ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2019
For personal use only BLACK ROCK MINING LIMITED
ABN: 59 094 551 336
CORPORATE DIRECTORY
DIRECTORS
Richard Crookes
Non-Executive Chairman
John de Vries
Chief Executive Officer, Managing Director
COMPANY
SECRETARY
PRINCIPAL
PLACE OF
BUSINESS AND
REGISTERED
OFFICE
AUDITOR
Ian Murray
Non- Executive Director
Gabriel Chiappini
Non-Executive Director
Gabriel Chiappini
45 Ventnor Avenue,
West Perth Western Australia, 6005
T: +61 (0)8 9389 4415
F: +61 (0)8 9389 4400
www.blackrockmining.com.au
Deloitte Touche Tohmatsu
Tower 2, Brookfield Place
123 St Georges Terrace
Perth Western Australia, 6000
T: (08) 9365 7000
F: (08) 9365 7001
SHARE
REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth Western Australia, 6000
T: 1300 787 272
F: (08) 9323 2033
E: web.queries@computershare.com.au
STOCK
EXCHANGE
LISTING
The Company’s shares are quoted on the
Australian Securities Exchange (ASX).
The Home Exchange is Perth.
ASX CODE
BKT – ordinary shares
02
05
17
18
19
20
21
22
47
48
52
CHIEF EXECUTIVE OFFICER’S REPORT
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL ASX INFORMATION
250 KMDAR ES SALAAMMAHENGEGRAPHITE PROJECTZANZIBARTANGAMOROGOROIFAKARAMTWARAMBEYATANZANIAFor personal use only MAHENGE
THE RATINGS
ECONOMICS
JURISDICTION
CONFIDENCE
FINANCEABILITY
GEOLOGY
ENGINEERING
SCORE OUT OF 100
9.3
4.2
7.9
7.0
8.5
10.0
78
Sourced from the Project Pipeline Handbook 2019 edition
Black Rock Mining’s Mahenge
graphite development is in
Tanzania’s Ulanga district,
some 250km north of the border
with Mozambique, 250km west
of a coastal port, and 300km
southwest of Tanzania’s largest
city, Dar es Salaam.
The definitive feasibility study from
last year outlined a three-stage
construction schedule to ultimately
deliver up to 250,000 tonnes
per annum of 98.5% graphite
concentrate for 32 years.
Black Rock chief executive John de
Vries has described the operation in
full flight as a “stunning business” and
the headlining economics certainly
back that up. The NPV is just short
of $900 million with up-front capital
requirements of just $115 million.
The IRR comes back at more than 40%.
Some may be hesitant around
Tanzania as a jurisdiction, though
much of the angst appears restricted
to the gold sector.
THE NUMBERS (AS AT 30 JUNE 2019)
OP/UG
LIFE (YEARS)
COMPANY
EXISITING PRODUCER
MARKET CAPITALISTION
PRIMARY LISTING
CEO/MD
JURISDICTION
COMMODITY
ANNUAL PRODUCTION (TONNES)
OP
32
BLACK ROCK MINING
NO
34.5m USD / 49.2m AUD
ASX
JOHN DE VRIES
TANZANIA
GRAPHITE
250,000
CASH AND EQUIVALENTS
1.341m USD / 1.907m AUD
COMMODITY PRICE ASSUMPTION ($/TONNE)
BY-PRODUCT
CAPEX (USD MILLIONS)
OPEX ($/TONNE)
POST-TAX NPV (USD MILLIONS)
POST-TAX IRR (%)
DISCOUNT RATE (%)
MATURITY (PFS/BFS; OR EUIVALENT)
STUDY AGE
PROVEN TECHNOLOGY
RESOURCE (CONTAINED; M&I) (MT)
RESOURCE GRADE (%)
OWNERSHIP (%)
01
1,301
N/A
115
401
895
42.8
10
DFS
2018
YES
9.1
8.1
100
250 KMDAR ES SALAAMMAHENGEGRAPHITE PROJECTZANZIBARTANGAMOROGOROIFAKARAMTWARAMBEYATANZANIABLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only Chief
Executive
Officer’s
Report
Black Rock Mining Limited (ASX: BKT) delivered against its milestones
this past year in advancing the development of our Mahenge
graphite project in Tanzania. Our team including staff, management,
advisors and partners continued to work diligently to transition
the Company into a strong position for our next phase in moving
toward construction.
Black Rock’s development strategy
is based on differentiating Mahenge
as superior source of graphite,
and having done sufficient work,
to prove our asset to be attractive for
inbound finance. To this end we have
completed a Definitive Feasibility Study
(DFS) work program that establishes
robust and credible performance
metrics, and supporting market data.
Ultimately this approach provides the
shortest development pathway.
The release early in the year of the
DFS, following the Environmental
Permit, delivered stunning economics
for the Mahenge Graphite project and
this was underpinned by our “Crawl,
Walk, Run” strategy. Financial metrics of
NPV10 US$895m, IRR 42.8%, (after tax
and Free Carried Interest) and capex
for module one of US$115m, coupled
with high purity flake and our logistical
advantages, sees Mahenge in our view
as the best undeveloped graphite
project globally. These economics
are driven by geology and geography,
which are unique to Mahenge.
Mahenge offers a unique product
suitable for multiple market segments
and is uncontested in the high grade
and large flake sectors.
Over the year, the Company set
and delivered against a number
of milestones and has continued
to demonstrate industry leading
results. Previous work producing
high grade graphite concentrate
made available directly to potential
customers to sample and test led to
a number of Offtake commitments
secured. By January, strong market
demand saw Pricing and Volume
Framework commitments secured
with three customers, representing
85% of proposed steady state annual
production of 240,000 tonnes of the
Definitive Feasibility Study volume.
Continued market interest in our
large, high purity, Premium and
Ultra flake products supported the
Board decision to commence work
to enhance the DFS production plan
by compressing the development
schedule and working on a fourth
02
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only self-funding module to take proposed
annual production to over 300k
tonnes per annum. This ranks
Mahenge as one of the world’s
largest potential graphite projects,
and places us in a unique position to
capitalise on the global migration to
increased electrification of transport
and demand for fire retardant
building cladding.
In February, the Mining Commission
of the Tanzanian Ministry of
Minerals granted us two contiguous
mining licences over the Mahenge
Graphite Mine development area,
complimenting the Environmental
Permit awarded last year.
Licencing effectively signalled to all
stakeholders that Tanzania wants
this project to be developed.
After running the largest pilot plant
in the sector last year of 90 tonnes
at SGS’s Lakefield research Facility in
Canada, we followed up with a second
pilot plant operation of 18 tonnes in a
dedicated facility in Laiyang province
China. This second pilot plant was
operated by our EPC partner Yantai
Jinyuan Mining Machinery Ltd.
Test work placed real product in the
hands of potential customers and
allowed them to observe and review
the optimised plant circuit design
as well as complete due diligence
on the likely plant performance and
expected products. Our focus on
de-risking operations is paramount
by demonstrating with customers and
financiers that we can consistently
achieve the high recovery, grade and
flake size performance at scale using
a simple and repeatable process
without the need for chemical
intervention. Metallurgical testing
further validated the performance of
our Mahenge graphite concentrate
03
and importantly we delivered a
higher specification material of
+98% TGC, while maintaining our
target of +60% greater than
#100 mesh. We also increased our
recovery rate to 95.5%. And again,
all of this was delivered transparently
in front of our customers, partners
and potential investors.
We believe Mahenge is the best
natural flake graphite in the world,
and we have proven it through
our research, testing and
demonstrations of product and
operations to potential customers.
This culminated in agreeing a
reference pricing framework with
offtake partners consistent with
DFS basket pricing. Delivering the
price framework was a fundamental
step in moving through to the
financing process as this provides
financiers with confidence in the price
assumptions that support our strong
project financial metrics.
With that, we were buoyed by the
interest from potential financiers and
as a result, we appointed Ironstone
Capital as our Financial Advisor
to co-ordinate and accelerate our
engagement with the market on
financing the Mahenge Graphite
project. Ironstone has consolidated
existing and established new
financing pathways with banks and
other potential sources of debt
and industry finance. A number of
options are currently being pursued
and assessed, including project
level equity, conventional African-
domiciled debt financing, convertible/
hybrid structures and offtake-related
financing proposals. Our focus
continues to remain on identifying
the least dilutive, risk adjusted option
for our Shareholders.
Aside from our offtake and potential
financing partners recognising the
unique advantages of Mahenge
graphite, prestigious industry
publication Mining Journal recently
ranked Black Rock’s Mahenge
Graphite Project in the top five
development stage projects globally.
Mining Journal used a robust
ranking methodology that included
assessment of project economics,
geology, engineering, confidence
and jurisdiction. This independent
recognition of Mahenge’s geological
and geographical advantages is an
outstanding acknowledgement and
essentially mirrored a commissioned
report by Orior Capital in January and
ongoing coverage by our corporate
broker Patersons Securities.
As we progressed the financing
phase, the DFS was enhanced in
July, producing a fourth module and
improved financial metrics. This was
a customer and financial market
driven outcome for product and a
more aggressive production schedule
ramp up. With the enhanced DFS
(eDFS), our strategy became “Crawl,
Walk, Run, Sprint”. We were the first
to introduce a modular and staged
development program, and this is
an absolute differentiator and key
strength of our business model, which
is scalability. Being able to add capacity
incrementally ensures we do not over
capitalise the asset with excessive
redundant capacity. Importantly,
we can respond to changes in market
demand and this approach ensures the
asset is not developed unless market
demand is present. The planned fourth
module will produce an additional
85,000 tonnes of graphite concentrate
per year, increasing total steady state
planned production to 340,000 tonnes
per year.
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only Chief
Executive
Officer’s
Report
The addition of a fourth production
module has no material change
to the forecast capex for the first
three modules, however will lift the
life of mine project revenues to a
revised project NPV10 of US$1.16Bn
(A$1.65Bn) (after tax and after Free
Carried Interest), which is a substantial
increase of 30% over the original
three-module DFS. The capex required
to fund modules two, three and four
can be funded from internal cash flow.
In another positive step, we released
the results of our battery anode
pre-cursor production trial.
400 kilograms of sub 80 mesh
concentrate generated during the
March Pilot Plant run was processed
through to Spherical Purified Graphite
(SPG) using commercial scale
equipment in commercial processing
facilities. To put the scale of the trial
into context, this was 100 times larger
than our previous trials completed
by Dornfer Anzaplan in Germany
in 2017. Inner Mongolia Ruisheng
New Material Co Ltd (a commercial
producer) and Wuhan University
of Technology (a Chinese research
facility) were chosen to conduct the
trial. The reason we used both a
commercial producer and a Chinese
research facility was to ensure
comparability between previous
Western and this trial’s Chinese
laboratory results. In addition, we
also wanted to understand how the
product would perform when scaled
up in a commercial facility typical of
Black Rock’s potential customer base.
04
Spheronising yields of up to 53%,
and 99.98% TGC purity were achieved,
far exceeding industry standards for
battery anode materials. Importantly,
the proposed Mahenge concentrator
flowsheet demonstrated no damage
to the flake. This is important as it
demonstrates that our flowsheet
design preserves the integrity
of the flake and does not impair
spheronising performance.
I’m proud to share that our Corporate
Social Responsibility (CSR) program
activities remain ongoing with
continued engagement with and
support of our local communities.
In May, we partnered with the
community in Ulanga District to
support school children by providing
6.5 tons of maize and 1.1 tons of
beans to primary and secondary
schools in the District. This was in
addition to the third year of Black
Rock providing support of food
and other essentials for the
Mahenge Orphanage.
We have supported the National
Torch Relay for the second year
running by proving tracksuits to
local school children participating in
the parade. Our CSR focus remains
locally orientated and is directed at
ensuring our host communities share
a better future as an outcome of
project development.
We have a strong Company culture
and maintain a healthy and positive
engagement with the national
government, local Authorities and
potentially affected communities.
This will continue and be part of our
ongoing operations as we progress to
a development decision.
During the year, Black Rock Mining
raised capital completing A$6 million
in placements taken up by the Board,
Institutional and Sophisticated
Investors. We are appreciative for our
new and existing shareholders who
supported us in these placements,
as well as Black Rock directors,
management and advisors who also
invested about $1 million through
these placements. The Company is at
critical stage of developing Mahenge
and this funding is integral in
advancing the project to construction.
We saw a change to our Board
of Directors during the year with
respected mining industry veteran
Ian Murray appointed Non-Executive
Director. I would like to thank the
Board of Directors for their support
over the past year and thank our
staff and management for their
contributions during what was an
extremely busy and critical year.
I look forward to the outcome of our
financing discussions and moving into
construction for our Mahenge project
in 2020.
John de Vries
MANAGING DIRECTOR &
CHIEF EXECUTIVE OFFICER
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
The Directors of Black Rock Mining Limited (“Company” or “Black Rock Mining”) submit herewith the annual
report of the Company and its subsidiary entities (“Consolidated Entity”) for the financial year ended 30 June 2019.
In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:
INFORMATION ABOUT THE DIRECTORS
The names and details of the Directors of Black Rock Mining Limited during the financial year are:
NAME
PARTICULARS
Richard Crookes
NON-EXECUTIVE CHAIRMAN
John de Vries
MANAGING DIRECTOR
AND CEO
Ian Murray
NON-EXECUTIVE DIRECTOR
Mr Crookes has over 30 years’ experience in the resources and investments industries.
He is a geologist by training having worked in the industry most recently as the Chief Geologist
and Mining Manager of Ernest Henry Mining in Australia (now Glencore). Mr Crookes was most
recently an Investment Director at EMR Capital and prior to that he was an Executive Director in
Macquarie Bank’s Metals Energy Capital (MEC) division where he managed all aspects of the Bank’s
principal investments in mining and metals companies as well as the origination of numerous
project finance transactions. Mr Crookes has extensive experience in deal origination, evaluation,
structuring, and completing investment entry and exits for both private and public resource
companies in Australia and overseas, as well as execution of Project Finance transactions in Africa.
Mr Crookes held directorships with the following listed companies in the 3 years immediately prior
to the date of this report.
NAME
Highfield Resources Limited
Lithium Power International Ltd
DATE APPOINTED
April 2013
November 2018
DATE RESIGNED
Current
Current
Mr de Vries has over 30 years’ experience in the mining industry. He started his career in 1984
working for WMC Resources and held operational roles such as Underground Manager,
Senior Mining Engineer and Manager Mining. In 1998, he moved to AMC Consultants to become
a Principal Mining Engineer responsible for Mine Optimisation. In 2003, he joined Orica Mining
Services as Global Business Manager, Advanced Mining Solutions, before moving to BHP Billiton in
2007 as the Manager Strategic Mine Planning.
Most recently from 2011 to 2015, he was General Manager Technical Services for St Barbara.
After his success with St Barbara, Mr de Vries took an 18-month sabbatical before joining Black
Rock Mining.
Mr de Vries holds a Bachelor of Engineering, Mining, a Master of Science in Mineral Economics, a
Graduate Diploma in Economic Geology, a Graduate Diploma in Financial Markets and is Advisory
Committee Member-Mining of MRIWA. Mr de Vries holds a WA First Class Mine Managers Certificate
of Competency. He is a member of the AusIMM, a fellow of FINSIA and a member of SME.
Mr Murray is a Non-Executive Director of Black Rock Mining. Mr Murray graduated with a Bachelor
of Commerce (BCom) in 1987 from the University of Cape Town, a member of both the South
African Institute of Chartered Accountants and the Institute of Chartered Accountants of Australia
and New Zealand, and is a member of the Australian Institute of Company Directors. He has
held senior management positions for companies such as KPMG, Price Waterhouse, Bioclones,
DRDGold Ltd, and Gold Road Resources. More recently, as Chief Executive Officer and Managing
Director, he successfully delivered Gold Road Resources’ (ASX:GOR) Gruyere Project, and has
significant African experience through DRDGold.
Mr Murray held directorships with the following listed companies in the 3 years immediately prior
to the date of this report.
NAME
Gold Road Resources Ltd
Gascoyne Resources Ltd
DATE APPOINTED
October 1997
October 2018
DATE RESIGNED
January 2019
October 2018
0505
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
INFORMATION ABOUT THE DIRECTORS - CONTINUED
NAME
PARTICULARS
Gabriel Chiappini
NON-EXECUTIVE DIRECTOR
AND COMPANY SECRETARY
Mr Chiappini is an experienced ASX director and has been active in the capital markets for
17 years. Mr Chiappini has assisted in raising in excess of AUD $400m in funding and has provided
investment and divestment guidance to a number of companies. Mr Chiappini specialises in
start-up companies and assists companies with their growth and strategic direction. Mr Chiappini
is a member of the Australian Institute of Company Directors and Chartered Accountants Australia
& New Zealand.
Mr Chiappini held directorships with the following listed companies in the 3 year immediately prior
to the date of this report.
Stephen Copulos
NON-EXECUTIVE DIRECTOR
NAME
Invictus Energy Limited
Eneabba Gas Limited
Fastbrick Robotics Limited:
- Non-Executive Director
- Non-Executive Chairman
Scotgold Resources Limited
Global Geoscience Limited
DATE APPOINTED
12 August 2015
26 September 2016
DATE RESIGNED
Current
Current
15 December 2011
21 March 2012
27 May 2016
3 November 2015
9 August 2018
18 November 2015
20 May 2017
23 May 2017
Mr Copulos is a Non-Executive Director of Black Rock Mining and is the Company’s major
shareholder and financial supporter. Mr Copulos has over thirty-five years’ experience in a variety
of businesses and investments across a wide range of industries including mining, manufacturing,
property development, food and hospitality. He has been the Managing Director of the Copulos
Group of companies, a private investment group, since 1997 and has extensive experience as a
company director of both listed and unlisted public companies in Australia, the UK and USA.
Mr Copulos held directorships with the following listed companies in the 3 years immediately prior
to the date of this report.
NAME
Big River Gold Limited
Consolidated Zinc Limited
Restaurant Brands Limited
DATE APPOINTED
March 2013
June 2015
April 2016
DATE RESIGNED
Current
Current
Current
The above-named directors held office during the whole of the financial year and since the end of the financial year except for:
NAME
RESIGNATION/APPOINTMENT DATE
Stephen Copulos
Resigned: 7 November 2018
Ian Murray
Appointed: 2 May 2019
INFORMATION ABOUT COMPANY SECRETARY
Gabriel Chiappini
Refer to page 6 for an overview of Mr Chiappini’s experience and expertise.
0606
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only PRINCIPAL ACTIVITIES
Black Rock Mining Limited is an Australian-based company listed on the Australian Securities Exchange. The Company
owns graphite tenure in the Mahenge region of Tanzania.
The Company reports a JORC compliant Mineral Resource Estimate of 211.9m tonnes at 7.8% TGC for 16.6m tonnes of
contained Graphite, making this one of the largest JORC compliant flake graphite Mineral Resource Estimates globally.
Over 50% of the Mineral Resource is in the Measured and Indicated categories. In October 2017, Black Rock announced
results of a Definitive Feasibility Study (PFS). The study confirms Mahenge’s potential as a long-life, low capex,
high margin operation.
The company has proceeded with permitting and was granted Environmental Impact Assessment Certificate,
Reg No. EC/EIA/2018/0352 on the 29th of August 2018. Mining licenses ML 611/2019 and ML612/2019 were granted on
25th of February 2019.
The Definitive Feasibility Study estimated a post-tax, unlevered, internal rate of return (“IRR”) for the Project of 42.8%; and
a net present value (NPV) using a discount rate of 10% (NPV10) of US$895m. Black Rock confirms, the key assumptions
used in the DFS have not materially changed and that the material assumptions continue to apply for the optimised study
released in August 2019.
Black Rock confirms that it’s DFS has allowed for the proposed Tanzanian legislative changes relating to 16% free carry
position of the Tanzanian Government and the royalty fee increasing to 4.3%. Black Rock has commenced a structured
financing process to identify and deploy funds for development the Mahenge Graphite Project.
For further information on the company’s development pathway, please refer to the company’s website at the
following link: http://www.blackrockmining.com.au and the corporate video presentation at
http://www.blackrockmining.com.au/#video
REVIEW AND RESULTS OF OPERATIONS AND ACTIVITIES
Results of Operations
The consolidated loss after tax for the year ended 30 June 2019 was $2,864,024 (2018: $2,053,080). During 2019, the
Company focused its objectives on a Definitive Feasibility Study, permitting, and completion of pilot plant to validate
pricing and volume assumptions used in the Definitive Feasibility Study, The Company is also dealing with new Tanzanian
mining legislation introduced in July 2017 that allows for 16% Government free carry and increased royalty rate.
In FY19 the company’s main objective was to move into a development and strategic pathway to allow the company to
look to the establishment of the mine. Some of the milestones achieved in FY19 and to the date of this report include:
• Raised $3.0 million (before costs) through an oversubscribed placement comprising 78,125,000 new fully paid ordinary
shares at $0.032 per share (refer to ASX announcement 23 August 2018).
• Received an Environmental Impact Assessment Certificate from the National Environment Management Council of
Tanzania (“NEMC”) (refer to ASX announcement 5 September 2018).
• Signed a Strategic Cooperation Agreement with Yantai Jinyuan Mining Machinery Ltd.
• Signed 5 offtake agreements for natural flake graphite from its Mahenge Graphite Mine with the following customers:
- Heilongjiang Bohao Graphite (refer to ASX announcement 22 October 2018),
- Qingdao Fujin Graphite Company (refer to ASX announcement 29 October 2018),
-
Taihe Soar of Dalian (refer to ASX announcement 7 January 2019)
- Qingdao Yujinxi (refer to ASX announcement 8 May 2019).
-
Yantai Jinyuan (refer to ASX announcement 8 May 2019).
Total committed volumes under the 5 off takes is approximately 255,000 tonnes per annum.
• Completed a Definitive Feasibility Study (refer to ASX announcement 24 October 2018).
• Granted two contiguous mining licences, ML 00668/2018 and ML 00669/2018, over the Mahenge Graphite Mine
development area (refer to ASX announcement 26 February 2019).
• Raised $3.0 million (before costs) through a placement comprising 46,153,846 new fully paid ordinary shares at
$0.065 per share (refer to ASX announcement 11 March 2019).
0707
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
DIRECTORS’
REPORT
REVIEW AND RESULTS OF OPERATIONS AND ACTIVITIES - CONTINUED
• Completed pilot plant testworks processing 18.5 dry tonnes of ore in a dedicated pilot plant facility in China operated
by Black Rock’s EPC partner Yantai Jinyuan Mining Machinery (refer to ASX announcement 3 April 2019).
• Announced final metallurgical performance results from steady state operations from its 18 tonne Chinese pilot plant
testworks (refer to ASX announcement 23 April 2019).
• Appointed Mr Ian Murray as Non- executive Director to the Company (refer to ASX announcement 2 May 2019).
• Agreed a framework for the determination of pricing in its offtake agreements, which are now only dependent on the
type and quality of the graphite product to be supplied to each offtaker (refer to ASX announcement 8 May 2019).
• Enhanced the Mahenge Graphite Project DFS released on 24 October 2018 to include a fourth production module,
and a compressed development schedule (refer to ASX announcement 24 July 2019).
• Completed a large-scale spheronising and purification trial using 400kg of sub 80 mesh concentrate generated during
the March 2019 Pilot Plant run (refer to ASX announcement 12 August 2019).
• Completed a placement to raise $3.0 million by issuing 42,857,143 shares at $0.07 per share (refer to ASX
announcement 16 August 2019)
• Appointed the current Chief Executive Officer & Executive Director, Mr John de Vries, to the position of Managing
Director & Chief Executive Officer of the Company (refer to ASX announcement 10 September 2019).
Corporate and Financial Position
Consolidated net assets at year-end were $22,406,840 against $18,283,485 at the close of the prior year.
Total cash held at year-end was $1,907,467 (2018: $1,788,150).
DIVIDENDS
No dividend has been paid since the end of the previous financial year and no dividend is recommended for the
current year.
CHANGES IN THE STATE OF AFFAIRS
There have not been any significant changes in the State of Affairs of the Company. Black Rock Mining remains focused on
developing its Graphite Mahenge Project in Tanzania. The Company is now moving into its development phase and looks
forward to executing on its strategy to develop and bring Mahenge into production and in parallel, penetrate the battery
materials supply chain.
SUBSEQUENT EVENTS
Other than the below, the Directors are not aware of any matter or circumstance that has significant or may significantly
affect the operation of the Company or the results of those operations, or the state of affairs of the Company in
subsequent financial years.
- On 24 July 2019 the Company announced it had enhanced the 100% owned Mahenge Graphite Project DFS released
on 24 October 2018 to include a fourth production module, and a compressed development schedule.
- On 14 August 2019 the Company announced it had completed a large-scale spheronising and purification trial using
400kg of sub 80 mesh concentrate generated during the March 2019 Pilot Plant run (refer ASX release 3 April 2019).
- On 16 August 2019 the Company announced it had completed a placement to raise $3.0 million (before costs) by
issuing 42,857,143 shares at $0.07 per share.
- On 10 September 2019 the Company appointed the current Chief Executive Officer & Executive Director,
Mr John de Vries, to Managing Director and Chief Executive Officer of the Company.
0808
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only FUTURE DEVELOPMENTS
Black Rock Mining remains focused on developing its Graphite Mahenge Project in Tanzania. The Company is now moving
into its development phase and looks forward to executing on its strategy to develop and bring Mahenge into production
and in parallel, penetrate the battery materials supply chain.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The exploration activities of entities in the Consolidated Entity are subject to environmental regulations imposed by
various regulatory authorities, particularly those relating to ground disturbance and the protection of rare and endangered
flora and fauna.
Entities in the Consolidated Entity have complied with all environmental requirements up to the date of this report.
SHARE OPTIONS
Share options granted to directors
During the year 13,000,000 million share options were granted to the directors of the Company. Refer to table on page to 14.
Share options on issue
The details of the options as at the date of this report are as follows:
ISSUING
ENTITY
NUMBER OF SHARES
UNDER OPTION
CLASS OF
SHARES
EXERCISE PRICE
OF OPTION
EXPIRY DATE
OF OPTIONS
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
13,000,000
5,000,000
5,000,000
3,000,000
5,000,000
25,000,000
1,000,000
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
$0.10
$0.07
$0.20
$0.10
$0.20
$0.10
$0.10
7 November 2021
9 July 2021
14 March 2021
18 December 2021
19 April 2020
31 August 2020
31 October 2021
Option holders do not have any right by virtue of the option to participate in any share issue of the Company or any
related body corporate.
PERFORMANCE RIGHTS
Performance rights granted to directors
During and since the end of the financial year, no new performance rights were granted to directors of the Company.
Performance rights on issue
As at the date of this report, no performance rights are on issue.
0909
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
INFORMATION ABOUT THE DIRECTORS
The following table sets out each Director’s relevant interest in shares or options over shares of the Company as at the
date of this report:
DIRECTOR
NUMBER
GRANT DATE
EXPIRY DATE
EXERCISE PRICE
Richard Crookes
- Ordinary shares
- Unlisted Options
- Unlisted Options
John de Vries
- Ordinary shares
- Unlisted Options
- Unlisted Options
2,062,500
5,000,000
2,500,000
3,212,500
5,000,000
5,000,000
17-Oct-17
7-Nov-18
31-Aug-20
7-Nov-21
28-Nov-17
7-Nov-18
31-Aug-20
7-Nov-21
$0.10
$0.10
$0.10
$0.10
Ian Murray
- Ordinary shares
1,508,706
Gabriel Chiappini
- Ordinary shares
- Unlisted Options
- Unlisted Options
6,250,000
5,000,000
2,500,000
28-Nov-17
7-Nov-18
31-Aug-20
7-Nov-21
$0.10
$0.10
INDEMNIFICATION OF OFFICERS AND AUDITOR
The Company gave indemnity and held the following liability cover in place during the course of the financial year:
1. Agreements to indemnify Mr Richard Crookes (Non-Executive Chairman), Mr John de Vries (Executive Director),
Mr Gabriel Chiappini (Non-Executive Director) and Mr Ian Murray (Non-Executive Director), in respect of any liabilities
incurred by them while acting in the normal course of business as a director of the entity and to insure them against
certain risks they are exposed to as directors of the Company.
2. Pursuant to the above, the Company has paid premiums to insure the directors and executive management
against liabilities incurred in the conduct of the business of the Company and has provided right of access to the
Company records.
3.
In accordance with common commercial practice, the insurance policy prohibits disclosure of the premium and the
nature of the liability insured against.
The Company has not provided any insurance for an auditor of the Company.
DIRECTORS’ MEETINGS
The following table sets out the number of Directors’ meetings (including meetings of committees of directors) held during
the financial year and the number of meetings attended by each Director (while they were director or committee member).
During the financial year 11 Board meetings were held:
DIRECTOR
Richard Crookes
Ian Murray
John de Vries
Stephen Copulos
Gabriel Chiappini
1010
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
11
2
11
5
11
11
2
11
5
11
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only NON-AUDIT SERVICES
During the year no non- audit services were provided by the Auditor (or by another person or firm on the Auditors behalf).
AUDITOR’S INDEPENDENCE DECLARATION
The auditor’s independence declaration is included after this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings
to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of
those proceedings. The Company was not party to any such proceedings during the year.
REMUNERATION REPORT (audited)
This remuneration report, which forms part of the directors’ report, sets out information about the remuneration of Black
Rock Mining Limited’s key management personnel for the financial year ended 30 June 2019. The term ‘key management
personnel’ refers to those persons having authority and responsibility for planning, directing and controlling the activities
of the Consolidated Entity, directly or indirectly, including any director (whether executive or otherwise) of the Consolidated
Entity. The prescribed details for each person covered by this report are detailed below under the following headings:
•
•
•
•
•
key management personnel
remuneration policy
relationship between the remuneration policy and company performance
remuneration of key management personnel
key terms of employment contracts
• other information
Key management personnel
The key management personnel of the Consolidated Entity during or since the end of the financial year were:
Richard Crookes
Ian Murray
John de Vries
Stephen Copulos
Gabriel Chiappini
Non-Executive Chairman
Appointed 16 October 2017
Non-Executive Director
Appointed 2 May 2019
Chief Executive Officer &
Executive Director
Non-Executive Director
Appointed 16 March 2017
Appointed 22 January 2015
Resigned 7 November 2018
Non-Executive Director
Appointed 21 March 2012
& Company Secretary
Appointed 12 July 2013
Except as noted, the named persons held their current positions for the whole of the financial year and since the end of
the financial year.
Remuneration policy
The Board of Directors is responsible for determining and reviewing compensation arrangements for directors and
the executive team. The Board assesses the appropriateness of the nature of the amount of remuneration of such
officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring
maximum stakeholder benefit from the retention of a high-quality Board and Executive team and that each staff member’s
remuneration package properly reflects that person’s duties and responsibilities.
The Board may, however, exercise its discretion in relation to approving incentive bonuses, options and
performance rights.
1111
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
REMUNERATION REPORT (audited) - CONTINUED
Elements of director and executive remuneration
Remuneration packages contain the following key elements:
• Short term benefits – salaries / fees
• Annual leave benefits
• Post-employment benefits – superannuation
• Share based payments
No non-monetary short-term benefits, prescribed retirement benefits or other post-employment benefits were paid.
The following table discloses the remuneration of the Directors and executives of the Company:
SHORT TERM
EMPLOYEE
BENEFITS -
SALARY
AND FEES
$
108,333
11,000
2019
Richard Crookes
Ian Murray (i)
John de Vries
Stephen Copulos (ii)
Gabriel Chiappini
Other (iii)
BONUS (iv)
POST EMPLOYMENT
BENEFITS -
SUPERANNUATION
SHARE BASED
PAYMENT
(OPTIONS
AND RIGHTS)
TOTAL
% LINKED TO
PERFORMANCE
$
$
$
-
-
-
-
10,292
50,808
169,433
1,045
8,647
20,692
302,645
23,088
75,000
25,000
20,833
49,000
-
-
-
-
-
-
86,383
32,350
59,366
512,116
53,183
108,366
491,811
23,088
75,000
36,337
237,554
863,790
30%
42%
17%
61%
55%
(i) Appointed 2 May 2019
(ii) Resigned 7 November 2018
(iii) Other relates to accrual of annual leave benefits
(iv) On 10 September 2019 the Company announced that the board had agreed to award John de Vries a $75,000 short term
incentive for his performance during the 2019 financial year to be paid 50% cash and 50% in BKT ordinary shares
(shares subject to shareholder approval)
2018
SHORT TERM
EMPLOYEE
BENEFITS -
SALARY
AND FEES
$
OTHER (iii)
POST EMPLOYMENT BENEFITS -
SUPERANNUATION
SHARE BASED
PAYMENT
(OPTIONS AND
RIGHTS)
TOTAL
% LINKED TO
PERFORMANCE
$
$
$
Richard Crookes (i)
62,634
-
John de Vries (ii)
Stephen Copulos
Gabriel Chiappini
300,000
23,089
58,333
39,000
-
-
6,359
20,040
-
-
68,375
89,250
89,250
89,250
459,967
23,089
26,399
336,125
137,368
432,379
147,583
128,250
845,580
50%
21%
61%
70%
(i) Mr Richard Crookes remuneration package consists of an annual salary of $100,000 plus statutory superannuation.
(ii) Mr John de Vries remuneration package consists of an annual salary of $300,000 plus statutory superannuation.
(iii) Other relates to accrual of annual leave benefits.
1212
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only REMUNERATION REPORT (audited) - CONTINUED
Key Terms of Employment Contracts
The Directors and executive are employed under contracts, which have no fixed term.
The contract binding the Executive Director may be terminated by the individual or the Board by giving three months’
notice in writing to terminate the Employment Agreement under which his services are contracted.
The Non-Executive Directors are bound by letter of appointments. The contract of the Non-Executive Director may be
terminated at any time by him by notice in writing or by shareholders acting by majority vote.
Managing Director and Chief Executive Officer Employment Contract
Effective 10 September 2019, Mr John de Vries was promoted to the position of the Managing Director and Chief Executive
Officer and was employed under an Executive Services Agreement with the material terms and conditions being:
Status
Term
Full time
Rolling contract
Notice period
6 months’ notice by either party, notice period extends to 12 months under certain circumstances
Salary
$300,000 per annum (same as current salary)
Superannuation
Statutory Rate
Leave
Short Term
Incentive (STI)
Long Term
Incentives (LTI)
20 days annual leave
Ability to earn up to 50% of base salary as an STI per annum. For the FY19 period the board has
agreed to award John de Vries a $75,000 STI for his performance during FY19 to be paid 50% cash
and 50% in BKT ordinary shares (shares subject to shareholder approval).
Ability to earn up to 50% of base salary as an LTI. For the FY20 year, 3,600,000 unlisted options
issued at nil consideration that will vest in three equal tranches over 12, 18 & 24 months and be
exercisable at $0.15 each and expire three years from date of grant. These options are subject to
shareholder approval. LTI to be reviewed annually.
Other Benefits
Indemnity & Access Deed D&O Insurance
1313
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
REMUNERATION REPORT (audited) - CONTINUED
Share based payment arrangements
Options
The following options were granted during the year, affecting key management personnel remuneration:
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
NUMBER OF
SHARE OPTIONS -
TRANCHE A (i)
NUMBER OF
SHARE OPTIONS -
TRANCHE B (ii)
2,500,000
-
-
3,000,000
5,000,000
2,500,000
-
-
TOTAL
2,500,000
3,000,000
5,000,000
2,500,000
10,000,000
3,000,000
13,000,000
(i) Tranche A – Expiry: 7 November 2021, Exercise price: $0.10, Vesting conditions: 100% on 30 September 2019 subject to
remaining as a director, executive or consultant of the Company. Fair value per share option was $0.0132 computed using a
Black Scholes model.
(ii) Tranche B – Expiry: 2 May 2022, Exercise price: $0.15, Vesting conditions: 50% on 2 May 2020, 50% on 2 May 2021 subject to
remaining as a director, executive or consultant of the Company. At the date of this report these options are yet to be issued
and remain subject to shareholder approval. Fair value per share option was $0.0408 computed using a Black Scholes model.
The options above (13 million) pertain only to those issued to key management personnel during the year and represent
only a portion of the total options issued during the year which are disclosed above.
Details of unissued shares or interests under option held by key management personnel at the date of this report,
excluding those subject to shareholder approval, are:
ISSUING
ENTITY
NUMBER OF SHARES
UNDER OPTION
CLASS OF
SHARES
EXERCISE PRICE
OF OPTION
EXPIRY DATE
OF OPTIONS
Black Rock Mining Ltd
Black Rock Mining Ltd
10,000,000
15,000,000
Ordinary
Ordinary
$0.10
$0.10
7 November 2021
31 August 2020
The holders of these options do not have the right, by virtue of the option, to participate in any share issue or interest
issue of the company.
Performance rights
No new performance rights were issued during the reporting period.
Other information
FINANCIAL TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL
During the financial year the following amounts were paid to Key Management Personnel for services in addition to those
shown elsewhere in this note:
DIRECTOR
VALUE $
DESCRIPTION
Gabriel Chiappini
66,000
Payments to Laurus Corporate Services for financial services provided during
the reporting period includes but not limited to management of the Company
Secretarial function, Company’s Corporate and Administration function,
Accounting and Finance function, Capital Markets & Investor Relations,
Compliance & Corporate Governance and ASX and ASIC requirements.
1414
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only RELATIONSHIP BETWEEN COMPANY PERFORMANCE AND REMUNERATION POLICY
Remunerations levels are not dependent upon any performance criteria as the nature of the Consolidated Entity’s
operations is exploration and they are not generating profit.
The table below sets out summary information about the Company’s earnings and movements in shareholder wealth for
the 5 years to 30 June 2019:
Revenue ($’s)
Net loss before tax ($’s)
Net loss after tax ($’s)
Share Price at start of year
Share Price at year end
2019
7,939
(2,864,024)
(2,864,024)
$0.037
$0.084
2018
2017
2016
2015
24,183
(2,053,080)
(2,053,080)
$0.066
$0.04
187,548
(2,590,371)
(2,590,371)
$0.066
$0.066
$0.1176
11,602
(1,349,305)
(1,349,305)
$0.028
$0.066
$0.005
80,616
(995,121)
(995,121)
$0.02
$0.03
$0.007
Loss per share
$0.00539
$0.00547
Movement in shares
The aggregate number of shares of the Company held directly, indirectly or beneficially by Directors and other
Key Management Personnel of the Company or their personally related entities are as follows:
2019
1 JULY 2018
PURCHASES
RECEIVED ON
EXERCISE OF
OPTIONS/
PERFORMANCE
RIGHTS
SALES
OTHER
CHANGES
30 JUNE 2019
Richard Crookes
500,000
1,562,500
Ian Murray
John de Vries
-
1,291,842
1,650,000
1,562,500
Stephen Copulos
97,379,336
33,333,333
Gabriel Chiappini
5,625,000
625,000
-
-
-
-
-
-
-
-
-
216,864 (i)
-
(33,333,333)
(97,379,336) (ii)
2,062,500
1,508,706
3,212,500
-
-
-
6,250,000
(i) Shares held by Ian Murray at the date of his appointment
(ii) Shares held by Stephen Copulos at the date of his resignation 7 November 2018
Movement in unlisted options
The aggregate numbers of unlisted options of the Company held directly, indirectly or beneficially by specified Directors
and other Key Management Personnel of the Company or their personally related entities are as follows:
2019
1 JULY 2018
OPTIONS
GRANTED
FREE
ATTACHING
OPTIONS
GRANTED AS
REMUNERATION
OPTIONS
LAPSED
OTHER
CHANGES
30 JUNE 2019
VESTED AND
EXERCISABLE
AT 30 JUNE
2019
VESTED
DURING
THE YEAR
Richard Crookes
5,000,000
Ian Murray
-
John de Vries
5,000,000
Stephen Copulos
5,000,000
Gabriel Chiappini
5,000,000
-
-
-
-
-
2,500,000
3,000,000 (i)
5,000,000
-
2,500,000
-
-
-
-
-
-
-
-
7,500,000
3,000,000
10,000,000
(5,000,000) (ii)
-
-
7,500,000
-
-
-
-
-
-
-
-
-
-
(i) At the date of this report these options are yet to be issued and remain subject to shareholder approval.
(ii) Options held by Stephen Copulos at the date of his resignation
1515
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only DIRECTORS’
REPORT
RELATIONSHIP BETWEEN COMPANY PERFORMANCE AND
REMUNERATION POLICY - CONTINUED
Movement in listed options
The aggregate number of listed options of the Company held directly, indirectly or beneficially by specified Directors and
other Key Management Personnel of the Company or their personally related entities are as follows:
2019
1 JULY 2018
OPTIONS
GRANTED FREE
ATTACHING
OPTIONS
EXERCISED
SALES
OTHER
CHANGES (i)
30 JUNE 2019
Richard Crookes
Ian Murray
John de Vries
-
-
-
Stephen Copulos
6,666,666
Gabriel Chiappini
266,666
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,666,666)
(266,666)
-
-
-
-
-
(i) List options expired on 7 November 2018
Movement in performance rights
There were no movements in performance rights of the Company held directly, indirectly or beneficially by specified
Directors and other Key Management Personnel of the Company or their personally related entities during the
financial year.
END OF REMUNERATION REPORT
The director’s report is signed in accordance with a resolution of directors made pursuant to s. 298(2) of the
Corporations Act 2001.
On behalf of the Directors.
Richard Crookes
NON-EXECUTIVE CHAIRMAN
25 September 2019
1616
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only AUDITOR’S
INDEPENDENCE
DECLARATION
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
Deloitte Touche Tohmatsu
123 St Georges Terrace
ABN 74 490 121 060
Perth WA 6000
GPO Box A46
Tower 2, Brookfield Place
Perth WA 6837 Australia
123 St Georges Terrace
Perth WA 6000
Tel: +61 8 9365 7000
GPO Box A46
Fax: +61 8 9365 7001
Perth WA 6837 Australia
www.deloitte.com.au
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
The Board of Directors
Black Rock Mining Limited
45 Ventnor Avenue
West Perth WA 6005
The Board of Directors
Black Rock Mining Limited
25 September 2019
45 Ventnor Avenue
West Perth WA 6005
Dear Board Members
25 September 2019
Auditor’s Independence Declaration to Black Rock Mining Limited
Dear Board Members
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Black Rock Mining Limited.
Auditor’s Independence Declaration to Black Rock Mining Limited
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
year ended 30 June 2019, I declare that to the best of my knowledge and belief, there have
following declaration of independence to the directors of Black Rock Mining Limited.
been no contraventions of:
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
year ended 30 June 2019, I declare that to the best of my knowledge and belief, there have
been no contraventions of:
the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
(i) the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
Yours faithfully
Yours faithfully
DELOITTE TOUCHE TOHMATSU
DELOITTE TOUCHE TOHMATSU
Ian Skelton
Partner
Chartered Accountants
Ian Skelton
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
Liability limited by a scheme approved under Professional Standards Legislation.
1717
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
Interest income
Other revenue
Administrative expenses
Employee benefit expense
Share based payment expense
Exploration expenditure
Consulting expense
Depreciation and amortisation expense
Net foreign currency exchange differences
Other expenses from ordinary activities
Impairment of investments
Loss on disposal of investment
Loss before tax
Income tax benefit
LOSS FOR THE YEAR
Other comprehensive income, net of income tax
Items not reclassified through profit or loss:
Foreign currency translation differences for foreign operations
Fair value movement
NOTE
FOR THE
YEAR ENDED
30/06/2019
$
7,939
-
(317,152)
(707,158)
(431,311)
-
(1,014,579)
(10,675)
(5,071)
(368,949)
(17,068)
FOR THE
YEAR ENDED
30/06/2018
$
11,111
13,073
(579,468)
(160,196)
(244,603)
(374)
(715,239)
(9,845)
(23,998)
(291,541)
-
-
(52,000)
(2,864,024)
(2,053,080)
6
-
-
(2,864,024)
(2,053,080)
912,109
26,807
16,880
87,714
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO
MEMBERS OF BLACK ROCK MINING LIMITED
(1,925,108)
(1,948,486)
Loss for the year attributable to owners of the Company
Total comprehensive loss attributable to the owners of the Company
(2,864,024)
(1,925,108)
(2,053,080)
(1,948,486)
Loss per share
Basic and diluted loss per share
20
(0.00539)
(0.00547)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
1818
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2019
Assets
Current assets
Cash and bank balances
Trade and other receivables
Total current assets
Non-current assets
Exploration & evaluation asset
Property, plant and equipment
Other financial assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
NOTE
7
9
10
11
1,907,467
170,361
1,788,150
141,059
2,077,828
1,929,209
20,978,368
16,574,559
43,379
-
19,077
285,071
21,021,747
16,878,707
23,099,575
18,807,916
658,011
34,724
502,877
21,554
692,735
524,431
692,735
524,431
22,406,840
18,283,485
12
13
14
58,086,890
1,592,979
52,371,878
2,372,792
(37,273,029)
(36,461,185)
22,406,840
18,283,485
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
1919
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
Balance at 30 June 2017
Loss for the year
Other comprehensive income
for the year, net of tax
Total comprehensive income
for the year
Issue of ordinary shares
Cost of share capital issued
Costs of share based payments
Performance rights expired not
vested during the period
Options cancelled during the year
Balance at 30 June 2018
NOTE
12,
13,
14,
12,
13,
14,
Loss for the year
Other comprehensive income
for the year, net of tax
Fair value movement
Total comprehensive income
for the year
Issue of ordinary shares
Cost of share capital issued
Costs of share based payments
Performance rights converted
to ordinary shares
Options expired not vested
during the period
Performance rights expired not
vested during the period
Asset revaluation reserve attributable
to investments disposed of
Balance at 30 June 2019
12,
13,
14,
D
E
U
S
S
I
L
A
T
I
P
A
C
$
S
E
S
S
O
L
D
E
T
A
L
U
M
U
C
C
A
$
47,925,610
(34,763,222)
-
-
-
(2,053,081)
-
87,714
(2,053,081)
87,714
4,740,000
(293,732)
-
-
-
-
-
-
-
355,118
-
-
-
-
-
T
E
S
S
A
E
V
R
E
S
E
R
N
O
I
T
A
U
L
A
V
E
R
E
V
R
E
S
E
R
T
N
E
M
Y
A
P
D
E
S
A
B
E
R
A
H
S
E
V
R
E
S
E
R
N
G
I
E
R
O
F
Y
C
N
E
R
R
U
C
L
A
T
O
T
Y
T
I
U
Q
E
$
-
-
$
$
$
2,510,848
(132,135)
15,541,101
-
-
-
-
-
414,601
(169,998)
(355,118)
-
(2,053,081)
16,880
104,594
16,880
(1,948,487)
-
-
-
-
-
4,740,000
(293,732)
414,601
(169,998)
-
52,371,878
(36,461,185)
87,714
2,400,333
(115,255)
18,283,485
-
-
-
-
(2,864,024)
-
-
-
-
26,807
(2,864,024)
26,807
-
-
-
-
1,737,809
199,850
-
-
-
-
-
-
5,999,500
(382,348)
66,660
31,200
-
-
-
-
-
-
-
-
-
364,651
(31,200)
(1,737,809)
(199,850)
114,521
(114,521)
-
-
(2,864,024)
912,109
-
912,109
26,807
912,109
(1,925,108)
-
-
-
-
-
-
-
5,999,500
(382,348)
431,311
-
-
-
-
58,086,890
(37,273,029)
-
796,125
796,854
22,406,840
The above consolidated statement of changes in equity should be read in conjunction with accompanying notes.
2020
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
Cash flow from operating activities
Payments to suppliers and employees
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
NOTE
(2,272,737)
(1,740,077)
Net cash flows used in operating activities
7.1
(2,272,737)
(1,740,077)
Cash flow from investing activities
Capitalised exploration expenditure
Interest received
Payments for property, plant and equipment
Proceeds on disposal of investment
Government grants received
Payments for security deposits
(3,487,680)
(3,584,304)
7,939
(34,425)
294,810
-
(6,620)
11,111
(7,288)
228,000
359,505
-
Net cash flows used in investing activities
(3,225,976)
(2,992,976)
Cash flows from financing activities
Proceeds from issue of shares and options
Payment of share issue costs
5,999,500
(382,348)
4,740,000
(293,732)
Net cash flows provided by financing activities
5,617,152
4,446,268
Net increase/(decrease) in cash held
Cash at the beginning of the financial year
Effect of exchange movement on cash balances
118,439
1,788,150
878
(286,785)
2,139,779
(64,844)
Cash and cash equivalents at the end of the year
7
1,907,467
1,788,150
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
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BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
1
GENERAL INFORMATION
Statement of compliance
These financial statements are general purpose financial statements, which have been prepared in accordance with the
Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements of the law.
The financial statements comprise the consolidated financial statements of the Group. For the purposes of preparing the
consolidated financial statements, the Company is a for-profit entity.
Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting Standards
ensures that the financial statements and notes of the Company and the Group comply with International Financial
Reporting Standards (‘IFRS’).
The financial statements were authorised for issue by the directors on 25 September 2019.
Going Concern
The financial report has been prepared on the going concern basis which assumes continuity of normal business activities
and the realisation of assets and settlement of liabilities in the ordinary course of business.
The consolidated entity has incurred net losses of $2,864,024 (30 June 2018: $2,053,080), experienced net cash outflows
from operating activities of $2,272,737 (30 June 2018: $1,740,077) and cash outflows from exploration and evaluation
expenditure of $3,487,680 (30 June 2018: $3,584,304) for the year ended 30 June 2019.
During August 2019, the consolidated entity completed a share placement with institutional and sophisticated investors of
37,000,001 shares at $0.07 per share raising $2,590,000 (before capital raising cost). In addition, Directors of the Company
have agreed to participate in the placement and, subject to shareholder approval, a further 5,918,556 shares will be issued
in November 2019 at a price of $0.07 per share raising $414,300 (before capital raising cost).
Based on the consolidated entity’s history of raising capital as and when required, and subject to the general market
conditions, the Directors are confident in the consolidated entity’s ability to raise additional capital. Therefore, the financial
report is prepared on the going concern basis.
2
APPLICATION OF NEW AND REVISED ACCOUNTING STANDARDS
2.1
Amendments to Accounting Standards that are mandatorily effective for the current reporting period
In the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the AASB
that are relevant to its operations and effective for the current annual reporting period.
New and revised standards and amendments thereof and interpretations effective for the current reporting period that
are relevant to the Group include:
• AASB 9 Financial Instruments, and relevant amending standards;
• AASB 15 Revenue from Contracts with Customers, and relevant amending standards
• AASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-based
Payment Transactions
• AASB Interpretation 22 Foreign Currency Transactions and Advance Consideration
The adoption of the aforementioned standards has resulted in an immaterial impact on the financial statements of the
Group as at June 30, 2019. A discussion on the impact of the adoption of AASB 9 and AASB 15 is included below.
The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.
AASB 9 – Financial Instruments
AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets and financial
liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets.
The Group has adopted AASB 9 from July 1, 2018 which have resulted in changes to accounting policies and the analysis
for possible adjustments to amounts recognised in the consolidated financial statements. In accordance with the
transitional provisions in AASB 9, the reclassifications and adjustments are not reflected in the balance sheet as at June 30,
2018 but recognised in the opening balance sheet as at July 1, 2018. The Group has not recognised a loss allowance on
trade and other receivables following an assessment of the impact of the new impairment model introduced by AASB 9.
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BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
2
APPLICATION OF NEW AND REVISED ACCOUNTING STANDARDS - CONTINUED
2.1
Amendments to Accounting Standards that are mandatorily effective for the current reporting period - CONTINUED
CLASSIFICATION AND MEASUREMENT
On July 1, 2018, the Group has assessed financial instruments held by the Group and have classified them into the
appropriate AASB 9 categories. The main effects resulting from this reclassification are shown in the table below.
On adoption of AASB 9, the Group classified financial assets and liabilities measured at either amortised cost or fair
value, depending on the business model for those assets and on the asset’s contractual cash flow characteristics.
There were no changes in the measurement of the Group’s financial instruments other than the Financial Assets where
the Group made an irrevocable election at initial recognition to recognise equity instruments at fair value in other
comprehensive income (“FVOCI”).
There was no material impact on the statement of profit or loss or other comprehensive income or the statement of
changes in equity on adoption of AASB 9 in relation to classification and measurement of financial assets and liabilities.
The following table summarises the impact on the classification and measurement of the Group’s financial instruments
at July 1, 2018:
PRESENTED IN STATEMENT
OF FINANCIAL POSITION
FINANCIAL
INSTRUMENT
AASB 139
AASB 9
REPORTED
RESTATED
Cash and cash equivalents
Bank deposits
Trade and other receivables
Other Financial Assets
Trade and other payables
Loans and
receivables
Available
for Sale
Loans and
receivables
Loans and
receivables
Loans and
receivables
FVOCI
Amortised
cost
Amortised
cost
FVOCI
Amortised
cost
Amortised
cost
$
$
No change
No change
No change
No change
No change
No change
No change
No change
The Group does not currently engage in any hedging activities and accordingly any changes to hedge accounting rules
under AASB 9 do not impact on the Group.
IMPAIRMENT
AASB 9 introduces a new expected credit loss (“ECL”) impairment model that requires the Group to adopt an ECL position
across the Group’s financial assets from July 1, 2018. The loss allowances for financial assets are based on the assumptions
about risk of default and expected loss rates as opposed to the previously applied incurred loss model. The Group uses
judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past
history, existing market conditions as well as forward looking estimates at the end of each reporting period. The Group
has assessed that the risk of default is minimal for trade receivables, and as such, no material impairment loss has been
recognised against these receivables as at June 30, 2019.
AASB 15 – Revenue from Contract with Customers
ADOPTION STATEMENT
The adoption of AASB 15 has not had an impact on the Group’s financial statements. During the year, the Group generated
no revenue from sale of goods or rendering of services. The group recorded interest revenue which is recognised on a
time proportionate basis that takes into account the effective yield on the financial assets.
AASB 16 Leases
AASB 16 was issued in February 2016. It will result in almost all leases being recognised on the balance sheet, as the
distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the
leased item) and a financial liability to pay rentals are recognised. The exceptions are short-term and low-value leases.
The Group has reviewed the Group’s leasing arrangements in light of the new lease accounting rules in AASB 16.
The standard will affect primarily the accounting for the Group’s operating leases.
As at the reporting date, the Group has non-cancellable operating lease commitments of $7,260 (refer Note 19). Of these
commitments, 100% relate to short-term and low value leases which will both be recognised on a straight-line basis as
expense in profit or loss.
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BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1
Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for certain properties
and financial instruments that are measured at revalued amounts or fair values at the end of each reporting period,
as explained in the accounting policies below.
Historical cost is generally based on the fair values of the consideration given in exchange for goods and services.
All amounts are presented in Australian dollars, unless otherwise noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated
using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the
characteristics of the asset or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated
financial statements is determined on such a basis, except for share-based payment transactions that are within the scope
of AASB 2, leasing transactions that are within the scope of AASB 117, and measurements that have some similarities
to fair value but are not fair value, such as net realisable value in AASB 102 ‘Inventories’ or value in use in AASB 136
‘Impairment of Assets’.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the
degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability,
either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
The principal accounting policies are set out below.
3.2
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities (including
structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
• has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses 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 listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during
the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the
Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to
the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and
to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into
line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of
the Group are eliminated in full on consolidation.
2424
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.3
Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised:
3.3.1
Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group
and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
3.4
Foreign currencies
The individual financial statements of each group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each group entity are expressed in Australian dollars (‘$’), which is the
functional currency of the Company and the presentation currency for the consolidated financial statements.
In preparing the financial statements of each individual group entity, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated
at the rates prevailing at that date. Non- monetary items carried at fair value that are denominated in foreign currencies
are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
• exchange differences on foreign currency borrowings relating to assets under construction for future productive use,
which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those
foreign currency borrowings;
• exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
• exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is
neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are
recognised initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the
monetary items.
For the purpose of presenting these consolidated financial statements, the assets and liabilities of the Group’s foreign
operations are translated into Australian dollars using exchange rates prevailing at the end of the reporting period.
Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuated
significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange
differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and attributed to
non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal
involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint
arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset),
all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the
Company are reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result in the
Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed
to non-controlling interests and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals
of associates or joint arrangements that do not result in the Group losing significant influence or joint control),
the proportionate share of the accumulated exchange differences is reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign
operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at
the end of each reporting period. Exchange differences arising are recognised in other comprehensive income.
2525
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.5
Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long service
leave in the period the related service is rendered.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the
remuneration rate expected to apply at the time of the settlement.
Liabilities recognised in respect of long term benefits are measured as the present value of the estimated future cash
outflows to be made by the Group in respect of services provided by employees up to reporting date.
3.6
Share-based payment transactions
The Company provides benefits to employees and others (i.e. consultants) of the Company in the form of share-based
payment transactions, whereby employees and others render services in exchange for shares or rights over shares
(“Equity–settled transactions”).
There is currently one plan in place to provide these benefits being an Employee Share Option Plan (“ESOP”),
which provides benefits to Directors, senior executives and staff. The cost of these equity-settled transactions is
measured by reference to fair value at the date at which they are granted. An external valuer using an appropriate
valuation model determines the fair value.
In valuing equity-settled transactions, no account is taken of any performance conditions, other than conditions linked to
the price of the shares of Black Rock Mining Limited (“market conditions”).
The cost of equity settled securities 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”).
3.7
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
3.7.1 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported
in the consolidated statement of profit or loss and other comprehensive income because of items of income or expense
that are taxable or deductible in other years and items that are never taxable or deductible. The Group’s current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
3.7.2 Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not
recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets
and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries
and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets
arising from deductible temporary differences associated with such investments and interests are only recognised to the
extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary
differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.7
Taxation - CONTINUED
3.7.2 Deferred Tax - CONTINUED
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences
that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.
Deferred tax liabilities and assets are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to
settle its current tax assets and liabilities on a net basis.
3.7.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other
comprehensive income or directly in equity, respectively. Where current tax or deferred tax arises from the initial
accounting for a business combination, the tax effect is included in the accounting for the business combination.
Black Rock Mining Limited and its wholly owned Australian controlled entities have implemented the tax
consolidation legislation.
The head entity, Black Rock Mining Limited, and the controlled entities in the tax-consolidation group account for their
own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax-consolidation group
continues to be a stand-alone entity in its own right.
In addition to its own current and deferred tax amounts, Black Rock Mining Limited also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from
controlled entities in the tax-consolidation group.
3.8
Property, Plant and Equipment
Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and
impairment losses.
Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable. For an asset that does not generate largely independent cash inflows,
the recoverable amount is determined for the cash-generating unit to which the asset belongs. If any such indication exists
where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down
to their recoverable amount.
Depreciation
Depreciable non-current assets are depreciated over their expected economic life using the straight-line method.
Profits and losses on disposal of non-current assets are taken into account in determining the operating loss for the year.
The depreciation rate used for each class of assets is as follows:
Plant and equipment: 7.5% - 67%
2727
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.9
Exploration Expenditure
Exploration, evaluation and development expenditure incurred is accumulated in respect of each identifiable area of
interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful
development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment
of the existence of economically recoverable reserves, otherwise costs are expensed.
Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to
abandon the area is made.
When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the
area according to the rate of depletion of the economically recoverable reserves.
A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward
costs in relation to that area of interest.
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in
the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the permits. Such costs have been
determined using estimates of future costs, current legal requirements and technology on a discounted basis.
Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site
restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and
future legislation. Accordingly, the costs have been determined on the basis that the restoration will be completed within
one year of abandoning the site.
3.10
Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can
be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the
smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at
least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows
have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the
impairment loss is treated as a revaluation decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is
carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.11 Financial Instruments
Trade and Other Receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at amortised cost using the
effective interest rate method, less provision for impairment.
If collection of amounts is expected in one year or less, they are classified as current assets. If not, they are presented
as non-current assets. As the majority of trade and other receivables are short term in nature, their carrying value is
assumed to be the same as their fair value. Financial assets at fair value through other comprehensive income (FVOCI)
comprise equity securities which are not held for trading and which the Group has irrevocably elected at initial recognition
is this category.
Cash and Cash Equivalent
Cash and cash equivalents includes cash on hand and deposits held at call which are subject to insignificant risk of
changes in value.
Trade and Other Payables
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months from the reporting date.
3.12 Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”), except:
i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense.
ii. for receivables and payables which are recognised inclusive of GST.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified within
operating cash flows.
4
CRITICAL ACCOUNTING JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
In the application of the Group’s accounting policies, which are described in note 3, the directors of the Company are
required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not
readily apparent from other sources. The estimates and associated assumptions are based on historical experience and
other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
4.1
Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations, that the directors have made in the
process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in
the consolidated financial statements.
4.2
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end
of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year.
2929
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
4
CRITICAL ACCOUNTING JUDGEMENTS IN APPLYING ACCOUNTING POLICIES - CONTINUED
4.2
Key sources of estimation uncertainty - CONTINUED
4.2.1
Impairment
The consolidated entities assess impairment at each reporting date by evaluating conditions specific to the consolidated entities
that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.
The Group’s policy on the capitalisation of exploration and evaluation expenditure is detailed in note 3.9 and Impairment at
note 3.10. In considering if an impairment event has been triggered the Company took into account positive results from its
exploration programme and successful completion of the recent Optimisation Study and a JORC compliant resource.
4.2.2 Share based payments
The Consolidated Entities measure 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 using an appropriate model.
One of the inputs into the option valuation model is volatility of the underlying share price, which is estimated on the
one-year history of the share price and has been estimated as approximately 80% to 122%.
5
SEGMENT REPORTING
Information reported to the chief operating decision maker (CODM) for the purpose of resource allocation and assessment
of segment performance focuses on the geographical location of resources being explored for and evaluated. The Group’s
principal activity and focus is that of Graphite in Tanzania.
5.1
Segment revenues and results
2019
Interest
Total revenue
Loss before tax
Fixed asset additions
Depreciation
2019
Total segment assets
Total segment liabilities
2018
Total revenue
Loss before tax
Fixed asset additions
Depreciation
Impairment
2018
Total segment assets
Total segment liabilities
3030
GRAPHITE
CORPORATE
CONSOLIDATED
$
-
-
$
7,939
7,939
$
7,939
7,939
(214,771)
(2,649,253)
(2,864,024)
17,835
4,445
16,589
6,181
34,424
10,626
GRAPHITE
CORPORATE
CONSOLIDATED
14,590,461
8,509,114
23,099,575
78,714
614,021
692,735
GRAPHITE
CORPORATE
CONSOLIDATED
$
-
$
$
24,184
24,184
(178,197)
(1,874,883)
(2,053,080)
-
2,598
-
8,832
7,247
-
8,832
9,845
-
GRAPHITE
CORPORATE
CONSOLIDATED
12,705,698
6,102,218
18,807,916
107,708
416,723
524,431
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only 6
INCOME TAXES
(a)
Income tax (benefit)/expense
Current tax
Deferred tax
(b)
Numerical reconciliation of income tax expense to prima facie tax payable
Loss for the year
Loss from operations
Prima facia tax benefit at 27.5% (2018: 30%)
Share based payments
Non-deductible expenditure
Movement in unrecognised temporary differences
Unused tax losses for which no deferred tax asset has been recognised
Income tax benefit
(c)
Recognised deferred tax assets and liabilities
Recognised deferred tax assets comprise:
Other temporary differences
Tax losses available for offset against future taxable income
Recognised deferred tax liabilities comprise:
Exploration and evaluation
Unrealised foreign exchange movements
Other financial assets
FOR THE
YEAR ENDED
30/06/2019
FOR THE
YEAR ENDED
30/06/2018
$
-
-
-
$
-
-
-
(2,864,024)
(2,864,024)
(2,053,080)
(2,053,080)
(787,607)
100,279
69,566
(59,127)
676,889
-
(564,597)
230,640
65,990
(76,441)
344,408
-
184,450
1,586,989
1,771,439
106,028
997,634
1,103,662
1,769,357
1,079,541
2,082
-
1,771,439
-
24,121
1,103,662
Unrecognised deferred tax assets
Unused tax losses for which no deferred tax asset has been recognised are $16,622,065 (2018: $15,878,433) all of which
originate within Australia. Potential tax benefit is $4,571,068 (2018: $4,366,569). The Company is still in the process of
reviewing the continuity of ownership test and same business test in determining whether these unrecognised tax losses
can be utilised in future financial reporting periods.
(d)
Franking credits
The Company has no franking credits available as at 30 June 2019 (2018: Nil).
(e)
Tax Consolidation
The Company and its wholly owned Australian resident entities have formed a tax-consolidated group with effect from
1 July 2004 and are therefore taxed as a single entity from that date. The head Company of the consolidated group is
Black Rock Mining Limited.
3131
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
7
CASH AND CASH EQUIVALENTS
For the purposes of the consolidated statement of cash flows, cash and cash equivalents include cash on hand and in
banks, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the reporting period as shown in the
consolidated statement of cash flows can be reconciled to the related items in the consolidated statement of financial
position as follows:
FOR THE
YEAR ENDED
30/06/2019
$
1,907,467
1,907,467
FOR THE
YEAR ENDED
30/06/2018
$
1,788,150
1,788,150
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
(2,864,024)
(2,053,081)
10,675
431,311
5,071
-
-
-
17,068
(7,939)
9,845
263,208
32,243
(11,111)
31,250
52,000
-
-
(2,407,838)
(1,675,646)
(22,682)
144,613
13,170
(103,179)
69,767
(31,019)
(2,272,737)
(1,740,077)
FOR THE
YEAR ENDED
30/06/2019
$
31,200
FOR THE
YEAR ENDED
30/06/2018
$
-
Cash and bank balances
7.1
Reconciliation of loss for the year to net cash flows from operating activities
Loss after income tax
Depreciation and amortisation of non-current assets
Share based payments to key management personnel
Net foreign exchange gain/(loss)
Investment revenue recognised in profit or loss
Exploration expenditure paid in shares
Loss/(gain) on disposal of investment
(Reversal)/impairment of investments
Interest revenue transferred to investing activity
Movements in working capital:
Decrease/(increase) in trade and other receivables
Increase/(decrease) in trade and other payables
Increase/(decrease) in employee entitlements provision
Net cash used in operating activities
7.2 Non Cash transactions
Financing activity
Performance rights exercised into shares
3232
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only 8
SUBSIDIARIES
Details of the Group’s material subsidiaries at the end of the reporting period are as follows:
NAME OF SUBSIDIARY
PLACE OF INCORPORATION
AND OPERATION
PROPORTION OF OWNERSHIP INTEREST
AND VOTING POWER HELD BY THE GROUP
Green Rock Energy International Pty Ltd
Green Rock (Vulcan) Energy Kft
Mahenge Resources Limited
Australia
Hungary
Tanzania
9
EXPLORATION AND EVALUATION ASSET
In the exploration phase
Balance at beginning of year
Expenditure incurred during the year (at cost)
Foreign exchange effect
Balance at end of year
Reconciliation of Expenditure incurred during the year (at cost):
Cash paid for exploration and evaluation
Accruals in prior year
Accruals in current year
Research and development offset received
Total expenditure incurred during the year (at cost)
FOR THE
YEAR ENDED
30/06/2019
FOR THE
YEAR ENDED
30/06/2018
100%
100%
100%
100%
100%
100%
FOR THE
YEAR ENDED
30/06/2019
$
16,574,559
3,487,680
916,128
FOR THE
YEAR ENDED
30/06/2018
$
13,540,833
3,245,186
(211,459)
20,978,368
16,574,559
FOR THE
YEAR ENDED
30/06/2019
$
3,686,379
(235,262)
36,563
-
FOR THE
YEAR ENDED
30/06/2018
$
3,584,305
(214,501)
235,262
(359,880)
3,487,680
3,245,186
The ultimate recoupment of capitalised exploration expenditure is dependent upon the successful development and/or
commercial exploitation or, alternatively through the sale of the respective underlying licenses.
The balance of $20,978,368 (2018: $16,574,559) at reporting date represents the carrying value of its Graphite assets
in Tanzania.
3333
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
10 OTHER FINANCIAL ASSETS (NON-CURRENT)
Shares in UIL Energy Limited (at fair value)
FOR THE
YEAR ENDED
30/06/2019
$
-
-
FOR THE
YEAR ENDED
30/06/2018
$
285,071
285,071
During the year Strike Energy Limited (ASX: STX) made a compulsory takeover of the shares in UIL Energy Limited.
The Company subsequently disposed of the STX shares receiving gross proceeds of $294,810. As STX was not a core
asset of the business, the Company disposed of the shares with the funds used to continue advancing its Mahenge
Graphite Project and for general working capital purposes.
11
TRADE AND OTHER PAYABLES
Trade creditors
Accruals
Other liabilities
FOR THE
YEAR ENDED
30/06/2019
$
284,159
310,650
63,202
658,011
FOR THE
YEAR ENDED
30/06/2018
$
246,140
230,176
26,561
502,877
Included in trade creditors and accruals is an amount of $36,563 (2018: $235,262) relating to exploration expenditure.
12
ISSUED CAPITAL
585,550,851 ordinary shares issued and fully paid (30 June 2018: 443,734,701)
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
58,086,890
58,086,890
52,371,878
52,371,878
3434
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only 12
ISSUED CAPITAL - CONTINUED
12.1 Fully paid ordinary shares
Balance at 30 June 2017
Shares issued 13 November 2017 ($0.06 per share) – Cash
Shares issued 11 January 2018 ($0.06 per share) – Cash
Less: capital raising costs
Balance at 30 June 2018
Shares issued 6 September 2018 ($0.032 per share) – Cash
Shares issued 5 November 2018 ($0.033 per share) – Non-cash
Shares issued 22 November 2018 ($0.032 per share) – Cash
Shares issued 14 December 2018 ($0.039 per share) – Non-cash
Shares issued 18 March 2018 ($0.065 per share) – Cash
Shares issued 18 March 2018 ($0.066 per share) – Non-cash
Less: capital raising costs
Balance at 30 June 2019
NUMBER OF
SHARES
SHARE
CAPITAL
$
364,734,701
47,925,610
70,000,000
9,000,000
-
4,200,000
540,000
(293,732)
443,734,701
52,371,878
78,125,000
2,500,000
220,000
15,625,000
800,000
7,260
500,000
31,200
46,146,150
2,999,500
900,000
-
59,400
(382,348)
585,550,851
58,086,890
12.2 Options
LISTED OPTIONS
OPENING
BALANCE
NO.
Expiring 30 November 2018 at $0.075
33,966,655
EXERCISED
IN YEAR
NO.
-
GRANTED
IN YEAR
NO.
EXPIRED
IN YEAR
NO.
-
33,966,655
CLOSING
BALANCE
NO.
-
UNLISTED OPTIONS
Expiring 12 April 2020 at $0.20
Expiring 31 August 2020 at $0.10
Expiring 31 August 2020 at $0.10
Expiring 31 August 2020 at $0.10
Expiring 31 August 2020 at $0.10
Expiring 7 Nov 2021 at $0.10
Expiring 18 Dec 2021 at $0.10
Expiring 14 Mar 2021 at $0.20
Expiring 9 Jul 2021 at $0.07
Expiring 31 Oct 2021 at $0.10
Expiring 2 May 2022 at $0.10 (1)
OPENING
BALANCE
NO.
EXERCISED
IN YEAR
NO.
GRANTED
IN YEAR
NO.
EXPIRED
IN YEAR
NO.
CLOSING
BALANCE
NO.
5,000,000
6,250,000
6,250,000
6,250,000
6,250,000
-
-
-
-
-
-
30,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,000,000
3,000,000
5,000,000
5,000,000
1,000,000
3,000,000
30,000,000
-
-
-
-
-
-
-
-
-
-
-
5,000,000
6,250,000
6,250,000
6,250,000
6,250,000
13,000,000
3,000,000
5,000,000
5,000,000
1,000,000
3,000,000
60,000,000
(1) Granted but not issued in the June 2019 financial year
The weighted average exercise price of options at 30 June 2019 is $0.12
The weighted average remaining contractual life of options as at 30 June 2019 is 634 days (2018: 723 days).
3535
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
13 RESERVES (NET OF INCOME TAX)
Reserves
Share based payments reserve (i)
Foreign translation reserve (ii)
Asset revaluation reserve (iii)
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
796,125
796,854
-
2,400,333
(115,255)
87,714
1,592,979
2,372,792
(i)
Share Based Payments Reserve
The share based payments reserve comprises any equity settled share based payment transactions and other options
transactions. The reserve will be reversed against share capital when the underlying rights are exercised.
Balance at the beginning of the year
Add: Share based payments to consultants
Add: Amounts expensed in the current year
Less: Options expired in the current year
Less: Performance rights expired not vested during the year
Less: Performance rights vested and exercised
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
2,400,333
2,510,849
13,224
351,427
(1,737,809)
(199,850)
(31,200)
796,126
-
414,601
(355,118)
(169,999)
-
2,400,333
(ii)
Foreign Translation Reserve
The foreign translation reserve arises on the consolidation of the Group’s overseas subsidiary companies, Green Rock
(Vulcan) Energy Kft and Mahenge Resources Limited.
(iii)
Asset Revaluation Reserve
The asset revaluation reserve arises from the revaluation of the Group’s listed equity investment in UIL Energy Limited and
subsequently Strike Energy Limited (ASX: STX).
During the year Strike Energy Limited (ASX: STX) made a successful compulsory takeover of the shares in UIL Energy
Limited and the Company disposed of the STX shares receiving gross proceeds of $294,810. As such the Asset revaluation
reserve has been transferred to Accumulated losses.
14 ACCUMULATED LOSSES
Balance at beginning of the year
Net loss attributable to members
Transfer from share option reserve
Transfer from asset revaluation reserve
Balance at end of year
3636
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
36,461,185
34,763,222
2,864,024
(1,937,659)
(114,521)
2,053,081
(355,118)
-
37,273,029
36,461,185
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only 15 SHARE BASED PAYMENTS
(a)
Employee Share Incentive Scheme
The establishment of the Black Rock Mining Limited Employee Share Incentive Option Plan (“the Plan”) was initially
approved by special resolution at a General Meeting of shareholders of the Company held on 21 November 2006 and
approval renewed by shareholders on 18 November 2009 and 28 November 2013. All eligible Directors, executive officers
and employees of Black Rock Mining Limited are eligible to participate in the Plan.
The Plan allows the Company to issue options to eligible persons. The options can be granted free of charge and are
exercisable at a fixed price calculated in accordance with the Plan.
The fair value of the equity-settled share options granted is estimated as at the date of grant using a binomial/trinomial
lattice model taking into account the terms and conditions upon which the options were granted.
The share based payment arrangements that were in existence during current and prior-reporting periods is detailed in
note 13 (i). During the year, the shared based payment expense recognised in the consolidated statement of profit and
loss totaled $364,651 (2018: $256,125).
Share based payment arrangements relating to Directors and employees:
GRANT
DATE
EXPIRY
DATE
EXERCISE
PRICE
NUMBER
OF OPTIONS
AT THE
BEGINNING
OF THE YEAR
OPTIONS
GRANTED
THIS YEAR
OPTIONS
EXERCISED
THIS YEAR
OPTIONS
LAPSED,
EXPIRED
THIS YEAR
NUMBER OF
OPTIONS AT
THE END OF
THE YEAR
OPTIONS
EXERCISABLE
AT THE END
OF THE YEAR
FAIR VALUE
AT GRANT
DATE
17-10-17
31-08-20
$0.10
1,250,000
17-10-17
31-08-20
$0.10
1,250,000
17-10-17
31-08-20
$0.10
1,250,000
17-10-17
31-08-20
$0.10
1,250,000
28-10-17
31-08-20
$0.10
3,750,000
28-11-17
31-08-20
$0.10
3,750,000
28-11-17
31-08-20
$0.10
3,750,000
28-11-17
31-08-20
$0.10
3,750,000
-
-
-
-
-
-
-
-
08-11-18
31-10-21
07-11-18
07-11-21
02-05-19
02-05-22
02-05-19
02-05-22
$0.10
$0.10
$0.15
$0.15
-
1,000,000
- 10,000,000
-
-
1,500,000
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,250,000
1,250,000
$0.0019
1,250,000
1,250,000
$0.0040
1,250,000
1,250,000
$0.0112
1,250,000
1,250,000
$0.0376
3,750,000
3,750,000
$0.0122
3,750,000
3,750,000
$0.0140
3,750,000
3,750,000
$0.0193
3,750,000
3,750,000
$0.0259
1,000,000
1,000,000
$0.0094
- 10,000,000
-
-
1,500,000
1,500,000
-
-
-
$0.0132
$0.0408
$0.04076
Mr Crookes
TRANCHE
Grant date
Number of options
Method
Grant date share price (cents)
Exercise price (cents)
Expected volatility
Option life
Dividend yield
Risk-free interest rate
3737
TRANCHE A
TRANCHE B
TRANCHE C
TRANCHE D
17-Oct-17
1,250,000
Trinomial
6
10
100%
17-Oct-17
1,250,000
Trinomial
6
20
100%
17-Oct-17
1,250,000
Trinomial
6
30
100%
17-Oct-17
1,250,000
Trinomial
6
40
100%
2.83 years
2.83 years
2.83 years
2.83 years
Nil
1.92%
Nil
1.92%
Nil
1.92%
Nil
1.92%
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
15 SHARE BASED PAYMENTS - CONTINUED
(a)
Employee Share Incentive Scheme - CONTINUED
Messrs de Vries, Copulos & Chiappini
TRANCHE A
TRANCHE B
TRANCHE C
TRANCHE D
28-Nov-17
3,750,000
Trinomial
7.4
10
100%
28-Nov-17
3,750,000
Trinomial
7.4
20
100%
28-Nov-17
3,750,000
Trinomial
7.4
30
100%
28-Nov-17
3,750,000
Trinomial
7.4
40
100%
2.75 years
2.75 years
2.75 years
2.75 years
Nil
1.89%
Nil
1.89%
Nil
1.89%
Nil
1.89%
TRANCHE A
7-Nov-18
10,000,000
Trinomial
3.8
10
79%
3.00
Nil
1.25%
TRANCHE A
TRANCHE B
2-May-19
1,500,000
2-May-19
1,500,000
Black scholes
Black scholes
7.1
15
118%
3.01
Nil
1.26%
7.1
15
118%
3.01
Nil
1.26%
TRANCHE
Grant date
Number of options
Method
Grant date share price (cents)
Exercise price (cents)
Expected volatility
Option life
Dividend yield
Risk-free interest rate
Messrs de Vries, Crookes & Chiappini
TRANCHE
Grant date
Number of options
Method
Grant date share price (cents)
Exercise price (cents)
Expected volatility
Option life (years)
Dividend yield
Risk-free interest rate
Mr Murray
TRANCHE
Grant date
Number of options
Method
Grant date share price (cents)
Exercise price (cents)
Expected volatility
Option life (years)
Dividend yield
Risk-free interest rate
3838
BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only
15 SHARE BASED PAYMENTS - CONTINUED
(a)
Employee Share Incentive Scheme - CONTINUED
The following reconciles the outstanding share options granted under the Plan at the beginning and end of the
financial year.
2019
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
2018
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
Balance at the beginning of the financial year
20,000,000
Granted during the financial year:
- Directors
- Employees
Forfeited/Expired
Exercised
13,000,000
1,000,000
-
-
Balance at the end of the financial year
Vested and Exercisable at the end of the year
34,000,000
20,000,000
(CENTS)
10.00
11.15
10.00
-
-
10.44
10.00
-
-
20,000,000
10.00
-
-
-
20,000,000
20,000,000
-
-
-
10.00
10.00
Expected volatility is based on the movement of the underlying share price around its average price over the expected
term of the option.
Balance at end of the financial year
The share options outstanding and exercisable at the end of the financial year under the Plan had exercise price of
$0.10 (2018: $0.10) and a weighted average remaining contractual life of 428 days (2018: 723 days).
(b)
Share Based Payments – Other
During the period share options were issued to a consultant of the company as follows in lieu of mandated monthly fees
as part of a strategic consulting agreement:
GRANT
DATE
EXPIRY
DATE
EXERCISE
PRICE
NUMBER OF
OPTIONS
AT THE
BEGINNING
OF THE YEAR
OPTIONS
GRANTED
THIS YEAR
OPTIONS
EXERCISED
THIS YEAR
NUMBER OF
OPTIONS AT
THE END OF
THE YEAR
OPTIONS
EXERCISABLE
AT THE END
OF THE YEAR
FAIR VALUE
AT GRANT
DATE
7/11/18
7/11/18
14/3/21
9/7/21
18/12/18
18/12/21
$0.20
$0.07
$0.10
-
-
-
5,000,000 (i)
5,000,000 (ii)
3,000,000 (iii)
-
-
-
5,000,000
5,000,000
3,000,000
-
-
-
$0.0027
$0.0094
$0.0096
The options may only be exercised where the following vesting conditions have been satisfied:
(i) Vest on 1 July 2019
(ii) Vest on 18 December 2019
(iii) Vest on 18 December 2019
3939
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NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
15 SHARE BASED PAYMENTS - CONTINUED
(b)
Share Based Payments – Other - CONTINUED
Grant date
Number of options
Method
Grant date share price (cents)
Exercise price (cents)
Expected volatility
Option life
Dividend yield
Risk-free interest rate
TRANCHE A
TRANCHE B
TRANCHE C
7-Nov-18
5,000,000
Trinomial
4
20
79%
7-Nov-18
5,000,000
Trinomial
4
7
79%
2.35 years
2.67 years
Nil
1.25%
Nil
1.25%
18-Dec-18
3,000,000
Trinomial
4
10
79%
3 years
Nil
1.79%
(c)
Performance rights
No performance rights were granted during the 2019 financial year.
16 KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel of Black Rock Mining Limited during the year were:
Richard Crookes
Non-Executive Chairman
Appointed – 16 October 2017
Ian Murray
John de Vries
Non-Executive Director
Appointed – 2 May 2019
Chief Executive Officer
& Managing Director
Appointed – 16 March 2017
Stephen Copulos
Non-Executive Director
Appointed – 22 January 2015
Resigned – 7 November 2018
Gabriel Chiappini
Non-Executive Director
Company Secretary
Appointed – 21 March 2012
Details of the remuneration of key management personnel are set out as follows:
FOR THE
YEAR ENDED
30 JUNE 2019
$
FOR THE
YEAR ENDED
30 JUNE 2018
$
491,811
36,337
237,554
75,000
23,088
863,790
459,967
26,399
336,125
-
23,089
845,580
Short-term employee benefit
Post-employment benefits
Share-based payments
Bonus
Other
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BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only 17 REMUNERATION OF AUDITORS
Auditor of the parent entity
During the year the following fees were paid or were payable for services provided by the auditor of the Company,
its network firms and non-related audit firms:
Audit or review of the financial statements (Parent auditor)
Audit or review of the financial statements (Other group entities auditor)
The auditor of Black Rock Mining Limited is Deloitte Touche Tohmatsu.
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
28,605
10,512
39,117
33,705
16,078
49,783
18 RELATED PARTY TRANSACTIONS
Remuneration details for Directors and Executives are included in the Remuneration Report and have been audited.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have
been eliminated on consolidation and are not disclosed in this note.
During the reporting period the following amounts were paid to Key Management Personnel for services in addition to
those shown elsewhere in this note:
DIRECTOR
VALUE
DESCRIPTION
Gabriel Chiappini
$66,000
Payments to Laurus Corporate Services for financial services provided during
the reporting period including but not limited to, Company Secretary, Capital
Markets and Investor Relations, Accounting, Bookkeeping, Management of Tax
and Audit requirements and administration.
19 EXPENDITURE COMMITMENTS
a.
Exploration
As part of the Company’s license conditions with the Tanzanian Energy and Minerals Department, the Company is obliged
to pay the below amounts per square kilometer to keep its tenements in good standing.
The license costs per annum are as follows:
PROJECT NAME
LICENSE TYPE
LICENSE NUMBER
AREA KM²
RATE PER KM²
TOTAL
Mahenge North
Mahenge North
Mahenge North
Makonde
Mahenge East
Mining License
Mining License
ML 611/2019
ML 612/2019
9.94
9.79
USD 2,000
USD 19,880
USD 2,000
USD 19,580
Prospecting License
PL 13752/2019
118.37
Prospecting License
PL 10111/2014
Prospecting License
PL 10426/2014
12.55
77.46
111.6
USD 100
USD 150
USD 150
USD 150
USD 11,837
USD 1,883
USD 11,619
USD 16,740
Mahenge Southwest
Prospecting License
PL 10427/2014
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NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
19 EXPENDITURE COMMITMENTS - CONTINUED
a.
Exploration - CONTINUED
As part of the original conditions to acquire the exploration licences there were minimum exploration expenditure
commitments. These have all been met by 30 June 2019.
As part of the contract to acquire the graphite exploration licences, under certain milestone conditions the Company will
be obliged to make additional payments. These payments are subject to the following conditions:
Exploration licence PL7802/2012
There are no milestone vendor payments or commitments remaining with PL7802/2012.
Exploration licence PL10111/2014, PL10426/2014 and PL10427/2014
• $250,000 cash or equivalent number of fully paid Black Rock Mining shares (at the election of the vendor) upon
announcement of a JORC compliant resource of greater than 250,000 tonnes of contained graphite at >9% TGC is
announced. Issue price of shares to be calculated based on the preceding seven (7) day VWAP; and
• $375,000 cash and the equivalent value ($375,000) in Black Rock Mining Shares to be paid when a JORC compliant
Resource with greater than 1,000,000 tonnes of contained graphite at >9% total graphite content at any of the Projects
is announced by Black Rock Mining on the ASX. The issue price of BKT Shares is to be calculated based on the VWAP of
Black Rock Mining Shares in the 5 days prior to the release of the announcement.
Exploration Programme
There are no commitments to exploration as at the date of this report.
b.
Capital Commitments
The Group has no capital commitments (2018: Nil).
c.
Operating Lease Commitments
On the 7 January 2019 the Company entered into a license agreement for its service office at 45 Ventnor Avenue,
West Perth with the following applicable terms and conditions:
Commencement date: 7 January 2019
Expiry date: 6 July 2019
Monthly License fee: $2,420 inc. GST
Notice period: from 7 July 2019 either party may terminate the license by providing 60 days notice.
At 30 June 2019 the Company had a commitment under the license of $7,260 inc GST all of which is due and payable
within 6 months.
The Group has assessed its non-cancellable operating lease commitments and does not expect AASB 16 to have a material
impact on the financial statements on 1 July 2019.
There were no operating lease commitments as at 30 June 2018.
d.
Contractual Commitments
As at 30 June 2019, the Group had no contractual expenditure commitments in place.
(June 2018: Definitive Feasibility Study $787,520)
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20 LOSS PER SHARE
The following reflects the profit/ (loss) and share details used in the calculation of basic and diluted profit/ (loss) per share:
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
Profit/(Loss) used in calculating basic and diluted loss per share
(2,864,024)
(2,053,080)
Weighted average number of ordinary shares used in calculating basic and diluted
profit/(loss) per share:
530,943,396
375,330,191
Basic and diluted profit/(loss) per share
($0.00539)
($0.00547)
The consolidated entity’s options potentially dilute basic earnings per share in the future. However, they have been
excluded from the calculations of diluted earnings per share because they are anti-dilutive and out of the money for the
years presented. The adoption of AASB 9 and AASB 15 have had no impact on loss per share.
21 FINANCIAL INSTRUMENTS
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while
maximizing the return to stakeholders through the optimization of the debt and equity balances. The Group’s overall
strategy remains unchanged from 2018.
The Group holds the following financial instruments, all of which the fair value is equal to the carrying value:
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Provisions
Total financial liabilities
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
1,907,467
170,361
2,077,828
1,788,150
141,059
1,929,209
(658,011)
(34,724)
(692,735)
(502,877)
(21,554)
(524,431)
Net financial instruments
1,385,093
1,404,778
The capital structure of the Group consists of net debt (borrowings offset by cash and bank balances as detailed in note 7)
and equity of the Group (comprising issued capital, reserves and accumulated losses as detailed in notes 12, 13 and 14).
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BLACK ROCK MINING LIMITED 2019 ANNUAL REPORTBLACK ROCK MINING LIMITED 2019 ANNUAL REPORTFor personal use only NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
21 FINANCIAL INSTRUMENTS - CONTINUED
21.1 Capital Management
The main focus of the Group’s capital management policy is to ensure adequate working capital to fund the
exploration and development activities of its various geothermal projects. This is done through the close monitoring
of cash flow projections.
The Group’s working capital as at balance date was:
Cash and bank balances
Trade and other receivables
Trade and other payables
21.2 Financial risk management
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
1,907,467
1,788,150
170,361
(658,011)
141,059
(502,877)
1,419,817
1,426,332
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk and interest rate),
credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group does
not use derivative financial instruments.
Risk management is the responsibility of the Board of Directors.
21.2.1 Market risk
a.
Foreign exchange risk
The Group transacts in US Dollars in relation to its Tanzanian operations is exposed to foreign exchange currency
movements arising from various currency exposures, primarily with respect to the US Dollar and the Tanzanian Shilling.
Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the entity’s
functional currency and net investments in foreign operations.
The Group’s exposure to foreign currency risk at the reporting date was as follows:
GROUP SENSITIVITY
The parent entity advances funds to the Tanzanian subsidiary in US Dollars. The foreign exchange is recognised in the
parent entity.
The consolidated entity’s pre-tax loss for the year would have been $19,811 higher/lower (2018: $58,845 higher/ lower)
had the Australian dollar strengthened/weakened by 10% against the US Dollar.
b.
Cash flow and fair value interest rate risk
The Group is exposed to interest rate risk through cash and cash equivalents $1,907,467 (2018: $1,788,150).
At 30 June 2019, if the interest rates had weakened/strengthened by 100 basis points from the year-end rates with all
other variables held constant, post-tax profit for the year would have been $794 lower/higher (2018: $894 lower/higher)
mainly as a result of interest income deceases/increases.
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21 FINANCIAL INSTRUMENTS - CONTINUED
c.
Credit risk
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents as well as credit exposures to
customers, including outstanding receivables and committed transactions.
Cash and cash equivalents are held with recognisable banking and financial institutions. The maximum exposure to credit
risk for cash and cash equivalents is the carrying value.
Other receivables are due from third parties considered credit worthy. The maximum exposure to credit risk for other
receivables at the reporting date is the carrying amount. The ageing analysis of receivables is as follows:
DEBTOR
Trade receivables
< 30 DAYS
$62,807
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.
d.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash to ensure that the Group’s liabilities can be settled as
and when they become due.
MATURITIES OF FINANCIAL LIABILITIES
The tables below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining
period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
CREDITOR
Trade payables
FAIR VALUE ESTIMATION
<1 MONTH
$658,011
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes. The carrying values less impairment provision of trade receivables and payables are assumed to
approximate their fair values due to their short-term nature.
22 CONTINGENT LIABILITIES
There were no material contingent liabilities as at 30 June 2019.
23 EVENTS AFTER THE REPORTING DATE
Other than the below, the Directors are not aware of any matter or circumstance that has significant or may significantly
affect the operation of the Company or the results of those operations, or the state of affairs of the Company in
subsequent financial years.
- On 25 July 2019 the Company announced it had enhanced the 100% owned Mahenge Graphite Project DFS released on
24 October 2018 to include a fourth production module, and a compressed development schedule.
- On 15 August 2019 the Company announced it had completed a large-scale spheronising and purification trial using
400kg of sub 80 mesh concentrate generated during the March 2019 Pilot Plant run (refer ASX release 3 April 2019).
- On 16 August 2019 the Company announced it had completed a placement to raise $3.0 million (before costs) by
issuing 42,857,143 shares at $0.07 per share.
- On 10 September 2019 the Company appointed the current Chief Executive Officer & Executive Director,
Mr John de Vries, to Managing Director and CEO of the Company.
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NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
24 PARENT ENTITY INFORMATION
The accounting policies of the parent entity, which have been applied in determining the financial information shown
below, are the same as those applied in the consolidated financial statements. Refer to note 3 for a summary of significant
account policies.
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
2,049,141
6,454,731
8,503,872
1,900,827
16,854,145
18,754,972
614,019
388,339
-
-
614,019
388,339
58,086,890
52,371,879
(50,993,163)
(36,462,165)
796,126
2,456,919
7,889,853
18,366,633
FOR THE
YEAR ENDED
30/06/2019
$
FOR THE
YEAR ENDED
30/06/2018
$
18,868,356
4,670,408
-
-
18,868,356
4,670,408
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Retained earnings
Reserves
Total equity
Financial performance
Loss for the year
Other comprehensive income
Total comprehensive loss
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DIRECTORS’
DECLARATION
The directors declare that:
(a) in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable;
(b) in the directors’ opinion, the attached financial statements are in compliance with International
Financial Reporting standards, as stated in note 1 to the financial statements;
(c) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the
financial position and performance of the Consolidated Entity; and
(d) the directors have been given the declarations required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors made pursuant to s. 295(5) of the Corporations Act 2001.
On behalf of the Directors
Richard Crookes
NON-EXECUTIVE CHAIRMAN
25 September 2019
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AUDITOR’S REPORT
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
Independent Auditor’s Report to the members of
Black Rock Mining Limited
Report on the Audit of the Financial Report
We have audited the financial report of Black Rock Mining Limited (the “Company”) and its
subsidiaries (the “Group”) which comprises the consolidated statement of financial position as
at 30 June 2019, 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 other explanatory information, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the
Corporations Act 2001, including:
(i)
(ii)
giving a true and fair view of the Group’s financial position as at 30 June 2019 and of
its financial performance for the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations
2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Financial Report section of our report. We are independent of the Group in accordance with
the auditor independence requirements of the Corporations Act 2001 and the 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 confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of the Company, would be in the same terms if given to the
directors as at the time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
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 for 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.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
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Key Audit Matter
How the scope of our audit responded to
the Key Audit Matter
Carrying value of Exploration and
Evaluation Assets
As at 30 June 2019, the carrying value of
assets
exploration
amounts
including
to $20,978,368,
additions of $3,487,680 as disclosed in
Note 9.
evaluation
and
judgement
Significant
in
determining the treatment of exploration
and evaluation expenditure including:
is applied
Our procedures associated with exploration and
evaluation expenditure incurred during the year
included, but were not limited to:
obtaining an understanding of the key
the
associated
controls
capitalisation
of
or
exploration and evaluation expenditure;
and
expensing
with
whether
the
capitalisation are satisfied;
conditions
for
which elements of exploration and
evaluation expenditure qualify for
capitalisation;
the Group’s intentions and ability
to proceed with a future work
programme;
the likelihood of licence renewal or
extension; and
the expected or actual success of
resource evaluation and analysis.
testing on a sample basis, exploration
and evaluation expenditure to confirm
the nature of the costs incurred, and the
appropriateness of the classification
between asset and expense.
Our procedures associated with the carrying
value of exploration and evaluation assets
included, but were not limited to:
obtaining an understanding of the key
the
associated
of
of
indicators
with
controls
identification
impairment;
evaluating management’s impairment
indicator
including
assessment,
consideration as to whether any of the
following events exist at the reporting
date which may indicate that exploration
and evaluation assets may not be
recoverable:
o obtaining a schedule of the areas
of interest held by the Group and
confirming whether the rights to
tenure of those areas of interest
remained current at balance
date;
o holding
with
management as to the status of
exploration
ongoing
programmes in the respective
areas of interest; and
discussions
o assessing whether any facts or
circumstances existed to suggest
impairment testing was required.
We also assessed the appropriateness of the
disclosures in Note 9 to the financial statements.
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 2019, but does
not include the financial report and our auditor’s report thereon.
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INDEPENDENT
AUDITOR’S REPORT
Our opinion on the financial report does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial report or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that
gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to
enable the preparation of the financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the
Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to
liquidate the Group or to cease operations, or 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.
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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’s
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
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 11 to 16 of the Directors’ Report
for the year ended 30 June 2019.
In our opinion, the Remuneration Report of Black Rock Mining Limited, for the year ended 30
June 2019, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit
conducted in accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
Ian Skelton
Partner
Chartered Accountants
Perth, 25 September 2019
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ADDITIONAL
ASX INFORMATION
ORDINARY FULLY PAID SHARES
Range of units AS AT 31 AUGUST 2019
RANGE
TOTAL
HOLDERS
UNITS
% OF ISSUED
CAPITAL
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
148
168
173
916
521
55,764
505,592
1,381,041
38,821,123
581,787,331
1,926
622,550,851
0.01
0.08
0.22
6.24
93.45
0.00
100.00
Unmarketable parcels
Minimum $500.00 parcel at $ 0.0710 per unit
7043
379
946672
MINIMUM PARCEL SIZE
HOLDERS
UNITS
Top 20 Shareholders AS AT 20 SEPTEMBER 2019
RANK NAME
UNITS
% OF UNITS
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EYEON INVESTMENTS PTY LTD
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