ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2020
CHIEF EXECUTIVE OFFICER’S REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
DIRECTORS’ REPORT
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AND OTHER COMPREHENSIVE INCOME
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
02
05
17
18
19
20
21
22
44
45
49
BLACK ROCK MINING LIMITED
ABN: 59 094 551 336
CORPORATE DIRECTORY
DIRECTORS
COMPANY
SECRETARY
PRINCIPAL
PLACE OF
BUSINESS AND
REGISTERED
OFFICE
AUDITOR
Richard Crookes
Non-Executive Chairman
John de Vries
Chief Executive Officer, Managing Director
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: +61 (0)8 9365 7000
F: +61 (0)8 9365 7001
SHARE
REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth Western Australia, 6000
T: 1300 787 272
F: +61 (0)8 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
A SNAPSHOT
OF THE
MAHENGE
GRAPHITE
PROJECT
01
US$1.2B
Post-tax, ungeared
real NPV10
US$116M
US$1,301/t
Phase 1
development capex
Basket graphite price
(net FOB)
SIMPLE OPEN PIT
MINE DEVELOPMENT
WITH OUTSTANDING
FORECAST RETURNS
45%
Post-tax, ungeared,
real IRR
350ktpa
Phase 4 output
(4Mtpa ROM)
US$494/t
LOM All-In-Sustaining-Cost
83ktpa
Phase 1 output
(1Mtpa ROM)
95 - 99%+ TGC purity
59% +80 mesh, 41% -80
Concentrate product
Following release of the Enhanced Definitive Feasibility Study
(DFS) on the Mahenge Graphite Project in July 2019 (see Black
Rock ASX release dated 25 July 2019, Mahenge Enhanced DFS
with Executive Summary), Black Rock confirms that it is not aware
of any new data or information that materially affects the results
of the Enhanced DFS. All material assumptions and technical
parameters, including in the estimation of Mineral Resources
or Ore Reserves, underpinning the estimates in the Enhanced
DFS continue to apply and have not materially changed.
The estimated Ore Reserves and Mineral Resources underpinning
the production and financial forecasts in the Enhanced DFS
were prepared by Competent Persons in accordance with the
requirements in Appendix 5A (JORC Code).
26 years
Initial operating life
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 02
CHIEF
EXECUTIVE
OFFICER’S
REPORT
Black Rock Mining Limited (ASX: BKT) continued to
advance the development of the Mahenge Graphite
project in Tanzania, delivering on a number of
key milestones during the year. Heading into a
transformative year the company is well positioned
to capitalize on the foundation for success put in
place over the last three years.
Black Rock has built a solid
foundation that has distinguished and
validated its “Crawl, Walk, Run, Sprint”
development strategy. At its core, the
geology and geographical advantages
at Mahenge provide for a very unique
opportunity of a high-grade large
flake graphite deposit, supported
by rail access to deep water ports
and access to grid power. Continued
focus on de-risking the project and
aligning partner supply chain has
proved pivotal in differentiating the
operating model for Mahenge.
Early in the year, the Company
released an enhanced Definitive
Feasibility Study (eDFS), effectively
an optimized version of the original
Definitive Feasibility Study (DFS)
now including a fourth production
module. This enhancement was done
in response to customer demand
for a more aggressive ramp up.
The development sequence was
also compressed for modules to be
commissioned annually after first
production, subject to funding and
confirmed demand, targeted steady
state annual production was to
increase from 250,000 to 340,000
tonnes. This delivered a revised
set of financial metrics which saw
a forecasted increase of 30% to
NPV10 rising to US$1.16Bn, IRR of
44.8% (after tax and Free Carried
Interest), with no material change to
capex for module one of US$116m1.
Importantly, the scale and significance
of the Mahenge Graphite project was
evident with the eDFS forecasting a
stable state EBITDA (after year 5) of
US$306M per annum at our basket
price of $1,301 per tonne for 97.5%
concentrate. The Company continues
to believe that Mahenge is the best
undeveloped graphite project globally.
During the year, Black Rock has
focused heavily on development and
validation, with a particular view on
channel development. This required
the Company to put material in
the hands of customers to try it. In
August 2019, Black Rock announced
that its battery anode pre-cursor
production trial delivered industry
leading results, with spheronising
yields of up to 53% and final purity
of 99.98% Total Graphitic Carbon as
reported by Loss on Ignition (LOI).
This significantly exceeded industry
standard for battery anode materials
of 35-45% and 99.95% respectively.
This achievement was critically
important as it demonstrated that
the flow sheet developed preserved
the integrity of the flake (does not
impair spheronising performance),
and secondly, it talked to the
alignment with our partner value
chain as it demonstrated to offtake
partners that they could achieve
industry leading performance using
Mahenge Graphite flake in their
existing commercial facilities.
By January 2020, Black Rock entered
into a non-binding Cooperation
Framework Agreement (CFA) with
state-owned enterprise (SOE),
China Railway Seventh Group Co. Ltd
(CRSG), a wholly owned subsidiary
of China Railway Group Limited,
one of the largest construction
companies globally. This delivered a
proven EPC partner with substantial
African (including Tanzanian) build
experience, along with a significant
reduction of upfront capital
and overall build execution risk.
In combination with our equipment
supplier Yantai Jinyuan, total
deferred payment terms are
approximately US$35M of the
1 Refer ASX 24th July 2019 Mahenge DFS Enhanced with Addition of Fourth Module – Forecast
capex has been estimated as a Class 3 estimate with accuracy of ± 10% as defined by AACE
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 03
US$116M module one development
capital estimate in the eDFS2.
This approach delivers around 30%
of the net capital cost for Module
1 being deferred and payable only
after effective plant completion
(and over a trailing 12-month period
from that point).
Turning to Tanzania, over recent
years, Black Rock has adopted a
deliberate whole of government
approach to create a positive
platform for engagement.
This culminated in April 2020,
with formal advice from the
Government of the United Republic
of Tanzania inviting Black Rock
to commence formal negotiations
on the structure and nature of
their 16% Free Carried Interest
(FCI) in the Mahenge Graphite
project. Formal negotiations on
FCI continue post year end with
a Draft Framework Agreement
(DFA) received from the
Government of Tanzania.
As a further sign of the deep
engagement forged in Tanzania,
Black Rock completed field activities
associated with the Mahenge
Resettlement Action Plan (RAP),
with the resettlement and
compensation process agreed with
>98% of Project Affected Persons
(PAP’s). A total of 148 meetings were
held in the Mahenge community
since December 2019, with work
overseen by Government Officials
to ensure accuracy and compliance
with legislation. Being able to secure
a 98% acceptance rate should be
considered as community
validation of our project’s social
licence to operate.
The Company 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.
The Company also teamed up
with the villages in the project area to
construct three village offices.
This has strengthened the relationship
with the project hosts with the mission
being, "we build our future together".
We have supported the National
Torch Relay for the third year running
by proving tracksuits to local school
children participating in the parade.
Black Rock Mining has enjoyed
a proud history in delivering
on Environmental, Social and
Governance (ESG) initiatives through
the Company’s Corporate Social
Responsibility (CSR) program in
Mahenge. Our social licence to
operate is fundamental to delivering
benefits to all stakeholders.
The Mahenge Graphite project
will see the creation of 970 jobs
over the project life, along with
many downstream benefits to
local communities. This is a legacy
the Company is eager to deliver.
A successful RAP further
differentiates Mahenge’s brand
of clean graphite, to now include
socially responsible graphite.
With Black Rock’s presence in
Tanzania validated, the Company
was pleased to announce market
validation by entering into a
Strategic Alliance & Development
Memorandum of Understanding
(MOU) with the POSCO Group
for the development of the
Mahenge Graphite Project.
POSCO is one of the world’s
largest producers of anode
feedstock and a major participant
in the global Lithium-ion Battery
(LiB) industry.
The MOU with POSCO outlines the
key terms under which Black Rock
and POSCO plan to progress to a
binding Investment Agreement.
The Investment Agreement
anticipates an initial investment of up
to US$10m by way of a subscription
for shares and/or convertible notes
in Black Rock, and was subject to a
90-day due diligence period, later
extended to 20th November 2020.
The MOU also allows for POSCO
to obtain the right to a long-term
offtake arrangement for up to 100%
of fines (sub #100 mesh). This is
expected to be up to 40,000 tonnes
per annum3 at full production rates
for module one.
The proposed alliance with POSCO
is potentially a major de-risk
event for the project, considering
POSCO’s financial capacity and
global significance in the LiB market.
The partnership also provides for
geographic diversity, and validates
Black Rock’s approach to upstream
assets as opposed to competing
with downstream partners such as
POSCO. The other point here, is that
Black Rock is the first junior miner to
put their product into the hands of
a battery major.
Black Rock continues to be pleased
with the level of interest and
engagement with potential financiers.
In June 2020, TIB Development Bank
Limited (formerly known as Tanzania
Investment Bank) initiated due
diligence on the project.
2 Following release of the Enhanced DFS in July 2019, the Company confirms that it is not aware of any new data or information that materially affects
the results of the Enhanced DFS and that all material assumptions and technical parameters underpinning the estimates in the relevant market
announcements continue to apply and have not materially changed
3 Refer ASX release 24th July 2019 – Mahenge DFS Enhanced with Addition of Fourth Module
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT I would also like to personally thank
the Board of Directors for their
support over the past year and thank
our staff and management for their
contributions during what was a
challenging but 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
CHIEF EXECUTIVE OFFICER
04
Our position in developing the
Mahenge Graphite Project is that
for this project to be successful,
we need local Tanzanian businesses
to participate with Black Rock in
developing the project.
Having a number of conditions
precedent activities in the advanced
stage, such as the POSCO alliance,
Government of Tanzania FCI and
RAP, has meant that the Company is
able to pursue real and meaningful
discussions with respect to securing
the least dilutive, risk adjusted option
for our Shareholders.
Like many companies, Black Rock
experienced our own challenges
associated with the Covid-19
pandemic. The impact to date on
Black Rock’s normal operations
was limited to capital markets and
the ability for Company executives
to travel to Tanzania and Asia.
More recently, we have seen this
impact extend to due diligence
work with POSCO related to travel
to site and logistics associated
with the movement of material for
testwork. Tanzania has not adopted
a lock down strategy, although it has
limited some public gatherings.
Black Rock turned the market
uncertainty into an opportunity to
modify our approach interacting
with investors, shareholders and
stakeholders from presenting
at meetings and investment
conferences, to instead leverage
our digital capabilities and present
directly to you, wherever you are.
The Company launched BKT-TV,
our first foray into developing
and managing our own media
broadcasts. This has been hugely
successful, which we intend to
continue to develop to amplify our
communication on the development
of the Mahenge Graphite project.
We continue to believe that Mahenge
is the best natural flake graphite
in the world. We have proven this
through our extensive test work and
in having it validated by potential
customers and the market.
During the year, Black Rock Mining
raised capital totalling A$3 million
through a placement taken up
by the Board, Institutional and
Sophisticated Investors. We would
like to recognize and thank new and
existing shareholders who supported
Black Rock throughout the year.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 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
2020. 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 during the financial year are:
NAME
PARTICULARS
05
Richard Crookes
Non-Executive
Chairman
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 is a member of both the Audit and Remuneration Committees.
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 Limited
DATE APPOINTED
DATE RESIGNED
April 2013
November 2018
Current
Current
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 Limited, and Gold Road Resources Limited (ASX:GOR). More recently,
as Chief Executive Officer and Managing Director, he successfully delivered Gold Road Resources
Limited’s Gruyere Project, and has significant African experience through DRDGold.
Mr Murray is a member of the Audit Committee and Chair of the Remuneration Committee.
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 Limited
Gascoyne Resources Limited
Matador Mining Limited
Geopacific Resources Limited
Todd River Resources Limited
DATE APPOINTED
DATE RESIGNED
October 2007
October 2018
May 2020
September 2019
September 2020
January 2019
October 2018
Current
Current
Current
John de Vries
Managing Director
CEO
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
Limited. After his success with St Barbara Limited, 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 de Vries does not currently hold any other directorships, nor has he in the past 3 years.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT DIRECTORS’
REPORT
06
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
18 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 is Chair of the Audit Committee and a member of the Remuneration Committee.
Mr Chiappini held directorships with the following listed companies in the 3 year immediately
prior to the date of this report.
NAME
Invictus Energy Limited
Eneabba Gas Limited
Fastbrick Robotics Limited:
- Non-Executive Director
- Non-Executive Chairman
DATE APPOINTED
DATE RESIGNED
August 2015
September 2016
Current
Current
December 2011
March 2012
August 2018
November 2015
The above-named directors held office during the whole of the financial year and since the end of the financial year
INFORMATION ABOUT COMPANY SECRETARY
Gabriel Chiappini Refer above for an overview of Mr Chiappini’s experience and expertise.
PRINCIPAL ACTIVITIES
Black Rock Mining 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 Mining
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 in August 2018. Mining licenses ML 611/2019 and ML612/2019 were granted in 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 Mining 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 Mining 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 rate increasing to 4.3%. Black Rock Mining has
commenced a structured financing process to identify and deploy funds for development the Mahenge Graphite
Project. Black Rock Mining has executed a non-binding Memorandum of Understanding (MOU) with Korean industrial
group, POSCO, to potentially form a Strategic Alliance & Development Relationship for the development of 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
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 07
REVIEW AND RESULTS OF OPERATIONS AND ACTIVITIES
Results of Operations
The consolidated loss after tax for the year ended 30 June 2020 was $3,387,285 (2019: $2,864,024).
Principal activities during the year included:
• Completed a large-scale spheronising and purification trial using 400kg of sub-80 mesh concentrate that was
generated during the March 2019 Pilot Plant run.
• Completed an equity placement to raise A$3 million via the issuance of 42,857,143 new shares at an issue price of
A$0.07 per share.
• Released its Mahenge Graphite Project Enhanced DFS (eDFS), building on the original DFS released in October
2018. The DFS was enhanced to include a fourth production module, a compressed development schedule and an
increased schedule contingency.
• Received written formal advice from the Government of the United Republic of Tanzania (Government) confirming
preparations to commence formal negotiations on the structure and nature of their 16% Free Carried Interest (FCI)
in Black Rock Mining’s Mahenge Graphite Project.
• Entered into a non-binding Cooperation Framework Agreement (CFA) with a Chinese state-owned enterprise (SOE),
China Railway Seventh Group Co. Ltd (CRSG), a wholly owned subsidiary of China Railway Group Limited.
• Successfully commenced and completed a Resettlement Action Plan.
• Executed a non-binding Memorandum of Understanding (MOU) with Korean industrial group, POSCO, to potentially
form a Strategic Alliance & Development Relationship for the development of the Mahenge Graphite Project.
• TIB Development Bank Limited (TIB) (formerly known as Tanzania Investment Bank) commenced due diligence on
the Company’s Mahenge Graphite Project.
Corporate and Financial Position
Consolidated net assets at year-end were $22,718,912 against $22,406,840 at the close of the prior year.
Total cash held at year-end was $722,097 (2019: $1,907,467).
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 Project). The Company is progressing towards the
development phase, finalising negotiations with the Government of Tanzania on the Free Carried Interest and securing
financing for the Project.
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 31 July 2020 Black Rock Mining announced, that further to the announcement on 29 April 2020, that it had
progressed formal negotiations to resolve the structure and nature of the Free Carried Interest (FCI) with the
Government of the United Republic of Tanzania (Tanzanian Government). On 8 September 2020 Black Rock Mining
announced that its potential Strategic Alliance and Development partner, POSCO Limited (POSCO), is making
meaningful progress on due diligence activities, including battery manufacture and extended battery performance
testing and had extended the due diligence process to 20 November 2020.
- On 11 August 2020 Black Rock Mining announced, that the fully underwritten non-renounceable Entitlement Offer
to raise approximately $1.65 million as announced by the Company on 3 July 2020, settled with all the securities
under the offer allotted. Under the terms of the Entitlement Offer Eligible Shareholders were entitled to apply for
one (1) New Share at an issue price of $0.042 (4.2 cents) for every sixteen (16) shares held on the Record Date.
Each New Share issued under the terms of the Entitlement Offer receive one (1) free attaching New Option
exercisable at $0.084 (8.4 cents), expiring three (3) years after the issue date. Under the Entitlement Offer the
Company offered a maximum of 39,308,982 new shares to raise approximately $1.65 million.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 08
SUBSEQUENT EVENTS (CONTINUED)
- On 8 September 2020 Black Rock Mining announced that its potential Strategic Alliance and Development partner,
POSCO Limited (POSCO), is making meaningful progress on due diligence activities, including battery manufacture
and extended battery performance testing and had extended the due diligence process to 20 November 2020.
DIRECTORS’
REPORT
- On 15 September 2020 Black Rock Mining announced that the Government of Tanzania had officially published
regulations concerning graphite concentrate exports, having issued Government Notice 687 of 2020 “The Mining
(Value Addition) Regulations, 2020”. The updated regulation continues the policy of maintaining a minimum graphite
concentration of 65% total graphitic carbon and payment of royalties as conditions of export. The 2020 regulations
revoke the 2019 “The Mining (Mineral Value Addition) Guidelines of 2019. Black Rock Mining has demonstrated in
two independent pilot plant operations that Mahenge can produce graphite concentrate at grades of up to 98%
Carbon by LOI thereby confirming Black Rock Mining’s Definitive Feasibility Study view that Mahenge graphite
concentrate is suitable for export.
- During March 2020 and up until the date of this report, Australia and much of the World has been impacted by
the spread of the COVID-19 virus. COVID-19, announced as a global pandemic by the World Health Organization on
11 March 2020, is a non- adjusting subsequent event which has the potential to significantly impact business activity
and economic conditions worldwide after reporting date. While the exact economic impact on the business cannot
be estimated, the Group has taken action to continue to pursue its projects. To date, there has been no significant
impact on the current operations of the business or the financial position as at 30 June 2020.
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 9,200,000 million share options were granted to the directors of the Company. Refer to table on page 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 Limited
13,000,000
Black Rock Mining Limited
Black Rock Mining Limited
Black Rock Mining Limited
Black Rock Mining Limited
Black Rock Mining Limited
Black Rock Mining Limited
5,000,000
5,000,000
3,000,000
1,000,000
3,000,000
9,200,000
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
$0.10
$0.07
$0.20
$0.10
$0.10
$0.15
$0.15
7 November 2021
9 July 2021
14 March 2021
18 December 2021
31 October 2021
18 November 2022
28 October 2022
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 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.
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
09
Richard Crookes
- Ordinary shares
2,705,357
- Unlisted Options
2,500,000
- Unlisted Options
2,400,000
7-Nov-18
29-Oct-19
7-Nov-21
28-Oct-22
John de Vries
- Ordinary shares
4,033,928
- Unlisted Options
5,000,000
- Unlisted Options
3,600,000
7-Nov-18
28-Oct-19
7-Nov-21
28-Oct-22
$0.10
$0.15
$0.10
$0.15
Ian Murray
- Ordinary shares
5,794,420
- Unlisted Options
3,000,000
- Unlisted Options
1,600,000
18-Nov-19
28-Oct-19
18-Nov-22
28-Oct-22
$0.15
$0.15
Gabriel Chiappini
- Ordinary shares
6,892,857
- Unlisted Options
2,500,000
- Unlisted Options
1,600,000
7-Nov-18
28-Oct-19
7-Nov-21
28-Oct-22
$0.10
$0.15
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 (Managing 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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT DIRECTORS’
REPORT
10
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 seven (7) Board meetings were held:
DIRECTOR
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
7
7
7
7
7
7
7
7
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT REMUNERATION REPORT (audited)
This remuneration report, which forms part of the Directors’ Report, sets out information about the
remuneration of Black Rock Mining’s key management personnel for the financial year ended 30 June 2020.
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:
11
• 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
Non-Executive Chairman
Non-Executive Director
Appointed 16 October 2017
Appointed 2 May 2019
Chief Executive Officer & Managing Director
Appointed 16 March 2017
Non-Executive Director
& Company Secretary
Appointed 21 March 2012
Appointed 12 July 2013
Ian Murray
John de Vries
Gabriel Chiappini
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.
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
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT DIRECTORS’
REPORT
12
REMUNERATION REPORT (audited) (CONTINUED)
Elements of director and executive remuneration (CONTINUED)
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:
2020
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
E
E
Y
O
L
P
M
E
-
S
T
I
F
E
N
E
B
M
R
E
T
T
R
O
H
S
S
E
E
F
D
N
A
Y
R
A
L
A
S
$
100,000
66,000
303,500
72,270
541,770
)
i
(
R
E
H
T
O
-
-
27,375
-
27,375
S
U
N
O
B
-
-
-
-
-
T
S
O
P
-
S
T
I
F
E
N
E
B
T
N
E
M
Y
O
L
P
M
E
N
O
I
T
A
U
N
N
A
R
E
P
U
S
$
9,500
6,270
25,000
-
L
A
T
O
T
)
S
T
H
G
I
R
T
N
E
M
Y
A
P
D
E
S
A
B
E
R
A
H
S
D
N
A
S
N
O
I
T
P
O
(
$
$
56,303
68,828
84,130
56,084
165,803
141,098
440,005
128,354
875,260
40,770
265,345
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
-
-
-
-
(i) Other relates to annual leave benefits earnt during the year
During the June 2020 financial year, in response to the COVID pandemic, the Directors of Black Rock Mining agreed
to defer a portion of their fees. Refer to the section titled “Amounts owing to Directors” below for a summary of the
amounts owing to each Director at the end of financial year.
2019
Richard Crookes
Ian Murray (i)
John de Vries
Stephen Copulos (ii)
Gabriel Chiappini
E
E
Y
O
L
P
M
E
-
S
T
I
F
E
N
E
B
M
R
E
T
T
R
O
H
S
S
E
E
F
D
N
A
Y
R
A
L
A
S
$
108,333
11,000
302,645
20,833
49,000
491,811
)
i
i
i
(
R
E
H
T
O
-
-
)
v
i
(
S
U
N
O
B
-
-
23,088
75,000
-
-
-
-
T
S
O
P
-
S
T
I
F
E
N
E
B
T
N
E
M
Y
O
L
P
M
E
N
O
I
T
A
U
N
N
A
R
E
P
U
S
$
10,292
1,045
25,000
-
-
I
)
S
T
H
G
R
D
N
A
D
E
S
A
B
E
R
A
H
S
S
N
O
I
T
P
O
(
T
N
E
M
Y
A
P
$
50,808
8,647
86,383
32,350
59,366
23,088
75,000
36,337
237,554
L
A
T
O
T
$
169,433
20,692
512,116
53,183
108,366
863,790
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
-
-
-
-
-
(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 Black Rock Mining ordinary shares (shares subject to shareholder
approval). At the date of this report no bonus had been awarded for the 30 June 2020 financial year.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
REMUNERATION REPORT (audited) (CONTINUED)
Amounts owing to Directors
During the June 2020 financial hear, in response to the COVID pandemic, the Directors of Black Rock Mining agreed
to defer a portion of their fees. Below is a summary of the amounts owing at the end of the financial year.
13
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
2020
$
36,500
24,090
105,192
30,815
196,597
2019
$
-
-
-
-
-
Key Terms of Employment Contracts
The Directors and executive are employed under contracts, which have no fixed term.
The contract binding the Managing 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 plus superannuation (same as current salary)
Superannuation
Statutory Rate
Leave
20 days annual leave
Short Term
Incentive (STI)
Long Term
Incentives (LTI)
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
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT DIRECTORS’
REPORT
14
REMUNERATION REPORT (audited) (CONTINUED)
Share based payment arrangements
Options
As approved at the 2019 Annual General Meeting, 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 (i)
2,400,000
1,600,000
3,600,000
1,600,000
9,200,000
(i) Expiry: 28 October 2022, Exercise price: $0.15, Vesting conditions: 33.3% on 28 October 2020, 33.3% on 28 October 2021 and 33.4% on
28 October 2022 subject to remaining as a director, executive or consultant of the Company. Fair value per share option was $0.0268 computed
using a Black & Scholes model.
The options above (9.2 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 Limited
10,000,000
Black Rock Mining Limited
9,200,000
Black Rock Mining Limited
3,000,000
Ordinary
Ordinary
Ordinary
$0.10
$0.15
$0.15
7 November 2021
28 October 2022
18 November 2022
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. These payments
have been disclosed in the remuneration table above:
VALUE $
DESCRIPTION
Gabriel Chiappini
72,270
Amounts to Laurus Corporate Services, a Company Mr Chiappini
is a shareholder and director of, for the provision of Company
Secretarial and Non-executive Director services.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT REMUNERATION REPORT (audited) (CONTINUED)
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 2020:
15
Revenue ($’s)
Net loss before tax ($’s)
Net loss after tax ($’s)
Share Price at start of year
Share Price at year end
2020
2,870
(3,387,285)
(3,387,285)
$0.084
$0.048
2019
7,939
2018
2017
2016
24,183
187,548
11,602
(2,864,024)
(2,053,080)
(2,590,371)
(1,349,305)
(2,864,024)
(2,053,080)
(2,590,371)
(1,349,305)
$0.037
$0.084
$0.066
$0.037
$0.066
$0.066
$0.1176
$0.028
$0.066
$0.005
Loss per share
$0.00545
$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:
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
1 JULY 2019
PURCHASES
OTHER CHANGES
30 JUNE 2020
2,062,500
1,508,706
3,212,500
6,250,000
642,857
4,285,714
285,714
642,857
-
-
535,714 (i)
-
2,705,357
5,794,420
4,033,928
6,892,857
(i) 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 Black Rock Mining’s ordinary shares (shares subject to shareholder
approval) at a deemed price of $0.07 per share
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:
9
1
0
2
Y
L
U
J
1
S
N
O
I
T
P
O
I
G
N
H
C
A
T
T
A
E
E
R
F
D
E
T
N
A
R
G
S
N
O
I
T
P
O
S
A
D
E
T
N
A
R
G
N
O
I
T
A
R
E
N
U
M
E
R
Richard Crookes
7,500,000
Ian Murray
-
John de Vries
10,000,000
Gabriel Chiappini
7,500,000
-
-
-
-
2,400,000
1,600,000
3,600,000
1,600,000
D
E
S
P
A
L
S
N
O
I
T
P
O
-
-
-
-
S
E
G
N
A
H
C
R
E
H
T
O
0
2
0
2
E
N
U
J
0
3
D
N
A
D
E
T
S
E
V
E
L
B
A
S
I
C
R
E
X
E
0
2
0
2
E
N
U
J
0
3
T
A
R
A
E
Y
E
H
T
G
N
I
R
U
D
D
E
T
S
E
V
-
9,900,000
8,300,000
2,500,000
3,000,000 (i)
4,600,000
2,033,333
1,500,000
-
-
13,600,000
11,200,000
5,000,000
9,100,000
8,033,333
2,500,000
(i)
Ian Murray was granted options in the June 2019 financial year with the corresponding expense recognised in that period, however the issue of these
options was subject to shareholder approval which was obtained at the AGM held on the 28 October 2019
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
DIRECTORS’
REPORT
16
REMUNERATION REPORT (audited) (CONTINUED)
Movement in listed options
There were no movements in 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 during the
financial year.
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
CHAIRMAN
Perth, 29 September 2020
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT AUDITOR’S
INDEPENDENCE
DECLARATION
The Board of Directors
Black Rock Mining Limited
45 Ventnor Avenue
West Perth, WA 6005
29 September 2020
The Board of Directors
Black Rock Mining Limited
45 Ventnor Avenue
Dear Board Members
West Perth, WA 6005
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
Deloitte Touche Tohmatsu
Fax: +61 8 9365 7001
ABN 74 490 121 060
www.deloitte.com.au
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
17
Auditor’s Independence Declaration to Black Rock Mining Limited
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.
29 September 2020
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for
the year ended 30 June 2020, I declare that to the best of my knowledge and belief, there
Dear Board Members
have been no contraventions of:
Auditor’s Independence Declaration to Black Rock Mining Limited
(i) the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
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.
(ii) any applicable code of professional conduct in relation to the audit.
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for
the year ended 30 June 2020, I declare that to the best of my knowledge and belief, there
have been no contraventions of:
Yours faithfully
(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.
DELOITTE TOUCHE TOHMATSU
Yours faithfully
Ian Skelton
Partner
Chartered Accountants
DELOITTE TOUCHE TOHMATSU
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.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
CONSOLIDATED STATEMENT
OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
NOTE
FOR THE
YEAR ENDED
30/06/2020
FOR THE
YEAR ENDED
30/06/2019
$
2,870
-
(286,725)
(1,111,253)
(374,246)
$
7,939
-
(317,152)
(707,158)
(431,311)
(1,165,297)
(1,014,579)
(18,630)
(4,641)
(315,131)
-
(114,232)
(10,675)
(5,071)
(368,949)
(17,068)
-
(3,387,285)
(2,864,024)
6
-
-
(3,387,285)
(2,864,024)
18
Interest income
Other revenue
Administrative expenses
Employee benefit expense
Share based payment expense
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 that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations
Items not reclassified through profit or loss
480,079
-
912,109
26,807
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO
MEMBERS OF BLACK ROCK MINING LIMITED
(2,907,206)
(1,925,108)
Loss for the year attributable to owners of the Company
Total comprehensive loss attributable to the owners of the Company
(3,387,285)
(2,907,206)
(2,864,024)
(1,925,108)
Loss per share
Basic and diluted loss per share
19
(0.00545)
(0.00539)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2020
Assets
Current assets
Cash and bank balances
Other receivables
Total current assets
Non-current assets
Exploration & evaluation asset
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Total liabilities
Net assets
Equity
Issued capital
Foreign currency translation reserve
Share based payment reserve
Accumulated losses
Total equity
NOTE
AS AT
30/06/2020
$
AS AT
30/06/2019
$
19
7
9
10
11
12
12
13
722,097
93,368
1,907,467
170,361
815,465
2,077,828
22,770,344
20,978,368
31,941
43,379
22,802,285
21,021,747
23,617,750
23,099,575
839,026
59,812
658,011
34,724
898,838
692,735
898,838
692,735
22,718,912
22,406,840
60,989,789
58,086,890
1,256,565
1,132,872
796,853
796,126
(40,660,314)
(37,273,029)
22,718,912
22,406,840
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
20
D
E
U
S
S
I
L
A
T
I
P
A
C
NOTE
$
S
E
S
S
O
L
D
E
T
A
L
U
M
U
C
C
A
$
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
$
$
$
$
Balance at 1 July 2018
11, 12, 13
52,371,878
(36,461,185)
87,714
2,400,333
(115,255)
18,283,485
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
-
-
-
-
(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
-
-
-
-
Balance at 30 June 2019
11, 12, 13
58,086,890
(37,273,029)
Loss for the year
Other comprehensive income for the year,
net of tax
De-recognition of subsidiary
Total comprehensive income
for the year
Issue of ordinary shares
Bonus shares issued to John de Vries
Placement shares issued to directors
Cost of share capital issued
Costs of share based payments
Total distributions to owners of
Company recognised directly in equity
-
-
-
-
(3,387,285)
-
-
(3,387,285)
2,590,000
37,500
410,000
(134,601)
-
2,902,899
-
-
-
-
-
-
Balance at 30 June 2020
11, 12, 13
60,989,789
(40,660,314)
-
-
-
-
-
-
-
-
-
-
-
-
796,126
796,853
22,406,840
-
-
-
-
-
-
-
-
336,746
336,746
-
(3,387,285)
480,079
(20,367)
480,079
(20,367)
459,712
(2,927,573)
-
-
-
-
-
-
2,590,000
37,500
410,000
(134,601)
336,746
3,239,645
1,132,872
1,256,565
22,718,912
The above consolidated statement of changes in equity should be read in conjunction with accompanying notes.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
Cash flow from operating activities
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
NOTE
21
Payments to suppliers and employees
(2,516,341)
(2,272,737)
Net cash flows used in operating activities
7
(2,516,341)
(2,272,737)
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
(1,529,353)
(3,487,680)
2,870
(3,679)
-
-
-
7,939
(34,425)
294,810
-
(6,620)
Net cash flows used in investing activities
(1,530,162)
(3,225,976)
Cash flows from financing activities
Proceeds from issue of shares and options
Payment of share issue costs
3,000,000
(134,601)
5,999,500
(382,348)
Net cash flows provided by financing activities
2,865,399
5,617,152
Net (decrease)/increase in cash held
Cash at the beginning of the financial year
Effect of exchange movement on cash balances
(1,181,104)
1,907,467
(4,266)
118,439
1,788,150
878
Cash and cash equivalents at the end of the year
7
722,097
1,907,467
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
22
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 29 September 2020.
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 Group has incurred net losses of $3,387,285 (30 June 2019: $2,864,024) and experienced net cash outflows
from operating activities of $2,516,341 (30 June 2019: $2,272,737) and net cash outflows from investing activities of
$1,530,162 (30 June 2019: $3,225,976) for the year ended 30 June 2020.
During the financial year the Group deployed its working capital into its graphite prospects in Mahenge, Tanzania in
order continue its Front End Engineering Design work and complete its Spherical Purified Graphite Production Trial.
The Group has also completed its Resettlement Action Plan, which is key in its progression towards the development
of the project. The Directors have prepared a cash flow forecast reflecting the Group’s key objectives, which indicates
the Group needs to raise additional capital to invest in the Company’s stated strategic objectives.These additional
funds may be raised from the negotiation of an Investment Agreement with POSCO, with whom Black Rock Mining have
entered a Strategic Alliance & Development Memorandum of Understanding. The Investment Agreement anticipates
an investment of up to US$10m by way of subscription for shares and/or convertible notes in Black Rock Mining.
Funds may also be raised through equity raisings.
In August 2019 the Company completed a placement of 37,000,001 ordinary shares at $0.07 per share to raise
$2.590 million with a further 5,857,142 shares issued in October 2019 to directors and management that were subject
to shareholder approval which raised a further $410,000. Subsequent to year end in August 2020, the Company
completed an additional placement of 39,308,982 ordinary shares at $0.042 per share to raise $1.65 million.
The cash flow forecast for the period ending 30 September 2021 indicates that the Group is required to raise
additional capital. Management intend on completing a raising of at least $1.1 million by March 2021 in order to
continue its planned preparation for the construction on its graphite prospects in Tanzania and to fund working capital.
This assumes no slowing down or deferment of costs.
Based on the Company’s history of raising capital and subject to the general market conditions, the Directors are
confident of the Company’s ability to raise additional capital as required. Based on this and on the cash flow forecasts,
the Directors believe that the going concern basis of preparation is appropriate.
Should the Group be unable to obtain funding through capital raising or alternative sources, or otherwise reduce its
operational spending in line with available cash resources, there is a material uncertainty that may cast significant
doubt as to whether the Group will be able to continue as a going concern and therefore, whether it will realise its
assets and extinguish its liabilities as and when they fall due.
The financial statements do not include any adjustments relating to the recoverability and classification of recorded
asset amounts, or to the amounts and classification of liabilities that might be necessary should the Group not
continue as a going concern.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
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:
23
• AASB 16 Leases
•
Interpretation 23 Uncertainty over Income Tax Treatments
• AASB 2017-7 Amendments – Long-term Interests in Associates and Joint Venture Amendments to IAS 28 and
Illustrative Example – Long-term Interests in Associates and Joint Ventures
• AASB 2018-1 Amendments – Annual Improvements 2015-2017 Cycle
• AASB 2018-2 Amendments – Plan Amendment, Curtailment or Settlement (AASB 119)
The adoption of the aforementioned standards have resulted in an immaterial impact on financial statements of the
Group as at 30 June 2020. A discussion on the impact of the adoption of AASB 16 is included below.
AASB 16 Leases
AASB 16 Leases has replaced the previous accounting requirements for leases under AASB 117 Leases. Under the
previous requirements, leases were classified based on their nature as either finance leases, which were recognised on
the Statement of Financial Position, or operating leases, which were not recognised on the Statement of Financial Position.
Under AASB 16 Leases, the Group’s accounting for operating leases as a lessee will result in the recognition of a
right-of-use (ROU) asset and an associated lease liability on the Statement of Financial Position. The lease liability
represents the present value of future lease payments, with the exception of short-term and low value leases.
An interest expense will be recognised on the lease liabilities and a depreciation charge will be recognised for the
ROU assets. There will also be additional disclosure requirements under the new standard.
The Group’s adoption of AASB 16 has resulted in no impact to the financial statements of the Group due to the fact
that the Group has not entered into any transactions or arrangements that would be accounted for as a lease under
the new standard.
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
24
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 25
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.4
Foreign currencies (CONTINUED)
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.
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.
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 (“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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
26
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3.7
Taxation (CONTINUED)
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.
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 implemented the tax consolidation legislation.
The head entity, Black Rock Mining, and any 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 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%
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
27
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.
Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and
transferred to development properties, and then amortized over the life of the reserves associated with the area of
interest once mining operations have commenced.
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
28
3
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.
At each reporting date, the group assess whether there is objective evidence that a financial instrument has been
impaired. If there is objective evidence of impairment, the cumulative loss is measured as the difference between the
acquisition cost and the current fair value, less any impairment loss on that financial asset previously not recognized in
the profit or loss which is removed from equity and recognized in profit and loss.
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
4
CRITICAL ACCOUNTING JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
(CONTINUED)
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.
29
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.
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 109%.
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
2020
Interest
Total revenue
Loss before tax
Fixed asset additions
Depreciation
2020
Total segment assets
Total segment liabilities
2019
Interest
Total revenue
Loss before tax
Fixed asset additions
Depreciation
2019
Total segment assets
Total segment liabilities
GRAPHITE
CORPORATE
CONSOLIDATED
-
-
2,870
2,870
2,870
2,870
(723,507)
(2,663,778)
(3,387,285)
-
(9,923)
3,679
(8,707)
3,679
(18,630)
GRAPHITE
CORPORATE
CONSOLIDATED
22,787,191
830,559
23,617,750
(408,675)
(490,163)
(898,838)
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
6,230
34,424
10,675
GRAPHITE
CORPORATE
CONSOLIDATED
14,590,461
8,509,114
23,099,575
78,714
614,021
692,735
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
6
INCOME TAXES
30
(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% (20189: 27.5%)
Share based payments
Non-deductible expenditure
Capital loss - Loan forgiveness
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
30/06/2020
FOR THE
YEAR ENDED
30/06/2019
$
-
-
-
$
-
-
-
(3,387,285)
(3,387,285)
(2,864,024)
(2,864,024)
(931,504)
83,283
199,295
555,441
(52,681)
146,166
-
(787,607)
100,279
69,566
-
(59,127)
676,889
-
165,642
1,749,602
1,915,244
184,450
1,586,989
1,771,439
1,916,303
1,769,357
(1,059)
-
2,082
-
1,915,244
1,771,439
Unrecognised deferred tax assets
Unused tax losses for which no deferred tax asset has been recognised are $18,455,947 (2019: $16,622,065)
all of which originate within Australia. Potential tax benefit is $5,075,386 (2019: $4,571,068).
Unused tax losses for which no deferred tax asset has been recognised are US$8,877,401 (2019: US$6,942,844)
all of which originate within Tanzania. Potential tax benefit is US$2,663,220 (2019: US$1,371,320).
(d)
Franking credits
The Company has no franking credits available as at 30 June 2020 (2019: Nil).
(e)
Tax Consolidation
The Company and any 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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
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:
31
Cash and bank balances
FOR THE
YEAR ENDED
30/06/2020
$
722,097
722,097
FOR THE
YEAR ENDED
30/06/2019
$
1,907,467
1,907,467
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 loss
Loss on disposal of investment
Impairment of investments
Interest revenue transferred to investing activity
Movements in working capital:
Decrease/(increase) in trade and other receivables
Increase in trade and other payables
Increase in employee entitlements provision
Net cash used in operating activities
7.2 Non Cash transactions
Operating Activity
Options vested during the year in relation to services rendered by
employees and consultants
Payment for services rendered by employees through the issue of shares
Financing activity
Performance rights exercised into shares
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
(3,387,285)
(2,864,024)
18,630
374,246
4,641
114,232
-
(2,870)
10,675
431,311
5,071
-
17,068
(7,939)
(2,878,406)
(2,407,838)
76,993
259,984
25,088
(22,682)
144,613
13,170
(2,516,341)
(2,272,737)
FOR THE
YEAR ENDED
30/06/2020
$
336,746
37,500
FOR THE
YEAR ENDED
30/06/2019
$
-
-
-
31,200
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
32
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
Mahenge Resources Limited
Green Rock Energy International Pty Ltd
Green Rock (Vulcan) Energy Kft
Tanzania
Australia
Hungary
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
30/06/2020
FOR THE
YEAR ENDED
30/06/2019
100%
-
-
100%
100%
100%
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2018
$
20,978,368
16,574,559
1,529,353
262,623
3,487,680
916,128
22,770,344
20,978,368
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
1,458,591
3,686,379
(36,563)
107,325
-
(235,262)
36,563
-
1,529,353
3,487,680
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 $22,770,344 (2019: $20,978,368) at reporting date represents the carrying value of its Graphite
assets in Tanzania.
10 TRADE AND OTHER PAYABLES
Trade creditors
Accruals
Other liabilities
FOR THE
YEAR ENDED
30/06/2020
$
295,795
523,605
19,626
839,026
FOR THE
YEAR ENDED
30/06/2019
$
284,159
310,650
63,202
658,011
Included in trade creditors and accruals is an amount of $107,325 (2019: $36,563) relating to exploration expenditure.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
11
ISSUED CAPITAL
628,943,708 ordinary shares issued and fully paid (30 June 2019: 585,550,851)
11.1 Fully paid ordinary shares
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
33
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
60,989,789
60,989,789
58,086,890
58,086,890
NUMBER OF
SHARES
SHARE
CAPITAL
$
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
Shares issued under Placement 22 August 2019 ($0.07 per share) – Cash
37,000,001
2,590,000
Shares issued to Directors – 28 October 2019 ($0.07 per share) – Cash
Shares issued to Director – 31 December 2019 ($0.07 per share) – Non-cash
5,857,142
535,714
-
410,000
37,500
(134,601)
628,943,708
60,989,789
Less: capital raising costs
Balance at 30 June 2020
11.2 Options
UNLISTED OPTIONS
OPENING
BALANCE
NO.
EXERCISED
IN YEAR
NO.
GRANTED
IN YEAR
NO.
EXPIRED
IN YEAR
NO.
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
Expiring 28 October 2022 at $0.15
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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9,200,000
(5,000,000)
-
-
-
-
-
-
-
-
-
-
9,200,000
(5,000,000)
64,200,000
CLOSING
BALANCE
NO.
-
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
9,200,000
The weighted average exercise price of options at 30 June 2020 is $0.11.
The weighted average remaining contractual life of options as at 30 June 2020 is 369 days (2019: 634 days).
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
1,132,872
1,256,565
2,389,437
796,126
796,854
1,592,980
12 RESERVES (NET OF INCOME TAX)
34
Reserves
Share based payments reserve (i)
Foreign currency translation reserve (ii)
(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: Options vested during the period
Less: Performance rights expired not vested during the year
Less: Performance rights vested and exercised
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
796,126
2,400,333
-
336,746
-
-
-
-
1,132,872
13,224
351,427
(1,737,809)
-
(199,850)
(31,200)
796,126
(ii) Foreign Currency Translation Reserve
The foreign currency translation reserve arises on the consolidation of the Group’s overseas subsidiary,
Mahenge Resources Limited.
13 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
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
37,273,029
36,461,185
3,387,285
-
-
2,864,024
(1,937,659)
(114,521)
40,660,314
37,273,029
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
14 SHARE BASED PAYMENTS
(a)
Employee Share Incentive Scheme
The establishment of the Black Rock Mining 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 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 Black & Scholes
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 14 (i). During the year, the shared based payment expense recognised in the consolidated statement of profit
and loss totaled $374,246 (2019: $431,311).
Share based payment arrangements relating to Directors and employees:
35
I
E
C
R
P
E
S
I
C
R
E
X
E
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.10
$0.15
$0.15
$0.15
GRANT
DATE
EXPIRY
DATE
31-08-20
31-08-20
31-08-20
31-08-20
31-08-20
31-08-20
31-08-20
31-08-20
31-10-21
07-11-21
02-05-22
02-05-22
28-10-22
17-10-17
17-10-17
17-10-17
17-10-17
28-10-17
28-11-17
28-11-17
28-11-17
08-11-18
07-11-18
02-05-19
02-05-19
28-10-19
Mr Crookes
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
F
O
R
E
B
M
U
N
T
A
S
N
O
I
T
P
O
I
I
G
N
N
N
G
E
B
E
H
T
R
A
E
Y
E
H
T
F
O
S
N
O
I
T
P
O
D
E
T
N
A
R
G
R
A
E
Y
S
I
H
T
R
A
E
Y
S
I
H
T
D
E
S
I
C
R
E
X
E
S
N
O
I
T
P
O
,
D
E
S
P
A
L
S
N
O
I
T
P
O
R
A
E
Y
S
I
H
T
D
E
R
P
X
E
I
1,250,000
1,250,000
1,250,000
1,250,000
3,750,000
3,750,000
3,750,000
3,750,000
1,000,000
10,000,000
1,500,000
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
9,200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
F
O
R
E
B
M
U
N
E
H
T
T
A
S
N
O
I
T
P
O
R
A
E
Y
E
H
T
F
O
D
N
E
1,250,000
1,250,000
1,250,000
1,250,000
3,750,000
3,750,000
3,750,000
3,750,000
1,000,000
S
N
O
I
T
P
O
E
L
B
A
S
I
C
R
E
X
E
D
N
E
E
H
T
T
A
R
A
E
Y
E
H
T
F
O
1,250,000
1,250,000
1,250,000
1,250,000
3,750,000
3,750,000
3,750,000
3,750,000
1,000,000
10,000,000
10,000,000
1,500,000
1,500,000
9,200,000
1,500,000
1,500,000
9,200,000
E
T
A
D
T
N
A
R
G
T
A
E
U
L
A
V
R
A
F
I
$0.0259
$0.0259
$0.0259
$0.0259
$0.0122
$0.0140
$0.0193
$0.0259
$0.0094
$0.0132
$0.0408
$0.0271
$0.0268
TRANCHE A
TRANCHE B
TRANCHE C
28-Oct-19
800,000
28-Oct-19
800,000
28-Oct-19
800,000
Black & Scholes
Black & Scholes
Black & Scholes
5.6
15
109%
5.6
15
109%
5.6
15
109%
3.00 years
3.00 years
3.00 years
Nil
0.74%
Nil
0.74%
Nil
0.74%
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
36
14 SHARE BASED PAYMENTS (CONTINUED)
(a)
Employee Share Incentive Scheme (CONTINUED)
Mr de Vries
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 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
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
TRANCHE A
TRANCHE B
TRANCHE C
28-Oct-19
1,200,000
28-Oct-19
1,200,000
28-Oct-19
1,200,000
Black & Scholes
Black & Scholes
Black & Scholes
5.6
15
109%
5.6
15
109%
5.6
15
109%
3.00 years
3.00 years
3.00 years
Nil
0.74%
Nil
0.74%
Nil
0.74%
TRANCHE A
TRANCHE B
TRANCHE C
28-Oct-19
533,333
28-Oct-19
533,333
28-Oct-19
533,333
Black & Scholes
Black & Scholes
Black & Scholes
5.6
15
109%
5.6
15
109%
5.6
15
109%
3.00 years
3.00 years
3.00 years
Nil
0.74%
Nil
0.74%
Nil
0.74%
TRANCHE A
TRANCHE B
TRANCHE C
28-Oct-19
533,333
28-Oct-19
533,333
28-Oct-19
533,333
Black & Scholes
Black & Scholes
Black & Scholes
5.6
15
109%
5.6
15
109%
5.6
15
109%
3.00 years
3.00 years
3.00 years
Nil
0.74%
Nil
0.74%
Nil
0.74%
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
14 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.
37
2020
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
2019
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
Balance at the beginning of
the financial year
Granted during the financial year:
- Directors
- Employees
Forfeited/Expired
Exercised
34,000,000
10.44
20,000,000
9,200,000
15.00
-
-
-
-
-
-
13,000,000
1,000,000
-
-
Balance at the end of the financial year
43,200,000
11.41
34,000,000
Vested and Exercisable at
the end of the year
43,200,000
11.41
20,000,000
10.00
11.15
10.00
-
-
10.44
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 vested and exercisable at the end of the financial year under the Plan had a weighted
average exercise price of $0.1141 (2019: $0.1000) and a weighted average remaining contractual life of 396 days
(2019: 428 days).
15 KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel of Black Rock Mining during the year were:
Richard Crookes
Non-Executive Chairman
Appointed – 16 October 2017
Appointed – 2 May 2019
Ian Murray
John de Vries
Non-Executive Director
Chief Executive Officer & Managing Director
Appointed – 16 March 2017
Gabriel Chiappini
Non-Executive Director Company Secretary
Appointed – 21 March 2012
Details of the remuneration of key management personnel are set out as follows:
Short-term employee benefit
Post-employment benefits
Share-based payments
Bonus
Other
FOR THE
YEAR ENDED
30 JUNE 2020
$
FOR THE
YEAR ENDED
30 JUNE 2019
$
569,145
40,770
265,345
-
-
875,260
491,811
36,337
237,554
75,000
23,088
863,790
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
38
16 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 is Deloitte Touche Tohmatsu.
17 RELATED PARTY TRANSACTIONS
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
37,275
11,153
48,428
28,605
10,512
39,117
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 costs were incurred to Key Management Personnel for services in addition
to those shown elsewhere in this note:
DIRECTOR
VALUE $
DESCRIPTION
Gabriel Chiappini
72,270
Amounts to Laurus Corporate Services, a Company Mr Chiappini
is a shareholder and director of, for the provision of Company
Secretarial and Non-executive Director services.
18 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
Mining License
Mahenge North
Mining License
ML 611/2019
ML 612/2019
9.94
9.79
Mahenge North
Prospecting License
PL 13752/2019
118.37
Makonde
Prospecting License
PL 10111/2014
Mahenge East
Prospecting License
PL 10426/2014
Mahenge Southwest
Prospecting License
PL 10427/2014
12.55
77.46
111.6
USD 2,000
USD 2,000
USD 100
USD 150
USD 150
USD 150
USD 19,880
USD 19,580
USD 11,837
USD 1,883
USD 11,619
USD 16,740
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 2020.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
18 EXPENDITURE COMMITMENTS (CONTINUED)
a.
Exploration (CONTINUED)
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 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 Black Rock Mining 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 Program
There are no commitments to exploration as at the date of this report.
39
b.
Capital Commitments
The Group has no capital commitments (2019: Nil).
c.
Operating Lease Commitments
On 1 June 2020 the Company extended the license agreement for its service office at 45 Ventnor Avenue,
West Perth with the following applicable terms and conditions:
Commencement date:
1 June 2020
Expiry date:
31 May 2021
Monthly License fee:
$4,200 ex. GST
Notice period:
from 1 June 2020 either party may terminate the license by providing 60 days notice.
The Group has assessed its operating lease and determined that it does not fulfil the requirements of AASB 16.
At 30 June 2020 the Company had a commitment under the license of $48,855 ex GST all of which is due and payable
within 12 months. The Company was granted rent relief for two months reducing its commitment by $3,780 (ex GST).
d.
Contractual Commitments
As at 30 June 2020, the Group had no contractual expenditure commitments in place. (June 2019: Nil)
19 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
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
Profit/(Loss) used in calculating basic and diluted loss per share
(3,387,285)
(2,864,024)
Weighted average number of ordinary shares used in calculating basic and
diluted profit/(loss) per share:
621,227,172
530,943,396
Basic and diluted profit/(loss) per share
($0.00545)
($0.00539)
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
40
20 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 2019.
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
Other receivables
Total financial assets
Financial liabilities
Trade and other payables
Provisions
Total financial liabilities
Net financial instruments
FOR THE
YEAR ENDED
30/06/2020
FOR THE
YEAR ENDED
30/06/2019
722,097
93,368
815,465
(839,026)
(59,812)
(898,838)
(83,373)
1,907,467
170,361
2,077,828
(658,011)
(34,724)
(692,735)
1,385,093
The capital structure of the Group consists of net debt (current liabilities 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
11,12 and 13).
a.
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
Other receivables
Trade and other payables
FOR THE
YEAR ENDED
30/06/2020
$
722,097
93,368
FOR THE
YEAR ENDED
30/06/2019
$
1,907,467
170,361
(839,026)
(23,561)
(658,011)
1,419,817
Refer to Going Concern assumption disclosure for further details on working capital management.
Financial risk management
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
20 FINANCIAL INSTRUMENTS (CONTINUED)
Market risk
Foreign exchange risk
41
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 $72,293 higher/lower (2019: $19,811 higher/ lower)
had the Australian dollar strengthened/weakened by 10% against the US Dollar.
Cash flow and fair value interest rate risk
The Group is exposed to interest rate risk through cash and cash equivalents $722,097 (2019: $1,907,467).
At 30 June 2020, 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 $287 lower/higher (2019: $794 lower/
higher) mainly as a result of interest income deceases/increases.
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
Other receivables
Restricted Cash
< 30 DAYS
$20,704
$45,000
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.
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
<1 MONTH
$295,795
Fair value estimation
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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
NOTES TO
THE CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
21 CONTINGENT LIABILITIES
There were no material contingent liabilities as at 30 June 2020. (2019: Nil)
42
22 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 31 July 2020 Black Rock Mining announced, that further to the announcement on 29 April 2020, that it had
progressed formal negotiations to resolve the structure and nature of the Free Carried Interest (FCI) with the
Government of the United Republic of Tanzania (Tanzanian Government). On 8 September 2020 Black Rock Mining
announced that its potential Strategic Alliance and Development partner, POSCO Limited (POSCO), is making
meaningful progress on due diligence activities, including battery manufacture and extended battery performance
testing and had extended the due diligence process to 20 November 2020.
- On 11 August 2020 Black Rock Mining announced, that the fully underwritten non-renounceable Entitlement Offer
to raise approximately $1.65 million as announced by the Company on 3 July 2020, settled with all the securities
under the offer allotted. Under the terms of the Entitlement Offer Eligible Shareholders were entitled to apply for
one (1) New Share at an issue price of $0.042 (4.2 cents) for every sixteen (16) shares held on the Record Date.
Each New Share issued under the terms of the Entitlement Offer receive one (1) free attaching New Option
exercisable at $0.084 (8.4 cents), expiring three (3) years after the issue date. Under the Entitlement Offer the
Company offered a maximum of 39,308,982 new shares to raise approximately $1.65 million.
- On 8 September 2020 Black Rock Mining announced that its potential Strategic Alliance and Development partner,
POSCO Limited (POSCO), is making meaningful progress on due diligence activities, including battery manufacture
and extended battery performance testing and had extended the due diligence process to 20 November 2020.
- On 15 September 2020 Black Rock Mining announced that the Government of Tanzania had officially published
regulations concerning graphite concentrate exports, having issued Government Notice 687 of 2020 “The Mining
(Value Addition) Regulations, 2020”. The updated regulation continues the policy of maintaining a minimum graphite
concentration of 65% total graphitic carbon and payment of royalties as conditions of export. The 2020 regulations
revoke the 2019 “The Mining (Mineral Value Addition) Guidelines of 2019. Black Rock Mining has demonstrated in
two independent pilot plant operations that Mahenge can produce graphite concentrate at grades of up to 98%
Carbon by LOI thereby confirming Black Rock Mining’s Definitive Feasibility Study view that Mahenge graphite
concentrate is suitable for export.
- During March 2020 and up until the date of this report, Australia and much of the World has been impacted by
the spread of the COVID-19 virus. COVID-19, announced as a global pandemic by the World Health Organization on
11 March 2020, is a non- adjusting subsequent event which has the potential to significantly impact business activity
and economic conditions worldwide after reporting date. While the exact economic impact on the business cannot
be estimated, the Group has taken action to continue to pursue its projects. To date, there has been no significant
impact on the current operations of the business or the financial position as at 30 June 2020.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT 23 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.
43
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
Commitments and contingent liabilities are consistent with Note 21.
FOR THE
YEAR ENDED
30/06/2020
$
FOR THE
YEAR ENDED
30/06/2019
$
814,881
7,000,315
7,815,196
2,049,141
6,454,731
8,503,872
490,164
614,019
-
-
490,164
614,019
60,989,790
58,086,890
(54,797,630)
(50,993,163)
1,132,872
7,325,032
796,126
7,889,853
FOR THE
YEAR ENDED
30/06/2020
FOR THE
YEAR ENDED
30/06/2019
$
3,804,467
18,868,356
-
-
3,804,467
18,868,356
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
DIRECTORS’
DECLARATION
The directors declare that:
44
(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
CHAIRMAN
Perth, 29 September 2020
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT INDEPENDENT
AUDITOR’S REPORT
Deloitte Touche Tohmatsu
ABN 74 490 121 060
45
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
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
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
Independent Auditor’s Report to the
members of Black Rock Mining Limited
Independent Auditor’s Report to the
Report on the Audit of the Financial Report
members of Black Rock Mining Limited
Opinion
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
Opinion
June 2020, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
We have audited the financial report of Black Rock Mining Limited (the “Company”) and its
year then ended, and notes to the financial statements, including a summary of significant
subsidiaries (the “Group”) which comprises the consolidated statement of financial position as at 30
the directors’ declaration.
accounting policies and other explanatory
June 2020, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
year then ended, and notes to the financial statements, including a summary of significant
Act 2001, including:
the directors’ declaration.
accounting policies and other explanatory
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
information, and
June 2020, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
the directors’ declaration.
accounting policies and other explanatory
information, and
Report on the Audit of the Financial Report
information, and
Opinion
(i)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
financial performance for the year then ended; and
Act 2001, including:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations
Act 2001, including:
(ii)
(i)
(i)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and
(ii)
Basis for Opinion
complying with Australian Accounting Standards and the Corporations Regulations 2001.
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
(ii)
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
Basis for Opinion
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
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
Report section of our report. We are independent of the Group in accordance with the auditor
Report section of our report. We are independent of the Group in accordance with the auditor
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
independence requirements of the Corporations Act 2001 and the ethical requirements of the
independence requirements of the Corporations Act 2001 and the ethical requirements of the
with the Code.
Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
We confirm that the independence declaration required by the Corporations Act 2001, which has
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
been given to the directors of the Company, would be in the same terms if given to the directors as
with the Code.
with the Code.
at the time of this auditor’s report.
We confirm that the independence declaration required by the Corporations Act 2001, which has
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
been given to the directors of the Company, would be in the same terms if given to the directors as
for our opinion.
at the time of this auditor’s report.
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.
Material Uncertainty Related to Going Concern
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Material Uncertainty Related to Going Concern
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
We draw attention to Note 1 in the financial report which indicates that the Group incurred net losses
Material Uncertainty Related to Going Concern
of $3,387,285, experienced net cash outflows from operating activities of $2,516,341 and net cash
outflows from investing activities of $1,530,162 for the year ended 30 June 2020. As stated in Note
We draw attention to Note 1 in the financial report which indicates that the Group incurred net losses
1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material
of $3,387,285, experienced net cash outflows from operating activities of $2,516,341 and net cash
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
outflows from investing activities of $1,530,162 for the year ended 30 June 2020. As stated in Note
concern. Our opinion is not modified in respect of this matter.
1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material
Liability limited by a scheme approved under Professional Standards Legislation.
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
We draw attention to Note 1 in the financial report which indicates that the Group incurred net losses
of $3,387,285, experienced net cash outflows from operating activities of $2,516,341 and net cash
outflows from investing activities of $1,530,162 for the year ended 30 June 2020. As stated in Note
1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material
uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going
concern. Our opinion is not modified in respect of this matter.
Liability limited by a scheme approved under Professional Standards Legislation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
Member of Deloitte Asia Pacific Limited and the Deloitte Network.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
INDEPENDENT
AUDITOR’S REPORT
46
Our procedures in relation to going concern included, but were not limited to:
•
•
•
•
Inquiring of management and the directors in relation to events and conditions that may
impact the assessment on the Group’s ability to pay its debts as and when they fall due;
Challenging the assumptions reflected in management’s cash flow forecast, including the
timing of expected cash flows, including the uncertainty in relation to the impact of
COVID-19 on the Group
Assessing the impact of events occurring after balance date on the financial statements;
and
Assessing the adequacy of the disclosure related to going concern in Note 1 to the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial report of the current period. These matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. In addition to the matter described in the Material
Uncertainty Related to Going Concern section, we have determined the matter described below to
be the key audit matters to be communicated in our report.
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 2020, the carrying value of
exploration and evaluation assets amounts
including additions of
to $22,770,344
$1,791,976 as disclosed in Note 10.
judgement
Significant
in
determining the treatment of exploration
and evaluation expenditure including:
conditions
• whether
is applied
the
capitalisation are satisfied;
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.
•
•
Our procedures associated with exploration and
evaluation expenditure incurred during the year
included, but were not limited to:
•
•
obtaining an understanding of the key
controls associated with the capitalisation
or expensing of exploration and evaluation
expenditure; and
testing on a sample basis, exploration and
evaluation expenditure to confirm the
nature of the costs incurred, and the
appropriateness of
classification
between asset and expense.
the
Our procedures associated with the carrying value
of exploration and evaluation assets included, but
were not limited to:
•
•
obtaining an understanding of the key
controls associated with the identification
of indicators of impairment;
impairment
evaluating management’s
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;
with
management as to the status of
o holding
discussions
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
47
ongoing exploration programmes
in the respective areas of interest;
and
o assessing whether any facts or
circumstances existed to suggest
impairment testing was required.
We also assessed the appropriateness of the
disclosures in Note 10 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 2020, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and 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 have 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
intentional omissions,
involve collusion,
fraud may
misrepresentations, or the override of internal control.
forgery,
• 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.
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
INDEPENDENT
AUDITOR’S REPORT
48
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial
report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the financial report.
We are responsible for the direction, supervision and performance of the Group’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, actions
taken to eliminate threats or safeguards applied.
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 2020.
In our opinion, the Remuneration Report of Black Rock Mining Limited, for the year ended 30 June
2020, complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
DELOITTE TOUCHE TOHMATSU
Ian Skelton
Partner
Chartered Accountants
Perth, 29 September 2020
BLACK ROCK MINING LIMITED2020 ANNUAL REPORT
ADDITIONAL
ASX INFORMATION
ORDINARY FULLY PAID SHARES
Range of units as at 22 September 2020
RANGE
TOTAL HOLDERS
UNITS
% UNITS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
142
158
172
890
528
50,271
467,407
1,392,723
37,149,562
629,192,726
1,890
668,252,689
0.01
0.07
0.21
5.56
94.15
0.00
100.00
Unmarketable parcels
Minimum $ 500.00 parcel at $ 0.0560 per unit
8,929
403
1,230,838
MINIMUM PARCEL SIZE
HOLDERS
UNITS
Top 20 Shareholders as at 22 September 2020
RANK NAME
UNITS
% UNITS
49
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
EYEON INVESTMENTS PTY LTD
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