Barton Gold Holdings Limited
ACN 633 442 618
Annual Report
for the year ended 30 June 2022
Barton Gold Holdings Limited
Annual Report - 30 June 2022
Contents Page
Corporate Directory
Chairman’s Letter
Directors' Report
Auditor’s Independence Declaration
Financial Statements
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor's Report to the Members
Additional Information
Tenement Schedule
Annual Mineral Resource Statement
Statement of Risks
3
4
5
19
20
25
46
47
51
54
55
58
2
Barton Gold Holdings Limited
Corporate Directory
Corporate Directory
Board of Directors
Kenneth Williams
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
Company Secretary
Shannon Coates
Independent Non-Executive Chair
Managing Director & Chief Executive Officer
Independent Non-Executive Director
Independent Non-Executive Director
Non-Executive Director
Registered office
Level 4, 12 Gilles Street
Adelaide SA 5000
Email: contact@bartongold.com.au
Website: www.bartongold.com.au
Principal place of business
Level 4, 12 Gilles Street
Adelaide SA 5000
Email: contact@bartongold.com.au
Website: www.bartongold.com.au
Phone: (08) 7073 6368
Auditors
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Share registry
Automic Group
Level 5, 126 Phillip St
Sydney NSW 2000
GPO Box 5193
Sydney NSW 2001
Website: www.automicgroup.com.au
Home exchange
Australian Securities Exchange Ltd
Level 40
152-158 St Georges Terrace
Perth WA 6000
ASX Code: BGD
3
Barton Gold Holdings Limited
Chairman’s Letter
Dear Investor
On behalf of the board of Barton Gold Holdings Limited (Barton or the Company), I am delighted to
present this year’s Annual Report, after our first full year as a publicly listed company.
The Review of Operations section to follow lays out in detail an extensive list of achievements and
activities completed during the 2022 financial year and shows that it has been a very productive period,
and one of significant progress.
The Company has vigorously pursued its core exploration strategy, with the completion of two major
drilling programs (one of which was completed despite the challenges of historically anomalous major
rain events), a ground penetrating radar survey and an extensive gravity survey. Details of these
exploration activities have been announced to the ASX throughout the year and are summarised in the
following pages.
The Company was successful with applications for two rounds of the South Australian Government’s
Accelerated Discovery Initiative which provides co-funding of up to $895,000 for the Company’s
exploration and corporate initiatives. This is not only a welcome supplement to the Company’s working
capital, but is also a validation of the credibility of the exploration program.
On the Corporate front there were several key achievements:
• The Board composition was slimmed down and seamlessly evolved to reflect the South
Australian focus of the Company.
• A cohesive management team has now been assembled in new corporate premises in Adelaide
with the engagement of an experienced Head of Exploration, Chief Financial Officer, Principal
Geologist and General Manager Projects. (The establishment of this presence benefited from
a South Australian Government Landing Pad grant of up to $80,000.)
• The first phase of a program of rationalisation of surplus assets was commenced with the sale
of part of the Central Gawler Camp and the sale of gold materials which generated cash
proceeds of $1.7 million and contributed to a better-than-expected cash balance at 30 June,
2022 of $11.2 million.
This efficient execution of this program of activity has created a strong platform for Barton to continue
to execute its large-scale exploration strategy which will be the focus of the remainder of calendar 2022.
The Company will then look to provide an updated JORC (2012) Mineral Resource Estimate.
The Company continues to foster and develop strong and respectful relationships with key stakeholders
including Traditional Owners, Pastoral Leaseholders and the South Australian State Government which
is a key element of the objective of becoming and being seen as the pre-eminent pure-play gold
company in South Australia.
I look forward to reporting to you as we move forward and on behalf of the Board, I would like to extend
my thanks to our shareholders for their continuing support.
Yours faithfully,
Kenneth Williams
Independent Non-Executive Chairman
4
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Directors' Report
The directors present their report, together with the financial statements, on the consolidated entity
comprising Barton Gold Holdings Limited (the Company or Barton) and its controlled entities (the
Group) for the financial year 1 July 2021 to 30 June 2022.
Directors
The following persons were directors of Barton Gold Holdings Limited during the whole of the financial
year and up to the date of this report unless otherwise stated.
Kenneth Williams (appointed 01 May 2022)
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
Richard Crookes (resigned 01 May 2022)
Mark Connelly (resigned 30 June 2022)
Company Secretary
Shannon Coates has held the role as Company Secretary since 07 January 2021.
Principal Activities
During the year, the Group focussed on a series of exploration programs at its Tarcoola, Tunkillia and
Challenger projects in South Australia.
Dividends
No dividends have been declared or paid during the financial year (30 June 2021: $nil).
Operating Results and Financial Position
Loss after income tax for the year ended 30 June 2022 is $4.105 million (30 June 2021, net loss after
income tax $7.733 million).
Review of Operations
In its first full year as a company listed on the Australian Securities Exchange (ASX) Barton has
announced the completion of a wide array of high-value exploration and corporate initiatives, including
multiple discoveries significantly expanding the footprints of the Tarcoola Gold Project (Tarcoola) and
the Tunkillia Gold Project (Tunkillia), the realisation of more than $1.7 million cash proceeds from gold
and surplus equipment sales, and nearly $1 million in corporate and exploration grant funding awarded
by the Government of South Australia.
Exploration
On 6 August 2021 the Company announced the completion of its Tarcoola Phase 2 drilling program,
comprising 4,944 metres of reverse circulation (RC) drilling across a total of 42 completed drill holes.
The results of this drilling were announced on 20 and 27 October 2021 and confirmed an up to 200
metre depth extension of mineralisation below the Perseverance open pit mine (Tarcoola) and a
significant southern extension of mineralisation via the new Perseverance West gold zone.
On 6 August 2021 the Company also announced the completion of approximately 2.6km2 ground
penetrating radar (GPR) surveys at Tarcoola. The GPR surveys resulted in the 29 September 2021
announcement that the Company had identified multiple new shallow (10-50 metre deep) targets across
Tarcoola Mining Lease 6455.
On 9 September 2021 the Company announced the completion of Phase 1 drilling at Tunkillia, being
the Company’s first drilling program completed at the project since acquisition. A total of 5,362 metres
of RC drilling was completed across a total 31 completed drill holes at Area 191 and Area 223 North
prospects, as well as in the central area of the cornerstone 223 Deposit. Assay results from this program
confirmed the discovery of a new 800 metre long 223 North gold zone, the discovery of a new 650
metre long Area 191 gold zone, and a 250 metre long higher-grade zone central to the 223 Deposit
(announced by the Company on 3, 8 and 15 November 2021, respectively).
5
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
On 27 September 2021 the Company announced the completion of over 80km2 gravity surveys at
Tarcoola, undertaken with the objective to further map priority exploration targets. The gravity surveys
resulted in the 10 March 2022 announcement that the Company has identified multiple new priority
exploration targets including a large shear zone dilation at the Ealbara prospect, and also the ‘western
targets’ area of Tarcoola where prior geophysical evaluation had identified a more than 14km long
corridor of high priority targets overlying a system of shears and faults analogous to the structure which
created the high-grade open pit Perseverance mine.
Following the successes of the foregoing drilling and geophysical programs, the Company undertook
during May and June 2022 (and announced on 6 June 2022 the completion of) further RC drilling
programs at each of Tarcoola (3,267 metres) and Tunkillia (3,160 metres). The results of these drilling
programs were announced after the end of the 2022 financial year and are detailed below in the section
entitled ‘Matters Subsequent to the End of the Reporting Period’.
On 14 June 2022 the Company announced that Phase 1 analysis from its strategic Gawler Craton R&D
partnership with SensOre Ltd (ASX:S3N) (SensOre) (further details below) had identified multiple new
gold and copper targets across a 60,000km2 area of the central Gawler Craton of South Australia,
including and surrounding the Company’s projects. Subsequent Phase 2 analysis and drill testing of
predicted targets will commence following the completion of additional preparatory geophysical,
geochemical and drilling programs across Tarcoola and Tunkillia.
Corporate
On 4 August 2021, the Company announced that it had executed a $300,000 funding agreement with
the South Australian Government following a successful application for a grant under Round 2 of the
South Australian Governments Accelerated Discovery Initiative (ADI). This grant provides up to
$300,000 co-funding for an approved program of works at Tarcoola, the majority of which has now been
completed.
The Company also announced during the year (on 15 June 2022) that it received a further $595,000 in
grant funding awards from the South Australian Government under Round 3 of the ADI. The three grants
awarded under Round 3 of the ADI provide up to $595,000 co-funding for approved programs of works
at Tarcoola and Tunkillia. Funding agreements for these three grants were executed shortly after the
end of the 2022 financial year, during July 2022.
Additionally, on 7 December 2021 the Company announced that it had been awarded up to $80,000 in
grant funding support under the South Australian Landing Pad (SALP) program for the purpose of
establishing a new Adelaide-based corporate headquarters. This resulted in the Company opening a
new Adelaide-based corporate headquarters shortly after the end of the 2022 financial year, on 14 July
2022 (see ‘Matters Subsequent’, below).
The benefits to the Company of Rounds 2 and 3 of the ADI, and the SALP program, amount to a total
of [up to] $975,000 in Government co-funding awarded for the Company’s exploration and corporate
initiatives.
On 21 March 2022 the Company announced the signing of terms of SensOre for an exclusive R&D
partnership under which the Company would contribute up to $395,000 co-funding for SensOre’s
adaptation of its ‘Discriminant Predictive Targeting’ (DPT) artificial intelligence (AI) and machine
learning (ML) module to the terrain of the Central Gawler Craton, and would be entitled to a ten (10)
year exclusive use of the south Australian DPT module for gold and copper targeting within a 60,000km2
area of the Central Gawler Craton surrounding the Company’s projects.
Financially, the Company ended the 2022 financial year with the announcement of more than $1.7
million in revenues realised during June 2022, via the $737,500 (excluding GST) sale of a minority
portion of its surplus Central Gawler Camp assets and a $1 million payment for the sale of gold materials
to ABC Bullion (announced on 28 and 30 June 2022, respectively). This resulted in the Company
reporting a cash positive period for the quarter ended 30 June 2022 and closing the 2022 financial year
with a substantial treasury balance of $11.2 million cash.
Finally, the 2022 financial year also saw the Company execute a considerable corporate evolution at
the Board, Management and operational levels in line with its objectives to develop a unique South
Australian identity on the ASX, fully commit its focus to developing a new South Australian gold district
and become the state’s leading independent gold producer. The Company recruited Mr Marc Twining
as its new Exploration Manager (November 2022), Mr Ian Garsed as its new Principal Geologist
(January 2022), Mr Nicholas Byrne as its new Chief Financial Officer (January 2022) and Mr Kenneth
Williams as its new Non-Executive Chairman Elect (May 2022). Mr Williams assumed the role of
Chairman from 1 July 2022. The Company’s new team members are all highly experienced South
6
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Australian mining industry specialists and are all based in South Australia at the Company’s new
corporate headquarters, providing the Company with a strong base of operational experience, and
presence, in South Australia
Matters Subsequent to the End of the Reporting Period
Exploration
On 25 July 2022 the Company announced multiple high-grade drilling assays that infilled the
Perseverance West gold zone adjacent to the Perseverance West open pit mine (Tarcoola), confirming
strike and depth extensions of the southern end of the open pit. Subsequently, on 22 August 2022, the
Company announced that assays from a further three step-out drill holes had extended this
Perseverance West gold zone by a further ~50m.
On 5 September 2022 the Company announced the results of its May / June 2022 drilling program at
Tunkillia, confirming another new gold zone at the Area 51 prospect comprising 500 metres mineralised
strike and significantly expanding the mineral footprint of Tunkillia.
Shortly thereafter, on 7 September 2022 the Company announced the start of a follow up drilling
program at Tunkillia, targeting approximately 9,000 metres RC drilling intended to support a JORC
(2012) Mineral Resources Estimate update for the project.
Corporate
On 14 July 2022, the Company announced that it had changed its registered office and principal place
of business to the address of its new Adelaide headquarters, being Level 4, 12 Gilles Street, Adelaide
SA 5000, Australia.
During August 2022 the Company also welcomed Mr David Wilson, another highly experienced South
Australian mining professional, as its new General Manager of Projects to lead Barton’s ongoing asset
realisation initiatives.
No other matters or circumstance has arisen since 30 June 2022 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs
in future financial years.
Environmental Regulation
The Group's operations are subject to significant environmental regulation under both Commonwealth
and relevant State legislation in relation to the discharge of hazardous waste and materials arising from
any exploration or mining activities and development conducted by the Group on any of its tenements.
Subject to ongoing rehabilitation, the Group believes it has complied with all environmental obligations.
Heritage and Community Relations
The Company recognises the importance of establishing relationships with the Traditional Owners that
are based on trust and mutual advantage and are respectful of the needs and concerns of the
communities located within the regions in which it operates. The Company has agreements in place
with the Traditional Owners and is committed to building strong relationships by:
Improving cross-cultural awareness through training and education;
• Being open and transparent in its communications;
•
• Developing community relations management procedures that include business alliances;
• Being sensitive to the values and heritage issues of the local communities; and
• Being a good neighbour.
Significant Changes in the State of Affairs
Other than noted above, in the opinion of the Directors, there were no significant changes in the state
of affairs of the Company that occurred during the financial year under review.
Likely Developments and Expected Results from Operations
The Group will continue to explore and develop its Challenger, Tarcoola and Tunkillia projects.
7
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Information on Directors
Kenneth Williams
(appointed 01 May 2022)
Independent Non-Executive Chair (elected 01 July 2022)
Independent Non-Executive Director (appointed 01 May 2022)
Qualifications
Experience
Relevant interest in Barton
Shares, Convertible Notes
and Options at the date of
this report
Special responsibilities
Directorships held in other
ASX listed entities in the last
three years
Alexander Scanlon
Qualifications
Experience
BEc (Hons), MAppFin, FAICD
Mr Williams has over 20 years’ experience as a resource exploration
company Director including 9 years as Director and Chair of AWE
Limited (ASX:AWE). From 1999 to 2003 Ken was the Group
Treasurer, then CFO, and then Group Finance Executive for
Normandy Mining (subsequently Newmont Australia). He was Chair
of Statewide Super until April 2022, is a non-executive director of
Archer Materials Ltd (ASX:AXE) and Deputy Chancellor of the
University of Adelaide.
Nil
Chair of Audit and Risk Committee from 01 May until 30 June
2022. Member of Nomination and Remuneration Committee from
01 July 2022
Non-executive Director – Archer Minerals Ltd (ASX.AXE) -
September 2020 to current
Non-executive Director and Chair - Lanyon Investment Company
Ltd (ASX.LAN) – April 2021 to May 2022
Managing Director & Chief Executive Officer
BSc Finance (Hons) and BSc Economics (Hons), MSc Financial
Economics, MPhil Management
finance and mining advisory,
Mr Scanlon is a financial economist with over 15 years’ experience
in structured
investment and
management including as founder or co-founder of multiple global
resources projects. Previously Managing Director of PARQ Capital,
a Director with Lusona Capital, Business Development Manager at
Sirius Minerals PLC and an Executive in the Principal Investments
Area at Barclays Capital.
Relevant interest in Barton
Shares, Convertible Notes
and Options at the date of
this report
43,681,459 fully paid ordinary shares
3,000,000 unlisted options, exercisable at $0.375 per share,
expiry 15 March 2025
1,280,000 unlisted options, exercisable at $0.00 per share,
expiry 30 June 2026
Directorships held in other
ASX listed entities in the last
three years
Nil
8
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Christian Paech
Independent Non-Executive Director
Qualifications
Experience
Relevant interest in Barton
Shares, Convertible Notes
and Options at the date of
this report
Special responsibilities
Directorships held in other
ASX listed entities in the last
three years
Neil Rose
Qualifications
Experience
Relevant interest in Barton
Shares, Convertible Notes
and Options at the date of
this report
Special responsibilities
LLB (Hons), BCom (Accounting), GCLP, GAICD
Mr Paech is a highly regarded corporate advisor with over +25 years
of experience in corporate law, M&A, litigation, risk, governance and
major corporate transactions. He was a member of the Senior
Leadership Team at ASX-Listed Santos Limited where he was
General Counsel from 2010 - 2019 and Company Secretary from
2017 - 2019. Based in Adelaide, Christian was a key advisor to the
Santos Board on a wide range of transactions, joint ventures,
Government policy and engagement, audit,
risk
management and ASX disclosure obligations.
litigation,
101,017 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 per share, expiry 15
March 2025
Chair of the Nomination and Remuneration Committee and member
of the Audit and Risk Committee from 01 July 2022.
Non-executive Director – AXP Energy Limited (ASX.AXP) –
January 2022 to current
Non-Executive Director
BCom Finance and Accounting, CA
Mr Rose is a chartered accountant with a background in the
commercial property and resource sectors being involved in project
identification, financing and development.
13,964,234 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 per share,
expiry 15 March 2025
Member of Nomination and Remuneration Committee and Audit and
Risk Committee
Directorships held in other
ASX listed entities in the last
three years
Nil
Graham Arvidson
Qualifications
Experience
Interest in Barton Shares,
Convertible Notes and
Options at the date of this
report
Special responsibilities
Independent Non-Executive Director
BSc (Mech Eng), MBA, MSc (Mineral Economics), MAusIMM
CPMet, MIEAust CPEng, GAICD, PMI (PMP)
Mr Arvidson is an experienced resource industry executive with a
background in operations, mineral economics, project management,
and mineral processing excellence. He has held key leadership roles
developing and operating mineral assets globally across a broad
range of commodities. His 18 years in the resource industry spans
DD, feasibility, development, and operations
172,177 fully paid ordinary shares
500,000 unlisted options, exercisable at $0.375 per share,
expiry 15 March 2025
Member of Nomination and Remuneration Committee until 30 June
2022. Chair of Audit and Risk Committee from 01 July 2022.
Directorships held in other
ASX listed entities in the last
three years
Nil
9
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Former Independent Non-Executive Chair
BBus, ECU, MAICD, AIMM, Member of SME
Mr Connelly is a senior resources executive with over 30 years'
experience and a particular focus in the gold sector, holding senior
roles with Newmont Mining, Inmet Mining and as COO of Endeavour
Mining. Mark was the Managing Director of ASX-listed Papillon
Resources prior to its 2014 USD $570m merger with B2Gold. He
was also the key proponent responsible for the 2011 USD $590m
merger of Adamus Resources Limited and Endeavour Mining.
Not applicable as no longer a director
Mark Connelly
(resigned 30 June 2022)
Qualifications
Experience
Relevant interest in Barton
Shares, Convertible Notes
and Options at the date of
this report
Special responsibilities
Former Member of Audit and Risk Committee until 30 June 2022.
Directorships held in other
ASX listed entities in the last
three years
Non-executive Chair of Calidus Resources Limited (since February
2018), Chesser Resources Limited (since July 2020) and Oklo
Resources Limited (since July 2019).
Previously Non-executive Director of Tao Commodities Ltd (April
2018 to February 2021), Primero Group Limited (July 2018 to
February 2021), West African Resources Ltd (September 2015 to
May 2020).
Independent Non-Executive Director
BSc Geology, Dip App Finance, Fellow FINSIA, MAusIMM, MAICD
Mr Crookes is a geologist with +30 years’ experience in global
resources development, operations, and investment including as
Chief Geologist and Mine Manager of Ernest Henry Mining (now
Glencore), Executive Director of Macquarie’s Metals Energy Capital
(MEC) Division and founding Investment Committee member and
Investment Director of EMR Capital focused on deal origination.
Not applicable as no longer a director
Richard Crookes (resigned
01 May 2022)
Qualifications
Experience
Interest in Barton Shares,
Convertible Notes and
Options at the date of this
report
Special responsibilities
Former Chair of the Audit and Risk Committee until 01 May 2022.
Directorships held in other
ASX listed entities in the last
three years
Non-executive Chairman of Highfield Resources Limited (since May
2013 to April 2022), Black Rock Mining Limited (since October 2017)
and Lithium Power International Limited (since November 2018).
Shannon Coates
Company Secretary
Qualifications
Experience
LLB, BA (Jur), GAICD, GIA
Ms Coates is a qualified lawyer and Chartered Secretary with over
20 years’ experience in corporate law and compliance. Ms Coates is
currently Managing Director of Evolution Corporate Services, a
boutique corporate advisory firm providing company secretarial and
corporate advisory support to boards and various committees across
a variety of
resources, oil and gas,
including
manufacturing and technology.
industries
10
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Meeting of Directors
The number of meetings of the Company's Board of Directors (the Board) and of each Board committee
held during the financial year ended 30 June 2022, and the number of meetings attended by each
director was:
Full Board of
Directors
Audit and Risk
Committee
Nominations and
Remuneration
Committee
Mark Connelly
Alexander Scanlon
Christian Paech
Graham Arvidson
Neil Rose
Richard Crookes
Kenneth Williams
8
8
8
8
8
7
1
8
8
8
8
8
6
1, Note 3
Attended Eligible
Eligible
to
Attend
to
Attend
3
Note 2
Note 2
Note 2
3
2
1
Attended Eligible
to Attend
Attended
2
3
3
3
3
2
1
Note 1
Note 1
3
3
3
Note 1
Note 1
2
2
3
3
3
2
1
1 = Messrs Connelly, Scanlon, Crookes and Williams attended the Nomination and Remuneration Committee meeting by
invitation.
2 = Messrs Scanlon, Arvidson and Paech attended the Audit and Risk Committee meeting by invitation.
3 = Messer Williams attended the 27 April 2022 board meeting as an invitee.
Remuneration Report (audited)
The remuneration report details the Key Management Personnel (KMP) remuneration arrangements
for the consolidated entity in accordance with the requirements of the Corporations Act 2001 and its
Regulations.
KMP are those persons having authority and responsibility for planning, directing and controlling the
major activities of the Company and the Group, directly or indirectly, including all directors.
Remuneration Governance
The Nomination and Remuneration Committee is a sub-committee of the Board. It is primarily
responsible for making recommendations and assisting the Board to:
• ensure that it is of an effective composition, size and commitment to adequately discharge its
•
responsibilities and duties;
independently ensure that the Company adopts and complies with remuneration policies that
attract, retain and motivate high calibre executives and Directors to encourage enhanced
performance by the Company; and
• motivate Directors and management to pursue the long-term growth and success of the
Company within an appropriate framework.
Use of Remuneration Consultants
The Nomination and Remuneration Committee will seek advice from independent remuneration
specialists to review its remuneration policy, benchmarking remuneration and incentive structures from
time to time. All engagements will report directly to the Nominations and Remuneration Committee and
the consultants are required to confirm in writing, their independence from the Company’s senior
management and other executives. Consequently, the Board of Directors is able to satisfy themselves
that the advice was made free from undue influence from any member of the KMP.
Non-Executive Directors Remuneration Policy
The Company’s policy is to remunerate Non-Executive Directors a fixed fee reflecting their time
commitment and responsibilities. Fees provided to Non-Executive Directors are inclusive of
superannuation and salary sacrifice, if applicable.
Fees are reviewed annually by the Board's Nomination and Remuneration Committee considering
comparable roles and market data, which may be sought from an independent remuneration adviser.
During the financial year ended the 30 June 2022, The Reward Practice was engaged to provide
independent benchmarking and evaluation of the Company’s non-executive remuneration against its
peers and guidance on appropriate non-executive remuneration on structures, including the potential
for equity. The fees paid to date to The Reward Practice for this advice were $5,000.
11
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Non-Executive Directors fees are determined within an aggregate Directors' fee pool limit, which is
periodically recommended for approval by shareholders. The maximum currently stands at $500,000
per rolling 12-month period and was approved by shareholders on 18 December 2020. The Board may
apportion any amount up to this maximum amount amongst the Non-Executive Directors as it
determines. Directors are also entitled to be paid reasonable travel, accommodation and other
expenses incurred in performing their duties as Directors.
From time to time, the Company may grant options or other equity-based incentives to Non-Executive
Directors, subject to obtaining the relevant shareholder approvals. The grant of options or other equity-
based incentives is designed to attract and retain suitably qualified Non-Executive Directors. Options
or other equity-based incentives issued to Non-Executive Directors will not have any performance
hurdles in accordance with the ASX Corporate Governance Principles and Recommendations,
recognising that this may lead to bias in their decision-making and compromise their objectivity.
Executive Remuneration Policy and Framework
Executive remuneration consists of Total Fixed Remuneration (TFR), comprising base salary and
superannuation, short-term incentives (STI’s), which may include performance based equity incentives
and/or a cash bonus, and long-term incentives (LTI’s), which may include options or other performance
based equity incentives such as performance rights, granted at the discretion of the Board on the
recommendation of the Nomination and Remuneration Committee and subject to obtaining relevant
shareholder approvals.
Total remuneration packages are designed to achieve the following objectives:
• Attracting and retaining key executives at important stages in the Company’s progress and
development and ensuring that all executive remuneration is directly and transparently linked
with strategy, risk management and performance;
• Aligning STI’s and LTI’s with the achievement of the Company’s short-term and long-term
strategic objectives and longer-term shareholder return;
• Setting performance targets and rewarding performance for successful exploration, appraisal,
development and operations in a way that is sustainable, including in respect of health and
safety, environment and community-based objectives;
• Ensuring all equity-based instruments issued to executives are performance based in
accordance with recommended ASX Corporate Governance Principles and Recommendations;
• Ensuring effective benchmarking of total remuneration for executives in accordance with market
practices and against a comparable and clearly defined peer group to ensure remuneration is
fair and competitive including TFR as well as STI’s and LTI’s;
• Rewarding the achievement of individual and group performance objectives thus promoting a
balance of individual performance and teamwork across the executive management team;
• Preserving cash where necessary and appropriate for exploration and project development;
• Subject to shareholder approvals, ensuring the pool of Directors fees available to non-executive
Directors is adequate to attract high calibre Directors and to improve board diversity and
performance; and
• Promoting independence and impartial decision making by the non-executive Directors.
Total Fixed Remuneration
Executives are offered a competitive level of TFR at market rates (for comparable peer companies),
which are reviewed annually to ensure market competitiveness.
Short-Term Incentives
Senior executives will have an STI component included in their remuneration package representing a
meaningful “at risk” short-term incentive payment. The payment will be “at risk” in that it will only be
payable if a set of clearly defined and measurable performance metrics or Key Performance Indicators
(KPIs) have been met in the applicable performance period. The KPIs may include a combination of
Company KPIs and Individual KPIs. The Board will set KPIs based on metrics that are measurable,
transparent, and achievable, designed to motivate and incentivise the recipient to achieve high
performance, and are aligned with the Company’s short term objectives and shareholder value creation.
The STI, if achieved, will be paid annually in either cash or equity (or a combination thereof) depending
on the eligible employee’s employment contract. STI opportunities will vary from employee to employee
depending on role and responsibility and will be set out in the employee’s employment contract. The
STI opportunity for:
the Managing Director will be up to 40% of TFR
•
• KMPs that report to the Managing Director will be up to 30% of TFR
• Other Senior Executives up to 20% of TFR
12
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
The above STI opportunity thresholds are subject to the annual review of the Board of Directors. KPIs
will be set annually as part of the Annual Business Planning Cycle and are targeted to be finalised no
later than the 31 July of each financial year as follows:
• KPIs for the Company and Managing Director are set and approved by the Board;
• KPIs for Senior executives are set by the Managing Director and approved by the Board
• KPIs will be reviewed by the Board and Executive Committee to ensure that hurdles are
objectively measurable and aligned with Company strategy.
• KPI achievement may be subject to ‘gateway’ tests as itemised for a particular KPI (for example,
irrespective of performance, a safety KPI will not be deemed achieved in the event that the
Company experiences a fatality).
KPI targets and stretch targets will generally be aligned with the Company’s strategic plan and may
include HSE metrics, financial metrics, delivery of projects and growth initiatives, sustainability initiatives
and improvements to Company systems and processes. KPI targets are not the same as budget
targets. Philosophically, employees are paid their TFR for delivering budget performance and are paid
“at risk” compensation for delivering better than budget performance. Stretch performance should be a
level beyond this. Targets and stretch targets will be developed as part of the annual business planning
cycle. The Board is responsible for the determination of whether the KPI targets or stretch targets have
been achieved and how much of the STI will be payable for each performance period. In making such
a determination it may obtain external expert advice.
Long-Term Incentives
Subject to Board discretion, the Company’s philosophy is to include an appropriately sized “at risk”
performance based long-term equity incentive (LTI) as a component of total remuneration. The LTI is
“at risk” given that performance targets as set by the Board must be met prior to vesting. These targets
must be based on metrics that are measurable, transparent, and achievable, designed to motivate and
incentivise the recipient to achieve high performance, and are aligned with Company objectives and
long-term shareholder value creation.
The value of LTI awarded will vary depending on the particular executive role and responsibilities. The
LTI opportunity for:
the Managing Director will be up to 100% of TFR
•
• KMPs that report to the Managing Director will be up to 70% of TFR
• Other senior executives up to 40% of TFR
LTI will consist of the offer of equity incentives, such as performance rights or options which will be
subject to certain conditions as set out in the Offer Letter. Any performance LTI will vest in accordance
with conditions set out in the Offer Letter, which are approved by the Board in accordance with
applicable plan rules. Performance rights/options are generally determined after a measurement period
or set by the Board of Directors and are subject to the Company’s long-term performance relative to
performance measures. The Board is responsible for the determination of whether and how much of
the LTIs vest in accordance with the applicable plan’s rules. In making such a determination it may
obtain external expert advice.
Participants in the LTI plan, including executive directors and other senior executives, are prohibited
(without approval from the Chair) from entering into transactions (whether through the use of derivatives
or otherwise) which limit the economic risk of participating in the scheme.
Details of remuneration
Amounts of remuneration
Details of the remuneration of key management personnel of the Company are set out in the following
tables.
The key management personnel of the Company during the financial year consisted of the following
directors:
• Mark Connelly - Former Independent Non-Executive Chair (resigned 30 June 2022)
• Kenneth Williams - Independent Non-Executive Director (appointed 01 May 2022) and elected
to Independent Non-Executive Chair (01 July 2022)
• Alexander Scanlon - Managing Director & Chief Executive Officer
• Christian Paech - Independent Non-Executive Director
• Graham Arvidson - Independent Non-Executive Director
• Neil Rose - Non-Executive Director
• Richard Crookes - Former Independent Non-Executive Director (resigned 01 May 2022)
13
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
And the following management persons:
• Marc Twining - Exploration Manager (appointed 15 November 2021)
• Nicholas Byrne - Chief Financial Officer (appointed 17 January 2022)
2022
Salary and
Fees
$
Super-
annuation
$
STI
$
Share-based
payments
$
Total
$
81,818
54,545
54,545
Non-Executive Directors
Mark Connelly
(Chairman)
Christian Paech
Graham
Arvidson
Neil Rose
Richard
Crookes1
Kenneth
Williams2
Executive Director
Alexander
Scanlon
Other Key Management Personnel
Marc Twining3
Nicholas Byrne4
125,757
62,587
54,545
45,455
296,276
13,636
Total
789,166
1 Remuneration from 01 July 2021 to 01 May 2022
2 Remuneration from 01 May 2022 to 30 June 2022
3 Remuneration from 15 November 2021 to 30 June 2022
4 Remuneration from 17 January 2022 to 30 June 2022
8,182
5,455
5,455
5,455
4,545
1,364
23,724
12,576
6,259
73,013
2021
Salary and
Fees1
Super-
annuation1
$
$
41,065
43,495
54,774
54,774
35,654
3,935
4,155
5,226
5,226
3,410
Non-Executive Directors
Mark Connelly
(Chairman)
Christian Paech
Graham Arvidson
Neil Rose
Richard Crookes
Executive Director
Alexander
Scanlon
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
STI
$
-
-
-
-
-
-
90,000
60,000
60,000
60,000
50,000
15,000
49,985
369,985
11,424
5,627
149,757
74,473
67,036
929,215
Share-
based
payments
$
Total
$
99,231
144,231
66,154
66,154
66,154
66,154
113,804
126,154
126,154
105,218
298,306
21,694
96,000
396,923
812,923
Total
528,068
43,646
96,000
760,770
1,428,484
1 Includes amounts paid from wholly owned subsidiaries.
14
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Service agreements
Remuneration and other terms of employment for key management personnel are formalised in a
Senior Executive Employment Contract. Details of these agreements are as follows:
Name
Title
Alexander
Scanlon
Managing
Director and
Chief Executive
Officer
Marc Twining Exploration
Manager
Nicholas
Byrne
Chief Financial
Officer
Fixed
Remuneration
$320,000 pa
inclusive of
superannuation
$220,000 pa
inclusive of
superannuation
$150,000 pa
inclusive of
superannuation
Variable
Remuneration
STI - Up to 40% of
Fixed Remuneration
LTI – Up to 100% of
Fixed Remuneration
STI - Up to 30% of
Fixed Remuneration
LTI – Up to 70% of
Fixed Remuneration
STI - Up to 30% of
Fixed Remuneration
LTI – Up to 70% of
Fixed Remuneration
Notice Period
Requires a period of
3 months-notice by
Company and
Employee
Requires a period of
1 months-notice by
Company and
Employee
Requires a period of
1 months-notice by
Company and
Employee
Key management personnel have no entitlement to termination payments in the event of removal for
misconduct.
Share-based payments
As outlined above, Directors may be eligible to participate in equity-based compensation schemes.
Options on issue
Options granted carry no dividend or voting rights. The terms and conditions of each grant of options
over ordinary shares affecting the remuneration of directors and other key management personnel in
this financial year or future reporting years are as follows:
Name
Grant date
Number
of options
granted
Vesting and
exercisable
date
Expiry date
Exercise
price
Alexander Scanlon1
960,000 05-Nov-2021 30-Jun-2024 30-Jun-2026
Alexander Scanlon2
320,000 05-Nov-2021 30-Jun-2024 30-Jun-2026
Marc Twining1
287,328 24-Mar-2022 30-Jun-2024 30-Jun-2026
Marc Twining2
95,776 24-Mar-2022 30-Jun-2024 30-Jun-2026
Nicholas Byrne1
141,537 24-Mar-2022 30-Jun-2024 30-Jun-2026
Nicholas Byrne2
47,179 24-Mar-2022 30-Jun-2024 30-Jun-2026
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Fair value
per option
at grant
date
$0.17
$0.128
$0.265
$0.214
$0.265
$0.214
1,2 These options will vest on satisfaction of specific performance conditions based on both market and non-market conditions.
1 The option tranche is a non-market based performance target and the fair value is measured as the share price at grant date.
2 The option tranche is market-based condition as a measure of Total Shareholder Return (TSR). The performance condition is
measured in relative terms against a defined peer group of companies approved by the Board. The fair value of these options is
estimated using Monte Carlo simulation valuation model at grant date. The Monte Carlo simulates the Company’s share price
and depending on the criteria arrives at a value based on the number of options that are likely to vest. Volatility is based on the
share price volatility of the Company and the peer group of companies
All options were granted over unissued fully paid ordinary shares in the company. Any option not
exercised before the expiry date will lapse on the expiry date. There are no participating rights or
entitlements inherent in the options and the holders will not be entitled to participate in new issues of
capital offered to shareholders during the currency of the options. All shares allotted upon the exercise
of options will rank pari passu in all respects with the Company’s fully paid ordinary shares. There has
not been any alteration to the terms or conditions of the grant since the grant date. There are no
amounts paid or payable by the recipient in relation to the granting of such options other than on their
potential exercise.
15
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Additional information
Company Performance
The following table shows the performance of the Group over the past two years based on several
key indicators:
Basic and diluted loss per share
Net loss before tax
Closing share price
Closing market capitalisation
Financial year ended 30 June
2022
2021
(2.337)
(4,105)
$0.19
$33,367
(4.126)
(7,730)
$0.20
$35,123
cents
$’000
$
$’000
Additional disclosures relating to key management personnel
Shareholding
The number of shares in the company held during the financial year by each director and other members
of key management personnel of the consolidated entity, including their personally related parties, is
set out below:
Name
Mark Connelly
Alexander Scanlon
Christian Paech
Neil Rose
Graham Arvidson
Richard Crookes
Total
Held at
30 June
2021
100,000
43,611,459
101,017
13,964,234
172,177
100,000
58,048,887
Received as
part of
compensation
-
-
-
-
-
-
-
Additions
Disposals/
other
-
70,000
-
-
-
-
70,000
Held at
30 June
2022
100,000
43,681,459
101,017
13,964,234
172,177
100,000
58,118,887
-
-
-
-
-
-
-
Option holding
The number of options over ordinary shares in the company held during the financial year by each
director and other members of key management personnel of the consolidated entity, including their
personally related parties, is set out below:
Name
Mark Connelly
Alexander
Scanlon
Christian Paech
Graham
Arvidson
Neil Rose
Richard
Crookes
Marc Twining
Nicholas Byrne
Total
Opening
balance
Granted
Exercised
Expired/
forfeited/
other
750,000
3,000,000
-
1,280,000
500,000
500,000
500,000
500,000
-
-
-
-
-
-
5,750,000
383,104
188,716
1,851,820
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Closing
balance
Vested
750,000
750,000
4,280,000 3,000,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
383,104
188,716
-
-
7,601,820 5,750,000
16
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Other transactions with key management personnel and their related parties
A subsidiary is a party to a private royalty agreement with Australis Royalties Pty Ltd. Mr Scanlon is a
director and entities associated with Messrs Scanlon and Rose hold relevant interests in the private
royalty. Royalties are payable in respect of the production of certain minerals (in raw or processed form)
based upon a fixed percentage of the amount of product produced. No royalties paid or payable in the
year ended 30 June 2022 (2021: nil).
During the financial year, payments for accounting services from Straightline Group Pty Ltd (a director-
related entity of Neil Rose) of $15,318 were made. All transactions were made on normal commercial
terms and conditions and at market rates. The services were discontinued from 01 April 2022.
In the prior year ended 30 June 2021, an entity associated with Mr Paech subscribed to convertible 200
notes issued by the Company. Mr Arvidson subscribed for 100 notes. The notes were issued at $100
each and were automatically converted into fully paid ordinary shares on the Company’s Initial Public
Offering on the Australian Securities Exchange. The conversion price of the notes was based on a 20%
discount to the IPO price.
Interest was payable on the convertible notes at a rate of:
a)
b)
c)
0% per annum from the issue date to 31 March 2021;
5% per annum from 1 April 2021 to 31 July 2021; and
10% per annum from 1 August 2021 to maturity date.
The effective interest rate of the convertible notes is 48% which was derived by exactly discounting the
estimated cash outflow at maturity to its fair value.
There were no other transactions with KMPs or related parties during the year.
This concludes the remuneration report, which has been audited.
Shares under option
Unissued ordinary shares of Barton Gold Holdings Limited under option at the date of this report are
as follows:
Grant date
Expiry
15 March 2021
18 June 2021
18 June 2021
05 November 2021
24 March 2022
Total
15 March 2025
18 June 2024
18 June 2024
30 June 2026
30 June 2026
Exercise
Price $
$0.375
$0.3125
$0.375
$0.00
$0.00
Amount
6,500,000
1,500,000
1,500,000
1,280,000
710,080
11,490,080
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their
capacity as a director or executive, for which they may be held personally liable, except where there is
a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors
and executives of the Company against a liability to the extent permitted by the Corporations Act
2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
Indemnity and insurance of auditor
The company has not, during or since the end of the financial year, indemnified or agreed to
indemnify the auditor of the company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the
auditor of the company or any related entity.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a
party for the purpose of taking responsibility on behalf of the Company for all or part of those
proceedings.
17
Barton Gold Holdings Limited
Directors’ Report
30 June 2022
Non-audit services
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial
year by the auditor are outlined in note 21 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the
auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 21 to the financial statements do
not compromise the external auditor's independence requirements of the Corporations Act 2001 for the
following reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting
Professional and Ethical Standards Board, including reviewing or auditing the auditor's own
work, acting in a management or decision-making capacity for the company, acting as an
advocate for the company or jointly sharing economic risks and rewards.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been
rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in
certain cases, the nearest dollar.
Auditor's independence declaration
A copy of the auditor's independence declaration as required under section 307C of the Corporations
Act 2001 is set out immediately after this directors' report.
Auditor
BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act
2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
Alexander Scanlon
Managing Director
23 September 2022
Adelaide, South Australia
18
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF BARTON GOLD
HOLDINGS LIMITED
As lead auditor of Barton Gold Holdings Limited for the year ended 30 June 2022, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Barton Gold Holdings Limited and the entities it controlled during the
period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 23 September 2022
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
19
Barton Gold Holdings Limited
Contents
30 June 2022
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors' declaration
Independent auditor's report to the members of Barton Gold Holdings Limited
Additional information
General information
21
22
23
24
25
46
47
51
The financial statements cover Barton Gold Holdings Limited as a consolidated entity consisting of the
entities it controlled at the end of, or during, the year. The financial statements are presented in
Australian dollars, which is Barton Gold Holdings Limited’s functional and presentation currency.
Barton Gold Holdings Limited is a listed public company limited by shares, incorporated and domiciled
in Australia. Its registered office and principal place of business are:
Registered office
Level 4
12 Gilles Street
Adelaide SA 5000
Principal place of business
Level 4
12 Gilles Street
Adelaide SA 5000
A description of the nature of the consolidated entity's operations and its principal activities are included
in the directors' report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on
23 September 2022. The directors have the power to amend and reissue the financial statements.
20
Barton Gold Holdings Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2022
Consolidated
Note
30 June 2022
$’000
30 June 2021
$’000
4
5
5
6
Other income
Expenses
Exploration expenditure
Administrative and other expenses
Care and maintenance expenditure
Finance expense
Loss before income tax expense
Income tax expense
Loss after income tax expense for the year
Items that may be reclassified to profit or loss:
Other comprehensive income
Other comprehensive loss for the year
attributable to owners of the Company
2,430
12
(4,366)
(1,783)
(193)
(193)
(4,105)
-
(4,105)
-
(4,105)
(3,218)
(3,600)
(166)
(758)
(7,730)
(3)
(7,733)
-
(7,733)
Loss per share attributable to ordinary
equity holders:
Basic and diluted loss per share
Cents
Cents
31
(2.337)
(4.126)
The above consolidated statement of profit or loss and other comprehensive income should be read in
conjunction with the accompanying notes.
21
Barton Gold Holdings Limited
Statement of financial position
As at 30 June 2022
Consolidated
Note
30 June 2022
$’000
30 June 2021
$’000
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Other receivables
Exploration and evaluation expenditure
Plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Employee Benefits
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
7
8
9
10
11
12
13
14
15
15
16
17
18
11,200
427
155
11,782
4,495
9,262
394
14,151
14,891
81
100
15,072
4,445
9,262
403
14,110
25,933
29,182
328
69
176
573
502
27
686
1,215
15,091
15,091
13,694
13,694
15,664
14,909
10,269
14,273
23,540
1,281
(14,552)
10,269
23,510
1,210
(10,447)
14,273
The above consolidated statement of financial position should be read in conjunction with the
accompanying notes.
.
22
Barton Gold Holdings Limited
Statement of changes in equity
For the year ended 30 June 2022
Consolidated
$’000
$’000
$’000
$’000
Issued capital Reserves
Accumulated
losses
Total equity
Balance at 1 July 2020
Loss after income tax for the
year
Total comprehensive loss for
the year
Transactions with owners in
their capacity as owners:
Contributions of equity, net of
costs
Share-based payments
Balance as at 30 June 2021
4,741
-
-
18,769
-
23,510
-
-
-
-
1,210
1,210
(2,714)
(7,733)
2,027
(7,733)
(7,733)
(7,733)
-
-
(10,447)
18,769
1,210
14,273
Consolidated
Issued capital
Reserves
$’000
$’000
Accumulated
losses
$’000
Balance at 1 July 2021
Loss after income tax for the
year
Total comprehensive loss for
the year
Transactions with owners in
their capacity as owners:
Contributions of equity, net of
costs
Share-based payments
23,510
-
-
30
-
Balance as at 30 June 2022
23,540
Total equity
$’000
14,273
(4,105)
1,210
-
(10,447)
(4,105)
-
-
71
1,281
(4,105)
(4,105)
-
-
30
71
(14,552)
10,269
The above consolidated statement of changes in equity should be read in conjunction with the
accompanying notes.
23
Barton Gold Holdings Limited
Statement of cash flows
For the year ended 30 June 2022
Consolidated
Note
30 June 2022
$’000
30 June 2021
$’000
Cash flows from operating activities
Receipts from customers
Payments for exploration and evaluation
expenditure
Payments to suppliers and employees
Interest received and other finance costs (paid)
Income tax paid
Net cash (outflow) from operating activities
29
Cash flows from investing activities
Payments for property, plant and equipment
Payments for security deposits
Proceeds from sale of property, plant and
equipment
Net cash inflow/(outflow) from investing
activities
Cash flows from financing activities
Proceeds from issues of shares, net of costs
Proceeds from borrowings
Net cash inflow/(outflow) from financing
activities
16
1,274
(3,672)
(1,970)
1
-
(4,367)
(12)
(50)
738
676
-
-
-
-
(3,028)
(2,218)
(10)
(3)
(5,259)
-
-
243
243
15,699
2,435
18,134
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of
the financial year
Cash and cash equivalents at the end of the
year
(3,691)
13,118
14,891
1,773
7
11,200
14,891
The above consolidated statement of cash flows should be read in conjunction with the accompanying
notes.
24
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 1. Significant accounting policies
The principal accounting policies adopted in the preparation of the financial statements are set out
below. These policies have been consistently applied to all the years presented unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for
the current reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been
early adopted.
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial
statements also comply with International Financial Reporting Standards as issued by the International
Accounting Standards Board ('IASB').
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial
assets at fair value through other comprehensive income, investment properties, certain classes of
property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the consolidated entity's
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
consolidated entity only. Supplementary information about the parent entity is disclosed in note 25
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Barton
Gold Holdings Limited (Company or Parent Entity) as at 30 June 2022 and the results of all
subsidiaries for the year then ended. Barton Gold Holdings Limited and its subsidiaries together are
referred to in these financial statements as the 'consolidated entity'.
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity
controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the
activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred
to the consolidated entity. They are de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the
consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction
provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have
been changed where necessary to ensure consistency with the policies adopted by the consolidated
entity.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change
in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to the parent.
Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement
of profit or loss and other comprehensive income, statement of financial position and statement of
changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed
to the non-controlling interest in full, even if that results in a deficit balance.
Where the consolidated entity loses control over a subsidiary, it derecognises the assets including
goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation
differences recognised in equity. The consolidated entity recognises the fair value of the consideration
received and the fair value of any investment retained together with any gain or loss in profit or loss.
25
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Operating segments
Operating segments are presented using the 'management approach', where the information presented
is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM').
The CODM is responsible for the allocation of resources to operating segments and assessing their
performance.
Foreign currency translation
The financial statements are presented in Australian dollars, which is Barton Gold Holdings Limited's
functional and presentation currency.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing
at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of
such transactions and from the translation at financial year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in profit or loss.
Revenue recognition
The consolidated entity recognises revenue as follows:
Sale of gold and other metals
Sale of gold and other metals is recognised at the point of sale, which is where the customer has taken
delivery of the goods, the risks and rewards are transferred to the customer and there is a valid sales
contract. Amounts disclosed as revenue are net of refinery sampling.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method
of calculating the amortised cost of a financial asset and allocating the interest income over the relevant
period using the effective interest rate, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Government grants
Government grants relating to costs are recognised in profit or loss when the Company has met the
requirements for claiming the grant.
Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income
based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax
assets and liabilities attributable to temporary differences, unused tax losses and the adjustment
recognised for prior periods, where applicable.
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to
be applied when the assets are recovered or liabilities are settled, based on those tax rates that are
enacted or substantively enacted, except for:
• When the deferred income tax asset or liability arises from the initial recognition of goodwill or
an asset or liability in a transaction that is not a business combination and that, at the time of
the transaction, affects neither the accounting nor taxable profits; or
• When the taxable temporary difference is associated with interests in subsidiaries, associates
or joint ventures, and the timing of the reversal can be controlled, and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if
it is probable that future taxable amounts will be available to utilise those temporary differences and
losses.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each
reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable
that future taxable profits will be available for the carrying amount to be recovered. Previously
unrecognised deferred tax assets are recognised to the extent that it is probable that there are future
taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset
current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities;
and they relate to the same taxable authority on either the same taxable entity or different taxable
entities which intend to settle simultaneously.
26
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Barton Gold Holdings Limited (the 'head entity') and its wholly owned Australian subsidiaries have
formed an income tax consolidated group under the tax consolidation regime. The head entity and each
subsidiary in the tax consolidated group continue to account for their own current and deferred tax
amounts. The tax consolidated group has applied the 'separate taxpayer within group' approach in
determining the appropriate amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax
liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits
assumed from each subsidiary in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are
recognised as amounts receivable from or payable to other entities in the tax consolidated group. The
tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit
of each tax consolidated group member, resulting in neither a contribution by the head entity to the
subsidiaries nor a distribution by the subsidiaries to the head entity.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-
current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or
consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of
trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months
after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the consolidated entity's
normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12
months after the reporting period; or there is no unconditional right to defer the settlement of the liability
for at least 12 months after the reporting period. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank
overdrafts, which are shown within borrowings in current liabilities on the statement of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method, less any allowance for expected credit losses. Trade receivables
are generally due for settlement within 30 days.
The consolidated entity has applied the simplified approach to measuring expected credit losses, which
uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have
been grouped based on days overdue.
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.
Inventories
Inventories are stated at the lower of cost and net realisable value on a 'first in first out' basis. Cost
comprises direct materials and delivery costs, direct labour, import duties and other taxes, an
appropriate proportion of variable and fixed overhead expenditure based on normal operating capacity.
Cost is determined on the following basis:
(a) Gold and other metals on hand is valued on an average total production cost method
(b) Ore stockpiles are valued at the average cost of mining and stockpiling the ore, including haulage
(c) A proportion of related depreciation and amortisation charge is included in the cost of inventory
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.
27
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Non-current assets classified as held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continued use. They are measured at the lower of their
carrying amount and fair value less costs of disposal.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest
and other expenses attributable to the liabilities of assets held for sale continue to be recognised.
Non-current assets classified as held for sale are presented separately on the face of the statement of
financial position, in current assets.
Joint ventures
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement. Investments in joint ventures are accounted for using
the equity method. Under the equity method, the share of the profits or losses of the joint venture is
recognised in profit or loss and the share of the movements in equity is recognised in other
comprehensive income. Investments in joint ventures are carried in the statement of financial position
at cost plus post-acquisition changes in the consolidated entity's share of net assets of the joint venture.
Property, plant and equipment
Land and buildings are shown at fair value, based on periodic, at least every 3 years, valuations by
external independent valuers, less subsequent depreciation and impairment for buildings. The
valuations are undertaken more frequently if there is a material change in the fair value relative to the
carrying amount. Any accumulated depreciation at the date of revaluation is eliminated against the
gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.
Increases in the carrying amounts arising on revaluation of land and buildings are credited in other
comprehensive income through to the revaluation surplus reserve in equity. Any revaluation decrements
are initially taken in other comprehensive income through to the revaluation surplus reserve to the extent
of any previous revaluation surplus of the same asset. Thereafter the decrements are taken to profit or
loss.
Plant and equipment are stated at historical cost less accumulated depreciation and impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant
and equipment (excluding land) over their expected useful lives as follows:
Buildings
Leasehold improvements
Plant and equipment
25 years
3 years
3-5 years
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate,
at each reporting date.
Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful
life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future
economic benefit to the consolidated entity. Gains and losses between the carrying amount and the
disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item
disposed of is transferred directly to retained profits.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is
measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable,
any lease payments made at or before the commencement date net of any lease incentives received,
any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of
costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site
or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or
the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects
to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its
estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement
of lease liabilities.
The consolidated entity has elected not to recognise a right-of-use asset and corresponding lease
liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease
payments on these assets are expensed to profit or loss as incurred.
28
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Exploration and evaluation assets
Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure
are current is carried forward as an asset in the statement of financial position where it is expected that
the expenditure will be recovered through the successful development and exploitation of an area of
interest, or by its sale; or exploration activities are continuing in an area and activities have not reached
a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable
reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon
is written off in the year in which the decision is made.
Mining assets
Capitalised mining development costs include expenditures incurred to develop new ore bodies to
define further mineralisation in existing ore bodies, to expand the capacity of a mine and to maintain
production. Mining development also includes costs transferred from exploration and evaluation phase
once production commences in the area of interest.
Amortisation of mining development is computed by the units of production basis over the estimated
proved and probable reserves. Proved and probable mineral reserves reflect estimated quantities of
economically recoverable reserves which can be recovered in the future from known mineral deposits.
These reserves are amortised from the date on which production commences. The amortisation is
calculated from recoverable proven and probable reserves and a predetermined percentage of the
recoverable measured, indicated and inferred resource. This percentage is reviewed annually.
Restoration costs expected to be incurred are provided for as part of development phase that give rise
to the need for restoration.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The
value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax
discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do
not have independent cash flows are grouped together to form a cash-generating unit.
Trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to
the end of the financial year and which are unpaid. Due to their short-term nature, they are measured
at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30
days of recognition.
Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of
transaction costs. They are subsequently measured at amortised cost using the effective interest
method.
The component of the convertible notes that exhibits characteristics of a liability is recognised as a
liability in the statement of financial position, net of transaction costs.
On the issue of the convertible notes the fair value of the liability component is determined using a
market rate for an equivalent non-convertible bond and this amount is carried as a non-current liability
on the amortised cost basis until extinguished on conversion or redemption. The increase in the liability
due to the passage of time is recognised as a finance cost. The remainder of the proceeds are allocated
to the conversion option that is recognised and included in shareholders equity as a convertible note
reserve, net of transaction costs. The carrying amount of the conversion option is not remeasured in
the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially
recognised at the present value of the lease payments to be made over the term of the lease, discounted
using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated
entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease
incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to
be paid under residual value guarantees, exercise price of a purchase option when the exercise of the
option is reasonably certain to occur, and any anticipated termination penalties. The variable lease
payments that do not depend on an index or a rate are expensed in the period in which they are incurred.
29
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Lease liabilities are measured at amortised cost using the effective interest method. The carrying
amounts are remeasured if there is a change in the following: future lease payments arising from a
change in an index, or a rate used; residual guarantee; lease term; certainty of a purchase option and
termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding
right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.
Finance costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs
are expensed in the period in which they are incurred.
Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation
as a result of a past event, it is probable the consolidated entity will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation. The amount recognised as a
provision is the best estimate of the consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time
value of money is material, provisions are discounted using a current pre-tax rate specific to the liability.
The increase in the provision resulting from the passage of time is recognised as a finance cost.
Employee benefits
Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled wholly within 12 months of the reporting date are measured at the amounts
expected to be paid when the liabilities are settled.
Other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are measured at the present value of expected future payments to be made in respect
of services provided by employees up to the reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting
date on corporate bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Defined contribution superannuation expense
Contributions to defined contribution superannuation plans are expensed in the period in which they
are incurred.
Share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.
Equity-settled transactions are awards of shares, or options over shares, that are provided to employees
in exchange for the rendering of services. Cash-settled transactions are awards of cash for the
exchange of services, where the amount of cash is determined by reference to the share price.
The cost of equity-settled transactions are measured at fair value on grant date. Fair value is
independently determined using either the Binomial or Black-Scholes option pricing model that takes
into account the exercise price, the term of the option, the impact of dilution, the share price at grant
date and expected price volatility of the underlying share, the expected dividend yield and the risk free
interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No
account is taken of any other vesting conditions.
The cost of equity-settled transactions are recognised as an expense with a corresponding increase in
equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant
date fair value of the award, the best estimate of the number of awards that are likely to vest and the
expired portion of the vesting period. The amount recognised in profit or loss for the period is the
cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.
30
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by
applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms
and conditions on which the award was granted. The cumulative charge to profit or loss until settlement
of the liability is calculated as follows:
• during the vesting period, the liability at each reporting date is the fair value of the award at that
•
date multiplied by the expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value
of the liability at the reporting date.
All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions
is the cash paid to settle the liability.
Market conditions are taken into consideration in determining fair value. Therefore, any awards subject
to market conditions are considered to vest irrespective of whether or not that market condition has
been met, provided all other conditions are satisfied.
If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has
not been made. An additional expense is recognised, over the remaining vesting period, for any
modification that increases the total fair value of the share-based compensation benefit as at the date
of modification.
If the non-vesting condition is within the control of the consolidated entity or employee, the failure to
satisfy the condition is treated as a cancellation. If the condition is not within the control of the
consolidated entity or employee and is not satisfied during the vesting period, any remaining expense
for the award is recognised over the remaining vesting period, unless the award is forfeited.
If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and
any remaining expense is recognised immediately. If a new replacement award is substituted for the
cancelled award, the cancelled and new award is treated as if they were a modification.
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or
disclosure purposes, the fair value is based on 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;
and assumes that the transaction will take place either: in the principal market; or in the absence of a
principal market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interests. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising
the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy
that reflects the significance of the inputs used in making the measurements. Classifications are
reviewed at each reporting date and transfers between levels are determined based on a reassessment
of the lowest level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value
of an asset or liability from one period to another, an analysis is undertaken, which includes a verification
of the major inputs applied in the latest valuation and a comparison, where applicable, with external
sources of data.
Issued capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the
company.
31
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Barton Gold
Holdings Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted
average number of ordinary shares outstanding during the financial year, adjusted for bonus elements
in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued
for no consideration in relation to dilutive potential ordinary shares.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST
incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the
acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net
amount of GST recoverable from, or payable to, the tax authority is included in other receivables or
other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing
or financing activities that are recoverable from, or payable to the tax authority, are presented as
operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable
to, the tax authority.
Rounding of amounts
The company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian
Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been
rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in
certain cases, the nearest dollar.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory have not been early adopted by the consolidated entity for the annual reporting
period ended 30 June 2022. The consolidated entity has not yet assessed the impact of these new or
amended Accounting Standards and Interpretations.
Note 2. Critical accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements, estimates and assumptions on historical experience
and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom
equal the related actual results. The judgements, estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the
respective notes) within the next financial year are discussed below.
Coronavirus (COVID-19) pandemic
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic
has had, or may have, on the consolidated entity based on known information. This consideration
extends to the nature of the products and services offered, customers, supply chain, staffing and
geographic regions in which the consolidated entity operates. Other than as addressed in specific notes,
there does not currently appear to be either any significant impact upon the financial statements or any
significant uncertainties with respect to events or conditions which may impact the consolidated entity
unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19)
pandemic.
32
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Share-based payment transactions
The consolidated entity measures the cost of equity-settled transactions with employees by reference
to the fair value of the equity instruments at the date at which they are granted. The fair value is
determined by using either the Binomial or Black-Scholes model taking into account the terms and
conditions upon which the instruments were granted. The accounting estimates and assumptions
relating to equity-settled share-based payments would have no impact on the carrying amounts of
assets and liabilities within the next annual reporting period but may impact profit or loss and equity.
Refer to note 32 for further information.
Estimation of useful lives of assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation
charges for its property, plant and equipment and finite life intangible assets. The useful lives could
change significantly as a result of technical innovations or some other event. The depreciation and
amortisation charge will increase where the useful lives are less than previously estimated lives, or
technically obsolete or non-strategic assets that have been abandoned or sold will be written off or
written down.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other
indefinite life intangible assets at each reporting date by evaluating conditions specific to the
consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger
exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal
or value-in-use calculations, which incorporate a number of key estimates and assumptions.
Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination
is uncertain.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity
considers it is probable that future taxable amounts will be available to utilise those temporary
differences and losses.
Employee benefits provision
As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months
from the reporting date are recognised and measured at the present value of the estimated future cash
flows to be made in respect of all employees at the reporting date. In determining the present value of
the liability, estimates of attrition rates and pay increases through promotion and inflation have been
taken into account.
Rehabilitation provision
A provision has been made for the present value of anticipated costs for future rehabilitation of land
explored or mined. The consolidated entity's mining and exploration activities are subject to various
laws and regulations governing the protection of the environment. The consolidated entity recognises
management's best estimate for assets retirement obligations and site rehabilitations in the period in
which they are incurred. Actual costs incurred in the future periods could differ materially from the
estimates. Additionally, future changes to environmental laws and regulations, life of mine estimates
and discount rates could affect the carrying amount of this provision.
Exploration and evaluation costs
Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will
commence commercial production in the future, from which time the costs will be amortised in proportion
to the depletion of the mineral resources. Key judgements are applied in considering costs to be
capitalised which includes determining expenditures directly related to these activities and allocating
overheads between those that are expensed and capitalised. In addition, costs are only capitalised that
are expected to be recovered either through successful development or sale of the relevant mining
interest. Factors that could impact the future commercial production at the mine include the level of
reserves and resources, future technology changes, which could impact the cost of mining, future legal
changes and changes in commodity prices. To the extent that capitalised costs are determined not to
be recoverable in the future, they will be written off in the period in which this determination is made.
33
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 3. Operating segments
Identification of reportable operating segments
The consolidated entity is organised into one operating segment, being exploration in Australia. This
operating segment is based on the internal reports that are reviewed and used by the Board of Directors
(who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in
determining the allocation of resources.
The CODM reviews internal management reports on a regular basis that is consistent with the
information provided in the statement of profit or loss and other comprehensive income, statement of
financial position and statement of cash flows. As a result, no reconciliation is required because the
information as presented is what is used by the CODM to make strategic decisions. The accounting
policies adopted for internal reporting to the CODM are consistent with those adopted in the financial
statements.
Note 4. Other Income
Other income
Gold concentrate
Profit on sale of assets
Government grant
Insurance recoveries
Other Income
Note 5. Expenses
Consolidated
30 June 2022
$’000
30 June 2021
$’000
1,000
809
596
25
2,430
-
12
-
-
12
Consolidated
30 June 2022
$’000
30 June 2021
$’000
Loss before income tax from continuing operations includes the following specific expenses:
Administrative expenses
Salary & wages
Administration costs
Insurance
Consultants
Compliance
Share-based payments
Royalty
Occupancy costs
IPO Listing costs
Depreciation
Total administration
Finance costs expense
Interest accretion on rehabilitation provision
Interest accretion on convertible notes
Interest expense
Total finance expense
702
326
220
217
103
71
35
17
-
92
1,783
193
-
-
193
695
72
196
436
37
1,210
-
7
832
115
3,600
115
609
34
758
34
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 6. Income tax expense
The prima facie income tax expense on pre-tax accounting losses from continuing operations reconciles
to the income tax expense in the financial statements as follows:
Income tax expense
Current tax
Deferred tax
Income tax reported in the statement of profit and loss
Numerical reconciliation of income tax expense and
tax at the statutory rate
Loss before income tax from continuing operations
Tax at the Australian tax rate of 25% (2021: 27.5%)
Tax effect of amounts that are not deductible (taxable)
in calculating taxable income:
Non-assessable income
Non-deductible expenses
Temporary differences not bought to account
Income tax expense / (benefit)
Consolidated
30 June 2022
$’000
30 June 2021
$’000
-
-
-
(4,105)
(1,026)
(104)
263
867
-
3
-
3
(7,733)
(2,127)
-
(428)
(1,696)
(3)
The tax rate used in the above reconciliation is the corporate tax rate of 25% (2021: 27.5%) payable by
Australian base rate entities (those with turnover less than $50 million of revenue, and 80% or less of
their assessable income is base rate entity passive income).
Note 7. Current assets – cash and cash equivalents
Cash at bank
Cash on deposit
Consolidated
30 June 2022
$’000
30 June 2021
$’000
2,200
9,000
11,200
14,891
-
14,891
Cash and short-term deposits comprise of cash at bank and in hand and short-term deposits with an
original maturity of three months or less.
Note 8. Current assets – receivables
Grants
GST
Consolidated
30 June 2022
$’000
30 June 2021
$’000
422
5
427
-
81
81
Government grants related to research and development incentive for income tax year 2020/21 and
South Australia government Landing Pad to offset costs of establishing a corporate office in Adelaide.
35
Note 9. Current assets – other
Prepayments
Security deposit
Supplier advances
Note 10. Non-current assets – receivables
Bonds on deposit
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Consolidated
30 June 2022
$’000
30 June 2021
$’000
85
25
45
155
100
-
-
100
Consolidated
30 June 2022
$’000
30 June 2021
$’000
4,495
4,495
4,445
4,445
Bonds on deposit are cash bonds placed with the South Australian, Department of Energy and Mining
to support future environmental and rehabilitation performance obligations.
Note 11. Non-current asset - exploration and evaluation expenditure
Exploration and evaluation - at cost
Closing balance
Note 12. Non-current asset - property, plant and equipment
Consolidated
30 June 2022
$’000
30 June 2021
$’000
9,262
9,262
9,262
9,262
Consolidated
30 June 2022
$’000
30 June 2022
$’000
Land and buildings - at cost
Less: Accumulated depreciation
Plant and equipment - at cost
Less: Accumulated depreciation
Net carrying value
80
(6)
74
544
(224)
320
394
80
-
80
467
(144)
323
403
36
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial
year are set out below:
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Consolidated
Opening balance as at 1 July 2020
Additions
Classified as held for sale
Disposal
Depreciation expense
Closing balance as at 30 June 2021
Opening balance as at 1 July 2021
Additions
Classified as held for sale
Disposal
Depreciation expense
Closing balance as at 30 June 2022
Land and
Buildings
$000
Plant &
Equipment
$000
80
-
-
80
80
-
-
-
(6)
74
530
(92)
(115)
323
323
83
-
-
(86)
320
Total
$000
610
(92)
(115)
403
403
83
-
-
(92)
394
Note 13. Current liabilities - trade and other payables
Trade payables
Other payables
Note 14. Current liabilities – employee entitlements
Annual leave
Consolidated
30 June 2022
$’000
30 June 2021
$’000
286
42
328
203
299
502
Consolidated
30 June 2022
$’000
30 June 2021
$’000
69
69
27
27
The current provision for employee benefits includes all unconditional entitlements where employees
have completed the required period of service and those where employees are entitled to pro-rata
payments in certain circumstances. The entire amount is presented as current since the consolidated
entity does not have an unconditional right to defer settlement.
Note 15. Provisions
Current rehabilitation provision
Non-current rehabilitation provision
Consolidated
30 June 2022
$’000
30 June 2021
$’000
176
15,091
15,267
686
13,694
14,380
Rehabilitation
The provision represents the present value of estimated costs for future rehabilitation of land explored
or mined by the consolidated entity at the end of the exploration or mining activity.
37
Movement in Provision
Movement in the rehabilitation provision during the current financial year are set out below:
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Opening balance
Changes in rehabilitation estimates
Unwinding of the discount
Closing balance
Note 16. Equity – issued capital
Consolidated
30 June 2022
$’000
30 June 2021
$’000
14,380
694
193
15,267
13,669
595
115
14,380
30 June
2022
Shares
Consolidated
30 June
2021
Shares
30 June
2022
$’000
30 June
2021
$’000
Ordinary shares - fully paid
175,616,719
175,616,719
23,540
23,510
Movements in ordinary share capital
Details
Balance
Share issue
Share issue
Share issue
Share issue
Share consolidation (2:1)
Conversion of convertible note
Initial public offer
Transaction costs
Balance
Transaction costs
Balance
Date of
issue
Number of
shares
Issue
Price per
share
01 Jul 2020
20 Jul 2020
10 Aug 2020
10 Sep 2020
1 Dec 2020
15 Mar 2021
14 Jun 2021
18 Jun 2021
200,604,063
2,492,877
123,750
2,496,368
918,750
(103,317,893)
12,298,804
60,000,000
-
30 Jun 2021
175,616,719
$0.20
$0.24
$0.20
$0.27
n/a
$0.25
$0.25
n/a
$’000
4,741
500
30
501
252
-
3,069
15,000
(583)
23,510
-
n/a
30
30 Jun 2022
175,616,719
23,540
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the
Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary
shares have no par value and the Company does not have a limited amount of authorised capital.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is
entitled to one vote, and upon a poll each share is entitled to one vote.
Capital risk management
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt.
Net debt is calculated as total borrowings less cash and cash equivalents. There are no externally
imposed capital requirements.
The consolidated entity's objectives when managing capital is by assessing the Group’s financial risks
and adjusting its capital structure in response to changes in these risks and in the market. These
responses include the management of debt levels, distributions to shareholders and share issues.
There have been no changes in the strategy adopted by management to control the capital of the Group
since the prior period. This strategy is to ensure that the Group can fund its future activities.
38
Note 17. Equity – reserves
Share based payment reserve
Total
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Consolidated
30 June 2022
$’000
30 June 2021
$’000
1,281
1,281
1,210
1,210
Share based payment reserve
Share based payments reserve records items recognised as expenses on the valuation of directors and
employee’s share options and rights.
Note 18. Equity – retained losses
Consolidated
30 June 2022
$’000
30 June 2021
$’000
Retained earnings at the beginning of financial year
Loss after income tax for the year
Retained earnings at the end of the financial year
10,447
4,105
14,552
2,712
7,735
10,447
Note 19. Financial instruments
Financial risk management
The Group's activities expose it to a variety of financial risks: interest rate risk; 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 Board provides principles for overall risk management, as well as policies covering specific areas,
such as interest rate risk, credit risk, and use of financial instruments and investment of excess liquidity
where appropriate. Risk management is carried out by management under policies approved by the
Board. Management identifies and evaluates the risk exposure to the Group and will implement financial
hedges to minimise the risks where appropriate.
The Group's financial instruments consist mainly of deposits with banks, accounts receivable and
payable and loans to related parties.
Market risk
Interest rate risk
The Group’s exposure to market risk for changes in interest rates arises from variable interest rate
exposure on cash, fixed deposits and interest-bearing liabilities.
The Group’s policy is to manage its exposure to interest rate risk by holding cash in short-term, fixed
rate and variable rate deposits with reputable high credit quality financial institutions. With interest-
bearing liabilities, consideration is also given to the potential renewal of existing positions, alternative
financing, and the mix of fixed and variable interest rates.
The following table summarises the financial assets and liabilities of the Group, together with the
effective interest rates as at the balance date.
2022
Fixed interest
maturing in:
1 – 5
< 1
years
year
>
5
years
Floating
interest
rate
Cash and cash equivalents
Trade and other receivables
Trade and other payables
$’000
2,200
-
-
$’000 $’000 $’000
-
9,000
-
-
-
-
-
-
-
Average interest
rates
Floating Fixed
%
0.01%
-
-
%
3.28%
-
-
Non-
interest
bearing
$’000
-
189
649
39
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
2021
Floating
interest
rate
$’000
14,891
-
-
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Fixed interest
maturing in:
1 – 5
< 1
years
year
>
5
years
$’000 $’000 $’000
-
-
-
-
-
-
-
-
-
Average
interest rates
Floating Fixed
%
0.01%
-
-
%
-
-
-
Non-
interest
bearing
$’000
-
81
502
As at 30 June 2022, a movement of 1% in interest rates, with all other variables being held constant,
results in an immaterial movement in pre-tax losses.
Credit risk
Credit risk arises from the financial assets of the Group, and its exposure to credit risk arises from the
potential default of the counterparty, with a maximum exposure equal to the carrying amount of the
instruments. The Group’s exposure to credit risk is minimal and results only from its exposure in cash
and cash equivalents. The Group holds its cash with Westpac and the Commonwealth bank which has
a long-term credit rating of AA- rating from S&P Global Ratings.
Liquidity risk
The Group’s objective is to ensure sufficient liquid funds are available to meet the Group’s financial
commitments in a timely and cost-effective manner.
The Group’s treasury function continually reviews the Group’s liquidity position including cash flow
forecasts to determine the forecast liquidity position and maintain appropriate liquidity levels.
2022
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Net inflow
2021
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Net inflow
< 1 year
$’000
11,200
189
(649)
10,740
14,891
81
(502)
14,470
1 – 5 years
$’000
-
-
-
-
-
-
-
-
Total
$’000
11,200
189
(649)
10,740
14,891
81
(502)
14,470
Note 20. Key management personnel disclosures
Compensation
The aggregate compensation made to directors and other members of key management personnel of
the consolidated entity is set out below:
Short-term employee benefits
Post-employment benefits
Share-based payments
Consolidated
30 June 2022
$
789,166
73,013
67,036
929,215
30 June 2021
$
624,068
43,646
760,770
1,428,484
There were no loans or other transactions with key management personnel during the year ended 30
June 2022.
40
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 21. Remuneration of auditors
During the financial year, the following fees were paid or payable for services provided by BDO, the
auditor of the company, its network firms, and unrelated firms.
Auditing services - BDO
Tax advisory services
Preparation of Investigative Accountants Report
30 June 2022
$
50,263
1,500
-
51,763
30 June 2021
$
68,685
24,205
18,540
111,430
Note 22. Contingent assets and liabilities
The Group had no contingent assets or liabilities at 30 June 2022 (2021: nil).
Note 23. Commitments
Capital commitments
Committed at the reporting date but not recognised as
liabilities, payable:
Property, plant, and equipment
Note 24. Related party transactions
Parent entity
Barton Gold Holdings Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in note 26.
30 June 2022
$’000
30 June 2021
$’000
161
161
-
-
Loans between entities in the wholly owned Group are non-interest bearing, unsecured and are payable
upon reasonable notice having regard to the financial situation of the entity.
Joint ventures
Interests in joint ventures are set out in note 27.
Key management personnel
Disclosures relating to key management personnel are set out in note 20 and the remuneration report
included in the Directors’ report.
Transactions with related parties
The following transactions occurred with related parties:
Payment for goods and services:
Payments for accounting services from Straightline
Group Pty Ltd (a director-related entity of Neil Rose)
30 June 2022
$
30 June 2021
$
15,318
35,766
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
41
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 25. Parent entity information
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit / (Loss) after income tax for the period
Total comprehensive profit / (loss) for the period
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Equity
Issued capital
Reserves
Accumulated losses
Total equity
Parent
2022
$’000
263
263
Parent
2022
$’000
22,069
-
22,069
367
-
22,755
1,281
(2,334)
21,702
2021
$’000
(2,602)
(2,602)
2021
$’000
21,276
-
21,276
389
-
22,725
1,210
(2,598)
21,337
Guarantees
The parent entity had not entered into any cross guarantees with its subsidiaries as at 30 June 2022
and 30 June 2021.
Contingent liabilities
The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022
and 30 June 2021.
Significant accounting policies
The accounting policies of the parent entity are consistent with those of the consolidated entity.
Note 26. Interest in subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following
wholly owned subsidiaries in accordance with the accounting policy described in note 1:
Name of entity
Country of
incorporation
Class of
shares
Equity %
2022
Equity %
2021
Barton Gold Holdings Australia Pty Ltd
Barton Gold Pty Ltd
Roma Resources SA Pty Ltd
Tunkillia 2 Pty Ltd
Tarcoola 2 Pty Ltd
Challenger 2 Pty Ltd
Jumbuck Equipment Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
100
100
100
100
100
100
100
100
100
100
100
100
100
100
42
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 27. Interests in joint ventures
Interests in joint ventures are accounted for using the equity method of accounting. Information relating
to joint ventures that are material to the consolidated entity are set out below:
Name
Country of
incorporation
Western Gawler Craton Joint Venture
All Minerals Joint Venture
Australia
Australia
Ownership Interest
2022
%
21.16
90.00
2021
%
21.16
90.00
Note 28. Events after the reporting period
Exploration
On 25 July 2022 the Company announced multiple high-grade drilling assays that infilled the
Perseverance West gold zone adjacent to the Perseverance West open pit mine (Tarcoola), confirming
strike and depth extensions of the southern end of the open pit. Subsequently, on 22 August 2022, the
Company announced that assays from a further three step-out drill holes had extended this
Perseverance West gold zone by a further ~50m.
On 5 September 2022 the Company announced the results of its May / June 2022 drilling program at
Tunkillia, confirming another new gold zone at the Area 51 prospect comprising 500 metres mineralised
strike and significantly expanding the mineral footprint of Tunkillia.
Shortly thereafter, on 7 September 2022 the Company announced the start of a follow up drilling
program at Tunkillia, targeting approximately 9,000 metres RC drilling intended to support a JORC
(2012) Mineral Resources Estimate update for the project.
Corporate
On 14 July 2022, the Company announced that it had changed its registered office and principal place
of business to the address of its new Adelaide headquarters, being Level 4, 12 Gilles Street, Adelaide
SA 5000, Australia.
During August 2022 the Company also welcomed Mr David Wilson, another highly experienced South
Australian mining professional, as its new General Manager of Projects to lead Barton’s ongoing asset
realisation initiatives.
No other matters or circumstance has arisen since 30 June 2022 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs
in future financial years.
Note 29. Reconciliation of loss after income tax to net cash flows from operations activities
Loss after income tax for the year
Adjustments for:
Depreciation
Profit on sale of assets
Share-based payments
Non-cash rehabilitation adjustment
Interest accretion
Tax expense
Changes in operating assets and liabilities
(Increase)/Decrease in trade and other receivables
(Increase) in other current assets
(Decrease) in trade and other payables
Increase in Employee entitlements
Consolidated
2022
$’000
(4,105)
2021
$’000
(7,733)
92
(809)
71
694
193
-
(345)
(56)
(144)
42
115
(12)
1,210
709
633
3
36
(100)
(147)
27
Net cash flows from operating activities
(4,367)
(5,259)
43
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Note 30. Non-cash investing and financing activities
In the prior year:
•
•
the Company issued three (3) million options to the joint lead manager for services in relation
to the Company’s Initial Public Offering in June 2021.
the Company issued 61,875 shares at an issue price of $0.48 to a third party for services
associated with geophysics, total $29,700.
Note 31. Loss per share
Loss per share for profit from continuing operations
Loss used in calculating basic and diluted loss per
share from continuing operations
Weighted average number of ordinary shares
Weighted average number of ordinary shares used in
the calculation of basic and diluted loss per share
Basic loss and diluted loss per share
Consolidated
30 June 2022
$’000
30 June 2021
$’000
(4,105)
(7,733)
Shares
Shares
175,616,708
187,406,067
Cents
2.337
Cents
4.126
Basic loss per share is determined by dividing net loss after income tax attributable to members of the
Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the financial period.
Diluted loss per share adjusts the value used in the determination of basic loss per share to take into
account the after income tax effect of interest and other financing costs associated with dilutive potential
ordinary shares by the weighted average number of shares assumed to have been issued for no
consideration in relation to potential ordinary shares.
Note 32. Share-based payments
The Company provides benefits to employees (including directors) in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares. Eligible
employees may receive share-based payments as a benefit under the Employee Incentive Scheme.
Each option entitles the holder, on exercise, to one ordinary fully paid share in the Company. There is
no issue price for options and the option exercise price is determined by the Board. An option may only
be exercised after that option has vested and any other conditions imposed by the Board on exercise
are satisfied. The Board may determine the vesting period, if any.
No voting or dividend rights are attached to the options. No voting rights are attached to unissued
ordinary shares. Voting rights are attached to unissued ordinary shares after options have been
exercised.
On 5 November 2021 Mr Scanlon was issued, under the Employee Incentive Scheme, 1,280,000 zero
priced options.
On 24 March 2022 key management and an employee were issued, under the Employee Incentive
Scheme, 710,080 zero priced options.
44
Barton Gold Holdings Limited
Notes to the financial statements
30 June 2022
Set out below are summaries of options granted under the plan:
2022
Grant date Expiry date Exercise
price
Balance
at start of
year
Granted Exercised Expired/
forfeited/
other
Balance at
end of the
year
15/03/2021 15/03/2025
18/06/2021 18/06/2024
18/06/2021 18/06/2024
05/11/2021 05/11/2026
24/03/2022 30/06/2026
$0.375 6,500,000
$0.3125 1,500,000
$0.375 1,500,000
-
-
-
1,280,000
710,080
9,500,000 1,990,080
$0.00
$0.00
Weighted average exercise price
$0.3651
$0.00
-
-
-
-
-
-
-
6,500,000
-
1,500,000
-
1,500,000
-
1,280,000
-
-
710,080
- 11,490,080
-
$0.3019
2021
Grant date Expiry date Exercise
price
Balance
at start of
year
Granted Exercised Expired/
forfeited/
other
Balance at
end of the
year
15/03/2021 15/03/2025
18/06/2021 18/06/2024
18/06/2021 18/06/2024
$0.375
$0.3125
$0.375
- 6,500,000
- 1,500,000
- 1,500,000
- 9,500,000
Weighted average exercise price
-
$0.3651
-
-
-
-
-
-
-
-
-
-
6,500,000
1,500,000
1,500,000
9,500,000
$0.3651
The weighted average remaining contractual life of options outstanding at the end of the financial year
was 3.78 years (2021: 3.69 years).
For the options granted during the current financial year, the valuation model inputs used to determine
the fair value at the grant date, are as follows:
Grant date Expiry date
Vesting
date
Exercise
price
Expected
volatility
Dividend
yield
Share
price
at
grant
date
05/11/20211 30/06/2026 30/6/2025 $0.17
$0.00
85%
05/11/20212 30/06/2026 30/6/2025 $0.17
$0.00
85%
24/03/20221 30/06/2026 30/6/2025 $0.265
$0.00
80%
24/03/20222 30/06/2026 30/6/2025 $0.265
$0.00
80%
Nil
Nil
Nil
Nil
Risk-
free
interest
rate
Fair
value
at
grant
date
0.90%
$0.17
0.90% $0.128
2.17% $0.265
1.45% $0.214
1,2 These options will vest on satisfaction of specific performance conditions based on both market
and non-market conditions.
1 The option tranche is non-market based performance target and the fair value is measured as the
share price at grant date.
2 The option tranche is market-based condition as a measure of Total Shareholder Return (TSR). The
performance condition is measured in relative terms against a defined peer group of companies
approved by the Board. The fair value of these options is estimated using Monte Carlo simulation
valuation model at grant date. The Monte Carlo simulates the Company’s share price and depending
on the criteria arrives at a value based on the number of options that are likely to vest. Volatility is
based on the share price volatility of the Company and the peer group of companies.
45
Barton Gold Holdings Limited
Directors’ Declaration
For the year ended 30 June 2022
In the Directors' opinion:
(a)
the Consolidated Financial Statements and notes are in accordance with the Corporations Act
2001, including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other
mandatory professional reporting requirements, and
giving a true and fair view of the Consolidated Entity's financial position for year ended
30 June 2022 and of its performance for the year ended on that date, and
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable, and
the financial statements and notes thereto are in accordance with the International Financial
Reporting Standards issued by the International Accounting Standards Board.
(b)
(c)
The Directors have been given the declarations as required by section 295A of the Corporations Act
2001.
This declaration is made in accordance with a resolution of Directors.
Alexander Scanlon
Managing Director
Adelaide, South Australia
23 September 2022
46
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
PO Box 700 West Perth WA 6872
Australia
INDEPENDANT AUDITORS REPORT
To the members of Barton Gold Holdings Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Barton Gold Holdings 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 profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year
then ended, and notes to the financial report, including a summary of significant accounting policies
and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and 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 financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia
Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO
International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability
limited by a scheme approved under Professional Standards Legislation.
47
Carrying value of exploration and evaluation asset
Key audit matter
How the matter was addressed in our audit
The carrying value of capitalised exploration and
Our procedures included, but were not limited to:
evaluation assets as at 30 June 2022 is disclosed in
Note 11 of the financial report.
The Group has adopted the accounting policy to
capitalise acquisition costs relating to exploration and
Obtaining a schedule of the areas of interest held
by the Group and assessing whether the rights to
tenure of those areas of interest remained
current at balance date;
evaluation expenditure and expense ongoing
Considering the status of the ongoing exploration
exploration activities.
As the carrying value of exploration and evaluation
assets represents a significant asset of the Group, we
considered it necessary to assess whether any facts or
circumstances exist to suggest that the carrying
amount of this asset should be subject to impairment
testing.
Judgement is applied in determining the treatment of
exploration expenditure in accordance with Australian
Accounting Standard AASB 6 Exploration for and
Evaluation of Mineral Resources. As a result, this is
considered a key audit matter.
programmes in the respective areas of interest by
holding discussions with management, and
reviewing the Group’s exploration budgets, ASX
announcements and director’s minutes;
Considering whether any such areas of interest
had reached a stage where a reasonable
assessment of economically recoverable reserves
existed;
Considering whether there are any other facts or
circumstances existing to suggest impairment
testing was required; and
Assessing the adequacy of the related disclosures
in Note 11 to the financial report.
Accounting for share based payments
Key audit matter
How the matter was addressed in our audit
During the financial year, the Group granted options to
Our procedures included, but were not limited to:
key management personnel and other employees of the
Reviewing market announcements and board
Company.
Refer to Note 31 of the financial report for a
meeting minutes to ensure all share based
payments have been recognised;
description of the accounting policy, the significant
Reviewing the relevant supporting documentation
estimates and judgements applied to these
to obtain an understanding of the contractual
arrangements and for disclosure of the arrangements.
nature and terms and conditions of the share-
Share-based payments are a complex accounting area
and due to the complex and judgemental estimates
used in determining the fair value of the share-based
payments in accordance with AASB 2 Share Based
Payment, we consider the Group’s calculation of the
share-based payments expense to be a key audit
matter.
based payments arrangements;
Evaluating management’s methodology for
calculating the fair value of the share-based
payments, including assessing the valuation
inputs using internal specialists where
appropriate; and
Assessing the adequacy of the related disclosures
in Note 31 of the financial report.
48
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2022, but does not include the
financial report and the 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 has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
49
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 10 to 16 of the directors’ report for the
year ended 30 June 2022.
In our opinion, the Remuneration Report of Barton Gold Holdings 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.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 23 September 2022
50
Barton Gold Holdings Limited
Additional Information
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere
in this report is as follows. The information is current as at 31 August 2022.
Issued Equity Capital
Number of holders
Number on issue
Voting Rights
Ordinary Shares
Options
863
175,616,719
18
11,490,080
Voting rights, on a show of hands, are one vote for every registered holder of Ordinary Shares and on
a poll, are one vote for each share held by registered holders of Ordinary Shares. Options do not carry
any voting rights.
Distribution of Holdings of Equity Securities
Fully Paid Ordinary Shares
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Units
Ordinary Shares
22
180
158
352
151
863
7,622
601,657
1,271,247
14,361,377
159,374,816
175,616,719
Unlisted options exercisable at $0.3125 and expiring 18 June 2024
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Units
Options
0
0
0
0
3(1)
3
0
0
0
0
1,500,000
1,500,000
(1) Taycol Nominees Pty Ltd <211 A/C> holds 712,333 options, comprising 47.49% of this class; Sprott Capital Partners LP holds
431,500 options, comprising 28.77% of this class; and Cannacord Genuity (Australia) Limited holds 356,167 comprising 23.74%
of this class.
Unlisted options exercisable at $0.375 and expiring 18 June 2024
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Units
Options
0
0
0
0
3(1)
3
0
0
0
0
1,500,000
1,500,000
(1) Taycol Nominees Pty Ltd <211 A/C> holds 712,333 options, comprising 47.49% of this class; Sprott Capital Partners LP holds
431,500 options, comprising 28.77% of this class; and Cannacord Genuity (Australia) Limited holds 356,167 comprising 23.74%
of this class.
51
Barton Gold Holdings Limited
Additional Information
Unlisted options exercisable at $0.375 and expiring 15 March 2025
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Number of Equity Security Holders
Units
Options
0
0
0
0
8
8
Unlisted options exercisable at $0.00 and expiring 30 June 2026
Holding ranges
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
Unmarketable Parcels
Number of Equity Security Holders
Units
Options
0
0
0
0
4
4
0
0
0
0
6,500,000
6,500,000
0
0
0
0
1,990,080
1,990,080
The number of shareholders holding less than a marketable parcel (being 192,807 Shares as at
31 August 2022) based on a closing market price of $0.170 was 102.
Substantial Shareholders
Gocta Holdings Pty Ltd1
Six Fingers Pty Ltd 1
Telarah Holdings Pty Ltd 1
Gatej Pty Ltd1
Number of Ordinary
Shares
Percentage (%)
43,611,459
13,974,649
13,964,234
13,932,984
24.83%
7.96%
7.95%
7.93%
1 As disclosed in substantial shareholding notices lodged on ASX on 28 June 2021.
On Market Buy Back
There is no current on-market buy-back.
Restricted Securities
The Company has the following restricted securities on issue.
Class
Fully Paid Ordinary Shares
Unlisted options exercisable at $0.3125 and expiring 18 June
2024
Unlisted options exercisable at $0.375 and expiring 18 June
2024
Unlisted options exercisable at $0.375 and expiring 15 March
2025
Number of
Securities
89,657,496
1,500,000
1,500,000
6,500,000
Escrow Period
Until 28 June
2023
Until 28 June
2023
Until 28 June
2023
Until 28 June
2023
52
Top 20 Shareholders
Rank Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Gocta Holdings Pty Ltd
Six Fingers Pty Ltd
Telarah Holdings Pty Ltd
GateJ Pty Ltd
J P Morgan Nominees Australia Pty Limited
Primero Group Ltd
Citicorp Nominees Pty Limited
Juan Herraez Balanzat
Magliano Pty Ltd
Berne No 132 Nominees Pty Ltd <656165 A/C>
Andrew Campbell Bales
Superhero Securities Limited
CS Fourth Nominees Pty Limited < HSBC Cust Nom AU
Ltd 11 A/C>
Retzos Executive Pty Ltd
I & C Hartmann Investments Pty Ltd
Norup & Wilson Pty Ltd
Alkat Pty Ltd
Mr Gareth Yeung Sum Ho
Treasury Services Group Pty Ltd
BNP Paribas Nominees Pty Ltd
TOTAL
Barton Gold Holdings Limited
Additional Information
Number of
Ordinary
Shares
Percenta
ge (%)
43,611,459
13,974,649
13,964,234
13,932,984
8,600,000
7,481,250
4,094,068
3,311,981
2,000,000
2,000,000
1,822,917
1,811,295
1,695,744
1,400,000
1,396,362
1,025,000
1,000,000
969,609
800,000
24.83%
7.96%
7.95%
7.93%
4.90%
4.26%
2.33%
1.89%
1.14%
1.14%
1.04%
1.03%
0.97%
0.80%
0.80%
0.58%
0.57%
0.55%
0.46%
759,279
0.43%
125,650,831
71.55%
Corporate Governance
The Company’s 2022 Corporate Governance Statement is available in the Corporate Governance
section of the Company’s website: https://bartongold.com.au/corporate/governance/
This document is reviewed regularly to address any changes in governance practices and the law.
Use of Funds
The Company confirms that since admission to the ASX on 28 June 2021, it has used its cash and
assets in a form convertible to cash that it had at the time of admission in a way consistent with its
business objectives.
53
Schedule of Mining Tenements
Tenement
Location
Nature of Interest
Interest as at
30 June
Barton Gold Holdings Limited
Interest in Mining Tenements
As at 30 June 2022
Tunkillia 2 Pty Ltd
EL6639
EL5901
ELA2022/00022 3
Tarcoola 2 Pty Ltd
EL6167
EL6210
ML6455
ERA1199 3
Challenger 2 Pty Ltd
EL6625 1
EL6012 1
EL6173 1
EL6502 1
EL6532 1
ML6103
ML6457
MPL63
MPL65
MPL66
EL5998 1,2
EL6569 1,2
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
South Australia
Granted
Granted
Application
Granted
Granted
Granted
Application
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
Granted
100%
100%
0%
100%
100%
100%
0%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
90%
90%
1) Tenements EL 6625, EL 6012, EL 6173, EL 6532, EL 5998, EL 6569 and the southern portion of EL 6502
comprise the tenements of the Western Gawler Craton Joint Venture (WGCJV) in which the Company presently
holds a 21.16% gold rights interest (the WGCJV Tenements)1.
2) Tenements EL 5998 and EL 6569 comprise the tenements of the All Minerals Joint Venture (All Minerals JV)
in which the Company presently holds a 90% gold rights interest (the All Minerals JV Tenements)2. Accordingly,
where the Company has a present 21.16% gold rights interest in the WGCJV Tenements, the Company therefore
has a present net 19.04% gold rights interest in the All Minerals JV Tenements (being equivalent to a present
21.16% WGCJV interest multiplied by a present 90% All Minerals JV interest). With the exception of the All Minerals
JV Tenements where the Company (via wholly-owned subsidiary Challenger 2 Pty Ltd) holds a 90% titled interest,
the Company (via its subsidiaries) presently holds a 100% titled interest in all Tenements. In respect of the All
Minerals JV, Coombedown Resources Pty Ltd (Coombedown) retains a 10% titled interest in the tenements and
a 10% free carried interest in the mineral rights thereupon until a decision to mine.
3) During the year ended 30 June 2022 the Company’s wholly-owned subsidiary Tunkillia 2 Pty Ltd applied, and
has received confirmation of application, for ELA2022/00022 covering ~80km2 adjacent to the Tunkillia Project.
The Company also applied, via wholly-owned subsidiary Tarcoola 2 Pty Ltd, for ERA1199 covering an area
adjacent to the Tarcoola Gold Project.
1 Refer to Barton Prospectus dated 14 May 2021 and Barton ASX announcement dated 14 October 2021
2 Refer to Barton Prospectus dated 14 May 2021
54
Barton Gold Holdings Limited
Mineral Resources and Ore Reserves Information
As at 30 June 2022
Mineral Resources Annual Statement and Review
The Company carries out an annual review of its Mineral Resources as required by the ASX Listing
Rules. The review was carried out as at 30 June 2022. The estimates for Mineral Resources were
prepared and disclosed under the JORC Code 2012 and originally announced in the Company’s
Prospectus dated 14 May 2021.
There is no material change to the Mineral Resources reported as at 30 June 2022 compared to that
reported at 14 May 2021, being the date of the Company’s Prospectus.
Total Attributable Mineral Resource Inventory as at 30 June 2022
Project
Zone
Indicated
Tunkillia*
100%
Oxide zone
Fresh zone
Tarcoola*
100%
Perseverance Pit
Low grade stockpile
– oxide
Low grade stockpile
- fresh
Challenger*
100%
Above 215 RL Fault
Challenger Deeps
(below 90m RL)
WGCJV*^
(~19-21%)
Golf Bore
Campfire Bore
Greenewood
Monsoon
Typhon
Mainwood
MT
4.8
12.7
17.5
0.07
-
-
0.07
-
-
-
0.6
-
0.1
-
-
-
0.7
17.7
g/t Au
1.27
1.14
1.17
1.7
-
koz Au
195
465
660
3.8
-
Inferred
MT
1.7
6.9
8.6
0.07
0.17
g/t Au
0.92
1.15
1.11
1.1
1.2
koz Au
50
255
305
2.4
6.9
MT
6.5
19.6
26.1
0.14
0.17
Total
g/t Au
1.17
1.14
1.15
1.4
1.2
koz Au
245
720
965
6.2
6.9
-
1.7
-
-
-
1.0
-
1.4
-
-
-
1.1
1.2
-
0.06
3.8
-
-
-
18
-
7
-
-
-
25
669
0.30
0.32
0.21
0.53
3.2
2.8
0.8
0.6
0.3
0.4
7.99
10.97
1.4
1.2
4.1
3.5
3.9
1.0
1.2
1.6
0.8
1.9
1.1
1.1
1.2
2.7
0.06
12.0
42.6
23.0
65.6
100
109
39
17
16
12
294
439
0.37
0.32
0.21
0.53
3.8
2.8
0.9
0.6
0.3
0.4
8.7
28.68
1.4
1.3
4.1
3.5
3.9
1.0
1.2
1.6
0.8
1.9
1.1
1.1
1.20
2.7
15.8
42.6
23.0
65.6
119
109
46
17
16
12
319
1,108
Total Attributable Mineral Resource Inventory as at the Company’s Prospectus date (14 May 2021)
Project
Zone
Indicated
Tunkillia*
100%
Oxide zone
Fresh zone
Tarcoola*
100%
Perseverance Pit
Low grade stockpile
– oxide
Low grade stockpile
- fresh
Challenger*
100%
Above 215 RL Fault
Challenger Deeps
(below 90m RL)
MT
4.8
12.7
17.5
0.07
-
-
0.07
-
-
g/t Au
1.27
1.14
1.17
1.7
-
koz Au
195
465
660
3.8
-
Inferred
MT
1.7
6.9
8.6
0.07
0.17
g/t Au
0.92
1.15
1.11
1.1
1.2
koz Au
50
255
305
2.4
6.9
MT
6.5
19.6
26.1
0.14
0.17
Total
g/t Au
1.17
1.14
1.15
1.4
1.2
koz Au
245
720
965
6.2
6.9
-
1.7
-
-
-
0.06
3.8
-
-
0.30
0.32
0.21
1.4
1.2
4.1
3.5
2.7
0.06
12.0
42.6
23.0
0.37
0.32
0.21
1.4
1.3
4.1
3.5
WGCJV*^
(~20-22%)
Golf Bore
Campfire Bore
Greenewood
Monsoon
Typhoon
Mainwood
3.9
-
1.0
18
1.2
-
1.6
7
0.8
-
1.9
-
1.1
-
1.1
25
1.20
669
*Figures subject to rounding; tonnages are dry metric tonnes; all Mineral Resources classified as ‘inferred’ are approximate; cut-
off grades applied are 0.4 g/t Au (Tunkillia), 0.4 g/t Au (Tarcoola), 2.0 g/t Au (Challenger), 0.5 g/t Au (WGCJV).
0.53
3.8
2.8
0.9
0.6
0.3
0.4
8.7
28.74
0.53
3.2
2.8
0.8
0.6
0.3
0.4
7.99
11.03
-
0.6
-
0.1
-
-
-
0.7
17.7
65.6
100
109
39
17
16
12
294
441
-
1.0
-
1.4
-
-
-
1.1
1.2
3.9
1.0
1.2
1.6
0.8
1.9
1.1
1.1
1.2
^WGCJV: The Company has a present gold rights interest of 21.16% (2021: 21.99%) in Monsoon and Typhoon and 19.04%
(2021: 19.79%) in Golf Bore, Campfire Bore, Greenewood and Mainwood. Accordingly, the Company’s approximate attributable
Mineral Resources inventory from the WGCJV is 61,400 ounces Au (2021: 63,900 ounces Au).
55
2.7
15.8
42.6
23.0
65.6
119
109
46
17
16
12
319
1,110
Barton Gold Holdings Limited
Mineral Resources and Ore Reserves Information
As at 30 June 2022
Estimation Governance Statement
The Company ensures that all exploration results and Mineral Resource estimations are subject to
appropriate levels of governance and internal controls.
Exploration results are collected and managed by an employee of the Company who is an experienced
and 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 estimates are prepared by qualified independent Competent Persons. If there is a
material change in the estimate of a Mineral Resource, the estimate and supporting documentation in
question is reviewed by a suitable qualified independent Competent Persons.
The Company reviews and reports its Mineral Resources on an annual basis in accordance with JORC
Code 2012.
Competent Persons Statements
The information in this report relating to Exploration Results for the Company as from 15 November
2021 is based upon, and fairly represents, information and supporting documentation compiled by Mr
Marc Twining BSc (Hons). Mr Twining is an employee of Barton Gold Holdings Limited and is a Member
of the Australasian Institute of Mining and Metallurgy Geoscientists (AusIMM Member 112811) and has
sufficient experience with the style of mineralisation, the deposit type under consideration and the
activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The
JORC Code). Mr Twining consents to the inclusion in this report of the matters based upon this
information in the form and context in which it appears and to this Annual Statement as a whole.
Competent Persons (Tarcoola)
The information in this report that relates to the estimate of Mineral Resources for the Tarcoola Project
is based upon, and fairly represents, information and supporting documentation compiled by Dr Andrew
Fowler MAusIMM CP (Geo). Dr Fowler is an employee of Mining Plus Pty Ltd and has acted as an
independent consultant on the Company’s Tarcoola Project, South Australia. Dr Fowler is a Member of
the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience with the style
of mineralisation, the deposit type under consideration and to the activity being undertaken, to qualify
as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code).
The information in this report that relates to Exploration Results for the Tarcoola Project prior to 15
November 2021 (including drilling, sampling, geophysical surveys and geological interpretation) is
based upon, and fairly represents, information and supporting documentation compiled by Mr Colin
Skidmore BSc Hons (Geology) MAppSc. Mr Skidmore is an employee of Mining Plus Pty Ltd and has
acted as an independent consultant on the Company’s Tarcoola Project, South Australia. Mr Skidmore
is a Member of the Australian Institute of Geoscientists (AIG) and has sufficient experience with the
style of mineralisation, the deposit type under consideration and to the activity being undertaken, to
qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code).
The information in the report that relates to Exploration Results for the Tarcoola Project as from 15
November 2021 is based upon, and fairly represents, information and supporting documentation
compiled by Mr Marc Twining BSc (Hons). Mr Twining is an employee of the Company and is a Member
of the Australasian Institute of Mining and Metallurgy Geoscientists (AusIMM Member 112811) and has
sufficient experience with the style of mineralisation, the deposit type under consideration and the
activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The
JORC Code).
56
Barton Gold Holdings Limited
Mineral Resources and Ore Reserves Information
As at 30 June 2022
Competent Person (Tunkillia)
The information in this report that relates to the estimate of Mineral Resources for the Tunkillia Project
including drilling, sampling and geological interpretation is based upon, and fairly represents,
information and supporting documentation compiled by Dr Andrew Fowler MAusIMM CP (Geo). Dr
Fowler is an employee of Mining Plus Pty Ltd and has acted as an independent consultant on the
Company's Tunkillia Project, South Australia. Dr Fowler is a Member of the Australian Institute of Mining
and Metallurgy (AusIMM) and has sufficient experience with the style of mineralisation, the deposit type
under consideration and to the activity being undertaken, to qualify as a Competent Person as defined
in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves” (The JORC Code).
The information in this report that relates to Exploration Results for the Tunkillia Project prior to 15
November 2021 (including drilling, sampling, geophysical surveys and geological interpretation) is
based upon, and fairly represents, information and supporting documentation compiled by Mr Colin
Skidmore BSc Hons (Geology) MAppSc. Mr Skidmore is an employee of Mining Plus Pty Ltd and has
acted as an independent consultant on the Company’s Tunkillia Project, South Australia. Mr Skidmore
is a Member of the Australian Institute of Geoscientists (AIG) and has sufficient experience with the
style of mineralisation, the deposit type under consideration and to the activity being undertaken, to
qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves” (The JORC Code).
The information in the report that relates to Exploration Results for the Tunkillia Project as from 15
November 2021 is based upon, and fairly represents, information and supporting documentation
compiled by Mr Marc Twining BSc (Hons). Mr Twining is an employee of the Company and is a Member
of the Australasian Institute of Mining and Metallurgy Geoscientists (AusIMM Member 112811) and has
sufficient experience with the style of mineralisation, the deposit type under consideration and the
activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the
“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (The
JORC Code).
Competent Person (Challenger)
The information in this report that relates to the estimate of Mineral Resources for the Challenger Mine
is based upon, and fairly represents, information and supporting documentation compiled by Mr Dale
Sims, a Competent Person, who is a Chartered Professional Fellow of the Australasian Institute of
Mining and Metallurgy (AusIMM) and a Member of the Australian Institute of Geoscientists (AIG). Mr
Sims is the principal of Dale Sims Consulting Pty Ltd and an independent consultant engaged by the
Company for this work and has sufficient experience that is relevant to the style of mineralisation and
type of deposit under consideration and to the activity being undertaken to qualify as Competent Person
as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves” (The JORC Code).
Competent Person (Western Gawler Craton Joint Venture)
The information in this report that relates to Exploration Results and the estimate of Mineral Resources
for the Western Gawler Craton Joint Venture is based upon, and fairly represents, information and
supporting documentation compiled by Mr Richard Maddocks who is a Fellow of the Australasian
Institute of Mining and Metallurgy (AusIMM). Mr Maddocks is an independent consultant geologist with
Auranmore Consulting who prepared the information and has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code
for Reporting of Exploration Results, Mineral Resource and Ore Reserves” (the JORC Code).
The Company is not aware of any new information or data that materially affects the information
included in the Annual Statement with regard to Mineral Resources and confirms that all material
assumptions and technical parameters underpinning the estimates continue to apply and have not
materially changed from the original announcement on 14 May 2021.
57
Barton Gold Holdings Limited
Statement of Risks
30 June 2022
Statement of Risks
Several factors may adversely affect the Company’s future exploration, development and financial
performance. The following is a non-exhaustive list of general, mining and Company-specific risks.
The Company encourages all prospective shareholders to be familiar with these risk factors. A more
detailed discussion of these risk factors can be found in the Company’s Prospectus dated 14 May 2021,
a copy of which can be found on the ASX platform and the ‘Investor’ section of the Company’s website.
Risks Specific to the Company
There are several risk factors specific to the Company and its specific circumstances, including:
(a) Limited operational history
The Company has limited operational history and no assurance can be given that the Company will
achieve commercial viability through successful exploration and development of its Projects.
(b) Contractual risk
The Company’s ability to achieve its stated objectives may be materially affected by the performance
of counterparties, which may default on their obligations under the contracts leading to termination of
the contracts, the Company approaching a court to seek legal remedy, or the payment of damages.
(c) New projects and acquisitions
New business opportunities in the form of direct project acquisitions, joint ventures, farm-ins, acquisition
of tenements/permits, and/or direct equity participation may require the Company reallocating funds
from existing projects and/or raising additional capital (if available).
(d) Future capital requirements and debt finance risk
The Company has no, and is unlikely to have, regular operating revenue unless and until its projects
are successfully developed. The Company will likely require further capital to fund ongoing exploration
and development, a lack of access to which will adversely affect the Company’s business and assets.
(e) Land and Tenements access risk
The Company may not successfully obtain the access rights required for exploration activities.
Additionally, the Company may not be able to access its projects due to natural disasters, adverse
weather conditions, political unrest, hostilities or failure to obtain the relevant approvals and consents.
(f) Sovereign risk and legal / policy risks
While Australia is generally regarded as holding low sovereign risk, exploration and mining investment
carry risks including economic, social, political, laws affecting foreign ownership, taxation, exchange
rates and controls, licensing, environmental, labour relations and other government regulations.
(g) Reliance on key personnel
The Company relies on key personnel including its Directors and executive management, the loss of
whose services may adversely affect the Company. Difficulties attracting and retaining such staff
during period of high demand in the industry may adversely affect the Company.
(h) Reliance on external contractors
Third party contractors may not be available to perform services when required or on acceptable terms,
and performance is subject to risk of dispute, equipment and staff shortages, and default of contract
terms for quality, safety, environmental compliance and timeliness, and contractor insolvency.
(i) Climate change risks
Climate change risks include new or expanded regulations related to climate change mitigation, and
that climate change may cause certain unpredictable physical and environmental risks including
increased severity of weather patterns, extreme weather events and shifting climate patterns.
58
Barton Gold Holdings Limited
Statement of Risks
30 June 2022
Mining Industry Risks
There are several factors specific to any entity operating in mineral exploration or mining, including:
(a) Tenement tenure and renewal risks
Tenement interests impose conditions including rent and expenditure commitments, are subject to
annual review / periodic renewal, and may be subject to third party contracts and risk. Tenements may
be subject to future additional conditions, penalties, objections or forfeiture applications.
(b) Permitting, licence and approval risk
Exploration and mining require exploration licence(s) and mineral lease(s) which are subject to the
discretion of Government agencies and officials. There is no assurance that the Company will be able
to obtain or renew all requisite permits, licences and approvals, or on a timely or acceptable basis.
(c) Exploration and development risks
Exploration and development undertakings are high-risk and experience, knowledge and careful
evaluation may not overcome these risks. There is no assurance that exploration will result in discovery
or development of an economically viable deposit of minerals.
(d) Mining risks
Mining processing projects are relatively high-risk commercial operations. Each orebody is unique and
its operational performance can never be wholly predicted. Deposit tonnes, grade and mineral content
are estimates only, are not precise calculations, and are a very small sample of the entire orebody.
(e) Operational risks
The Company's activities are subject to numerous operational risks, many of which are beyond the
Company’s control, and may be curtailed, delayed or cancelled as a result of several factors. The
Company will endeavour to take appropriate action to mitigate these operational risks.
(f) Metallurgy risks
Mineral recoveries are dependent upon metallurgical processes to liberate economically saleable
products and contain significant elements of risk such as identifying and developing a viable process
through test work, and changes in mineralogy in the ore deposit which cause inconsistent recoveries.
(g) Mineral Resources and Ore Reserves estimation risks
Estimates of Ore Reserves and Mineral Resources are imprecise and are expressions of judgement
based on knowledge, experience and industry practice and may alter significantly when new information
or techniques become available.
(h) Payment and expenditure obligations risks
The Company’s tenements are subject to payment and other obligations including minimum work
commitments, and failure to meet these can result in tenement forfeiture or liability to penalties or fees.
(i) Commodities prices and exchange rate volatility risks
The Company's assets may be affected by fluctuations in commodity prices and exchange rates, such
as the USD and AUD denominated gold prices and the AUD / USD exchange rate. These can fluctuate
rapidly and widely and are affected by numerous factors beyond the control of the Company.
(j) Competition risk
The Company’s industry is subject to domestic and global competition including major mineral
exploration and production companies. The Company will have no influence over the activities of its
competitors which may affect the operating and financial performance of the Company's interests.
(k) Native Title risks
The Native Title Act 1993 (Cth) recognises and protects the rights of Aboriginal and Torres Strait
Islander people in land and waters according to their traditional laws and customs. Additional
development restrictions and protections apply in South Australia through Part 9B of the Mining Act.
There is significant uncertainty associated with Native Title laws and how they may affect operations.
59
Barton Gold Holdings Limited
Statement of Risks
30 June 2022
(l) Aboriginal Heritage Risk
Aboriginal sites may exist on the land underlying tenements, the presence of which is protected by State
and Commonwealth laws which may adversely impact on exploration and mining activities, including
that they may preclude or limit mining activities and clearance delays and expenses may occur.
(m) Third party risks
The Company may require consents from, or need to pay compensation to, third parties with interests
overlaying its tenements including pastoral leases, petroleum tenure and other exploration or mining
tenure. Delays or failure to obtain consents or pay compensation may adversely impact the Company.
(n) Environmental risk
Breaching South Australian and Australian environmental laws regulations could incur significant
liabilities including penalties or require cessation of operations. Environmental approvals may impose
certain conditions (and/or costs) which prevent the Company from undertaking its desired activities.
(o) Heritage and sociological risk
Some of the Company’s tenements may be of significance from a heritage or sociological perspective,
including Native Title issues. Some sites of significance may be identified within the Tenements and the
Company may be hindered by legal and cultural restrictions on mining those tenements.
(p) Regulatory risk
The Company will require regulatory approvals and licences to undertake operations. There is no
guarantee that such approvals and licences will be granted, or that various conditions imposed will not
adversely impact on the cost or the ability of the Company to mine the tenements.
(q) Royalties risk
Each project operated by the Company will be subject to South Australian State royalties and private
royalties. If South Australian State royalties rise, the profitability and commercial viability of the
Company's projects may be negatively impacted.
(r) Health and safety risks
There are many health and safety risks associated with mining including travel, heavy machinery
operation and exposure to hazardous substances, which may cause personal injury or loss of life,
property damage or environmental contamination, and suspension of operations, penalties or liabilities.
General Risks
There are several general factors which may impact the Company, including:
(a) Economic risks
General economic conditions, inflation, exchange and interest rates and commodity prices may affect
the Company's exploration, development and production activities, its ability to fund those activities,
and Company’s financial performance.
(b) Market conditions risks
Trade in the Company’s securities may be unrelated to the Company's operating and financial
performance and beyond the control of the Company, and the market price of the securities can fall as
well as rise and may be subject to varied and unpredictable influences on the market for equities.
(c) Liquidity and realisation risks
There is no guarantee that an active market in the Company’s securities will develop or continue, and
if a market does not develop or is not sustained it may be difficult for investors to sell their securities,
as there may be relative few, if any, potential buyers or sellers of the securities at any time.
(d) Force majeure risks
The Company's projects may be adversely affected by risks outside the control of the Company
including labour unrest, subversive activities or sabotage, natural disasters, disease, extreme weather
conditions, industrial disasters, acts of war and terrorism or other catastrophes of various types.
60
Barton Gold Holdings Limited
Statement of Risks
30 June 2022
(e) Changes in law, government policy and accounting standards risks
The Company’s activities may be impacted by legal, regulatory (including matters at the Government’s
discretion) and other changes including in respect of Native Title, environmental, labour, taxation and
royalties, accounting standards and other matters, which changes are often unpredictable.
(f) Litigation risks
The Company is exposed to possible litigation risks including Native Title claims, tenure disputes,
environmental claims, occupational health and safety claims, contractual claims and employee claims.
Disputes may result in litigation and impact the Company's operations and financial performance.
Insurance risks
(g)
There is no assurance that the Company will be able to obtain insurance cover for all risks faced at
reasonable rates, that such insurance will be adequate and available to cover all possible claims, or
that it will provide adequate cover for any loss sustained.
(h) Taxation
The acquisition and disposal of the Company’s securities will have tax consequences which will differ
depending on the individual financial affairs of each investor.
(i) Unforeseen expenditure risk
The Company may be subject to significant unforeseen or unplanned expenses or actions including
operating expenses, legal actions or in relation to unforeseen events. There is the risk that additional
funds may be required to cover such unplanned expenses and to fund the Company's future objectives.
Infectious diseases (including COVID-19)
(j)
Coronavirus disease (COVID-19) has materially affected global economic markets, which face
continued uncertainty due to the pandemic which may continue to significantly impact capital markets.
There is no certainty that similar infectious disease events will not occur to adverse effect in the future.
61