ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
BLACK ROCK MINING LIMITED
ABN: 59 094 551 336
CORPORATE DIRECTORY
DIRECTORS
Richard Crookes
Non-Executive Chairman
John de Vries
Chief Executive Officer, Managing Director
Ian Murray
Non- Executive Director
Gabriel Chiappini
Non-Executive Director
Gabriel Chiappini
45 Ventnor Street,
West Perth Western Australia, 6005
T: +61 (08) 9389 4415
F: +61 (08) 9389 4400
www.blackrockmining.com.au
Deloitte Touche Tohmatsu
Tower 2, Brookfield Place
123 St Georges Terrace
Perth Western Australia, 6000
T: +61 (08) 9365 7000
F: +61 (08) 9365 7001
COMPANY
SECRETARY
PRINCIPAL
PLACE OF
BUSINESS AND
REGISTERED
OFFICE
AUDITOR
SHARE
REGISTRY
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth Western Australia, 6000
T: +61 1300 787 272
F: +61 (08) 9323 2033
E: web.queries@computershare.com.au
STOCK
EXCHANGE
LISTING
The Company’s shares are quoted on the
Australian Securities Exchange (ASX).
The Home Exchange is Perth.
ASX CODE
BKT – ordinary shares
02
CHIEF EXECUTIVE OFFICER’S REPORT
07
DIRECTORS’ REPORT
19
AUDITOR’S INDEPENDENCE DECLARATION
20
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
22
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
23
CONSOLIDATED STATEMENT OF CASH FLOWS
24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
46
DIRECTORS’ DECLARATION
47
INDEPENDENT AUDITOR’S REPORT
51
ADDITIONAL ASX INFORMATION
A SNAPSHOT
OF THE
MAHENGE
GRAPHITE
MINE
US$1.2B
Post-tax, ungeared real NPV10
US$1,301/t
Basket graphite price
(net FOB)
US$116M
Phase 1 development capex
350ktpa
Phase 4 output
(4Mtpa ROM)
45%
Post-tax, ungeared,
real IRR
83ktpa
Phase 1 output
(1Mtpa ROM)
US$494/t
LOM All-In-Sustaining-Cost
95 - 99%+ TGC purity
59% +80 mesh, 41% -80
Concentrate product
SIMPLE OPEN PIT
MINE DEVELOPMENT
WITH OUTSTANDING
FORECAST RETURNS
Following release of the Enhanced Definitive Feasibility Study (eDFS) 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
eDFS. All financial forecasts, material assumptions and technical parameters, including in the estimation of Mineral Resources or Ore Reserves, underpinning the
estimates in the eDFS continue to apply and have not materially changed. The estimated Ore Reserves and Mineral Resources underpinning the production and
financial forecasts in the eDFS were prepared by Competent Persons in accordance with the requirements in Appendix 5A (JORC Code).
01
26 yearsInitial operating lifeBLACK ROCK MINING LIMITED2021 ANNUAL REPORT CHIEF
EXECUTIVE
OFFICER’S
REPORT
Mahenge Graphite Project The demand for
Graphite is entering an unprecedented period as the
world focuses on the production of minerals, to meet
the growing demand for clean energy technologies.
Decarbonisation of the planet, will put a spotlight on
mining and ultimately those that will participate in
the long term, will be climate-smart and be part of
value chains that are sustainable and green.
Black Rock Mining’s Mahenge Graphite Mine
will be one of them.
Mahenge’s 212 million tonne
Mineral Resource makes it the 4th
largest graphite resource in the
world1. Its green credentials are
driven by geology and geography,
which is hard to replicate.
Favourable geology sees that the
Graphite Resource has very low
impurities which means it can
produce very high purity (up to
99% TGC1), without the need for
typical acid interference. In fact,
the Mahenge Graphite concentrate
is processed using a conventional
water-based flotation method.
The mine is supported by good
access to key infrastructure. The
geography delivers Grid Power, Rail,
Airstrip, Water and Tailings disposal
(dry stack) logistics advantages with
processing through Dar es Salaam
high volume container port.
1 Refer ASX Announcement 25th July 2019 -
Mahenge DFS Enhanced with Summary
02
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT Graphite is used in
many applications
from electric vehicles
to fire-proof building
cladding. The well
established downstream
infrastructure and
supply chains that
make these products
are highly capital
intensive and bespoke.
alliance with Korea’s POSCO Group
(“POSCO”), one of the world’s
largest producers of battery anode
material and a major participant
in the global Lithium-ion Battery
industry. The Company completed
detailed due diligence work,
regulatory approvals, supply chain
testing, and extensive qualification
activities including commercial-scale
pilot plant sampling and product
quality assurance. This culminated
in POSCO completing the US$7.5m,
15% equity investment in Black
Rock Mining, with POSCO now being
both a cornerstone commercial
customer and shareholder.
Importantly, commercial and
technical qualification with POSCO,
represents absolute validation
that Black Rock Mining has a real
product to sell, into a real customer
market, which is supported by a
price deck that reconciles with
our project economics. Positive
discussions continue with respect
to POSCO providing a prepayment
financing facility of up to US$20m.
Partners and Customers
The Company’s strategy has been
clear from our inception in terms
of how and where we intend to
participate in the global Graphite
supply chain. We are solely
upstream focused, and this
means that we are miners.
“We mine, they make” –
I’ve used this term extensively
to demonstrate this strategy.
Once mined, Graphite is processed
over several steps before it
makes its way into the hands of
manufacturers who can take the
processed material and “make”
products. These products will
have a significant contribution to
a cleaner future. Graphite is used
in many applications from electric
vehicles to fire-proof building
cladding. The well established
downstream infrastructure and
supply chains that make these
products are highly capital intensive
and bespoke. Our decision to
play in the upstream space is
underpinned by the geological
and geographical advantages of
Mahenge – in other words, the
Mahenge Graphite Mine stands
up on its own as a low cost,
high margin operation.
Black Rock Mining does not need
a downstream operation to work.
With our focus on the “mine”, the
quality of downstream partners and
customers is therefore critical to
our business model. Over the year,
we have developed our strategic
03
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT CHIEF
EXECUTIVE
OFFICER’S
REPORT
With a market validated product,
Black Rock Mining commenced the
process to begin migrating existing
customer offtake commitments
to a binding status. Following the
end of the period, the Company
confirmed two of its existing
five offtake commitments with
Taihe Soar (Dalian) Supply Chain
Management (“Taihe Soar”) and
Qingdao Yujinxi New Material Co Ltd
(“New Materials”), were successfully
converted to binding term sheets, for
the supply of large flake concentrate
(>+100 mesh) and remain subject
to both parties satisfying certain
conditions precedent.
Critically, the new offtake
agreements include a prepayment
component, and are price indexed
to visible published indices,
RefWin and ICCSino.
Mahenge’s green footprint has
been well documented, and with
that, the Company extended its
sustainability responsibility to
include the whole of supply chain
with our downstream partners.
Black Rock Mining entered into a
Memorandum of Understanding
(“MOU”) with Urbix, Inc (“Urbix”),
a US based Clean Tech and
Advanced Materials Company
specialising in the innovative and
sustainable processing technologies
for Graphite. Currently, all of the
world’s Graphite processing into
battery anode material occurs in
China using traditional Hydrofluoric
Acid (“HF”) methods with associated
high power consumption.
Urbix methods instead use a
patented technique to process
Graphite into battery anode
material without HF, and ultimately
the output delivers a significantly
higher product yield (70%-80%
versus current industry standard of
35%), which represents a significant
advantage to Black Rock Mining and
its downstream customers.
Black Rock Mining holds the
view that there is little value in
sending our Graphite concentrate
down the supply chain to make
batteries that go into electric
vehicles, if the process to do that
is not as green as the intended
benefit that electrification of
transport represents. This is why
the partnership with Urbix is so
important in delivering significant
environmental and economic
benefits to our stakeholders and
that of all stakeholders across the
whole battery anode supply chain.
This marks our desire to further
differentiate our supply chain from
competing brands.
500 TONNE MAHENGE BULK SAMPLES ARRIVE FOR POSCO
SUPPLY CHAIN QUALIFICATION TEST WORKS
04
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT LEFT RAP - PUBLIC MEETING TO
SENSITISE LOCAL COMMUNITIES ON
RESETTLEMENT PROCESS
BELOW RAP - FIELD OFFICERS ASSISTING
WITH NATIONAL ID REGISTRATION
Tanzanian Activities
Black Rock Mining continues to
progress positive discussions with
the Government of Tanzania on
the mechanics of implementing
a Framework Agreement on Free
Carried Interest (“FCI”) provisions
of the 2017 Mining Act. We see
this as a critical step as part of
our commitment to the people
of Tanzania to demonstrate
confidence that the benefits from
Mahenge will flow through to the
economy and local communities,
but also for increased confidence
for all stakeholders that have and
continue to support the Company.
Good progress is being made where
I remain confident that a timely
and appropriate resolution will
be delivered which will allow the
Company to derisk the project and
progress towards making a final
investment decision and ultimately
commence development of the
Mahenge Graphite Project.
Black Rock Mining noted during the
year that the clarity provided by
published regulations announced
by the Government of Tanzania
concerning graphite concentrate
exports (Notice 687 of 2020 “The
Mining (Value Addition) Regulations,
2020), confirms Black Rock Mining’s
Definitive Feasibility Study view
that Mahenge graphite concentrate
is suitable for export. Black Rock
Mining has demonstrated in two
independent pilot plant operations
that Mahenge can produce graphite
05
concentrate at grades of up to
98% Carbon by LOI, easily
meeting the minimum graphite
concentration of 65% total graphitic
carbon set by the regulations2.
Following the completion of
field activities, Black Rock Mining
received approval from the Chief
Government Valuer’s office for its
Resettlement Action Plan (“RAP”)3.
An important endorsement of our
social licence and recognition of the
positive community consultation
and approach undertaken by
our local partners and Mahenge
Resources Limited, the Company’s
Tanzanian subsidiary.
In anticipation of commencement
of onsite activities, the Company
has commenced a front end
loading process for resettlement
of affected persons impacted by
the project development. At this
stage, the process is one of change
management with compensation and
physical resettlement commencing
only after a FCI Framework
Agreement with the Government
of Tanzania and a final investment
decision has been reached.
2 Refer ASX Announcement 15th September
2020 - Black Rock meets Tanzanian Graphite
Export Regulation
3 Refer ASX Announcement 28th October 2020
– September 2020 Quarterly Activities Report
ABOVE RAP - PUBLIC PROCESS
ENCOURAGES COMMUNITY
PARTICIPATION IN DEVELOPING HOW
RESETTLEMENT WILL OCCUR
LEFT RAP – FIELD OFFICERS SUPPORT
COMMUNITY TO MAP LAND USE AS PART
OF COMPENSATION DETERMINATION
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
CHIEF
EXECUTIVE
OFFICER’S
REPORT
I believe that we are at
the junction of a very
rewarding journey, not
just for stakeholder
value, but importantly as
substantial participants
as part of the global
transition to a low
carbon future.
Corporate
During the year, Black Rock
Mining managed its balance sheet
and capital structure sensibly
raising A$3.65M via a placement
and entitlement offer, ahead of
securing the US$7.5M (A$9.7M)
equity investment by POSCO.
The Company is well funded
heading into FY22, with A$11.3M
cash at bank as at 30 June 2021.
Black Rock Mining also maintained
its prudent view on operating
expenditure during the year,
with the continued deferral of
remuneration for all Directors,
staff and Full Time Equivalent
contractors by 75%, following a
progressive adoption of 50% in
November 2019, and a further 25%
in April 20204. Following funding
by POSCO the austerity measures
were tapered off.
At the back end of the year,
the Company began to transition
its focus towards construction
of the Mahenge Graphite Mine,
and in doing so appointed highly
experienced project manager,
Mr Daniel Pantany, as General
Manager, Engineering &
Technical. Already, this is proving
important as we prepare to make
a final investment decision and
consequently scale up our project
development execution, and
planning for commissioning and
ramp up.
Finally, I would also like to take
this opportunity to thank you,
our loyal and growing number of
shareholders, for your continued
support. I believe that we are at
the junction of a very rewarding
journey, not just for stakeholder
value, but importantly as
substantial participants as part
of the global transition to a low
carbon future.
John de Vries
CHIEF EXECUTIVE OFFICER
4 Refer ASX Announcement 30th April 2020 –
March 2020 Quarterly Activities Report
* Global Production Supply 2019 (U.S.
Geological Survey, Mineral Commodity
Summaries, January 2020). Black Rock’s
Mahenge Graphite mine share is based
on planned annual 85,000 tonne versus
estimated global production output in 2024
of 2.325 Mt (Estimate from Benchmark
Mineral Intelligence Q4 2018).
06
BLACK ROCK MINING LIMITED2021 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 2021. 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
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 three years
immediately prior to the date of this report.
NAME
DATE APPOINTED
DATE RESIGNED
Highfield Resources Ltd
Lithium Power International Ltd
Barton Gold Holdings Ltd
April 2013
November 2018
February 2021
Current
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 fellow of 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, and Gold Road Resources.
More recently, as Chief Executive Officer and Managing Director, he successfully delivered
Gold Road Resources’ (ASX:GOR) Gruyere Project, and has significant African experience
through DRDGold.
Mr Murray is a member of the Audit Committee and Chair of the Remuneration Committee.
Mr Murray held directorships with the following listed Companies in the three years
immediately prior to the date of this report.
NAME
Gold Road Resources Ltd
Gascoyne Resources Ltd
Matador Mining Ltd
Geopacific Resources Ltd
Todd River Resources Ltd
DATE APPOINTED
DATE RESIGNED
October 2007
October 2018
May 2020
September 2019
September 2020
January 2019
October 2018
Current
Current
Current
Mr de Vries has over 30 years’ experience in the mining industry. He started his career in
1984 working for WMC Resources and held operational roles such as Underground Manager,
Senior Mining Engineer and Manager Mining. In 1998, he moved to AMC Consultants to
become a Principal Mining Engineer responsible for Mine Optimisation. In 2003, he joined
Orica Mining Services as Global Business Manager, Advanced Mining Solutions, before moving
to BHP Billiton in 2007 as the Manager Strategic Mine Planning.
Most recently from 2011 to 2015, he was General Manager Technical Services for St Barbara.
After his success with St Barbara, Mr de Vries took an 18-month sabbatical before joining
Black Rock Mining.
Mr de Vries holds a Bachelor of Engineering, Mining, a Master of Science in Mineral
Economics, a Graduate Diploma in Economic Geology, a Graduate Diploma in Financial
Markets and is Advisory Committee Member-Mining of MRIWA. Mr de Vries holds a WA First
Class Mine Managers Certificate of Competency. He is a member of the AusIMM, a fellow of
FINSIA and a member of SME.
Mr de Vries does not currently hold any other directorships, nor has he in the past three years.
Richard Crookes
Non-Executive
Chairman
Ian Murray
Non-Executive
Director
John de Vries
Managing Director
CEO
07
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT DIRECTORS’
REPORT
INFORMATION ABOUT THE DIRECTORS - CONTINUED
NAME
PARTICULARS
Gabriel Chiappini
Non-Executive
Director and
Company Secretary
Mr Chiappini is an experienced ASX director and has been active in the capital markets for
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
FBR Limited:
- Non-Executive Director
- Non-Executive Chairman
Gefen International A.I. Ltd
DATE APPOINTED
DATE RESIGNED
August 2015
September 2016
Current
April 2021
December 2011
March 2012
July 2021
August 2018
November 2015
Current
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 the Mahenge Graphite Project in the Mahenge region of Tanzania.
The Company reported 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 (“DFS”). The study confirms Mahenge’s potential as a long-life,
low capex, high margin operation. In July 2019 the Company issued an enhanced DFS (“eDFS”) with the addition of
a fourth production module.
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 eDFS estimated a post-tax, unlevered, Internal Rate of Return (“IRR”) for the Project of 44.8%; and a Net Present
Value (“NPV”) using a discount rate of 10% (“NPV10“) of US$1.2bn. Black Rock Mining confirms, the key assumptions
used in the eDFS have not materially changed and that the material assumptions continue to apply for the
optimised study released in July 2019.
Black Rock Mining confirms that it’s eDFS 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. In June 2021, POSCO completed its US$7.5M (A$9.7M) strategic investment in the Company
through the issue of 126,020,001 shares for a 15% strategic investment in Black Rock Mining. Subject to POSCO
maintaining a minimum 10% equity interest in Black Rock Mining, POSCO has the right to nominate a Director to
the board of Black Rock Mining.
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.
08
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT REVIEW AND RESULTS OF OPERATIONS AND ACTIVITIES
Results of Operations
The consolidated loss after tax for the year ended 30 June 2021 was $2,850,250 (2020: $3,387,285).
Principal activities during the year included:
• Ongoing discussion with the Government of Tanzania regarding Free Carried Interest agreement
• Chief Government Valuer’s office approved Black Rock Mining’s Resettlement Action Plan
• Tanzanian Investment Bank commenced due diligence on possible funding of the Mahenge Graphite Project
• Black Rock Mining meeting the Tanzanian Export regulations
• Completed an entitlement offer in August 2020 grossing A$1.65M and a placement in October 2020
grossing A$2M
• POSCO Strategic Alliance & Development Relationship advanced
• POSCO successfully completed due diligence activities
• Mahenge Graphite was able to meet POSCO’s battery grade anode specification
• POSCO invested US$7.5m (A$9.7M) acquiring a 15% stake in Black Rock Mining
• Negotiations commenced with POSCO for an Offtake & Prepayment Agreement
• Mr Daniel Pantany was appointed as General Manager, Engineering & Technical
Impact of COVID-19
The COVID-19 outbreak and the subsequent quarantine measures imposed by the Australian and other
governments, and related travel and trade restrictions have caused disruption to businesses and resulted in
significant global economic impacts. As at 30 June 2021, these impacts have not had a significant effect on the
Group’s financial results or operations. However, as the impact of COVID-19 continues to evolve, including changes
in government policy and business reactions thereto, if our staff are unable to work or travel due to illness or
government restrictions, we may be forced to reduce or suspend our exploration and potential development
activities. In addition, as the COVID-19 pandemic and mitigation measures have also negatively impacted global
economic conditions, this, in turn, could adversely affect our business in the future. Due to the continually evolving
nature of COVID-19 the Directors cannot reasonably estimate the effects that the COVID-19 pandemic could have
on future periods and believes that any disturbance may be temporary. However, there is uncertainty about the
length and potential impact of any resultant disturbance. As a result, we are unable to estimate the potential impact
on the Group’s future operations as at the date of these Financial Statements.
Corporate and Financial Position
Consolidated net assets at year-end were $33,163,048 against $22,718,912 at the close of the prior year.
Total cash held at year-end was $11,298,422 (2020: $722,097).
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
Other than the above, there have not been any significant changes in the State of Affairs of the Company. Black
Rock Mining remains focused on developing its Mahenge Graphite Project in Tanzania (“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.
09
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
REPORT
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 1 July 2021 Black Rock Mining announced that it had signed a Memorandum of Understanding with United
States based Clean Tech Graphite Processing Company Urbix, Inc for an innovative supply chain partnership
collaboration on battery anode processing.
- On 13 August 2021 Black Rock Mining announced that new Binding Term Sheets for Offtake had been agreed
with the Company’s existing Offtake customers, Taihe Soar (Dalian) Supply Chain Management and Qingdao
Yujinxi New Material Co Ltd. The binding agreements are for the supply of large flake graphite concentrate and
remain subject to both parties satisfying certain conditions precedent.
FUTURE DEVELOPMENTS
Black Rock Mining remains focused on developing its Mahenge Graphite Project in Tanzania. Subject to the Board of
Black Rock Mining making a final investment decision, the Company will move 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 11,000,000 share options were granted to the Directors of the Company. For further details,
refer to the table included in the remuneration report below.
Share options on issue
The details of the options on issue as at the date of this report are as follows:
ISSUING ENTITY
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
NUMBER
OF SHARES
UNDER OPTION
CLASS OF
SHARES
EXERCISE PRICE
OF OPTION
EXPIRY DATE
OF OPTIONS
13,000,000
5,000,000
3,000,000
1,000,000
3,000,000
9,200,000
34,054,520
5,000,000
11,000,000
1,000,000
1,500,000
1,500,000
88,254,520
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
$0.100
$0.200
$0.100
$0.100
$0.150
$0.150
$0.084
$0.079
$0.116
$0.116
$0.224
$0.200
7-Nov-21
14-Mar-21
18-Dec-21
31-Oct-21
18-Nov-22
28-Oct-22
10-Aug-23
4-Nov-23
21-Dec-23
24-Jan-24
1-Jul-24
1-Jun-24
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.
10
BLACK ROCK MINING LIMITED2021 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
EXPIRY DATE
EXERCISE PRICE
Richard Crookes
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Unlisted Options
John de Vries
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Unlisted Options
Ian Murray
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Unlisted Options
Gabriel Chiappini
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Unlisted Options
3,766,150
213,079
2,000,000
2,400,000
2,500,000
5,460,078
252,121
5,000,000
3,600,000
5,000,000
6,716,062
362,151
2,000,000
3,000,000
1,600,000
8,504,807
424,555
2,000,000
2,500,000
1,600,000
10-Aug-23
21-Dec-23
28-Oct-22
7-Nov-21
10-Aug-23
21-Dec-23
28-Oct-22
7-Nov-21
10-Aug-23
21-Dec-23
18-Nov-22
29-Oct-22
10-Aug-23
21-Dec-23
7-Nov-21
28-Oct-22
$0.084
$0.116
$0.150
$0.100
$0.084
$0.116
$0.150
$0.100
$0.084
$0.116
$0.150
$0.150
$0.084
$0.116
$0.100
$0.150
INDEMNIFICATION OF OFFICERS
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 Group 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.
11
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
REPORT
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 7 Board meetings were held:
DIRECTOR
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
NON-AUDIT SERVICES
7
7
7
7
7
7
7
7
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.
12
BLACK ROCK MINING LIMITED2021 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 2021. The term ‘key
management personnel’ refers to those persons having authority and responsibility for planning, directing and
controlling the activities of the Consolidated Entity, directly or indirectly, including any Director (whether executive
or otherwise) of the Consolidated Entity. The prescribed details for each person covered by this report are detailed
below under the following headings:
• key management personnel
• remuneration policy
• relationship between the remuneration policy and Company performance
• remuneration of key management personnel
• key terms of employment contracts
• other information
Key management personnel
The key management personnel of the Consolidated Entity during or since the end of the financial year were:
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
Remuneration policy
Non-Executive Chairman
Appointed 16 October 2017
Non-Executive Director
Chief Executive Officer
& Managing Director
Non-Executive Director
& Company Secretary
Appointed 2 May 2019
Appointed 16 March 2017
Appointed 21 March 2012
Appointed 12 July 2013
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.
13
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
REPORT
REMUNERATION REPORT (audited) - CONTINUED
Elements of Director and executive remuneration
Remuneration packages contain the following key elements:
• Short term benefits – salaries / fees
• Annual leave benefits
• Post-employment benefits – superannuation
• Share based payments
No non-monetary short-term benefits, prescribed retirement benefits or other post-employment benefits were
paid. The following table discloses the remuneration of the Directors and executives of the Company:
2021
Richard Crookes
Ian Murray
John de Vries
S
T
I
F
E
N
E
B
E
E
Y
O
L
P
M
E
M
R
E
T
T
R
O
H
S
S
E
E
F
D
N
A
Y
R
A
L
A
S
-
$
52,083
34,375
R
E
H
T
O
-
-
T
S
O
P
T
N
E
M
Y
O
L
P
M
E
S
T
I
F
E
N
E
B
N
O
I
T
A
U
N
N
A
R
E
P
U
S
-
$
9,500
6,270
238,637
21,900 (i)
28,500
Gabriel Chiappini
31,226
22,000 (iii)
-
T
N
E
M
Y
A
P
)
i
i
(
)
S
E
R
A
H
S
(
D
E
S
A
B
E
R
A
H
S
T
N
E
M
Y
A
P
)
S
N
O
I
T
P
O
(
D
E
S
A
B
E
R
A
H
S
L
A
T
O
T
$
$
47,917
31,625
61,363
41,044
74,665
85,309
170,660
69,920
184,165
157,579
521,060
164,190
356,321
43,900
44,270
181,949
400,554
1,026,994
(i) Annual leave benefits.
(ii) From the period 1 July 2020 to 30 April 2021, in response to the COVID-19 pandemic, the Directors of Black Rock
Mining agreed to defer a portion of their fees and be issued with shares in lieu of fees.
(iii) Out of scope consultancy services provided during the financial year.
2020
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
S
T
I
F
E
N
E
B
E
E
Y
O
L
P
M
E
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
-
-
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
27,375
25,000
-
-
27,375
40,770
)
S
E
R
A
H
S
(
T
N
E
M
Y
A
P
D
E
S
A
B
E
R
A
H
S
T
N
E
M
Y
A
P
)
S
N
O
I
T
P
O
(
D
E
S
A
B
E
R
A
H
S
L
A
T
O
T
$
$
56,303
68,828
84,130
56,084
265,345
165,803
141,098
440,005
128,354
875,260
-
-
-
-
-
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
-
-
-
-
-
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
-
-
-
-
-
(i) Annual leave benefits earned during the year
From the period 1 April 2020 to 30 June 2020, in response to the COVID-19 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.
14
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
REMUNERATION REPORT (audited) - CONTINUED
Amounts owing to Directors
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. Below is a summary of the amounts owing at the end of the financial year.
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
2021
$
-
-
-
-
-
2020
$
36,500
24,090
105,192
30,815
196,597
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 them 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
Notice period
Full time
Rolling contract
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
Short Term
Incentive (STI)
Long Term
Incentives (LTI)
20 days annual leave
Ability to earn up to 50% of base salary as an STI per annum. For the FY19 period the
board has agreed to award John de Vries a $75,000 STI for his performance during FY19
to be paid 50% cash and 50% in Black Rock Mining 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
15
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
REPORT
REMUNERATION REPORT (audited) - CONTINUED
Share based payment arrangements
Options
As approved at the 2020 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)
2,000,000
2,000,000
5,000,000
2,000,000
11,000,000
(i) Expiry: 21 December 2023, Exercise price: $0.116, Vesting conditions: vesting 50% 30 June 2021, 50% 30 June 2022
subject to remaining as a Director, executive or consultant of the Company. Fair value per share option was $0.0388
computed using a Black Scholes model.
The options above (11,000,000) pertain only to those issued to key management personnel during the year and
represent only a portion of the total options issued during the year which are disclosed above.
Details of unissued shares or interests under option held by key management personnel at the date of this report,
excluding those subject to shareholder approval, are:
ISSUING ENTITY
NUMBER OF SHARES
UNDER OPTION
CLASS OF
SHARES
EXERCISE PRICE
OF OPTION
EXPIRY DATE
OF OPTIONS
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
Black Rock Mining Ltd
1,251,906
11,000,000
7,600,000
10,000,000
3,000,000
1,600,000
34,451,906
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
$0.084
$0.116
$0.150
$0.10
$0.15
$0.15
10-Aug-23
21-Dec-23
28-Oct-22
7-Nov-21
18-Nov-22
29-Oct-22
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:
DIRECTOR
VALUE $
DESCRIPTION
Gabriel Chiappini
72,270
Gabriel Chiappini
22,000
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.
Amounts to Laurus Corporate Services, a Company Mr Chiappini
is a shareholder and Director of, for the provision of out of scope
consultancy services provided during the financial year.
16
BLACK ROCK MINING LIMITED2021 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 2021:
Income ($’s)
Net loss before tax ($’s)
Net loss after tax ($’s)
Share Price at start of year
Share Price at year end
Loss per share
Movement in shares
2021
2020
2019
2018
2017
52,162
2,870
7,939
24,183
187,548
(2,850,250)
(3,387,285)
(2,864,024)
(2,053,080)
(2,590,371)
(2,850,250)
(3,387,285)
(2,864,024)
(2,053,080)
(2,590,371)
$0.048
$0.140
$0.084
$0.048
$0.037
$0.084
$0.066
$0.037
$0.066
$0.066
$0.0040
$0.0054
$0.0054
$0.0055
$0.1176
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:
2021
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
1 JULY 2020
ENTITLEMENT
OFFER
OTHER
CHANGES (i)
30 JUNE 2021
2,705,357
5,794,420
4,033,928
6,892,857
213,079
362,151
252,121
424,555
847,714
559,491
1,174,029
1,187,395
3,766,150
6,716,062
5,460,078
8,504,807
(i) During the year shares were issued in lieu of cash fees as the Company sought to preserve cash.
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:
2021
1 JULY
2020
OPTIONS
GRANTED
FREE
ATTACHING
OPTIONS
GRANTED AS
REMUNERATION
OPTIONS
LAPSED
30 JUNE
2021
UNVESTED
VESTED AND
EXERCISABLE
AT 30 JUNE
2021
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
9,900,000
4,600,000
13,600,000
9,100,000
213,079
362,151
252,121
424,555
2,000,000
2,000,000
5,000,000
2,000,000
(5,000,000)
7,113,079
6,113,079
-
6,962,151
4,895,484
(5,000,000)
13,852,121
7,752,121
(5,000,000)
6,524,555
5,524,555
1,000,000
2,066,667
6,100,000
1,000,000
END OF REMUNERATION REPORT
17
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
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
Dar es Salaam, 28 September 2021
18
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT AUDITOR’S
INDEPENDENCE
DECLARATION
19
Liability limited by a scheme approved under Professional Standards Legislation Member of Deloitte Asia Pacific Limited and the Deloitte organisation. The Board of Directors Black Rock Mining Limited 45 Ventnor Avenue West Perth WA 6005 28 September 2021 Dear Board Members AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn ttoo BBllaacckk RRoocckk MMiinniinngg LLiimmiitteedd 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. As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours faithfully DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU DDaavviidd NNeewwmmaann Partner Chartered Accountants Deloitte Touche Tohmatsu ABN 74 490 121 060 Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au Liability limited by a scheme approved under Professional Standards Legislation Member of Deloitte Asia Pacific Limited and the Deloitte organisation. The Board of Directors Black Rock Mining Limited 45 Ventnor Avenue West Perth WA 6005 28 September 2021 Dear Board Members AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn ttoo BBllaacckk RRoocckk MMiinniinngg LLiimmiitteedd 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. As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours faithfully DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU DDaavviidd NNeewwmmaann Partner Chartered Accountants Deloitte Touche Tohmatsu ABN 74 490 121 060 Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 GPO Box A46 Perth WA 6837 Australia Tel: +61 8 9365 7000 Fax: +61 8 9365 7001 www.deloitte.com.au BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
Interest income
Other income
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
Loss on disposal of investment
Loss before tax
Income tax benefit
LOSS FOR THE YEAR
NOTE
FOR THE
YEAR ENDED
30/06/2021
$
1,056
51,106
(124,406)
(771,130)
(952,436)
(997,075)
(14,172)
232,205
(275,398)
-
FOR THE
YEAR ENDED
30/06/2020
$
2,870
-
(286,725)
(1,111,253)
(374,246)
(1,165,297)
(18,630)
(4,641)
(315,131)
(114,232)
(2,850,250)
(3,387,285)
6
-
-
(2,850,250)
(3,387,285)
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations
(1,332,410)
480,079
Items not reclassified through profit or loss
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE
TO MEMBERS OF BLACK ROCK MINING
(4,182,660)
(2,907,206)
Loss for the year attributable to owners of the Company
(2,850,250)
(3,387,285)
Total comprehensive loss attributable to the owners of the Company
(4,182,660)
(2,907,206)
Loss per share
Basic and diluted loss per share
19
(0.0040)
(0.00545)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
20
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT AS AT 30 JUNE 2021
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Assets
Current assets
Cash and bank balances
Other receivables
Total current assets
Non-current assets
Exploration & evaluation asset
Property, plant & 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
NOTES
AS AT
30/06/2021
$
AS AT
30/06/2020
$
7
9
10
11
12
12
13
11,298,422
145,003
722,097
93,368
11,443,425
815,465
22,164,704
22,770,344
23,512
31,941
22,188,216
22,802,285
33,631,641
23,617,750
386,879
81,714
839,026
59,812
468,593
898,838
468,593
898,838
33,163,048
22,718,912
74,940,347
60,989,789
(75,845)
1,077,067
1,256,565
1,132,872
(42,778,521)
(40,660,314)
33,163,048
22,718,912
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
21
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
NOTE
11,
12,
13
11,
12,
13
Balance at 30 June 2019
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
Balance at 30 June 2020
Loss for the year
Other comprehensive income for
the year, net of tax
Total comprehensive
income for the year
Issue of ordinary shares –
Capital raisings
Shares issued to Directors and
management in lieu of salaries
and fees – December 2020
Shares issued to Directors and
management in lieu of salaries
and fees – June 2021
Issue of ordinary shares –
Services rendered
Cost of share capital issued
Cost of share based payments
Expired options transferred
to accumulated losses
ISSUED
CAPITAL
ACCUMULATED
LOSSES
SHARE BASED
PAYMENT
RESERVE
FOREIGN
CURRENCY
RESERVE
TOTAL EQUITY
$
$
$
$
$
58,086,890
(37,273,029)
796,126
796,853
22,406,840
-
-
-
-
(3,387,285)
-
-
(3,387,285)
2,590,000
37,500
410,000
(134,601)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
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
60,989,789
(40,660,314)
1,132,872
1,256,565
22,718,912
-
-
-
(2,850,250)
-
(2,850,250)
-
-
-
-
-
-
-
-
676,238
-
(2,850,250)
(1,332,410)
(1,332,410)
(1,332,410)
(4,182,660)
-
-
-
-
-
-
-
14,050,467
172,065
104,134
-
(376,108)
676,238
-
-
-
-
-
-
-
732,043
(732,043)
14,050,467
172,065
104,134
-
(376,108)
-
-
Balance at 30 June 2021
74,940,347
(42,778,521)
1,077,067
(75,845)
33,163,048
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
22
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED STATEMENT
OF CASH FLOWS
Cash flow from operating activities
Payments to suppliers and employees
Government grant income
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
NOTE
(2,089,474)
(2,516,341)
51,106
Net cash flows used in operating activities
7
(2,038,368)
(2,516,341)
Cash flow from investing activities
Capitalised exploration expenditure
Interest received
Payments for security deposits
Payments for property, plant and equipment
(817,679)
(1,529,353)
1,056
(3,600)
(5,742)
2,870
-
(3,679)
Net cash flows used in investing activities
(825,965)
(1,530,162)
Cash flows from financing activities
Proceeds from issue of shares and options
Payment of share issue costs
14,050,467
(376,108)
3,000,000
(134,601)
Net cash flows provided by financing activities
13,674,359
2,865,399
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the financial year
Effect of exchange movement on cash balances
10,810,026
722,097
(233,701)
(1,181,104)
1,907,467
(4,266)
Cash and cash equivalents at the end of the year
7
11,298,422
722,097
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
23
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
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 28 September 2021.
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 $2,850,250 (30 June 2020: $3,387,285) and experienced net cash outflows
from operating activities of $2,038,368 (30 June 2020: $2,516,341) and net cash outflows from investing activities of
$825,965 (30 June 2020: $1,530,162) for the year ended 30 June 2021.
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 finalised all field activities and has now substantially completed the Resettlement Action
Plan process. The Resettlement Action Plan was a critical step in the Company’s progression towards making a final
investment decision on the project, with resettlement activities commencing only after the Company enters into a
Framework Agreement with the Government of Tanzania, and makes a final investment decision with respect to
the Mahenge project. The Directors have prepared a cash flow forecast reflecting the Group’s key objectives, which
indicates the Group does not need to raise additional capital to fund the Company’s stated strategic objectives for
at least a period of 12 months from the date of this report.
The cash flow forecast for the period ending 30 September 2022 indicates that the Group is not required to raise
additional capital in order to continue its exploration and evaluation activities, as it moves towards making a final
investment decision, and consequent planned preparation for the potential construction on its graphite prospects
in Tanzania and to fund working capital. This assumes no slowing down or deferment of costs. Should a final
investment decision be made with respect to the Mahenge Graphite Project, the cash flow forecast will be updated
to identify any additional funding required for development.
The Directors believe that the going concern basis of preparation is therefore appropriate.
Impact of COVID-19
The COVID-19 outbreak and the subsequent quarantine measures imposed by the Australian and other
governments, and related travel and trade restrictions have caused disruption to businesses and resulted in
significant global economic impacts. As at 30 June 2021, these impacts have not had a significant effect on the
Group’s financial results or operations. However, as the impact of COVID-19 continues to evolve, including changes
in government policy and business reactions thereto, if our staff are unable to work or travel due to illness or
government restrictions, we may be forced to reduce or suspend our exploration and potential development
activities. In addition, as the COVID-19 pandemic and mitigation measures have also negatively impacted global
economic conditions, this, in turn, could adversely affect our business in the future. Due to the continually evolving
nature of COVID-19 the Directors cannot reasonably estimate the effects that the COVID-19 pandemic could have
on future periods and believes that any disturbance may be temporary. However, there is uncertainty about the
length and potential impact of any resultant disturbance. As a result, we are unable to estimate the potential impact
on the Group’s future operations as at the date of these Financial Statements.
24
BLACK ROCK MINING LIMITED2021 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.
There are no new or revised standards and amendments thereof and interpretations effective for the current
reporting period that are relevant to the Group.
2.2
Impact of changes to Australian Accounting Standards and Interpretations
(i)
Other new accounting standards
The following new or amended standards are not expected to have a significant impact on the Group’s consolidated
financial statements:
• AASB 2018-6 Amendments to Australian Accounting Standards: Definition of a Business;
• AASB 2018-7 Amendments to Australian Accounting Standards - Definition of Material;
• AASB 2019-1 Amendments to Australian Accounting Standards - References to the Conceptual Framework;
• AASB 2019-3 Amendments to Australian Accounting Standards - Interest Rate Benchmark Reform;
• AASB 2019-5 Amendments to Australian Accounting Standards - Disclosure of the Effect of New IFRS Standards
Not Yet Issued in Australia; and
• AASB 2020-4 Amendments to Australian Accounting Standards - COVID-19-Related Rent Concessions.
(ii)
Application of new and revised accounting standards
At the date of the authorisation of the financial statements, the Group has not applied the following new and
revised Australian Accounting Standards, Interpretations and amendments that have been issued but are not
yet effective:
• AASB 2014-10 Amendments to Australian Accounting Standards - Sale or Contribution of Assets between
and Investor and its Associate or Joint Venture;
• AASB 2015-10 Amendments to Australian Accounting Standards - Effective Date of Amendments to
AASB 10 and AASB 128 and AASB 2017-5 Amendments to Australian Accounting Standards – Effective Date
of Amendments to AASB 10 and AASB 128 and Editorial Corrections;
• AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current or
Non-Current and AASB 2020-6 Amendments to Australian Accounting Standards - Classification of Liabilities
as Current or Non-Current - Deferral of Effective Date;
• AASB 2020-3 Amendments to Australian Accounting Standards - Annual Improvements 2018-2020 and Other
Amendments;
• AASB 2020-8 Amendments to Australian Accounting Standards - Interest Rate Benchmark Reform - Phase 2;
• AASB 2021-2 Amendments to Australian Accounting Standards - Disclosure of Accounting Policies and Definition
of Accounting Estimates; and
• AASB 2021-3 Amendments to Australian Accounting Standards - COVID-19-Related Rent Concessions beyond
30 June 2021.
25
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1
Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for certain
properties and financial instruments that are measured at revalued amounts or fair values at the end of each
reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair values of the consideration given in exchange for goods and services.
All amounts are presented in Australian dollars, unless otherwise noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure
purposes in these consolidated financial statements is determined on such a basis, except for share-based payment
transactions that are within the scope of AASB 2, leasing transactions that are within the scope of AASB 117, and
measurements that have some similarities to fair value but are not fair value, such as net realisable value in AASB
102 ‘Inventories’ or value in use in AASB 136 ‘Impairment of Assets’.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to
the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or
liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
The principal accounting policies are set out below.
3.2
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities (including
structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
• has power over the investee;
•
is exposed, or has rights, to variable returns from its involvement with the investee; and
• has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are
changes to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the
Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated statement of profit or loss and other comprehensive income from
the date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to
the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company
and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies
into line with the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
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.
26
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT 3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.4
Foreign currencies
The individual financial statements of each group entity are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). For the purpose of the consolidated financial
statements, the results and financial position of each group entity are expressed in Australian dollars (‘$’), which is
the functional currency of the Company and the presentation currency for the consolidated financial statements.
In preparing the financial statements of each individual group entity, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates
of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non- monetary items carried at fair value that are denominated in
foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-
monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
• exchange differences on foreign currency borrowings relating to assets under construction for future productive
use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on
those foreign currency borrowings;
• exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
• exchange differences on monetary items receivable from or payable to a foreign operation for which settlement
is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation),
which are recognised initially in other comprehensive income and reclassified from equity to profit or loss on
repayment of the monetary items.
For the purpose of presenting these consolidated financial statements, the assets and liabilities of the Group’s
foreign operations are translated into Australian dollars using exchange rates prevailing at the end of the reporting
period. Income and expense items are translated at the average exchange rates for the period, unless exchange
rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions
are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in
equity (and attributed to non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a
disposal involving loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an
interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest
becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation
attributable to the owners of the Company are reclassified to profit or loss.
In addition, in relation to a partial disposal of a subsidiary that includes a foreign operation that does not result
in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are
re-attributed to non-controlling interests and are not recognised in profit or loss. For all other partial disposals
(i.e. partial disposals of associates or joint arrangements that do not result in the Group losing significant influence
or joint control), the proportionate share of the accumulated exchange differences is reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition
of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the rate of
exchange prevailing at the end of each reporting period. Exchange differences arising are recognised in other
comprehensive income.
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.
27
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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.
28
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT 3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.7
Taxation - CONTINUED
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 sits between the following range:
Plant and equipment:
7.5% - 67%
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 amortised 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.
29
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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
recognised 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.
30
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable likelihood that the
grant will be received and the Group will comply with all attached conditions. Government grants relating to costs
are deferred and recognised in profit or loss over the period necessary to match them with the costs that they
are intended to compensate. Government grants relating to the purchase of property, plant and equipment are
included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over
the expected lives of the related assets. Deferral and presentation of government grants Government grants are
deducted in calculating the carrying amount of the related grant asset. The grant is recognised in profit or loss over
the life of a depreciable asset by way of a reduced depreciation expense. During the year, the company received
$51,191 (2020: $nil) in relation to cashflow boost grants, which have been recognised as other income.
4
CRITICAL ACCOUNTING JUDGEMENTS IN APPLYING ACCOUNTING POLICIES
In the application of the Group’s accounting policies, which are described in note 3, the Directors of the
Company are required to make judgements, estimates and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both current and future periods.
4.1
Critical judgements in applying accounting policies
The following are the critical judgements, apart from those involving estimations, that the Directors have made in
the process of applying the Group’s accounting policies and that have the most significant effect on the amounts
recognised in the consolidated financial statements.
4.2
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at
the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year.
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.
31
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
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
GRAPHITE
CORPORATE
CONSOLIDATED
-
-
-
1,056
51,106
52,162
1,056
51,106
52,162
(571,827)
(2,278,423)
(2,850,250)
-
(6,341)
5,742
(7,832)
5,742
(14,172)
GRAPHITE
CORPORATE
CONSOLIDATED
14,702,115
18,929,526
33,631,641
(66,289)
(402,304)
(468,593)
GRAPHITE
CORPORATE
CONSOLIDATED
-
-
2,870
2,870
2,870
2,870
(723,508)
(2,663,777)
(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)
2021
Interest
Other income
Total income
Loss before tax
Fixed asset additions
Depreciation
2021
Total segment assets
Total segment liabilities
2020
Interest
Total income
Loss before tax
Fixed asset additions
Depreciation
2020
Total segment assets
Total segment liabilities
32
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT 6
INCOME TAXES
(a)
Income tax (benefit)/expense
Current tax
Deferred tax
(b)
Numerical reconciliation of income tax expense to
prima facie tax payable
Loss for the year
Loss from operations
Prima facia tax benefit at 26% (2020: 27.5%)
Share based payments
Non-deductible expenditure
Non-assessable cash flow boost
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
FOR THE
YEAR ENDED
30/06/2021
FOR THE
YEAR ENDED
30/06/2020
$
-
-
-
$
-
-
-
(2,850,250)
(2,850,250)
(3,387,285)
(3,387,285)
(741,065)
247,633
149,364
(13,288)
-
(94,775)
452,131
-
(931,504)
83,283
199,295
-
555,441
(52,681)
146,166
-
131,722
1,991,101
2,122,823
165,642
1,749,602
1,915,244
2,058,566
1,916,303
64,257
(1,059)
2,122,823
1,915,244
Unrecognised deferred tax assets
Unused tax losses for which no deferred tax asset has been recognised are $20,431,162 (2020: $18,445,947).
Potential tax benefit is $5,312,102 (2020: $5,075,386).
(d)
Franking credits
The Company has no franking credits available as at 30 June 2021 (2020: 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.
33
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
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:
Cash and bank balances
FOR THE
YEAR ENDED
30/06/2021
$
11,298,422
11,298,422
FOR THE
YEAR ENDED
30/06/2020
$
722,097
722,097
Reconciliation of loss for the year to net cash flows from operating activities
Loss after income tax
Depreciation and amortisation of non-current assets
Share based payments to key management personnel
Net foreign exchange gain
Loss on disposal of investment
Interest revenue transferred to investing activity
Movements in working capital:
(Increase)/decrease in trade and other receivables
(Decrease)/increase in trade and other payables
Increase in employee entitlements provision
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
(2,850,250)
(3,387,285)
14,172
952,436
(232,205)
-
-
18,630
374,246
4,641
114,232
(2,870)
(2,115,847)
(2,878,406)
(51,635)
(107,211)
21,902
(77,479)
76,993
259,984
25,088
362,065
Net cash used in operating activities
(2,038,368)
(2,516,341)
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 and consultants
through the issue of shares
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
676,237
336,746
276,199
952,436
37,500
374,246
34
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
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
FOR THE
YEAR ENDED
30/06/2021
FOR THE
YEAR ENDED
30/06/2020
Mahenge Resources Limited
Tanzania
100%
100%
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
Total expenditure incurred during the year (at cost)
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
22,770,344
20,978,368
753,095
(1,358,735)
1,529,353
262,623
22,164,704
22,770,344
FOR THE
YEAR ENDED
30/06/2021
$
817,679
(107,325)
42,741
753,095
FOR THE
YEAR ENDED
30/06/2020
$
1,458,591
(36,563)
107,325
1,529,353
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 $22,164,704 (2020: $22,770,344) 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
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
143,193
180,714
62,972
386,879
295,795
523,605
19,626
839,026
Included in trade creditors and accruals is an amount of $42,741 (2020: $107,325) relating to exploration expenditure.
35
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
11
ISSUED CAPITAL
849,264,173 ordinary shares issued and fully paid (30 June 2020: 628,943,708)
Fully paid ordinary shares
Balance at 30 June 2019
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
74,940,347
74,940,347
60,989,789
60,989,789
NUMBER
OF SHARES
SHARE
CAPITAL
$
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
Less: capital raising costs
Balance at 30 June 2020
5,857,142
535,714
410,000
37,500
-
(134,601)
628,943,708
60,989,789
Shares issued under 11 August 2020 Rights Issue ($0.042 per share) – Cash
Shares issued under Placement 12 October 2020 ($0.049 per share) – Cash
Shares issued under Placement 28 May 2021 ($0.077 per share) – Cash
39,308,982
40,816,327
126,020,001
1,650,977
2,000,000
9,731,551
Shares issued to Directors and Consultants 30 December 2020
(0.042 per share) – Non-cash
Shares issued to Directors and Consultants 23 June 2021
(0.0968 per share) – Non-cash
Shares issued upon exercise of options – (various price per share) – Cash
4,096,779
172,065
1,292,353
8,786,023
104,134
667,939
-
(376,108)
849,264,173
74,940,347
Less: capital raising costs
Balance at 30 June 2021
Options
UNLISTED OPTIONS
OPENING
BALANCE
EXERCISED
IN YEAR
GRANTED
IN YEAR
NO.
NO.
NO.
EXPIRED
IN YEAR
NO.
CLOSING
BALANCE
NO.
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 28 October 2022 at $0.15
Expiring 18 November 2022 at $0.15
Expiring 10 August 2023 at $0.084
Expiring 4 November 2023 at $0.0785
Expiring 21 December 2023 at $0.116
Expiring 24 January 2024 at $0.116
6,250,000
6,250,000
6,250,000
6,250,000
13,000,000
3,000,000
5,000,000
-
-
-
-
-
-
-
5,000,000
(5,000,000)
1,000,000
9,200,000
3,000,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
35,522,958
5,000,000
11,000,000
1,000,000
(6,250,000)
(6,250,000)
(6,250,000)
(6,250,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,000,000
3,000,000
5,000,000
-
1,000,000
9,200,000
3,000,000
35,522,958
5,000,000
11,000,000
1,000,000
64,200,000
(5,000,000)
52,522,958
(25,000,000)
86,722,958
The weighted average exercise price of options at 30 June 2021 is $0.11 (2020: $0.11).
The weighted average remaining contractual life of options as at 30 June 2021 is 580 days (2020: 369 days).
36
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
12 RESERVES (NET OF INCOME TAX)
Reserves
Share based payments reserve (i)
Foreign translation reserve (ii)
(i)
Share Based Payments Reserve
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
1,077,067
(75,845)
1,001,222
1,132,872
1,256,565
2,389,437
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: Amounts expensed in the current year
Less: Options expired in the current year
FOR THE
YEAR ENDED
30/06/2021
$
1,132,872
676,238
(732,043)
FOR THE
YEAR ENDED
30/06/2020
$
796,126
336,746
-
1,077,067
1,132,872
(ii)
Foreign Translation Reserve
The foreign translation reserve arises on the consolidation of the Group’s overseas subsidiary, Mahenge Resources
Limited. Refer to consolidated statement of changes in equity for reconciliation of movement.
13 ACCUMULATED LOSSES
Balance at beginning of the year
Net loss attributable to members
Transfer from share option reserve
Balance at end of year
FOR THE
YEAR ENDED
30/06/2021
$
40,660,314
2,850,250
(732,043)
FOR THE
YEAR ENDED
30/06/2020
$
37,273,029
3,387,285
-
42,778,521
40,660,314
37
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
14 SHARE BASED PAYMENTS
(a)
Employee Share Incentive Scheme
The establishment of the Black Rock Mining Employee Share Incentive Option Plan (“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, 28 November 2013 and 23 November 2020.
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.
During the year, the shared based payment expense recognised in the consolidated statement of profit and loss
totaled $952,436 (2020: $374,246).
Share based payment arrangements relating to Directors and employees:
GRANT DATE
EXPIRY DATE
I
E
C
R
P
E
S
I
C
R
E
X
E
F
O
R
E
B
M
U
N
E
H
T
T
A
S
N
O
I
T
P
O
I
F
O
G
N
N
N
G
E
B
I
R
A
E
Y
E
H
T
R
A
E
Y
S
I
H
T
D
E
T
N
A
R
G
S
N
O
I
T
P
O
R
A
E
Y
S
I
H
T
D
E
S
I
C
R
E
X
E
S
N
O
I
T
P
O
17/10/17
17/10/17
17/10/17
17/10/17
28/10/17
28/11/17
28/11/17
28/11/17
7/11/18
8/11/18
2/5/19
2/5/19
31/8/20
31/8/20
31/8/20
31/8/20
31/8/20
31/8/20
31/8/20
31/8/20
7/11/21
31/10/21
2/5/22
2/5/22
28/10/19
28/10/22
4/11/20
4/11/23
23/11/20
21/12/23
25/1/21
1/5/21
24/1/24
1/5/24
$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
$0.0785
$0.116
$0.116
$0.20
1,250,000
1,250,000
1,250,000
1,250,000
3,750,000
3,750,000
3,750,000
3,750,000
10,000,000
1,000,000
1,500,000
1,500,000
9,200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,000,000
11,000,000
1,000,000
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
,
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)
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
R
A
E
Y
E
H
T
F
O
D
N
E
E
H
T
S
N
O
I
T
P
O
T
A
E
L
B
A
S
I
C
R
E
X
E
E
T
A
D
T
N
A
R
G
T
A
E
U
L
A
V
R
A
F
I
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,000,000
10,000,000
1,000,000
1,500,000
1,500,000
9,200,000
5,000,000
11,000,000
1,000,000
1,500,000
1,000,000
1,500,000
1,500,000
9,200,000
2,500,000
5,500,000
500,000
1,500,000
$0.0259
$0.0259
$0.0259
$0.0259
$0.0122
$0.0140
$0.0193
$0.0259
$0.0132
$0.0094
$0.0408
$0.0271
$0.0268
$0.0245
$0.0388
$0.1018
$0.0646
43,200,000
18,500,000
0
(20,000,000)
41,700,000
33,200,000
38
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
14 SHARE BASED PAYMENTS - CONTINUED
(a)
Employee Share Incentive Scheme - CONTINUED
Share based payment arrangements relating to Directors and employees: - CONTINUED
EMPLOYEES & CONSULTANTS
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
DIRECTORS
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
CONSULTANTS
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
CONSULTANTS
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
39
4-Nov-20
5,000,000
Black Scholes
5.6
7.85
81%
3.00 years
Nil
0.1%
23-Nov-20
11,000,000
Black Scholes
8.5
11.6
82%
3.00 years
Nil
0.1%
25-Jan-21
1,000,000
Black Scholes
16.5
11.6
85%
3.00 years
Nil
0.1%
1-May-21
1,500,000
Black Scholes
14
20
86%
3.00 years
Nil
0.2%
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
14 SHARE BASED PAYMENTS - CONTINUED
(a)
Employee Share Incentive Scheme - CONTINUED
Share based payment arrangements relating to Directors and employees: - CONTINUED
The following reconciles the outstanding share options granted under the Plan at the beginning and end of the
financial year.
2021
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
2020
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
Balance at the beginning of
the financial year
Granted during the financial year:
- Directors
- Employees & consultants
Expired during the financial year:
- Directors
- Employees & consultants
Balance at the end of the financial year
Vested and Exercisable at
the end of the year
43,200,000
0.114
34,000,000
11,000,000
7,500,000
(15,000,000)
(5,000,000)
41,700,000
0.116
0.108
0.100
0.100
0.120
9,200,000
-
-
-
43,200,000
33,200,000
0.124
43,200,000
10.4
15.0
-
-
-
11.4
11.4
Expected volatility is based on the movement of the underlying share price around its average price over the
expected term of the option.
Balance at end of the financial year
The share options outstanding and exercisable at the end of the financial year under the Plan had a weighted
average exercise price of $0.120 (2020: $0.114) and a weighted average remaining contractual life of 564 days
(2020: 396 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:
FOR THE
YEAR ENDED
30 JUNE 2021
$
FOR THE
YEAR ENDED
30 JUNE 2020
$
356,321
44,270
582,503
-
43,900
1,026,994
569,145
40,770
265,345
-
-
875,260
Short-term employee benefit
Post-employment benefits
Share-based payments
Bonus
Other
40
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
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
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
46,050
8,963
54,993
37,275
11,153
48,428
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
Gabriel Chiappini
22,000
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.
Amounts to Laurus Corporate Services, a Company Mr Chiappini
is a shareholder and Director of, for the provision of out of scope
consultancy services provided during the financial year.
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 kilometre 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
ML 611/2019
Mahenge North
Mining License
ML 612/2019
Mahenge North
Prospecting License PL 11486/2020
Mahenge East
Prospecting License PL 10426/2014
Mahenge Southwest
Prospecting License PL 10427/2014
9.94
9.79
118.37
77.46
111.60
327.16
USD 2,000
USD 19,880
USD 2,000
USD 19,580
USD 100
USD 150
USD 150
USD 11,837
USD 11,619
USD 16,740
USD 79,656
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 2021.
41
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
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.
Issue price of shares to be calculated based on the preceding seven (7) day VWAP; and
• $375,000 cash and the equivalent value ($375,000) in Black Rock Mining Shares to be paid when a JORC
compliant Resource with greater than 1,000,000 tonnes of contained graphite at >9% total graphite content
at any of the Projects is announced by Black Rock Mining on the ASX. The issue price of BKT Shares is to
be calculated based on the VWAP of Black Rock Mining Shares in the 5 days prior to the release of the
announcement.
Exploration Program
There are no commitments to exploration as at the date of this report.
b.
Capital Commitments
The Group has no capital commitments (2020: Nil).
c.
Short-term Lease Commitments
On the 31 May 2021 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 2021
Expiry date: 30 November 2021
Monthly License fee: $6,600 incl. GST
Notice period: from 31 May 2021 either party may terminate the license by providing 60 days notice.
The Group has assessed its short-term lease and determined that it does not fulfil the requirements of AASB 16.
At 30 June 2021 the Company had a commitment under the license of $30,000 (ex GST) all of which is due and
payable within 12 months.
d.
Contractual Commitments
As at 30 June 2021, the Group had no contractual expenditure commitments in place. (June 2020: 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
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
Profit/(Loss) used in calculating basic and diluted loss per share
(2,850,250)
(3,387,285)
Weighted average number of ordinary shares used in
calculating basic and diluted profit/(loss) per share:
707,527,614
621,227,172
Basic and diluted profit/(loss) per share
($0.00403)
($0.00545)
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.
42
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
20 FINANCIAL INSTRUMENTS
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while
maximising the return to stakeholders through the optimisation of the debt and equity balances. The Group’s
overall strategy remains unchanged from 2020.
The Group holds the following financial instruments, all of which the fair value is equal to the carrying value:
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Provisions
Total financial liabilities
Net financial instruments
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
11,298,422
145,003
11,443,425
(386,879)
(81,714)
(468,593)
10,974,832
722,097
93,368
815,465
(839,026)
(59,812)
(898,838)
(83,373)
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 Mahenge Graphite Project. This is done through the close monitoring
of cash flow projections.
The Group’s working capital as at balance date was:
Cash and bank balances
Trade and other receivables
Trade and other payables
FOR THE
YEAR ENDED
30/06/2021
$
11,298,422
145,003
FOR THE
YEAR ENDED
30/06/2020
$
722,097
93,368
(386,879)
11,056,546
(839,026)
(23,561)
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.
43
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
20 FINANCIAL INSTRUMENTS - CONTINUED
Market risk
Foreign exchange risk
The Group transacts in US Dollars in relation to its Tanzanian operations and 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 $56,082 higher/lower (2020: $72,293
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 $11,298,422 (2020: $722,097).
At 30 June 2021, 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 $106 lower/higher (2020: $287
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
$100,003
$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
Fair value estimation
<1 MONTH
$143,192
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.
44
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
21 CONTINGENT LIABILITIES
There were no material contingent liabilities as at 30 June 2021 (2020: Nil).
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 1 July 2021 Black Rock Mining announced that it had signed a Memorandum of Understanding with
United States Clean Tech Graphite Processing Company Urbix, Inc for an innovative supply chain partnership
collaboration on battery anode processing.
- On 13 August 2021 Black Rock Mining announced that new Binding Term Sheets for Offtake had been agreed
with the Company’s existing Offtake customers, Taihe Soar (Dalian) Supply Chain Management and Qingdao
Yujinxi New Material Co Ltd. The binding agreements are for the supply of large flake graphite concentrate and
remain subject to both parties satisfying certain conditions precedent.
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.
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.
45
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
11,428,880
7,500,645
18,929,525
814,881
7,000,315
7,815,196
402,304
490,164
-
-
402,304
490,164
74,940,348
60,989,790
(57,490,194)
(54,797,630)
1,077,067
18,527,221
1,132,872
7,325,032
FOR THE
YEAR ENDED
30/06/2021
$
FOR THE
YEAR ENDED
30/06/2020
$
3,424,607
3,804,467
-
-
3,424,607
3,804,467
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
DIRECTORS’
DECLARATION
The Directors declare that:
(a) in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable;
(b) in the Directors’ opinion, the attached financial statements are in compliance with International Financial
Reporting Standards, as stated in note 1 to the financial statements;
(c) in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the
financial position and performance of the Consolidated Entity; and
(d) the Directors have been given the declarations required by s.295A of the Corporations Act 2001.
Signed in accordance with a resolution of the Directors made pursuant to s. 295(5) of the Corporations Act 2001.
On behalf of the Directors
Richard Crookes
CHAIRMAN
Dar es Salaam, 28 September 2021
46
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT INDEPENDENT
AUDITOR’S REPORT
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2, Brookfield Place
123 St Georges Terrace
Tower 2, Brookfield Place
Perth WA 6000
123 St Georges Terrace
GPO Box A46
Perth WA 6000
Perth WA 6837 Australia
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
Tel: +61 8 9365 7000
www.deloitte.com.au
Fax: +61 8 9365 7001
www.deloitte.com.au
Independent Auditor’s Report to the members of Black Rock
Independent Auditor’s Report to the members of Black Rock
Mining Limited
Mining Limited
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Opinion
Opinion
We have audited the financial report of Black Rock Mining Limited (the “Company”) and its subsidiaries (the
“Group”) which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
We have audited the financial report of Black Rock Mining Limited (the “Company”) and its subsidiaries (the
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
“Group”) which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and
a summary of significant accounting policies and other explanatory information, and the directors’ declaration.
the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies and other explanatory information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
• Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance
• Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its financial performance
• Complying with Australian Accounting Standards and the Corporations Regulations 2001.
• Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
for the year then ended; and
for the year then ended; and
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
our report. We are independent of the Group in accordance with the auditor independence requirements of the
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
our report. We are independent of the Group in accordance with the auditor independence requirements of the
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
accordance with the Code.
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
report.
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report for the current period. These matters were addressed in the context of our audit of the
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
the financial report for the current period. These matters were addressed in the context of our audit of the
these matters.
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
47
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
INDEPENDENT
AUDITOR’S REPORT
KKeeyy AAuuddiitt MMaatttteerr
CCaarrrryyiinngg
EEvvaalluuaattiioonn AAsssseettss
vvaalluuee ooff
EExxpplloorraattiioonn
aanndd
As at 30 June 2021, the carrying value of
exploration and evaluation assets amounts
including additions of
to $22,164,704
$753,095 as disclosed in Note 9.
judgement
in
Significant
determining the treatment of exploration
and evaluation expenditure including:
is applied
•
•
•
•
•
•
for
conditions
whether
the
capitalisation are satisfied;
which elements of exploration and
evaluation expenditure qualify for
capitalisation;
the Group’s intentions and ability
to proceed with a future work
program;
The classification of Exploration &
Evaluation
vs.
Development Assets;
the likelihood of licence renewal
or extension; and
the expected or actual success of
resource evaluation and analysis.
Assets
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt MMaatttteerr
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 the classification between
asset and expense.
Our procedures associated with the carrying value of exploration
and evaluation assets included, but were not limited to:
•
•
impairment
obtaining an understanding of the key controls
associated with the identification of indicators of
impairment;
evaluating management’s
indicator
assessment, including 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 area of interest held by
the Group and confirming whether the rights to
tenure of that area of interest remained current at
balance date;
o holding discussions with management as to the
status of ongoing exploration programs in the
respective area of interest; and
o assessing whether any facts or circumstances
testing was
to suggest
impairment
existed
required.
Our procedures associated with the classification of Exploration
& Evaluation Assets included, but were not limited to:
o holding discussions with management in relation to
any commitments entered into;
review of board minutes and contracts to assess
whether these would
final
investment decision has been made; and
indicate
that a
o
o performing subsequent events procedures to
identify if any final investment decision has been
made after the reporting date.
We also assessed the appropriateness of the disclosures in Note
9 to the financial statements.
Other Information
The directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2021, but does not include the financial report and
our auditor’s report thereon.
48
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or 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 fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Group’s internal control.
•
•
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
49
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
INDEPENDENT
AUDITOR’S REPORT
50
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. RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt Opinion on the Remuneration Report We have audited the Remuneration Report included on pages 13 to 17 of the Directors’ Report for the year ended 30 June 2021.. In our opinion, the Remuneration Report of Black Rock Mining Limited, for the year ended 30 June 2021, 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. DDEELLOOIITTTTEE TTOOUUCCHHEE TTOOHHMMAATTSSUU DDaavviidd NNeewwmmaann Partner Chartered Accountants Perth, 28 September 2021 BLACK ROCK MINING LIMITED2021 ANNUAL REPORT ADDITIONAL
ASX INFORMATION
ORDINARY FULLY PAID SHARES
Range of units as of 24 September 2021
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
158
247
261
1,120
600
54,104
788,410
2,075,314
45,969,760
801,845,023
2,386
850,732,611
0.01
0.09
0.24
5.40
94.25
0.01
100.00
Unmarketable parcels
Minimum $ 500.00 parcel at $ 0.1950 per unit
2,565
240
201,377
MINIMUM PARCEL SIZE
HOLDERS
UNITS
Top 20 Shareholders as of 24 September 2021
RANK NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
POSCO LTD
EYEON INVESTMENTS PTY LTD
COPULOS SUPERANNUATION PTY LTD
EYEON NO 2 PTY LTD
DANIEL TURNER CAPITAL PTY LTD
JAWAF ENTERPRISES PTY LTD
CITICORP NOMINEES PTY LIMITED
WESTPARK OPERATIONS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SPACETIME PTY LTD
MR CHIN YONG CHONG
GASMERE PTY LTD
E & E HALL PTY LTD
DANIEL TURNER HOLDINGS PTY LTD
MR WARREN WILLIAM BROWN + MRS MARILYN HELENA BROWN
RETZOS EXECUTIVE PTY LTD
CHRIKIM PTY LTD
TISDELL FAMILY SUPER PTY LTD
BNP PARIBAS NOMINEES PTY LTD
CITYWEST CORP PTY LTD
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
Substantial holders
NAME
Copulos Group
POSCO
51
UNITS
% UNITS
126,020,001
14.81
60,253,651
44,311,368
22,066,433
20,424,256
14,651,875
13,648,946
13,561,674
12,877,963
12,617,753
12,503,005
12,472,633
11,045,376
10,097,396
9,492,500
8,811,363
8,600,000
7,800,000
7,779,087
6,721,422
7.08
5.21
2.59
2.40
1.72
1.60
1.59
1.51
1.48
1.47
1.47
1.30
1.19
1.12
1.04
1.01
0.92
0.91
0.79
435,756,702
414,975,909
51.22
48.78
UNITS
% UNITS
156,736,464
126,020,001
18.61%
14.80%
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
ADDITIONAL
ASX INFORMATION
Mahenge Graphite Project
Black Rock Mining Limited is an Australian based company listed on the
Australian Securities Exchange (ASX:BKT). The Company has a 100% interest
in the Mahenge Graphite Project (the “Project”) located in Tanzania.
The Project has a JORC compliant Mineral Resource Estimate of 212m
tonnes at 7.8% TGC. It also has Ore Reserves of 70m tonnes at 8.5% TGC.
The Ore Reserves support a mine life of up to 350k tonnes of graphite
per annum for a reserve life of 16 years. Since the release of the Mineral
Resource Estimate, the Company confirms that it is not aware of any new
information or data that materially affects the Mineral Resource Estimate.
In October 2018, the Company released a Definitive Feasibility Study (DFS)
for the Project, which was based on strong customer demand. This DFS
was enhanced in July 2019, and demonstrates exceptional financial metrics
including:
• Low Capex: Lowest peak capital expenditure of US$116M for phase one*
• High Margin: AISC margin of 63.1%;
• Low Technical Risk: Substantial pilot plant operations run of 110 tonnes;
and
• Superior Economics: IRR of 44.8% with NPV10 of US$1.16bn (A$1.65bn**)
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.
In February 2019, the Company announced receipt of its mining licence for
the DFS project. In May 2019, the Company announced it had substantially
allocated planned production with up to 255k tonnes per annum of
graphite committed to sale by year three of production, through Pricing
Framework Agreements. The Company is progressing these agreements
into binding offtake commitments.
The Company is currently advancing financing discussions and detailed
engineering with a view to commencing construction of the mine.
JORC Compliant Mineral Resource Estimate and Ore Reserve
Ore Reserves
- Proven
- Probable
Total Ore Reserves
Mineral Resources
- Measured
- Indicated
Total Measured & Indicated
- Inferred
Total Measured, Indicated
& Inferred
TONNES
GRADE
CONTAINED
GRAPHITE
(MT)
(% TGC)
(MT)
0.0
70.0
70.0
25.5
88.1
113.6
98.3
211.9
0.0
8.5
8.5
8.6
7.9
8.1
7.6
7.8
0.0
6.0
6.0
2.2
6.9
9.1
7.4
16.6
* Forecast Capex has been classified as a Class 3 estimate with accuracy of ±10%
as defined by AACE
** $AUD/USD 0.70
52
Competent Person(s) Statement
The information in this report that
relates to Exploration Results and
Mineral Resource Statements is
based on information compiled by
John de Vries, who is a member of
the AusIMM. He is an employee
of Black Rock Mining. John de
Vries has sufficient experience
which is relevant to the style of
mineralisation and type of deposit
under consideration and to the
activity which he is undertaking
to qualify as a Competent Person
as defined in the 2004 and 2012
Edition of the ‘Australasian Code
for Reporting of Exploration Results,
Mineral Resources and
Ore Reserves’.
The information that relates to
Mineral Resources is based on
and fairly represents information
compiled by Mr Lauritz Barnes,
(Consultant with Trepanier Pty Ltd)
and Mr Prisin Moshi (Contracted
Geologist). Mr Barnes and Mr
Moshi are members of the
Australian Institute of Mining and
Metallurgy and have sufficient
experience of relevance to the
styles of mineralisation and types
of deposits under consideration,
and to the activities undertaken
to qualify as Competent Persons
as defined in the 2012 Edition of
the Joint Ore Reserves Committee
(JORC) Australasian Code for
Reporting of Exploration Results,
Mineral Resources and Ore
Reserves. Mr Barnes, Mr Moshi and
Mr de Vries consent to the inclusion
in this report of the matters based
on their information in the form
and context in which they appear.
The Ore Reserves have been
compiled by Black Rock Mining,
under the direction of Mr John
de Vries, who is a Member and
Chartered Professional of the
Australasian Institute of Mining and
Metallurgy. Mr de Vries is a full-time
employee of Black Rock Mining and
holds ordinary shares and unlisted
options in the Company as part of
his total remuneration package.
Mr de Vries has sufficient
experience in Ore Reserve
estimation relevant to the style of
mineralisation and type of deposit
under consideration to qualify as a
Competent Person as defined in the
2012 Edition of the “Australasian
Code for Reporting of Mineral
Resources and Ore Reserves”.
BLACK ROCK MINING LIMITED2021 ANNUAL REPORT
Forward Looking Statements
Various statements in this
presentation constitute statements
relating to intentions, future acts
and events. Such statements
are generally classified as
“forward looking statements”
and involve known and unknown
risks, uncertainties and other
important factors that could cause
those future acts, events and
circumstances to differ materially
from what is presented or implicitly
portrayed herein. Words such as
“anticipates”, “expects”, “intends”,
“plans”, “believes”, “seeks”,
“estimates” and similar expressions
are intended to identify forward-
looking statements. Black Rock
Mining cautions shareholders
and prospective shareholders
not to place undue reliance on
these forward looking statements,
which reflect the view of Black
Rock Mining only as of the date
of this presentation. The forward
looking statements made in
this presentation relate only to
events as of the date on which the
statements are made.
53
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