued in 2021. Refer to Section G of the Remuneration Report for further details.
2.2
SHORT TERM INCENTIVE (STI)
Under the STI, certain executives have the opportunity to earn an annual incentive award. The STI recognises
and rewards annual performance. The bonus KPIs are chosen as they reflect the core drivers of the short-term
performance and also provide a framework for delivering sustainable value to the Group and its shareholders.
Executive Chairman/CEO 2021 Short-Term Incentive
The Executive Chairman/CEO, Mr Brett Clark, is engaged pursuant to a Consultant Service Agreement, which
provides for Mr Clark to participate in a short term incentive scheme on a yearly basis, being no more than an
incentive payment of 50% of his yearly remuneration, based on certain non-financial measures.
A summary of the non-financial measures to be achieved and their weightings are set out in the table below:
SUMMARY
Complete corporate transactions as directed by the Board
Complete as planned and in budget initial exploration on Jundee
South and develop long term plan for the Jundee Project
Individual Performance Review
%
60
15
25
The Board approved the final STI award based on assessment of performance against the non-financial
measures.
Based on the assessment, a cash bonus in the amount of $45,000 was paid to the Executive Chairman and CEO
Mr. Brett Clark, following the end of the 2021 financial year.
Relationship between remuneration policy and company performance
The remuneration policy has been tailored to increase the direct goal congruence between shareholders, directors and
executives.
The table below shows the performance of the Company over the last 5 years:
EPS (cents)
Share Price
Net Profit / (Loss) before
discontinued operations
2021
(0.26)
$0.007
2020
(0.54)
$0.009
2019
(0.30)
$0.006
2018
(0.42)
$0.02
2017
(5.09)
$0.07
(2,105,959)
(3,395,173)
(3,084,624)
3,225,309
(30,579,063)
As the Company is in the development phase the performance of the Company is not related to the profit or earnings of
the Company.
22
DIRECTORS’ REPORT
D. DETAILS OF REMUNERATION OF KEY MANAGEMENT PERSONNEL (KMP)
The table below shows details of each component of total remuneration for KMP.
SHORT-TERM
POST EMPLOYMENT
LONG-TERM
SHARE-BASED PAYMENTS
SALARY & FEES
CASH BONUS
$
$
NON-
MONETARY (7)
SUPERANNUATION
TERMINATION
BENEFITS
LONG SERVICE
LEAVE
ANNUAL LEAVE
TOTAL CASH
RELATED
PERFORMANCE
RIGHTS
OPTIONS (8)
TOTAL
REMUNERATION
PERFORMANCE
RELATED
$
$
$
$
$
$
$
$
$
%
Directors
Brett Clark (1)
2021
2020
Winnie Lai Hadad (2)
2021
2020
Kevin Dundo (3)
2021
2020
Louis Calvarin (4)
2021
2020
Timothy Cotton (5)
2021
2020
Subtotal Directors
2021
2020
Other executive KPM
Rod Wheatley (6)
250,000
290,458
72,000
33,290
72,000
33,290
-
225,000
-
18,452
45,000
70,000
-
25,000
-
25,000
-
-
-
-
46,688
-
-
-
-
-
-
48,027
-
-
23,750
12,667
6,840
-
6,840
-
-
-
-
-
394,000
600,490
45,000
120,000
46,688
48,027
37,430
12,667
-
-
-
-
-
-
-
48,327
-
-
-
48,327
2021
2020
-
44,901
-
-
-
-
-
4,266
-
97,880
Total KMP compensation
2021
2020
394,000
645,391
45,000
120,000
46,688
48,027
37,430
16,933
-
146,207
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
365,438
373,125
78,840
58,290
78,840
58,290
-
321,354
-
18,452
523,118
829,511
-
147,047
523,118
976,558
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
187,025
-
93,513
-
93,513
-
-
-
-
-
365,438
560,150
78,840
151,803
78,840
151,803
-
321,354
-
18,452
523,118
374,051
1,203,562
-
-
-
-
147,047
523,118
374,051
1,350,609
-
33%
-
62%
-
62%
-
-
-
-
-
-
(1) The amount represents the total remuneration paid to Brett Clark and includes (2020: $117,125) of fees paid for advisory services provided during the year. Mr. Clark is remunerated through CBD Executive Services Pty Ltd; a business
of which Mr. Clark is the principal.
(2) Winnie Lai Hadad appointed as Non-Executive Director on 22 October 2019.
(3) Kevin Dundo was appointed as Non-Executive Director on 22 October 2019.
(4) Louis Calvarin resigned as Non-Executive Director on 22 October 2019.
(5) Timothy Cotton resigned as Non-Executive Director on 22 October 2019.
(6) Rodney Wheatley resigned as Chief Financial Officer and Joint Company Secretary on 26 August 2019.
(7) Non-monetary benefits include car lease payments and income insurance.
(8) The amount represents Option Holdings granted in the 2020 financial year to the Directors. Refer to Share-Based Compensation on page 25 for further details.
23
DIRECTORS’ REPORT
E. EXECUTIVE KMP EMPLOYMENT AGREEMENTS
The Group has entered into formal employment contracts with Executive KMP. The employment contracts for executive
KMP have no fixed term and do not prescribe how remuneration levels are to be modified from year to year. A summary of
the main provisions of these contracts for the year ended 30 June 2021 are set out below:
NAME
TERMS
Brett Clark (Executive
Chairman and CEO)
Base salary of $250,000 (exclusive of superannuation contributions), reviewed
annually.
6 months’ notice by Mr. Clark. 6 months by Company and upon change of control.
Termination payments to reflect appropriate notice, except in cases of termination
for cause.
Two tranches of 12,000,000 options issued to Mr. Clark approved by shareholders
29 November 2019.
Mr. Clark shall be eligible to participate in Short Term Incentive Schemes up to 50%
of his base salary that the Company may offer.
F. OVERVIEW OF NON-EXECUTIVE DIRECTOR REMUNERATION
The Board policy is designed to attract and retain high caliber directors and to remunerate Non-executive Directors at
market rates for comparable companies for time, commitment, and responsibilities. The Board determines payments to
the Non-executive Directors and reviews their remuneration annually, based on market practice, duties and accountability. The
Executive Chairman’s fee will be determined independently to the fees of the Non-executive Directors based on
comparative roles in the external market. External advice from independent remuneration consultants is sought when
required.
The maximum aggregate amount of fees that can be paid to Non-executive Directors is subject to approval by
shareholders at the Annual General Meeting. The most recent determination was at the November 2016 Annual
General Meeting, where shareholders approved the maximum aggregate amount of fees that can be paid to Non-
executive Directors to be $600,000.
The Company makes superannuation contributions on behalf of the Non-executive Directors in accordance with its
Australian statutory superannuation obligations, and each director may sacrifice part of their fee for further superannuation
contribution by the Company.
Any equity components of Non-executive Directors’ remuneration, including the issue of options or Performance
Rights, are required to be approved by shareholders prior to award.
The table below summaries the Non-executive fees for the 2021 financial year:
Board
Non-executive Directors
Committee
Audit Chair
Remuneration and Nomination Chair
BASE FEES 2021
BASE FEES 2020
$72,000
$48,000
Nil
Nil
Nil
Nil
Termination payments
The Board must approve all termination payments provided to all employees at the level of director, executive or senior
management to ensure such payments reflect the Company’s remuneration policy and are in accordance with the
Corporations Act 2001.
Other transactions and balances with KMPs and their related parties
(i)
The Company has an exclusive licence to ultilise the Novaphos, Inc (Novaphos) technology in Australia. Former
Director Mr. Cotton has an equity interest in Novaphos.
24
DIRECTORS’ REPORT
G. SHARE-BASED COMPENSATION
There were no share-based payments issued to directors or other KMP during the 2021 financial year.
Share based compensation – Option Holdings
Option Holdings affecting remuneration in the current or future reporting period are as follows:
Key terms of options granted to KMP
NUMBER VESTED
GRANT DATE
NUMBER
GRANTED
DURING THE
YEAR
VESTING DATE
EXPIRY DATE
FAIR VALUE PER
OPTION AT
GRANT DATE, $
EXERCISE
PRICE, $
VESTED
%
2020
TRANCHE 1
Directors
Brett Clark
29-Nov-19
12,000,000
Winnie Lai Hadad
29-Nov-19
6,000,000
29-Nov-19
29-Nov-19
Kevin Dundo
TRANCHE 2
Directors
Brett Clark
29-Nov-19
6,000,000
29-Nov-19
29-Nov-19
12,000,000
29-Nov-19
Winnie Lai Hadad
29-Nov-19
6,000,000
Kevin Dundo
29-Nov-19
6,000,000
29-Nov-19
29-Nov-19
Further information is set out in Note 28 of the financial statements.
30-Nov-22
30-Nov-22
30-Nov-22
30-Nov-22
30-Nov-22
30-Nov-22
$0.008
$0.008
$0.008
$0.007
$0.007
$0.007
$0.02
$0.02
$0.02
$0.03
$0.03
$0.03
100%
100%
100%
100%
100%
100%
25
DIRECTORS’ REPORT
H. EQUITY HOLDINGS
Option Holdings
The number of options over ordinary shares in the Company held during the financial year by each director of Avenira
Limited and other KMP of the Group, including their personally related parties, are set out below:
BALANCE AT
START OF THE
YEAR
GRANTED AS
COMPENSATION
EXERCISED
EXPIRED
BALANCE AT
END OF THE
YEAR
VESTED
AND
EXERCISABLE
UNVESTED
2021
Directors
Brett Clark
Winnie Lai Hadad
Kevin Dundo
24,000,000
12,000,000
12,000,000
-
-
-
-
-
-
-
-
-
24,000,000
24,000,000
12,000,000
12,000,000
12,000,000
12,000,000
-
-
-
All vested options were exercisable at the end of the year. Full details can be found at Note 16.
Shareholdings
The number of shares in the Company held during the financial year by each director of Avenira Limited and other KMP
of the Group, including their personally related partied, are set as follows:
BALANCE AT START
OF THE YEAR
RECEIVED DURING
THE YEAR FOR
RIGHTS
CONVERTED
GRANTED AS
REMUNERATION
OTHER CHANGES
DURING THE YEAR
BALANCE AT END
OF THE YEAR
2021
Directors
Brett Clark
Winnie Lai Hadad
Kevin Dundo
-
-
-
-
-
-
-
-
-
-
-
-
-
6,250,000
6,250,000
None of the shares above are held nominally by the directors or any of the KMP.
There were no other transactions and balances with KMP and their related parties other than as disclosed.
End of Remuneration Report
Signed in accordance with a resolution of the directors.
BRETT CLARK
Executive Chairman
Perth, 22 September 2021
26
To the Board of Directors
Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
As lead audit partner for the audit of the financial statements of Avenira Limited for the year ended 30
June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:
•
the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and
• any applicable code of professional conduct in relation to the audit.
Yours faithfully,
HALL CHADWICK WA AUDIT PTY LTD
DOUG BELL CA
Partner
Dated 22nd of September 2021
QUALIFYING STATEMENTS
STATEMENT OF GOVERNANCE ARRANGEMENTS AND INTERNAL CONTROLS
Governance of Avenira Limited’s Mineral Resources estimation process is a key responsibility of the Executive Management
of the Company.
The Chief Geologist of the Company oversees technical reviews of the estimates and the evaluation process is augmented by
utilising Avenira’s in-house knowledge in operational and project management, ore processing and commercial/financial areas.
The Company also utilises external consultants for these purposes.
The Chief Geologist is responsible for managing all Avenira’s drilling programs, including resource definition drilling. The
estimation of Mineral Resources is done by an independent contractor, MPR Geological Consultants Pty Ltd.
The Company has adopted quality assurance and quality control protocols based on current and best practice regarding all field
aspects including drill hole surveying, drill sample collection, sample preparation, sample security, provision of duplicates,
blanks and matrix-matched certified reference materials. All geochemical data generated by laboratory analysis is examined
and analysed by the Chief Geologist before accession to the Company database.
Data is subject to additional vetting by the independent contractor who carries out the resource estimates. Resource estimates
are based on well-founded, industry-accepted assumptions and compliance with standards set out in the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Mineral resource estimates are subject to peer review by the independent contractor and a final review by Avenira’s
Executive Management before market release.
Avenira Limited reports its mineral resources and ore reserves on an annual basis, in accordance with the Australian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC code) 2012 Edition.
PREVIOUSLY REPORTED RESULTS
There is information in this report relating to Mineral Resource estimates which was previously reported on 15 Mar 2013, 30 Apr
2014 and 31 Jan 2020. The Company confirms that it is not aware of any new information or data that materially affects the
information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves that
all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings
are presented have not been materially modified from the original market announcement.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
All statements, trend analysis and other information contained in this document relative to markets for Avenira’s trends in resources,
recoveries, production and anticipated expense levels, as well as other statements about anticipated future events or results constitute
forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”,
“anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or
“might” occur or be achieved and other similar expressions. Forward-looking statements are subject to business and economic risks
and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-
looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are
made. Avenira does not undertake any obligation to update forward-looking statements even if circumstances or management’s
estimates or opinions should change. Investors should not place undue reliance on forward-looking statements.
28
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE
INCOME
YEAR ENDED 30 JUNE 2021
INCOME
Interest income
Other income
EXPENDITURE
Depreciation and amortisation expense
Salaries and employee benefits expense
Net foreign currency gain/(loss)
Impairment of exploration and evaluation expenditure
Interest expense - leases
Net gain/(loss) on disposal of fixed asset / intangibles
Share based payment (expense)/reversal
Administrative and other expenses
LOSS BEFORE INCOME TAX FROM CONTINUING OPERATIONS
INCOME TAX BENEFIT
LOSS FOR THE YEAR FROM CONTINUING OPERATIONS
Discontinued Operations
Net gain/(loss) after tax for the year from discontinued operations
LOSS FOR THE YEAR
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to Profit or Loss, net of tax
Exchange differences on translation of foreign operations
Recycled to the profit and loss on derecognition of controlled entity
Exchange differences arising during the year
Financial assets measured at fair value through profit and loss
Net fair value gain / (loss) on financial assets measured at fair value through OCI
Other comprehensive income / (loss) for the year, net of tax
TOTAL COMPREHENSIVE INCOME / (LOSS) FOR THE YEAR
Income / (Loss) for the year is attributable to:
Owners of Avenira Limited
Non-controlling interest
Total comprehensive income / (loss) for the year is attributable to:
Owners of Avenira Limited
Non-controlling interest
LOSS PER SHARE
From continuing operations
Basic profit per share (cents)
Diluted profit per share (cents)
From total operations
Basic loss per share (cents)
Diluted loss per share (cents)
CONSOLIDATED
NOTES
2021
$
2020
$
5
5
6
12
10
28
6
7
11
27
27
27
27
18,086
10,940
35,680
-
(34,214)
(857,575)
51
(92,924)
(4,515)
-
(77,919)
(1,067,889)
(2,105,959)
-
(22,283)
(744,576)
607
(596,960)
(3,611)
(47,129)
(374,051)
(1,642,850)
(3,395,173)
-
(2,105,959)
(3,395,173)
-
(2,105,959)
(2,274,543)
(5,669,716)
-
-
-
418,550
418,550
2,332,312
119,851
2,452,163
67,882
2,520,045
(1,687,409)
(3,149,671)
(2,105,959)
-
(2,105,959)
(5,312,588)
(357,128)
(5,669,716)
(1,687,409)
-
(2,792,543)
(357,128)
(1,687,409)
(3,149,671)
(0.26)
(0.26)
(0.26)
(0.26)
(0.54)
(0.54)
(0.84)
(0.84)
The above Consolidated Statement of Profit and Loss and Other Comprehensive Income should be read in conjunction with the Notes
to the Consolidated Financial Statements.
29
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Trade and other receivables
Financial assets
Plant and equipment
Capitalised exploration and evaluation expenditure
Right-of-use assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Lease Liability
Provisions
Amounts received in advance on sale of financial assets
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Provisions
Lease Liability
Loans and borrowings
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
NOTES
CONSOLIDATED
2021
$
2020
$
8
9
9
18
12
10
13
10
14
14
10
15
3,123,043
129,209
3,252,252
1,481,600
1,718,543
-
7,511,257
48,800
10,760,200
14,012,452
527,286
38,148
43,404
31,306
640,144
1,768,081
16,741
2,480,000
4,264,822
4,904,966
9,107,486
1,288,337
109,139
1,397,476
1,481,600
424,993
3,796
6,344,326
84,348
8,339,063
9,736,539
361,023
35,816
6,415
-
403,254
1,739,674
55,986
-
1,795,660
2,198,914
7,537,625
EQUITY
Issued capital
Reserves
Accumulated losses
Capital and reserves attributable to members of Avenira Limited
Non-controlling interest
TOTAL EQUITY
16
17(a)
17(b)
140,516,513
18,290,545
(149,699,572)
9,107,486
-
9,107,486
137,337,162
25,259,540
(155,059,077)
7,537,625
-
7,537,625
The above Consolidated Statement of Financial Position should be read in conjunction with the Notes to the Consolidated Financial
Statements.
30
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED
NOTES
ISSUED
CAPITAL
RESERVES
ACCUMULATED LOSSES
TOTAL
NON-
CONTROLLING
INTEREST
TOTAL
ATTRIBUTABLE TO OWNERS OF AVENIRA LIMITED
BALANCE AT 30 JUNE 2019
Loss for the year
Other comprehensive income/(loss) for the year
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Shares cancelled during the year
Shares issued during the year
Share based payment
Discontinued operations
BALANCE AT 30 JUNE 2020
Loss for the year
Other comprehensive income/(loss) for the year
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS
Shares issued during the year
Share issue transaction costs
Share based payment
NCI Reserve transfer
BALANCE AT 30 JUNE 2021
$
$
$
$
$
$
142,280,149
27,014,485
(149,389,359)
19,905,275
(3,427,261)
16,478,014
-
-
-
(4,942,987)
-
-
-
-
(5,312,588)
(5,312,588)
(357,128)
(5,669,716)
2,520,044
2,520,044
-
-
374,051
(4,649,041)
-
2,520,045
-
2,520,045
(5,312,588)
(2,792,544)
(357,128)
(3,149,672)
-
-
-
(4,942,987)
-
374,051
-
-
-
(4,942,987)
-
374,051
(357,128)
(5,006,169)
3,784,389
(1,221,780)
137,337,162
25,259,540
(155,059,077)
7,537,625
-
-
-
3,376,783
(197,432)
-
418,550
418,550
-
-
-
-
77,919
(7,465,464)
(2,105,959)
(2,105,959)
-
418,550
(2,105,959)
(1,687,409)
-
-
-
7,465,464
3,376,783
(197,432)
77,919
-
140,516,513
18,290,545
(149,699,572)
9,107,486
-
-
-
-
-
-
-
-
-
7,537,625
(2,105,959)
418,550
(1,687,409)
3,376,783
(197,432)
77,919
-
9,107,486
28
11
28
The above Consolidated Statement of Changes in Equity should be read in conjunction with the Notes to the Consolidated Financial Statements.
31
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Payments to suppliers and employees
Receipts for other income
Interest received
Payment of lease interest
NOTES
CONSOLIDATED
2021
$
2020
$
(1,737,879)
10,940
(3,739,733)
3,561
17,448
(4,515)
33,487
(3,611)
NET CASH (OUTFLOW) FROM OPERATING ACTIVITIES
26
(1,714,006)
(3,706,296)
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditure on mining interests
Payments for mine development
Payments for exploration expenditure
Payments for plant and equipment
Receipts received in advance for sale of financial instruments
Refund from security deposits
Proceeds from sale of discontinued operations, net of cash disposed
Purchase of financial instruments
(1,166,931)
-
(64,517)
-
31,306
-
-
(875,000)
(770,515)
(962,814)
(3,700)
-
1,527
4,284,234
(341,491)
NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES
(2,075,142)
2,207,240
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share-buy back
Transaction costs on issue of shares
Proceeds from loans and borrowings
Payment of principal portion of lease liabilities
Repayments of loans
NET CASH INFLOW FROM FINANCING ACTIVITIES
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
3,376,783
(197,432)
2,480,000
(35,548)
-
5,623,803
1,834,655
1,288,337
51
-
-
3,028,126
(16,408)
(674,950)
2,336,768
837,712
300,544
150,081
CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL
YEAR
8
3,123,043
1,288,337
The above Consolidated Statement of Cash Flows should be read in conjunction with the Notes to the Consolidated
Financial Statements.
32
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
1. BASIS OF PREPARATION
The financial statements are for the consolidated entity consisting of Avenira Limited and its subsidiaries (the “Company”
or the “Group). The financial statements are presented in the Australian currency. Avenira Limited is a for profit company
limited by shares, domiciled and incorporated in Australia, whose shares are publicly traded on the Australian Securities
Exchange. The Company’s registered office and principal place of business is Suite 6, 100 Mill Point Road South Perth
WA 6151. The financial statements were authorised for issue in accordance with a resolution of the directors on 20
September 2021. The directors have the power to amend and reissue the financial statements.
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The
accounting policies outlined throughout the financial statements have been consistently applied to all the years
presented, unless otherwise stated.
Compliance with IFRS
The financial statements of the Group also comply with International Financial Reporting Standards (IFRS) as issued
by the International Accounting Standards Board (IASB).
Historical cost convention
The financial statements have been prepared under the historical cost convention, modified, where applicable by the
measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Functional and presentation currency
The financial statements are presented in Australian dollars, which is the Group’s reporting currency and the functional
currency of the parent company and its Australian subsidiaries.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in profit or loss, except when they are deferred in equity as qualifying cash flow hedges and qualifying net
investment hedges or are attributable to part of the net investment in a foreign operation. Translation differences on
financial assets and liabilities carried at fair value are reported as part of the fair value gain or loss. Translation
differences on non-monetary financial assets and liabilities such as equities held at fair value through profit or loss are
recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-monetary financial assets
such as equities classified as available-for-sale financial assets are included in the fair value reserve in equity.
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
1. BASIS OF PREPARATION (continued)
Going concern
The financial report has been prepared on the going concern basis which contemplates the continuity of normal business
activity, the realisation of assets and the settlement of liabilities in the ordinary course of business.
For the year ended 30 June 2021 the Group made a loss of $2,105,959 (2020: $5,669,716) and net operating cash outflows
of $1,714,006 (2020: $3,706,296).
The ability of the Group to continue as a going concern is principally dependent sale of liquid investments and if required
capital raising. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the
Group to continue as a going concern.
The directors have prepared a cash flow forecast, which indicates that the Group will have sufficient cash flows to meet all
commitments and working capital requirements for the 12-month period from the date of signing this financial report.
The Directors believe it is appropriate to prepare these accounts on going concern basis for the following reasons:
•
•
•
•
Following the end of the financial year, the Company drew down the remaining $520,000 from its $3 million
Loan Facility;
The Group holds liquid financial assets that can be sold to meet cash flow requirements;
The Company has the ability to raise capital; and
The Group has the ability to reduce corporate and overhead expenditures in line with available funds if required.
Based on the cash flow forecasts and other factors referred to above, the Directors are satisfied that the going concern
basis of preparation is appropriate. In particular, given the Group’s history of raising capital to date, the directors are
confident of the Group’s ability to raise additional funds as and when they are required.
Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its
liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.
The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying
amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a
going concern and meet its debts as and when they fall due.
Critical accounting estimates
The preparation of financial statements requires management to use estimates, judgements, and assumptions.
Application of different assumptions and estimates may have a significant impact on Avenira’s net assets and financial
results. Estimates and assumptions are reviewed on an ongoing basis and are based on the latest available information
at each reporting date. Actual results may differ from the estimates.
The areas involving a higher degree of judgement and complexity, or areas where assumptions are significant to the
financial statements are:
Note 12 Impairment of capitalised exploration and evaluation expenditure
Note 14 Provision for mine rehabilitation and restoration
Note 28 Share based payments
Page 50
Page 51
Page 68
Comparative Figures
When required by the accounting standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
When the Group applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in
its financial statements, a statement of financial position as at the beginning of the earliest comparative period will be
disclosed.
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case, it is recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.
COVID-19
The COVID-19 outbreak has continued to impact everybody in 2021. Measures taken by various governments to contain
the virus have affected economic activity. We have taken a number of measures to monitor and prevent the effects of
the COVID-19 virus such as safety and health measures for our people (like social distancing and working from home).
At this stage, the impact on our business and results is limited. We will continue to follow the various national institutes
policies and advice and in parallel will do our utmost to continue our operations in the best and safest way possible
without jeopardizing the health of our people.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
2. PRINCIPLES OF CONSOLIDATION
Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Avenira Limited
(“Company” or “Parent Entity”) as at 30 June 2021 and the results of all subsidiaries for the year then ended. Avenira
Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.
Subsidiaries are all entities (including special purpose entities) over which the Group has control. The Group controls
an entity when the Group 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. They are de-consolidated
from the date that control ceases.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the
date the Group gains control until the date the Group ceases to control the subsidiary.
If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-
controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any
investment retained is recognised at fair value.
The acquisition method of accounting is used to account for business combinations by the Group. Intercompany
transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised
losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the Group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of
comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position
respectively.
Investments in subsidiaries are accounted for at cost in the individual financial statements of the Company.
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Fair Value of Assets and Liabilities
The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending
on the requirements of the applicable Accounting Standard.
Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e.
unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.
As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine
fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.
To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the
market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the
most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the
receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account
transaction costs and transport costs).
For non-financial assets, the fair value measurement also takes into account a market participant’s ability to use the asset
in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use.
The fair value of liabilities and the entity’s own equity instruments (excluding those related to share-based payment
arrangements) may be valued, where there is no observable market price in relation to the transfer of such financial
instruments, by reference to observable market information where such instruments are held as assets. Where this
information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective
note to the financial statements.
VALUATION TECHNIQUES
In the absence of an active market for an identical asset or liability, the Group selects and uses one or more valuation
techniques to measure the fair value of the asset or liability. The Group selects a valuation technique that is appropriate in
the circumstances and for which sufficient data is available to measure fair value. The availability of sufficient and relevant
data primarily depends on the specific characteristics of the asset or liability being measured. The valuation techniques
selected by the Group are consistent with one or more of the following valuation approaches:
Market approach: valuation techniques that use prices and other relevant information generated by market transactions
for identical or similar assets or liabilities.
Income approach: valuation techniques that convert estimated future cash flows or income and expenses into a single
discounted present value.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
Each valuation technique requires inputs that reflect the assumptions that buyers and sellers would use when pricing
the asset or liability, including assumptions about risks. When selecting a valuation technique, the Group gives priority
to those techniques that maximise the use of observable inputs and minimise the use of unobservable inputs. Inputs
that are developed using market data (such as publicly available information on actual transactions) and reflect the
assumptions that buyers and sellers would generally use when pricing the asset or liability are considered observable,
whereas inputs for which market data is not available and therefore are developed using the best information available
about such assumptions are considered unobservable.
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FAIR VALUE HIERARCHY
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value
measurements into one of three possible levels based on the lowest level that an input that is significant to the
measurement can be categorised into as follows:
Level 1
Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
Level 2
Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly or indirectly.
Level 3
Measurements based on unobservable inputs for the asset or liability.
The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation
techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. If all
significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or
more significant inputs are not based on observable market data, the asset or liability is included in Level 3.
The Group would change the categorisation within the fair value hierarchy only in the following circumstances:
i.
ii.
If a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa;
or
If significant inputs that were previously unobservable (Level 3) became observable (Level 2) or vice versa.
When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy
(i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances
occurred.
(b) Foreign exchange transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and
from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in profit or loss.
Translation differences on financial assets and liabilities carried at fair value are reported as part of the fair value gain
or loss. Translation differences on non-monetary financial assets and liabilities such as equities held at fair value through
profit or loss are recognised in profit or loss as part of the fair value gain or loss. Translation differences on non-
monetary financial assets such as equities classified as financial assets through other comprehensive income are
included in the fair value reserve in equity.
(c) New and revised AASB’s affecting amounts reported and/or disclosures in the financial statements
In the year ended 30 June 2021, the Directors have reviewed all of the new and revised Standards and Interpretations
issued by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result
of this review, the Directors have determined that there is no material impact of the new and revised Standards and
Interpretations on the Company and, therefore, no material change is necessary to Group accounting policies.
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(d) New and revised Accounting Standards for Application in Future Periods
The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet adopted for
the year ended 30 June 2021. As a result of this review the Directors have determined that there is no material impact
of the Standards and Interpretations in issue not yet adopted on the Company and, therefore, no change is necessary
to Group accounting policies.
(e) Deferred tax assets and deferred tax liabilities
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax
bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
39
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
4. SEGMENT INFORMATION
Accounting Policy
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 full Board of Directors.
(a) Description of segments
Management has determined the operating segments based on the reports reviewed by the Board of Directors that
are used to make strategic decisions.
The Board considers the business from both functional and geographic perspectives and has identified that there are
two reportable segments being:
• exploration and development of Wonarah in the Northern Territory in Australia;
•
exploration and development of Jundee South in Western Australia; and
•
unallocated items comprise corporate administrative costs, interest revenue, finance costs, investments,
corporate plant and equipment and income tax assets and liabilities.
(b) Segment information provided to the Board
The following table presents revenue and profit for the Group’s operating segments for the reporting period.
WONARAH
(NORTHERN
TERRITORY)
JUNDEE SOUTH
(WESTERN
AUSTRALIA)
UNALLOCATED –
OTHER SEGMENTS
TOTAL
CONSOLIDATED
$
$
$
$
2021
Income
Interest income
Other income
Total segment income
Total revenue as per statement of
comprehensive income
Impairment of non-current assets
Salaries, administrative and other
expenses
Depreciation and amortisation
Net loss on disposal of fixed assets
Segment net loss before tax
Tax benefit
Segment net loss after tax
Total net loss as per statement of
comprehensive income
Segment assets
Capitalised exploration and evaluation
expenditure
Other assets at balance date
Total segment assets
Segment liabilities
Other liabilities at balance date
Total segment liabilities
9,420
10,000
19,420
(92,924)
(37,992)
-
-
(111,496)
-
(111,496)
-
-
-
-
-
-
-
-
-
-
8,666
940
9,606
18,086
10,940
29,026
29,026
-
(92,924)
(1,969,855)
(2,007,847)
(34,214)
(34,214)
-
-
(1,994,463)
(2,105,959)
-
-
(1,994,463)
(2,105,959)
(2,105,959)
5,889,800
1,621,457
-
7,511,257
1,487,481
7,377,281
1,768,430
1,768,430
-
5,013,714
6,501,195
1,621,457
5,013,714
14,012,452
-
-
3,136,536
3,136,536
4,904,966
4,904,966
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
WONARAH
(NORTHERN
TERRITORY)
JUNDEE SOUTH
(WESTERN
AUSTRALIA)
UNALLOCATED –
OTHER SEGMENTS
TOTAL
CONSOLIDATED
$
$
$
$
23.471
23,471
(596,960)
(38,926)
-
(883)
(613,298)
-
(613,298)
-
-
-
-
-
-
-
-
-
12,209
12,209
35,680
35,680
35,680
-
(596,960)
(2,725,555)
(2,764,481)
(22,283)
(46,246)
(22,283)
(47,129)
(2,781,875)
(3,395,173)
-
-
(2,781,875)
(3,395,173)
(2,274,543)
(5,669,716)
5,889,800
454,526
-
6,344,326
-
1,497,094
7,386,895
1,740,628
1,740,628
-
-
454,526
3,796
1,891,322
1,895,118
3,796
3,388,416
9,736,539
-
-
458,286
458,286
2,198,914
2,198,914
2020
Income
Interest income
Total segment income
Total revenue as per statement of
comprehensive income
Impairment of non-current assets
Salaries, administrative and other
expenses
Depreciation and amortisation
Net loss on disposal of fixed assets
Segment net loss before tax
Tax benefit
Segment net loss after tax
Loss from discontinued operations
Total net loss as per statement of
comprehensive income
Segment assets
Capitalised exploration and evaluation
expenditure
Plant and equipment
Other assets at balance date
Total segment assets
Segment liabilities
Other liabilities at balance date
Total segment liabilities
5. INCOME
Accounting policies
Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial
assets.
Other income
Interest from financial institutions
Other income
2021
$
2020
$
18,086
10,940
29,026
35,680
-
35,680
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
6. ADMINISTRATIVE AND EMPLOYEE BENEFITS EXPENSE
Loss before income tax includes the following administrative expenses
Consultants
Regulatory expenses
Accounting and legal
Travel expenses
Short term office lease expense
Other administrative expenses
Loss before income tax includes the following employee benefit
expenses
Salaries and wages
Defined contribution superannuation expense
Regulatory taxes
Director fees
Medical and insurance
7. INCOME TAX
Accounting Policies
2021
$
2020
$
347,445
148,308
379,173
30,740
32,154
130,069
842,055
130,416
337,187
31,524
89,407
212,261
1,067,889
1,642,850
2021
$
2020
$
287,436
62,099
22,352
439,000
46,688
857,575
76,252
16,932
-
603,366
48,027
744,576
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on
the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of
the reporting period in the countries where the Company’s subsidiaries and associated entities operate and generate
taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the deferred
income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a
business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting
date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability
is settled.
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
7. INCOME TAX (continued)
(a) Income tax expense/(benefit)
Current tax
Deferred tax
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Loss from continuing operations before income tax expense
Loss from discontinued operations before income tax expense
Accounting loss before income tax
Prima facie tax benefit at the Australian tax rate of 30% (2019: 30%)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Share based payments
Unrealised foreign exchange gain/(loss)
Other
Tax effect of current year tax losses and timing differences for which no
deferred tax asset has been recognised
Income tax benefit
(c) Tax affect relating to each component of other comprehensive income
Financial assets
(d) Deferred tax assets
Capital raising costs
Rehabilitation provision
Other provisions and accruals
Tax losses in Australia
Financial assets at FVOCI
Deferred tax assets not recognised
Offset against deferred tax liabilities
Net deferred tax assets
(e) Deferred tax liabilities
2021
$
2020
$
-
-
-
(2,105,959)
-
(2,105,959)
(631,788)
23,376
5,849
(224,734)
-
-
-
(3,395,173)
(2,274,543)
(5,669,716)
(1,700,915)
112,215
9,118
(110,078)
827,297
1,689,660
-
-
145,930
145,930
173,250
530,424
101,294
(20,365)
(20,365)
173,250
521,902
57,637
35,098,926
34,329,651
145,930
-
36,049,824
35,082,440
(33,787,055)
(33,158,777)
2,262,769
(2,262,769)
-
1,923,663
(1,923,663)
-
Capitalised exploration and evaluation costs and development costs
(2,253,377)
(1,903,298)
Financial assets at FVOCI
Other accruals
Offset against deferred tax assets
Net deferred tax liabilities
-
(9,392)
(2,262,769)
2,262,769
-
(20,365)
-
(1,923,663)
1,923,663
-
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
7. INCOME TAX (continued)
DEFFERED TAX
Potential deferred tax assets attributable to tax losses and exploration expenditure carried forward have not been brought
to account at 30 June 2021 because the directors do not believe it is appropriate to regard realisation of the deferred tax
assets as probable at this point in time. These benefits will only be obtained if:
(i) The Company derives future assessable income of a nature and of an amount sufficient to enable the benefit from
the deductions for the loss and exploration expenditure to be realised;
(ii) The Company continues to comply with conditions for deductibility imposed by law; and
(iii) No changes in tax legislation adversely affect the Company in realising the benefit from the deductions for the loss
and exploration expenditure.
TAX CONSOLIDATION
Avenira Limited and its 100% owned Australian resident subsidiaries are part of a tax consolidated group. As a
consequence, all members of the tax consolidated group are taxed as a single entity. Avenira Limited is the head entity
of the tax consolidated group. Members of the tax consolidated group have entered into a tax sharing agreement that
provides for the allocation of income tax liabilities between the entities should the head entity default on its payment
obligations. No amounts have been recognised in the financial statements in respect of this agreement on the basis
that the possibility of default is remote.
8. CASH AND CASH EQUIVALENTS
Accounting Policies
For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at
call with financial institutions, other short-term highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value, and
bank overdrafts.
Cash at bank and in hand (continuing operations)
Short-term deposits
Cash and cash equivalents
2021
$
3,123,043
-
2020
$
488,337
800,000
3,123,043
1,288,337
Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates.
Short term deposits are made for varying periods of between one day and three months depending on the immediate
cash requirements of the Group and earn interest at the respective short-term deposit rates. Refer to Note 18 for
additional details on the impact of interest rates on cash and cash equivalents for the period.
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
9. TRADE AND OTHER RECEIVABLES
Accounting Policies
Recognition and measurement
Trade receivables are initially recognised at fair value and subsequently at amortised cost less a provision for any
expected credit losses. Trade receivables are due for settlement no more than 30 days from the date of recognition.
Impairment
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms.
For trade receivables and other receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each
reporting date. The Group concluded that the lifetime ECL for these assets would be negligible and therefore no
additional loss allowance was required.
Current
Trade and other receivables(i)
Government taxes receivable(ii)
Prepayments (iii)
Security deposits
2021
$
2,989
48,429
48,124
29,667
129,209
2020
$
3,627
75,845
-
29,667
109,139
(i) Trade and other receivables are generally due for settlement within 30 days and therefore classified as current.
(ii) Government taxes receivable in 2021 relates to GST receivable in Australia.
(iii) Prepayments include payments made in relation to D&O insurance paid for the period 01/07/2021 – 30/03/2022.
The carrying amounts disclosed above represent their fair value.
Non-Current
Security deposits (i)
(i) Security Deposit for Wonarah tenements in the Northern Territory
10. LEASES
Accounting Policies
(i)
Right-of-use assets
2021
$
2020
$
1,481,600
1,481,600
1,481,600
1,481,600
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is
available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,
and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less
any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end
of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its
estimated useful life and the lease term. Right-of-use assets are subject to impairment.
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
10. LEASES (continued)
(ii)
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts
expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease
term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index
or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease
commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date,
the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a
change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
(iii)
Leases - Estimating the incremental borrowing rate
When the Group cannot readily determine the interest rate implicit in the lease, it uses its incremental borrowing rate
(IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar
term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a
similar economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires estimation
when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when
they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the
subsidiary’s functional currency). The Group estimates the IBR using observable inputs (such as market interest rates)
when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit
rating).
(iv)
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases (i.e., leases that have a lease term
of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of
low-value assets recognition exemption to leases that are considered of low value. Lease payments on short-term leases
and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
Right-to-use assets recognised and movements during the year
Opening net carrying amount
Additions
Depreciation expense
Transfer to discontinued operations
Net carrying amount
Lease liabilities and movements during the year
Opening net carrying amount
Additions
Interest expense
Payments
Adjustments to prior period
Transfer to discontinued operations
Closing net carrying amount
Current
Non-current
2021
$
84,348
-
(35,548)
2020
$
1,887,602
104,599
(20,251)
-
(1,887,602)
48,800
84,348
2021
$
91,802
-
4,515
(40,000)
(1,428)
2020
$
1,887,602
104,599
3,611
(16,408)
-
-
(1,887,602)
54,889
38,148
16,741
91,802
35,816
55,986
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
11. DISCONTINUED OPERATIONS
Accounting Policy
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered
principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified
as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance
costs and income tax expense. The criteria for held for sale classification is regarded as met only when the sale is highly
probable and the asset or disposal group is available for immediate sale in its present condition. Actions required to
complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to
sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed
within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial
position.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or
is classified as held for sale, and:
Represents a separate major line of business or geographical area of operations
Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations
Sale of Baobab Phosphate Project
On 1 July 2019 Avenira announced that it proposed to sell its interests in the Baobab Phosphate Project and Novaphos to
a consortium of its major shareholders (the Purchasers) in return for cash consideration and essential funding support (the
‘Transaction’).
The Baobab Phosphate Project represented the entirety of the Group’s Baobab (Senegal) operating segment until 14
October 2019. With Baobab Phosphate Project being classified as a discontinued operation, the Baobab (Senegal)
segment is no longer presented in the segment note. The results of the Baobab Phosphate Project and Novaphos for the
period as presented below:
Other income
Administration expenses
Salaries and employee benefits
Depreciation
Impairment of Doubtful debts
Impairment of financial assets
Other operating expenses
Impairment
FX Movements
Profit/(loss) before tax from discontinued operation
Tax benefit:
Loss for the year from discontinued operations
Loss on sale of the discontinued operations
Profit/(loss) for the period from discontinued operations
Loss for the period is attributable to:
Owners of Avenira Limited
Non-controlling interest
Profit/(loss) for the period from discontinued operations
*Represents the level of activity prior to the sale on 22 October 2019
2021
$
2020*
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,561
(411,690)
(132,048)
(116,719)
-
-
(343,958)
-
54,041
(946,813)
-
(946,813)
(1,327,730)
(2,274,543)
(1,917,415)
(357,128)
(2,274,543)
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
11. DISCONTINUED OPERATIONS (continued)
Consideration received from sale of Baobab Project
Cash Received (U$3,000,000)
Shares returned (617,873,316 shares @ $0.008)
Loans Forgiven
Directors Fees Forgiven
Total Consideration
Net cash flows generated from the sale of Baobab Project are
Cash Received (U$3,000,000)
Cash sold as part of discontinued operations
Total Consideration
The net cash flows from the discontinued operation are as follows:
Operating
Investing
Financing
Net cash (outflow) / inflow
Earnings per share
Basic profit / (loss) for the year from discontinued operations (cps)
Diluted profit / (loss) for the year from discontinued operations (cps)
2021
$
-
-
-
-
-
-
2020
$
A$
4,369,356
4,942,987
1,389,284
408,452
11,110,079
2020
$
4,369,356
(85,122)
4,284,234
2020
$
(1,154,281)
(1,132,017)
2,349,565
63,267
(0.36)
(0.36)
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
11. DISCONTINUED OPERATIONS (continued)
The Baobab Phosphate Project Sale was completed on 22 October 2019 and under the agreement Avenira agreed to sell
or assign all its rights and interests in the following assets to a consortium of its major shareholders (the Purchasers):
• Baobab Fertilizer Africa (BFA) (the wholly owned subsidiary which held Avenira’s interests in the Baobab
Phosphate Project) and the associated Baobab Intellectual Property and Other Information;
• Novaphos (other than the existing Australian Licence Agreement as outlined below); and
•
The intercompany loan between Avenira and BMCC; and the intercompany loan between Avenira and BFA.
Under the Transaction:
• Avenira received cash consideration of US$3.0M (A$4.4M), and loan and director fees forgiveness of US$1.2M
(A$1.8M), for a total consideration value of US$4.2M (A$6.2M), using a A$:US$ 0.6866 exchange rate.
• Avenira undertook, for nil consideration, a buy-back and capital reduction of all the existing shares held by the
major shareholders.
The transaction also resulted in the Purchasers taking on responsibility for the outcome of current Senegalese tax audits
of BMCC and Gadde Bissik Phosphate Operations SUARL (its operating subsidiary).
Whilst Avenira has sold its interests in Novaphos (including the licence agreement to use the Novaphos technology in
Senegal), Avenira retains an exclusive licence to use the Novaphos technology in Australia.
On 1 July 2019 the Group recognised a right of use asset and lease liability of A$1,887,602 for the 25-year lease on a port
facility relating to the Baobab Project. As the Baobab project was sold prior to 30 June 2020, the assets and liabilities
classified as held for sale are no longer included in the statement of financial position.
Pursuant to the sale agreement, Avenira must indemnify and keep indemnified Tablo Corporation, Baobab Partners LLC
and Agrifields DMCC in respect of any undisclosed tax liabilities of BFA, BMCC or GBO that were due and payable and
not been paid before the sale. This amount is capped at US$500,000 in aggregate and expires in October 2020.
49
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
12. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE
Accounting Policies – Capitalised Exploration and Evaluation Expenditure
Exploration and evaluation costs for each area of interest that has progressed to pre-feasibility are accumulated and
carried forward where right of tenure of the area of interest is current and they are expected to be recouped through sale
or successful development and exploitation of the area of interest or, where exploration and evaluation activities in the
area of interest have not at the end of the reporting period reached a stage that permits reasonable assessment of the
existence of economically recoverable reserves, and activates and significant operations in, or in relation to, the area of
interest are continuing.
When an area of interest is abandoned or the directors decide that it is not commercial, any accumulated costs in respect to
that area are written off in the financial period the decision is made. Each area of interest is also reviewed at the end of
each accounting period and accumulated costs written off to the extent that they will not be recoverable in the future.
Reconciliation of movements of exploration and evaluation costs in respect of mining areas of interest
2021
$
2020
$
Opening net carrying amount
Capitalised exploration and evaluation costs
Increase to rehabilitation provision
Impairment of exploration and evaluation expenditure
Closing net carrying amount
(i)
Closing net carrying amount represented by the following projects
Jundee South Project
Wonarah Phosphate Project
Closing net carrying amount
6,344,326
1,231,448
28,407
(92,924)
7,511,257
5,889,800
601,312
450,174
(596,960)
6,344,326
2021
$
2020
$
1,621,457
5,889,800
7,511,257
454,526
5,889,800
6,344,326
The ultimate recoupment of costs carried forward for exploration and evaluation is dependent on the successful
development and commercial exploitation or sale of the respective mining areas.
(i)
Impairment recognized in respect of the Wonarah Project. Refer to the key estimates and assumptions section below for details regarding the
Group’s assessment of the carrying value of recognised exploration and evaluation expenditure.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
12. CAPITALISED EXPLORATION AND EVALUATION EXPENDITURE (continued)
Key estimates and assumptions
The application of the Group’s accounting policy requires management to make certain estimates and assumptions as to
future events and circumstances, in particular, the assessment of whether economic quantities of reserves will be found.
Any such estimates and assumptions may change as new information becomes available, which may require adjustments
to the carrying value of assets.
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may lead to
impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
SRK Consulting conducted an update to the valuation of the Wonarah Project as at 30 June 2021. In SRK’s opinion, the
valuation of the Wonarah Project has not materially changed since the effective date of the 2019 SRK Report. As such
the valuation summary outlined in the 2019 SRK Report and the 2019 Report Update is effective as at 30 June 2021.
The 2019 report revealed fair values for the Wonarah Project ranging from $6,010,000 to $16,020,000, based on a range
of resource multiples derived from recent transactions and enterprise values of market participants with defined
phosphate mineral resources (level 3 in the fair value hierarchy).
The directors consider that the low end of the independent expert’s range is most representative of the fair value less
costs of disposal of the Wonarah Project. As a result, during the reporting period an amount of $92,924 (30 June 2020:
$596,960) was impaired and recognised in the Statement of Profit or Loss and Other Comprehensive Income. The
recoverable amount is calculated as $5,889,800 after allowing for estimated costs of disposal.
13. TRADE AND OTHER PAYABLES
Accounting Policies
Recognition and measurement
Liabilities for trade creditors and other amounts are carried at amortised cost, which is the amount initially recognised,
minus repayments whether or not billed to the consolidated entity.
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
which are unpaid. The amounts are unsecured, non-interest bearing and are paid on normal commercial terms.
Trade payables(i)
Other payables and accruals
(i)
Trade payables are non-interest bearing and generally on 30-day terms.
The carrying amounts disclosed above represent their fair value.
14. PROVISIONS
Accounting Policies
(i) Wages and salaries and annual leave
2021
$
228,086
299,200
527,286
2020
$
194,793
166,230
361,023
Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12
months of the reporting date are recognised in provisions in respect of employees’ services up to the reporting date and
are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Long service leave
The Group does not expect its long service leave benefits to be settled wholly within 12 months of each reporting date.
The Group recognised a liability for long service leave measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wages and salary levels, experience of employee departures, and periods of
service. Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity and currencies that match, as closely as possible the estimated future cash outflows.
51
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
14. PROVISIONS (continued)
(iii) Mine rehabilitation and restoration
The Group records the present value of the estimated cost of legal and constructive obligations to restore operating
locations in the period in which the obligation arises. The nature of restoration activities includes the dismantling and
removing of structures, rehabilitating mines, dismantling operating facilities, closure of plant and waste sites and
restoration, reclamation and revegetation of affected areas.
Typically, the obligation arises when the asset is installed or the ground/environment is disturbed at the production location.
When the liability is initially recorded, the estimated cost is recognised by increasing the carrying amount of the related
mining asset. Over time, the liability is increased for the change in the present value based on a discount rate appropriate
to the market assessments and the risks inherent in the liability. Additional disturbances or changes in rehabilitation costs
will be recognised as additions or changes to the corresponding asset and rehabilitation liability when incurred. The
unwinding of the effect of discounting the provision is recorded as a finance cost in the statement of comprehensive
income. The recognized carrying amount is depreciated over the useful life of the related asset.
Costs incurred that relate to an existing condition caused by past operations, and do not have future economic benefit, are
expensed as incurred.
Current
Employment benefits
Non-Current
Mine rehabilitation and restoration(i)
Movements in mine rehabilitation and restoration provision
Opening net carrying amount
(Decrease)/increase in provision
(Decrease)/increase from change in discount and inflation rate
Closing net carrying amount
2021
$
43,404
43,404
2020
$
6,415
6,415
2021
$
2020
$
1,768,081
1,768,081
1,739,674
1,739,674
1,739,674
1,289,500
-
28,407
344,196
105,978
1,768,081
1,739,674
(i) Provision for future removal and restoration costs are recognised where there is a present obligation as a result of exploration, development, production,
transportation or storage activities having been undertaken, and it is probable that an outflow of economic benefits will be required to settle the obligation.
The provision includes the restoration costs based on the estimated future costs as assessed independently by the Northern Territory Government
Department of Regional Development, Primary Industry, Fisheries and Resources. The estimated future obligations include the costs of removing plant,
abandoning mine site and restoring the affected areas.
Key estimates and assumptions
The Group assesses its mine rehabilitation provision half yearly in accordance with the above accounting policy. Significant
judgment is required in determining the provision for mine rehabilitation as there are many transactions and other factors
that will affect the ultimate liability payable to rehabilitate the mine sites. Factors that will affect this liability include future
disturbances caused by further development, changes in technology, changes in regulations, price increases and changes
in discount rates. When these factors change, or become known in the future, such differences will impact the mine
rehabilitation provision in the period in which they change or become known. As at 30 June 2021 the rehabilitation
obligation has a carrying value of $1,768,081 (2020: $1,739,674) for the Wonarah Phosphate Project.
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
15. LOANS AND BORROWINGS
Accounting Policies
Borrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least
12 months after the reporting date.
Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost. Any
differences between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over
the period of the borrowings using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds.
Non-Current
Loan Facility - secured
Total non-current loans and borrowings
Loan Facility
INTEREST
RATE
%
8%
2021
$
2,480,000
2,480,000
2020
$
-
-
In June 2020 the Company received shareholder approval to enter into a $3 million secured loan facility with Au Xingao
Investment Pty Ltd, a substantial shareholder of the Company.
The loan was drawn down to $2,480,000 at the end of the 2021 financial year.
The material terms of the Loan Facility are as follows:
Loan Amount
$3,000,000.
Interest
Security
Termination and repayment
Conversion
Prepayment
8% per annum. Accrued interest will be capitalised (if not paid) every 6 months.
The Loan Facility will be secured by a mining mortgage over the Company's
Wonarah Project and a general security deed over specified listed securities
held by the Company.
The Company must repay the Loan Amount and all other amounts outstanding
(including all capitalised interest and accrued uncapitalised interest) after 3
years form the date of signing the loan agreement ('Repayment Date'), unless
the Lender elects to convert earlier.
After 18 months, the Lender may elect to convert the Loan Amount into
ordinary shares in the Company based on the 30 day VWAP of the Company's
shares prior to the conversion date.
The Company may prepay the Loan Amount at any time prior to the
Repayment Date.
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
16. ISSUED CAPITAL
Accounting Policies
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. Incremental costs directly attributable to the issue of new shares or options for the acquisition
of a business are not included in the cost of the acquisition as part of the purchase consideration.
(a) Share capital
Ordinary shares fully paid
Total share capital
NOTES
NUMBER OF
SHARES
$
NUMBER OF
SHARES
$
2021
2020
16(b),
16(e)
862,852,818
140,516,513
440,754,926
137,337,162
862,852,818
140,516,513
440,754,926
137,337,162
(b) Movements in ordinary share capital
Beginning of the financial year
Transactions during the year:
- Shares cancelled (i)
- Issue of shares @ $0.008
- Issue of shares @ $0.008
- Issue of shares @ $0.008
- Issue of shares @ $0.008
- Issue of shares @ $0.008
- Issue of shares @ $0.008
Less transaction costs
End of the financial year
440,754,926
137,337,162
1,058,628,242
142,280,148
-
-
(617,873,316)
(4,942,987)
66,113,238
74,966,928
69,850,964
528,906
599,735
558,808
136,878,660
1,095,029
48,900,070
25,388,032
-
862,852,818
391,201
203,104
(197,432)
140,516,513
440,754,926
137,337,162
(i) Shares returned as part of the consideration received from the sale of the Baobab Project. Refer to Note 11 for further details.
(c) Movements in unlisted options on issue
Beginning of the financial year
Expired/cancelled during the financial year
Issued during the financial year
- 2 cent options, 30 November 2022
- 3 cent options, 30 November 2022
- 2.5 cent options, 7 September 2023 (i)
- 3.5 cent options, 7 September 2023 (i)
End of the financial year
NUMBER OF OPTIONS
2021
2020
48,000,000
80,000,000
-
-
-
(80,000,000)
24,000,000
24,000,000
6,000,000
6,000,000
60,000,000
48,000,000
(i) Options issued to Taylor Collison Sharebrokers and Investment Advisers subsequent to the shareholder approval. The Group recognised $77,919 of
share-based payment expense in the statement of profit or loss.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
16. ISSUED CAPITAL (continued)
(e) Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion
to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote,
and upon a poll each share is entitled to one vote.
Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.
(f) Capital risk management
The Group’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they
may continue to provide returns for shareholders and benefits for other stakeholders. There has been no change in the
strategy adopted by management to control the capital of the Group since the prior year.
Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit
facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk
management is the current working capital position against the requirements of the Group to support exploration
programmes, development and production start-up phases of its exploration projects and corporate overheads. The
Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view
to initiating appropriate funding as required.
The working capital position of the Group at the end of the year is as follows:
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Lease Liability
Current provisions
Amounts received in advance from sale of financial assets
2021
$
3,123,043
129,209
(527,286)
(38,148)
(43,404)
(31,306)
2020
$
1,288,337
109,139
(361,023)
(35,816)
(6,415)
-
Working capital position
2,612,108
994,222
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
17. RESERVES AND ACCUMULATED LOSSES
(a) Reserves
Financial assets at fair value through OCI
Foreign currency translation
Share-based payments
Non-controlling interest reserve (i)
Total reserves
2021
$
2020
$
486,432
128,765
67,882
128,765
17,675,348
17,597,429
-
7,465,464
18,290,545
25,259,540
(i) As the Group no longer has any non-controlling interests, the NCI reserve has been derecognised and transferred to accumulated losses.
Movements:
Fair Value Reserve of Financial Assets at FVOCI
Balance at beginning of year
Revaluation
Balance at end of year
Foreign currency translation reserve
Balance at beginning of year
Recycled to the profit and loss on derecognition of controlled entity
Currency translation differences arising during the year
Balance at end of year
Share-based payments reserve
Balance at beginning of year
Performance rights and share rights
Other share-based payments(i)
Share rights converted to ordinary shares
Balance at end of year
Non-controlling interest reserve
Balance at beginning of year
Parent equity adjustment for NCI consideration
Balance at end of year
(i) Refer to Note 28 Share Based Payments for further details.
2021
$
2020
$
67,882
418,550
486,432
-
67,882
67,882
128,765
2,325,644
-
-
128,765
(2,332,312)
135,433
128,765
17,597,429
17,223,379
-
-
77,919
374,051
-
-
17,675,348
17,597,429
7,465,464
7,465,464
(7,465,464)
-
-
7,465,464
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
17. RESERVES AND ACCUMULATED LOSSES (continued)
(b) Accumulated losses
Balance at beginning of year
Net loss for the year attributable to owners of Avenira Limited
NCI reserve transfer
Balance at end of year
(c) Nature and purpose of reserves
2021
$
2020
$
(155,059,077)
(149,389,359)
(2,105,959)
(5,669,716)
7,465,463
-
(149,699,572)
(155,059,077)
(i) Fair Value Reserve of Financial Assets at FVOCI
Changes in the fair value of investments, such as equities classified as Fair value reserve of financial assets at FVOCI,
are recognised in other comprehensive income and accumulated in a separate reserve within equity. Amounts are
reclassified to profit or loss when the associated assets are sold or impaired.
(ii) Foreign currency translation reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the translation of
foreign operations where their functional currency is different to the presentation currency of the reporting entity. The
reserve is recognised in profit and loss when the net assets of foreign controlled entities are disposed of.
(iii) Share-based payments reserve
The share-based payments reserve is used to recognise the fair value of options, contingent share rights and
performance rights granted.
(iv) Non-controlling interest reserve
The non-controlling interest’s reserve records the difference between the fair value of the amount by which the non-
controlling interest was adjusted to record their initial relative interest and the consideration paid.
18. FINANCIAL RISK MANAGEMENT
Accounting Policies
Financial Assets
The Group classifies its financial assets in the following categories: at fair value through profit or loss (FVTPL), financial
assets at amortised cost, or fair value through other comprehensive income (FVOCI). The classification is based on two
criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows
represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’). The SPPI
test is applied to the entire financial asset, even if it contains an embedded derivative. Consequently, a derivative
embedded in a debt instrument is not accounted for separately.
(i) Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently at amortised cost less a provision for any
expected credit losses. Trade receivables are due for settlement no more than 30 days from the date of recognition.
(ii) Financial assets measured at fair value through other comprehensive income
These financial assets consist of investments in ordinary shares, comprising principally of marketable equity securities.
Investments are initially recognised at fair value plus transaction costs. Unrealised gains and losses arising from changes
in the fair value of these investments are recognised in equity in the financial assets revaluation reserve. Amounts
recognised are not recycled to the statement of comprehensive income in future periods.
The fair value of the listed securities are based on quoted market prices and accordingly is a Level 1 measurement basis
on the fair value hierarchy.
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT (continued)
Impairment of financial assets
Expected credit losses are recognised in the statement of profit and loss and other comprehensive income on financial
assets measured at amortised cost.
Financial Liabilities
The Group classifies its financial liabilities in the following categories: financial liabilities at amortised cost.
(i) Payables
This category generally applies to trade and other payables. Liabilities for trade creditors and other amounts are carried
at amortised cost which is the amount initially recognised. Minus repayments whether or not billed to the Group. Payables
are non-interest bearing and generally settled on 30-90 day terms. Due to the short term nature of these payables, their
carrying value is assumed to approximate their fair value. For more information refer to Note 13.
(ii) Loans and borrowings
This category generally applies to interest-bearing loans and borrowings. All loans and borrowings are initially recognised
at fair value less transaction costs and subsequently at amortised cost. Any difference between the proceeds received
and the redemption amount is recognised in the income statement over the period of the borrowings using the effective
interest method. For more information refer to Note 15.
FINANCIAL RISK MANAGEMENT POLICIES
The Group’s principal financial liabilities, other than derivatives, comprise loans and borrowings, and trade and other
payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal
financial assets include trade receivables, and cash and short-term deposits that derive directly from its operations. The
Group also holds investments in debt and equity instruments and enters into derivative transactions.
The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the
management of these risks. The Group’s senior management is supported by a financial risk committee that advises on
financial risks and the appropriate financial risk governance framework for the Group. The financial risk committee
provides assurance to the Group’s senior management that the Group’s financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with
the Group’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist
teams that have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives
for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of
these risks, which are summarised below.
Financial instruments
The Group holds the following financial instruments:
Financial assets
Cash and cash equivalents
Trade and other receivables
Other non-current receivables
Fair value reserve of financial assets at FVOCI
- Listed investments
- Unlisted investments
2021
$
2020
$
3,123,043
129,209
1,481,600
1,633,543
85,000
6,452,395
1,288,337
109,139
1,481,600
424,993
10,000
3,314,069
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT (continued)
Financial liabilities
Trade and other payables
Lease liabilities - current
Lease liabilities – non-current
Loans and borrowings
(a) Market risk
2021
$
2020
$
527,286
38,148
16,741
2,480,000
3,062,175
361,023
35,816
55,986
-
452,825
Market risk arises from Avenira’s exposure to interest bearing financial assets and foreign currency financial instruments.
It is a risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in foreign
exchange rates (currency risk), interest rates (interest rate risk) and share prices (price risk). The Group has determined
the impact of reasonably possible movements in foreign exchange and share prices is not material.
(i)
Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. As at and during the year ended 30 June 2021, the Group had interest-bearing assets in the form of
cash and cash equivalents. As such the Group’s income and operating cash flows are somewhat exposed to movements in
market interest rates due to the movements in variable interest rates on cash and cash equivalents. The Group’s does not
have exposure to interest rate risk arising from its financial liabilities.
The Group’s policy is to monitor the interest rate yield curve out to six months to ensure a balance is maintained between
the liquidity of cash assets and the interest rate return. At 30 June 2021, the entire balance of cash and cash equivalents
for the Group of $3,123,043 (2020: $1,288,337) is subject to interest rate risk. The proportional mix of floating interest rates
and fixed rates, to a maximum of six months, fluctuate during the year depending on current working capital requirements.
(b) Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments
Credit risk related to balances with banks and other financial institutions is managed by investing surplus funds in financial
institutions that maintain a high credit rating. The maximum exposure to credit risk at the reporting date is the carrying amount
of the assets as summarised below, none of which are impaired or past due.
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT (continued)
Financial assets
Cash and cash equivalents
Trade and other receivables
Other non-current receivables
2021
$
2020
$
3,123,043
129,209
1,481,600
4,733,852
1,288,337
109,139
1,481,600
2,879,076
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit
ratings (if available) or to historical information about counterparty default rates.
Cash at bank and short-term bank deposits
Held with Australian banks and financial institutions
AA3 rated
3,123,043
1,288,337
2021
$
2020
$
Held with South African banks and financial institutions
BBB rated
Trade and other receivables
Held with Australian banks and financial institutions
AA- rated
AA3 rated
Counterparties with external credit ratings
Counterparties without external credit ratings
Group 1
Group 2
Other non-current receivables
Held with Australian banks and financial institutions
AA- rated
-
-
3,123,043
1,288,337
-
29,667
-
99,542
-
129,209
-
29,667
-
79,472
-
109,139
1,481,600
1,481,600
1,481,600
1,481,600
(c) Liquidity risk
The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash
and/or funding facilities are available to meet the current and future commitments of the Group. The Board of Directors
constantly monitors the state of equity markets in conjunction with the Group’s current and future funding requirements, with
a view to initiating capital raisings as required.
The financial liabilities of the Group consist of trade and other payables and lease liabilities as disclosed in the statement of
financial position. All trade and other payables are non-interest bearing and due within 12 months of the reporting date.
The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT (continued)
Contractual maturities of financial liabilities
LESS THAN
1 MONTH
1-3
MONTHS
3 MONTHS -
1 YEAR
$
$
$
1-5
YEARS
$
5+ YEARS
TOTAL
$
$
2021
Trade and other payables
Lease Liabilities
Loans and borrowings
2020
Trade and other payables
Lease Liabilities
(d) Net fair value
Fair value estimation
228,086
299,200
-
-
-
-
10,796
31,986
17,259
-
- 2,480,000
228,086
309,996
31,986 2,497,259
194,792
166,231
-
11,367
194,792
177,598
-
33,751
33,751
-
61,246
61,246
-
-
-
-
-
-
-
527,286
60,041
2,480,000
3,067,327
361,023
106,364
467,387
The fair value of financial assets and financial liabilities held by the Group must be estimated for recognition and
measurement or for disclosure purposes. All financial assets and financial liabilities of the Group at the balance date are
recorded at amounts approximating their fair value.
The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. The
quoted market price used for financial assets held by the Group is the current bid price.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair
values due to their short-term nature.
The totals for each category of financial instruments, other than those with carrying amounts which are reasonable
approximations of fair value, are set out below:
CARRYING AMOUNT
FAIR VALUE
2021
$
2020
$
2021
$
2020
$
Financial assets
Fair value of financial assets through OCI
Total financial assets
1,718,543
1,718,543
424,993
424,993
1,718,543
1,718,543
424,993
424,993
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT (continued)
Financial instruments measured at fair value
The financial instruments recognised at fair value in the statement of financial position have been analysed and classified
using a fair value hierarchy reflecting the significance of the inputs used in the making the measurements. The fair value
hierarchy consists of the following levels:
•
•
quoted prices in active markets for identical assets or liabilities (Level 1).
inputs other than quoted process included within Level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices) (Level 2).
•
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
$
$
$
$
2021
Financial assets
Fair value of financial assets through OCI –
listed
Fair value of financial assets through OCI–
unlisted
2020
Financial assets
Fair value of financial assets through OCI –
listed
Fair value of financial assets through OCI–
unlisted
1,633,543
-
1,633,543
414,993
-
414,993
-
-
-
-
-
-
-
1,633,543
85,000
85,000
85,000
1,718,543
-
414,993
10,000
10,000
10,000
424,993
(e) Capital risk management
For the purposes of the Group’s capital management, capital includes issued capital and all other equity reserves attributable
to the equity holders of the parent, which at 30 June 2021 was $9,107,486 (30 June 2020: $7,537,625). The primary
objective of the Group’s capital management is to maximise the shareholder value.
Key estimates and assumptions
As described in the accounting policy above, the Group uses valuation techniques that include inputs that are not based on
observable market data to estimate the fair value of certain types of financial instruments. Key assumptions used in the
determination of the fair value of financial instruments, as well as the detailed sensitivity analysis for these assumptions are
set out above.
The directors believe that the chosen valuation techniques and assumptions used are appropriate in determining the fair
value of financial instruments.
The Group assesses at each reporting date whether there is objective evidence that an investment or a group of investments
is impaired. In the case of equity investments classified as FVOCI, objective evidence would include a significant or
prolonged decline in the fair value of the investment below its cost. The determination of what is “significant” or “prolonged”
requires judgement. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period
in which the fair value has been below its original cost.
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
19. REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related
practices and non-related audit firms:
The auditor of Avenira Limited is Hall Chadwick WA Audit (2020: Ernst and Young Australia).
Auditor remuneration
Fees to Ernst & Young (Australia)
Auditing the statutory financial report of the parent covering the group
and any controlled entities
Assurance services that are required by legislation to be provided by
the auditor
Other Assurance and agreed-upon-procedure services under other
legislation or contractual arrangements where there is discretion as to
whether the service is provided by the auditor or another firm
Other Services
Tax Compliance
Total fees to Ernst & Young (Australia) (A)
Fees to Hall Chadwick WA
Auditing the statutory financial report of the parent covering the group
and any controlled entities
Assurance services that are required by legislation to be provided by
the auditor
Other Assurance and agreed-upon-procedure services under other
legislation or contractual arrangements where there is discretion as to
whether the service is provided by the auditor or another firm
Other Services
Tax Compliance
Total fees to Hall Chadwick WA (B)
Total Auditor Remuneration (A+B)
2021
$
2020
$
1,788
92,410
-
-
-
9,038
28,000
29,788
14,000
115,448
33,552
-
-
-
33,552
63,340
-
-
-
-
-
-
115,448
From time to time the Group may decide to employ the external auditor on assignments additional to their statutory audit
duties where the auditor’s expertise and experience with the Group is important.
The Board has considered the position and is satisfied that the provision of non-audit services is compatible with the general
standard of independence imposed by the Corporations Act 2001.The nature of services provided to the Group during the
period by Hall Chadwick and other practices do not compromise the general principles relating to auditor independence
because they relate to tax advice in relation to domestic and international compliance issues, and due diligence services
which involved the provision of assurances arising from their engagement.
20. CONTINGENCIES
In relation to tenement acquisition agreements entered into by the Group, the following additional cash may be received
dependent on future events:
TNT Mines Royalty Deed
The parent entity will receive a royalty on a quarterly basis on all product sold, removed or otherwise disposed from all
tenements held by TNT Mines. The royalty is calculated at 1.5% of the net smelter return and the total amount receivable is
capped at $5,000,000. In December 2019, A Deed of Assignment and Assumption was signed with TNT Mines Limited
assigning and to TinOne Resources Corporation assuming the obligations of the Principal Agreement (Tenement Sale
Agreement).
The Directors are of the opinion that it is not practicable to estimate the financial effect at the date of this report.
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
21. COMMITMENTS
The Group has certain commitments to meet minimum expenditure requirements on the mineral exploration assets for the
Wonarah project and Jundee South project areas that it has an interest in. Outstanding exploration commitments are as
follows:
(a) Exploration commitments
Within one year
Later than one year but no later than five years
Later than five years
2021
$
2020
$
357,884
983,562
-
398,609
994,596
64,832
1,341,446
1,458,037
The Group has an office lease contract as at 30 June 2021. The future lease payments for this non-cancellable lease
contract is $40,465 (2020: $40,467), later than one year but no later than five $17,000 (2020: $58,616).
22. DIVIDENDS
No dividends were paid during the financial year. No recommendation for payment of dividends has been made.
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
23. RELATED PARTY TRANSACTIONS
(a) Parent entity
The ultimate parent entity within the Group is Avenira Limited. The consolidated entity has a related party relationship with its
subsidiaries (see Note 24) and with its key management personnel.
(b) Subsidiaries
Interests in subsidiaries are set out in Note 24.
(c) Compensation of key management personnel
Short-term benefits
Long-term benefits
Post-employment benefits
Termination payments
Share-based payments
(d) Transactions with key management personnel
Other directors’ interest (i)
2021
2020
$
485,688
-
37,430
-
-
$
813,419
-
16,932
146,207
374,051
523,118
1,350,609
2021
$
-
-
2020
$
122,550
122,550
(i)
In addition to his Executive Chairman fee, Mr. Clark was engaged to provide the Company strategic advisory services on a consulting basis during
the 2020 financial year. Total consultancy fees of $117,125 were charged by Mr. Clark during the year. The agreement had no fixed term and no
termination notice period however ceased once appointed Executive Chairman and CEO 5 December 2019. A further $5,425 was also paid to Mr.
Clark for fees relating to an interim office lease from the period 1 September to 30 November 2019. The total amount of fees is included in his Salary
& Fees amount in the Details of Remuneration of KMP table on page 23. At 30 June 2020, advisory and lease fees paid to Mr. Clark impacted the
Statement of Profit and Loss and Other Comprehensive Income with $122,550 recognised in Administrative and Other Expenses.
(e)
Loans from key management personnel
The Group received no loans from KMP or their related parties during the 2021 financial year (2020: Nil):
2020
LENDER
BALANCE AT
START OF THE
YEAR
LOAN
PROCEEDS
RECEIVED
INTEREST
CHARGED
FORGIVEN
DURING
THE YEAR
$
$
$
$
FX
IMPACT
$
BALANCE
AT END OF
THE YEAR
HIGHEST
BALANCE DURING
THE YEAR
$
$
Agrifos Partners LLC(i)
366,436
-
11,754
(386,250)
8,060
-
386,250
(i) Agrifos Partners LLC is a company related through the common control of former director Mr. Timothy Cotton
On 27 September 2019, the Company obtain an extension to the maturity of the Shareholder Loans, extending the maturity
date to 21 October 2019. The loan was forgiven as part of the consideration in the Baobab Transaction Sale. Refer to Note
11 for details.
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
24. SUBSIDIARIES
Accounting policies
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 2:
SUBSIDIARIES
COUNTRY OF
INCORPORATION
CLASS OF
SHARES
Minemakers Australia Pty Ltd
Bonaparte Diamond Mines Pty Ltd
Avenira Gold Pty Ltd
Avenira Holdings LLC (ii)
Australia
Australia
Australia
USA
Ordinary
Ordinary
Ordinary
Ordinary
(i) The proportion of ownership interest is equal to the proportion of voting power held.
(ii) The company’s equity represented by an initial capital contribution by Avenira as the sole member.
EQUITY HOLDING(i)
2021
%
100
100
100
100
2020
%
100
100
100
100
25. EVENTS OCCURING AFTER THE BALANCE DATE
No event has occurred since 30 June 2021 that would materially affect the operations of the Group, the results of the Group or
the state of affairs of the Group not otherwise disclosed in the Group’s financial statements.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
26. STATEMENT OF CASHFLOWS
Reconciliation of net loss after income tax to net cash outflow from operating activities
2021
$
2020
$
Net loss from continuing operations
Net loss from discontinuing operations
Adjustment for non-cash items
Depreciation of plant and equipment
Share based payment expense
Net foreign currency loss/(gain)
Impairment of exploration and evaluation expenditure
Disposal of intangibles loss/(gain)
Change in operating assets and liabilities,
net of effects from purchase of controlled entities
Increase in trade and other receivables
Increase/(decrease) in trade and other payables
Increase (decrease) in provisions
(2,105,959)
-
(3,395,173)
(2,274,543)
34,214
77,919
(51)
92,924
-
20,070
203,866
(36,989)
22,283
374,051
(607)
596,960
47,129
66,119
720,894
136,593
Net cash outflow from operating activities from operating activities
(1,714,006)
(3,706,295)
Change in liabilities from financing activities
Opening
balance
1-Jul-20
Additions
during the
year
Interest
accrued
Adjustments
Payments
Forgiven
during the
period
Interest bearing loans &
borrowings
Lease liabilities
-
2,480,000
-
-
-
91,802
-
91,802
2,480,000
4,515
4,515
(1,428)
(40,000)
(1,428)
(40,000)
Closing
balance
30-Jun-21
2,480,000
54,889
2,534,889
-
-
-
27. EARNINGS PER SHARE
Accounting Policies
Basic earnings per share
Basic earnings per share is calculated by dividing the loss attributable to owners of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the year.
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
27. EARNINGS PER SHARE (continued)
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
(a) Reconciliation of earnings used in calculating loss per share
Loss attributable to the owners of the Company used in calculating basic and
diluted loss per share
(b) Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in
calculating basic loss per share
2021
$
2020
$
(2,105,959)
(5,312,588)
2021
2020
NUMBER OF
SHARES
NUMBER OF
SHARES
798,750,003
632,041,733
Between the reporting date and the date of authorisation of these financial statements no additional securities were issued
that could potentially dilute basic loss per share in the future.
28.
SHARE BASED PAYMENTS
Accounting Policies
The Group provides benefits to employees (including directors) of the Group in the form of share-based payment transactions,
whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’). The cost of
these equity-settled transactions with employees is measured by reference to the fair value at the date at which they are
granted. The fair value is determined by an internal valuation using a Black-Scholes option pricing model and Monte Carlo
methodology as appropriate.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in
which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to
the award (‘vesting date’).
The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the
extent to which the vesting period has expired and (ii) the number of options or performance rights that, in the opinion of the
directors of the Group, will ultimately vest. This opinion is formed based on the best available information at balance date. 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.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market
condition.
Where 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.
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
28. SHARE BASED PAYMENTS (continued)
(a) Performance Rights Plan
There were no performance rights granted during the year ended 30 June 2021 (2020: Nil).
(b) Options
In August 2020, 12,000,000 options were issued to Taylor Collison (Sharebroker). Options were issued in two tranches with
a different exercise price for each tranche being 2.5 cents and 3.5 cents, and all have an expiry date of 7 September 2023.
All options granted by the Company carry no dividend or voting rights. When exercisable, each option is convertible into one
ordinary share of the Company with full dividend and voting rights.
The below table summarises the number and movement in options granted and their weighted average prices:
AVENIRA LIMITED
AVENIRA LIMITED
2021
2020
Outstanding at the beginning of the year
Granted
Exercised
Expired
NUMBER OF
OPTIONS
48,000,000
12,000,000
-
-
WEIGHTED
AVERAGE
EXERCISE PRICE
$0.025
$0.03
-
-
NUMBER OF
OPTIONS
80,000,000
48,000,000
-
(80,000,000)
Outstanding at the end of the year
Exercisable at the end of the year
60,000,000
60,000,000
$0.026
48,000,000
48,000,000
WEIGHTED
AVERAGE
EXERCISE PRICE
$0.25
$0.025
-
$0.25
$0.025
The weighted average remaining contractual life of share options outstanding at the end of the financial year was 1.42 years,
and the exercise prices range from 2 cents to 3.5 cents. All options issued during the year were valued using the Black-
Scholes option pricing model. The fair value of the options granted during the 2021 year was estimated on the date of grant
using the following inputs:
Options issued
Measurement date
Exercise price (cents)
Fair value at grant date
Volatility
Risk free rate
Expiry date
2021
2020
TRANCHE 1
TRANCHE 2
TRANCHE 1
TRANCHE 2
6,000,000
6,000,000
24,000,000
24,000,000
07/09/2020
07/09/2020
29/11/2019
24/11/2019
$0.025
0.007
100%
0.23%
$0.035
0.006
100%
0.23%
$0.02
0.008
100%
0.65%
$0.03
0.007
100%
0.65%
07/09/2023
07/09/2023
30/11/2022
30/11/2022
Historically volatility has been used as the basis for determining expected share price volatility as it assumed that this is
indicative of future trends, which may not eventuate
Fair value of options that were granted or
vested to directors and recognised in the profit
or loss statement
Key estimates and assumptions
$41,858
$36,061
$201,903
$172,148
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value is determined by an internal valuation using a Black- Scholes
option pricing model using the assumptions detailed above.
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, YEAR ENDED 30 JUNE 2021
29. PARENT ENTITY INFORMATION
The following information relates to the parent entity, Avenira Limited, at 30 June 2021. The information presented here
has been prepared using accounting policies consistent with Group accounting policies.
(a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net Asset Position
Equity
Contributed equity
Reserves:
-
-
-
Share based payments
Performance rights
Financial assets at FVOCI
Accumulated losses
Total equity
(b) Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
2021
$
2020
$
3,245,453
3,389,719
6,635,172
491,537
2,480,000
2,971,537
3,663,635
1,381,063
968,582
2,349,645
458,287
-
458,287
1,891,358
140,516,513
137,337,162
17,071,647
16,993,728
603,701
486,432
603,701
67,882
(155,014,658)
(153,111,114)
3,663,635
1,891,358
(1,829,463)
(13,513,098)
-
-
(1,829,463)
(13,513,098)
(c) Details of any contingent liabilities of the parent entity
The parent entity does not have any contingent liabilities at 30 June 2021.
(d) Details of any commitments by the parent entity for the acquisition of property, plant and equipment
There are no contractual commitments by the parent entity for the acquisition of property, plant and equipment as at
reporting date.
70
DIRECTORS’ DECLARATION
The Directors declare that:
1. The financial statements and notes set out on pages 29 to 70 are in accordance with the Corporations Act 2001,
including:
a. complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
reporting requirements; and
b. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of their
performance for the financial year ended on that date;
2.
In their 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; and
3. A statement that the attached financial statements are in compliance with International Financial Reporting
Standards has been included in the notes to the financial statements.
The directors have been given the declarations by the chief executive officer and chief financial officer required by section
295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the directors.
Brett Clark
Executive Chairman
Perth, 22 September 2021
71
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVENIRA LIMITED
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Avenira Limited (“the Company”) and its subsidiaries (“the
Group”), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement of
changes in equity and the consolidated statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion:
a.
the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year then ended; and
(ii)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
b.
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Group in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that
are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Material Uncertainty Related to Going Concern
We draw attention to Note 1 in the financial report, which indicates that the Group incurred a net loss of
$2,105,959 during the year ended 30 June 2021. As stated in Note 1 these events or conditions, along
with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast
significant doubt on the Group’s ability to continue as a going concern. Our opinion is not modified in
respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key Audit Matter
How our audit addressed the Key Audit Matter
Capitalised exploration and evaluation expenditure
(Refer to Note 12)
The Group has capitalised exploration and
evaluation expenditure of $7,511,257 as at
balance date.
Exploration and evaluation is considered to
be a key audit matter due to:
• The significance of the balance to
the Group’s financial position;
• The level of judgement required in
evaluating
management’s
application of the requirements of
AASB 6 Exploration
for and
Evaluation of Mineral Resources
(“AASB 6”). AASB 6 is an industry
standard
accounting
specific
requiring
of
the
significant judgements, estimates
industry knowledge. This
and
includes specific requirements for
expenditure to be capitalised as an
asset and subsequent requirements
which must be complied with for
capitalised expenditure to continue
application
Our procedures included, amongst others:
• Assessing management’s determination of
its areas of interest for consistency with the
definition
involved
analysing the tenements in which the Group
holds an
the exploration
interest and
programs planned for those tenements.
in AASB 6.
This
• For each area of interest, we assessed the
Group’s rights to tenure by corroborating to
government
registries and evaluating
agreements in place with other parties as
applicable.
• We considered the activities in each area of
interest to date and assessed the planned
future activities for each area of interest by
evaluating budgets.
• Substantiated a sample of expenditure by
agreeing to supporting documentation.
• We assessed each area of interest for one
or more of the following circumstances that
may indicate impairment of the capitalised
expenditure:
o
the licenses for the right to explore
Key Audit Matter
How our audit addressed the Key Audit Matter
to be carried as an asset; and
• The assessment of impairment of
evaluation
inherently
and
being
exploration
expenditure
difficult.
expiring in the near future or are not
expected to be renewed;
o substantive expenditure for further
exploration in the specific area is
neither budgeted or planned;
o decision or intent by the Company to
discontinue activities in the specific
area of interest due to lack of
commercially viable quantities of
resources; and
o data
to proceed,
indicating that, although a
development in the specific area is
the carrying
likely
amount of the exploration asset is
unlikely to be recovered in full from
successful development or sale.
Loans and borrowings
(Refer to Note 15)
The Group has loans and borrowings of
$2,480,000 as at balance date.
Loans and borrowings are considered to be
key audit matter due to:
• The significance of the balance to
the Group’s financial position; and
• The complexities involved in the
recognition and measurement of
convertible financial instruments.
• Examination of the disclosures made in the
financial report.
Our procedures included, amongst others:
• Analysing the Loan Agreement to identify
the key terms and conditions;
• Verifying the funds receipted on draw down
of the loan;
• Assessing the accounting treatment of the
financial instrument in accordance with the
recognition and measurement as well as the
disclosure requirements of the relevant
Australian Accounting Standards;
• Assessing the calculation of the relevant
interest expense for the year; and
• Examination of the disclosures made in the
financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2021 but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and
for such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or
error. In Note 1, the directors also state in accordance with Australian Accounting Standard AASB 101
Presentation of Financial Statements, that the financial report complies with International Financial
Reporting Standards.
In preparing the financial report, the directors are responsible for assessing the 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 the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial report, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group
to cease to continue as a going concern.
• Evaluate the overall presentation, structure, and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision, and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most
significance in the audit of the financial report of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on the Remuneration Report
We have audited the Remuneration Report included in the directors’ report for the year ended 30 June
2021. The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to
express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
Auditor’s Opinion
In our opinion, the Remuneration Report of Avenira Limited, for the year ended 30 June 2021, complies
with section 300A of the Corporations Act 2001.
HALL CHADWICK WA AUDIT PTY LTD K
DOUG BELL CA
Partner
Dated 22nd day of September 2021
ASX ADDITIONAL INFORMATION
Additional information required by Australian Securities Exchange Ltd and not shown elsewhere in this report is as
follows. The information is current as at 8 September 2020.
(a) Distribution of equity securities
Analysis of numbers of equity security holders by size of holding:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
ORDINARY SHARES
NUMBER OF
HOLDERS
NUMBER OF
SHARES
235
107
140
928
658
2,068
25,936
367,673
1,119,179
41,681,393
819,658,637
862,852,818
The number of equity security holders holding less than a marketable parcel of securities
are:
1,261
30,071,114
(b) Twenty largest shareholders
The names of the twenty largest holders of quoted ordinary shares are:
Top Holders Snapshot - Grouped
Rank
Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
AU XINGAO INVESTMENT PTY LTD
ANOVA METALS LIMITED
BNP PARIBAS NOMINEES PTY LTD SIX SIS LTD
AWAKENING INVESTMENT PTY LTD
MRS VINEETA GUPTA
HOLY INVESTMENTS PTY LTD
MR MICHAEL ANDREW WHITING + MRS TRACEY ANNE WHITING
SYMINGTON PTY LTD
BLAMNCO TRADING PTY LTD
MR GIOVANNI DEL CONTE
SOCIETE DE POLYSERVE POUR LES ENGRAIS ET PRODUITS
CHIMIQUES SA\C
STC SUPER HOLDINGS PTY LTD
MR BOBBY VINCENT LI
LONGRIDGE PARTNERS PTY LTD
RIMOYNE PTY LTD
NURRAGI INVESTMENTS PTY LTD
MR LUKE HUANG
MERINDA HOLDINGS PTY LTD
OCTIFIL PTY LTD
CALAMA HOLDINGS PTY LTD
62,359,226
35,762,303
22,694,894
21,597,005
20,733,821
19,077,684
17,226,366
15,351,914
15,000,000
14,849,612
14,703,962
10,857,142
10,714,284
10,109,409
9,300,000
9,206,116
8,947,470
8,430,928
7,392,650
7,181,993
7.23
4.14
2.63
2.50
2.40
2.21
2.00
1.78
1.74
1.72
1.70
1.26
1.24
1.17
1.08
1.07
1.04
0.98
0.86
0.83
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
341,496,779
521,356,039
39.58
60.42
78
(c) Substantial shareholders
Name
Units
% Units
AU XINGAO INVESTMENT PTY LTD
62,359,226
7.23
(d) Unquoted Equity Securities
The Company has 60,000,000 unquoted options on issue.
Grant Date
Date of Expiry
Exercise Price
Number under
No of Holders
29 November 2019
30 November 2022
29 November 2019
30 November 2022
07 September 2020
07 September 2023
07 September 2020
07 September 2023
$0.02
$0.03
$0.025
$0.035
Option
24,000,000
24,000,000
6,000,000
6,000,000
60,000,000
3
3
1
1
(e) Voting rights
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(f) Company Secretary, registered and principal administrative office and share registry
Details can be found in the Corporate Information on page 3 of the Annual Report.
(g) Schedule of interest in mining tenements
LOCATION
Arruwurra, Northern Territory
Dalmore, Northern Territory
Central Wonarah, Northern Territory
East Murchison, Western Australia
East Murchison, Western Australia
East Murchison, Western Australia
East Murchison, Western Australia
TENEMENT
EL29840
EL29849
EL32359
E 53/2078
E 53/2079
E 53/1856
E 53/1859
PERCENTAGE HELD /
EARNING
100
100
100
100
100
100
100
79