ANNUAL
REPORT
2020
CORPORATE
DIRECTORY
Directors
Kevin Tomlinson
Non-Executive Chairman
Stephen Parsons
Managing Director
Fiona Robertson
Non-Executive Director
Shannon Coates
Non-Executive Director
Michael Naylor
Executive Director,
Chief Financial Officer
Company Secretary
Michael Naylor
Principal & Registered Office
Suite 3, Level 3
24 Outram Street
West Perth WA 6005
P: (08) 6424 8077
Website
www.bellevuegold.com.au
Legal Adviser
HWL Ebsworth Lawyers
Level 20
240 St Georges Terrace
Perth WA 6000
Auditor
Grant Thornton Audit Pty Ltd
Level 43, Central Park
152-158 St Georges Terrace
Perth WA 6000
Share Registry
Computershare Investor Services
Level 11, 172 St Georges Terrace
Perth WA 6000
P: 1300 850 505
ASX Listing
ASX Code: BGL
Australian Business Number
99 110 439 686
Contents
Values & Vision
Bellevue Gold Snapshot
Chairman’s Letter
Operations Review
People & Culture
Social & Community
Developments & Early Works
Exploration
Resources & Reserves Statement
3
4
6
9
10
12
14
18
32
Competent Person’s Statement, Notes and Cautionary
Statements
36
Directors’ Report
Directors’ Details
Remuneration Report
Auditor’s Independence Declaration
Financial Statements
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes In Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
39
40
54
77
79
80
81
82
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84
102
103
107
Logging core at Bellevue Gold Project.
2 BELLEVUE GOLD LIMITED
“ To create
a standout
gold mining &
exploration
company that
is an industry
benchmark”
At Bellevue we believe we have a unique opportunity
to develop a standout gold mining company that is the
benchmark for others to be measured against. We believe
our four key values are fundamentally important to the
success of Bellevue. These values underpin the standards
that we hold each other accountable to each and every day.
Values
& Vision
VALUES & VISION 3
P
A
C
E
PASSION
Each day we will pursue our mission with passion and belief – a fierce
determination to succeed and an excitement about what we do.
ACCOUNTABILITY
We are all accountable for our success – our people, our community and our stakeholders.
We will always act with the highest level of integrity and respect to sustainably grow Bellevue.
COMMUNITY
The health, safety and wellbeing of our community is critical to our success.
This includes respect for our people, stakeholders and the environment.
EXCELLENCE
We aim for the highest standards of performance, behaviour and conduct in everything
we do and support everyone in our team to achieve this in everything they do.
Bellevue Gold Mine “PACE” rollout.
4 BELLEVUE GOLD LIMITED
Bellevue Gold Snapshot
One of Australia’s
highest-grade gold
mines, with exciting
exploration potential
and an accelerated
development timeline
2020 HIGHLIGHTS 5
SCALE
resource; one of the fastest growing
resources in Australia.
Moz2
2.3 A globally significant high-grade
97.3 Average recoveries
HIGH METALLURGICAL RECOVERY
of 97.3% on testwork
completed to date.
%3
GRADE
GROWTH
g/t1
gold discoveries globally in a
Tier 1 mining jurisdiction.
10.0 One of the highest-grade new
A$18 Further upside potential. Low
$151 Strong cash balance $151m
to increase resource, progress
exploration, and accelerate
development activities.
discovery costs of A$18/oz.
million4
/oz
CASH
6 BELLEVUE GOLD LIMITED
6 BELLEVUE GOLD LIMITED
Chairman’s
Letter
Dear Shareholder
By any measure, it has been an outstanding year for
your Company. The strong rise in our share price, the
huge increase in our resource base, the enormous
progress made towards project development and
the immense support shown for the Company by
investors around the world all add up to make it a
year to remember for Bellevue shareholders.
CHAIRMAN'S LETTER 7
I would like to thank our staff and contractors for delivering
such outstanding results. Not only have their admirable
achievements created significant value for shareholders
over the past year, but they have shaped our business
in a way which maximises its ability to generate strong,
sustainable returns.
At the start of the past financial year, the Bellevue gold
project had Inferred Resources of 1.53 million ounces at
11.8gpt gold from 4.0Mt (see ASX Announcement 5/2/19).2
This Resource was established in just 18 months, which
is testimony to the quality of the asset and the skill of our
people.
The global Resource base has now more than doubled
to 2.3Moz at an exceptional 10gpt gold from 7Mt,1
giving our project genuine scale and opening a wealth
of development options in the process. And not only
did we succeed in growing the Resource so extensively,
but we also established a maiden Indicated Resource of
860,000oz at 11.6gpt gold from 2.3Mt.1 The economic
potential is further strengthened by the presence of a
high-grade core containing 480,000oz at 15.5gpt gold.1
The establishment of an Indicated Resource marked a
major milestone in the evolution of our project because
it set us on the path to development and, ultimately,
production. As a result, we initiated a series of economic
and technical studies during the past year. These will be
conducted in parallel with our ongoing drilling program,
forming a two-pronged strategy aimed at creating value
through a combination of further resource growth and
project development.
We are continuing to generate outstanding results from
drilling outside the existing Resource, highlighting the
scope for further growth in our Resource. The infill drilling
results also demonstrate the potential for converting more
of the Inferred Resource to the Indicated category.
The upshot of this is we are rapidly establishing a gold
project that is world-scale, has high grades and in the
Tier-1 location of Western Australia. By wrapping favourable
economic and mining studies, including the strong results
of our recent metallurgical tests, around this resource, we
stand to unlock more value from our top-shelf asset.
The quality of the Bellevue project and its growth prospects
were reflected in the strong demand we saw for our capital
raising in July 2020. To raise $100 million from some of
the world’s leading institutional investors, particularly for a
project at this relatively early stage of development, speaks
volumes about the how our potential is viewed.
The Board took the opportunity to reward shareholders
by accompanying the highly successful share placement
with a Share Purchase Plan (SPP), which was also met by
overwhelming demand.
The placement and SPP have ensured that Bellevue has
the firepower to pursue its two-pronged growth strategy
as aggressively as the opportunities allow.
As we enter the new financial year, your Company is in
a very enviable position on all fronts. We have our staff,
contractors and business partners to thank for so much
of our success.
I would like to thank Steve Parsons and the leadership
team for their tireless commitment to the Company and
valued contribution. Lastly, but not least, we welcomed two
highly experienced resources Non-Executive Directors to
the Board, namely Ms Fiona Robertson and Ms Shannon
Coates. The specialist skills and experience of Fiona and
Shannon will be invaluable as we enter this next phase of
growth.
I would also like to thank our shareholders for their support
and I look forward to updating you as we unlock the value of
our project.
Yours Faithfully
Kevin Tomlinson
Non-Executive Chairman
Logging core at Bellevue Gold Project.
Image caption goes in here 0
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BELLEVUE GOLD LIMITEDANNUAL REPORT 2020
10 BELLEVUE GOLD LIMITED
10 BELLEVUE GOLD LIMITED
10 BELLEVUE GOLD LIMITED
People
& Culture
Bellevue Gold Limited (BGL) is committed to becoming an employer
of choice. As such, the Company has implemented numerous
strategies and policies to support our mission. We believe in our
employees as much as we believe in BGL and are committed to
building an organisation that has a great work culture and workplace
environment that attracts and retains superior employees.
Recruitment Process
Bellevue Gold is committed to selecting and employing
individuals for positions consistent with the long-term
best interests and values of the company. Throughout
the recruitment process BGL places an emphasis on:
• Ensuring people are recruited based on their ability
to perform the role in question and that no individual
shall be discriminated against on the basis of race,
ethnic origin, religion, age, gender, sexual orientation,
marital status, disability, political affiliation or any other
category prohibited by Australian laws and regulations.
• Ensuring a positive experience for applicants that will
enhance the company’s reputation.
• Ensuring that the BGL Equal Employment Opportunity
& Diversity Policy is applied, which recognises the
many benefits to be realised by increasing diversity
in our organisation.
• Conducting a thorough process to ensure we are
attracting the right individuals to the organisation.
Remuneration Strategy
Bellevue Gold has a Remuneration and Benefits Policy
which is aimed at providing a transparent, fair and
reasonable process for determining the appropriate
remuneration at all levels at Bellevue Gold Limited. It is
a way for BGL to recognise and reward employees and
demonstrate its invested in each of our employees’ future.
Employee Short-Term Incentive Program
Bellevue Gold Limited is committed to being able to
attract and retain valued employees to the organisation.
The Company offers eligible employees equity securities
in BGL under a short-term incentive program on an
annual basis. Under the Program, eligible employees will
be entitled to additional fixed remuneration in the form
of equity securities which equate to a percentage of
their total fixed remuneration and is linked to employee
performance in the annual rerformance review process.
The program is aimed at promoting and increasing
employee share ownership. Furthermore, this creates
an opportunity for everyone who performs well to be
rewarded and is designed to develop a clear line of sight
between business objectives and reward at all levels in
the organisation.
PEOPLE & CULTURE 11
“The training was great,
lots of fun and gained lots
of valuable skills. Hope I
won’t need to use them but
good to have them!”
— Alastair (Exploration)
In 2020 BGL supported some of its Exploration employees to complete a Cert III in Mine Emergency Response and Rescue.
Equal Employment Opportunity (EEO)
& Diversity Commitments
BGL recognises that we are operating in a challenging
economic climate, and that it has never been more important
to capitalise fully on the skills and talents of all people. By
creating a diverse and inclusive workplace and affording
opportunities to enable people to maximise their talents, we
believe we will deliver stronger economic growth, and reach
our objective of becoming an ‘Employer of Choice’.
To this end Bellevue Gold ensured that our Equal
Employment Opportunity (EEO) and Diversity Policy
encompass improving employment opportunities
for women, people from culturally and linguistically diverse
backgrounds, and Aboriginal and Torres Strait Islander
people, with the objective of attracting, retaining, and
developing a workforce that is representative of the
wider community.
(EAP) to ensure all employees had access to a confidential
counselling service offered to them by the company to help
all employees deal with personal or work-related issues in a
positive way. This involves short-term counselling to assist
employees in overcoming life’s challenges and return them
to a better state of emotional well-being.
Culture and Engagement
BGL conducts exit surveys with all employees leaving
the business to gain insight into their experience working
at BGL as well as an understanding of their motivation
to leave the organisation, with the view to take on the
feedback and review our practices if required. BGL is also
committed to conducting regular Culture Surveys and
Pulse Surveys as we see this as a powerful tool to support
management in being connected with our workforce and
better understand our employees’ personal experience of
working at the organisation.
Gender diversity within the Group
As at 30 June 2020, the number and proportion of males
and females in the Group was as follows:
People Strategy
In addition to the above-mentioned strategies and policies
BGL also has:
Female # Female %
Male #
Male %
Total
Employees1
Executives2
Board3
Total
6
1
2
9
22%
25%
40%
25%
21
3
3
27
77%
75%
60%
75%
27
4
5
36
1. This is higher than the WGEA Mining Sector average of 17% females.
2. Excludes Executive Directors.
3. This is higher than the WGEA Mining Sector average of 20% females.
Strategies to Support Employee Wellness
Employee wellness is an important aspect of our
Health and Safety commitment to our employees at BGL.
From the very early stages of the project BGL engaged
the support of an Employee Assistance Program provider
• Annual Performance Reviews for all employees
• Employee Development – training and upskilling
opportunities, study support, succession planning,
mentoring programs
• Awareness Training – ensure all employees attend
training annually on:
- The BGL Diversity Policy
- Harassment and Bullying Policy
-
Indigenous Cultural awareness
•
Indigenous Training Program – Partnering with
Clontarf Foundation
• Paid Primary Carer’s Leave for both men and women
12 BELLEVUE GOLD LIMITED
Social &
Community
Bellevue Gold regards engagement, communications and
consultation with the community as core values to its business.
Bellevue Gold believes these core values enable it to maintain
its social license to operate. Through its community investment
program with local communities and its wider corporate
sponsorship programs Bellevue Gold aims to leave a lasting legacy
of improved outcomes. Through the various programs we support,
Bellevue Gold concentrates on providing better life outcomes and
creating a community sustainability.
As part of Bellevue Gold’s commitment to community
consultation we have held:
Bellevue Gold’s Community Relations program has funded
a number of programs including the following:
• Meetings with the Shire of Leonora
• Leonora High School Meals program
• Hosted site visits for local community members
• Nyunnga-gu Women Group
• Donated items that were no longer required by sites
• Leonora Mental Health Week
to community groups
• Clean up Leonora Day
• Conducted Aboriginal Heritage Surveys
• Pool and Community Open Day Program
SOCIAL & COMMUNITY 13
Leonora High School Meals Program
The decision to support this
program was based on evidence
that suggested providing meals
to students would increase
school attendance and reduce
the local crime rate.
School children: Leonora High School taking part in the schools meal program
2020 Bellevue Gold Limited
Community Relations
2019/2020 Financial Year
Budgeted 2020/21
Community Service Program
Approval Status
Clontarf Foundation
Leonora High School Meals Program
Approved
Approved
Nygunga-Ku Womans Group/ Yarning Circle
Approved
St John Ambulance
Mental Health Week (Leonora)
Goldfield Games 2019
Approved
Approved
Approved
January 2020 Breakfast Club Leonora Community
Approved
Recreation Centre - Pool Activities (Holiday period)
/ Community Day BBQ
Approved
AFL Program + Jumpers and Coach Costs
Leonora High School Funding Incentive
Clean up Leonora Day
Approved
(Delayed COVID)
Approved
Approved
Leonora Lives Matter for Suicide Prevention HOPE
Approved
Leonora High School - School Term 2 Resources
Approved
Leonora Shire Elder Care Packs
Approved
Clean up Leonora Day
This was the first year Bellevue Gold participated in this
event. In March 2020 a number of mining companies and
local community members spent the day cleaning up the
streets of Leonora to keep the town clean and tidy. Part of
the objective is to have the community take pride in their
town and engage the young people of the community to
learn responsibility and respect for their town. Bellevue
Gold provided four volunteers from site to assist in the
clean up as well as sharing BBQ duties. Our volunteers
received a huge thankyou from the community.
“BGL staff are kind, polite, hard working and were an asset to have on the
day, and would be a pleasure to have them work with them in the future.”
14 BELLEVUE GOLD LIMITED
Developments
& Early Works
Bellevue Gold Limited came a long way in 2020 and is now
transitioning from explorer into a project developer with a vision of
becoming one of Australia’s leading and most profitable gold mining
producers and explorers.
Operational activities continued to expand throughout the
year as the ongoing exploration activities worked towards
further delineation and definition of the growing resources.
The safety systems required to support a growing
operation have continued to be developed as the project
grows and Bellevue Gold is pleased to report zero lost
time injuries at the project throughout the period.
COVID-19 management practices were implemented
with a host of measures designed to protect the health
and wellbeing of our staff, contractors, and local
communities. These have had minimal overall effect to
the workforce and the site-based activities have largely
continued as normal. There were no Bellevue Gold or
contractor partner employees affected by COVID-19
throughout the period.
The appointment of our Chief Operating Officer,
Mr Craig Jones, in late December has provided support
and direction as the operational activities on site
have ramped up in preparation for our anticipated
rehabilitation of the historical decline to enable early
and cost-effective access to the defined resources
of the project.
Dewatering activities commenced at site with the water
level below the 1236 Level, about 250m below surface.
Dewatering progressed on budget and is beyond a
depth where the planned decline rehabilitation will be
required to reach. The underground workings consist of
over 28km of underground development and have the
potential to deliver significant savings in upfront capex.
Access to the underground workings for infill and
resource definition drilling will allow for a significantly
lower drilling cost, more rapid completion of resource
definition work and a potential fast-track into production.
The dewatering of the historical excavations has allowed
for detailed inspections of the workings to occur
for planned rehabilitation activities. Comprehensive
geotechnical inspections have resulted in designed
ground support standards suitable for the planned
development works.
DEVELOPMENTS & EARLY WORKS 15
Bellevue technical staff inspecting the
recently exposed main decline at the
Bellevue underground mine during
dewatering activities.
results from new and existing diamond drill core along with
geophysical surveys and logging were used to determine
the support requirements. These tests revealed the ground
conditions are considered favourable for standard ground
support requirements.
At the time of this report, the new decline portal has been
established and the decline construction activities are
progressing well.
Ground support being anchored above the portal in preparation for securing to
the Paris Pit wall face above and around the new portal.
Underground access activities commenced in August 2020
following an in-depth tendering process culminating with the
appointment of GBF Mining, a part of the Macmahon group
of companies.
GBF/Macmahon will re-establish the existing decline
for mechanised use at Bellevue, which will also enable it
to construct underground drilling platforms. These will
accelerate the infill drilling program and reduce costs
associated with drilling the resource.
Portal support works have recently been completed
in readiness for the underground mining contractor to
establish the new portal with onsite contractors performing
the works as per the geotechnical guidelines recently
established. Additional infrastructure projects are occurring
in parallel, with the establishment of power generation and
electrical distribution to allow the works to commence.
Underground works will involve the establishment of a new
5.5m wide and 5.8m high decline through a new portal in
the footwall of the mineralised zones in the Paris Pit to join
in with the historical excavations. The historical decline
excavations will be stripped out (historical decline is on
average 4.2m wide by 4.2m high) to accommodate future
development equipment.
Ground support will consist of standard galvanised rock
bolts (split set friction bolts) and mesh as per the updated
ground control management plan.
The LIDAR point cloud survey data shows the condition of
the existing underground infrastructure, highlighting the
state of the current ground conditions as being considered
suitable for mechanised re-entry to be established. Advice
from independent geotechnical consultants is that the
16 BELLEVUE GOLD LIMITED
High reach drill in
Paris Pit installing
ground support for
the new portal to be
established.
Geotechnical programs are also well advanced to
support both the access of the decline and the ongoing
mining studies.
Preliminary economic studies have begun with a focus on
evaluating mining methods and potential production rates
evaluating both open-pit and underground opportunities.
Indications from these studies support the concept of
utilising the existing historical development to access the
defined high-grade Viago and Deacon zones to gain early
access to these resource areas.
High-grade mineralisation at Bellevue runs from surface
and there is potential to establish multiple open pits which
may lead into underground development. These desktop
studies highlight the potential for open pits at Bellevue and
Tribune and these may form part of the project’s economic
study. Further shallow drilling is planned to support this
across the Bellevue hanging wall and associated lodes.
Further study work is planned to delineate and optimise
the project design during the second half of 2020.
Entech Pty Ltd have been appointed to assist in managing
the feasibility study works with an anticipated delivery date
early in the new year.
The focus for the coming year will be to finalise the
optimisation works for the project with the delivery
of definitive feasibility level studies that will deliver a
positive economic outcome which can further advance
the project. Along with progressing study activities,
the underground rehabilitation works will continue to
advance towards the designed take-off location to the
newly defined mineralised zones. Underground diamond
drilling is planned to begin behind the advancing decline
rehabilitation in the first half of next year to enable efficient
delineation of the underground resources from more
appropriate drilling horizons.
DEVELOPMENTS & EARLY WORkS 17
Westralia Open Pit
18 BELLEVUE GOLD LIMITED
18 BELLEVUE GOLD LIMITED
Exploration
Bellevue Gold Project, Western Australia
The Bellevue Gold Project is located 400km north west of Kalgoorlie
in Western Australia and sits within a prolific high-grade gold and
nickel district within the Wiluna-Norseman gold belt. The Bellevue
Mine is within 100km of numerous significant producing goldmines
including Jundee (10 Moz), Bronzewing (5 Moz), Agnew (6.5 Moz)
Thunderbox (5.0 Moz) and Darlot (4.5 Moz). The region is a world
class mining district, hosting in excess of 40 Moz of endowment,
and is serviced by world class infrastructure in a Tier 1 jurisdiction.
Bellevue Gold has a dominant landholding in the area
with over 1,916km2 of exploration and mining licences
in this prolific district. Bellevue’s total exploration
tenement package including applications covers in
excess of 2,700km2.
High-grade gold was mined at the project at various
times for over 100 years at the Bellevue Lode through
to 1997 when the operation shut down at around 430
metres below surface. Around 800,000 ounces of gold
have been produced at a reported head grade of ~15g/t
from a high-grade Archean Lode gold system. After the
mine closure in 1997 very little modern exploration was
completed at the project and Bellevue is undertaking
the first systematic exploration at the property in the
last 20 years.
The Bellevue Project includes new discoveries adjacent
to the historic mine, which are from surface and have
significantly extended the footprint of the Bellevue
system both along strike and at depth.
A DOMINANT
LANDHOLDING IN
A WORLD CLASS
MINING DISTRICT
EXPLORATION 19
Figure 1: Location of Projects
Bellevue Mining Licence
2.3 Moz @ 10.0 g/t gold1
20 BELLEVUE GOLD LIMITED
SUMMARY: A year of
discovery and project
advancement delivery
The 2020 financial year has been transformational for the Company, with Bellevue having delivered on a number of key
milestones towards project growth and advancement towards development. The Bellevue Gold Project now ranks as one
of the highest grade and most significant undeveloped gold projects in the world; with a high-grade and growing Global
Mineral Resource (2.3Moz @ 10g/t gold)1, including a robust and high confidence Indicated Resource (0.86Moz @ 11.6g/t
gold)1, exceptional conventional metallurgical recoveries, and granted mining leases in a Tier 1 jurisdiction.
During (and immediately after) the financial year the Company achieved the following:
• Delivery of a maiden Indicated Resource of 0.86Moz @ 11.6g/t gold1, and an increase in the global Mineral Resource to
2.3Moz @ 10.0g/t gold1. A total of 324 diamond holes for 157,000m were drilled taking the total diamond metres at the
Project to 240,000m. The Bellevue Mineral Resource Estimate has been independently estimated and is based on high-
confidence diamond drilling and ranks as one of the most significant undeveloped
high-grade gold discoveries globally.
Included in the Indicated Resource is a very high-grade core of 0.48Moz @ 15.5g/t gold1 at the Deacon and Viago
Lodes. This area is within 300m of existing historical development and remains open in all directions, with a significant
Inferred Resource that will be targeted with future conversion drilling.
•
• The Deacon Lode has advanced from a conceptual target to a significant new high-grade gold discovery with over 2.2km of
proven strike and remaining open with multiple new high priority targets. Drill results from Deacon during the year included:
DRDD218
DRDD130
4.4m @ 62.4g/t gold from 692m (ASX 10/9/19)2
DRDD229W1
2.6m @ 10.0g/t gold from 626m (ASX 27/5/20)2
3.6m @ 18.3g/t gold from 654.6m (ASX 5/8/19)2
and 2.2m @ 38.0g/t gold from 654.6m (ASX 10/9/19)2
DRDD407W4
1.5m @ 168.8g/t gold from 651.7m
incl 0.5m @ 499.1g/t gold (ASX 27/5/20)2
DRDD453A
DRDD444W1
DRDD106W1
5.0m @ 23.5g/t gold from 481.0m (ASX 7/7/20)1
3.1m @ 25.5g/t gold from 614.5m (ASX 7/7/20)1
5.3m @ 54.5g/t gold from 650.9m (ASX 27/5/20)2
DRDD425
2.5m @ 49.2g/t gold from 527.8m (ASX 27/5/20)2
DRDD225W1
10.3m @ 10.7g/t gold from 566.9m
incl 2.9m @ 35.6g/t gold (ASX 27/5/20)2
• Confirmation through testwork that the Bellevue Mineralisation has exceptional conventional gravity and leach
characteristics with gravity recoveries up to 85% and gold leach recoveries averaged 97.3% across the Bellevue Lodes.3
• New gold discovery at the Government Well prospect located 7km to the north of the Bellevue Mine, with initial results
including 17m @ 4.2g/t gold (ASX 10/6/2020)2 from 19m - A new regional gold discovery.
EXPLORATION 21
The Goldfields Highway
22 BELLEVUE GOLD LIMITED
PROJECT
RESOURCES1
During (and immediately after) the financial year the Company released two Mineral Resource upgrades including the
delivery of the maiden Indicated Resource at the Project. Drilling during the year focused on conversion and infill upgrading
the confidence of selected Inferred Resource areas from the previous estimate.
The current Resource for the Bellevue Gold Project is reported below in Table 1:
Table 1: Independent JORC 2012 Resource estimate at selected lower cut-off grades
Indicated
Inferred
Total
Lower
Cut-off
2.0 g/t
3.5 g/t
5.0 g/t
Tonnes
Mt
Grade
g/t
2.68
2.31
1.93
10.3
11.6
13.0
Gold
Moz
0.89
0.86
0.81
Tonnes
Mt
Grade
g/t
5.77
4.72
3.74
8.0
9.2
10.5
Gold
Moz
1.49
1.40
1.26
Tonnes
Mt
Grade
g/t
8.46
7.03
5.68
8.8
10.0
11.3
Gold
Moz
2.38
2.26
2.07
3.5g/t gold lower cut off totals rounded to reflect acceptable precision.
Table 2: Independent JORC 2012 Domain Breakdown of Indicated & Inferred Resource Estimate
Lower Cut-off1
Viago
Deacon
Tribune
Hamilton
Bellevue Remnant
Vanguard Pit
Southern Belle
Total2
Deacon and Viago Main Combined
1. Mineral Resources are reported at a block cut-off grade pf 3.5 g/t Au.
2. Figures may not add up due to rounding.
Indicated
Inferred
Tonnes
Mt
0.89
0.43
0.64
0.26
-
0.09
-
2.31
0.97
Grade
g/t
11.4
18.0
8.1
9.3
-
6.8
-
11.6
15.5
Gold
Moz
Tonnes
Mt
Grade
g/t
Gold
Moz
0.33
0.25
0.18
0.08
-
0.02
-
0.86
0.48
0.53
1.50
0.39
0.66
1.28
0.04
0.36
4.72
1.80
8.5
9.2
5.8
7.5
11.1
5.4
10.4
9.2
9.3
0.14
0.44
0.07
0.16
0.46
0.06
0.12
1.40
0.53
Included in the Indicated Resource is a spectacular higher-grade core of mineralisation totalling 480,000oz at 15.5g/t
gold hosted in the Viago and Deacon Main Resource areas. This mineralisation is within a few hundred metres of existing
underground development and contains consistent high-grade mineralisation that will be targeted in the early mine life at
the project. Over half of the current Indicated and Global Resource is contained in the Viago and Deacon Lodes with both
lodes open for Resource growth with further drilling.
Following the maiden Indicated Resource, a number of high priority areas of the remaining Inferred Resource of 1.4Moz
at 9.2g/t gold1 have been highlighted that are being followed up with additional infill drilling during the second half of
2020. This drilling will be a combination from surface and underground platforms as these become available with the
refurbishment of the historical underground.
EXPLORATION 23
Figure 2: Plan view of the Bellevue 2.3Moz at 10g/t
gold global Resource including 860,000oz at 11.6g/t
Indicated category. The core zone from Viago and
Deacon lodes which contains 480,000oz at 15.5g/t
gold Indicated Category is shown highlighted in red,
adjacent to underground infrastructure. MGA94 51.
Figure 3: Oblique View looking south east through the project’s recent Resource update. Indicated Resource
blocks are shown as blue covering the areas of infill drilling. Inferred blocks are coloured yellow and are targets
for Stage 2 infill drilling. Annotated drill holes are outside of the Indicated category ready for follow up.
24 BELLEVUE GOLD LIMITED
DEACON DISCOVERY:
ADVANCED FROM CONCEPT
TO SIGNIFICANT DISCOVERY
The Deacon Lode is located 400m east of the Bellevue Mine and development, and has advanced from a conceptual
target at the start of the financial year to an Indicated Resource of 0.25Moz @ 18.0g/t gold1 and Inferred Resource of
0.44Moz @ 9.2g/t gold1. The Lode is analogous in style to the Bellevue Mine with a moderate westerly dip and high
sulphide content characterised by abundant visible gold. Deacon is a substantial, high-grade gold discovery and remains
open in every direction. Infill drilling has only been conducted over a 300m x 180m section of the 2.2km of currently
defined strike, meaning there remains significant potential for further resource conversion and extension. Further drilling
is currently ongoing in this central area as well as commencing in the shallower northern strike extents.
Drill results from the Deacon Lode during the year included:
DRDD218
DRDD130
DRDD453A
DRDD444W1
DRDD452
DRDD439
DRDD428
DRDD450
DRDD106W1
DRDD407
4.4m @ 62.4g/t gold from 692m (ASX 10/09/19)2
3.6m @ 18.3g/t gold from 654.6m (ASX 5/08/19)2
and 2.2m @ 38.0g/t gold from 654.6m (ASX 10/09/19)2
5.0m @ 23.5g/t gold from 481.0m (ASX 07/07/20)2
3.1m @ 25.5g/t gold from 614.5m (ASX 07/07/20)2
1.4m @ 43.7g/t gold from 532.6m (ASX 07/07/20)2
1m @ 58.0 g/t gold from 487.7m and
1.85m @ 16.2g/t gold from 499.6m (ASX 07/07/20)2
0.8m @ 48.0g/t gold from 615m (ASX 07/07/20)2
0.8m @ 39.5g/t gold from 554.3m (ASX 07/07/20)2
5.3m @ 54.5g/t gold from 650.9m (ASX 27/05/20)2
DRDD229W1
DRDD407W4
DRDD425
DRDD225W1
DRDD218W1
DRDD218W2
DRDD429
DRDD426A
DRDD417
2.6m @ 10.0g/t gold from 626m (ASX 27/5/20)2
1.5m @ 168.8g/t gold from 651.7m incl 0.5m
@ 499.1g/t gold (ASX 27/5/20)2
2.5m @ 49.2g/t gold from 527.8m (ASX 27/5/20)2
10.3m @ 10.7g/t gold from 566.9m incl 2.9m
@ 35.6g/t gold (ASX 27/5/20)2
4.3m @ 9.1g/t gold from 701.9m (ASX 27/5/20)2
0.5m @ 54.2g/t gold from 716m (ASX 27/5/20)2
1.6m @ 48.0g/t gold from 640m (ASX 27/5/20)2
3.3m @ 22.5g/t gold from 618.1m (ASX 27/5/20)2
2.8m @ 9.4g/t gold from 661.9m (ASX 27/5/20)2
0.3m @ 45.6g/t gold from 645.5m (ASX 27/05/20)2
DRDD229W1
2.6m @ 10.0g/t gold from 626m (ASX 27/5/20)2
Figure 4: Long section of Bellevue Block Model showing indicated Resources in blue and Inferred
Resources in yellow.
EXPLORATION 25
INFILL DRILLING FROM
THE TRIBUNE AND
VIAGO DISCOVERIES
The maiden Indicated Resource has been underpinned by a substantial diamond drill program with up to eight rigs
operating on the project. A total of 157,000m of diamond drilling was completed during the year taking the total at the
project up to 240,000m. All conversion drilling has been conducted as NQ and HQ diamond core and has targeted a drill
intersection spacing between 20m to 40m for Indicated category.
The Viago/Vlad lode is a gently plunging lode set which extends to the south beneath the Bellevue lode and continues
to the north into the hanging wall at Bellevue. The Viago Lode is characterised by a high sulphide content similar to the
Deacon and Bellevue Lodes and is characterised by frequent visible gold. The Viago Lode remains open and further
extensional and infill drilling is scheduled in 2H 2020.
Recent infill results (announced as part of the Indicated Resource update) which have been included in the Mineral
Resource Estimate, include:
DRDD387W3
7.4m @ 15.4g/t gold from 573.8m and
0.3m @ 113.8g/t from 600m (ASX 07/07/2020)2
DRDD387W4
DRDD387W1
DRDD447
DRDD445
DRDD236
DRDD240
6.1m @ 17.7g/t gold from 560.9m (ASX 07/07/2020)2
0.3m @ 121.9g/t gold from 580.2m (ASX 07/07/2020)2
2.5m @ 11.5g/t gold from 382.1m (ASX 07/07/2020)2
1.3m @ 19.4g/t gold from 387m (ASX 07/07/2020)2
3.2m @ 20.8g/t gold from 596m (ASX 18/02/2020)2
4.7m @ 32.7g/t gold from 596m (ASX 18/02/2020)2
Viago North Lode
DRDD215
DRDD217
DRDD280
DRDD282
DRDD285
DRDD294
DRDD299
DRDD316
DRDD324
DRDD330
DRDD331
DRDD204
DRDD205
5.0m @ 5.5g/t gold from 395m (ASX 19/11/19)2
2.2m @ 6.1g/t gold from 415.1m (ASX 19/11/19)2
3.4m @ 4.8g/t gold from 352.1m (ASX 18/02/20)2
1.7m @ 37.8g/t gold from 120m (ASX 18/02/20)2
4.6m @ 3.3g/t gold from 375.8m (ASX 18/02/20)2
4.6m @ 10.4g/t gold from 376.5m (ASX 18/02/20)2
1.0m @ 10.6g/t gold from 394.7m (ASX 18/02/20)2
1.9m @ 5.8g/t gold from 409.3m (ASX 18/02/20)2
1.4m @ 10.6g/t gold from 383.7m (ASX 18/02/20)2
2.6m @ 9.3g/t gold from 380.4m (ASX 18/02/20)2
0.6m @21.4g/t gold from 440.6m (ASX 18/02/20)2
3.5m @ 3.1g/t gold from 441.8m (ASX 19/11/19)2
0.7m @ 15.9g/t gold from 422m (ASX 19/11/19)2
DRDD340
DRDD359
DRDD364
DRDD222
DRDD233
DRDD202
1.9m @ 14.5 g/t gold from 564.8m (ASX 18/02/20)2
1.4m @ 15.0g/t gold from 590.8m (ASX 18/02/20)2
6.0m @ 6.5g/t gold from 582m (ASX 18/02/20)2
5.0m @ 11.1g/t gold from 606m (ASX 19/11/19)2
3.0m @ 19.8g/t gold from 580m (ASX 19/11/19)2
2.1m @ 8.6g/t gold from 607.5m (ASX 19/11/19)2
Vlad Lode
DRDD316
DRDD288
DRDD293
DRDD335
DRDD338
DRDD349
DRDD350
12. m @ 5.5g/t gold from 237m (ASX 18/02/20)2
1.4m @ 11.9g/t gold from 205.8m (ASX 18/02/20)2
1.4m @ 11.9g/t gold from 205.8m (ASX 18/02/20)2
2.3m @ 7.7g/t gold from 217.5m (ASX 18/02/20)2
1.4m @ 7.3g/t gold from 259.1m (ASX 18/02/20)2
1.9m @ 23.1g/t gold from 224.7m (ASX 18/02/20)2
2.9m @ 15.3g/t gold from 184.2m (ASX 18/02/20)2
26 BELLEVUE GOLD LIMITED
Tribune Lode
The Tribune Lode was the first discovery at the Bellevue Gold Project since the resumption of exploration by Bellevue
Gold. Mineralisation at Tribune is outcropping and has been defined from surface. The lode has a steep easterly dip and is
situated in the hanging wall of the old Bellevue underground mine extending to the south. The Tribune Lode has a higher
quartz content and lower sulphide content than the Deacon and Viago Lodes, but is again characterised by fine grained
free gold. Mineralisation remains open down plunge.
Recent results which have been included in the Resource estimate, include:
DRDD153
DRDD171
DRDD157
DRDD168
DRDD158
DRDD137
3.2m @ 17.2g/t gold from 75.2m (ASX 21/05/20)2
4.5m @ 4.8g/t gold from 172.5m (ASX 21/05/20)2
7.0m @ 2.8g/t gold from 192.5m (ASX 21/05/20)2
1.1m @ 17.2g/t gold from 221.2m (ASX 21/05/20)2
2.2m @ 6.8g/t gold from 131m (ASX 21/05/20)2
2.2m @ 5.5g/t gold from 190.5m (ASX 21/05/20)2
DRCD020W
2.7m @ 22.6g/t gold from 146.4m (ASX 21/05/20)2
DRDD136
DRDD127
DRDD175A
DRDD181
DRDD166
DRDD171
0.3m @ 218.5g/t gold from 210m (ASX 21/05/20)2
3.6m @ 12.2g/t gold from 24.7m (ASX 21/05/20)2
3.5m @ 15.1g/t gold from 356m (ASX 11/07/19)2
2.4m @ 9.9g/t gold from 257m (ASX 11/07/19)2
2.6m @ 11.4g/t gold from 202m (ASX 11/07/19)2
4.5m @ 4.8g/t gold from 172m (ASX 11/07/19)2
Bellevue Lode
The Bellevue Lode was historically exploited between 1988-1997 and produced the bulk of the 800,000 ounces @ ~15g/t
gold of previous production. The Bellevue Lode is still host to significant metal with further mineralisation along strike to
the south and in parallel lodes not previously exploited during the historic mining operation.
Drilling targeting the recent Deacon discovery passes through the Bellevue Lode on the way to target depth with many of
the recent significant intersections being returned from that drill programme including the discovery of new high-grade
parallel footwall lodes.
Areas of Bellevue to the south and north of the Bellevue underground mine which are not in the footwall or vicinity of the
old mine are currently being drilled to 40 x 40 metre centres during 2H 2020/1H 2021.
Bellevue Lode
Results from the Bellevue mineralized shear immediately along strike south of the historic underground mine
(800,000oz mined @ ~15g/t gold) include:
DRDD328
DRDD355
2.3m @ 9.7g/t gold from 406m (ASX 18/02/20)2
2.4m @ 22.8g/t gold from 418.6m and 1.5m @
16.3g/t gold from 430m (ASX 18/02/20)2
Results from Bellevue Lode footwall and hanging wall lodes in the vicinity of the historic underground mine include:
DRDD296
DRDD302
DRDD305
DRDD313
DRDD287
DRDD229
2.9m @ 13.9g/t gold from 29.4m and 0.8m @
19.0g/t gold from 41m (ASX 18/02/20)2
2.65m @ 4.4g/t gold from 273m (ASX 18/02/20)2
3.5m @ 6.4g/t gold from 127.4m and 3.7m @
9.9g/t gold from 140m (ASX 18/02/20)
3.6m @ 4.0g/t gold from 147.6m (ASX 18/02/20)2
3.4m @ 11.9g/t gold from 99.4m (ASX 17/12/19)2
2.1m @ 7.0g/t gold from 84.0m (ASX 17/12/19)2
Hamilton Lode
DRDD250
DRDD242
DRDD295
DRDD305
DRDD306
DRDD308
0.9m @ 27.9g/t gold from 276m (ASX 17/12/19)2
2.8m @ 46.9g/t gold from 175m and 1.5m @ 36.4g/t gold
from 233m (new footwall lode) (ASX 17/12/19)2
0.5m @ 18.9g/t gold from 39.2m (ASX 17/12/19)2
3.7m @ 9.9g/t gold from 140m (ASX 17/12/19)2
2.5m @ 22.4g.t gold from 116.5m (ASX 17/12/19) 2
1.4m @ 7.0g/t gold from 436.6m (ASX 17/12/19)2
DRDD386
DRDD404
1.5m @ 89.8g/t gold from 424.1m (ASX 27/5/20)2
5.6m @ 7.5g/t gold from 90.3m (ASX 27/5/20)2
DRDD410A
DRDD412
2.4m @ 14.4g/t gold from 34.8m (ASX 27/5/20)2
0.3m @ 1,169.1g/t gold from 100m (ASX 27/5/20)2
EXPLORATION 27
METALLURGICAL
TESTWORK
During the year Bellevue completed the first phase of feasibility level metallurgical testwork at the project. The testwork
was conducted on ½ NQ core from the Bellevue, Tribune, Deacon and Viago lodes at the Bellevue Project. Samples were
processed at ALS laboratories in Perth for communition and gold extraction by conventional gravity and cyanide leach
gold recovery. All samples are from primary lode types.
Gravity and Leach Testwork Results3
A gravity and conventional leach testwork flowsheet consisting of standard Knelson gravity recovery followed by
cyanidation with oxygen sparge tested on the 106µm grind. All tests were conducted in saline water received from site
at pH 9.2, with a cyanide addition of 0.05%w/v.
Table 3: Gravity and combined gravity + leach gold recoveries from Bellevue Gold Project Lodes3
Grind
size
µm
Assay
Head grade
g/t
Recovered
Head grade
g/t
Gravity
Recovery
%
Au Extraction (%)
8 hr
12 hr
24 hr
48 hr
75
75
75
75
21.8
8.1
7.7
38.8
13.2
9.9
9.9
29.5
83.9
58.5
61.9
85.2
97.7
91.0
90.6
96.6
98.8
94.0
92.5
97.9
99.3
95.3
94.0
98.6
99.1
95.6
95.4
99.3
Au
Tail
g/t
0.12
0.43
0.46
0.22
Reagents (kg/t)
NaCN
Lime
0.46
0.52
0.52
1.17
2.88
3.36
3.13
3.33
Lode
Tribune
Bellevue
Deacon
Viago
Comminution testwork consisted of SMC Hardness testing,
Bond Crusher work index (Cwi), Bond Rod (Rwi) and Ball (Bwi)
work index and Abrasion index. Results of the Bond Ball work
index are in line with most Archaean lode gold systems in
Western Australia with results shown below in Table 4:
Table 4: BWI for Bellevue Gold Project Lodes3
106µm
Closing screen
BWI
(kWh/t)
Viago
Deacon
Tribune
Bellevue
16.3
16.1
17.2
15.7
Figure 5: Gravity concentrate recovered from the Viago
Lode 10 kg, sample showing abundant gold grains
Of note from the test results are the following points:
•
Exceptional gravity recoveries were returned across
the four lode sources, varying from 58.2% to 84.7%.
• Overall leach recoveries were very high, averaging 97.3%
across the four lodes, ranging from 95.4% to 99.3%.
• Recovery increasing when ground from 150μm down
to 75μm.
• Both lime and cyanide consumption are considered to
be at standard levels for the cyanidation of gold lodes
in saline water. The slight exception is the Viago Lode,
which has elevated cyanide consumption of 1.13kg/t.
While this is higher than all the other tests, it is still not
considered excessive.
Overall, the Bellevue lodes tested behave well when
subjected to typical gold recovery methods. They achieve
remarkably high gravity gold recoveries as well as overall
gold recoveries under standard processing conditions.
A size by assay on the four samples was conducted. All the
samples showed that the gold is largely evenly disseminated
across the size fractions, with no real bias towards fine or
coarse gold, with the exception of Viago, that has a higher
proportion of coarser gold.
28 BELLEVUE GOLD LIMITED
REGIONAL EXPLORATION-
A NEW HIGH-GRADE
GOLD DISCOVERY
A four-hole reverse circulation drill program was completed
at the Government Well Prospect, part of the Bellevue
Gold Project. Government Well is the first target to be
tested by BGL within the 20km of underexplored regional
Bellevue Trend. The target has been previously rock
chipped by Bellevue Gold with results up to 32g/t gold
from outcropping veins (ASX 11/4/2019)2 and a Sub Audio
Magnetic (SAM) survey completed at the prospect in 2019.
The Prospect is located aproximately 7.4km to the North
of the Bellevue Mine located in a position where the mine
trend bends slightly to the NW along the granite contact.
Mineralisation at the prospect is associated with pyrite and
quartz veins which outcrop from surface in some locations
and others are covered in shallow alluvial cover. Rock
chipping and field mapping have defined multiple parallel
trends over 1,200m of strike.
The first pass drilling program focused on the central 500m
where shallow previous drilling (typical hole depth ~25m)
defined a number of significant drill results.
Drill hole DRRC214 intersected two zones of significant
quartz veining returning two high grade gold intervals of
3m @ 9.7g/t gold from 19m and 3m @ 11.6g/t gold from
33m within an overall interval of 17m @ 4.2g/t gold
(ASX 10/6/2020).2
DRRC217 was collared 180m to the south of DRRC214 and
about 20m down dip of the historical drill result of 2m @
18.7g/t gold (ASX 10/6/2020)2 and results are still pending
for this drillhole. DRRC217 intersected pyrite quartz veining
with visible gold observed in chips over 1m from 54m.
Follow up diamond drilling is planned at the prospect
to determine whether the shallow pyrite is reflective of
retrograde pyrhotite mineralisation suitable for targeting
with DHEM as is the case at Bellevue or whether it reflects
a new mineralisation style at the project.
The Company has dedicated a significant exploration
budget to the regional exploration package, including the
Yandal Gold Project during the 2021 financial year including
the first modern drill testing at the project
KATHLEEN VALLEY
>4km long >5ppb Au-in-soil anomalism
Multiple Untested EM Conductors
Recent rock chips to 88g/t Au and 5% Cu
GOVERNMENT WELL
>4km Gold Trend
17m @ 4.2g/t gold from 19m
Historical Drilling
Figure 6: Overview map showing the 20km of
regional strike extent north of the Bellevue Mine
and the location of the exploration program at
the Government Well prospect. MGA94 Zone 51N
EXPLORATION 29
Figure 7: Central Deacon Lode - hole DRDD218 high-grade
mineralised shoot with massive pyrrhotite, trace chalcopyrite,
quartz clasts and numerous visible gold grains.
Interval assayed 4.4m @ 62.4g/t gold from 692m (ASX 10/9/19).2
Figure 10: Tribune Lode DRDD337 mix of smokey and milky
quartz, hosted in moderate biotite/amphibole shearing. Overall
20% sulphide, locally semi-massive with fracture fill to cataclastic
textures, chalcopyrite minor with pyrrhotite dominant. Overall
+40 flecks of visible gold.
Interval assayed 5.7m @ 17.4g/t gold (ASX 18/2/20).2
Figure 8: Central Deacon Lode diamond drill core from DRDD295,
drill hole extends the central previously tested DHEM plate to
the north, 25% pyrrhotite, trace chalcopyrite and trace visible
gold mineralization.
Interval assayed 3.0m @ 10.4g/t gold (ASX 17/12/19).2
Figure 9: Northern Deacon diamond drill core from DRDD313,
drill hole confirms high-grade mineralization associated with
the DHEM plates to the north, 5% pyrrhotite, trace chalcopyrite
and trace visible gold mineralization. Drill hole is outside current
resource area.
Interval assayed 3.0m @ 12.0g/t gold (ASX 17/12/19).2
Figure 11: Tribune Lode DRDD360 dominant milky quartz, hosted
in moderate biotite/amphibole shearing. Overall 30% sulphide,
locally semi-massive with fracture fill to cataclastic textures,
chalcopyrite minor with pyrrhotite dominant.
Interval assayed 3.2m @ 9.8g/t gold (ASX 18/2/20).2
Figure 12: Tribune Lode DRDD382 - Tribune North milky and
smokey quartz, hosted in moderate biotite/amphibole shearing.
Overall 30% sulphide, locally semi-massive with fracture fill to
cataclastic textures, chalcopyrite minor with pyrrhotite dominant
+35 flecks of gold logged.
Interval assayed 2.9m @ 36.5g/t gold (ASX 18/2/20).2
30 BELLEVUE GOLD LIMITED
Figure 13: Viago Lode DRDD240. Two main zones of
mineralisation separated by 1.4m of internal waste, both
mineralised zones with 70% smokey quartz hosted in moderate
biotite/amphibole shearing. Overall 25-40% sulphide, locally
semi-massive with fracture fill to cataclastic textures, high
proportion of chalcopyrite to pyrrhotite observed in the hanging
wall zone. Overall +80 flecks of visible gold with +12 flecks in the
hanging wall zone and +75 flecks in footwall zone.
Interval assayed 4.7m @ 32.7g/t gold (ASX 18/2/20).2
Figure 16: Drill core from Tribune infill diamond core hole DRDD247
high-grade mineralisation associated with ~30% semi massive
pyrrhotite, trace disseminated chalcopyrite and fine-grained
visible gold.
Interval assayed 3m @ 32.2g/t gold from 162m (ASX 19/11/19).2
Figure 17: Drill core from Tribune infill diamond core hole
DRDD257 high-grade mineralization associated with ~15% semi
massive pyrrhotite, trace disseminated chalcopyrite and fine-
grained visible gold.
Interval assayed 9.6m @ 14.1g/t gold from 107.9m
(ASX 19/11/19).2
Figure 14: Viago Lode DRDD236. Mineralisation associated with
strong biotite altered shearing with sharp strain gradients in
hanging wall and footwall to undeformed dolerite. 80% of interval
smokey quartz vein hosting 20% sulphide, locally semi-massive
(over 40 cm), with typical cataclastic/fracture fill textures. Biotite
altered shear observed as laminations within the vein as well as
clasts within the sulphide. +10 flecks of visible gold observed.
Interval assayed 3.2m @ 20.8g/t gold (ASX 18/2/20).2
Figure 15: SOUTHERN STEP OUT diamond drill core from
DRDD273, high-grade lode mineralization confirmed at the new
DHEM plate at the southern extent of the currently tested strike
of Deacon; 10% pyrrhotite, trace chalcopyrite and trace visible
gold mineralization.
Interval assayed 2.3m @ 39.0g/t gold (ASX 17/12/19).2
EXPLORATION 31
Figure 18: Northern STEP OUT diamond drill core from DRDD295,
drill hole confirms high-grade mineralization associated with the
DHEM plates to the north, 5% pyrrhotite, trace chalcopyrite and
trace visible gold mineralization.
Interval assayed 3.0m @ 12.0g/t gold. (ASX 17/12/19).2
Figure 20: Recent Drill Hole DRDD237, semi massive pyrrhotite,
trace chalcopyrite and fine-grained disseminated trace visible
gold mineralization from Deacon.
Interval assayed 3.8m @ 13.9g/t Au from 667.1m (ASX 2/10/19).2
Figure 19: Bellevue South Lode diamond core hole DRDD191
situated above the Viago Lode high-grade mineralization
associated with ~5% semi-massive pyrrhotite, trace
disseminated chalcopyrite and fine-grained visible gold.
Interval assayed 9.8m @ 5.0g/t gold (ASX 5/8/19).2
Figure 21: Deacon high grade mineralised shoot - massive
pyrrhotite with trace chalcopyrite, quartz clasts and numerous
visible gold grains in DRDD218.
Interval assayed 4.4m @ 62.4g/t gold from 692m. (refer ASX
10/09/19).2
Yandal Gold Project
The Yandal Project (867km2) is a large advanced exploration
project, located 40km to the east of the Bellevue Gold
Project. The Yandal project is the dominant land position
between the major Bronzewing (5Moz) and Darlot Gold
(4.5Moz) gold projects.
Significant historical untested anomalous gold in soils and
surface sampling await follow up and Bellevue geologists
have identified a number of highly prospective targets that
will be drill tested in the coming field seasons.
32 BELLEVUE GOLD LIMITED
32 BELLEVUE GOLD LIMITED
Resources
& Reserves
Statement
The Company announced to the ASX on 7 July 2020
an updated Inferred Resource Estimate of 4.72Mt
@ 9.2g/t gold for 1.4 million ounces of gold and a
maiden Indicated Resource Estimate of 2.31Mt @
11.6g/t gold for 0.86 million ounces of gold for the
Bellevue Gold Project.
RESOURCES & RESERVES STATEMENT 33
Updated Mineral Resource Estimate - Bellevue Gold Project
The current global Mineral Resource for the Bellevue Gold Project (as at 7 July 2020) is reported below:
Independent JORC 2012 Mineral Resource Estimates at selected lower cut-off grades
Lower
Cut-off
g/t
2.0
3.51
5.0
Indicated
Inferred
Total
Tonnes
Mt
Grade
g/t
2.68
2.31
1.93
10.3
11.6
13.0
Gold
Moz
0.89
0.86
0.81
Tonnes
Mt
Grade
g/t
5.77
4.72
3.74
8.0
9.2
10.5
Gold
Moz
1.49
1.40
1.26
Tonnes
Mt
Grade
g/t
8.46
7.03
5.68
8.8
10.0
11.3
Gold
Moz
2.38
2.26
2.07
1. 3.5g/t gold lower cut off totals rounded to reflect acceptable precision
Independent JORC 2012 Domain Breakdown of Indicated & Inferred Mineral Resource Estimates
Domain1
Viago
Deacon
Tribune
Hamilton
Bellevue Remnant
Vanguard Pit
Southern Belle
Total2
Deacon and Viago Main Combined
1. Mineral Resources are reported at a block cut-off grade pf 3.5g/t Au.
2. Figures may not add up due to rounding.
Indicated
Inferred
Tonnes
Mt
0.89
0.43
0.64
0.26
-
0.09
-
2.31
0.97
Grade
g/t
11.4
18.0
8.1
9.3
-
6.8
-
11.6
15.5
Gold
Moz
Tonnes
Mt
Grade
g/t
Gold
Moz
0.33
0.25
0.18
0.08
-
0.02
-
0.86
0.48
0.53
1.50
0.39
0.66
1.28
0.04
0.36
4.72
1.8
8.5
9.2
5.8
7.5
11.1
5.4
10.4
9.2
9.3
0.14
0.44
0.07
0.16
0.46
0.06
0.12
1.40
0.53
Previous Mineral Resource Estimate - Bellevue Gold Project
The Inferred Mineral Resource for the Bellevue Gold Project as at 15 July 2019 is reported below:
Independent JORC 2012 Inferred Mineral Resource Estimate at selected lower cut-off grades
Lower Cut-Off
Tonnes (Mt)
Grade (g/t)
Gold (Moz)
2.0 g/t
3.5 g/t
5.0 g/t
6.5
5.0
3.8
9.2
11.1
13.3
1.9
1.8
1.6
Totals rounded to reflect acceptable precision, sub totals may not reflect global total resources
Independent JORC 2012 Global Inferred Mineral Resource domains reported at 3.5g/t cut-off grades
Domain1
Bellevue Surrounds
Viago and North Viago
Tribune and North Tribune
Southern Belle
Total2
1. Mineral Resources are reported at a block cut-off grade pf 3.5g/t Au.
2. Figures may not add up due to rounding.
Tonnes (Mt)
Grade (g/t)
Gold (Moz)
2.3
1.3
1.0
0.4
5.0
9.6
16.1
8.1
10.4
11.1
0.7
0.7
0.3
0.1
1.8
34 BELLEVUE GOLD LIMITED
Classification
The Mineral Resource has been classified as a combination
of Indicated and Inferred. The classification is based on the
relative confidence within the mineralised domain and is
tempered by the drill spacing which has been substantially
infilled since the last Resource updates. In areas where the
drill spacing is better than 40m strike by 40m down dip,
relative confidence in the geological and mineralisation
interpretations allow for classification of the grade
estimates as Indicated. In other areas where the drilling
has a greater spacing than 40m strike by 40m down dip
where the confidence in the geological and mineralisation
interpretation can only be considered low to moderate, the
grade estimates have been classified as Inferred.
Review of Material Changes
The new Resource is based on a significant amount of infill
drilling within existing resource areas and new extensional
drilling at the known lodes, and supersedes the previous
estimate completed during the financial year (refer to ASX
announcement titled “Bellevue Resource increases 23% -
Maiden Resource at Deacon” dated 24 February 2020).
The Indicated Resources are now drilled to a 40m x 40m
or 40m x 20m drill spacing. There has been a substantial
amount of infill and extensional drilling completed during
the reported year. This has resulted in a material change
to both the Global Resource Inventory and classification
relative to that contained in the 2019 Annual Report.
The Resource has been independently estimated (see
Competent Person statement). The estimate has been
produced by 3D modelling of the lode systems and grade
estimation using a combination of ordinary kriging and
inverse distance algorithm.
Governance Controls
All Mineral Resource estimates are prepared by Competent
Persons using data that they have reviewed and consider
to have been collected using industry standard practices
and which, to the most practical degree possible are
representative, unbiased, and collected with appropriate
QA/QC practices in place. All Mineral Resource estimates
quoted above have been estimated or independently
verified by independent consultant Mr Brian Wolfe in
accordance with the “Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves”
(the JORC Code) (2012 edition).
RESOURCES & RESERVES STATEMENT 35
Bellevue exploration Geologists in the field.
36 BELLEVUE GOLD LIMITED
36 BELLEVUE GOLD LIMITED
Competent Person’s
Statement, Notes
and Cautionary
Statements
Competent Person Statements
The information in this announcement that relates to
Mineral Resources at the Bellevue Gold Project is based
on, and fairly represents, information and supporting
documentation prepared by Mr Brian Wolfe, an
independent consultant specialising in Mineral Resource
estimation, evaluation and exploration. Mr Wolfe is a
Member of the Australian Institute of Geoscientists and
is an employee of IRS International Solutions Pty Ltd, a
company engaged by Bellevue. Mr Wolfe does not hold
securities in Bellevue. Mr Wolfe has sufficient experience
which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the Australasian Code
for Reporting of Exploration Results, Mineral Resources
and Ore Reserves (the JORC Code). Mr Wolfe has
reviewed the contents of this Annual Report and consents
to the inclusion in this report of all technical statements
based on his information in the form and context in which
they appear.
Information in this announcement that relates to
exploration results is based on, and fairly represents,
information and supporting documentation prepared by
Mr Sam Brooks, an employee of Bellevue Gold. Mr Brooks
is a Member of the Australian Institute of Geoscientists.
Mr Brooks has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the
2012 Edition of the JORC Code. Mr Brooks is a full-
time employee of, and holds securities in, Bellevue
Gold Limited and consents to the inclusion in this
Annual Report of all technical statements based on his
information in the form and context in which they appear.
COMPETENT PERSONS STATEMENT, NOTES AND CAUTIONARY STATEMENTS 37
Forward Looking Information
This report contains forward-looking statements. Wherever
possible, words such as “intends”, “expects”, “scheduled”,
“estimates”, “anticipates”, “believes”, and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, have
been used to identify these forward-looking statements. Although
the forward-looking statements contained in this report reflect
management’s current beliefs based upon information currently
available to management and based upon what management
believes to be reasonable assumptions, the Company cannot be
certain that actual results will be consistent with these forward-
looking statements. A number of factors could cause events
and achievements to differ materially from the results expressed
or implied in the forward-looking statements. These factors
should be considered carefully and prospective investors should
not place undue reliance on the forward-looking statements.
Forward-looking statements necessarily involve significant
known and unknown risks, assumptions and uncertainties that
may cause the Company’s actual results, events, prospects and
opportunities to differ materially from those expressed or implied
by such forward-looking statements. Although the Company
has attempted to identify important risks and factors that could
cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be
other factors and risks that cause actions, events or results not
to be anticipated, estimated or intended, including those risk
factors discussed in the Company’s public filings. There can be
no assurance that the forward-looking statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
prospective investors should not place undue reliance on
forward-looking statements. Any forward-looking statements are
made as of the date of this report, and the Company assumes
no obligation to update or revise them to reflect new events or
circumstances, unless otherwise required by law.
This report may contain certain forward-looking statements
and projections regarding: estimated, resources and reserves;
planned production and operating costs profiles; planned capital
requirements; and planned strategies and corporate objectives.
Such forward looking statements/projections are estimates for
discussion purposes only and should not be relied upon. They
are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors many of
which are beyond the control of the Company. The forward
looking statements/projections are inherently uncertain and
may therefore differ materially from results ultimately achieved.
The Company does not make any representations and provides
no warranties concerning the accuracy of the projections, and
disclaims any obligation to update or revise any forward looking
statements/projects based on new information, future events or
otherwise except to the extent required by applicable laws.
End Notes
1. Refer ASX announcement on 7 July 2020 titled “Bellevue Gold –
Maiden Indicated Resource 860,000oz at 11.6g/t gold”, available at
www.asx.com.au/asxpdf/20200707/pdf/44k9jf7sjy2mvx.pdf. The
breakdown of the global Mineral Resource (at a cut-off grade of 3.5g/t
gold) is provided below, with further detail at page 33 of this report.
Resource
Indicated
Inferred
Global
Tonnes (Mt) Grade (g/t) Gold (Moz)
2.31
4.72
7.03
11.6
9.2
10.0
0.86
1.40
2.26
2. For full details of these Exploration results, refer to the said
Announcement or Release on the said date.
3. For full details of metallurgical test results, refer ASX
announcement on 24 June 2020 titled “Metallurgical Tests
Return Exceptionally High Recoveries”, available at www.
asx.com.au/asxpdf/20200624/pdf/44jwwpht62mxvp.pdf.
The Company notes that these metallurgical results have
been updated to the correct immaterial calculation error.
While the overall gravity recoveries are still high and there
are no material changes in the metallurgical testwork results
as the testwork hardness, final tails residue and reagent
consumptions remain unchanged.
4. Cash balance as of 30 June 2020 net of creditors plus the
July 2020 placement (net of costs) and the SPP.
Disclaimer
This report has been prepared by Bellevue Gold Limited (the
Company) based on information from its own and third-party
sources and is not a disclosure document. No party other than
the Company has authorised or caused the issue, lodgement,
submission, despatch or provision of this report, or takes any
responsibility for, or makes or purports to make any statements,
representations or undertakings in this announcement. Except
for any liability that cannot be excluded by law, the Company
and its related bodies corporate, directors, employees,
servants, advisers and agents (Affiliates) disclaim and accept
no responsibility or liability for any expenses, losses, damages
or costs incurred by you relating in any way to this report
including, without limitation, the information contained in or
provided in connection with it, any errors or omissions from it
however caused, lack of accuracy, completeness, currency or
reliability or you or any other person placing any reliance on
this announcement, its accuracy, completeness, currency or
reliability. This report is not a prospectus, disclosure document
or other offering document under Australian law or under
any other law. It is provided for information purposes and
is not an invitation nor offer of shares or recommendation
for subscription, purchase or sale in any jurisdiction. This
report does not purport to contain all the information that
a prospective investor may require in connection with any
potential investment in the Company. Each recipient must
make its own independent assessment of the Company before
acquiring any shares in the Company (Shares).
Twin Boom Development Jumbo Scaling The New Paris Portal
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BELLEVUE GOLD LIMITEDANNUAL REPORT 2020
40 BELLEVUE GOLD LIMITED
40 BELLEVUE GOLD LIMITED
Directors’
Details
The Directors present their report on the
consolidated financial statements of Bellevue
Gold Limited (“Company” or “Bellevue”) and
the entities controlled (“the Group”), for the
year ended 30 June 2020.
DIRECTORS' REPORT 41
Directors’ Details
The following persons were Directors of the Company during or since the end of the financial year:
kevin Tomlinson
Non-Executive Chairman - MSc Geology, Grad Dip.
Finance and Investment, Banking, Corporate, Finance,
and Securities Law
Mr Tomlinson has over 35 years’ experience in mining and
finance with the Toronto, Australian and London stock
markets. He was previously Managing Director of Investment
Banking at Westwind Partners and Stifel Nicolaus, raising
significant equity and providing M&A corporate advice. He
graduated as a structural geologist and completed his MSc
on narrow high-grade gold veins in Victoria, Australia and
has worked in senior roles for mining companies including
Plutonic Resources. Mr Tomlinson is a Fellow of the Chartered
Institute of Securities and Investment and a Liveryman of the
Worshipful Company of International Bankers.
Director since 9 September 2019.
Mr Tomlinson is a member of Bellevue’s Nomination,
Remuneration and Culture Committee and is a member
of the Audit & Risk Management Committee.
Current Listed Directorships:
• Cardinal Resources Limited (Appointed 7 November 2016)
Stephen Parsons
Managing Director - BSc (Hons) Geology, MAusIMM
Mr Parsons was previously the Managing Director of
Gryphon Minerals Ltd, which he founded and listed on
the Australian Securities Exchange, growing the company
to be included on the ASX 200 group of companies.
During that time, Mr Parsons oversaw the discovery and
delineation of the 3.6 Million oz Banfora Gold Project in
Burkina Faso in West Africa and the subsequent takeover
of the company for $100 Million by a significant North
American gold company in late 2016. Mr Parsons has over
20 years’ experience in the mining industry with a proven
track record of mineral discoveries, corporate growth,
international investor relations and creating shareholder
wealth. Mr Parsons has an honours degree in Geology.
Director since 31 March 2017.
Current Listed Directorships:
• Blackstone Minerals Ltd (Appointed 30 October 2017)
• Auteco Minerals Limited (Appointed 28 January 2020)
Past Listed Directorships (last 3 years):
• Centaurus Metals Limited (Appointed 31 March 2017
• Samco Gold Limited (Appointed 15 January 2012)
to 28 February 2019)
Past Listed Directorships (last 3 years):
• African Gold Limited (Appointed 1 February 2018
• Xanadu Mines Limited (Appointed 29 May 2017
to 1 April 2020)
to 30 April 2019)
•
Infinity Lithium Corporation (Appointed 8 June 2017
to 27 November 2019)
42 BELLEVUE GOLD LIMITED
Michael Naylor
Executive Director, Chief Financial
Officer and Company Secretary
- Bcom., CA
Fiona Robertson
Non-Executive Director
- MA (Oxon) Geology,
FAICD, MAusIMM
Mr Naylor has 24 years’ experience
in corporate advisory and public
company management since
commencing his career and qualifying
as a chartered accountant with Ernst
& Young. Mr Naylor has been involved
in the financial management of
mineral and resources focused public
companies serving on the board
and in the executive management
team focusing on advancing and
developing mineral resource assets
and business development.
Mr Naylor has worked in Australia and
Canada and has extensive experience
in financial reporting, capital raisings,
debt financings and treasury
management of resource companies.
Director since 24 July 2018.
Current Listed Directorships:
Ms Robertson has more than 40
years’ experience in corporate
finance. She has worked previously for
The Chase Manhattan Bank in London,
New York and Sydney; as well as CFO
of ASX listed Delta Gold Limited for
eight years. She is currently a Non-
Executive Director of ASX listed
Whitehaven Coal Limited.
Ms Robertson was named 2017
Gender Diversity Champion in
Australian Resources by ‘Women in
Mining & Resources National Awards’
& 2017 Gender Diversity Champion
in NSW Mining in the NSW Minerals’
Council’s Women in Mining Awards.
Ms Robertson chairs Bellevue’s Audit
and Risk Management Committee
and is a member of the Nomination,
Remuneration and Culture Committee.
• Auteco Minerals Limited (Appointed
Director since 13 May 2020.
Shannon Coates
Non-Executive Director - LLB,
BJuris, GAICD, ACIS/ACSA
Ms Coates has more than 25
years’ experience in corporate
law and compliance to publicly
listed companies across multiple
jurisdictions. Shannon is a qualified
lawyer, Chartered Secretary and
graduate of the AICD’s Company
Directors course.
She is a past recipient of the
West Australian Women in Mining
scholarship & was selected for the
AICD Chairman’s Mentoring Program.
Shannon is company secretary to a
number of ASX companies, including
Mincor Resources, Tap Oil and ASX-
200 Nearmap and is a Non-Executive
Director of ASX listed Vmoto.
Ms Coates chairs Bellevue’s
Nomination, Remuneration and
Culture Committee and is a member
of the Audit & Risk Management
Committee.
30 November 2018)
Past Listed Directorships
(last 3 years):
Current Listed Directorships:
Director since 13 May 2020.
• Whitehaven Coal Limited
Current Listed Directorships:
(Appointed 16 February 2018)
• Vmoto Limited
• Tawana Resources NL (from 1
January 2015 to 31 October 2017)
Past Listed Directorships
(last 3 years):
(Appointed 22 May 2014)
Past Listed Directorships
(last 3 years):
• Equator Resources Limited (from 15
February 2016 to 15 February 2017)
• Helix Resources Limited
(from 28 November 2016 to
16 February 2018)
• Heron Resources Limited (from 9
April 2015 to 31 July 2020)
• Flinders Mines Limited (from 20
June 2018 to 25 November 2019)
• Kopore Metals Limited (from 14
October 2015 to 16 March 2020)
Raymond Shorrocks
Mr Shorrocks resigned as a Director and Non-Executive
Chairman on 9 September 2019.
Company Secretary
Michael Naylor
Mr Naylor has been Company Secretary since 1 December
2017. Refer above for Mr Naylor’s experience.
DIRECTORS' REPORT 43
Directors’ Meetings
The number of Directors’ meetings (including meetings of Committees of Directors) held during the year, and the number
of meetings attended by each Director is as follows:
Director meetings
Held
While
Audit & Risk
Management
Committee
Meetings
Held
While
Nomination,
Remuneration and
Culture Committee
Held
While
Director name
Director Attended
Director Attended
Director Attended
Kevin Tomlinson (Appointed 9 September 2019)
Stephen Parsons
Michael Naylor
Fiona Robertson (Appointed 13 May 2020)
Shannon Coates (Appointed 13 May 2020)
Raymond Shorrocks (Resigned 9 September 2019)
All Directors were eligible to attend all meetings held.
1. Note that Mr Parsons and Mr Naylor were invitees to the meeting.
3
4
4
1
1
1
3
4
4
1
1
1
1
11
11
1
1
-
1
11
11
1
1
-
-
-
-
-
-
-
-
-
-
-
-
-
Principal Activities
The principal activity of the Group during the year was exploration and early works development in relation to the
Bellevue Gold Project.
The only change in activities was the commencement of early works and pre-development activities at the Bellevue Gold Mine.
There have been no other significant changes to the nature of these activities during the year.
Bellevue Geologist logging lode
44 BELLEVUE GOLD LIMITED
OPERATING AND
FINANCIAL REVIEW
Operations Review
Exploration
The 2020 financial year has been transformational for the company, having delivered on a number of key milestones
towards project growth and advancement towards development. The Bellevue Gold Project now ranks as one of the
highest grade and most significant undeveloped gold projects in the world; with a high-grade and growing Global Mineral
Resource (2.3Moz @ 10g/t 1gold), including a robust and high confidence Indicated Resource (0.86 Moz @ 11.6 g/t gold)1,
exceptional conventional metallurgical recoveries, and granted mining leases in a tier 1 jurisdiction.
During and immediately after the year the Company achieved the following:
• Delivery of a maiden Indicated Resource of 0.86Moz @ 11.6g/t gold1, and an increase in the Global Mineral Resource to
2.3Moz @ 10.0g/t gold1. A total of 324 diamond holes for 157,000m were drilled taking the total diamond metres at the
Project to 240,000m. The Bellevue Mineral Resource Estimate has been independently estimated and is based on high
confidence diamond drilling and ranks as one of the most significant undeveloped high-grade gold discoveries globally.
Included in the Indicated Resource is a very high-grade core of 0.48Moz @ 15.5g/t gold1 at the Deacon and Viago
Lodes. This area is within 300m of existing historical development and remains open in all directions, with a significant
Inferred Resource that will be targeted with future conversion drilling.
•
• Delivery of the Deacon Lode from a conceptual target to a significant new high-grade gold discovery, with over 2.2km of proven
strike and the lode remaining open with multiple new high priority targets. Drill results from Deacon during the year included:
DRDD218
DRDD130
DRDD453A
DRDD444W1
DRDD106W1
4.4m @ 62.4g/t gold from 692m (ASX 10/9/19)2
DRDD229W1
2.6m @ 10.0g/t gold from 626m (ASX 27/5/20)2
3.6m @ 18.3g/t gold from 654.6m and 2.2m @
38.0g/t gold from 654.6m (ASX 5/8/19)2
DRDD407W4
1.5m @ 168.8g/t gold from 651.7m incl
0.5m @ 499.1g/t gold (ASX 27/5/20)2
5.0m @ 23.5g/t gold from 481.0m (ASX 17/12/19)2
DRDD425
2.5m @ 49.2g/t gold from 527.8m (ASX 27/5/20)2
3.1m @ 25.5g/t gold from 614.5m (ASX 17/12/19)2
DRDD225W1
5.3m @ 54.5g/t gold from 650.9m (ASX 27/5/20)2
10.3m @ 10.7g/t gold from 566.9m incl
2.9m @ 35.6g/t gold (ASX 27/5/20)2
• Confirmation through testwork that the Bellevue Mineralisation has exceptional conventional gravity and leach characteristics
with gravity recoveries up to 85% and average gold leach recovery up to 97.3% across the Bellevue Lodes3.
• New Discovery at the Government Well prospect located 7km to the north of the Bellevue Mine, with initial results
including 17m @ 4.2g/t gold (ASX 10/6/2020)2 from 19m - A new regional gold discovery.
DIRECTORS' REPORT 45
Development and Early Works
The safety systems required to support a growing
operation have continued to be developed as the project
grows and Bellevue Gold is pleased to report zero lost time
injuries at the project throughout the period.
COVID-19 management practices were implemented with
a host of measures designed to protect the health and
wellbeing of our staff, contractors, and local communities.
These have had minimal overall effect to the workforce
and site-based activities have largely continued as
normal. There were no Bellevue Gold or contractor partner
employees affected by COVID-19 throughout the period.
The appointment of our Chief Operating Officer, Mr Craig
Jones, in late December, has provided support and
direction as the operational activities on site have ramped
up in preparation for our anticipated rehabilitation of the
historical decline to enable early and cost-effective access
to the defined resources of the project.
Dewatering activities commenced at site with the water
level below the 1236 Level, about 250m below surface.
Dewatering progressed on budget and is beyond a depth
where to planned decline rehabilitation will be required.
The underground workings consist of over 28km of
underground development and have the potential to deliver
significant savings in upfront capex.
Access to the underground workings for infill and resource
definition drilling should allow for a significantly lower
drilling cost, more rapid completion of resource definition
and a potential fast-track into production.
The dewatering of historical excavations has allowed for
detailed inspections of the workings to occur for planned
rehabilitation activities. Comprehensive geotechnical
inspections have resulted in designed ground support
standards suitable for the planned development works.
At the time of this report, the new decline portal has been
established and the decline construction activities are
progressing well. The new decline is being constructed at
appropriate dimensions to allow for future use with modern
mining equipment.
Geotechnical programs have been completed to support
both the creation of the portal to access the new decline
and support ongoing mining studies.
Preliminary economic studies have begun with a focus
on evaluating mining methods and potential production
rates, for both open pit and underground opportunities.
Indications from these studies support the concept of
utilising the existing historical development to gain early
access to Resources at Viago and Deacon.
Underground access activities Resources at commenced
in August 2020 following an in-depth tendering process
culminating with the appointment of GBF Mining, a part
of the Macmahon group of companies. GBF/Macmahon
will re-establish the existing decline for mechanised
use at Bellevue which will also enable The Company to
construct underground drilling platforms. These platforms
will accelerate the infill-drilling program and reduce costs
associated with drilling out the resource.
Portal support works have recently been completed in
readiness for the underground mining contractor to establish
the new portal, with onsite contractors performing the works
as per the geotechnical guidelines recently established.
Additional infrastructure projects are occurring in parallel
with the establishment of power generation and electrical
distribution to allow the works to commence.
Refer to the operations review in the front section of the
Annual Report for more detail on the operational activities
for the year ended 30 June 2020.
Refer later in the Report for the corporate review.
Financial Results for the period
The Group’s cash position as at 30 June 2020 was
$24.2 million with an additional $5.0 million cash on term
deposit and a market capitalisation of $726 million.
The Group’s consolidated net loss for the year ended
30 June 2020 was $5,687,302 (2019: net loss $7,146,369).
The loss included the following items:
• Share-based payment expense $1.7 million
(2019: $3.6 million);
• Employee benefits expense of $1.2 million
(2019: 0.9 million); and
• Corporate costs of $1.0 million (2019: $1.1 million).
The Group’s net assets increased to $95,510,000
(2019: $50,852,000).
46 BELLEVUE GOLD LIMITED
Share Placements and Issues
During the financial year, the Company issued the following
shares, excluding options and performance rights exercised:
Date
No. of
shares
Price per
share
$
Amount
raised
before
costs
$
30/07/19
32,382,869
0.57
18,458,235
01/04/20
88,487,182
0.30
26,546,155
Shares issued on exercise of options
During the financial year, the Company issued the following
shares on exercise of options:
Date
25/07/19
09/08/19
No. of
shares
1,596,550
5,903,450
Price per
share
$
0.1365
0.1365
Amount
$
217,929
805,820
09/08/19
10,000,000
0.035
350,000
09/08/19
09/08/19
21/08/19
2,500,000
2,500,000
3,750,000
30/08/19
10,000,000
20/03/20
15,000,000
20/03/20
16/06/20
5,000,000
2,500,000
0.25
0.30
0.05
0.10
0.04
0.035
0.35
625,000
750,000
187,500
1,000,000
600,000
175,000
875,000
Shares issued on vesting of performance rights
During the financial year, the Company issued the following
shares on vesting of performance rights:
Performance Rights Issued
During the financial year, the Company granted
the following performance rights which convert to shares
subject to the safistication of certain performance and/or
retention milestones:
Performance
rights
400,000
250,000
100,000
600,000
10,084,798
Grant date
Expiry date
26/08/19
06/09/19
15/10/19
05/11/19
16/03/20
31/03/21
30/09/21
31/07/21
05/11/24
16/03/25
Corporate Review
Bellevue Gold added to S&P/ASX 300 Index
Effective 23 September 2019, Bellevue Gold was added
to the S&P ASX 300 index.
Management Appointments
Chief Operating Officer
In December 2019, the Company appointed highly
experienced mining executive Mr Craig Jones to the newly
created role of Chief Operating Officer (COO). Mr Jones
is a qualified mining engineer with more than 26 years’
experience in successful underground mining in gold and
other commodities.
Having spent more than seven years with leading Australian
resource company Northern Star Resources Limited
(ASX:NST), Mr Jones led both the Paulsen’s and Plutonic
Gold Mines as the General Manager. In addition, Mr Jones
was involved in business development and integration roles
where he made a significant contribution to the growth of
the company.
Date
15/10/19
09/04/20
No. of shares
250,000
3,650,000
Mr Jones brings an abundance of relevant gold mining
experience to Bellevue and its high-grade flagship Bellevue
Gold Project in Western Australia. Craig will lead the
Bellevue team in the advancement of the project from
exploration to feasibility and potential development.
Options Issued
During the financial year, no options were granted over the
ordinary shares of the Company.
Head of Corporate Development
In February 2020, Bellevue appointed highly experienced
resources analyst and investor relations executive Luke
Gleeson as Head of Corporate Development. Mr Gleeson
was previously Head of Investor Relations and a Business
Development officer with ASX-listed gold producer
Northern Star Resources Limited (ASX: NST) for five years.
During this time, he was heavily involved in Northern Star’s
successful program of asset acquisitions. As part of this
process, he played a key role in securing substantial equity
funding and communicating the transactions to the global
analyst and investment community.
Prior to joining Northern Star, he spent seven years
DIRECTORS' REPORT 47
impacts of its exploration and operation of the Bellevue
Gold Project, with an appropriate focus placed on
compliance with environmental regulations.
A potential environmental incident was notified to Bellevue
on 31 August 2020 which is being investigated by
Bellevue and the Department of Water and Environmental
Regulation. Refer Note 18 to the financial statements for
further details.
No other breaches have occurred or have been notified by any
Government agencies during the year ended 30 June 2020.
Indemnification and Insurance of Directors
and Officers
The Company has entered into a Deed of Indemnity,
Insurance and Access with each of the Directors and
Officers which will indemnify them against liabilities incurred
to a third party (not being the Company or a related body
corporate of the Company) as a Director or Officer of the
Company or a related body corporate of the Company.
The liability insured is the indemnification of the Company
against any legal liability to third parties arising out of any
Directors or Officers duties in their capacity as a Director or
Officer other than indemnification not permitted by law.
The Company has, during the financial year, paid an
insurance premium in respect of an insurance policy
for the benefit of the Directors, secretaries, executive
officers and employees of the Company and any related
bodies corporate as defined in the insurance policy.
The insurance grants indemnity against liabilities permitted
to be indemnified by the Company under Section 199B of
the Corporations Act 2001. In accordance with commercial
practice, the insurance policy prohibits disclosure of the
terms of the policy, including the nature of the liability insured
against and the amount of the premium.
No liability has arisen under this indemnity as at the date of
this report.
Proceedings of 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.
working at Macquarie Bank, including as a resources
analyst and a stockbroker.
Mr Gleeson has a Bachelor of International Finance from
Griffith University in Queensland and has post-graduate
qualifications in Mineral Exploration Geoscience and a
Master’s of Science (MSc) in Mineral Economics, both
through the Western Australian School of Mines (WASM).
Mr Gleeson is also a Member of AusIMM.
Significant Changes in the State of Affairs
Other than matters referred to in the review of operations,
there were no significant changes in the state of affairs of
the Group during the year.
Events Subsequent to Reporting Date
Maiden Indicated Resource1
The Company announced its maiden Indicated Resource of
860,000oz at 11.6g/t gold at its Bellevue Gold Project. The
Indicated Resource forms part of Bellevue’s total 2.3Moz
global Resource at 10g/t (860,000oz at 11.6g/t Indicated
and 1.4Moz at 9.2g/t Inferred) (refer ASX Announcement
7 July 2020 and the Annual Mineral Resources Statement
in the front section of the Annual Report).
Equity Raising
In July 2020, the Company completed a fully underwritten
share placement and announced a non-underwritten
share purchase plan. The placement raised ~$100 million
(before costs) via the issue of ~100 million ordinary shares
at an issue price of $1 per share and was followed by an
offer targeting up to $20 million non-underwritten Share
Purchase Plan (SPP) from eligible shareholders in Australia
and New Zealand.
In August 2020, Bellevue increased the size of the SPP
raising a total of ~$35 million by way of ~35 million ordinary
shares at an issue price of $1 per share.
Other than the above, there are no set matters or
circumstances that have arisen since the end of the
financial period that have significantly affected or may
significantly affect the operations of the Group, the results
of those operations, or the affairs of the Group in future
financial years.
Likely Developments
The Company will continue to advance the exploration
and evaluation of the Bellevue Gold Project and
regional areas including preparations for the potential
development of the Project.
Environmental Regulation and Compliance
Bellevue is committed to ensuring compliance with
environmental laws and minimising the environmental
48 BELLEVUE GOLD LIMITED
Shares, Options & Performance Rights
(a) Directors’ Interests in the Shares, Options and
Rights of the Company
The Directors’ interests in the shares of the Company at the
date of this report are set out in the table below:
Number of
ordinary
shares
Number of
Options
Number of
Performance
Rights
-
30,030,000
1,330,000
66,300
-
-
-
-
-
-
600,000
9,000,000
2,400,000
-
-
Name
Kevin
Tomlinson
Steve
Parsons
Michael
Naylor
Fiona
Robertson
Shannon
Coates
(b) Options
At the date of this report unissued shares of the Company
under option are:
Exercise price $
Expiry date
Number
0.10
0.40
0.60
Total unlisted options
16/01/21
11,000,000
30/06/21
14/02/22
2,500,000
50,000
13,550,000
These options do not entitle the holder to participate in any
share issue of the Company.
(c) Performance Rights
Indemnity of Auditors
The Group has agreed to indemnify its auditors, Grant
Thornton Audit Pty Ltd, to the extent permitted by law,
against any claim by a third party arising from the Group’s
breach of its agreement. The indemnity requires the Group
to meet the full amount of any such liabilities including a
reasonable amount of legal costs.
Non-Audit Services
The Company may decide to employ the auditor on
assignments additional to their statutory audit duties where
the auditor has relevant expertise and experience and
where the auditor’s independence is not compromised.
Details of the amounts paid or payable to the auditor Grant
Thornton Audit Pty Ltd and related entities for audit and
non-audit services provided during the year are set out in
Note 22 to the financial statements.
The Board has considered the non-audit services provided
during the year by the auditor, and is satisfied that the
provision of those non-audit services during the year is
compatible with, and did not compromise, the auditor
independence requirements of the Corporations Act 2001
for the following reasons:
• all non-audit services were subject to the corporate
governance procedures adopted by the Company and
have been reviewed by the Board to ensure they do not
impact upon the impartiality and objectivity of the auditor
• none of the services undermine the general principles
relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.
At the date of this report, unissued shares of the Company
pursuant to performance rights issued under the
Company’s Employee Incentive Plan are:
Dividends
No dividend was paid or declared by the Company in the
financial period and up to the date of this report.
Lead Auditor’s Independence Declaration
The auditor’s independence declaration, as required under
section 307C of the Corporations Act 2001, is set out on
page 77 and forms part of this report.
Grant date
Expiry date
Number
14/08/18
07/01/19
15/02/19
26/08/19
06/09/19
15/10/19
05/11/19
16/03/20
28/07/20
12/06/21
1,000,000
07/01/24
10,000,000
01/09/22
31/03/21
30/09/21
31/07/21
05/11/24
250,000
250,000
200,000
100,000
600,000
16/03/25
10,084,798
28/07/25
2,990,000
Total Performance Rights
25,474,798
DIRECTORS' REPORT 49
Bellevue Geologist inspecting Diamond Drill Core at the rig.
50 BELLEVUE GOLD LIMITED
Letter from our Nomination,
Remuneration and Culture
Committee Chair
Dear Shareholders
FY20 Remuneration Overview
On behalf of the Board, I am pleased to present the
Remuneration Report for the year ended 30 June 2020.
I joined the Board of Directors on 13 May 2020 and we
established the Nomination, Remuneration and Culture
Committee (Committee) on 1 June 2020. The Committee is
comprised solely of independent, Non-Executive Directors
and is governed by the Nomination, Remuneration and
Culture Committee Charter.
This Remuneration Report seeks to provide our
shareholders and stakeholders with a clear understanding
of our approach to remunerating Key Management
Personnel (KMP), including Directors, for the year ended
30 June 2020 and our future remuneration considerations.
This includes the key principles we use to determine our
Remuneration Framework and ensure our KMP are focused
on delivering long-term shareholder value consistent with
our purpose and strategy.
COVID-19
This year, Bellevue and the broader community have been
impacted by the COVID-19 pandemic, with far-reaching
health, social and economic consequences experienced.
Bellevue’s response to this included, but was not limited to,
implementing protocols to support the health and well-
being of employees and the community, implementing
working from home policies and changing to longer rosters
for site-based employees. Despite the impact of COVID-19,
Bellevue’s sound business approach, risk management
and success in setting and achieving strategic objectives
have culminated to result in value accretion for both the
Company and shareholders during this time. In addition,
the Company did not claim any Job Keeper or Job
Seeker related subsidies from the Government. The
Board has considered all factors regarding the impact
of the pandemic on not only the Company itself but the
broader market and community in assessing remuneration
outcomes for the year. In light of the strong performance of
Bellevue and the significant outcomes achieved throughout
the year by management, the Board has determined that
no discretion be applied to reduce remuneration awards for
the 2020 financial year.
The Committee was established on 1 June 2020 and is
mandated to oversee the Company’s remuneration approach
on behalf of the Board. Prior to 1 June 2020, this was
managed by the Board, and its remuneration strategy was to
ensure that remuneration supported the Company’s strategy
and aligned it with long-term shareholder value creation.
The Company has also been strongly focused on building a
team of KMP with the skills, experience and commitment to
support the Managing Director in pursuing the Company’s
ultimate goal of becoming a high-margin Australian
gold producer. I am pleased to report that Bellevue has
established a high-quality team that has been instrumental
in the Company’s sector outperformance on several
measures, including an outstanding 4,948% four-year
return to shareholders and substantial high-grade Resource
growth, and is well positioned to further deliver on our short
and longer term strategic objectives.
In order to attract and retain our new and current high calibre
staff, the Board has spent considerable time focusing
on remuneration, including the long term incentive (LTI)
framework, in particular ensuring the performance hurdles
relate to Company and shareholder value accretion including
significant resource and reserve growth, positive studies,
exploration success, share price appreciation and retention.
As a consequence, during FY20 the Board addressed the
need to maintain flexibility in remuneration to enable Bellevue
to adapt to specific circumstances that may arise within the
Company or within the industry in which we operate.
Total Fixed Remuneration (TFR)
KMP received increases in TFR in FY20. In determining this,
the Board took into account the already recognised growth
in the Company, increased role complexity, the need to
motivate and retain the existing KMP as well as the growth
trajectory of the Company.
Short Term Incentives (STIs)
The intent of the STI awards is to focus our KMP on
what they can influence in the performance year. The
STIs granted during the year were based on short term
objectives that the Board considers critical to the longer-
DIRECTORS' REPORT 51
Bellevue Geologists Rock Chip Sampling of the Bellevue Project.
term strategy of becoming a significant gold producer.
These include successful dewatering of the Bellevue
decline, drilling from underground, resource growth and
increased shareholder engagement. A 12-month deferral
component was also introduced to the STI award in FY20
for retention purposes and to ensure that Executives’
and shareholders’ interests are strongly aligned. The
current STIs are assessed on a calendar year basis, with
performance to be reviewed after 1 January 2021.
Long Term Incentives (LTIs)
The Company’s LTI structure is focused on delivering
long-term shareholder value consistent with our
purpose and strategy, aligning the Executives to the
interests of shareholders. During the year, the Company
issued Bellevue Project related performance rights.
The milestones for vesting of the performance rights
specifically relate to the major value-add hurdles that align
to the Company’s three-year strategy. Further details can
be found on page 65.
In FY20, Mr Sam Brooks and Mr Michael Naylor had Rights
vest based on a two-year service period. These Rights
were granted in order to retain key Executives when the
Company was a junior explorer and had not yet published a
Resource for the Bellevue Gold Project.
Retention Rights (RR)
In FY20, the Company also granted a one-off issue of
Retention Rights to KMP (excluding the Managing Director
and Executive Director) which are linked to share price
performance and a KMP service period up to four years.
The Board acknowledges that this issue of Retention Rights
is a variation from both the Company’s and the Australian
market standard LTI approach, however the Board confirms
their assessment that this one-off grant is aligned with
shareholder interests by attracting, motivating and retaining
key talented Executives and ensuring alignment is achieved
between increases in Company and shareholder value
creation. Further details on this are presented on page 66.
Looking Forward
As the Company continues to execute on its strategy, the
Board recognises there is increasing demand to reward
strong performance with remuneration linked to the
achievement of strategic objectives and comparable to
companies undergoing similar business growth and of
relative size by market capitalisation.
Performance and Executive Remuneration
arrangements in FY21
Total Fixed Remuneration (TFR)
Throughout FY20, the Company used external remuneration
consultants BDO Remuneration to undertake remuneration
benchmarking, whilst also taking into consideration factors
such as the surrounding market conditions and sentiment,
the Company’s growth trajectory, strategic objectives,
competency and skillset of individuals, scarcity of talent,
changes in role complexities and geographical spread of the
company. The Board has taken this into account in setting
KMP TFR for FY21, which will be disclosed in the Company’s
FY21 annual report.
52 BELLEVUE GOLD LIMITED
Short Term Incentives (STI)
The Company’s STI measurement period is currently
based on a calendar year, however from FY21 will be
aligned to a financial year. The assessment of achievement
of performance targets for the current year’s STIs will
be made in January 2021. The Board is currently in the
process of determining an appropriate transitional award
to account for the six months from 1 January 2021 to 30
June 2021.
Long Term Incentives (LTI)
In light of our current exploration focus and size, it is
not possible for the Company to implement financial
performance measures targeting returns, earnings
or efficiency. Rather, LTI awards focus on increasing
shareholder value through operational milestones, significant
resource and reserve growth, positive feasibility studies and
exploration success.
At the General Meeting held on 1 July 2020, shareholders
approved an LTI grant to the Executive Directors of
the Company, namely Mr Stephen Parsons, Managing
Director and Mr Michael Naylor, Executive Director, CFO
and Company Secretary. The key change for the FY21
vesting conditions for the Executive Director LTI award was
the introduction of scaled vesting to further strengthen
alignment and motivate Executive Directors in conjunction
with creating long-term value for shareholders. Through the
continued progress at the Bellevue Mine, the production
targets for FY21 represent challenging, but achievable
progression for the Company. It is through the achievement
of these milestones, and continued development of the
Bellevue Mine that shareholder value will sustain growth best
aligned with the growth of the Company.
(a) Class U performance rights will vest upon the Company
announcing a Joint Ore Reserves Committee (JORC)
2012 compliant Mineral Reserve with a minimum grade
of at least 8g/t for a total of gold located within the
Bellevue Gold Project, as follows:
JORC 2012
compliant Mineral Reserve
located within the
Bellevue Gold Project
Less than 400,000oz of gold
At 400,000oz of gold
At 500,000oz of gold
At 650,000oz of gold or more
% of Class U
Performance
Rights Eligible
for Vesting
0%
50%
75%
100%
Between the above points
Pro-rata vesting
(b) Class V performance rights will vest upon the Company
announcing a JORC 2012 compliant global Mineral
Resource with a minimum grade of at least 8g/t for a
total of gold within the Bellevue Gold Project, as follows:
JORC 2012 compliant
global Mineral Resource
located within the Bellevue
Gold Project
Less than 2,600,000oz of gold
At 2,600,000oz of gold
At 3,000,000oz of gold
At 3,400,000oz of gold or more
% of Class V
Performance
Rights Eligible
for Vesting
0%
50%
75%
100%
Between the above points
Pro-rata vesting
The LTIs granted to Executive Directors in FY21 were in the
form of performance rights and are subject to the following
vesting conditions:
For the avoidance of doubt, both the Retention Condition
and the relevant Milestone (together, the Vesting Conditions)
must be satisfied before a Performance Right will vest.
1. Remaining an employee, office-bearer or consultant
of the Company for three years from the date of grant
(Retention Condition); and
2.
the satisfaction of the following performance milestones
within that timeframe (each a Milestone):
The Board will continue to review executive remuneration
to ensure that it continues to align with Bellevue’s strategy,
motivate management, reflect market best practice and
support the delivery of sustainable long-term returns to
shareholders. As part of the review process we will also seek
to engage with major shareholders and proxy advisors.
Your sincerely
Shannon Coates
Nomination, Remuneration and Culture Committee Chair
DIRECTORS' REPORT 53
Logging of Diamond Drill Core at Bellevue
54 BELLEVUE GOLD LIMITED
54 BELLEVUE GOLD LIMITED
Remuneration
Report
DIRECTORS' REPORT 55
REMUNERATION
REPORT OVERVIEW
The Directors of Bellevue Gold Limited present the Remuneration Report for the Company and its controlled entities
(collectively the Group) for the year ended 30 June 2020. This report forms part of the Directors’ Report and has
been audited in accordance with section 300A of the Corporations Act 2001. The Report details the remuneration
arrangements for Bellevue’s key management personnel (KMP):
• Non-Executive Directors (NEDs)
• Executive Directors and senior Executives (collectively the Executives).
KMP are those persons who, directly or indirectly, have authority and responsibility for planning, directing and controlling
the major activities of the Company and Group.
The table below outlines the KMP of the Group and their movements during the year ended 2020:
Name
Position
Non-Executive Directors
Kevin Tomlinson
Non-Executive Chair
Fiona Robertson
Non-Executive Director
Shannon Coates
Non-Executive Director
Raymond Shorrocks
Non-Executive Chair
Executive Directors
Term as kMP
Appointed 9 September 2019
Appointed 13 May 2020
Appointed 13 May 2020
Resigned 9 September 2019
Stephen Parsons
Managing Director
Full financial year
Michael Naylor
Executive Director, Chief Financial Officer & Company Secretary Full financial year
Senior Executives
Samuel Brooks
Chief Geologist
Craig Jones
Luke Gleeson
Chief Operating Officer
Head of Corporate Development
Full financial year
Appointed 9 December 2019
Appointed 18 February 2020
Daina Del Borrello
General Manager People & Culture
Appointed 1 December 2019
There were no changes to KMP after the reporting date, and before the date the financial report was authorised for issue.
56 BELLEVUE GOLD LIMITED
REMUNERATION
GOVERNANCE
After a period of rapid growth, the Company was admitted to the ASX 300 index on 23 September 2019. The ASX
Listing Rules and ASX Corporate Governance Council’s Principles and Recommendations require a higher standard of
governance for ASX 300 companies and consequently during the year we made a number of changes to meet the more
rigorous governance and independence criteria for an ASX 300 company, including: enhancing the composition and
structure of the Board having regard to independence and the diversity of gender, skills and experience; the establishment
of key Board committees, namely our Audit and Risk Management Committee and Nomination, Remuneration and Culture
Committee; and implementing a future remuneration framework that meets the key governance requirements and is fit-
for-purpose as the Company looks to evolve from an explorer into a producer.
The Nomination, Remuneration and Culture (NRC) Committee was established on 1 June 2020 and is responsible for
making recommendations to the Board on remuneration arrangements for Non-Executive Directors, Executive Directors
and Executives. Executive remuneration is reviewed annually, taking into consideration not only benchmarking data,
but also factors such as the surrounding market conditions and sentiment, the Company’s growth trajectory, strategic
objectives, competency and skillset of individuals, scarcity of talent, changes in role complexities and geographical spread
of the company. The NRC committee is also tasked with determining and setting performance targets, as well as the
performance and outcomes against these targets.
The roles and responsibilities of our Board, NRC, Executives and external advisors in relation to remuneration for KMP
and employees at Bellevue Gold are outlined below:
Board
• The Board maintains overall responsibility for overseeing the remuneration strategy
and policy, and the principles and processes that underpin it.
• Reviews and, as appropriate, approves recommendations from the NRC Committee.
Nomination,
Remuneration and
Culture Committee
• Assists the Board in satisfying its responsibilities to the Company’s shareholders, by
reviewing and approving a remuneration policy for Executive Directors, Executives and
other KMP.
• Reviews and recommends to the Board proposed remuneration (including incentive
awards, equity awards and service contracts) of each Executive Director and Executives.
• Oversees induction of new Non-Executive Directors
• Sets Board remuneration, including Non-Executive Director remuneration within the
Aggregate Fee Limit as approved by shareholders
•
Is accountable to the Board, which retains ultimate responsibility for the Company’s
activities. The Committee has no decision-making authority unless delegated by the
Board from time to time.
Managing Director
The Managing Director makes recommendations to the NRC regarding the KMP such as:
•
Incentive targets and outcomes
• STI and LTI participation
•
Individual remuneration and contractual arrangements for executives.
DIRECTORS' REPORT 57
External Advisors
• The Company may engage external advisors whether directly by the NRC, or
through management.
• External advisors provide independent information and/or recommendations relevant
to remuneration-related issues, including benchmarking and market data.
There were no specific remuneration recommendations received by the NRC or Board
from external advisors during the year as defined by the Corporations Act 2001. During
2020, the Board did however engage the services of BDO Reward (BDO) to review the
Company’s Executive and Non-Executive Director remuneration framework, undertake a
market benchmarking review of remuneration and to assist with the implementation of the
changes to the Executive Remuneration Framework. The work completed by BDO included
making remuneration recommendations and the Board (at the time) was satisfied that
the advice received from BDO was free from bias and undue influence. The remuneration
recommendations were provided to the Board as input into decision making only. The
Committee considered the recommendations, along with other factors, in making its
remuneration decisions.
The fees paid to BDO for the remuneration recommendations were $32,750 (excluding
GST). In addition to providing remuneration recommendations, BDO provided advice
on other aspects of the remuneration of the Group’s employees and was paid a total
of $3,864 (excluding GST) for these services. During the year ending 30 June 2020,
the Board consulted with BDO Remuneration and Reward Pty Limited to obtain general
information in relation to benchmarking Executive remuneration against remuneration
market data from comparator groups for S&P/ASX 300 companies based on comparable
industry and market capitalisation. The total fees paid to BDO during the year to perform
this work was $36,614 (excluding GST).
Prior to the formation of the NRC committee the Board had performed this function.
The composition of the NRC committee is set out on below. Further information on the Committee’s role, responsibilities
and membership can be seen at www.bellevuegold.com.au/wp-content/uploads/2020/06/Nomination-Remuneration-and-
Culture-Committee-Charter.pdf.
Nomination, Remuneration & Culture Committee
Members acting on the Committee of the Board during the year were:
Shannon Coates (appointed 1 June 2020)
Independent Committee Chairperson
Fiona Robertson (appointed 1 June 2020)
Independent Committee Member
Kevin Tomlinson (appointed 1 June 2020)
Independent Committee Member
58 BELLEVUE GOLD LIMITED
Historical performance,
shareholder wealth and
remuneration
Financial Year 2020 at a glance
SHARE PRICE
%
increase of 4,948%
4,948 Five-year share price
A$726 Market capitalisation
MARkET CAPITALI SATION
increased by $375
million in FY20
million
DISCOVERY
2.2 Discovery of 2.2m ounces of gold
at 11.3 g/t gold1 in fewer than three
years from discovery hole
Moz
ASX 300
Bellevue Gold admitted
to the ASX 300 in FY20
1. This was the Resource at the belleuve Gold Project as at 30 June 2020. However, the company updated its Resource on 7 July 2020 titled “Bellevue Gold – Maiden
Indicated Resource 860,000oz at 11.6g/t gold”, available at www.asx.com.au/asxpdf/20200707/pdf/44k9jf7sjy2mvx.pdf . Refer to the Company’s Resources and
Reserves Statement of page 33 of this report.
Diagram 1 - Bellevue Resource Growth since Discovery Hole
Resource Update
2.2Moz at 11.3g/t
Resource Update
2.3Moz at 10.0g/t1
Resource Update
1.04Moz at 12.3g/t
Resource Update
1.8Moz at 11.1g/t
Resource Update
1.04Moz at 12.3g/t
Maiden Resource
0.5Moz at 8.2g/t
50,000
40,000
30,000
20,000
s
e
r
t
e
M
g
n
i
l
l
i
r
D
10,000
0
M
i
l
l
i
o
n
s
o
f
0
z
s
’
2.5
2.0
1.5
1.0
0.5
0
d
e
t
a
c
d
n
i
I
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019 Q1 2020 Q3 2020
Discovery Drill Hole
7m @ 27.4g/t
JORC Resources
Drill Metres Per Quarter
Indicated Drilling
1. Resource companied of both Indicated and Inferred Resources (see page 33 of this Report). Prior to this date, the Resource was comprised of Inferred Resources only.
Five Year Total Shareholder
Return, 4,948%
Diagram 2 - Total Shareholder Returns
950
750
%
550
350
0
-50
DIRECTORS' REPORT 59
%
5000
4000
3000
2000
1000
0
-50
FY16
FY17
FY18
FY19
FY20
BGL
S&P/ASX 300 Metals & Mining
The World Index
Table 1.1: Business Performance
Share Price as at 30 June ($)
Share Price Increase (%)
2020
1.06
51
2019
0.70
312
2018
0.17
709
2017
0.021
0
2016
0.021
0
Market Capitalisation ($)
725,624,835
350,722,176
67,796,086
5,428,511
2,243,511
Inferred Resources
2.2m ounces
@ 11.3g/t
gold from
6.1Mt1
1.53m ounces
@ 11.8g/t
gold from 4Mt
Nil
Nil
Nil
Loss After Income Tax ($)
5,687,302
7,146,369
5,900,323
1,791,733
659,083
1. This was the Resource at the Bellevue Gold Project as at 30 June 2020. However, the company updated its Resource on 7 July 2020 titled “Bellevue Gold – Maiden
Indicated Resource 860,000oz at 11.6g/t gold”, available at www.asx.com.au/asxpdf/20200707/pdf/44k9jf7sjy2mvx.pdf. Refer to the Company’s Resources and
Reserves Statement of page 33 of this report.
2020 KMP Profiles
Key Management Personnel Changes
Rapid growth prospects has required the Company to expand the Executive team in 2020, which was demonstrated by
the recent appointments of three new KMP - Luke Gleeson, in the role of Head of Corporate Development, Craig Jones, as
Chief Operating Officer, and General Manager People and Company Culture, Daina Del Borrello. The Board believes that the
Company’s current remuneration framework had an instrumental impact in attracting them to join the Company in a very
competitive talent pool environment.
Refer to the Company’s website, http://www.bellevuegold.com.au/company/#Executive-management for details of our
highly credentialed KMP.
60 BELLEVUE GOLD LIMITED
REMUNERATION
POLICY
Remuneration levels for KMP are set to attract, motivate, and retain appropriately qualified KMP. The Company rewards
KMP with a level and mix of remuneration appropriate to their position and the complexity of the role, responsibilities,
experience and skillset, and performance so as to best align with the Company’s strategic objectives.
For the 2020 and subsequent financial years, the Company has implemented an Executive Remuneration Strategy for KMP
which sets out Fixed Remuneration, Short Term Incentives (“STI”) and Long Term Incentives (“LTI”).
The objectives and principles of the Company’s remuneration policy include:
•
•
•
•
•
•
•
•
to attract, motivate and retain a highly skilled Executive team, at a critical stage in the Company’s development, who are
motivated and rewarded for successfully delivering the short and long-term objectives of the Company, including the
successful delivery of its key project;
to link remuneration with performance, based on long-term objectives and shareholder return, as well as critical short-
term objectives which are aligned with the Company’s business strategy;
to set clear goals and reward performance for successful project development in a way which is sustainable;
to be fair and competitive against the market and with a defined industry peer group;
to preserve cash for exploration and project development by having the flexibility to attract and remunerate Executives
with an appropriate mix of equity-based incentives;
to reward individual performance and group performance - thus promoting a balance of individual performance and
teamwork across the KMP and the organisation;
to enable employees to share in the upside of the Company’s growth; and
to recognise that Executives are taking on significant personal risk, hardships and challenges faced in pursuing
Bellevue’s business strategy in remote locations and in uncertain economic conditions.
Remuneration Mix - Target FY20
The mix shown in the graphs below is the total targeted fixed and at risk STI & LTI remuneration based on FY20 maximum
remuneration opportunities.
MANAGING
DIRECTOR
CFO /
EXECUTIVE DIRECTOR
OTHER kMP
STI
LTI (Performance)
Fixed Component
*The Other KMP also received a one-off grant of retention related performance rights in FY20 (see page 66 for further details). Mr Parsons and Mr Naylor were issued LTI’s
in FY 21 which will be added to the remuneration mix for FY21.
DIRECTORS' REPORT 61
ELEMENTS OF
REMUNERATION
Total Fixed Remuneration
Total Fixed Remuneration (“TFR”) comprises of base salary and superannuation.
Remuneration levels are reviewed annually by the Board through a process that considers a number of factors such as
the individual and overall performance of the Group. Industry remuneration surveys and data are utilised to assist in this
process. There are no guaranteed base pay increases included in any Executive contracts.
Table 1.2: Fixed Remuneration for kMP in FY20
FY19 Fixed Remuneration
$A
FY20 Fixed Remuneration
$A
Increase/decrease
%
Steve Parsons
Michael Naylor
Sam Brooks
Craig Jones3
Luke Gleeson4
Daina Del Borrello5
314,813
112,247
104,1661
-
-
-
388,082
183,5492
263,688
175,649
129,575
130,999
23
64
153
N/A
N/A
N/A
1. Sam Brooks was appointed as a member of KMP on 1 February 2019. Details above have been pro-rated for time in the KMP role only.
2. Michael Naylor increased his working days from 2 days to 4 days per week effective 1 February 2020.
3. Appointed 9 December 2019
4. Appointed 18 February 2020
5. Appointed 1 December 2019
Bellevue Geologist inspecting mineralised rock chips.
62 BELLEVUE GOLD LIMITED
PERFORMANCE LINKED
REMUNERATION
Short Term Incentives (STIs)
The STI is an annual incentive plan designed to reward Executives for meeting or exceeding performance-based
objectives over a one-year period. The STI has been designed to support the objective of short and long-term
outperformance in all areas of the business through the use of annual measures linked to the business strategy and set at
levels that are achievable, yet challenging. These performance-based outcomes are considered to be an appropriate link
between Executive remuneration and the potential for creation of shareholder wealth.
How is it paid?
Any STI award is paid 50% in cash and 50% in fully paid ordinary shares (shares will be issued
under Bellevue’s Employee Securities Incentive Plan (Plan), subject to any required shareholder
approval and a 12-month holding lock), after the assessment of annual performance.
How much can
Executives earn?
In CY2020, the Managing Director and the Executive Director had a maximum STI
opportunity of 35% and 26% respectively of TFR, and other Executives had a maximum
STI opportunity of 26% of TFR.
An overarching review by the Board of each individual’s performance against agreed
performance measures and a review of quantitative factors around the Company’s
performance and the macro economic environment will determine the achievable
percentage (between 0%-100%) of the maximum potential STI available to be awarded,
subject further to the level of achievement against detailed KPIs listed below.
How is performance
measured?
A combination of specific Company performance targets are chosen to reflect the core drivers
of short-term performance and also to provide a framework for delivering sustainable value to
the Group and its shareholders.
The following performance targets were chosen for the 2020 calendar year:
• No serious health and safety incidents;
• Successful dewatering of the decline;
• Commencement of drilling from underground;
• Measured and Indicated resource of > 500,000 ounces of gold at the Bellevue Gold
Project; and
• Successful global market, increased analyst coverage and increase institutional
shareholder base.
There is a safety gateway on the STI award. It should be noted that the Company takes its
responsibility to health and safety very seriously, and to that effect, STI Bonuses will not be
paid if appropriate health and safety standards and records are not met or there are major
health and safety incidents during the year that are a result of failure in policies and procedures.
DIRECTORS' REPORT 63
When is it paid?
The STI award is determined after the end of the calendar year following a review of
performance over the year against the STI performance measures by the Nomination,
Remuneration and Culture Committee.
The Board approves the final STI award based on this assessment of performance, with
the award expected to be paid in March 2021. 50% of the award will be paid in cash and
the remaining 50% will be paid in fully paid ordinary shares issued under the Plan, subject
to any necessary shareholder approval (eg for Directors). The number of shares to be
issued will be calculated based on a deemed issue price equal to the volume-weighted
average market price of Shares for the five trading days prior to 31 December 2020.
What happens if
Executive leaves?
For retention purposes, the Executive must remain an employee, office-bearer or consultant
of the Company until 28 February 2021 to be entitled to receive an FY20 STI Bonus.
However, if an Executive’s role is made redundant before 28 February 2021, they will still be
entitled to receive the STI Bonus for the performance targets that have been met.
If the KMP’s employment or consultancy with the Company is otherwise terminated, the
Board retains the discretion to award or forfeit any STI Bonus on a case-by-case basis,
considering longevity in the role and the reasons for leaving.
What happens if there is
a change of control?
In the event that a ‘Change of Control Event’ (as defined in the Plan) occurs or the
Company sells the whole or a substantial part of the Bellevue Gold Project before 31
December 2020, the Board may in its discretion determine whether and in what amount to
pay any STI Bonuses under the 2020 STI Program.
Malus and Clawback
The Board retains the discretion to adjust the STI Bonus payable prior to payment (malus)
or to reclaim any STI Bonus within 12 months after payment or issue (clawback), such as in
instances of:
• Material financial misstatements;
• Major negligence;
• Significant legal, regulatory and/or policy noncompliance; and
• Significant harmful act by an individual.
64 BELLEVUE GOLD LIMITED
Performance against STI measures
The below performance targets are based on short-term objectives that are critical to the Company’s longer-term
strategy of becoming a significant gold producer. Performance will be measured by the Board based on a ‘balanced score
card’ approach at the end of the 2020 calendar year. The Company’s STI measurement period is currently based on a
calendar year, however from FY21 will be aligned to a financial year. The Board is currently in the process of determining an
appropriate transitional award to account for the six months from 1 January 2021 to 30 June 2021.
The entitlement to an STI Bonus is at the Board’s discretion and is subject to the achievement of the Company
performance targets by 31 December 2020. STI targets and the corresponding weightings that apply for each Executive
are detailed below:
Successful
dewatering
of the
decline
Drilling from
underground
commenced
Measured
and indicated
resource of
> 500,000
ounces
Successful global
market, increased
analyst coverage and
increase institutional
shareholder base
Total
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
20%
40%
40%
40%
40%
20%
20%
100%
0%
100%
0%
100%
0%
100%
0%
100%
20%
100%
Executive kMP
Steve Parsons
Managing Director
Craig Jones
Chief Operating Officer
Michael Naylor
Executive Director/Chief Financial
Officer/Company Secretary
Sam Brooks
Chief Geologist
Daina Del Borrello
General Manager People & Culture
Luke Gleeson
Head of Corporate Development
Overall STI outcomes for calendar year 2020 are determined through our NRC Committee’s assessment of the Business
and Individual Outcomes, as outlined in the table below.
Table 1.3: Potential STI earned by Executive kMP in respect of FY20 performance1
Executive kMP
Steve Parsons
Michael Naylor
Sam Brooks
Craig Jones
Luke Gleeson
Daina Del Borrello
Target
%
100
100
100
100
100
100
Total STI
available
$
140,000
68,640
70,200
91,000
92,300
41,756
Anticipated
Pro-Rata
STI
%
41
41
41
41
41
41
Total STI
awarded
$
57,170
28,030
28,666
37,160
37,692
17,052
Cash1
$
28,585
14,015
14,333
18,580
18,846
8,526
Shares2
$
28,585
14,015
14,333
18,580
18,846
8,526
1. STI is provided half in cash (which is included in the cash bonus column of the table) and half in shares (which is included in the share-based payments column of
the table). Neither cash nor shares were actually provided to the Executive KMP during FY20. The 41% represents an accrual for the period to 30 June 2020 for
the anticipated payment of the STI, for achieving the testing hurdles above. The value of the cash and shares portion is amortised over the testing period which is
between 24 February and 31 December 2020. They have been accounted for on the basis that it is more than probable that the performance criteria will be met
on assessment, being 31 December 2020. The achievement of these critical short-term performance targets will be assessed at the absolute discretion of the
Independent Directors in March 2021.
2. Any Shares that are issued will be pursuant to the Plan and will be subject to a 12-month holding lock and any required shareholder approvals. The actual number
of Shares issued will be calculated based on a deemed issue price equal to the volume weighted average market price of Shares for the 5 trading days prior to
31 December 2020.
DIRECTORS' REPORT 65
Long Term Incentives
Under the LTI plan, annual grants of performance rights are made to Executives to align remuneration with the creation of
shareholder value over the long-term, whilst also attracting, motivating and retaining key Executives.
The LTI plan specifically relates to the major value add hurdles that align to the Company’s three-year strategy. At the
beginning of FY20, the Company remained an exploration Company and hence set stretch performance hurdles that, upon
achievement, align with significant shareholder value creation.
Bellevue has stated that its focus is to become a high margin Australian gold producer. However, there are a number of
important key milestones that have to be achieved before the Company has certainty to recommend a decision to mine
to the Board. The Board has set the performance milestones for the next 36 months, and accordingly the performance
rights issued to senior executives in April 2020 under the Company’s Plan seek to align employee motivation and retention
with the Company’s strategy. In order to continue attracting and motivating highly experienced and capable Executives
at the Company’s current stage of exploration, the milestones for the LTI rights provide existing Executives with a clear
line of sight and control of the Company’s strategy and operational benchmarks. Through the continued progress at the
Bellevue Mine, the production targets set represent challenging, but achievable progression for the Company. It is through
the achievement of these milestones, and continued development of the Bellevue Mine that Shareholder value will sustain
growth best aligned with the growth of the Company.
For the avoidance of doubt, Executive Directors Steve Parsons and Michael Naylor did not participate in this issue.
How is it paid?
Executives were eligible to receive performance rights (being the issue of shares in
Bellevue in the future following satisfaction of certain vesting conditions).
How much can
Executives earn?
In FY20, Executives have a maximum LTI opportunity of between 100% to 140%
of Fixed Remuneration.
How is performance
measured?
The performance rights issued in FY20 are subject to the Executive remaining an
officeholder, employee or consultant of the Group for three years after the date of grant
of the performance rights and the satisfaction of the following vesting conditions:
• ASX announcement of completion of a positive feasibility study for the Bellevue
Gold Project which demonstrates an ability to operate the project as a commercially
viable enterprise;
• ASX announcement of a JORC 2012 compliant Mineral Reserve with a minimum grade
of at least 6 g/t for at least 500,000oz of gold located within the Bellevue Gold Project;
and
• ASX announcement of a JORC 2012 compliant global Mineral Resource with a minimum
grade of at least 6 g/t for at least 3,000,000 oz of gold within the Bellevue Gold Project.
When is performance
measured?
The LTI performance rights issued in FY20 have a three-year performance period from
grant. Even if the relevant Performance Hurdle above is met, they will not vest for at least
three years due to the additional service period.
Any performance rights that do not vest will lapse after testing.
Re-testing
There is no re-testing of performance rights.
66 BELLEVUE GOLD LIMITED
What happens if
Executive leaves?
(ie. malus and clawback)
The LTI performance rights are subject to the Executive being employed (or contracted)
for the full performance period of three years.
Any unvested rights will automatically lapse on the date of the cessation of employment,
subject to any determination otherwise by the Board in its sole and absolute discretion.
Where, in the opinion of the Board, the Executive:
• acts fraudulently, or dishonestly;
• willfully breaches their duties to the Group; or
•
is responsible for material financial misstatements; major negligence; significant legal,
regulatory and/or policy non-compliance; or a significant harmful act,
the Board may, at its sole and absolute discretion, deem some or all of the unvested, or
vested but unconverted, performance rights granted to that Executive to be forfeited and
to have lapsed.
What happens if there is
a change of control?
In the event that the Bellevue Gold Project is sold or a Change of Control Event (as defined
in the Plan) occurs or the Board determines that either such an event is likely to occur
before the Vesting Conditions are met, the Board will have a discretion whether to allow the
vesting of the performance rights and on what terms. When determining the vesting of the
performance rights, the Directors will take into consideration a number of criteria, but in
particular the value to shareholders as a result of the event.
When do the
performance rights
convert to shares?
Following the vesting of any performance rights, Executives will have until 5pm (WST) on
9 April 2025 to convert any performance rights to shares. Upon conversion, the Executive
will be issued or transferred one fully paid ordinary share in Bellevue for each vested
performance right.
Dividends and
voting rights
Performance rights do not confer on the holder any entitlement to any dividends or other
distributions by the Group or any right to attend or vote at any general meeting of the Group.
Retention Related Performance Rights
The Company has been focussed on building an Executive team with the skills, experience and commitment to support
the Managing Director and propel Bellevue to the next level by way of share price appreciation and project growth. Over
the past two years, Bellevue has established a high-quality Executive team that has demonstrated sector outperformance
on several measures, but importantly Resource growth and share price appreciation. In addition, as the broader market has
improved and competition for talent has increased, the Company identified that attracting, motivating and retaining KMP
was an important aspect in the underpinning and maintaining of the Company’s outperformance given its critical stage of
the development cycle.
The “retention” performance rights were born out of necessity during the recruitment of the roles for COO, the Head of
Corporate Development and the General Manager - People & Culture, as the Company found itself in direct competition
for good people with its competitors. The Company needed to utilise available financial instruments to attract industry
leaders from competitors who have a wealth of experience in high-grade mining operations, developing projects, building
an operating capability and team culture and are able to message to the broader investment community on how we are
driving shareholder value.
In December 2019, Craig Jones joined Bellevue Gold as Chief Operating Officer and in February 2020, Luke Gleeson
joined as the Head of Corporate Development. Mr Jones and Mr Gleeson were both previously part of the management
team at Northern Star (ASX:NST), and the Board was required to increase the equity component of their remuneration to
compensate for the additional risks of joining an exploration company as opposed to a blue chip, highly regarded gold
miner. Both Luke Gleeson and Craig Jones are highly experienced in underground gold mining operations, while Daina
Del Borrello (General Manager – People & Culture) brings a wealth of experience and proven history in Human Resources,
DIRECTORS' REPORT 67
particularly in mining. The Board believes it now has the KMP in place to realise the full potential of the Bellevue Gold
Project, with the aim of becoming a high-grade gold producer. The Retention Rights were only issued to new FY20 KMP
and Chief Geologist Sam Brooks. Executive Directors, Steve Parsons and Michael Naylor did not participate in this issue.
It is acknowledged that the issue of Retention Rights is a variation from the standard LTI approach, however the Company
confirms that this one-off grant is aligned with shareholder interests for the following reasons:
1. A one-off addition of retention rights to the EMT total packages will incentivise their retention and is appropriate in
the current marketplace where competition for key talent is high. In addition, as the broader market has improved and
competition for talent has increased, EMT has been identified as an important aspect in underpinning and maintaining
Bellevue’s outperformance.
2. The performance period is based on longer performance periods (up to four years).
3. The Board believes that the Company’s current remuneration framework, including the retention rights was
instrumental in attracting key KMP to join the Company in a very competitive talent pool environment.
4. The quantum issued provides significant individual retention benefit with minimal shareholder dilution, constituting less
than 1% of the undiluted shares on issue at the time of grant.
5. The vesting of the retention rights has been tied to both completion of service and share price performance to ensure
strong alignment with shareholder returns.
How is it paid?
Executives are eligible to receive performance rights (being the right to be issued shares
in Bellevue in the future, following satisfaction of retention-related performance criteria).
How much can
Executives earn?
A one-off grant of retention rights based on share price performance were issued to
new members of the KMP and Sam Brooks. The quantum was 300% of Total Fixed
Remuneration (based on face value).
How is performance
measured?
Each retention right represents a right to be issued the same number of fully paid ordinary
shares in Bellevue on conversion, subject to satisfaction of the following vesting conditions:
• One third of the retention rights will vest on 31 December 2022 subject to the Executive
remaining an employee, office-bearer or contractor of the Group and the volume
weighted average market price (VWAP) of Shares as traded on the ASX equaling or
exceeding $0.50 per share for 20 consecutive trading days at any time between
1 January 2020 and 31 December 2022;
• One third of the retention rights will vest on 31 December 2023 subject to the Executive
remaining an employee, office-bearer or contractor of the Group and the VWAP as
traded on the ASX equaling or exceeding $0.60 per share for 20 consecutive trading
days at any time between 1 January 2020 and 31 December 2023; and
• One third of the retention rights will vest on 31 December 2024 subject to the Executive
remaining an employee, office-bearer or contractor of the Group and the VWAP as
traded on the ASX equaling or exceeding $0.70 per share for 20 consecutive trading
days at any time between 1 January 2020 and 31 December 2024.
A total of 6,113,598 retention rights were issued on 9 April 2020, when the 10-day trading
VWAP was approximately $0.435 per share. This represented a 10%, 32% and 54%
discount to the above share price hurdles.
An additional 1,000,000 performance rights were issued to Sam Brooks which vest subject
to him remaining an employee, office-bearer or contractor of the Group on 9 April 2023.
68 BELLEVUE GOLD LIMITED
When is performance
measured?
Performance rights issued in FY20 have a three to five-year service and performance
period with the vesting of the rights tested as at 31 December 2022, 2023 and 2024.
It is also a condition that that the Executive remain employed (or contracted) for one year
after each of the vesting periods.
Any performance rights that do not vest will lapse after testing.
Re-testing
There is no re-testing of performance rights.
What happens if an
Executive leaves?
(ie. malus and clawback)
Performance rights are subject to the Executive being employed (or contracted) for one
year after each of the vesting periods.
Any unvested rights will automatically lapse on the date of the cessation of employment,
subject to any determination otherwise by the Board in its sole and absolute discretion.
Where, in the opinion of the Board, the Executive:
• acts fraudulently, or dishonestly;
• willfully breaches their duties to the Group; or
•
is responsible for: material financial misstatements; major negligence; significant legal,
regulatory and/or policy non-compliance; or a significant harmful act,
the Board may, at its sole and absolute discretion, deem some or all of the unvested, or
vested but unconverted, performance rights granted to that Executive to be forfeited and
to have lapsed.
What happens if there is
a change of control?
In the event that the Bellevue Gold Project is sold or a Change of Control Event (as defined
in the Plan) occurs or the Board determines that either such an event is likely to occur
before the Vesting Conditions are met, the Board will have a discretion whether to allow the
vesting of the performance rights and on what terms. When determining the vesting of the
performance rights, the Directors will take into consideration a number of criteria, but in
particular the value to shareholders as a result of the event.
When do the
performance rights
convert to shares?
Following the vesting of any performance rights, Executives will have until 5pm (WST) on
9 April 2025 to convert any performance rights to shares. Upon conversion, the Executive
will be issued or transferred one fully paid ordinary share in Bellevue for each vested
performance right.
Dividends and
voting rights
Performance rights do not confer on the holder any entitlement to any dividends or other
distributions by the Group or any right to attend or vote at any general meeting of the Group.
Table 1.4: The following table sets out the number of performance rights granted to Executives during the year
Performance Rights
Name
Position
Project-related Retention-related
Total1
Samuel Brooks
Chief Geologist
540,000
2,620,000
3,160,000
Craig Jones
Chief Operating Officer
1,400,000
1,399,998
2,799,998
Luke Gleeson
Head of Corporate Development
Daina Del Borrello
General Manager People & Culture
710,000
321,200
2,130,000
2,840,000
963,600
1,284,800
1. These were all granted under the Bellevue Employee Securities Incentive Plan on 9 April 2020.
Other Long-Term Incentives
The Board may, at its discretion, provide shares, performance rights and/or options as a long-term retention incentive
to employees.
DIRECTORS' REPORT 69
Members of the Company’s KMP are encouraged, but not
required, to acquire or hold Shares.
Peer Group
The Company used a combined peer group of listed
mining companies based on comparable size (market
capitalisation) and operational relevance to Bellevue,
focusing on companies at the development and producing
stages for remuneration benchmarking purposes in FY20.
Contractual Arrangements for Executive KMP
Remuneration and other terms of employment for
Executives are formalised in service agreements.
The service agreements specify the components of
remuneration, benefits and notice periods. Participation in
short-term and long-term incentives are at the discretion
of the Board. Other major provisions of the agreements
relating to remuneration are set out below.
GENERAL
INFORMATION
Minimum Shareholding Requirement
Subsequent to the end of FY20, the Board approved a
minimum shareholding policy under which each Director
(Executive and Non-Executive) is required (where
practicable) to acquire and hold a minimum number of fully
paid ordinary shares in the capital of the Company (Shares)
the value of which is equal to 100% of the Director’s annual
directors’ fees (in the case of Executive Directors, TFR)
or such amount fixed by the Board from time to time and
calculated in accordance with the Policy (Minimum Holding).
Directors’ fees include committee fees and Company
superannuation contributions. Increases in a Director’s fees
will result in an increase in the Minimum Holding.
Each Director must meet (where practicable) the Minimum
Holding requirement within the later of:
•
•
three years after the date of the Director’s appointment
to the Board; or
three years from the date the Policy is adopted by
the Board.
Table 1.5: Contractual Arrangements for Executive kMP
Name and Position
Term of Agreement
Steve Parsons
Managing Director
On-going commencing
1 September 2019
Michael Naylor
Executive Director/Chief
Financial Officer/Company
Secretary
Sam Brooks
Chief Geologist
Craig Jones
Chief Operating Officer
Luke Gleeson
Head of Corporate
Development
Daina Del Borrello
General Manager People
& Culture
On-going commencing
1 February 2019
On-going commencing
1 February 2019
On-going commencing
9 December 2019
On-going commencing
18 February 2020
On-going commencing
1 December 2019
Base Salary incl.
Super (TFR)1
Company /
Employee
Termination
Notice Period
Change of Control
Benefit
$400,000
12 / 3 months
12 months’ base salary
$261,705 (.8 FTE)
6 / 3 months
6 months’ base salary
$266,425
6 / 3 months
6 months’ base salary
$350,400
3 / 3 months
6 months’ base salary
$355,875
6 / 3 months
6 months’ base salary
$192,720 (.8 FTE)
3 / 3 months
6 months’ base salary
1. Base salaries quoted are as at 30 June 2020, they are reviewed annually by the Board and effective 1 June 2020 onwards will be reviewed by the Nomination,
Remuneration & Culture Committee.
70 BELLEVUE GOLD LIMITED
NON-EXECUTIVE
DIRECTOR’S REMUNERATION
Non-Executive Director fees are determined using the following guidelines. Fees are:
• Determined by the nature of the role, responsibility and time commitment necessary to perform required duties;
• Fixed amounts; and
• Determined by the desire to attract a group of individuals with pertinent knowledge and experience.
In accordance with the Company’s Constitution, the total amount of remuneration of Non-Executive Directors is within
the aggregate limit of $500,000 per annum as approved by shareholders at the 2019 Annual General Meeting. The Board
may apportion any amount up to this maximum level amongst the Non-Executive Directors as determined by the Board.
Remuneration consists of Non-Executive Director fees, committee fees and superannuation contributions and does not
include equity remuneration or fees received for special duties (unless so determined).
The table below outlines the fee levels (inclusive of superannuation) for the financial year 2020.
Table 1.6: FY20 Board fees
Fee
Description
Chair of the Board
Board Fees
Other Non-Executive Directors
Committee Fees
Remuneration, Nomination and Culture Committee Member
Audit and Risk Management Committee Member
FY20 Fees per Director
(A$ per annum)
180,000
80,000
10,000
10,000
Non-Executive Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in
performing their duties as Directors.
Other than Mr Kevin Tomlinson who was issued 600,000 performance rights (as approved by shareholders on 5 November
2019), there were no other equity-based instruments issued to Non-Executive Directors in the relevant period. The performance
rights issued to Mr Tomlinson are subject to retention-related conditions that vest in three equal tranches of 200,000
performance rights upon Mr Tomlinson completing one, two and three years of continual service with the Company, respectively.
All Non-Executive Directors enter into a service agreement with the Company in the form of a letter of appointment.
The letter summarises the Board policies and terms, including remuneration, relevant to the office of director.
DIRECTORS' REPORT 71
We have set out the following statutory disclosures required under the Corporations Act and in accordance with Australian
Accounting Standards, in respect of FY20 remuneration paid to Non-Executive Directors.
Table 1.7: Non-Executive Director remuneration
Non-Executive directors
Year
kevin Tomlinson
(Appointed 9 September 2019)
Shannon Coates
(Appointed 13 May 2020)
Fiona Robertson
(Appointed 13 May 2020)
Ray Shorrocks
(Resigned 9 September 2019)
Total
FY20
FY19
FY20
FY19
FY20
FY19
FY20
FY19
FY20
FY19
Short-term
benefits
Board &
Committee
Fees
127,000
-
11,145
-
11,145
-
20,000
80,100
169,290
80,100
Post-
employment
benefits
Share-
based
payments
Superannuation
Service
Rights1
Total
Remuneration
Performance
or Retention
Related
75,621
202,621
37%
-
-
1,059
-
1,059
-
-
-
-
-
-
-
-
-
12,204
-
12,204
-
20,000
121,495
201,595
2,118
75,621
247,029
-
121,495
201,595
-
-
-
-
-
-
60%
31%
60%
1. Rights relate to rights and options over ordinary shares issued to Non-Executive Directors. The fair value of rights and options granted shown above is non-cash and
was determined in accordance with applicable accounting standards and represents the fair value calculated at the time rights and options were granted and not
when shares were issued.
72 BELLEVUE GOLD LIMITED
STATUTORY
DISCLOSURES
Statutory Remuneration Table
In the following table, we’ve set out the statutory disclosures required under the Corporations Act, in accordance with the
Australian Accounting Standards. The amounts shown reflect the remuneration for each Executive that relates to their
service as a KMP in FY20.
Table 1.8: Statutory remuneration of Executive kMP in FY20
Short term benefits
Post-employment
benefits
Share-based
payment (Non-cash)
Executive
kMP
Salary
Cash
Bonus1
Annual
Leave
Superannuation
benefits
Long
Service
Leave
STI1
Total
Remuneration
Performance
Related
LTI2
Executive Directors
Steve Parsons – Managing Director
FY20
FY19
354,413
28,585
46,154
33,669
10,000
28,585
596,303
1,097,709
292,250
436,750
35,113
22,563
13,354
-
283,488
1,083,518
Michael Naylor– Executive Director/Chief Financial Officer/Company Secretary
167,625
14,015
11,400
146,179
-
1,540
15,924
4,334
FY20
FY19
Executives
Sam Brooks – Chief Geologist
FY20
FY19
240,811
14,333
20,535
95,129
-
8,029
22,878
9,037
Craig Jones – Chief Operating Officer3
FY20
FY19
160,410
18,580
15,174
15,239
-
-
-
-
Luke Gleeson – Head of Corporate Development4
FY20
FY19
118,333
18,846
9,774
11,242
-
-
-
-
Daina Del Borrello – General Manager People & Culture5
119,634
8,526
6,167
11,365
-
-
-
-
-
-
-
-
-
-
-
-
-
-
14,015
127,779
350,758
-
60,748
212,801
14,333
202,191
515,081
-
52,369
164,564
18,580
66,649
294,632
-
-
-
18,846
53,291
230,332
-
-
-
8,526
41,219
195,437
-
-
-
1,161,226
102,885
109,204
110,317
10,000
102,885 1,087,432
2,683,949
533,558
436,750
44,682
35,934
13,354
-
396,605
1,460,883
1. STI is provided half in cash (which is included in the cash bonus column of the table) and half in shares (which is included in the share-based payments column of
the table). Neither cash nor shares were actually provided to the Executive KMP during FY20. The value of the cash and shares portion is amortised over the testing
period. They have been accounted for on the basis that it is more than probable that the performance criteria will be met on assessment, being 31 December 2020.
The achievement of these critical short-term performance targets will be assessed at the absolute discretion of the Independent Directors in March 2020.
2. The amounts were not actually provided to the Executive KMP during FY20. The figures are calculated in accordance with Australian Accounting Standards and are the
amortised fair values of equity and equity-related instruments to Executive KMP. Refer to Table 1.9 on page 73 in this report for information on awards outstanding during FY20.
3. Craig Jones was appointed as a member of KMP on commencement of employment on 9 December 2019.
4. Luke Gleeson was appointed as a member of KMP on commencement of employment on 18 February 2020.
5. Daina Del Borrello was appointed as a member of KMP on 1 December 2019. Previously, Daina was appointed to the role of Human Resources, a non-KMP role. Details
above have been pro-rated for time in the KMP role only.
60%
66%
44%
29%
45%
32%
35%
-
40%
-
30%
-
48%
57%
FY20
FY19
Total
FY20
FY19
DIRECTORS' REPORT 73
Shareholdings of Directors and KMP
The movement during the reporting period in the number of ordinary shares in Bellevue held, directly, indirectly
or beneficially, by each key management person, including their related parties, is as follows:
Table 1.9: Detail and movement in Director and kMP shareholdings during FY20
Held at
1 July 2019
Held at
date of
appointment
Directors
Kevin Tomlinson
Fiona Robertson
Shannon Coates
-
-
-
Ray Shorrocks1
1,403,450
Steve Parsons
7,616,666
Michael Naylor
1,700,000
Executives
Sam Brooks
1,857,000
Craig Jones
Luke Gleeson
Daina Del
Borrello
-
-
-
-
36,300
-
-
-
-
-
-
-
-
Received
during the
year on the
conversion
of
Performance
Rights
Received
during the
year on the
exercise of
options
-
-
-
7,500,000
30,000,000
-
-
-
-
-
-
-
-
-
-
1,000,000
2,500,000
-
-
-
-
-
-
-
-
-
-
-
408,000
-
Held at
Purchases
cessation Sold during
-
-
-
-
-
-
(5,903,450)
(3,000,000)
Held at
30 June
2020
-
36,300
-
-
-
-
-
-
-
-
(7,616,666)
30,000,000
(1,400,000)
1,300,000
(1,819,500)
2,537,500
-
-
-
-
408,000
-
Total
12,577,116
36,300
37,500,000
3,500,000
408,000
(5,903,450)
(13,836,166) 34,281,800
1. Resigned on 9 September 2019.
All shareholdings noted above are held either directly by the KMP or indirectly through their associates.
Director and key Management Personnel Remuneration Movements in Options
There were no options granted to KMPs as compensation during the current year. Details on options granted as compensation
in previous years and which have vested during or remain outstanding at the end of the year are provided below.
Table 1.10: Detail and movement in Director and kMP options held over Bellevue Gold shares during FY20
Grant
Date
Date of
Expiry
Fair value
Exercise
Price
Balance
1 July 19
Exercised
Balance 30
June 2020
Steve Parsons
31/03/17
31/03/20
0.0190
$0.0350
15,000,000
(15,000,000)
Steve Parsons
31/03/17
31/03/20
0.0170
$0.0400
15,000,000
(15,000,000)
Ray Shorrocks
27/10/17
27/10/20
0.0578
$0.1365
7,500,000
(7,500,000)
-
-
-
No amounts are unpaid on any shares issued on the exercise of options.
Vested and
exercised
30 June
2020
15,000,000
15,000,000
7,500,000
74 BELLEVUE GOLD LIMITED
Details of Rights Held by Executive KMP
Performance rights
The table below shows a reconciliation of performance rights held by each KMP from the beginning to the end of the 2020
financial year. All vested performance rights were exercisable.
Table 1.11: Detail and movement in Director and kMP rights held over Bellevue Gold shares during FY20
Balance
at start of
year
Held at
appointment
Granted
during
the year
Performance
Rights
exercised /
vested
Forfeited /
Cessation
as kMP
Balance at the end
of the year
Unvested
Vested
Directors
Kevin Tomlinson
Fiona Robertson
Shannon Coates
-
-
-
Ray Shorrocks2
3,000,000
Steve Parsons
7,000,000
Michael Naylor
2,500,000
Executives
Sam Brooks
4,000,000
Craig Jones
Luke Gleeson
Daina Del Borrello
-
-
-
600,000
-
-
-
-
-
-
-
-
-
-
(1,000,000)
3,160,000
(2,500,000)
-
-
-
-
-
-
-
-
-
2,799,998
2,840,000
50,0003
1,284,800
-
-
-
-
-
-
(3,000,000)
-
-
-
-
-
-
600,000
-
-
-
7,000,000
1,500,000
4,660,000
2,799,998
2,840,000
1,334,800
Total
16,500,000
50,000
10,684,798
(3,500,000)
(3,000,000)
20,734,798
Value to
vest1
$
251,379
-
-
-
2,095,208
448,973
855,711
759,879
737,591
338,743
5,487,484
-
-
-
-
-
-
-
-
-
-
-
1. The maximum value of the performance rights yet to vest has been determined as the amount of the grant date fair value of the rights that is yet to be expensed.
2. Resigned on 9 September 2019. Mr Shorrocks’ performance rights were cancelled subsequent to his resignation.
3. Held at date of appointment to the KMP team on 1 December 2019, granted on 6 September 2019.
Each performance right converts, at the holder’s election, to one ordinary share in the Company upon satisfaction of the performance conditions linked to the rights.
The rights do not carry any other privileges. The fair value of the performance rights granted is determined based on the number of rights awarded multiplied by the
share price of the Company on the date awarded.
DIRECTORS' REPORT 75
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76 BELLEVUE GOLD LIMITED
Trading Policy
The trading of shares by Directors, Executives and other employees is subject to, and conditional upon, compliance with
the Company’s Trading Policy. The policy is enforced through a system that includes a requirement to confirm compliance
with the policy and provide confirmation of dealings in Bellevue securities. The ability for a Director, Executive or employee
to deal with an option or a performance right is restricted by the terms of issue and the plan rules which do not allow
dealings in any unvested security. The Trading Policy specifically prohibits entering into an arrangement that would have
the effect of limiting exposure to risk relating to either unvested remuneration, or vested remuneration which remains
subject to a holding lock (including securities issued under an employee incentive plan). The Trading Policy can be viewed
on the Company’s website.
Voting and comments made at the Company’s last Annual General Meeting
At the Company’s Annual General Meeting on 5 November 2019, Bellevue Gold received more than 95% “For” votes on its
Remuneration Report for the year ended 30 June 2019. The Company received no specific feedback on its Remuneration
Report at the Annual General Meeting.
Loans to KMP
There were no loans to KMP of the Group, including their personally related parties, as at 30 June 2020 or 30 June 2019.
Other Transactions with KMP
The following transactions have been entered into on arm’s length terms, based on standard commercial terms and conditions.
Stephen Parsons
Blackstone Minerals Limited received $127,273 in repayments for the provision of the office rent, outgoings and office
stationery, and office fit-out in relation to the financial year ended 30 June 2020. Mr Parsons is a Non-Executive Director of
Blackstone Minerals Limited.
Michael Naylor
Blue Leaf Corporate Pty Ltd, a company of which Mr Naylor is a Director, provided accounting services to the Group during
the year ended 30 June 2020 totalling $69,000, which is not included in the remuneration tables (2019: $113,054).
Raymond Shorrocks (resigned 9 September 2019)
Spring Street Holdings Pty Ltd, a company of which Mr Ray Shorrocks is a Director and shareholder, rendered Director fees
totalling $20,000 during the year ended 30 June 2020 (2019: $80,100).
END OF REMUNERATION REPORT
Signed in accordance with a resolution of the Directors.
Stephen Parsons
23 September 2020
Auditor’s
Independence
Declaration
DIRECTORS' REPORT 77
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. www.grantthornton.com.au Central Park, Level 43 152-158 St Georges Terrace Perth WA 6000 Correspondence to: PO Box 7757 Cloisters Square Perth WA 6000 T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au Auditor’s Independence Declaration To the Directors of Bellevue Gold Limited In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Bellevue Gold Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been: a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b no contraventions of any applicable code of professional conduct in relation to the audit. GRANT THORNTON AUDIT PTY LTD Chartered Accountants L A Stella Partner – Audit & Assurance Perth, 23 September 2020 Bellevue Exploration Geologists taking structural measurements.
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BELLEVUE GOLD LIMITEDANNUAL REPORT 2020
80 BELLEVUE GOLD LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2020
Income
Other income
Total Other Income
Expenses
Accounting and audit
Consultants and contractors
Corporate costs
Depreciation and amortisation expense
Employee benefits
Exploration expenditure expensed and written off
Listing and compliance
Office rental and outgoings
Share-based payments
Travel and accommodation
Unrealised foreign exchange differences
Total Expenses
Loss before income tax expense and finance income
Finance income
Loss before income tax for the year
Income tax expense
Loss after income tax for the year
Total comprehensive loss for the year attributable
to the owners of the Company
Loss per share attributable to equity holders of the Company:
Basic and Diluted loss per share (cents per share)
The above should be read in conjunction with the accompanying notes.
Notes
2
10
3
4
5
6
2020
$’000
52
52
(135)
(593)
(955)
(307)
(1,217)
(264)
(323)
(67)
(1,730)
(374)
(1)
(5,966)
(5,914)
227
(5,687)
-
(5,687)
2019
$’000
3
3
(149)
(686)
(1,101)
(155)
(869)
(245)
(172)
(68)
(3,625)
(331)
(9)
(7,410)
(7,407)
261
(7,146)
-
(7,146)
(5,687)
(7,146)
(0.96)
(1.63)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2020
CONSOLIDATED FINANCIAL STATEMENTS 81
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Exploration and evaluation
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Accumulated losses
Total equity
The above should be read in conjunction with the accompanying notes.
Notes
2020
$’000
2019
$’000
7
8
9
10
11
12
13
13
14
14
24,240
709
5,299
30,248
1,465
75,028
76,493
106,741
8,380
492
8,872
2,359
2,359
11,231
95,510
135,205
4,445
(44,140)
95,510
19,769
982
186
20,937
1,004
36,903
37,907
58,844
5,547
102
5,649
2,343
2,343
7,992
50,852
83,078
6,227
(38,453)
50,852
82 BELLEVUE GOLD LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2020
Operating Activities
Payments for exploration & evaluation (expensed)
Payment to suppliers and employees
Interest paid
Interest received
Research and development tax credit received
Other income
Notes
2020
$’000
(306)
(3,665)
-
216
2
50
2019
$’000
-
(3,126)
(9)
268
-
3
Net cash flows used in operating activities
7.1
(3,703)
(2,864)
Investing Activities
Payment for exploration and evaluation (capitalised)
Payments for property, plant and equipment
Research and development tax credit received
Investment in term deposit
Other (deposit for credit cards facility)
(35,263)
(780)
663
(5,000)
(61)
(19,982)
(309)
-
-
(79)
Net cash flows used in investing activities
(40,441)
(20,370)
Financing Activities
Proceeds from issue of shares and option exercises
14.1
Capital raising costs for issue of shares
Net cash flows from financing activities
Net increase in cash and cash equivalents
Effect of movements in exchange rates on cash held
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June
7
The above should be read in conjunction with the accompanying notes.
50,591
(1,976)
48,615
4,471
-
19,769
24,240
36,519
(2,028)
34,491
11,256
-
8,513
19,769
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2020
CONSOLIDATED FINANCIAL STATEMENTS 83
Contributed
equity
$’000
Notes
Share-based
payments
reserve
$’000
Accumulated
losses
$’000
Total equity
$’000
Balance as at 30 June 2018
Loss for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year
Shares and options issued during the year
Transfer of reserve upon exercise of options
Transfer of reserve upon exercise
of performance rights
Transfer of reserve upon forfeit
of performance rights
Share-based payments expensed
Share issue expense
Balance as at 30 June 2019
Loss for the year
Other comprehensive income/(loss)
Total comprehensive loss for the year
Shares and options issued during the year
Transfer of reserve upon exercise of options
Transfer of reserve upon exercise of
performance rights
Share-based payments expensed
Share issue expense
Balance as at 30 June 2020
14.1
14.2
14.2
14.2
14.1
14.1
14.2
14.2
14.1
The above should be read in conjunction with the accompanying notes.
46,272
5,066
(31,490)
-
-
-
36,519
555
-
-
-
-
(555)
1,726
(1,726)
(7,146)
-
(7,146)
-
-
-
183
-
-
(183)
3,625
-
6,227
(38,453)
-
-
-
-
(2,575)
(937)
1,730
-
(5,687)
-
(5,687)
-
-
-
-
-
-
-
(1,994)
83,078
-
-
-
50,591
2,575
937
-
(1,976)
135,205
19,848
(7,146)
-
(7,146)
36,519
-
-
-
3,625
(1,994)
50,852
(5,687)
-
(5,687)
50,591
-
-
1,730
(1,976)
4,445
(44,140)
95,510
84 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
1. Basis of preparation
The financial statements cover the consolidated group
comprising of Bellevue Gold Limited (the Company), and its
subsidiaries, together referred to as Bellevue or the Group.
The Company is a for-profit company limited by shares and
incorporated in Australia, whose shares are publicly traded
on the Australian Securities Exchange.
These general purpose financial statements have been
prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the
Australian Accounting Standards Board (AASB), including
Australian Interpretations, the Corporations Act 2001 and also
comply with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board.
The consolidated financial statements for the year ended
30 June 2020 (including comparatives) were approved
and authorised for issue by the Board of Directors on
23 September 2020.
(a) Historical cost
(d) Rounding of amounts
All amounts in the financial statements have been rounded
to the nearest thousand dollars, except as indicated,
in accordance with the ASIC Corporations Instrument
2016/191.
(e) Principles of consolidation
The consolidated financial statements comprise the
financial statements of the Group. A list of significant
controlled entities (subsidiaries) at year end is contained
in note 19. The financial statements of subsidiaries are
prepared for the same reporting period as the parent entity,
using consistent accounting policies.
Changes in the Group’s interest in a subsidiary that do
not result in a loss of control are accounted for as equity
transactions.
2. Other income
The financial statements have been prepared under the
historical cost convention, except for certain financial
instruments, which have been measured at fair value such
as share-based payments.
Cash boost due to COVID-19
Research and development
incentive
30 June
2020
$’000
30 June
2019
$’000
50
2
52
-
3
3
3. Share-based payments expense
30 June
2020
$’000
30 June
2019
$’000
(b) Functional and presentation currency
The financial statements are presented in Australian dollars,
which is the Group’s reporting currency and the functional
currency of the Company and its subsidiaries.
(c) Critical accounting estimates
The preparation of financial statements requires
management to use estimates, judgements and
assumptions. Application of different assumptions and
estimates may have a significant impact on Bellevue’s net
assets and financial results. Estimates and assumptions are
reviewed on an ongoing basis and are based on the latest
available information at each reporting date. Actual results
may differ from the estimates.
The areas involving a higher degree of judgement and
complexity, or areas where assumptions are significant to
the financial statements are:
• Exploration and evaluation expenditure
• Share based payments
• Mine rehabilitation estimates
The share-based payment
expense included within
the Statement of Profit or
Loss can be broken down as
follows:
Performance rights expense
Share options expense
Cancellation of
performance rights
4. Finance income
The accounting estimates and judgements applied to these
areas are disclosed in note 24(d).
Interest income
1,907
33
(210)
1,730
1,212
2,413
-
3,625
30 June
2020
$’000
30 June
2019
$’000
227
227
261
261
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 85
5. Income tax
A reconciliation between income tax expense
and the loss before tax is as follows:
Loss subject to tax
Income tax on loss at standard rate of 27.5%
Tax effects of amounts which are not deductible / (taxable)
in calculating taxable income:
Non-Deductible expenses
Share-based payment expense
Deferred Tax Asset not brought to account
Deferred Tax Liability not brought to account
Deferred Tax Asset losses not brought to account
Income tax (benefit)/expense
Deductible temporary differences, unused tax losses and unused tax
credits for which no deferred tax assets have been recognised are
attributable to the following:
Deferred tax assets temporary differences
Deferred tax assets losses
Deferred tax liabilities
30 June 2020
$’000
30 June 2019
$’000
(5,687)
(1,564)
6
476
-
(10,920)
12,002
-
1,679
24,810
(19,797)
6,692
5,116
249
182
-
997
19
5,941
(4,992)
-
4,992
1,726
(5,941)
777
Deferred tax assets have not been recognised in respect of tax losses because it is not probable that future taxable profit
will be available against which the Group can use the benefits there from.
Recoverability of tax losses is subject to satisfying either the Continuity of Ownership Test or the Business Continuity Test in
accordance with the tax legislation requirements. The estimated potential deferred tax asset at 27.5% not brought to account
which is attributable to tax losses carried forward at 30 June 2020 is approximately $24.8 million (2019: $1.7 million).
6. Loss per share
30 June 2020
$’000
30 June 2019
$’000
Net loss attributable to ordinary shareholders of the Company
(5,687)
(7,146)
Weighted average number of ordinary shares outstanding during
the year used in calculation of basic and diluted loss per share
Loss per share (cents per share)
590,997
(0.96)
439,284
(1.63)
Both the basic and diluted loss per share have been calculated using the loss attributable to shareholders of the Company
as the numerator (ie no adjustments to profit were necessary in 2020 or 2019).
86 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
7. Cash and cash equivalents
Cash at bank
Term deposits (maturity period less than 3 months)
30 June 2020
$’000
30 June 2019
$’000
1,687
22,553
24,240
5,769
14,000
19,769
The Group’s exposure to interest rate risk and sensitivity analysis for financial assets and liabilities are disclosed in note 15.
7.1 Reconciliation of cash flows used in operating activities
Loss of the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Impairment of exploration and evaluation
Other
Changes in assets and liabilities
Change in trade and other receivables
Change in provisions
Change in trade and other payables
Net cash used in operating activities
8. Trade and other receivables
Current
Accrued interest
Net GST receivable
Research and development tax credit receivable
Other receivables
9. Other assets
Current
Prepayments
Security deposits
Term deposits (maturity period greater than 3 months)
(5,687)
(7,146)
307
1,730
102
13
(229)
203
(142)
155
3,625
-
255
2
99
146
(3,703)
(2,864)
30 June 2020
$’000
30 June 2019
$’000
19
489
-
201
709
7
700
214
61
982
30 June 2020
$’000
30 June 2019
$’000
149
150
5,000
5,299
36
150
-
186
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 87
10. Property, plant and equipment
Furniture &
equipment
- Corporate
$’000
IT -
Corporate
$’000
Plant &
equipment
- Site
$’000
Motor
vehicles -
Site
$’000
Furniture &
equipment
- Site
$’000
Buildings -
Site
$’000
Net carrying values
Balance at 1 July 2018
Additions
Depreciation
Disposals
Balance at 30 June 2019
Cost
Accumulated depreciation
Net carrying values
Balance at 1 July 2019
Additions
Depreciation
Disposals
Balance at 30 June 2020
Cost
Accumulated depreciation
32
4
(8)
-
28
41
(13)
28
43
(14)
-
57
84
(27)
29
0
(15)
(8)
6
24
(18)
6
46
(17)
-
35
68
(33)
109
217
(53)
-
273
332
(59)
273
232
(103)
(12)
390
552
(162)
95
263
(49)
-
309
359
(50)
309
139
(86)
-
362
499
(137)
1
42
(5)
-
38
44
(6)
38
45
(13)
-
70
89
(19)
113
262
(25)
-
350
380
(30)
350
275
(74)
-
551
652
(101)
Total
$’000
379
788
(155)
(8)
1,004
1,180
(176)
1,004
780
(307)
(12)
1,465
1,944
(479)
11. Exploration and evaluation
Carrying amount at the beginning of the year
Capitalised expenditure at cost
Write off exploration expenditure assets
Research and development tax credit
Carrying amount at the end of the year
30 June 2020
$’000
30 June 2019
$’000
36,903
38,677
(102)
(450)
15,214
21,902
-
(213)
75,028
36,903
The carrying value of the Group’s interest in exploration and evaluation expenditure is dependent upon the continuance
of the Group’s rights to tenure of the areas of interest and the results of future exploration and the recoupment of costs
through successful development and exploitation of the areas of interest, or alternatively, by their sale. Certain Kathleen
Valley Project tenements have been surrendered where it was determined that those particular tenement areas are not
prospective. The corresponding balance of $102k has been written off during the year.
88 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
12. Trade and other payables
Current
Trade payables
Other payables
Accrued expenses
13. Provisions
Current Provision
Provision for annual leave
Provision for short-term incentives
Non-Current Provision
Provision for long service leave
Mine rehabilitation
30 June 2020
$’000
30 June 2019
$’000
6,788
158
1,434
8,380
5,116
249
182
5,547
30 June 2020
$’000
30 June 2019
$’000
286
206
492
34
2,325
2,359
102
-
102
18
2,325
2,343
14. Contributed equity and reserves
14.1 Contributed equity
30 June 2020
Shares
30 June 2019
Shares
30 June 2020
$’000
30 June 2019
$’000
Fully paid ordinary shares
684,551,731
501,031,680
135,205
83,078
Movement in ordinary shares on issue
Notes
Balance at 30 June 2018
Shares issued
Exercise of options1
Performance rights2
Transaction costs
Balance at 30 June 2019
Shares issued
Exercise of options1
Performance rights2
Transaction costs
Balance at 30 June 2020
14.3
14.4
14.3
14.4
Number of
Shares
398,800,503
82,781,177
11,250,000
8,200,000
-
501,031,680
120,870,051
58,750,000
3,900,000
-
684,551,731
$'000
46,272
36,519
555
1,726
(1,994)
83,078
50,591
2,575
937
(1,976)
135,205
1. The amount recognised in contributed equity reflects the share-based payments expense previously recognised in the share-based payments
reserve plus the cash component received on exercise.
2. All performance rights were vested using the non-cash exercise feature available under the employee share plan rules. The amount recognised in
contributed equity reflects the share-based payments expense previously recognised in share-based payments reserve over the vesting period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 89
14.2 Reserves
The Share-Based Payments Reserve records the fair value of the options and performance rights issued to Directors,
employees, consultants and other third-parties.
Share Based Payments Reserve
Balance at beginning of the year:
Share-based payment transactions
Share options issued
Performance rights
Transfer out of reserve upon:
Exercise of share options
Exercise of performance rights
Cancellation of performance rights
Balance at the end of the year
14.3 Share Options
30 June 2020
$’000
30 June 2019
$’000
6,227
-
33
1,907
(2,575)
(937)
(210)
4,445
5,066
-
1,212
2,413
(555)
(1,726)
(183)
6,227
There were no share options granted during the year.
The following tables illustrates options movement during the year ended 30 June 2020:
Date of
Expiry
31/03/20
31/03/20
31/08/19
14/02/22
27/10/20
16/01/21
30/06/21
30/06/21
30/06/21
30/06/21
Grant Date
31/03/17
31/03/17
22/08/16
18/02/19
27/10/17
20/10/18
01/06/18
01/06/18
01/06/18
01/06/18
Total
Exercise
Price
$
Balance
1 July
2019
Granted
Exercised
Balance
30 June
2020
Vested and
exercisable
0.035
15,000,000
0.040
15,000,000
0.050
0.600
0.137
3,750,000
50,000
7,500,000
0.100
40,000,000
0.250
0.300
0.350
0.400
2,500,000
2,500,000
2,500,000
2,500,000
91,300,000
-
-
-
-
-
-
-
-
-
-
-
(15,000,000)
(15,000,000)
(3,750,000)
-
-
-
-
-
-
-
50,000
50,000
(7,500,000)
-
-
(10,000,000)
30,000,000
30,000,000
(2,500,000)
(2,500,000)
(2,500,000)
-
-
-
-
-
-
-
2,500,000
2,500,000
(58,750,000)
32,550,000
32,550,000
90 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
The fair value at grant date stated in the table for the remaining options above was determined using the Black-Scholes
valuation methodology for options granted, and takes into account the following inputs:
Grant date
& Vesting
date
Expiry date
Fair value
of option at
grant date
$
Option
exercise
Price
$
Risk Free
Interest
Rate
%
Number
30,000,000
20/10/2017
16/01/21
2,500,000
01/06/2018
30/06/21
50,000
18/02/2019
14/02/22
0.0654
0.1193
0.5345
0.1
0.4
0.6
2.1
2.12
1.69
Expected
Volatility
% Total Value
102.15
1,963,383
131.43
176.01
298,250
26,725
The following tables illustrates options movement during the year ended 30 June 2019:
Grant Date
Expiry
date
Exercise Price
$
Balance
1 July 2018
Granted
Exercised
Balance
30 June 2019
31/03/17
31/03/17
22/08/16
27/10/17
16/01/18
01/06/18
01/06/18
01/06/18
01/06/18
18/02/19
Total
31/03/20
31/03/20
31/08/19
27/10/20
16/01/21
30/06/21
30/06/21
30/06/21
30/06/21
14/02/22
0.035
0.040
0.050
0.137
0.100
0.250
0.300
0.350
0.400
0.600
15,000,000
15,000,000
15,000,000
7,500,000
40,000,000
2,500,000
2,500,000
2,500,000
2,500,000
-
-
-
-
-
-
-
-
-
-
50,000
-
-
15,000,000
15,000,000
(11,250,000)
3,750,000
-
-
-
-
-
-
-
7,500,000
40,000,000
2,500,000
2,500,000
2,500,000
2,500,000
50,000
102,500,000
50,000
(11,250,000)
91,300,000
14.4 Performance Rights
Set out below are performance rights granted under the Employee Equity Incentive Plan over ordinary shares which are
granted for nil cash consideration.
Management has assessed that market and non-market conditions are more than probable to be achieved by the expiry date
and therefore the total value of the rights incorporates all rights awarded. The expense recorded as share-based payments is
recognised to the service period end date on a straight-line basis as the service conditions are inherent in the award.
Each performance right converts to one ordinary share in the Group upon satisfaction of the performance conditions
linked to the rights. The rights do not carry any other privileges. The fair value of the performance rights granted is
determined based on the number of rights awarded multiplied by the share price of the Group on the date awarded.
The following tables illustrates the performance rights movement during the year ended 30 June 2020:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 91
14.4 Performance Rights (continued)
Grant Date
Expiry
Date
Share
price on
date of
grant
$
Balance
1 July
2019
No. vested
during
year
No. lapsed
during
year
Balance
30 June
2020
Unvested
30 June
2020
Granted
10/04/18
18/04/18
12/06/18
14/08/18
07/01/19
15/02/19
15/02/19
14/05/19
26/08/19
26/08/19
26/08/19
06/09/19
06/09/19
06/09/19
06/09/19
06/09/19
15/10/19
15/10/19
05/11/19
05/11/19
05/11/19
16/03/20
16/03/20
16/03/20
16/03/20
16/03/20
16/03/20
16/03/20
21/03/21
21/03/21
12/06/21
21/03/21
07/01/24
01/09/22
01/09/22
14/05/22
31/03/21
31/03/21
31/03/21
31/03/21
30/09/21
30/09/21
30/09/21
30/09/21
31/07/21
31/07/21
05/11/24
05/11/24
05/11/24
16/03/25
16/03/25
16/03/25
16/03/25
16/03/25
16/03/25
16/03/25
0.215
3,600,000
0.185
100,000
0.170
1,000,000
0.190
1,000,000
0.425
13,000,000
250,000
250,000
150,000
-
-
-
-
-
-
-
-
(3,550,000)
(50,000)
-
-
1,000,000 2
-
-
-
1,000,000
1,000,000
-
-
-
(3,000,000)
10,000,000
10,000,000
-
-
-
-
250,000
250,000
(50,000)
100,0002
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
150,000
150,000
150,000
100,000
100,000
50,000
50,000
100,000
100,000
25,000
25,000
50,000
50,000
50,000
25,000
25,000
50,000
50,000
50,000
200,000
200,000
200,000
200,000
200,000
200,000
2,037,866
2,037,866
2,037,866
2,037,866
2,037,866
2,037,866
980,496
980,496
980,496
980,496
1,010,208
1,010,208
1,000,000
1,000,000
(100,000)
-
-
-
(250,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
150,000
150,000
100,000
50,000
100,000
25,000
25,000
50,0001
50,000
50,000
200,0001
200,0001
200,0001
2,037,8661
2,037,8661
2,037,8661
980,4961
980,4961
1,010,2081
1,000,0001
0.620
0.620
0.640
0.615
0.615
0.615
0.580
0.580
0.580
0.580
0.580
0.550
0.550
0.545
0.545
0.545
0.198
0.161
0.136
0.350
0.350
0.350
0.350
1. Further details of the Incentive Plan including terms of grants and performance hurdles are provided in the remuneration report.
2.
Issued subsequent to year end.
19,350,000
11,434,798
(3,900,000)
(3,100,000)
23,784,798
22,684,798
92 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
The following tables illustrate the performance rights movement during the year ended 30 June 2019:
Grant Date
10/04/18
18/04/18
12/06 /18
14/08 /18
14/08 /18
14/08 /18
14/08 /18
07/01/19
15/02/19
15/02/19
14/05/19
Expiry
Date
21/03/21
21/03/21
21/03/21
21/03/21
21/03/21
21/03/21
21/03/21
07/01/24
01/09/22
01/09/22
14/05/22
Share
price on
date of
grant
$
Balance
1 July
2018
No. vested
during
year
No. lapsed
during
year
Balance
30 June
2019
Unvested
30 June
2019
Granted
0.215
10,650,000
0.185
200,000
1,000,000
-
-
-
(6,750,000)
(300,000)
3,600,000
3,600,000
(100,000)
-
-
-
100,000
100,000
1,000,000
1,000,000
0.17
0.19
0.19
0.19
0.19
0215
0.62
0.62
0.64
-
-
-
-
-
-
-
-
500,000
(350,000)
(150,000)
500,000
-
(500,000)
1,000,000
(1,000,000)
1,000,000
13,000,000
250,000
250,000
150,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,000,000
1,000,000
13,000,000
13,000,000
250,000
250,000
250,000
250,000
150,000
150,000
11,850,000
16,650,000
(8,200,000)
(950,000)
19,350,000
19,350,000
15. Financial instruments
Financial Risk Management
The Group has exposure to the following risks arising from
financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk.
This note presents information about the Group’s exposure
to each of the above risks, the Group’s objectives, policies
and processes for measuring and managing risk, and the
Group’s management of capital.
15.1 Risk Management Framework
The Company’s Board of Directors with the assistance of
the Audit and Risk Management Committee has overall
responsibility for the establishment and oversight of the
Group’s risk management framework.
The Group’s principal financial instruments comprise cash and
short-term deposits. The Group has various other financial
instruments such as trade debtors and trade creditors,
which arise directly from its operations. It is, and has been
throughout the period under review, the Group’s policy that
no trading in financial instruments shall be undertaken.
15.2 Credit Risk
Credit risk is the risk of financial loss to the Group if a
customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from
the Group’s receivables and term deposits.
The Group holds all of its cash and cash equivalents
with banks and financial institution counterparties with
acceptable credit ratings of A1+ or above. As part of
managing its credit risk on cash and cash equivalents,
all funds are held in Australian banks.
The carrying amount of financial assets represents the
maximum credit exposure. The maximum credit exposure to
credit risk at the end of the reporting period was as follows:
Number
of Shares
Notes
$'000
Cash and cash equivalents
Trade and other receivables
Term Deposit (maturity greater
than 3 months)
7
8
9
24,240
19,769
709
982
5,000
-
29,949
20,751
None of the Group’s trade and other receivables are past
due as at 30 June 2020.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 93
15.3 Liquidity Risk
Liquidity risk arises from the possibility that the Group
might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities.
The Board meets on a regular basis to analyse financial risk
exposure and evaluate treasury management strategies in the
context of the most recent economic conditions and forecasts.
The Group manages liquidity risk by monitoring forecast
cash flows, only investing surplus cash with major financial
institutions; and comparing the maturity profile of financial
liabilities with the realisation profile of financial assets.
The Board’s overall risk management strategy seeks to
assist the Group in managing its cash flows. Financial
liabilities are expected to be settled within 12 months.
Contractual cash flows
Carrying
amount
$’000
Six months
or less
$’000
Total
$’000
Six to 12
months
$’000
One to two
years
$’000
Two to five
years
$’000
30 June 2020
Non-derivative financial liabilities
Trade and other payables
6,946
6,946
6,946
30 June 2019
Non-derivative financial liabilities
Trade and other payables
5,365
5,365
5,365
-
-
-
-
-
-
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial
assets or liabilities at fair value through profit or loss.
Therefore, a change in market interest rates at reporting
date would not affect profit or loss.
The sensitivity analysis following table illustrates the impact
of 100 basis points in variable interest rates, with all other
variables held constant, would have resulted in an increase/
(decrease) in the Group’s loss profit before tax as follows:
100bp increase
100bp decrease
30 June 2020
$’000
30 June 2019
$'000
292
(292)
198
(198)
The Group has no loans or borrowings.
15.4 Market Risk
Market risk is the risk that changes in market prices, such
as foreign exchange rates and interest rates will affect the
Group’s income or the value of its holdings of financial
instruments. The objective of market risk management
is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
(a) Currency Risk
The Group is not exposed to significant foreign currency
risk on transactions that are denominated in a currency
other than the respective functional currencies of the
group entities being the Australian Dollar (AUD).
(b) Interest Rate Risk
The Group’s exposure to market risk for changes in interest
rates relates primarily to the Group’s cash deposits. The
interest-bearing cash at bank and the respective interest
rates as at each balance sheet date are:
30 June 2020
$’000
30 June 2019
$'000
Cash and cash equivalents
24,240
19,769
Term deposits (maturity
period greater than 3 months)
Total
5,000
29,240
-
19,769
Interest rate
0.25% & 1% 0.95% & 2.52%
94 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
16. Capital management
The Board policy is to maintain a capital base to maintain
investor, creditor and market confidence and to sustain
future development of the business. Capital consists of
ordinary shares and retained earnings (or accumulated
losses). The Board of Directors manages the capital of the
Group to ensure that the Group can fund its operations and
continue as a going concern.
There are no externally imposed capital requirements.
17. Commitments mining and
exploration tenements
In order to maintain current rights of tenure to mining
and exploration tenements, the Group will be required to
perform exploration work to meet the minimum expenditure
requirements. This expenditure will only be incurred
should the Group retain its existing level of interest in its
various exploration areas and provided access to mining
tenements is not restricted. These obligations will be
fulfilled in the normal course of operations, which may
include exploration and evaluation activities.
The estimated exploration expenditure commitment for
the ensuing years, but not recognised as a liability in the
statement of financial position is as follows:
3. In respect of minerals mined from M36/24, M36/25,
M36/299 and E36/535 a $25 per ounce royalty from all
future gold sales on these tenements, with a maximum
aggregate royalty amount of $2,500,000.
On 31 August 2020 Bellevue was made aware of a potential
discharge of water, occurring between December 2019
and June 2020 from its Prospero pit onto a neighbouring
tenement. Bellevue is investigating the incident and
assisting the Department of Water and Environmental
Regulation (DWER) with its enquiries. Bellevue ’s current
understanding is that the discharge may be connected with
the Prospero underground mine infrastructure, including
a ventilation shaft that serviced the mine. Use of the
Prospero pit has been suspended and Bellevue is taking
steps to develop an appropriate remediation plan for the
affected areas. The discharge and associated dewatering
activities may give rise to enforcement action by the
DWER, including the issuing of penalties. The extent of any
potential fine is currently unknown.
19. Subsidiaries
The following list contains the particulars of all of the
subsidiaries of the Group:
Country of
Incorporation
30 June
2020
%
30 June
2019
%
30 June 2020
$’000
30 June 2019
$'000
Name of Entity
Parent entity
Within one year
1,396
1,394
Bellevue Gold Limited
Australia
100
100
More than one year but less
than five years
5,583
6,979
4,685
6,079
18. Contingent liabilities
Bellevue through its subsidiary Golden Spur Resources
Pty Ltd, has an obligation to pay the following royalties that
remain unchanged since 31 December 2018 when they
were first disclosed as a contingent liability:
1. In respect of minerals mined from M36/24:
Subsidiary
Golden Spur
Resources Ltd
Giard Pty Ltd
Weebo Exploration
Pty Ltd
Australia
Australia
Australia
Green Empire Pty Ltd
Australia
Draig Investments
(Singapore) Pte Ltd1
BDBL LLC1
Singapore
Mongolia
a) 2% net smelter royalty plus GST in respect of any
1. Wound up during FY20
gold; and
100
100
100
100
-
-
100
100
100
100
100
100
b) 1.5% net smelter return plus GST in respect of any
nickel or other minerals; and
2. In respect of minerals mined from M36/25, M36/299
and E36/535 (including any tenements granted from or
over the area of E36/535), a 2% net smelter royalty.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 95
20. Related parties transactions
Transactions with related parties are on normal commercial terms and at conditions no more favourable than those
available to other parties unless otherwise stated.
key-management personnel compensation
Short term employee benefits
Long-term employee benefits
Post-employment benefits
Share-based payments (non-cash)
30 June 2020
$’000
30 June 2019
$'000
1,543
10
112
1,266
2,931
1,095
13
36
518
1,662
Information regarding individual Director’s and Executive’s compensation and some equity instruments are required to be
disclosed by s300A of the Corporations Act and Corporations Regulations 2M.3.03 and are provided in the Remuneration
Report section of the Directors’ Report.
21. Parent entity disclosure
The following information relates to the parent entity, Bellevue Gold Limited, as at and for the year ended 30 June 2020.
Result of the parent entity
Loss for the year
Other comprehensive expenses
Total Comprehensive loss for the year
Financial Position of parent entity at year end:
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total equity of the parent entity comprising of:
Contributed equity
Share option reserve
Accumulated losses
Total equity
30 June 2020
$’000
30 June 2019
$’000
(6,394)
-
(6,394)
95,365
1,138
96,503
960
34
994
135,205
4,445
(44,141)
95,509
(7,472)
-
(7,472)
50,048
1,634
51,682
812
18
830
83,078
6,227
(38,453)
50,852
96 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
22. Auditor’s remuneration
The following information relates to the parent entity, Bellevue Gold Limited, as at and for the year ended 30 June 2020.
Audit services
Current auditors of the company – Grant Thornton Audit Pty Ltd
Audit and review of financial statements
Other services
Tax advice and compliance services
23. Events subsequent to reporting date
Maiden Indicated Resource
The Company announced its maiden Indicated Resource
of 860,000oz at 11.6g/t gold at its Bellevue Gold Project.
The Indicated Resource forms part of Bellevue’s total
2.3Moz global Resource at 10g/t (860,000oz at 11.6g/t
Indicated and 1.4Moz at 9.2g/t Inferred). (refer ASX
Announcement 7 July 2020).
Equity Raising
In July 2020, the Company completed a fully underwritten
share placement and non-underwritten share purchase
plan. The placement raised $100 million (before costs) via
the issue of 100 million ordinary shares at an issue price
of $1 per share and an offer target of up to $20 million
non-underwritten Share Purchase Plan (SPP) eligible
shareholders in Australia and New Zealand.
In August 2020, Bellevue completed the SPP raising a total
of $35 million via the issue of 35 million ordinary shares at
an issue price of $1 per share.
Other than the above, there are currently no matters
or circumstances that have arisen since the end of the
financial period that have significantly affected or may
significantly affect the operations of the Group, the results
of those operations, or the affairs of the consolidated entity
in future financial years.
30 June 2020
$’000
30 June 2019
$'000
38
13
51
46
35
81
24. Statement of significant accounting policies
The principal accounting policies adopted in the preparation
of these consolidated financial statements are set out below.
(a) Parent entity disclosure
The financial information for the parent entity, Bellevue Gold
Limited, disclosed in Note 20 has been prepared on the
same basis as the consolidated financial statements, other
than investments in subsidiaries and associates, which
have been recorded at cost less any impairments.
(b) Comparative figures
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
Changes in presentation of comparative expense information
Comparative expense information in the consolidated
statement of profit or loss and other comprehensive
income has been restated to provide a more detailed and
relevant breakdown of expenditures.
(c) Operating segments
The Group has identified its operating segments based
on the internal reports that are reviewed and used by the
Directors (chief operating decision makers) in assessing
performance and determining the allocation of resources.
The Group operates in one segment being Exploration and
Evaluation of Minerals in Australia.
(d) Critical accounting estimates and judgements
The preparation of the consolidated financial statements
requires management to make judgements and estimates
and form assumptions that affect how certain assets,
liabilities, revenue, expenses and equity are reported.
At each reporting period, management evaluates its
judgements and estimates based on historical experience
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 97
and on other factors it believes to be reasonable under the
circumstances, the results of which form the basis of the
carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from
these estimates under different assumptions and conditions.
Bellevue has identified the following critical accounting
policies where significant judgements and estimates
are made by management in the preparation of these
financial statements.
Exploration and evaluation expenditure
Bellevue’s accounting policy for exploration and evaluation
expenditure results in expenditure being capitalised for an
area of interest where it is considered likely to be recoverable
by future exploitation or sale or where the activities have not
reached a stage which permits a reasonable assessment of
the existence of reserves. This policy requires management
to make certain estimates as to future events and
circumstances, in particular whether an economically viable
extraction operation can be established. Any such estimates
and assumptions may change as new information becomes
available. If, after having capitalised the expenditure under
the policy, a judgement is made that recovery of the
expenditure is unlikely, the relevant capitalised amount will be
written off to the income statement.
Share options and performance rights
The Group measures the options issued by reference
to the fair value of the equity instruments at the date at
which they are granted using either the Binomial model or
Black-Scholes model, taking into account the terms and
conditions upon which the instruments were granted.
For performance rights, the Group makes a judgment
around whether performance conditions, linked to
exploration and evaluation activities and the advancement
of the Bellevue Gold Project, are more than probable to be
met at which point the value of the rights are recognised
either in full or over any service period. This judgment
is made based on management’s knowledge of the
performance condition and how the Group is tracking
based on activities as at the report date and with reference
to subsequent events. The fair value of performance rights
for non-market and market conditions is measured at the
date at which they are granted and are determined using
one of the Monte Carlo model, Binomial model and Black-
Scholes model, considering the terms and conditions upon
which the instruments were granted.
Mine rehabilitation provision
Significant judgement is required in determining the
provision for mine rehabilitation and closure as there are
many factors that will affect the ultimate liability payable
to rehabilitate pre-existing mine site, including future
disturbances caused by further development, changes
in technology, changes in regulations, price increases,
changes in timing of cash flows which are based on life-
of-mine plans and changes in discount rates. When the
factors become known in the future, such differences will
impact the mine rehabilitation provision in the period in
which the changes become known.
(e) Share-based payments
Share-based compensation benefits are provided to
employees via the Bellevue Employee Equity Incentive
Plan (Plan). The objective of the Plan is to assist in the
recruitment, reward, retention and motivation of eligible
persons of the Group.
The fair value of performance rights granted under the
Plan are recognised as an employee benefit expense
with a corresponding increase in equity. The fair value is
measured at grant date and recognised over the period
during which the employees become unconditionally
entitled to the performance rights.
Non-market based conditions
The fair value of performance rights at grant date is
determined using various option valuation models
appropriate to the instrument that considers the vesting
period and the share price at grant date.
The fair value of the performance rights at grant date
excludes the impact of any non-market vesting conditions
(for example, profitability and sales growth targets). These
non-market vesting conditions are included in assumptions
about the number of performance rights that are expected
to vest. At each statement of financial position date, the
entity revises its estimate of the number of performance
rights that are expected to vest. The employee benefit
expense recognised each period considers the most
recent estimate. The impact of the revision to original
estimates, if any, is recognised in the statement of
profit or loss and other comprehensive income with a
corresponding adjustment to equity.
Market based conditions
The estimated fair value of the long term share rights was
determined using a combination of analytical approaches,
binomial tree and Monte Carlo simulation. The fair
98 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
value estimation takes into account the exercise price,
the effective life of the right, the impact of dilution, the
share price at grant date, expected price volatility of the
underlying share, the effect of additional market conditions,
the expected dividend yield, estimated share conversion
factor and the risk-free interest rate for the term of the right.
Upon exercise of performance rights, the proceeds
received net of any directly attributable transaction costs
are allocated to share capital.
(f) Plant and equipment
Plant and equipment
Each class of plant and equipment is carried at cost or fair
value less, where applicable, any accumulated depreciation
and impairment losses.
Plant and equipment are measured on the cost basis less
depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed
annually by Directors to ensure it is not in excess of the
recoverable amount from these assets.
The recoverable amount is assessed on the basis of the
expected net cash flows that will be received from the
assets’ employment and subsequent disposal.
Depreciation
All fixed assets are depreciated on a straight line basis over
their useful lives to the economic entity commencing from
the time the asset is held ready for use. The depreciation
rates used for each class of depreciable assets are:
Class of Fixed asset
Depreciation rate
Fixtures and fittings
Computer equipment
Exploration equipment
Land and buildings
5 years
2–3 years
3–5 years
8–15 years
The asset’s residual values and useful lives are reviewed,
and adjusted if appropriate, at each reporting date.
An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount. Gains
and losses on disposals are determined by comparing
proceeds with the carrying amount. These gains and losses
are included in the Statement of Profit or Loss and Other
Comprehensive Income.
(g) Income tax
The income tax expense/(benefit) for the year comprises
current income tax expense/(income) and deferred income
tax expense/(income). Current income tax expense charged
to the profit or loss is the tax payable on taxable income
calculated using applicable income tax rates enacted
at reporting date. Deferred income tax expense reflects
movements in deferred tax asset and deferred tax liability
balances during the year as well as unused tax losses.
Current and deferred income tax (expense)/benefit is
charged or credited directly to equity instead of the profit
or loss when the tax relates to items that are credited or
charged directly to equity.
Deferred tax assets and liabilities are ascertained based
on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in
the financial statements. Deferred tax assets also result
where amounts have been fully expensed but future tax
deductions are available.
No deferred income tax will be recognised from the initial
recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected
to apply to the period when the asset is realised or liability
is settled. Deferred tax is credited in the Statement of
Profit or Loss and Other Comprehensive Income except
where it relates to items that may be credited directly to
equity, in which case the deferred tax is adjusted directly
against equity. Deferred income tax assets are recognised
to the extent that it is probable that future tax profits will be
available against which deductible temporary differences
can be utilised. The amount of benefits brought to account
or which may be realised in the future is based on the
assumption that no adverse change will occur in income
taxation legislation and the anticipation that the Company
will derive sufficient future assessable income to enable
the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
AASB Interpretations 23 Uncertainty over Income Tax Treatment
The Interpretation addresses the accounting for income
taxes when tax treatments involve uncertainty that affects
the application of AASB 112 Income Taxes. It does not
apply to taxes or levies outside the scope of AASB 112, nor
does it specifically include requirements relating to interest
and penalties associated with uncertain tax treatments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 99
The Interpretation specifically addresses the following:
• Whether an entity considers uncertain tax
treatments separately
• The assumptions an entity makes about the examination
of tax treatments by taxation authorities
life of the area according to the rate of depletion of the
economically recoverable reserves.
A regular review is undertaken of each area of interest
to determine the appropriateness of continuing to carry
forward costs in relation to that area of interest.
• How an entity determines taxable profit (tax loss), tax
bases, unused tax losses, unused tax credits and tax rates
• How an entity considers changes in facts and circumstances.
Payments for exploration and evaluation expenditure
are recorded net of any government grants and
partner contributions.
The Group determines whether to consider each uncertain
tax treatment separately or together with one or more other
uncertain tax treatments and uses the approach that better
predicts the resolution of the uncertainty.
The Group applies significant judgment in identifying
uncertainties over income tax treatments. Since the Group has
no overseas subsidiary, it assessed whether the Interpretation
had an impact on its consolidated financial statements.
Upon adoption of the Interpretation, the Group has
determined that there is no change required under AASB
Interpretation 23 Uncertainty over Income Tax Treatments.
(h) Government grants
Government grants are recognised where they can be
reliably measured, it is certain that the grant will be received
and all attached conditions will be satisfied. When the grant
relates to an expense item, it is recognised as income on a
systematic basis over the periods that the related costs for
which it is intended to compensate, are expensed.
When the grant relates to an asset, it is offset against the
capitalised amount and recognised as income in equal
amounts over the expected useful life of the related asset
(when the asset is depreciated).
(i) Exploration and evaluation expenditure
Exploration and evaluation expenditure incurred is
accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that
they are expected to be recouped through the successful
development of the area or where activities in the area have
not yet reached a stage that permits reasonable assessment
of the existence of economically recoverable reserves.
Accumulated costs in relation to an abandoned area are
written off in full against profit in the year in which the
decision to abandon the area is made.
When production commences, the accumulated costs
for the relevant area of interest are amortised over the
Mine rehabilitation
Costs of land rehabilitation and site restoration are
provided over the life of the facility from when exploration
commences and are included in the costs of that stage.
Site restoration costs include the dismantling and removal
of mining plant, equipment and building structures, waste
removal and rehabilitation of the site in accordance with
clauses of the mining permits. Such costs are determined
using estimates of future costs, current legal requirements
and technology on an undiscounted basis.
Any changes in the estimates for the costs are accounted
on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the
nature and extent of the restoration due to community
expectations and future legislation. Accordingly, the costs
are determined on the basis that the restoration will be
completed within one year of abandoning the site.
The provision for mine rehabilitation remains unchanged
at 30 June 2020, and the estimated liability is based on
the WA Department of Mines and Petroleum – Mining
Rehabilitation Fund (MRF) – Guidance (Mining Rehabilitation
Fund Regulations 2013) and together with the use of
an Internal Expert and Mine Closure Plan confirms the
measure and evaluation of the costs to be incurred as
reasonable. The Company anticipates preparing an
updated Mine Closure Plan in Q4 2020 with revised costs
anticipated to be in place by July 2021 in line with MRF
reporting requirements.
Given that the mine site has not yet been placed back in
production there are no amortisation charges to record for
the 2020 financial year.
( j) Financial instruments
Financial assets and financial liabilities are recognised when
the Group becomes a party to the contractual provisions
of the financial instrument and are measured initially
at fair value adjusted by transactions costs, except for
those carried at fair value through profit or loss, which are
100 BELLEVUE GOLD LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
measured initially at fair value. Subsequent measurement of
financial assets and financial liabilities are described below.
Financial assets are derecognised when the contractual
rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and
rewards are transferred. A financial liability is derecognised
when it is extinguished, discharged, cancelled or expires.
Classification and measurement of financial assets
The Group initially measures a financial asset at fair value
adjusted for transaction costs (where applicable). These are
then subsequently measured at fair value through profit or
loss (“FVTPL”), amortised cost, or fair value through other
comprehensive income (“FVOCI”).
The Group’s financial assets of cash and cash equivalents
and trade and other receivables are classified as ‘financial
assets at amortised cost’. This is unchanged from prior year.
In order for a financial asset to be classified and measured
at amortized cost, it needs to give rise to cash flows that
are ‘solely payments of principal and interest (“SPPI”)’
on the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed at an
instrument level. Balances within receivables do not contain
impaired assets, are not past due and are expected to be
received when due.
Due to the short-term nature of these receivables, their
carrying value is assumed to approximate fair value.
are initially measured at fair value, and, where applicable,
adjusted for transaction costs unless the Group designated a
financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised
cost using the effective interest method except for
derivatives and financial liabilities designated at fair value
through profit or loss, which are carried subsequently at fair
value with gains or losses recognised in profit or loss (other
than derivative financial instruments that are designated and
effective as hedging instruments).
All interest-related charges and, if applicable, changes in an
instrument’s fair value that are reported in profit or loss are
included within finance costs or finance income.
In relation to the classification and measurement of financial
assets and liabilities, there was no impact on the Income
Statement, Statement of Comprehensive Income, Statement
of Financial Position or Statement of Changes in Equity.
(k) Provisions
Provisions are recognised when the Group has a legal or
constructive obligation, as a result of past events, for which
it is probable that an outflow of economic benefits will
result, and that outflow can be reliably measured.
Mine rehabilitation
In accordance with the applicable legal requirements, a
provision for site rehabilitation in respect of returning the
land to its original state is recognised when land is disturbed.
Impairment
Expected credit losses (“ECLs”) are based on the difference
between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects
to receive. For trade and other receivables, the Group has
applied the standard’s simplified approach and has calculated
ECLs based on lifetime expected credit losses.
At each reporting date, the site rehabilitation provision will be
remeasured to reflect any changes in regulations, discount
rates and timing or amounts of the costs to be incurred.
Such changes in the estimated liability are accounted for
prospectively from the date of the change and added to, or
deducted from, the related asset where it is possible that
future economic benefits will flow to the Group.
The ECL requirements of AASB 9 has not resulted in the
recognition of an impairment allowance for the Group’s
receivables. Accordingly, there was no impact on the
Statement of Comprehensive Income, Statement of Financial
Position or Statement of Changes in Equity, nor has there
been any impact on basic and diluted loss per share.
Classification and measurement of financial liabilities
The Group’s financial liability is trade and other payables
recognised initially at fair value. A financial liability is
derecognised when the obligation under the liability is
discharged or cancelled or expires.
Due to the short-term nature of these payables, their carrying
value is assumed to approximate fair value. Financial liabilities
Employee leave benefits
Provision is made for the Group’s liability for employee
benefits arising from services rendered by employees up
to reporting date. Short term employee benefits have been
measured at the amounts expected to be paid when the
liability is settled, plus related on-costs. Long term employee
benefits have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
(l) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits
held at call with banks, other short term highly liquid
investments with original maturities of three months or less.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2020
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 101
(m) Revenue
(q) Earnings per share
Revenue is recognised when it is probable that the economic
benefit will flow to the consolidated entity and the revenue
can be reliably measured. Revenue is measured at the fair
value of the consideration received or receivable.
Interest revenue is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial
asset to that asset’s net carrying amount.
Other Income is recognised when it is received or when the
right to receive payment is established.
(n) Goods and services tax
Revenues, expenses and assets are recognised net of the
amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the
Australian Tax Office (ATO). In these circumstances the GST
is recognised as part of the cost of acquisition of the asset
or as part of the expense.
Receivables and payables are stated in the Statement of
Financial Position inclusive of GST. The net amount of GST
recoverable from, or payable to, the ATO is included as a
current asset or liability in the Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows
on a gross basis. The GST components of cash flows
arising from investing and financing activities which are
recoverable from, or payable to, the ATO are classified as
operating cash flows.
(o) Trade and other receivables
The Group applies the expected credit loss model
prescribed by AASB 9 Financial Instruments to trade and
other receivables. Trade receivables and other receivables,
which generally have 30-90 day terms, are recognised
initially at fair value and subsequently at amortised cost,
less provisions for expected credit losses.
There were no expected credit losses on trade and other
receivables, therefore no provision has been recognised at
30 June 2020 (2019: Nil).
(p) Trade and other payables
Trade and other payables represent the liability outstanding
at the end of the reporting period for goods and services
received by the Company during the period which remains
unpaid. The balance is recognised as a current liability with
the amount being normally paid within 30 days to 45 days
or recognition of the liability.
Basic earnings per share is calculated by dividing the profit
attributable to equity holders 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 year, adjusted for bonus elements in
ordinary shares issued during the year.
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 and other financing
costs associated with dilutive potential ordinary shares
and the weighted average number of additional ordinary
shares that would have been outstanding assuming the
conversion of all dilutive potential ordinary shares.
(r) New Accounting Standards and Interpretation
The following new standards and amendments to
standards are mandatory for the first time for the financial
year beginning 1 July 2019:
AASB 16 Leases
AASB 16 ‘Leases’ replaces AASB117 Leases along with
three interpretations (IFRIC 4 Determining whether an
Arrangement contains a Lease, SIC 15 ‘Operating Leases-
Incentives’ and SIC 27 Evaluating the Substance of
Transactions Invoicing the Legal Form of a Lease).
AASB 16 removes the distinction between operating and
finance leases for lessees. Instead, all leases other than
short term and low value asset leases are recognised on
the balance sheet as a right-of-use asset, representing the
lessee’s entitlement to the benefits of the identified asset
over the lease term, and a lease liability representing the
lessee’s obligation to make the lease payments. For leases
recognised as operating leases under AASB 117, the lease
expense will be replaced by the amortisation of the right-
of-use asset and interest expense on the lease liability.
The Group has assessed the impact of this standard in the
current period. The Group currently maintains a short term
lease, of which includes a month-to-month arrangement
with no formal agreement in place (relating to the head
office). The Group has considered there to be no impact
under AASB 16 as this does not fall into the definition of a
lease under AASB 16.
(s) Impact of standards issued but not yet applied
Certain new accounting standards and interpretations have
been published that are not mandatory for 30 June 2020
reporting periods and have not been early adopted by the
Group. The Group’s assessment of the impact of these
new standards and these standards are not expected to
have a material impact on the entity in the current or future
reporting periods and on foreseeable future transactions.
102 BELLEVUE GOLD LIMITED
DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Bellevue Gold Limited, declare that:
1. In the opinion of the Directors:
a) The financial statements, notes and additional disclosures included in the Directors’ Report designated as audited,
of the Company and the Group are in accordance with the Corporations Act 2001, including:
i.
Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020 and of its
performance for the financial year ended on that date; and
ii. Complying with Accounting Standards and the Corporations Regulations 2001; and
b) There are reasonable grounds to believe that the Company and Group will be able to pay its debts as and when
they become due and payable.
2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from
the Managing Director and Chief Financial Officer for the financial year ended 30 June 2020.
3. The Directors draw attention to the notes to the consolidated financial statements, which include a statement
of compliance with International Financial Reporting Standards.
On behalf of the Board
Stephen Parsons
Managing Director
23 September 2020
INDEPENDENT AUDITOR’S REPORT
INDEPENDANT AUDITOR'S REPORT 103
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389 ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited. Liability limited by a scheme approved under Professional Standards Legislation. www.grantthornton.com.au Central Park, Level 43 152-158 St Georges Terrace Perth WA 6000 Correspondence to: PO Box 7757 Cloisters Square Perth WA 6000 T +61 8 9480 2000 F +61 8 9322 7787 E info.wa@au.gt.com W www.grantthornton.com.au Independent Auditor’s Report To the Members of Bellevue Gold Limited Report on the audit of the financial report Opinion We have audited the financial report of Bellevue Gold Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, 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: a giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its performance for the year ended on that date; and b complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We 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. 104 BELLEVUE GOLD LIMITED
INDEPENDENT AUDITOR’S REPORT
Key audit matter How our audit addressed the key audit matter Exploration and evaluation assets – Notes 11 & 24(i) At 30 June 2020, the carrying value of exploration and evaluation assets was $75.028M. In accordance with AASB 6 Exploration for and Evaluation of Mineral Resources, the Group is required to assess at each reporting date if there are any triggers for impairment which may suggest the carrying value is in excess of the recoverable value. The process undertaken by management to assess whether there are any impairment triggers in each area of interest involves an element of management judgement. This area is a key audit matter due to the significant judgement involved in determining the existence of impairment triggers. Our procedures included, amongst others: obtaining the management reconciliation of capitalised exploration and evaluation expenditure and agreeing to the general ledger; reviewing management’s area of interest considerations against AASB 6; conducting a detailed review of management’s assessment of trigger events prepared in accordance with AASB 6 including; o tracing projects to statutory registers, exploration licenses and third party confirmations to determine whether a right of tenure existed; o enquiring of management regarding their intentions to carry out exploration and evaluation activity in the relevant exploration area, including review of management’s budgeted expenditure; o understanding whether any data exists to suggest that the carrying value of these exploration and evaluation assets are unlikely to be recovered through development or sale; assessing the accuracy of any impairment recorded for the year as it pertained to exploration interests; evaluating the competence, capabilities and objectivity of management’s experts in the evaluation of potential impairment triggers; and assessing the appropriateness of the related financial statement disclosures. Share-based payments – Notes 3, 14.4 & 24(e) During the year ended 30 June 2020, the Group issued 11,434,798 performance rights to employees and executives as part of its incentive program, resulting in the Group recording a share-based payment expense of $1.907M. The performance rights vest subject to the achievement of certain vesting conditions. In determining the fair value of the awards and related expense, the Group uses assumptions in respect of future market and economic conditions. The Group engaged a specialist to provide a valuation of these share-based payments using a Monte Carlo simulation model. This area is a key audit matter due to the complex and judgemental estimates used in determining the valuation of the share-based payments and vesting expense. Our procedures included, amongst others: obtaining and reviewing the vesting conditions of the performance rights and tracing the conditions to agreements signed by all parties and to related ASX announcements; evaluating the Group’s expert’s scope of work, competency and objectivity with respect to the valuation of the performance share scheme granted during the year; assessing the valuation report provided by the Group’s external expert against compliance with the Accounting Standard AASB 2 Share Based Payments and engaging an auditor’s valuation expert to access the valuation against acceptable valuation methodologies; testing remuneration expense recorded for the period by checking the inputs used by management such as, grant date, vested and forfeitures to the underlying support. This included re-calculating the equity remuneration expense and compared this to the Group’s reported balance; and assessing the appropriateness of the related disclosures within the financial statements. INDEPENDENT AUDITOR’S REPORT
INDEPENDANT AUDITOR'S REPORT 105
Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2020, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors’ for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf. This description forms part of our auditor’s report. 106 BELLEVUE GOLD LIMITED
INDEPENDENT AUDITOR’S REPORT
Report on the remuneration report Opinion on the remuneration report We have audited the Remuneration Report included in pages 54 to 76 of the Directors’ report for the year ended 30 June 2020. In our opinion, the Remuneration Report of Bellevue Gold Limited, for the year ended 30 June 2020 complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. GRANT THORNTON AUDIT PTY LTD Chartered Accountants L A Stella Partner – Audit & Assurance Perth, 23 September 2020 ASX ADDITIONAL INFORMATION
As at 4 September 2020
ASX ADDITIONAL INFORMATION 107
Top 20 Holders of Ordinary Shares
Rank
Holder name
No. Shares
% of Issued capital
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
321,352,705
38.26
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
20
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
SYMORGH INVESTMENTS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
URBAN LIFE SCIENCES PTY LTD
MACQUARIE BANK LIMITED
65,892,943
58,947,406
30,030,000
19,873,578
19,000,000
18,235,295
SUNSET CAPITAL MANAGEMENT PTY LTD
17,430,000
KITARA INVESTMENTS PTY LTD
NATIONAL NOMINEES LIMITED
KITARA INVESTMENTS PTY LTD
SISU INTERNATIONAL PTY LTD
14,306,110
12,204,075
7,313,729
6,000,000
BNP PARIBAS NOMINEES PTY LTD
5,393,311
SISU INTERNATIONAL PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR SAMUEL RICHARD BROOKS
DALRAN PTY LTD
BNP PARIBAS NOMS PTY LTD
KONKERA PTY LTD
MR MARCUS HARDEN
SEAMIST ENTERPRISES PTY LTD
Totals: Top 21 holders of Ordinary Fully Paid Shares
Total Remaining Holders Balance
5,368,672
3,766,470
2,557,500
2,255,000
2,211,162
2,022,119
2,000,000
2,000,000
618,160,075
221,737,398
7.85
7.02
3.58
2.37
2.26
2.17
2.08
1.70
1.45
0.87
0.71
0.64
0.64
0.45
0.30
0.27
0.26
0.24
0.24
0.24
73.60
26.40
Substantial Holder
The names of substantial shareholders as disclosed in substantial shareholding notices given to the Company are:
Holder name
1832 Asset Management LP
BlackRock Group
Van Eck Associates Corporation
No. Shares
% of Issued capital
98,249,400
62,200,618
37,946,282
12.52
9.08
6.43
108 BELLEVUE GOLD LIMITED
ASX ADDITIONAL INFORMATION
As at 4 September 2020
Spread of Holdings
Fully Paid Shares
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Total holders
Units
% of Issued capital
1,781
3,031
1,402
2,818
395
9,427
1,184,908
8,606,772
11,276,672
91,986,091
726,843,030
839,897,473
0.1
1.02
1.34
10.95
86.58
100.00
All issued ordinary shares carry one vote per share and carry the right to dividends.
Options & Performance Rights
Number of holders by size of holding, in each class are:
Options
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Performance Rights
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 Over
Total
Unlisted Options
Unlisted Options
Exercisable $0.10
Exercisable $0.40
Exercisable $0.60
Total Unlisted Options
Options do not carry a right to vote.
Total holders
Units
% of Issued capital
0
0
0
1
3
4
0
0
0
50,000
13,500,000
13,550,000
0.00
0.00
0.00
0.37
99.63
100.00
Total holders
Units
% of Issued capital
0
0
0
5
12
17
0
0
0
400,000
25,074,798
25,474,798
Expiry Date
16/01/2021
30/06/2021
14/02/2022
0.00
0.00
0.00
1.57
98.43
100.00
Number
11,000,000
2,500,000
50,000
13,550,000
ASX ADDITIONAL INFORMATION
As at 4 September 2020
ASX ADDITIONAL INFORMATION 109
Balance 30 June 2020
Expiry Date
Balance 30 June 2020
Performance Rights
Expiry Date
12/06/2021
07/01/2024
01/09/2022
31/03/2021
31/03/2021
31/03/2021
31/03/2021
31/07/2021
31/07/2021
05/11/2024
1,000,000
05/11/2024
10,000,000
05/11/2024
250,000
16/03/2025
150,000
16/03/2025
150,000
16/03/2025
100,000
16/03/2025
50,000
16/03/2025
50,000
16/03/2025
50,000
16/03/2025
200,000
28/07/2025
Total Performance Rights
Performance rights do not carry a right to vote.
Unmarketable parcels
There were 666 shareholders with less than a marketable
parcel of shares, based on the closing price $0.9950.
Restricted and Escrowed Securities
The Company does not have any restricted securities or
securities subject to voluntary escrow on issue.
Voting Rights
In accordance with the Company’s constitution, on a show
of hands every member present in person or by proxy or
attorney or duly appointed representative has one vote. On
a poll every member present or by proxy or attorney or duly
authorised representative has one vote for every fully paid
share held. Option holders and performance right holders are
not entitled to vote.
200,000
200,000
2,037,866
2,037,866
2,037,866
980,496
980,496
1,010,208
1,000,000
2,990,000
25,474,798
Company Secretary
Michael Naylor
Corporate Governance Statement
In accordance with Listing Rule 4.10.3, the Company’s
Corporate Governance Statement can be found on the
Company’s website. Refer to www.bellevuegold.com.au/
company/corporate-governance/.
On-Market Buy Back
The Company has not initiated an on-market buy back.
110 BELLEVUE GOLD LIMITED
ASX ADDITIONAL INFORMATION
As at 4 September 2020
Mineral Tenements
Range
Total holders
Units
% of Issued capital
Bellevue Gold Project
Western Australia
Golden Spur Resources Pty Ltd
Western Australia
Golden Spur Resources Pty Ltd
Western Australia
Golden Spur Resources Pty Ltd
Western Australia
Golden Spur Resources Pty Ltd
Western Australia
Golden Spur Resources Pty Ltd
Western Australia
Golden Spur Resources Pty Ltd
M36/24
M36/25
M36/299
E36/535
P36/1867
L36/242
M36/660
M36/342
M36/176
M36/328
M36/603
M36/266
M36/162
E36/919
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
P36/1873
Western Australia
E36/920
E36/937
E36/921
E36/924
E36/925
E36/926
E36/927
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Western Australia
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
ASX ADDITIONAL INFORMATION
As at 4 September 2020
ASX ADDITIONAL INFORMATION 111
Range
Total holders
Units
% of Issued capital
Bellevue Gold Project
E36/857
E36/896
E36/923
E37/1239
E37/1279
E37/1283
E37/1293
E37/1318
P36/1874
P36/1875
E36/922
E37/1345
E36/906
E36/907
E36/908
E36/909
E36/939
E53/2036
E53/2042
E53/2044
E53/2045
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Giard Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Weebo Exploration Pty Ltd
Western Australia
Western Australia
Western Australia
Western Australia
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Western Australia
Green Empire Pty Ltd
Western Australia
Green Empire Pty Ltd
Western Australia
Green Empire Pty Ltd
Western Australia
Green Empire Pty Ltd
Western Australia
Green Empire Pty Ltd
Western Australia
Western Australia
Western Australia
Western Australia
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
Giard Pty Ltd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
112 BELLEVUE GOLD LIMITED
CxIII
Annual Report 2020
Suite 3, Level 3, 24 Outram St
West Perth WA 6005
+61 (8) 6424 8077
admin@bellevuegold.com.au
BELLEVUEGOLD.COM.AU