ANNUAL
FINANCIAL
REPORT
FOR THE YEAR ENDED
30 JUNE 2022
BLACK ROCK MINING LIMITED
ABN: 59 094 551 336
CORPORATE DIRECTORY
DIRECTORS
Richard Crookes
Chairman Non-Executive
John de Vries
Chief Executive Officer,
Managing Director
Ian Murray
Non-Executive Director
Gabriel Chiappini
Non-Executive Director
COMPANY
SECRETARY
James Doyle
PRINCIPAL
PLACE OF
BUSINESS AND
REGISTERED
OFFICE
AUDITOR
Level 1, 1 Walker Avenue,
West Perth Western Australia, 6005
T: +61 (08) 6383 6200
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
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
CHIEF EXECUTIVE OFFICER’S REPORT
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF
CASH FLOWS
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL INFORMATION
01
05
17
18
19
20
21
22
47
48
52
CHIEF
EXECUTIVE
OFFICER’S
REPORT
Black Rock Mining is well positioned
as a premium player in East Africa’s
emerging Graphite hub to take
advantage of the strong outlook
for natural Graphite.
01
Mahenge Graphite Project At the beginning of this financial
year, I wrote that the demand for graphite was entering a
unprecedented period driven by the demand for clean energy
technologies. Over the year, this sentiment has grown faster and
larger than we anticipated, with market analysts now predicting
structural deficits in natural graphite supply by the end of this
calendar year, 2022. A synchronised global technology change is
underway which is expected to drive strong demand for battery
materials. Graphite will play a substantial role in this transition
to a renewables future and this represents a significant
opportunity for all Black Rock Mining stakeholders.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 02
Following this, Black Rock Mining
signed a Framework Agreement
with the Government of Tanzania
at a ceremony held in Dar es
Salaam on 13th December 2021
– confirming an agreed 16% Free
Carried Interest shareholding
and commitment to jointly
develop the world-class Mahenge
Graphite Project. At the time I
said that reaching agreement
with the Tanzanian Government
was a watershed moment for
the Company. Not only does the
partnership with the Government
signal clear intent for the Mahenge
Graphite Project to be built, it also
demonstrates strong alignment
with the people of Tanzania
providing project certainty to all
broader stakeholders.
Focused on becoming
a graphite producer
The development pathway for a
graphite mine is highly customer
led. This means that the majority
of time is spent on customer
engagement and qualification –
very different to a base metals
project where most of the focus
is on drilling. With this in mind,
during the year the Company
completed a large-scale 500 tonne
processing plant campaign as part
of customer qualification works.
An important milestone which
demonstrated a whole of orebody
qualification to provide high
confidence with customers and
financiers in the Project’s ability to
supply a high quality commercial
grade product over the long term.
Critically, this also represented the
largest undertaken global graphite
qualification campaign and has put
large volumes of product in the
hands of existing and potential
new partners in North America,
Asia and Europe.
With one of the largest graphite
resources in the world, the
Mahenge Graphite Project is on
track to become a meaningful
producer of graphite into a growing
global market. The Mahenge
Graphite Project has a number of
unique advantages that underpin
its credentials to deliver a significant
new sustainable and green source
of graphite:
> Ability to produce very high grade
graphite concentrate (up to 99%
Total Graphitic Carbon);
> Simple extraction and operating
process with dry stack tailings
(no acid, low environmental
footprint, and low technical risk);
> Good access to key infrastructure
– rail, port access, grid power,
and water allows for sustained
lower cost operation;
> Upstream focused business
model and modular market entry
and growth strategy for a highly
economic mine operation;
> Commercially validated product
qualified by real customers
in the global supply chain
(strategic partnership with
POSCO and binding off-take
agreements); and
> Substantially permitted with
Tanzanian Government
mandate in place.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 03
Switching to our other strategic
partner, in POSCO, the Company
signed a term sheet for a US$10m
prepayment and offtake for all of the
Mahenge Graphite Project’s Module
One planned fines production
(-100#). This built on POSCO’s earlier
15% equity investment in Black Rock
Mining and continued to show the
market strong end user confidence
in Mahenge’s high purity graphite
and development pathway.
Two existing Chinese Pricing
and Volume Agreements for the
supply of large flake concentrate
(>+100 mesh) were also converted
to binding Term Sheets. These also
included a prepayment commitment
(via a binding Letter of Credit),
and importantly are price indexed
to published indices.
The Mahenge Graphite Project now
has the largest measured graphite
mineral resource globally, following
the completion of an infill drill
program and bulk metallurgical
sampling. The Company announced
a 25% increase in Measured
Mineral Resource which confirms
the first 10 years of the mine
plan (including all of Module One
and Two) is now underpinned by
the highest confidence mineral
resource category.
In recent months, the Company
has been working through a Front
End Engineering Design (“FEED”)
process that aims to optimise
process plant design, tender for
long lead equipment items, provide
updated Capex and Opex for
cost and schedule certainty; and
ultimately support the finalisation
of the debt finance process. CPC
Engineering was awarded the
engineering design contract and
an integrated project management
team is currently responsible for
the FEED process in parallel with
detailed engineering. The team has
a particular focus on earthworks
as the initial priority to ensure the
Company can be construction ready
in the coming months.
Tanzanian activities
I’m pleased to note that the
Company commenced the
compensation process pursuant
to the Mahenge Graphite Project
Resettlement Action Plan post year
end. This effectively begins the
process to deliver a higher standard
of living with vastly improved
amenities to all project affected
persons in priority areas covering
Modules One and Two. Importantly,
as the Company is nearing
finalisation of the FEED process, the
timing of resettlement compensation
means that Black Rock Mining is on
track to access ground for potential
start of early works programs ahead
of planned commencement of mine
construction, subject to making a
final investment decision.
Local engagement and project
execution activities accelerated
with the announcement of initial
leadership appointments under
Black Rock Mining’s 84% owned
joint-venture company, Faru
Graphite Corporation (Faru).
Faru was established in partnership
with the Tanzanian Government
to jointly develop the Mahenge
Graphite Project. Tanzanian
CEO, Mr Alimiya (Ali) Osman was
appointed, along with Mr Asa
Mwaipopo as Non-Executive
Director. Mr Ted Silkiluwasha and
Mr Danstan Mtajura Daud also
joined as government appointed
Directors, along with Black Rock
Mining Directors Mr Ian Murray as
Non-Executive Director and myself
as Executive Chairman.
Having worked closely with the
government and our partners in
Tanzania, the Company is fortunate
to be able to attract and recruit
world class Tanzanian citizens that
supports our desire to co-develop
local capability to drive positive
outcomes for Tanzania and
our investors.
Tying the year together, the
Company is now in a great position
as it focuses on completing financing
activities ahead of making a final
investment decision with respect
to the Mahenge Graphite Project,
and consequent commencement
of development. Having achieved
stated milestones through the year,
including established agreements
with credible and blue chip
customers, government support
and project de-risking activities,
Black Rock Mining has been able to
demonstrate additional confidence
for lenders and financiers with a
strong platform as the Company
now progresses activities associated
with securing debt financing.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 04
ABOVE MD/CEO JOHN DE VRIES
ON SITE AT MAHENGE DURING THE
JUNE QUARTER.
LEFT MD/CEO JOHN DE VRIES AND FARU
CEO ALIMIYA (ALI) OSMAN PRESENTING
THE INITIAL RAP PAYMENT CEREMONIAL
CHEQUE TO LOCAL VILLAGE LEADERS AND
GOVERNMENT OFFICIALS.
On a personal note, I would like
to thank you, our shareholders
for your incredible support.
The spotlight on graphite is
beginning to grow brighter,
and I believe that the expected
global market demand will bring
substantial opportunities for Black
Rock Mining that will ultimately
deliver value for all stakeholders.
Graphite will play a critical role
as part of global decarbonisation
and clean energy strategies, and I
look forward to executing on our
plans over the next year as we
aim to transition again from
explorer to producer.
John de Vries
CEO AND MANAGING DIRECTOR
Corporate
During the year, Black Rock Mining
strengthened its balance sheet
with a A$25m placement to new
and existing institutional and
sophisticated investors. This means
that the Company is appropriately
funded with A$26.1m in cash as at
30 June 2022 as we aim to finalise
debt financing ahead of planned
construction activities.
With the focus on building-out
organisational capabilities,
Black Rock Mining made a
number of key appointments
through the year, including:
• Steuart McIntyre –
GM Corporate Development
• Greg Wheeler –
Chief Commercial Officer
• Paul Sims –
Chief Financial Officer
•
James Doyle –
Company Secretary
• Post June 30 the Company has
appointed Raelene Wyatt as
General Manager – People,
Culture and Sustainability
The Company also secured a new
corporate office to accommodate
the expanded team, completing the
move in February 2022.
Environmental, Social
and Governance
The Company is committed to
maintaining the highest possible
standards of Environmental,
Social and Governance ("ESG").
Concurrent to the FEED process
the Company is progressing an
Independent Technical Expert
review of our compliance with
both the International Finance
Corporations performance
standards (“IFC PS”) and the
version 4 of the Equator Principles
(“EP4”). Significant baseline studies,
stakeholder engagement and
investment has been made by
the Company this year to assess
the environmental and social
impacts of both the project and
the associated infrastructure.
Compliance with the IFC PS and EP4
not only differentiates the Company
in increasingly discerning offtake,
investment and financial markets,
but it facilitates the constructive
and proactive engagement with
stakeholders to achieve the best
outcomes for the environment and
the communities in which we work.
The Company has commenced
compensation and resettlement
activities (“RAP”) at the Mahenge
Graphite Project. The RAP is
compliant with the IFC PS and
EP4, and to date the process
and outcomes have been
enthusiastically received by the
Project Affected Persons.
BLACK ROCK MINING LIMITED2022 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 2022. In order to comply with the provisions of the Corporations
Act 2001, the directors report as follows:
05
INFORMATION ABOUT THE DIRECTORS
The names and details of the Directors of Black Rock Mining during the financial year are:
NAME
PARTICULARS
Richard Crookes
Non-Executive
Chairman
Ian Murray
Non-Executive
Director
John de Vries
Managing Director
and CEO
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
Highfield Resources Limited
Lithium Power International Ltd
Barton Gold Holdings Ltd
DATE APPOINTED
April 2013
November 2018
February 2021
DATE RESIGNED
March 2022
Current
May 2022
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 Ltd, and Gold Road
Resources. More recently, as Chief Executive Officer and Managing Director, he successfully
delivered Gold Road Resources’ (ASX:GOR) Gruyere Project, and has significant African
experience through DRDGold.
Mr Murray 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
Matador Mining Ltd
Geopacific Resources Ltd
Todd River Resources Ltd
Jupiter Mines Limited
DATE APPOINTED
May 2020
September 2019
September 2020
February 2022
DATE RESIGNED
Current
July 2022
October 2021
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT DIRECTORS’
REPORT
06
INFORMATION ABOUT THE DIRECTORS - CONTINUED
NAME
PARTICULARS
Gabriel Chiappini
Non-Executive
Director
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 A$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
Gefen International A.I. Ltd
Black Dragon Gold Corp Ltd
DATE APPOINTED
August 2015
September 2016
July 2021
March 2022
DATE RESIGNED
Current
April 2021
August 2022
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
James Doyle
Mr Doyle is an experienced advisory and governance professional specialising in the
provision of company secretarial and corporate advisory services to public and private
companies across a range of sectors including resources, industrials and information
technology. Mr Doyle is currently employed by Emerson CoSec, a national corporate
advisory, compliance and governance service provider, with clients predominantly in the
mineral exploration, development and production sector and acts as company secretary to
a number of ASX- listed companies.
PRINCIPAL ACTIVITIES
Black Rock Mining is an Australian-based Company listed on the Australian Securities Exchange. The principal
activity of the Company during the year was to explore and develop mineral resources.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 07
REVIEW AND RESULTS OF OPERATIONS AND ACTIVITIES
Results of Operations
The consolidated loss after tax for the year ended 30 June 2022 was $6,076,894 (2021: $2,850,250).
The principal activities during the year included:
• Ongoing discussion with the potential financiers and debt advisors.
• Ongoing Front End Engineering Design (“FEED”) process and re-estimating the capital and operating costs
at the Mahenge Graphite Project as part of financing process.
• Awards Engineering Design Contract to CPC Engineering for Mahenge Graphite Mine.
• Completion of a Placement to Institutional and Sophisticated Investors to raise A$25m.
• Appointment of Mr James Doyle as Company Secretary who replaced Mr Gabriel Chiappini who resigned
from the role of Company Secretary.
• Appointment of Mr Greg Wheeler as Chief Commercial Officer.
• Appointment of experienced resources executive, Mr Paul Sims, as Chief Financial Officer.
•
JORC Compliant Mineral Resource Estimate and Ore Reserve update, posting a 25% increase in Measured
Mineral Resource.
• Term Sheet executed with POSCO comprising US$10m prepayment commitment, repayable via delivery of
product, and an offtake agreement for 100% of planned fines production (-#100) from module one of the
Mahenge Graphite Project.
• Executed the Framework Agreement with the United Republic of Tanzania ("Tanzanian Government")
to jointly develop the Mahenge Graphite mine.
• Appointment of Mr Steuart McIntyre as General Manager, Corporate Development.
• Binding Term Sheets for the supply of large flake graphite concentrate agreed with the Company's existing
offtake customers, Taihe Soar (Dalian) Supply Chain Management and Qingdao Yujinxi New Material Co Ltd.
• Memorandum of Understanding signed with United States Clean Tech Graphite Processing company
Urbix, Inc, for an innovative supply chain partnership collaboration on battery anode processing.
Corporate and Financial Position
Consolidated net assets at yearend were $55,018,502 against $33,163,048 at the close of the prior year.
Total cash held at yearend was $26,093,637 (2021: $11,298,422).
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 or
Consolidated Entity. Black Rock Mining remains focused on developing its Graphite Mahenge Project in Tanzania.
The Consolidated Entity is progressing towards the development phase, following the execution of the Free Carried
Interest with the Tanzanian Government in December 2021 and significant capital raising in May 2022.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
08
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 Consolidated Entity, or the results of those operations,
or the state of affairs of the Company or Consolidated Entity in subsequent financial years.
On 18 July 2022, the Company announced the senior appointments for the Tanzanian leadership team under
the Company’s 84% owned joint venture company, Faru Graphite Corporation (“Faru”), established in partnership
with the Tanzanian Government to develop the Mahenge Graphite Mine. Faru CEO, Mr Alimiya (Ali) Osman
was appointed, along with Mr Asa Mwaipopo as Non-Executive Director of Faru. Mr Ted Silkiluwasha and
Mr Danstan Mtajura Daud also joined as government appointed Directors of Faru, along with Black Rock Mining
Directors Mr John de Vries and Mr Ian Murray who were appointed as Executive Chairman and Non-Executive
Director of Faru, respectively.
On 25 July 2022, the Company announced it had commenced initial resettlement activities for its agreed Resettlement
Action Plan at the Mahenge Graphite Project. Refer note 28 in the financial statements for further information.
Following receipt of notification of the approval of the Special Mining Licence (“SML”) for the Mahenge Graphite
Project on 2 September 2022, Faru was formally awarded SML 676/2022 for the Mahenge Graphite Project on
5 September 2022.
On 9 August 2022, the Company, and one of its subsidiaries, Mahenge Resources Limited (incorporated in
Tanzania), received a form of referral of an employment dispute to the Commission for Mediation and Arbitration
in Tanzania from a former Tanzanian based consultant. Whilst the matter is in the preliminary stages, based on
legal advice received to date, the Group believes the claim is spurious, and the amount claimed is ambit, and
consequently the matter will be vigorously defended. Accordingly, it is not practicable at this stage to estimate the
amount, if any, of any liability that may arise from this matter.
On 9 September 2022, the Company announced that Faru had signed a Conditional Framework Agreement
(Agreement) with US-based Urbix, Inc (Urbix) for material from Module Two of the Mahenge Graphite Project.
Under the terms of the Agreement, the parties will collaborate in establishing a new supply chain suited to the
localisation and Environment, Social and Governance demands of the United States of America and European
battery industries.
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 or Consolidated Entity will move into its
development phase and looks forward to executing on its strategy to develop and bring the Mahenge Graphite
Project into production and in parallel, penetrate the battery materials supply chain.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Company is currently updating the Environment and Social Impact Assessment report in accordance with the
legal and regulatory requirements of the Tanzanian Government and the relevant international finance institution
environmental and social standards; namely the International Finance Corporation Performance Standards and the
Equator Principles.
Entities in the Consolidated Entity have complied with all environmental requirements up to the date of this report.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT SHARE OPTIONS
Share options granted to Directors
No options were granted to the Directors during the year.
Share options on issue
The details of the options as at the date of this report are as follows:
09
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
NUMBER OF SHARES
UNDER OPTION
CLASS
OF SHARES
EXERCISE PRICE
OF OPTION
EXPIRY DATE
OF OPTIONS
3,000,000
7,600,000
30,236,635
5,000,000
11,000,000
1,000,000
1,500,000
1,500,000
3,000,000
1,500,000
65,336,635
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
$0.150
$0.150
$0.084
$0.079
$0.116
$0.116
$0.200
$0.224
$0.290
$0.400
18-Nov-22
28-Oct-22
10-Aug-23
4-Nov-23
21-Dec-23
24-Jan-24
1-Jun-24
1-Jul-24
25-Oct-24
26-April-25
Option holders do not have any right by virtue of the option to participate in any share issue of the Company or any
related body corporate.
PERFORMANCE RIGHTS
Performance rights granted to Directors
During and since the end of the financial year, no new performance rights were granted to Directors of the Company.
Performance rights on issue
As at the date of this report, no performance rights are on issue.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
DIRECTORS’
REPORT
10
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
Richard Crookes
John de Vries
Ian Murray
Gabriel Chiappini
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
- Ordinary shares
- Unlisted Options
- Unlisted Options
- Unlisted Options
NUMBER
EXPIRY DATE
EXERCISE PRICE
6,266,150
213,079
2,000,000
2,400,000
10,460,078
252,121
5,000,000
3,600,000
5,466,801
194,548
2,000,000
3,000,000
11,004,807
424,555
2,000,000
1,600,000
10-Aug-23
21-Dec-23
28-Oct-22
10-Aug-23
21-Dec-23
28-Oct-22
10-Aug-23
21-Dec-23
18-Nov-22
10-Aug-23
21-Dec-23
28-Oct-22
$ 0.084
$ 0.116
$ 0.150
$ 0.084
$ 0.116
$ 0.150
$ 0.084
$ 0.116
$ 0.150
$ 0.084
$ 0.116
$ 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 (Executive Director),
Mr Gabriel Chiappini (Non-Executive Director) and Mr Ian Murray (Non-Executive Director), in respect of any
liabilities incurred by them while acting in the normal course of business as a Director of the entity and to insure
them against certain risks they are exposed to as Directors of the Company.
2. Pursuant to the above, the Company has paid premiums to insure the Directors and executive management
against liabilities incurred in the conduct of the business of the Company and has provided right of access to the
Company records.
3. In accordance with common commercial practice, the insurance policy prohibits disclosure of the premium and
the nature of the liability insured against.
4. The Company has not provided any insurance for an auditor of the Company.
BLACK ROCK MINING LIMITED2022 ANNUAL 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,
committee member or invitee). During the financial year nine Directors’ meetings were held:
DIRECTOR
Richard Crookes
Ian Murray
John de Vries(1)
Gabriel Chiappini
NUMBER ELIGIBLE TO ATTEND
NUMBER ATTENDED
9
9
4
9
9
9
9
9
(1) Mr de Vries attended the Audit Committee meetings and the Remuneration Committee meetings as an invitee.
11
NON-AUDIT SERVICES
During the year no non-audit services were provided by the Auditor (or by another person or firm on the
Auditors behalf).
AUDITOR’S INDEPENDENCE DECLARATION
The Auditor’s independence declaration is included after this report.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings. The Company was not party to any such proceedings during the year.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT DIRECTORS’
REPORT
12
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 2022. 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:
Appointed 16 October 2017
Appointed 2 May 2019
Richard Crookes
Non-Executive Chairman
Non-Executive Director
Ian Murray
John de Vries
Chief Executive Officer & Managing Director
Appointed 16 March 2017
Gabriel Chiappini
Non-Executive Director
Appointed 21 March 2012
Remuneration policy
The Board of Directors is responsible for determining and reviewing compensation arrangements for Directors
and the executive team. The Board assesses the appropriateness of the nature of the amount of remuneration of
such officers on a periodic basis by reference to relevant employment market conditions with the overall objective
of ensuring maximum stakeholder benefit from the retention of a high-quality Board and Executive team and that
each staff member’s remuneration package properly reflects that person’s duties and responsibilities.
The Board may, however, exercise its discretion in relation to approving incentive bonuses, options and
performance rights.
BLACK ROCK MINING LIMITED2022 ANNUAL 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 and long service leave benefits
• Post-employment benefits – superannuation
• Share based payments
13
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:
2022
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
E
E
Y
O
L
P
M
E
-
S
T
I
F
E
N
E
B
M
R
E
T
T
R
O
H
S
S
E
E
F
D
N
A
Y
R
A
L
A
S
$
100,000
66,000
R
E
H
T
O
-
-
386,432
169,701(i)
72,600
-
T
S
O
P
-
S
T
I
F
E
N
E
B
T
N
E
M
Y
O
L
P
M
E
N
O
I
T
A
U
N
N
A
R
E
P
U
S
$
10,000
6,600
23,577
-
625,032
169,701
40,176
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
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
$
$
-
-
-
-
-
34,900
32,914
76,603
31,351
144,900
105,514
656,313
103,951
175,768 1,010,678
-
-
19%(ii)
-
-
(i) Annual leave benefit ($46,057), long service leave ($23,644) and bonus awarded ($100,000).
(ii) Calculated as a percentage of the 2021 financial year total remuneration.
2021
Richard Crookes
Ian Murray
John de Vries
E
E
Y
O
L
P
M
E
-
S
T
I
F
E
N
E
B
M
R
E
T
T
R
O
H
S
S
E
E
F
D
N
A
Y
R
A
L
A
S
$
52,083
34,375
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
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
O
T
D
E
K
N
I
L
%
E
C
N
A
M
R
O
F
R
E
P
-
-
-
-
-
(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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
DIRECTORS’
REPORT
14
REMUNERATION REPORT (AUDITED) - CONTINUED
Key Terms of Employment Contracts
The Directors and executive are employed under contracts, which have no fixed term.
The contract binding the Executive Director may be terminated by the individual or the Board by giving six 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 detailed below. In February 2022 the Board revised Mr de Vries’ total fixed remuneration to
A$410,000 per annum (2021: A$330,000) for the financial year ending 30 June 2022.
Status
Term
Notice period
Full time
Rolling contract
6 months’ notice by either party, notice period extends to 12 months under
certain circumstances
Total Fixed Remuneration
A$410,000 per annum
Leave
20 days annual leave, 8 weeks long service leave after 10 years’ service
Short Term Incentive (STI)
Ability to earn up to 50% of base salary as an STI per annum. During the year the
Board agreed to award Mr de Vries a A$100,000 STI for his performance during
the financial year 2021 paid in cash.
Long Term Incentives (LTI)
Ability to earn up to 50% of base salary as an LTI. No options were granted to
Mr de Vries during the financial year. LTI to be reviewed annually.
Other Benefits
Indemnity & Access Deed D&O Insurance
Share based payment arrangements
Options
No options were granted during the year, affecting key management personnel remuneration (2021: 11,000,000)
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
1,084,303
11,000,000
7,600,000
3,000,000
Ordinary
Ordinary
Ordinary
Ordinary
$0.084
$0.116
$0.150
$0.150
10 August 2023
21 December 2023
28 October 2022
18 November 2022
The holders of these options do not have the right, by virtue of the option, to participate in any share issue or
interest issue of the Company.
Performance rights
No new performance rights were issued during the reporting period.
Other information
Financial Transactions with key management personnel
During the financial year the following amounts were paid to key management personnel for services.
These payments have been disclosed in the remuneration table above:
DIRECTOR
VALUE $
DESCRIPTION
Gabriel Chiappini
72,600
Amounts to Laurus Corporate Services, a Company Mr Chiappini is a
shareholder and Director of, for the provision of Company Secretarial
and Non-executive Director services.
BLACK ROCK MINING LIMITED2022 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 five years to 30 June 2022:
15
2022
3,336
(6,076,894)
(6,076,894)
$0.140
$0.145
$0.0074
2021
52,162
2020
2,870
2019
7,939
2018
24,183
(2,850,250)
(3,387,285)
(2,864,024)
(2,053,080)
(2,850,250)
(3,387,285)
(2,864,024)
(2,053,080)
$0.048
$0.140
$0.0040
$0.084
$0.048
$0.0054
$0.037
$0.084
$0.0054
$0.066
$0.037
$0.0055
Income ($’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
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:
2022
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
1 JULY 2021
3,766,150
6,716,062
5,460,078
8,504,807
EXERCISE OF
OPTIONS
2,500,000
1,600,000
5,000,000
2,500,000
OTHER CHANGES
30 JUNE 2022
-
(2,849,261)
-
-
6,266,150
5,466,801
10,460,078
11,004,807
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:
2022
1
2
0
2
Y
L
U
J
1
S
N
O
I
T
P
O
I
G
N
H
C
A
T
T
A
E
E
R
F
D
E
T
N
A
R
G
S
N
O
I
T
P
O
S
A
D
E
T
N
A
R
G
N
O
I
T
A
R
E
N
U
M
E
R
Richard Crookes
Ian Murray
John de Vries
Gabriel Chiappini
7,113,079
6,962,151
13,852,121
6,524,555
-
-
-
-
-
-
-
-
END OF REMUNERATION REPORT
D
E
S
P
A
L
S
N
O
I
T
P
O
-
-
-
-
S
N
O
I
T
P
O
D
E
S
I
C
R
E
X
E
R
E
H
T
O
2
2
0
2
E
N
U
J
0
3
D
N
A
D
E
T
S
E
V
2
2
0
2
E
N
U
J
0
3
T
A
E
L
B
A
S
I
C
R
E
X
E
D
E
T
S
E
V
N
U
(2,500,000)
-
4,613,079
3,813,079
800,000
(1,600,000)
(167,603)
5,194,548
5,194,548
-
(5,000,000)
(2,500,000)
-
-
8,852,121
7,652,121
1,200,000
4,024,555
3,491,222
533,333
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
DIRECTORS’
REPORT
16
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
30 September 2022
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT AUDITOR’S
INDEPENDENCE
DECLARATION
The Board of Directors
Black Rock Mining Limited
Level 1, 1 Walker Avenue
West Perth WA 6005
The Board of Directors
Black Rock Mining Limited
30 September 2022
Level 1, 1 Walker Avenue
West Perth WA 6005
17
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2
Brookfield Place
123 St Georges Terrace
Perth WA 6000
GPO Box A46
Deloitte Touche Tohmatsu
Perth WA 6837 Australia
ABN 74 490 121 060
Tel: +61 8 9365 7000
Tower 2
Fax: +61 8 9365 7001
Brookfield Place
www.deloitte.com.au
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
Dear Board Members
30 September 2022
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.
Dear Board Members
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the year ended 30 June 2022,
AAuuddiittoorr’’ss IInnddeeppeennddeennccee DDeeccllaarraattiioonn ttoo BBllaacckk RRoocckk MMiinniinngg LLiimmiitteedd
I declare that to the best of my knowledge and belief, there have been no contraventions of:
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of
(i)
independence to the directors of Black Rock Mining Limited.
(ii) any applicable code of professional conduct in relation to the audit.
As lead audit partner for the audit of the financial report of Black Rock Mining Limited for the year ended 30 June 2022,
I declare that to the best of my knowledge and belief, there have been no contraventions of:
Yours faithfully
(i)
the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.
DELOITTE TOUCHE TOHMATSU
Yours faithfully
DDaavviidd NNeewwmmaann
DELOITTE TOUCHE TOHMATSU
Partner
Chartered Accountants
DDaavviidd NNeewwmmaann
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
18
Interest income
Other income
Administrative expense
Employee benefit expense
Share based payment expense
Consulting expense
Depreciation and amortisation expense
Net foreign currency exchange differences
Travel
Other expenses from ordinary activities
Write off exploration expenditure
Loss before tax
Income tax benefit
LOSS FOR THE YEAR
NOTE
6
11
7
FOR THE
YEAR ENDED
30/06/2022
$
3,336
-
(459,728)
(1,488,916)
(541,975)
FOR THE
YEAR ENDED
30/06/2021
$
1,056
51,106
(124,406)
(419,079)
(952,436)
(2,570,961)
(1,349,126)
(48,181)
423,581
(408,382)
(298,425)
(687,243)
(14,172)
232,205
(21,976)
(253,422)
-
(6,076,894)
(2,850,250)
-
-
(6,076,894)
(2,850,250)
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations
1,423,068
(1,332,410)
Items not reclassified through profit or loss
-
-
TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO
MEMBERS OF BLACK ROCK MINING
(4,653,826)
(4,182,660)
Loss for the year attributable to owners of the Company
(6,076,894)
(2,850,250)
Total comprehensive loss attributable to the owners of the Company
(4,653,826)
(4,182,660)
Loss per share
Basic and diluted loss per share
25
(0.0074)
(0.0040)
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with
the accompanying notes.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT AS AT 30 JUNE 2022
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
Assets
Current assets
Cash and bank balances
Trade and other receivables
Other assets
NOTES
AS AT
30/06/2022
$
AS AT
30/06/2021
$
19
8
9
10
26,093,637
11,298,422
761,288
234,348
145,003
-
Total current assets
27,089,273
11,443,425
Non-current assets
Exploration & evaluation asset
Property, plant and equipment
11
12,13
29,748,305
22,164,704
595,788
23,512
Total non-current assets
30,344,093
22,188,216
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Foreign currency translation reserve
Share based payment reserve
Accumulated losses
Total equity
57,433,366
33,631,641
1,688,230
52,085
68,106
386,879
-
81,714
1,808,421
468,593
484,619
121,824
606,443
-
-
-
2,414,864
468,593
55,018,502
33,163,048
100,907,652
74,940,347
1,347,223
1,318,908
(75,845)
1,077,067
(48,555,281)
(42,778,521)
55,018,502
33,163,048
15
13
16
13
16
17
18
18
19
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
20
NOTE
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
Balance at 30 June 2021
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
Exercise of options
Cost of share capital issued
Cost of share based payments
Expired options transferred
to accumulated losses
Balance at 30 June 2022
17,
18,
19
17,
18,
19
ISSUED
CAPITAL
ACCUMULATED
LOSSES
SHARE BASED
PAYMENT
RESERVE
FOREIGN
CURRENCY
RESERVE
$
-
-
-
$
(2,850,250)
-
(2,850,250)
$
-
-
-
-
-
-
-
-
676,238
-
-
-
-
-
-
541,975
TOTAL
EQUITY
$
(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
-
-
(6,076,894)
1,423,068
1,423,068
1,423,068
(4,653,826)
-
-
-
-
-
25,000,000
2,339,569
(1,372,264)
541,975
-
-
-
-
-
-
-
-
-
-
-
732,043
(732,043)
-
-
-
(6,076,894)
-
(6,076,894)
300,134
(300,134)
14,050,467
172,065
104,134
-
(376,108)
-
-
25,000,000
2,339,569
(1,372,264)
-
-
74,940,347
(42,778,521)
1,077,067
(75,845)
33,163,048
100,907,652
(48,555,281)
1,318,908
1,347,223
55,018,502
The above consolidated statement of changes in equity should be read in conjunction with accompanying notes.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
FOR THE YEAR ENDED 30 JUNE 2022
CONSOLIDATED STATEMENT
OF CASH FLOWS
Cash flow from operating activities
Payments to suppliers and employees
Interest received
Government grant income
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
21
NOTE
(4,137,798)
(2,089,474)
3,336
-
1,056
51,106
Net cash flows used in operating activities
8
(4,134,462)
(2,037,312)
Cash flow from investing activities
Capitalised exploration expenditure
Payments for security deposits
Payments for property, plant and equipment
11
(7,391,496)
(817,679)
(5,892)
(63,821)
(3,600)
(5,742)
Net cash flows used in investing activities
(7,461,209)
(827,021)
Cash flows from financing activities
Proceeds from issue of shares and options
Payment of share issue costs
27,339,569
14,050,467
(1,372,264)
(376,108)
Net cash flows provided by financing activities
25,967,305
13,674,359
Net increase/(decrease) in cash held
Cash and cash equivalents at the beginning of the financial year
Effect of exchange movement on cash balances
14,371,634
11,298,422
423,581
10,810,026
722,097
(233,701)
Cash and cash equivalents at the end of the year
8
26,093,637
11,298,422
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 1
GENERAL INFORMATION
22
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 30 September 2022.
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 $6,076,894 (30 June 2021: $2,850,250) and experienced net cash outflows
from operating activities of $4,134,462 (30 June 2021: $2,037,312) and net cash outflows from investing activities
of $7,461,209 (30 June 2021: $827,021) for the year ended 30 June 2022. As at 30 June 2022 the Group had cash
and cash equivalents of $26,093,637 following the completion of a capital raise in May 2022.
During the financial year the Group deployed its working capital into its graphite prospects in Mahenge,
Tanzania by undertaking a number of work streams including but not limited to:
• Continued activities associated with FEED, completion of its Spherical Purified Graphite Production Trial,
and commencement of detailed design work;
• Commencement of work to upgrade the Environmental and Social Impact Assessment; and
• Finalisation of the Framework Agreement and Free Carry Interest (“FCI”) Agreement with the
Tanzanian Government.
Additionally, the Group commenced implementing the Resettlement Action Plan process in July 2022 with the
payment of agreed compensation to the affected people.
Management have prepared a cash flow forecast for the period ending 30 September 2023 reflecting the Group’s
key objectives. This cash flow forecast indicates that the Group is not required to raise additional capital to meet the
Group’s stated strategic objectives and for general working capital.
The forecast assumes expenditure on programmes required to advance the Mahenge Graphite Project towards
a final investment decision, including the commencement of stages one and two of Resettlement Action Plan,
which commenced post year end, refer to note 28 for further information. However, the cash flow forecast does
not assume that development activities at the Mahenge Graphite Project commence in the period ending
30 September 2023. 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, be this in the
form of debt or equity, or a combination of both.
The Directors believe that the going concern basis of preparation is therefore appropriate.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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.
23
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
24
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
Comparative financial information
Employee Benefit Expense in the consolidated statement of profit or loss and other comprehensive income for
the year ended 30 June 2022 have been reclassified to provide users a better understanding of the nature of the
expenditure incurred in prior periods and to ensure consistency of classification with the current period.
The following amounts have been reclassified in the consolidated statement of profit or loss and other
comprehensive income for the year ended 30 June 2021, from Employee Benefit Expenses, to the following
expense categories:
- Consulting expense: $375,474
3.3
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.4
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:
3.4.1
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.
25
3.5
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
26
3.6
Employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and long
service leave in the period the related service is rendered.
Liabilities recognised in respect of short-term employee benefits, are measured at their nominal values using the
remuneration rate expected to apply at the time of the settlement.
Liabilities recognised in respect of long term benefits are measured as the present value of the estimated future
cash outflows to be made by the Group in respect of services provided by employees up to reporting date.
3.7
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”).
3.8
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
3.8.1 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.
3.8.2 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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 27
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.8
Taxation - CONTINUED
3.8.3 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.
3.9
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:
6%-33%
3.10 Leased assets
The Company entered into a commercial lease for its Australian based business premises, Level 1, 1 Walker Ave
West Perth on 10 December 2021.
A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset)
for a period of time in exchange for consideration’. To apply this definition the Company assesses whether the
contract meets three key evaluations which are whether:
a) the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified
by being identified at the time the asset is made available to the Group;
b) the Group has the right to obtain substantially all of the economic benefits from use of the identified asset
throughout the period of use, considering its rights within the defined scope of the contract;
c) the Company has the right to direct the use of the identified asset throughout the period of use. The Company
assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Company recognises a right-of-use asset and a lease liability on the balance
sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability,
any initial direct costs incurred by the Company, an estimate of any costs to dismantle and remove the asset at
the end of the lease, and any lease payments made in advance of the lease commencement date (net of any
incentives received).
The Company depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the
earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses
the right-of-use asset for impairment when such indicators exist.
At the commencement date, the Company measures the lease liability at the present value of the lease payments
unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the
Company’s incremental borrowing rate.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
28
3.10 Leased assets - CONTINUED
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in
substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual
value guarantee and payments arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is
remeasured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit
and loss if the right-of-use asset is already reduced to zero.
On the statement of financial position, right-of-use assets have been included in property, plant and equipment
and lease liabilities.
3.11 Exploration Expenditure
Exploration and evaluation 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. During the period A$687,243 was written off in relation to prospecting
licences 10426/2014 and 10111/2012. Both these tenements were surrendered in February 2022 following
investigation into the tenement holding economically viable graphite deposits. No exploration and evaluation
impairments arose in the year ended 30 June 2021.
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.
3.12
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
3.12
Impairment of tangible and intangible assets other than goodwill - CONTINUED
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.
29
3.13
Financial Instruments
Trade and Other Receivables
Trade and other receivables are recognized initially at fair value and subsequently measured at amortised cost
using the effective interest rate method, less provision for impairment.
If collection of amounts is expected in one year or less, they are classified as current assets. If not, they are
presented as non-current assets. As the majority of trade and other receivables are short term in nature,
their carrying value is assumed to be the same as their fair value. Financial assets at fair value through other
comprehensive income (FVOCI) comprise equity securities which are not held for trading and which the Group has
irrevocably elected at initial recognition is this category.
At each reporting date, the group assess whether there is objective evidence that a financial instrument has been
impaired. If there is objective evidence of impairment, the cumulative loss is measured as the difference between
the acquisition cost and the current fair value, less any impairment loss on that financial asset previously not
recognized in the profit or loss which is removed from equity and recognised 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.
3.14 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.
3.15 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 did not receive any Government grants (2021: $51,106) in relation to cashflow
boost grants.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
30
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.
4.1.1 Framework Agreement
The Group entered into a Framework Agreement and Shareholders Agreement with the Tanzanian Government
on 13 December 2021.Under these agreements, the Faru Graphite Corporation Limited was established with
Mahenge Resources Limited (UK) holding 84% and the Tanzanian Government 16%. The Special Mining Licence
(“SML”) over the project tenements was granted on 5 September, 2022. There was minimal activity within the Faru
entity for the year ended 30 June, 2022 as the Group waited for the SML to be granted. Until the SML was granted
all rights of tenure remained current under existing prospecting and mining licences.
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 3.11 and Impairment at note 3.12.
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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES 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.
31
5.1
Segment revenues and results
2022
Interest
Other income
Total income
Loss before tax
Fixed asset additions
Write off of exploration expenditure
Loss on disposal of equipment
Depreciation
2022
Total segment assets
Total segment liabilities
2021
Interest
Other income
Total income
Loss before tax
Fixed asset additions
Depreciation
2021
Total segment assets
Total segment liabilities
6 EXPENSES
Employment benefit expense
Director fees
Wages and salaries
Annual leave, superannuation, long service leave and on costs
GRAPHITE
CORPORATE
CONSOLIDATED
-
-
-
3,336
-
3,336
3,336
-
3,336
(1,708,162)
(4,368,732)
(6,076,894)
-
625,296
(687,243)
(3,063)
(3,500)
-
(1,776)
(44,681)
625,296
(687,243)
(4,839)
(48,181)
GRAPHITE
CORPORATE
CONSOLIDATED
30,093,032
27,340,334
57,433,366
(387,912)
(2,026,952)
(2,414,864)
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
22,187,809
11,443,832
33,631,641
(66,289)
(402,304)
(468,593)
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
796,949
452,498
239,469
1,488,916
271,949
56,161
90,969
419,079
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 7
INCOME TAXES
32
(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
FOR THE
YEAR ENDED
30/06/2022
FOR THE
YEAR ENDED
30/06/2021
$
-
-
-
$
-
-
-
(6,076,894)
(6,076,894)
(2,850,250)
(2,850,250)
Prima facia tax benefit at 25% (2021: 26%)
(1,519,223)
(741,065)
Share based payments
Non-deductible expenditure
Non-assessable cash flow boost
Exploration expenditure written off
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
40-880 tax balance
Tax losses available for offset against future taxable income
Recognised deferred tax liabilities comprise:
Exploration and evaluation
Unrealised foreign exchange movements
Net ROU asset/liability
135,494
325,934
-
108,634
(95,072)
1,044,233
-
44,427
531,991
4,479,637
5,056,055
4,916,101
118,818
21,136
247,633
149,364
(13,288)
-
(94,775)
452,131
-
131,722
-
1,991,101
2,122,823
2,058,566
64,257
-
5,056,055
2,122,823
Unrecognised deferred tax assets
Unused tax losses for which no deferred tax asset has been recognised are $11,983,587 (2021: 20,431,162).
Potential tax benefit is $2,995,897 (2021: $5,312,102).
(d)
Franking credits
The Company has no franking credits available as at 30 June 2022 (2021: Nil).
(e)
Tax Consolidation
The Company and any wholly owned Australian resident entities have formed a tax-consolidated group with effect
from 1 July 2004 and are therefore taxed as a single entity from that date. The head company of the consolidated
group is Black Rock Mining.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
8 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:
33
Cash and bank balances
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
26,093,637
26,093,637
11,298,422
11,298,422
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
Exploration write off
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
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
(6,076,894)
(2,850,250)
48,181
541,975
(423,581)
687,243
14,172
952,436
(232,205)
-
(5,223,076)
(2,115,847)
(844,740)
1,848,782
84,572
1,088,614
(51,635)
(108,268)
(21,902)
(78,535)
Net cash used in operating activities
(4,134,462)
(2,037,312)
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
9 TRADE AND OTHER RECEIVABLES
Prepayments
GST and VAT
Restricted cash (bank guarantees, security deposits)
Balance at end of the year
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
300,135
676,237
-
300,135
276,199
952,436
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
221,451
398,279
141,558
761,288
34,495
55,308
55,200
145,003
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
10 OTHER ASSETS
34
Tenement licence fee
Balance at end of year
FOR THE
YEAR ENDED
30/06/2022
$
234,348
234,348
FOR THE
YEAR ENDED
30/06/2021
$
-
-
During the year the Company, through its subsidiary Mahenge Resources Limited (incorporated in Tanzania),
entered into an option agreement for the purchase of copper tenements in Tanzania. Subsequent to year end,
due diligence has been completed and the tenements are in the process of being transferred to Mahenge
Resources Limited.
11 EXPLORATION AND EVALUATION ASSET
In the exploration phase
Balance at beginning of year
Expenditure incurred during the year (at cost)
Expenditure written off during the year
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
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
22,164,704
22,770,344
7,460,495
(687,243)
810,349
753,095
-
(1,358,735)
29,748,305
22,164,704
FOR THE
YEAR ENDED
30/06/2022
$
7,391,496
(42,741)
111,740
7,460,495
FOR THE
YEAR ENDED
30/06/2021
$
817,679
(107,325)
42,741
753,095
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 $29,748,305 (2021: $22,164,704) at reporting date represents the carrying value of its Graphite
assets in Tanzania.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
12 PROPERTY, PLANT & EQUIPMENT
Cost at 30 June 2021
Accumulated depreciation at 30 June 2021
Carrying amount at 30 June 2021
Additions
Disposals
Depreciation and amortisation
Balance at 30 June 2022
PLANT &
EQUIPMENT
$
OFFICE
EQUIPMENT
$
31,351
(22,226)
9,125
-
(2,449)
(3,500)
3,176
44,502
(30,115)
14,387
63,821
(2,390)
(13,489)
62,329
RIGHT
OF USE
$
-
-
-
561,475
-
(31,192)
530,283
TOTAL
$
75,853
(52,341)
23,512
625,296
(4,839)
(48,181)
595,788
35
13 LEASES
In December 2021 the Company entered into a lease for the current business premises of Level 1, 1 Walker Avenue,
West Perth with access granted from 10th of January 2022. This lease is reflected on the balance sheet as a right of
use asset and a lease liability and is classified in a consistent manner to property, plant and equipment detailed at
note 12.
RIGHT-OF-USE-ASSET
REMAINING TERM
ADDITIONS
DEPRECIATION
CARRYING VALUE
Premises: Level 1, 1 Walker Ave, West Perth
30 months
561,475
31,192
530,283
Lease liabilities
Current
Non Current
Total
14 SUBSIDIARIES
30 JUNE 2022
30 JUNE 2021
$
52,085
484,619
536,704
$
-
-
-
Details of the Group’s material subsidiaries at the end of the reporting period are as follows:
NAME OF SUBSIDIARY
PLACE OF INCORPORATION
AND OPERATION
PROPORTION OF OWNERSHIP INTEREST
AND VOTING POWER HELD BY THE GROUP
Mahenge Resources Limited
Mahenge Resources Limited
Faru Grahite Corporation Limited
Tanzania
United Kingdom
Tanzania
FOR THE
YEAR ENDED
30/06/2022
FOR THE
YEAR ENDED
30/06/2021
100%
100%
84%
100%
-
-
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
15 TRADE AND OTHER PAYABLES
36
Current
Trade creditors
Accruals
Other liabilities
Total current trade creditors and other payables
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
1,182,351
399,182
106,697
1,688,230
143,193
180,714
62,972
386,879
Included in trade creditors and accruals is an amount of $111,740 (2021: $42,741) relating to exploration expenditure.
16 PROVISIONS
Current
Annual leave
Total current provision
Non Current
Annual leave
Long service leave
Total non current provision
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
68,106
68,106
81,714
81,714
98,180
23,644
121,824
-
-
-
Non current annual and long service leave provisions are in relation to the Managing Director’s leave provisions.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 17
ISSUED CAPITAL
977,255,646 ordinary shares issued and fully paid (30 June 2021: 849,264,173)
37
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
100,907,652
100,907,652
74,940,347
74,940,347
Fully paid ordinary shares
Balance at 30 June 2020
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
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
Less: capital raising costs
Balance at 30 June 2021
NUMBER OF SHARES
SHARE CAPITAL
$
628,943,708
60,989,789
39,308,982
40,816,327
126,020,001
1,650,977
2,000,000
9,731,551
4,096,779
172,065
1,292,353
8,786,023
-
104,134
667,939
(376,108)
849,264,173
74,940,347
Shares issued under Placement 6 May 2022 ($0.24 per share) – Cash
104,166,668
25,000,000
Shares issued upon exercise of options – ($0.10 per share) – Cash
17,000,000
1,700,000
Shares issued upon exercise of options – ($0.15 per share) – Cash
Shares issued upon exercise of options – ($0.084 per share) – Cash
1,600,000
5,224,805
240,000
399,569
-
(1,372,264)
977,255,646
100,907,652
Less: capital raising costs
Balance at 30 June 2022
Options
UNLISTED OPTIONS
OPENING
BALANCE
NO.
EXERCISED
IN YEAR
NO.
GRANTED
IN YEAR
NO.
EXPIRED
IN YEAR
NO.
CLOSING
BALANCE
NO.
Expiring 7 Nov 2021 at $0.10
13,000,000
(13,000,000)
Expiring 18 Dec 2021 at $0.10
Expiring 14 Mar 2021 at $0.20
Expiring 31 Oct 2021 at $0.10
3,000,000
(3,000,000)
5,000,000
-
1,000,000
(1,000,000)
Expiring 28 October 2022 at $0.15
9,200,000
(1,600,000)
Expiring 18 November 2022 at $0.15
3,000,000
-
Expiring 10 August 2023 at $0.084
35,522,958
(5,224,805)
Expiring 4 November 2023 at $0.0785
Expiring 21 December 2023 at $0.116
Expiring 24 January 2024 at $0.116
Expiring 1 July 2024 at $0.224
Expiring 1 June 2024 at $0.20
Expiring 25 October 2024 at $0.29
5,000,000
11,000,000
1,000,000
-
1,500,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
-
3,000,000
-
-
(5,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,600,000
3,000,000
30,298,153
5,000,000
11,000,000
1,000,000
1,500,000
1,500,000
3,000,000
88,222,958
(23,824,805)
4,500,000
(5,000,000)
63,898,153
The weighted average exercise price of options at 30 June 2022 is $0.12 (2021: $0.11).
The weighted average remaining contractual life of options as at 30 June 2022 is 427 days (2021: 580 days).
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
18 RESERVES (NET OF INCOME TAX)
38
Reserves
Share based payments reserve (i)
Foreign translation reserve (ii)
(i) Share Based Payments Reserve
FOR THE
YEAR ENDED
30/06/2022
$
1,318,908
1,347,223
2,666,131
FOR THE
YEAR ENDED
30/06/2021
$
1,077,067
(75,845)
1,001,222
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
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
1,077,067
1,132,872
541,975
(300,134)
676,238
(732,043)
1,318,908
1,077,067
(ii) Foreign Translation Reserve
The foreign translation reserve arises on the consolidation of the Group's overseas subsidiary,
Mahenge Resources Limited (incorporated in Tanzania). Refer to consolidated statement of changes
in equity for reconciliation of movement.
19 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
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
42,778,521
6,076,894
40,660,314
2,850,250
(300,134)
(732,043)
48,555,281
42,778,521
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
20 SHARE BASED PAYMENTS
(a)
Employee Share Incentive Scheme
39
The establishment of the Black Rock Mining Employee Share Incentive Option Plan (“the Plan”) was initially approved
by special resolution at a General Meeting of shareholders of the Company held on 21 November 2006 and
approval renewed by shareholders on 18 November 2009 and 28 November 2013. All eligible Directors, executive
officers and employees of Black Rock Mining are eligible to participate in the Plan.
The Plan allows the Company to issue options to eligible persons. The options can be granted free of charge and
are exercisable at a fixed price calculated in accordance with the Plan.
The fair value of the equity-settled share options granted is estimated as at the date of grant using a Black Scholes
model taking into account the terms and conditions upon which the options were granted.
During the year, the shared based payment expense recognised in the consolidated statement of profit and loss
totaled $541,975 (2021: $952,436).
Share based payment arrangements relating to Directors and employees:
E
T
A
D
T
N
A
R
G
T
A
E
U
L
A
V
R
A
F
I
$0.0132
$0.0094
$0.0408
$0.0271
$0.0268
$0.0245
$0.0388
$0.1018
$0.0646
$0.0643
$0.0968
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
T
A
S
N
O
I
T
P
O
R
A
E
Y
E
H
T
F
O
S
N
O
I
T
P
O
D
E
T
N
A
R
G
R
A
E
Y
S
I
H
T
S
N
O
I
T
P
O
D
E
S
I
C
R
E
X
E
R
A
E
Y
S
I
H
T
,
D
E
S
P
A
L
D
E
R
P
X
E
I
S
N
O
I
T
P
O
R
A
E
Y
S
I
H
T
R
A
E
Y
E
H
T
F
O
R
E
B
M
U
N
T
A
S
N
O
I
T
P
O
F
O
D
N
E
E
H
T
S
N
O
I
T
P
O
E
L
B
A
S
I
C
R
E
X
E
D
N
E
E
H
T
T
A
R
A
E
Y
E
H
T
F
O
I
I
G
N
N
N
G
E
B
E
H
T
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500,000
1,500,000
1,500,000
1,500,000
7,600,000
5,066,667
5,000,000
5,000,000
11,000,000
11,000,000
1,000,000
1,000,000
1,500,000
1,500,000
1,500,000
1,000,000
3,000,000
1,000,000
33,600,000
28,566,667
7/11/2018
7/11/2021
8/11/2018
31/10/2021
2/05/2019
2/05/2022
2/05/2019
2/05/2022
28/10/2019
28/10/2022
$0.10
$0.10
$0.15
$0.15
$0.15
10,000,000
1,000,000
1,500,000
1,500,000
9,200,000
4/11/2020
4/11/2023
$0.0785
5,000,000
23/11/2020
21/12/2023
25/01/2021
24/01/2024
1/06/2021
1/06/2024
1/07/2021
1/07/2024
25/10/2021
25/10/2024
$0.116
$0.116
$0.20
$0.224
$0.29
11,000,000
1,000,000
1,500,000
-
-
-
-
-
-
-
-
-
10,000,000
1,000,000
-
-
1,600,000
-
-
-
-
-
-
-
1,500,000
3,000,000
41,700,000
4,500,000
12,600,000
Share based payment arrangements relating to Directors and Employees:
EMPLOYEES
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
EMPLOYEES
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
1-Jul-21
1,500,000
Black Scholes
5.6
22.4
81%
3 years
Nil
0.3%
25-Oct-21
3,000,000
Black Scholes
20.4
29
87%
3 years
Nil
0.1%
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
40
20 SHARE BASED PAYMENTS - CONTINUED
The following reconciles the outstanding share options granted under the Plan at the beginning and end of the
financial year.
2022
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
(CENTS)
2021
NUMBER OF
OPTIONS
WEIGHTED
AVERAGE
EXERCISE PRICE
Balance at the beginning of the financial year
41,700,000
0.120
43,200,000
Granted during the financial year:
- Directors
- Employees & consultants
Expired during the year
- Directors
- Employees & consultants
Exercised
- Directors
- Employees
Balance at the end of the financial year
Vested and Exercisable at the end of the year
-
-
11,000,000
4,500,000
0.268
7,500,000
-
-
-
-
(15,000,000)
(5,000,000)
(11,600,000)
(1,000,000)
33,600,000
28,566,667
0.105
0.100
0.145
0.133
(15,000,000)
(15,000,000)
41,700,000
33,200,000
(CENTS)
0.114
0.116
0.108
0.100
0.100
0.100
0.100
0.120
0.124
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 $0.145 (2021: $0.120) and a weighted average remaining contractual life of 446 days
(2021: 564 days).
21 KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel of Black Rock Mining during the year were:
Richard Crookes
Non-Executive Chairman
Appointed – 16 October 2017
Appointed – 2 May 2019
Ian Murray
John de Vries
Non-Executive Director
Chief Executive Officer & Managing Director
Appointed – 16 March 2017
Gabriel Chiappini
Non-Executive Director Company Secretary
Appointed – 21 March 2012
Details of the remuneration of key management personnel are set out as follows:
Short-term employee benefit
Post-employment benefits
Share-based payments
Bonus
Other
FOR THE
YEAR ENDED
30 JUNE 2022
$
FOR THE
YEAR ENDED
30 JUNE 2021
$
625,032
40,177
175,768
100,000
69,701
1,010,678
356,321
44,270
582,503
-
43,900
1,026,994
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22 REMUNERATION OF AUDITORS
Auditor of the parent entity
41
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.
23 RELATED PARTY TRANSACTIONS
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
74,553
13,139
87,692
46,050
8,963
54,993
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
72,600
Amounts to Laurus Corporate Services, a Company Mr Chiappini is a
shareholder and Director of, for the provision of Company Secretarial
and Non-executive Director services.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
24 EXPENDITURE COMMITMENTS
42
a.
Exploration
The Company’s subsidiary, 84% owned Faru Graphite Corporation Limited, has license conditions with the
Tanzanian Energy and Minerals Department, the subsidiary is obliged to pay the below amounts per square
kilometer to keep its tenements in good standing.
The license costs per annum are as follows:
PROJECT NAME
LICENSE TYPE
LICENSE NUMBER
AREA KM²
RATE PER KM²
TOTAL
Special Mining Licence
SML 676/2022
34.96
USD 5,000
USD 174,800
Mahenge North
Mahenge North
Prospecting License
PL 21382/2022*
Mahenge Southwest
Prospecting License
PL 10427/2014~
* Application pending
~ Renewal pending
108.00
55.29
198.25
USD 100
USD 200
USD 10,800
USD 11,058
USD 196,658
During the period the Company surrendered it’s prospecting licences 10426/2014 and 10111/2014 following a
detailed review of each tenements holding economically viable graphite deposits.
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 2022.
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 PL10427/2014
• $250,000 cash or equivalent number of fully paid Black Rock Mining shares (at the election of the vendor) upon
announcement of a JORC compliant resource of greater than 250,000 tonnes of contained graphite at >9% TGC is
announced. Issue price of shares to be calculated based on the preceding seven (7) day VWAP; and
• $375,000 cash and the equivalent value ($375,000) in Black Rock Mining Shares to be paid when a JORC compliant
Resource with greater than 1,000,000 tonnes of contained graphite at >9% total graphite content at any of the
Projects is announced by Black Rock Mining on the ASX. The issue price of BKT Shares is to be calculated based
on the VWAP of Black Rock Mining Shares in the 5 days prior to the release of the announcement.
The required targets have not been met and hence no liability has been recognised.
Exploration Program
There are no commitments to exploration as at the date of this report.
b.
Capital Commitments
As at 30 June 2022, the Group has capital commitments of $11,543,397 for the Resettlement Action Plan (2021: Nil).
Subsequent to year-end the Group commenced the Resettlement Action Plan compensation process, which at the
date of this report has resulted in the following capital commitments related to this process. Refer to note 28 for
further information.
Within one year
One to five years
After 5 years
c.
Lease Commitments
Refer to note 13.
d.
Contractual Commitments
FOR THE
YEAR ENDED
30 JUNE 2022
$
9,218,563
2,324,834
-
11,543,397
FOR THE
YEAR ENDED
30 JUNE 2021
$
-
-
-
-
As at 30 June 2022, the Group had contractual expenditure commitments of $1,277,429. (June 2021: Nil)
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
25 LOSS PER SHARE
The following reflects the profit/ (loss) and share details used in the calculation of basic and diluted profit/ (loss)
per share:
43
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
Profit/(Loss) used in calculating basic and diluted loss per share
(6,076,894)
(2,850,250)
Weighted average number of ordinary shares used in calculating basic and
diluted profit/(loss) per share:
822,569,805
707,527,614
Basic and diluted profit/(loss) per share
($0.0074)
($0.0040)
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 for the years presented.
26 FINANCIAL INSTRUMENTS
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while
maximizing the return to stakeholders through the optimisation of the debt and equity balances. The Group’s
overall strategy remains unchanged from 2021.
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
Lease liabilities
Provisions
Total financial liabilities
Net financial instruments
FOR THE
YEAR ENDED
30/06/2022
FOR THE
YEAR ENDED
30/06/2021
26,093,637
11,298,422
761,288
145,003
26,854,925
11,443,425
(1,688,230)
(386,879)
(52,085)
(68,106)
(1,808,421)
-
(81,714)
(468,593)
24,976,765
10,974,832
The capital structure of the Group consists of net debt (current liabilities offset by cash and bank balances as
detailed in notes 8 and 15) and equity of the Group (comprising issued capital, reserves and accumulated losses
as detailed in notes 17, 18 and 19).
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 26 FINANCIAL INSTRUMENTS - CONTINUED
44
a.
Capital Management
The main focus of the Group’s capital management policy is to ensure adequate working capital to fund the
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
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
26,093,637
11,298,422
761,288
145,003
(1,740,315)
(386,879)
25,114,610
11,056,546
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.
Market risk
Foreign exchange risk
The Group transacts in US Dollars and Tanzanian Shillings in relation to its Tanzanian operations is exposed to
foreign exchange currency movements arising from various currency exposures, primarily with respect to the US
Dollar and the Tanzanian Shilling.
Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the entity’s
functional currency and net investments in foreign operations.
The Group’s exposure to foreign currency risk at the reporting date was as follows:
Group sensitivity
The parent entity advances funds to the Tanzanian subsidiary in US Dollars. The foreign exchange is recognised in
the parent entity.
The consolidated entity’s pre-tax loss for the year would have been $109,927 higher/lower (2021: $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 $26,093,637 (2021: $11,298,422 ).
At 30 June 2022, 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 $334 lower/higher
(2021: $106 lower/higher) mainly as a result of interest income deceases/increases.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
26 FINANCIAL INSTRUMENTS - CONTINUED
Credit risk
45
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
$398,279
$141,558
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
$1,182,351
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.
27 CONTINGENT LIABILITIES
There were no material contingent liabilities as at 30 June 2022 (2021: Nil)
28 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 Consolidated Entity or the results of those operations, or the state of affairs
of the Consolidated Entity in subsequent financial years.
On 18 July 2022, the Company announced the senior appointments for the Tanzanian leadership team under the
Company’s 84% owned joint venture company, Faru Graphite Corporation (“Faru”), established in partnership with
the Tanzanian Government to develop the Mahenge Graphite Mine. Faru CEO, Mr Alimiya (Ali) Osman was appointed,
along with Mr Asa Mwaipopo as Non-Executive Director of Faru. Mr Ted Silkiluwasha and Mr Danstan Mtajura Daud
also joined as government appointed Directors of Faru, along with Black Rock Mining Directors Mr John de Vries and
Mr Ian Murray who were appointed as Executive Chairman and Non-Executive Director of Faru, respectively
On 18 July 2022 the Company commenced the Resettlement Action Plan compensation process. The total estimated
cost of the plan is $11,543,397 over four stages.
These stages comprise:
• Stage 1: Compensation payments for affected persons to relocate – Ulanzi Mine and Plant Area ($2,589,087)
• Stage 2: Compensation payments for affected persons to relocate – Cascade Mine Area ($6,629,476)
• Stage 3: Costs for removal of graves ($344,503)
• Stage 4: Top up payments to align the compensation with the Equator Principles ($1,980,331).
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
46
28 EVENTS AFTER THE REPORTING DATE - CONTINUED
Subsequent to year-end the company has commenced negotiations, signing contracts and making initial payments
with affected persons under Stage 1. Following completion of Stage 1, the Group expects to commence Stage 2 of
the Resettlement Action Plan compensation process, no payments have been entered into with respect to this
Stage at the date of this report.
On 9 August 2022, the Company, and one of its subsidiaries, Mahenge Resources Limited (incorporated in
Tanzania), received a form of referral of an employment dispute to the Commission for Mediation and Arbitration
in Tanzania from a former Tanzanian based consultant. Whilst the matter is in the preliminary stages, based
on legal advice received to date, the Group believes the claim is spurious, and the amount claimed is ambit,
and consequently the matter will be vigorously defended. Accordingly, it is not practicable at this stage to estimate
the amount, if any, of any liability that may arise from this matter.
On 2 September 2022 the Company was informed that the SML for the Mahenge Graphite Project had been
approved. Faru was subsequently issued the SML on 5 September 2022.
On 9 September 2022, the Company announced that Faru had signed a Conditional Framework Agreement
(Agreement) with US-based Urbix, Inc (Urbix) for material from Module Two of the Mahenge Graphite Project.
29 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 Notes 24 and 27.
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
26,744,717
12,464,909
39,209,626
11,428,880
7,500,645
18,929,525
1,420,510
606,443
2,026,953
402,304
-
402,304
100,907,653
74,940,348
(66,379,174)
(57,490,194)
2,654,194
1,077,067
37,182,673
18,527,221
FOR THE
YEAR ENDED
30/06/2022
$
FOR THE
YEAR ENDED
30/06/2021
$
4,503,134
3,424,607
-
-
4,503,134
3,424,607
BLACK ROCK MINING LIMITED2022 ANNUAL REPORTFOR THE YEAR ENDED 30 JUNE 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
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;
47
(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
30 September 2022
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT INDEPENDENT
AUDITOR’S REPORT
48
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
ttoo tthhee mmeemmbbeerrss ooff
BBllaacckk RRoocckk MMiinniinngg LLiimmiitteedd
IInnddeeppeennddeenntt AAuuddiittoorr’’ss RReeppoorrtt
ttoo tthhee mmeemmbbeerrss ooff
BBllaacckk RRoocckk MMiinniinngg LLiimmiitteedd
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Opinion
Deloitte Touche Tohmatsu
ABN 74 490 121 060
Tower 2
Brookfield Place
123 St Georges Terrace
Deloitte Touche Tohmatsu
Perth WA 6000
ABN 74 490 121 060
GPO Box A46
Perth WA 6837 Australia
Tower 2
Brookfield Place
Tel: +61 8 9365 7000
123 St Georges Terrace
Fax: +61 8 9365 7001
Perth WA 6000
www.deloitte.com.au
GPO Box A46
Perth WA 6837 Australia
Tel: +61 8 9365 7000
Fax: +61 8 9365 7001
www.deloitte.com.au
We have audited the financial report of Black Rock Mining Limited (the Company) and its subsidiaries (the Group)
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
Opinion
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.
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 2022, the consolidated statement of
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated
including:
statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for
significant accounting policies and other explanatory information, and the directors’ declaration.
the year then ended; and
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for
the year then ended; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We
are independent of the Group in accordance with the auditor independence requirements of the Corporations Act
Basis for Opinion
2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We
are independent of the Group in accordance with the auditor independence requirements of the Corporations Act
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the
2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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
Key Audit Matters
directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
financial report for the current period. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial report for the current period. These matters were addressed in the context of our audit of the financial report
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 49
KKeeyy AAuuddiitt MMaatttteerr
HHooww tthhee ssccooppee ooff oouurr aauuddiitt rreessppoonnddeedd ttoo tthhee KKeeyy AAuuddiitt MMaatttteerr
AAccccoouunnttiinngg ffoorr EExxpplloorraattiioonn aanndd EEvvaalluuaattiioonn AAsssseettss
As at 30 June 2022, the carrying value of
exploration and evaluation assets amounts to
$29,748,305 including additions of $7,460,495 as
disclosed in Note 11.
Significant judgement is applied in determining
the treatment of exploration and evaluation
expenditure including:
•
•
•
•
•
for
the
conditions
whether
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 likelihood of licence renewal or
extension; and
the expected or actual success of
resource evaluation and analysis.
The timing of when assets are transferred
from exploration and evaluation to property, plant
and equipment often
significant
judgement due to the assessment of technical
feasibility and commercial viability being unique
for each project / area of interest.
involves
Our procedures associated with exploration and evaluation expenditure
incurred during the year included, but were not limited to:
•
•
Evaluating the design and implementation of processes and
controls associated with the capitalisation 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:
•
•
•
Evaluating the design and implementation of processes and
controls in respect of assessing the recoverability of exploration
and evaluation assets;
Evaluating management’s impairment 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
o
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;
holding discussions with management as to the status of
ongoing exploration programs in the respective area of
interest; and
assessing whether any facts or circumstances existed to
suggest impairment testing was required.
Assessing the accuracy of amounts written off where an
impairment trigger was identified by management.
Our procedures associated with the classification of Exploration &
Evaluation Assets included, but were not limited to:
•
•
•
in relation to any
Holding discussions with management
commitments entered into;
Reviewing board or directors minutes, investor presentations
released by the Company, and corporate budgets to assess
whether these would indicate that a final investment decision
has been made; and
Performing subsequent events procedures to identify if any final
investment decision has been made after the reporting date,
including assessing the impact of commencing stages one and
two of the Resettlement Action Plan.
We also assessed the appropriateness of the disclosures in Note 11 and
Note 24 to the financial statements.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT INDEPENDENT
AUDITOR’S REPORT
50
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 2022, but does not include the financial report and our auditor’s
report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view
in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as
the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view
and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as 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.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT 51
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to
cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the directors, we determine those matters that were of most significance in the
audit of the financial report of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 12 to 15 of the Directors’ Report for the year ended 30
June 2022..
In our opinion, the Remuneration Report of Black Rock Mining Limited, for the year ended 30 June 2022, 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, 30 September 2022
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT ADDITIONAL
INFORMATION
52
Additional information required by the Australian Securities Exchange and shown elsewhere in this report is set
out below. The information is current as at 16 September 2022.
Distribution – Ordinary Fully Paid Shares
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
176
589
466
1,783
731
52,578
1,914,501
3,826,170
70,689,318
900,836,596
3,745
977,319,163
0.01
0.20
0.39
7.23
92.17
0.00
100.00
Unmarketable parcels
Minimum $ 500.00 parcel at $ 0.2100 per unit
2,381
338
353,706
MINIMUM PARCEL SIZE
HOLDERS
UNITS
Voting Rights
The voting rights for each class of security on issue are:
Ordinary Fully Paid Shares
Each ordinary shareholder is entitled to one vote for each share held.
Options
The holders of options have no rights to vote at a general meeting of the company.
Largest Shareholders
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
CITICORP NOMINEES PTY LIMITED
UBS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
DANIEL TURNER CAPITAL PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
JAWAF ENTERPRISES PTY LTD
WESTPARK OPERATIONS PTY LTD
SPACETIME PTY LTD
MR CHIN YONG CHONG
GASMERE PTY LTD
DANIEL TURNER HOLDINGS PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR WARREN WILLIAM BROWN + MRS MARILYN HELENA BROWN
E & E HALL PTY LTD
CITYWEST CORP PTY LTD
TISDELL FAMILY SUPER PTY LTD
EYEON NO 2 PTY LTD
UNITS
% UNITS
126,020,001
12.89
53,000,000
33,000,000
30,174,882
28,323,071
23,928,892
20,424,256
16,746,700
13,700,000
13,561,674
12,617,753
12,343,005
11,602,661
10,367,396
10,209,113
9,492,500
8,895,376
8,721,422
7,939,734
7,761,746
5.42
3.38
3.09
2.90
2.45
2.09
1.71
1.40
1.39
1.29
1.26
1.19
1.06
1.04
0.97
0.91
0.89
0.81
0.79
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
458,830,182
518,488,981
46.95
53.05
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
Substantial Shareholders
Substantial Shareholders as disclosed in substantial shareholder notices provided to the Company as at
16 September 2022.
53
NAME
POSCO1
Copulos Group2
1. As lodged on 10 June 2022
2. As lodged on 1 June 2022
Distribution – Unlisted Options Expiring 04/11/23 at $0.0785
NUMBER OF
ORDINARY SHARES
PERCENTAGE
(%)
126,020,001
118,720,679
12.90
12.15
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
0
0
0
0
2
2
0
0
0
0
5,000,000
5,000,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Corporate Campaigns Pty Ltd holds 3,000,000 Options, comprising 60.00% % of this class; Mr Raymond Hekima holds 2,000,000 Options,
comprising 40.00% of this class.
Distribution – Unlisted Options Expiring 21/12/2023 at $0.116
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
0
0
0
0
4
4
0
0
0
0
11,000,000
11,000,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Mrs Karen Gail de Vries holds 5,000,000 Options, comprising 45.54% % of this class.
Distribution – Unlisted Options Expiring 10/08/2023 at $0.084
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
44
71
48
140
60
22,278
181,011
348,008
5,010,774
24,672,564
0.07
0.60
1.15
16.57
81.60
0.01
363
30,234,635
100.00
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
54
ADDITIONAL
INFORMATION
Distribution – Unlisted Options Expiring 28/10/2022 at $0.15
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
0
0
0
0
3
3
0
0
0
0
7,600,000
7,600,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Mr John de Vries holds 3,600,000 Options, comprising 47.37% of this class; Mr Richard Anthony Crookes holds 2,400,000 Options, comprising
31.58% of this class; Mrs Gabriel Chiappini & Mrs Rosa Chiappini holds 1,600,000 Options, comprising 21.05% of this
class
Distribution – Unlisted Options Expiring 18/11/2022 at $0.15
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
0
0
0
0
1
1
0
0
0
0
3,000,000
3,000,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Murray Super Investments Pty Ltd holds 3,000,000 Options, comprising 100.00 % of this class.
Distribution – Unlisted Options Expiring 25/10/2024 at $0.29
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
0
0
0
0
1
1
0
0
0
0
3,000,000
3,000,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Mining Securities Pty Ltd holds 3,000,000 Options, comprising 100.00 % of this class.
Distribution – Unlisted Options Expiring 26/04/2025 at $0.40
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
0
0
0
0
1
1
0
0
0
0
1,500,000
1,500,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Mr Paul Raymond Sims holds 1,500,000 Options, comprising 100.00 % of this class.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
Distribution – Unlisted Options Expiring 1/06/2024 at $0.20
RANGE
TOTAL HOLDERS
UNITS
% UNITS
55
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Rounding
Total
0
0
0
0
1
1
0
0
0
0
1,500,000
1,500,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. IRX Advisors Pty Ltd holds 1,500,000 Options, comprising 100.00 % of this class.
Distribution – Unlisted Options Expiring 24/01/2024 at $0.116
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
0
0
0
0
1
1
0
0
0
0
1,000,000
1,000,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. L39 Pty Ltd holds 1,000,000 Options, comprising 100.00 % of this class.
Distribution – Unlisted Options Expiring 1/07/2024 at $0.224
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
0
0
0
0
1
1
0
0
0
0
1,500,000
1,500,000
0.00
0.00
0.00
0.00
100.00
0.00
100.00
1. Mr Daniel Pantany holds 1,500,000 Options, comprising 100.00 % of this class.
On-market Buy-Back
Currently there is no on-market buy-back of the Company’s securities
Securities Subject to Escrow
As at 16 September 2022 there are no securities currently subject to escrow.
Corporate Governance
Pursuant to the ASX Listing Rules, the Company’s Corporate Governance Statement will be released in conjunction
with this report. The Company’s Corporate Governance Statement is available on the Company’s website at:
https://blackrockmining.com.au/about-us/#corporate-governance
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
ADDITIONAL
INFORMATION
56
Annual Mineral Resources and Ore Reserves Statement
The Company’s Exploration Results, Mineral Resource and Ore Reserve estimates are reported in accordance
with the ASX Listing Rules and the requirements and guidelines of the 2012 edition of the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves – the JORC Code. The Company’s Mineral
Resource and Ore Reserve estimates for 30 June 2022 are listed in the tables below
As released on ASX on 3 February 2022 (refer to ASX Announcement: Black Rock Mining confirms 25% increase in
Measured Mineral Resource, now the largest in class globally), following the completion of assays from the Company’s
2019 infill metallurgical drilling and bulk sampling program, the JORC Compliant Mineral Resource Estimate and
Ore Reserve at the Mahenge Graphite Project was updated, posting a 25% increase in Measured Mineral Resource.
There was no change to the JORC Compliant Ore Reserve at the Mahenge Graphite Project.
Mineral Resource Estimate Table as at 30 June 2022
PROJECT
CATEGORY
TONNES
Mahenge Graphite Project
Measured
Indicated
Inferred
TOTAL
(MT)
31.8
84.6
96.7
213.1
Note: Appropriate rounding applied
Mineral Resource Estimate Table as at 30 June 2021
PROJECT
CATEGORY
TONNES
Mahenge Graphite Project
Measured
Indicated
Inferred
TOTAL
(MT)
25.5
88.1
98.3
211.9
Ore Reserve Estimate Table as at 30 June 2022
PROJECT
CATEGORY
TONNES
Mahenge Graphite Project
Proved
Probable
TOTAL
(MT)
-
70.5
70.5
Note: Appropriate rounding applied
Ore Reserve Estimate Table as at 30 June 2021
PROJECT
CATEGORY
TONNES
Mahenge Graphite Project
Note: Appropriate rounding applied
Proved
Probable
TOTAL
(MT)
-
70.5
70.5
TGC
(%)
8.6
7.8
7.4
7.8
TGC
(%)
8.6
7.9
7.6
7.8
TGC
(%)
-
8.5
8.5
TGC
(%)
-
8.5
8.5
CONTAINED
GRAPHITE
(MT)
2.7
6.6
7.2
16.6
CONTAINED
GRAPHITE
(MT)
2.2
6.9
7.4
16.6
CONTAINED
GRAPHITE
(MT)
-
6.0
6.0
CONTAINED
GRAPHITE
(MT)
-
6.0
6.0
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
Tenement Schedule as at 30 June 2022
LICENCE TYPE
LICENCE NUMBER
TOTAL AREAS
DATE GRANTED
EXPIRY DATE
BKT OWNERSHIP
Prospecting Licence
PL10426/2014
Prospecting Licence
PL10111/2014
Prospecting Licence
Pl11486/2020
Prospecting Licence
PL10427/2014
Mining Licence
Mining Licence
ML611/2019
ML612/2019
(SQ KM)
N/A
N/A
118.37
55.29
9.94
9.79
193.39
02.02.2014
02.02.2014
26/9/2022
26/9/2022
25.09.2020
24.09.2024
02.02.2014
01.12.2029
25.02.2019
24.02.2029
25.02.2019
24.02.2029
100%
100%
84%
100%
84%
84%
57
Governance and Internal Controls
The Company’s geology department have a set of guidelines and working practices to control the Mineral Resources
and Ore Reserves estimation and reconciliation process, as well as the quality of the data used. The Company’s risk
management program includes assessment of the risks associated with the estimations of Mineral Resources and
Ore Reserves and the controls in place to ensure that robust Resource and reserve estimates are reported.
The Company, through its senior geological and mining engineering staff ensures that all Mineral Resource and Ore
Reserves estimations are subject to appropriate levels of governance and internal controls. Exploration results are
collected and managed by a competent qualified geologist. All data collection activities are conducted to industry
standards based on a framework of quality assurance and quality control protocols covering all aspects of sample
collection, topographical and geophysical surveys, drilling, sample preparation, physical and chemical analysis
and data and sample management. Mineral Resource and Ore Reserve estimates are prepared by appropriately
qualified Competent Person. If there is a material change in the estimate of a Mineral Resource or Ore Reserve,
the estimate and supporting documentation in question is reviewed by a suitably qualified Competent Person and
announced to the ASX in accordance with the Listing Rules. The Company reports its Mineral Resources and Ore
Reserves on an annual basis in accordance with the JORC Code 2012 Edition. The Company’s Competent Persons
are members of the Australasian Institute of Mining and Metallurgy (AUSIMM), and qualify as Competent Persons
under the JORC Code 2012.
Competent Person Statement
The information in this report that relates to reporting of Exploration Results have been prepared by Mr Prisin Moshi.
Mr Moshi is an employee of Black Rock Mining and has supervised recent drilling and exploration programs at the
Mahenge Graphite Project. Mr Moshi is a member of the AUSIMM 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 a
Competent Person 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.
The information in this report that relates to Mineral Resources prepared by Mr Lauritz Barnes, consultant with
Trepanier Pty Ltd. Mr Barnes is a member of the AUSIMM 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 a
Competent Person 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.
The information in this report that relates to the Ore Reserve Statement, has been compiled by Mr Beng Ko, under
the direction of Mr John de Vries and in accordance with the guidelines of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (The JORC Code – 2012 Edition). Mesrrs de Vries and Ko
are both employees of Black Rock Mining and members of the AUIMM. Mr de Vries takes overall responsibility for
this information. Mr de Vries is a shareholder of the Company and holds options in the Company as part of his
total remuneration package. Mr de Vries has the requisite experience in Ore Reserve estimation relevant to the
style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and
Ore Reserves”.
Mesrrs Moshi, Barnes and de Vries consent to the inclusion in this report of the matters based on the information
in the form and context in which they appear.
BLACK ROCK MINING LIMITED2022 ANNUAL REPORT
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www.blackrockmining.com.au